Iowa allows net metering for renewable energy systems, but no uniform interconnection standards are currently in place for either small renewables or larger distributed generation. To remedy this, the Iowa Department of Natural Resources (DNR) has established a process to establish such standards. As a first step the DNR will commission a comprehensive report assessing interconnection barriers and potential solutions specific to Iowa.

Existing language in Iowa’s enabling net metering legislation does limit the discretion of utilities to impose onerous interconnection requirements. The law states that where systems meet the relevant requirements of the National Electrical Code (NEC), the Institute of Electrical and Electronics Engineers (IEEE), and Underwriters Laboratories (UL), utilities cannot require system owners to comply with additional safety or performance standards, perform or pay for additional tests, or purchase additional liability insurance.

Contact:
Jim Bodensteiner
Iowa Department of Natural Resources
Energy Bureau
Phone: (515) 281-8416
http://www.state.ia.us/dnr/energy/

LOCAL OPTION SPECIAL ASSESSMENT OF WIND ENERGY DEVICES
Iowa Code 427B.26 allows any city or county to pass an ordinance assessing wind energy conversion equipment at a special valuation for property tax purposes, beginning at zero percent of the net acquisition cost in the first assessment year and increasing annually by five percentage points to a maximum of thirty percent of the net acquisition cost in the seventh and succeeding years. If the City or County repeals the ordinance, the wind energy property shall be valued at the special rate until the end of the nineteenth assessment year following the first assessment year. The taxpayer must file for the special valuation by February 1 of the assessment year in which the wind system is first assessed for property tax purposes. If the ordinance has not been adopted or the taxpayer fails to file for the special valuation, the system shall be assessed under Iowa Code 428.24 to 428.29 and 441.21(8), which provide that the assessable and taxable value of property shall not increase with the new construction of wind or solar energy systems for five full years.

DNR Contact:
Jennifer Moehlmann
Phone: (515) 281-8518
Jennifer.Moehlmann@dnr.state.ia.us

STATE PROPERTY TAX EXEMPTION
In Iowa, the market value added to a property by a solar or wind energy system is exempt from the state's property tax for five full assessment years. According to Iowa law (Iowa Code Section 441.21), eligible systems include any system of equipment capable of collecting and converting incident solar radiation or wind energy into thermal, mechanical, or electrical energy and transforming these forms of energy by a separate apparatus to storage or to a point of use which is constructed or installed after January 1, 1978.

WIND ENERGY EQUIPMENT SALES TAX EXEMPTION
Iowa Code § 422.45 exempts from the state sales tax the total cost of wind energy equipment and all materials used to manufacture, install or construct wind energy systems. The exemption does not apply to equipment used to construct a plant to manufacture wind energy systems.

For more information regarding tax exemptions, contact:
Energy Bureau
Iowa Department of Natural Resources
Phone: (515) 281-4736
http://www.state.ia.us/dnr/energy/index.htm

ALTERNATE ENERGY REVOLVING LOAN PROGRAM
Enacted in 1996 (Iowa Code 476.46), the Alternate Energy Revolving Loan Program (AERLP) is administered by the Iowa Energy Center and funded by the state’s investor-owned utilities. The AERLP provides loan funds to any individual or organization that wants to build renewable energy production facilities in Iowa. Renewable energy includes technologies such as solar, biomass, wind, and small hydro. Successful applicants receive a single low-interest loan that consists of a combination of AERLP funds and lender-provided funds. The AERLP provides 50% of the total loan, up to a maximum of $250,000 at 0% interest. The remainder of the loan is made by the lender at market rate. The maximum loan term allowed for the AERLP funds is 20 years. As the loans are paid back to the Iowa Energy Center, those funds revolve back into the program and are made available to new applicants.

Contact:
Keith Kutz
Iowa State University
Iowa Energy Center
Phone: (515) 294-8819
http://www.energy.iastate.edu/

ENERGY BANK PROGRAM
Provided for in Iowa Code 473.19, Iowa’s Energy Bank program provides technical and financial assistance to public and non-profit facilities, including public and private K-12 schools, community colleges, area education agencies, hospitals, local governments and private colleges, for installing cost-effective energy efficiency and renewable energy improvements.

DNR Contact:
Chad Stobbe
Phone: (515) 242-5852
Chad.Stobbe@dnr.state.ia.us

STATE OF IOWA FACILITIES IMPROVEMENT CORPORATION (SIFIC)
Provided for in Iowa Code Chapter 473, the State of Iowa Facilities Improvement Corporation (SIFIC) is a nonprofit corporation that helps state agencies implement cost-effective energy efficiency and renewable energy improvements. The savings from improvements are used to make the payments.

DNR Contact:
Dan Lane
Phone: (515) 281-6696
Dan.Lane@dnr.state.ia.us

Alternative Energy Revolving Loan Program
Iowa’s two investor-owned utilities (Mid-American and Interstate Power and Light) fund the program, which is administered by the Iowa Energy Center. See above for details.

The US Department of Energy has produced wind resource maps for each state. An online map for Iowa can be found at this site. You may also find the definitions of Wind Power Classes for the maps helpful. There is additional information in the Wind Energy Atlas of the United States, where you can review maps for other locations in the US or get more information about how the maps were created.

The US Department of Energy’s Energy Efficiency and Renewable Energy Network has published wind resource data for Iowa.

You may also find useful information at the web site for the National Renewable Energy Laboratory (NREL). This site contains extensive information about wind resources in the United States.

An electronic copy of the U.S. Department of Energy's 23-page Consumer’s Guide to Small Wind Electric Systems is available at the Wind Powering America web site. A state-specific Consumer’s Guide is available for Iowa.

The Database of State Incentives for Renewable Energy (DSIRE) is a comprehensive source of information on state, local, utility, and selected federal incentives that promote renewable energy. Another item of interest is the Interstate Renewable Energy Council’s strong web site on wind energy projects and wind energy events/news occurring through out the country.

INVESTOR-OWNED UTILITIES

MidAmerican Energy
666 Grand Avenue
P.O. Box 657
Des Moines, IA 50303-0657
Residential Customers: 24 Hours a Day, 7 Days
New Service, Changes, Billing Inquiry
& General Information (800) 799-4443

Interstate Power and Light (Alliant Energy)
Mailing address:
Alliant Energy
4902 N. Biltmore Lane
P.O. Box 77007
Madison, WI 53707-1007
Phone: 1-800-ALLIANT (1-800-255-4268)

Government Contacts

IOWA DEPARTMENT OF NATURAL RESOURCES
ENERGY BUREAU
Wallace State Office Building
502 E. 9th Street
Des Moines, IA 50319
http://www.state.ia.us/dnr/energy/index.htm

IOWA UTILITIES BOARD
Regulates the state’s investor-owned utilities.
http://www.state.ia.us/dnr/energy/policy/deregulation.htm

Local Organizations Interested in Renewable Energy Issues

IOWA ENERGY CENTER
Located at Iowa State University, the Iowa Energy Center administers the state’s Alternative Energy Loan Program and the state’s Grants for Energy Efficiency and Renewable Energy Research program. Contact information:
Iowa Energy Center
Phone: (515) 294-8819
http://www.energy.iastate.edu/

IOWA RENEWABLE ENERGY ASSOCIATION
The Iowa Renewable Energy Association is a non-profit organization promoting the use of renewable energy and energy conservation in Iowa's homes, farms, and schools. Since 1992, I-RENEW has sponsored educational programs on alternative energy and worked with other grass-roots organizations to help disseminate existing knowledge about renewables and energy efficiency throughout the state.
http://www.irenew.org

IOWA ASSOCIATION FOR ENERGY EFFICIENCY
IowaENERGY.org provides information about energy efficiency and renewable energy in Iowa. This site includes information about green building, energy-efficient applications, wind power, government actions, new technologies, important events and much more.
http://www.iowaenergy.org

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