United States Environmental Protection Agency State Incentives for Achieving Clean and Renewable Energy Development on Contaminated Lands The development of clean and renewable energy on formerly used land offers many economic and environmental benefits. Combining clean and renewable energy and contaminated land cleanup incentives can allow investors and communities to create economically viable clean and renewable energy redevelopment projects. This document provides information about incentives in your state that can be leveraged for clean and renewable energy and development of contaminated land. Incentives for Clean and Renewable Energy Funding (grants, loans, bonds, etc.) Iowa Energy Center Alternate Energy Revolving Loan Program (AERLP) www. energy, iastate. edu/AERLP/index.htm Provides single, low-interest loans to individuals and organizations building renewable energy production facilities in Iowa, including solar, biomass, small hydro, and small and large wind turbine facilities. AERLP provides 50% of the total loan at 0% interest, with a maximum loan value of $1,000,000. Tax Incentives (abatements, deductions, credits, etc.) Renewable Energy Production Tax Credits www.state.ia.us/government/com/util/energy/renewable_tax_credits.html Provides a state production tax credit of 1.5 cents per kWh over 10 years for eligible wind and certain other renewable energy facilities, including biomass and solar. Tax credit is not available for facilities that generate energy for the owner's self-use. Tax credit may be applied toward the state's personal income tax, business tax, financial institutions tax, or sales and use tax. The total amount of capacity eligible for the tax credit is 180 MW for wind energy facilities and 20 MW for other renewable facilities. Wind Energy Tax Credits www.state.ia.us/government/com/util/energy/renewable_tax_credits.html Offers a state production tax credit of 1.0 cent per kWh for energy sold or used onsite by eligible wind energy facilities. Maximum total amount of wind generating capacity eligible for the tax credits is 450 MW, and single facilities must have a capacity of at least 2 MW to be eligible. Tax credit may be applied toward the state's personal income tax, business income tax, financial institutions tax, sales and use tax, or utility replacement tax. Wind and Solar Energy Equipment Exemption www.dsireusa.org/library/includes/incentive2.cfm?lncentive_Code=IA01F&state=IA& CurrentPagelD=1&RE=1&EE= 1 Exempts from the state sales tax the total cost of equipment and materials used to manufacture, install, or construct wind and solar energy systems. Wind and Methane Gas Energy Replacement Generation Tax Exemption www.dsireusa.org/library/includes/incentive2.cfm?lncentive_Code=IA10F&state=IA& CurrentPagelD=1&RE=1&EE= 1 Exempts electricity generated by methane gas conversion and wind energy conversion property from the replacement generation tax, 0.06 cents per kWh. Property Tax Exemption for Methane Gas Recovery Systems www.dsireusa.org/library/includes/incentive2.cfm?lncentive_Code=IA09F&state=IA& CurrentPagelD=1&RE=1&EE= 1 Exempts property and improvements to property used to collect and convert methane gas to energy in an operation connected with, or in conjunction with, a publicly owned sanitary landfill from the state property tax. Local Option for the Special Assessment of Wind Energy Devices www.dsireusa.org/library/includes/incentive2.cfm?lncentive_Code=IA02F&state=IA& CurrentPagelD=1&RE=1&EE= 1 Allows cities and counties to pass ordinances to assess wind energy conversion equipment at a special valuation for property tax purposes, beginning at 0% of the net acquisition cost in first assessment year and increasing annually by five percentage points to a maximum of 30% of net acquisition cost in the 7lh-19lh succeeding years. Technical Assistance and Other Incentives Solar Access Easement Provisions www.dsireusa.org/library/includes/incentive2.cfm?lncentive_Code=IA04R&state=IA& CurrentPagelD= 1&RE=1&EE= 1 Allows cities to create binding solar easements to protect and maintain proper access to sunlight to operate solar energy systems. Net Metering wm/.state.ia.us/government/com/util/docs/orders/2006/0808_PURPAStd11.pdf Allows customers of rate-regulated investor-owned utilities with alternative energy generation systems to net their kWh energy production against their metered retail kWh use, up to 500 kW of capacity. Net excess generation carried forward for use in net metering in future months. Quick Facts Public Benefit Fund (PBF) Yes D No 0 Renewable Portfolio Standard Yes 0 No D Set-aside of 105 MW required of two investor-owned facilities (MidAmerican Energy and Alliant Energy Interstate Power and Light (7PLJJ; voluntary goal of 1,000 MWof wind capacity by 2010. An August 2008 order imposes conditional requirement on IPL if it proceeds with plans to build a coal-fired plant: additional renewable energy procurement target of 500 MWin 2013, increasing incrementally each year toward an ultimate target of 1,600 MW in 2028. Net Metering Yes 0 No D Interconnection Standards Yes 0 No D Electric Power Industry Generation by Primary Energy Source (EIA, 2006) Petroleum-Fired 0.5% Nuclear 11.2% Natural Gas-Fired 5.3% Coal-Fired 75.6% Hydroelectric 2.0% Other Renewables 5.4% Points of Contact Iowa Energy Center AERLP, www.energy.iastate.edu Bill Haman, iec@energy.iastate.edu, (515) 294-4710 Iowa Utilities Board, www.state.ia.us/government/com/util/ Renewable Energy Production Tax Credits, Wind Energy Tax Credits, Solar Access Easement Provisions, Net Metering John Pearce, John.Pearce@iub.state.ia.us, (515) 281-5679 Iowa Department of Revenue, www.bwa.govAax/ Wind and Solar Energy Equipment Exemption Jim McNulty, Jim.McNulty@iowa.gov, (515) 281-6183 Wind and Methane Gas Energy Replacement Generation Tax Exemption Alan Harding, Alan.Harding@iowa.gov, (515) 281-4782 Property Tax Exemption for Methane Gas Recovery Systems, Local Option for Special Assessment of Wind Energy Devices Jim Moyle, Jim.Moyle@iowa.gov, (515) 281-7232 Information current as of November 2008; please refer to www.dsireusa.org and the state Web sites provided, or contact the points of contact identified above for more up to date information. Iowa Incentives for Clean and Renewable Energy - Page ' ------- Incentives for Development of Contaminated Land Funding (grants, loans, bonds, etc.) Physical Infrastructure Assistance Program (PIAP) www.iowalifechanging.com/business/financial_assistance.html Offers loans, loan guarantees, and cost shares to financially assist capital-intensive infrastructure projects that create unique opportunities for quality, high-wage jobs and demonstrate a statewide impact. Applicable to brownfields projects meeting development criteria. Hazardous Waste Remedial Fund www.iowadnr.com/land/consites/hwregistry/hwindex.html Provides funding for administration, site investigation, emergency response, removals, remedial actions, operations and maintenance, Comprehensive Environmental Response Compensation and Liability Act (CERCLA) match, studies and design, and grants to local governments. 75% of the fund must be used for remediation. Tax Incentives (abatements, deductions, credits, etc.) Tax Increment Financing (TIF) www.iowalilechanging.com/business/tif.html Allows businesses to receive direct benefits from the property tax increases caused by the added value of new facilities. Cities or counties can reimburse response action costs (over a six-year period) by financing direct grants or loans to the business and by offsetting the costs of public improvements or provision of utilities to serve the new private development. Limitations on Liability No Further Action (NFA) www.iowadnr.com/land/consites/lrp/conLRP.html Provides a NFA Certificate following assessment and implementation of appropriate cleanup activities and/or other remedies to assure the protection of public health and the environment for sites cleaned under Iowa's voluntary cleanup program, the Land Recycling Program. This certificate provides limited liability protection from further regulatory action relative to the problem(s) addressed. Quick Facts Limitations on Liability Yes 0 No D Number of State-Tracked Contaminated Properties: 512 Includes Administrative Order, Chapter 133, Consent Order and Land Recycling Program Sites Number of EPA CERCLIS Sites: 107 Sites identified for potential investigation under the federal Superfund Program Number of EPA Brownfields Properties: 460 Properties being funded or addressed under the EPA Brownfields Program There may be some overlap among the categories listed and sites listed may not represent all potentially contaminated sites in Iowa. Points of Contact Iowa Department of Economic Development www. iowalifechanging. com PIAP, TIF Mike Tramontina, director@iowalifechanging.com, (515) 242-4720 Iowa Department of Natural Resources (DNR), www.iowadnr.com/ Hazardous Waste Remedial Fund, NFA Mel Pins, mel.pins@dnr.state.ia.us, (515) 281-8489 Information current as of November 2008; please refer to www.epa.gov/brownfields/pubs/st_res_prog_report.htm and the state Web sites provided, or contact the points of contact identified above for more up to date information. Iowa Incentives for Development of Contaminated Land - Page 2 ------- |