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News
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New
Rules
to Encourage More Small Wind Energy Development
Posted 9 July
2010
The Iowa Utilities
Board (IUB) has adopted rules to encourage the development of more
small wind generation systems across Iowa and help the state continue
to be a leader in renewable energy. The rules are for a State program
to simplify and encourage small wind generation systems (100 Kilowatts
or less nameplate capacity) being interconnected with electric
utilities, through the establishment of small wind innovation zone
designations in political subdivisions.
The new program stems from House File 810 enacted by the Iowa
Legislature in 2009. In March 2010, a model ordinance for establishing
an expedited local government approval process for small wind
generation systems was completed by the Iowa League of Cities, the Iowa
State Association of Counties, the Iowa Environmental Council, the Iowa
Wind Energy Association, and representatives from the utility industry.
To be designated as a small wind innovation zone, a political
subdivision (including but not limited to a city, county, township,
school district, community college, area education agency, institution
under control of the State Board of Regents, or any other local
commission, association, or tribal council) must either adopt or be
within the boundaries of a local government that adopts the model
ordinance.
In addition, an area seeking designation as a small wind innovation
zone must be served by an electric utility that uses the model
interconnection agreements developed in a previous rule making
(RMU-2009-0008 “Electric Interconnection of Distributed Generation
Facilities”). The interconnection rules are mandatory for
rate-regulated electric utilities serving Iowa such as MidAmerican
Energy Company and Alliant Energy/Interstate Power and Light Company
and voluntary for utilities that are not rate-regulated by the Board
such as municipal utilities and most rural electric cooperatives.
House File 810 and the Board’s new rules are intended to encourage
cities, counties, and other political subdivisions in the state to
adopt the model ordinance for small wind energy systems, expediting
local approval processes.
The new rules also create a new eligibility category under Iowa’s
renewable energy tax credit program (Iowa Code Chapter 476C), for the
owners of small wind generation systems that operate in small wind
innovation zones. Under Iowa Code Chapter 476C, a state production tax
credit of 1.5 cents per kilowatt-hour is available for energy sold by
eligible wind generation facilities.
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