CEDI Advocates for All Iowans
The Clean Energy Districts of Iowa (CEDI) works for energy policy that:
- Keeps energy dollars local and creates clean-energy prosperity throughout Iowa;
- Supports a fair and inclusive clean-energy transition; and
- Promotes climate stewardship to make Iowa “livable” for coming generations.
2024 Legislative Session Update
The first legislative funnel has passed, and we have a clearer picture of energy related bills under serious consideration in the Iowa Legislature this session. There is a mix of good/bad/ugly, and now is a good time to make your voice heard.
CEDI encourages advocacy efforts that are respectful, and personalized. One well-reasoned, personalized appeal can be worth a dozen or more form letters or signatures on a petition. Connect directly through phone or email, state your case, and ask a question to solicit a response. Then consider a letter to a media outlet, and/or finding additional messengers to join in advocacy.
Find your state legislators here.
“Yes” to Integrated Resource Planning
Integrated Resource Planning (IRP) is our top priority this session. It is a critical tool for regulators to ensure that ratepayers are only paying for what they need, and that investor-owned utilities don’t put shareholder profit over reliability and affordability for Iowans.
Our February 20 guest column in the Des Moines Register lays out the basics, and may provide enough information and ideas for most to engage on the issue. For those wanting to dig further, we have created an IRP resource page.
IRP has long been lacking – and needed – in Iowa, but a recent report commissioned by the Legislature and the Iowa Utilities Board (IUB) has brought IRP into the spotlight, and built bipartisan support for serious consideration. There is a bill in both chambers, but they are very different.
Senate File 2244, introduced by Senator Klimesh, is a very strong bill that makes IRP comprehensive, participatory, and requires that it be conducted on a regular cycle. Key improvements should include clarifying that a full IRP docket is required every three years (including within one year of passage), and ensuring that the energy efficiency programs continue in parallel. The main message to Senators is to work with colleagues and leadership in support of SF 2244.
House File 2551 is a much broader energy bill that includes a short section on IRP. It needs improvement, as it currently leaves an IRP docket to the discretion of the IUB and only in certain circumstances. This would make it a relatively useless exercise if the goal is to help regulators ensure that ratepayers are only paying for what they need, because IRP needs to be the foundational process upon which all other rate regulation is built.
The main message to House members (and Senators too, if the House bill reaches them) is that for IRP to help utility customers and communities across Iowa, it must be a ROBUST, FOUNDATIONAL PLANNING PROCESS as it is in virtually all states, and as explained in the London Economics report, that is:
- Comprehensive in scope – including all distribution, generation, and transmission assets and investments under consideration by a utility;
- Transparent and participatory – conducted as a contested case allowing stakeholders and ratepayers (who are captive customers of the monopoly utilities) to be a part of the process; and
- Required to be completed on a regular cycle, ideally every three years.
Read our guest column, check out the resource page, and make your own case to your legislators here.
Ratepayer Poison: “No” to Transmission Right of First Refusal (ROFR)
Senate File 2372 and House File 2551 are companion bills that grant a right of first refusal (ROFR) to incumbent transmission owners to construct, own, and operate any new transmission lines that connect to their existing system. MidAmerican Energy and ITC Midwest own and operate most of the transmission lines in Iowa and are lobbying hard for this lucrative state protectionism.
The Legislature should not be granting an unnecessary monopoly to one of the highest-priced transmission companies in the country, when competition could potentially help Iowa customers and communities experience rate relief over time.
In 2007, Alliant Energy sold its transmission assets to ITC Midwest. According to a 2022 complaint brought against ITC by parties including the Iowa Utilities Board (IUB), the company proceeded to raise rates to the point where they are now 275% higher than the Midwest average. According to the Board, “The higher transmission rates for IPL’s ratepayers puts a number of industrial customers of IPL at a competitive disadvantage in the marketplace when compared to their peers in other states”.
It is not only industrial customers hurt by expensive transmission. ITC rates now represent roughly a quarter of the bills of Alliant residential and small business customers, whose rates are some of the highest in the Midwest, and rising. Well over 70 Alliant-served communities have passed resolutions in opposition to the latest Alliant-proposed rate increase, which is under consideration at the IUB now.
ROFR was passed by the Legislature in 2020, only to be overturned by the Iowa Supreme Court in no uncertain terms: “The provision is quintessentially crony capitalism. This rent-seeking, protectionist legislation is anticompetitive. Common sense tells us that competitive bidding will lower the cost of upgrading Iowa’s electric grid and that eliminating competition will enable the incumbent to command higher prices for both construction and maintenance. Ultimately, the ROFR will impose higher costs on Iowans.”
Some legislators weren’t especially happy with the Court’s decision, and are framing the current legislation as an important separation of powers debate. It would be a sad day indeed if a turf war caused legislators to ignore the potential benefits of competition in the transmission space, and locked Iowa (and especially Alliant) ratepayers into ever-higher rates.
“Yes” to Community Solar
Senate File 2356 establishes a community solar program in Iowa for customers of Alliant and MidAmerican.
Back in 2020, the Iowa Legislature codified net metering for customers of Iowa’s investor-owned utilities. This was a strong bipartisan effort, and a tremendous step in protecting the right of ratepayers to own solar and other clean energy resources, on fair terms.
The problem is, only about half (very roughly) of customers of Alliant and MidAmerican may be eligible for net metering. Many residential, business, and institutional customers don’t have space (rooftop or otherwise) to connect behind their meter, and virtually all renters don’t have the ability to own solar.
Not only is community solar an important step towards fairness to all ratepayers, it can also be a valuable tool to bring rate relief to Alliant customers. While Alliant currently has a very small community solar program, the terms and conditions are not favorable, because the company owns and operates the program.
The proposed SF 2356 would allow third parties such as local developers to own community solar gardens, and ratepayers to subscribe to solar gardens in their own communities. Local ownership of solar energy contributes to local clean energy prosperity, and provides a critical counterweight and competitive element to the monopoly investor-owned utility.
“Yes” to Tax Relief for Free Electric Vehicle Charge Stations
House File 2387 provides critical tax relief to electric vehicle charging stations that do require payment for EV charging.
In 2019, the Legislature passed HF 767, which unfortunately created a “triple tax” situation for electric vehicle owners. A core of the bill was the implementation – starting in 2023 – of a 2.6 cents per kilowatt-hour state tax on electric vehicle charging at all charge stations other than those at a residence. The rules ultimately tasked the Iowa Department of Agriculture and Land Stewardship with inspections of charge stations every two years.
Many EV charge stations owned by businesses or communities around rural Iowa have provided free charging to customers, for customer service, tourism, or economic development reasons. Such charge stations can be installed at relatively low cost because they don’t require expensive metering and payment processing systems. Rather than incurring these expenses in order to meet the new requirements of HF 767, many station owners have been opting to simply close the station altogether.
HF 2387 provides relief to those station owners, by exempting all EV charge stations that provide charging services without a fee from complying with the permitting and taxation requirements. This doesn’t fix all the discriminatory aspects of HF 767, but it is a step in the right direction.
“No” to the Elimination of the Building Code Advisory Council
Senate File 2385 and House File 2574 eliminate dozens of boards, commissions, committees, councils, and other entities of state government.
One of the entities slated for elimination is the Building Codes Advisory Council. This is a seven-member board of building-related professionals that advises the Building Commissioner and the state administration on updates to the state building code, which includes the state energy code.
Building codes are critical aspects of governance for the public good. Energy codes save households and business owners money, and contribute to better indoor air quality. Currently Iowa utilizes the 2012 energy code, and DOE analysis (fact sheet here, Iowa code page here) shows that residential and commercial consumers could save hundreds of dollars per year if Iowa adopted the 2021 energy code.
As our friends at Iowa Interfaith Power and Light further explain, Iowa’s Building Codes Advisory Council serves Iowans, and should not be eliminated.
Posted: February 25, 2024
