The Iowa Policy Project

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The Iowa Policy Project www.iowapolicyproject.org
David Osterberg Executive Director Teresa
Galluzzo Research Associate
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The Iowa Policy Project www.iowapolicyproject.org
Founded in 2000 The mission of the Iowa Policy
Project is to promote public policy that fosters
economic opportunity while safeguarding the
health and well-being of Iowa's people and the
environment. By providing a foundation of
fact-based, objective research and engaging the
public in an informed discussion of policy
alternatives, IPP advances effective, accountable
and fair government. Three research
areas Budget Taxes Energy
Environment Economic Opportunity
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The Iowa Policy Project
IPP has continuously focused on renewable
energy Green Bike Renewable Energy Tours
RAGBRAI 1999 Europe 2002 Iowa
2002 Midwest 2004 Reports Statewide
Economic Values of Alternative Energy and
Energy Conservation 2002 Renewable Power and
Energy Efficiency Policies in Iowa and Other
States 2003 Wind Power and the Iowa Economy
2003 Small Packages, Big Benefits Economic
Advantages of Local Wind Projects 2005 All
reports are available under energy environment
at www.iowapolicyproject.org
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Wind Power Development in Iowa
1983 The Iowa Alternative Energy Production
(AEP) Statute (Iowa Code Sections 476.41-45)
passes. A utility is required to purchase all
electricity produced in its service territory by
a facility that uses alternative power. The price
is to be set at the cost the utility would avoid
if it were to build a new conventional power
plant. 1984 Based on the 1983 law, the Iowa
public utility commission writes rules that
include net metering as well as a statewide price
for renewable power. 1990 Iowa Legislature
passes an energy efficiency law, which required
each investor-owned electric utility to invest at
least 2 of its gross revenues in energy
efficiency. Included in the law is a provision
that allows the Iowa Utilities Board to establish
a statewide renewable energy buy-back rate.
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Wind Power Development in Iowa
1990 Commission rules base the price on a new
coal plant (6 cents per kilowatt-hour). The law
also limits the renewable power each utility must
purchase to 15 megawatts of effective capacity.
Iowa's seven Investor-Owned utility companies are
required to buy a total of 105 megawatts worth of
production (245 megawatts of nameplate capacity).
Does not apply to Co-ops or Municipal
Utilities. 1999 MidAmerican Energy and Alliant
Energy meet their obligation under the 1983 AEP
law when two wind farms with a capacity of
approximately 240 megawatts are added to the
state's small number of biomass, methane, wind
and hydro projects. 2002 426 MW
installed 2003 MidAmerican Energy announces it
will install 310 MW wind farm (worlds largest)
in Iowa over the next 4 years. 2005 As of
December, 837 MW installed.
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Still Room to Grow
Iowa has 10th highest wind potential in the
nation. It is the 3rd largest producer after
California and Texas. It is estimated that Iowa
has enough capacity to produce 4.8 times the
electricity Iowans consume. Wind is the fastest
growing energy source in the world.
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The Benefits of Wind Power
Does not pollute or require storage of
hazardous waste Price competitive and not
subject to volatility of fossil fuels Keeps
dollars in communities Diversifies economy and
creates jobs Increases tax revenues
Payments to landowners Dollars re-circulate in
community
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The Economic Advantages of Locally Owned Wind
Turbines

• 1. National Renewable Energy Laboratory 2004

Although a landowner may receive a lease payment
of 2,000 to 5,000 per turbine annually, owning
a turbine can double or triple the income.
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The Economic Advantages of Locally Owned Wind
Turbines

• 2. Wind Utility Consulting 2005

For 1MW of generating capacity annually
Locally owned wind generation creates 10 times
more economic activity in the local community and
state than does wind generation owned by
out-of-state companies.
Small-scale, locally owned wind projects provide
the greatest economic benefit to owners,
communities, and states.
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2005 Policies
Renewable Energy Tax Credit 90 MW 2.5 MW
project limit Local ownership requirement Renewa
ble Energy Tax Credit 450 MW Executive Order
Number 41 requires at least 10 percent of
agencies electric consumption come from
renewable energy resources that they purchase
alternative fuel or hybrid-electric vehicles for
100 percent of their non-law enforcement
light-duty fleet and increase their usage of bulk
diesel fuel. MidAmerican Energy Reaches 8
Renewable according to the Iowa Utilities
Board, MidAmerican Energy has 472.6 MW of owned
and purchased wind energy. IPL, the Alliant
company in Iowa will reach nearly 7.5 renewables
(mainly wind) if and when their new 150 MW plant
goes on line.
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Whats in Store
New Legislation Planned Instillation Top of
Iowa II 99 MW Endeavor 150 MW Tax Credits
90 MW and 450 MW Iowas Wind Powered Schools
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