As the Legislature came into session on Monday, a lot of things have already happened. We have started things up, elected our leadership, had the Governors address, the State of the Judiciary, and the State of the Iowa National Guard.
One of the things that I have been very interested in is Iowa’s energy policy. Iowa is a leader in renewable energy but as we found a few years ago in Texas, when the wind doesn’t blow, or the sun doesn’t shine we need reliable alternatives to the renewables. I am a fan of an “all of the above energy policy” and this week the Governor announced just that.
Affordable and Reliable Energy for Iowa
This week, the Governor announced in her Condition of the State Address that she will be bringing forward an energy bill that builds on the work the House passed last session in HF 2554. The following information was provided in the Governor’s Budget Book for FY26 on pages 36 and 37:
“Iowa is an energy leader. We rank number one in the United States for electricity produced by renewable generation. We rank in the top 10 for grid reliability and lowest average electricity price. Our energy mix and reliability are among the best int eh country, but as technology evolves and the demand on energy increases, Governor Reynolds is committed to a forward-focused, all-of-the-above energy strategy that serve to keep consumer prices low and position Iowa for future growth.”
The Governor is proposing the following in an energy bill this session:
- Nuclear – Nuclear Energy Tax Force to examine and support the potential of nuclear energy in Iowa as a means of expanding Iowa’s energy generation portfolio. Also, update the Iowa Energy Plan to account for nuclear energy expansion.
- Economic Development – Adding economic development as a factor of consideration during the Iowa Utilities Commission (IUC) proceedings related to electric utility service territory contract reviews and establishing a flexible rate tool to provide utility companies the additional ability to attract new, large energy-using customers.
- Integrated Resource Planning – Ensure rate-regulated electric utilities file a non-contested integrated resource plan with the IUC once every five years and as a requirement for advanced ratemaking proceedings. The Governor’s proposal also expands what generating assets are eligible for advanced ratemaking proceedings at the IUC to encourage new technologies, like natural gas peaking plants, and support all-of-the above energy solutions.
- Forecasting and Planning – The IUC will partner with ISU to conduct transparent, independent load forecasting and energy assessments for electric infrastructure planning in Iowa.
- Infrastructure Fund – Modernize the existing Energy Infrastructure Revolving Loan Program at IEDA. Iowa businesses, municipalities, and port authorities will be ablet o access low interest loans for critical energy and water-related infrastructure projects that are tied to economic development.
- Anaerobic Digestion – Bioenergy has always been an important aspect of Iowa’s energy portfolio. As a productive agriculture state, Iowa has great potential to further benefit from the value-added process of on-farm and municipal anaerobic digestion. The Governor’s bill will provide clear authority of the IDNR to permit on-farm and near-farm anaerobic digesters that utilize manure and other approved feedstocks to further support Iowa’s bioeconomy.
- Right of First Refusal – Grant incumbent utilities the Right of First Refusal on new electric transmission line infrastructure projects and ensures that those lines are constructed in a timely manner. The proposal would include land restoration standards to protect landowners’ property during construction and maintenance.
The House looks forward to working with the Governor on this legislation and ensuring access to affordable and reliable energy.
