DES MOINES, Iowa -- Iowa hasn't seen as much economic pain as some other states during the pandemic, but many residents and small businesses are still struggling.

Supporters of expanding the state's solar tax credit say it could help with any recovery from the crisis. The reimbursement budget for Iowa's credit is capped at $5 million annually, and with many homeowners and businesses investing in solar panels, there's a waiting list to get return dollars from the state.

Cody Smith, policy associate at the Center for Rural Affairs, said that's why the Legislature should consider modifications. He noted immediately paying those on the waiting list, while increasing the cap, would help a lot of Iowans hurting right now.

"Now that we have this economic problem caused by the coronavirus pandemic, this solar tax credit could help put money back into the pockets of people who own those small businesses on main street, and people who have already invested in renewable solar energy," Smith contended.

Smith asserted Iowa should also decouple from the federal incentive, given the ongoing uncertainty surrounding that plan.

Rep. John Forbes, D-Urbandale, said he'll advocate for an expansion in the next session. But he warns its future could depend on the upcoming budget forecast, and whether small businesses see more declines from the crisis.

He also wondered whether Republican leaders will consider the idea.

Certain sectors of Iowa's economy, such as manufacturing, have held steady, but Forbes said smaller consumer-driven businesses like restaurants are still seeing pain.

Dwight Dial, a farmer from Lake City, said trying to get by in this environment is tough. He installed a solar array in 2018, and he said the benefits from that investment are helping.

"My purpose of sustainability is that I am able to farm next year, that I can financially keep going," Dial emphasized. "And the solar unit has made it feasible."

Dial said his operation's energy costs have gone down considerably in a roller-coaster year for Iowa farmers.

But he's still waiting on state reimbursement for his solar purchase, and he said getting that would help pay off the initial investment, bringing more stability.

Those calling for changes say increasing the cap to $10 million not only helps those on the list, it would encourage others to take advantage, creating more demand for the solar industry.

Environmental groups in Minnesota are considering their next steps on the heels of a regulatory decision they said weakens the state's landmark carbon-free electricity law.

Late last week, the Public Utilities Commission clarified which technologies should be in the mix, as energy providers try to meet the requirement of 100% carbon-free electricity by 2040. The commission opened the door to allowing biomass -- namely the burning of wood -- and trash incineration to count as clean sources.

Barbara Freese climate program attorney at the Minnesota Center for Environmental Advocacy, said it is troubling the commission did not rule biomass options out.

"The law clearly said that to be carbon free, a generating source has to generate without emitting carbon dioxide," Freese pointed out. "These two sources of electricity, solid waste and biomass, emit tremendous amounts of carbon dioxide."

But utilities like Minnesota Power prioritize biomass as a form of renewable energy, with supporters arguing it is better to burn wood scraps from the logging industry than let it decompose. They argued it creates other carbon dioxide issues, and a carbon-neutral approach helps carry out the mission of the law. The commission decided more analysis is needed to get a clearer picture of the eligibility of these sources.

Despite the outcome, Minnesota's carbon-free requirement is not going away as the state added renewables like wind and solar. Freese expressed concern about what lies ahead.

"We can't be confident that the wording of the law will be accurately enforced," Freese contended. "And that is very troubling because there's going to be a lot of pressure to try to weaken this law."

She suggested pressure will not end with last week's decision. The law provides "offramps" for utilities struggling to meet the standard if clean-energy technologies are too costly or hinder grid reliability. And there is a push in the Midwest region to approve carbon-capture projects, with skeptics arguing some proposals are too large-scale and have yet to prove their effectiveness.


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In Kentucky, 462 businesses, farms and schools have received $77 million in federal funding to boost energy efficiency through the U.S. Department of Agriculture's Rural Energy For America Program, according to a new report.

The program provides loan guarantees and grants to farmers and rural small businesses.

Quenton King, government affairs specialist for the group Appalachian Voices, said the program is critical for helping agricultural producers and those in the tourism economy keep operating costs down.

"We're really grateful to the two Kentucky farms that agreed to talk with us, SouthDown farm in Letcher County and Sylvatica, a forest farm in Rockcastle County," King pointed out. "Both of those farms got a REAP grant to build solar arrays on their property."

SouthDown Farm in Letcher County received more than $7,000 from the program in 2020, enabling its owners to install a 20-kilowatt solar array. Sylvatica Forest Farm was awarded more than $11,000 in grant funding. Both businesses said the solar infrastructure will help reduce their energy consumption and lower their electric bills.

The infusion of an additional $2 billion for the program through 2031 as part of the Inflation Reduction Act will bring more energy efficiency and clean energy projects to Appalachia, King emphasized. He noted despite the funding boost, demand for the program continues to outpace available funding.

"We're looking at a future where people might not be able to apply for projects, or get money for projects," King projected. "That's really disheartening."


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Indiana is positioning itself as a national leader in clean energy, driving economic growth through innovative projects and significant investments.

Economic development officials said Indiana's heavy industry and manufacturing capabilities make it a natural partner for emerging technologies like carbon capture, hydrogen and solar power.

Andrea Richter-Garry, senior vice president of global strategy for the Indiana Economic Development Corporation, said clean energy is transforming the state's economy and creating new opportunities.

"A great example of that would be Heidelberg Materials down in Mitchell, Indiana, receiving a huge Department of Energy grant to be able to push forward a carbon capture project that will lead to low carbon cement," Richter-Garry outlined. "Wabash Valley just announced a huge project in Terre Haute."

Some opponents have said the best approach is to hold back on renewables, arguing technology will get better and be less disruptive to landscapes. Richter-Garry countered Indiana's manufacturing strength is a critical component of the transition. The clean energy industry has brought in $12 billion in capital investments, more than $40 million annually in taxes, and about $35 million a year in lease payments to Indiana landowners.

Richter-Garry noted Indiana's workforce and existing infrastructure are well-suited to produce essential clean energy components, including wind turbines and solar panels, helping meet national and global energy goals.

"The Mammoth Solar project, that 13,000-acre solar farm is going to generate 1.3 gigawatts of power," Richter-Garry pointed out. "That's 75,000 homes. Indiana again has the correct kind of landscape as well as some of the local partnerships to be able to continue that trend."

Indiana's clean energy initiatives are not just about sustainability, they are about securing the state's economic future. By leveraging its strengths in manufacturing and innovation, Indiana is paving the way for a prosperous green economy to benefit communities across the state.


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