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SF 2506

A bill for an act relating to matters under the purview of the economic development authority, the utilities commission, and the department of education, including creation of the headquarters expansion and development for growth and employment program, and the business incentives for growth program training fund; repeal of the new jobs tax credit program; the major economic growth attraction program; load forecasting and analysis of electric transmission system expansion plans; creation of the electric transmission system expansion planning and analysis and load forecasting fund; the industrial new jobs training program; establishing the new jobs training program interim study committee; the research activities credit; and including effective date provisions.

2025-2026 Regular Session

The bill creates a data-driven electric transmission planning framework funded by a new utility fund, mandates ISU-led forecasts, and requires utilities to share aggregated data.

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Bill Summary · SF 2506

Summary of Iowa S.F. 2506 (Session 2025-2026)

Purpose and Intent

S.F. 2506 would reorganize and expand Iowa’s framework for economic development and electricity planning. The bill creates new programs and funds through the Utilities Commission and state agencies (notably the Department of Education and the economic development authority) to support growth, training, and electricity transmission planning. It also repeals several existing tax credit and incentive programs and establishes new processes for data sharing, forecasting, and reporting on energy needs.

Key intent markers:
- Improve data-driven planning for electric transmission expansion and load forecasting.
- Create dedicated funds and programs to support growth, jobs training, and research activities.
- Increase the authority of the Utilities Commission to require public utilities to share information for planning purposes.
- Establish structured reporting to the public and the Legislature, with mandatory publication dates.

What the Bill Would Change or Create

New and Expanded Programs and Funds

  • Electric Transmission System Expansion Planning and Load Forecasting Fund: Creates a fund within the state treasurer for deposits from electric utilities (limited to 0.02% of total gross intrastate operating revenues from the prior year). Funds are appropriated to support loading forecasting reports and expansion planning analyses.
  • Headquarters Expansion and Development for Growth and Employment Program (implied in title): Purpose appears to support development efforts linked to economic growth and employment, though specific program mechanics are not spelled out in the excerpt.
  • Industrial New Jobs Training Program: Reformed/retained as part of the bill’s broader workforce development framework.
  • Research Activities Credit: Maintains or modifies a research credit tied to economic development and activity (details not provided in the excerpt).

Repeals and Replacements

  • ** repeal of the New Jobs Tax Credit Program**: The bill repeals this existing incentive program and replaces it with the new training and development programs.

Data Reporting, Forecasting, and Planning Provisions

  • ISU-led forecasting and analysis requirements: Iowa State University (ISU) must develop a load forecast and an electric transmission system expansion planning analysis. ISU must solicit input from residential, commercial, and industrial consumers and the electric industry.
  • Data confidentiality and aggregation: The ISU-generated report must rely only on aggregated data provided by utilities and must exclude identifying information about any individual utility’s electric system.
  • Publication timeline:
    • The load forecast and transmission planning analysis must be published by December 31, 2028, and biennially thereafter (on or before December 31 in even-numbered years, per the excerpt).
    • Additional reports may be commissioned by the authority as necessary; reports must be publicly available on the Utilities Commission’s website.
  • Compelled data sharing: The Iowa Utilities Board (IUB/Utilities Commission) is given authority to compel all electric utilities to share necessary information with ISU for the forecasting and planning work. This includes:
    • Electric utilities with many customers and those with fewer customers (electric cooperative corporations/associations and municipally owned utilities).
  • Use in proceedings: The aggregate forecast and planning analysis may be used as evidentiary support in any proceedings before the Commission.
  • Confidential handling: Utilities may employ third parties and use non-disclosure agreements to protect shared data.

Administrative and Procedural Provisions

  • Public utility contributions to the fund: Utilities must remit funds to the treasurer for deposit into the new fund, with the cap set at 0.02% of prior-year intrastate gross operating revenues.
  • Rulemaking: The Commission is tasked with establishing by rule an aggregate maximum for the plan/forecasting process (details of the maximum are not provided in the excerpt but indicates rulemaking authority).

Who/What Would Be Affected

  • Public Utilities and Electric Utilities: Direct obligations to share data with ISU for forecasting and planning, subject to confidentiality protections; financial contributions to the new fund.
  • ISU (Iowa State University): Primary entity responsible for producing the load forecast and expansion planning analysis, engaging with stakeholders, and publishing findings.
  • Iowa Utilities Board (Public Utilities Commission): Authority to compel data sharing, oversee the planning and forecasting process, and incorporate findings into regulatory proceedings; responsible for rulemaking and publication requirements.
  • Residents, Commercial and Industrial Customers: Stakeholders who would be consulted for input in ISU’s forecasting process (input must be solicited from these groups).
  • Economic Development Authority and Education Department: Roles indicated by the bill’s scope, including administration or oversight of related programs and potential linkages to workforce training and development.

Key Dates and Timeline

  • Publication of forecast and analysis: December 31, 2028, with biennial updates every two years thereafter.
  • Ongoing reporting: Reports must be publicly accessible on the Utilities Commission’s website; additional necessary reports may be commissioned.

Practical Implications

  • Shifts from existing New Jobs Tax Credit to new training-focused and research-oriented programs.
  • Establishes formal, data-driven planning for electric transmission expansion, potentially informing rate cases and infrastructure investments.
  • Increases state-level capability to collect and analyze granular utility data, balanced by confidentiality protections.
  • Creates a dedicated funding mechanism for forecasting and planning activities, with a defined cap on utility contributions.

Note: The summary reflects the text provided. Some program specifics (e.g., detailed eligibility, funding amounts for the new programs beyond the 0.02% cap, and the precise contents of the Headquarters Expansion and Development for Growth and Employment Program) may be further defined in the full bill and related administrative rules.

Compiled from official sources — confirm details with the bill’s official record.

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