Field Notes – Iowa energy bills draw attention

Policy

We’re in the sixth week of the 2025 Iowa legislative session. Last Friday was the final day individual senators and representatives were able to file draft legislation. Moving forward, only bills with an appropriation or sponsored by a committee will be eligible for introduction.

The last two weeks have been filled with numerous subcommittee meetings and a handful of committee meetings. If a bill passes both the subcommittee and the full committee, it is then eligible for House or Senate floor debate. Center staff have been following bills through this legislative process as they relate to our priority issue areas.

Two energy bills have received our staff's time and attention; one relates to community solar, and the other is a comprehensive energy bill.

House File (HF) 404 (previously House Study Bill [HSB] 81) would establish a community solar facility program, allowing any farms, businesses, and other entities to own and operate a solar farm with at least three subscribers. Participants would receive credits on their energy bills based on the solar power they produced. Staff presented comments at the subcommittee meeting and are registered in support. The bill passed out of the full House Commerce Committee on Feb. 11, was renumbered, and is now eligible for House floor debate.

HSB 123 and Senate Study Bill (SSB) 1112 are companion bills introduced by Gov. Kim Reynolds. The legislation relates to energy planning, rate making, electric transmission lines, anaerobic digester systems, and expanding the existing energy infrastructure loan program. The Center is actively analyzing and researching each section and will monitor these bills closely. The House and Senate subcommittees considered the bill versions and recommended their passage. They will next be considered by the House and Senate Commerce Committee.

Finally, we expect the rural grocery and local food bill, HF 59, to be considered tomorrow, Feb. 19, at 9 a.m. by the House Economic Growth and Technology Committee. Passage by the committee would provide considerable headway in upcoming conversations on rural food access this legislative session.

See below to read about the other bills we are following.

Do you want to improve your advocacy writing skills? The Iowa Food System Coalition is hosting a free online workshop on Feb. 20 from 5 to 7 p.m. Join the interactive session to craft impactful letters to the editor and social media posts. You will leave with strategies to amplify your message and a sense of empowerment to make your voice heard. Register at this link.

If you have feedback on the bills we are monitoring, do not hesitate to reach out to me and share the rural issues important to you at [email protected] or 402.687.2100 ext. 1034.

Thank you for making your rural voice heard.

Rural grocery / local food

HF 59 / SSB 1054 — Support: Introduced in both the House and the Senate, these Center priority bills would create the Grocer Reinvestment Program and the Local Food Processing Program as well as appropriate money for the grocery reinvestment and local food processing fund. The legislation would give the Iowa Economic Development Authority direction to create a grant program for new or current grocery stores. Proposed amendments would provide updated eligibility requirements for grocery stores based on town population; the grocery store must exist in and benefit a community with a population of 20,000 or fewer and not share a border with a city with a population of 40,000 or greater. Prioritization would be given to projects focused on cost-saving efforts and business efficiency measures to ensure the long-term sustainability of stores. Grants would be directed to help small, locally owned grocery stores selling perishable foods in rural communities. The House subcommittee met on Jan. 23 and recommended passage of the bill. The Senate version has been assigned to a subcommittee, but a meeting has not yet been scheduled.

Check out this feature story on Mulholland Grocery!

Senate File (SF) 232 (previously SSB 1012) — Support: Introduced by the Senate Committee on Health and Human Services by Chairperson Mike Klimesh, this bill would allocate funding to the Iowa Healthiest State Initiative to administer Double Up Food Bucks. This program doubles the investment for purchases of fruits and vegetables by Iowans participating in the Supplemental Nutrition Assistance Program (SNAP). It also specifically benefits local food producers who accept SNAP at farmers markets, grocery stores, and other local places of sale. The bill was considered by the Senate Health and Human Services Committee on Feb. 10 and passed by a vote of 17-0. The bill has been renumbered and will next be considered by the Appropriations Committee; a subcommittee has been assigned, but a meeting has not yet been scheduled.

SF 9 / HF 179 (previously HF 32) — Monitor: These companion bills have been introduced in both chambers. The legislation would distinguish two separate categories for food processing licenses: a category in which meat or poultry is processed on a farm or private residence, and a general category including all other processing locations. In 2023, the general assembly revised the methods used to calculate the annual license fees imposed on food processing plants. The updated correlating license fee structure is included in the bill. The Senate subcommittee considered the bill on Jan. 28 and recommended its passage with amendments to make the bills identical. The House version passed through the Agriculture Committee on Jan. 28 by a vote of 23-0 and was renumbered.

Water quality

SF 3 / HSB 83 — Support: Introduced by Sen. Lynn Evans and Rep. Megan Jones, this legislation would designate additional flood mitigation activities to include reconnection of floodplains as well as wetland and oxbow restorations as “essential county purposes” in regard to the issuance of General Obligation bonds by counties. The Senate subcommittee considered the bill on Jan. 22 and recommended its passage. The House subcommittee considered the bill on Feb. 11 and recommended its passage. Both bills await consideration by the Local Government Committees.

Renewable energy

HSB 404 (previously HSB 81) — Support: Introduced by Chairperson Shannon Lundgren of the House Commerce Committee, this bill would establish a community solar facility program enabling any entity, including farms and small businesses, to own and operate a solar farm that has at least three participants who subscribe to the community solar. Subscribers would receive a credit to their energy bill based on the energy generated by the facility. The program would allow those who are unable to invest in individual solar systems to participate in a renewable energy project and capture energy savings. A community solar facility program offers additional options for Iowans to invest in solar energy generation to help meet the growing energy demand while helping to lower participants’ energy bills. This bill was introduced on Jan. 23 and passed out of the full Commerce Committee on Feb. 11. The House bill has been renumbered and will next be considered by the Full House.

HSB 123 / SSB 1112 — Undecided: Introduced by Gov. Reynolds, this is a bill relating to energy planning, rate making, electric transmission lines, anaerobic digester systems, and expanding the existing energy infrastructure loan program. The Center is actively analyzing and researching each section and will monitor these bills closely. The House version was introduced on Feb. 5, and the House subcommittee met on Feb. 17 and recommended its passage. The Senate version was introduced on Feb. 11, and the Senate subcommittee considered the bill on Feb. 13 and recommended its passage.

Other bills of interest

HF 369 (previously HF 33) — Support: Introduced by Reps. Chad Ingels and Shannon Latham, this bill would establish an agriculture education grant program to expand high school students’ access to instruction related to agriculture, food, and natural resources. The House subcommittee considered the bill on Feb. 5 and recommended its passage. The bill was then considered by the House Education Committee on Feb. 11 and passed by a vote of 23-0. The bill has been renumbered and will next be considered by the Appropriations Committee, but a subcommittee has not yet been assigned.

SSB 1051 — Oppose: Introduced by Chairperson Jason Schultz of the Senate Judiciary Committee, this bill relates to pesticides and the duty to warn or label. It would provide pesticide companies civil liability protection in a court of law if their products meet sufficient duty to warn label requirements and are approved and registered by the Environmental Protection Agency. The Senate subcommittee considered the bill on Feb. 5 and moved it forward by a vote of 2-1. It will next be considered by the Senate Judiciary Committee.

HF 99 / SSB 1074 — Support: Introduced by House Commerce Committee Chair Rep. Shannon Lundgren and Senate Health and Human Services Committee Chair Sen. Mike Klimesh, this bill relates to pharmacy benefits managers, pharmacies, and prescription drugs. Fair pricing requirements would allow rural pharmacies to be competitive and stay in business, preventing more areas of the state from losing local pharmacy services. The House version was considered by the House Commerce Committee on Feb. 11 and passed by a vote of 23-0. The Senate subcommittee considered the bill on Feb. 5 and recommended its passage.

HF 209 (previously HF 15) / SF 250 — Undecided: Introduced by Rep. Brian Lohse and Sen. Annette Sweeney, these companion bills would create a rural attorney recruitment assistance program. Rural counties and municipalities recruiting attorneys to practice in their areas would be eligible to apply for financial incentives through the College Student Aid Commission, providing program requirements are met. Center staff are researching the potential impact of this legislation, as it limits assistance to no more than five attorneys across the state. The House subcommittee considered the bill on Jan. 22 and recommended its passage. The bill was then considered by the House Judiciary Committee and passed by a vote of 21-0. The House bill has been renumbered and will next be considered by the Appropriations Committee. The Senate bill was introduced on Feb. 10. A subcommittee has been assigned, but a meeting has not yet been scheduled.

HF 143 — Support: Introduced by Rep. Devon Wood, this bill would create a rural veterinary practice innovation and revitalization fund and program. Funding would be appropriated to assist veterinary practices in rural counties. The bill was introduced on Jan. 27 but has not yet been assigned a subcommittee.

HF 235 — Undecided: Introduced by Rep. Henry Stone, this bill would change the general and rural county services levy rate limitation for upcoming fiscal years. It would allow counties to adjust levy rates if property tax income is equal to or less than the expected general county service expenses. Center staff are monitoring this bill to better understand the monetary consequences for counties that have declining property tax income. The bill was introduced on Feb. 6 but has not yet been assigned a subcommittee.

SF 270 — Support: Introduced by Sen. Mike Klimesh, this bill would create the Iowa Rural Development Tax Credit Program. Through an application process, the Iowa Economic Development Authority could award tax credits to qualifying businesses for investing in special capital contributions in rural areas. This bill was introduced on Feb. 11 but has not yet been assigned a subcommittee.

HSB 143 — Undecided: Introduced by the Department of Agriculture and Land Stewardship, this bill would clean up some parts of the Iowa Code and make changes to a few sections, including crop production nutrient application, animal health and foreign disease threats, agriculture food processing and licensing fees, and agriculture marketing as it relates to the grain indemnity fund. Center staff are exploring the details of this large bill and how it would impact rural communities. The bill was introduced on Feb. 10 and a subcommittee was assigned. The subcommittee meets today, Feb. 18, at 12:30 p.m. to consider the bill.