Our Agency

Call to order 1:00 p.m.

Board Members Present
Troy DeJoode, Board Chair
Stuart Anderson, Board Vice Chair
Jennifer Johnson
Debi Durham
Craig Just
Geri Huser*
Dan Nickey*
Kelcey Brown*
Terry Kouba*
Matt Washburn*

Absent
Scott Stokes

Iowa Economic Development Authority Staff Present
Brian Selinger
Amber Buckingham
Stephanie Weisenbach
Terry Roberson
Lisa Connell
Kanan Kappelman
Staci Hupp-Ballard
Rob Christensen
Betty Hessing
Shelly Peterson*
Abbie Christophersen*
Emily Hockins*
Deanna Triplett*
Vicky Clinkscales*

Iowa Finance Authority Staff Present
Michael Thibodeau, Iowa Finance Authority*
Dave Powell, Iowa Finance Authority*
Samantha Askland, Iowa Finance Authority*
Tim Morlan, Iowa Finance Authority*

Others Present
Chaz Allen, Iowa Utility Association
A. Johnson, Citizen
Brandon Halverson, Guest*
Laura Skogman, McGough Construction*
Heather Hackbarth, Iowa Dept. of Management*
Jeff Gorrie, Iowa Association of Municipal Utilities*
Jonathan Haas, ICF*
Wanda Woodley, City of Hawarden*
Carol Hoogestraat, City of Hawarden*
Jacob Grobe, Guest*
Brenda Biddle, Iowa Utilities Board*
*Participated via Teams

Welcome & Introductions by Board Chair Troy DeJoode
Troy DeJoode welcomed everyone to the February 23rd IEC Board meeting.

Roll Call
Betty Hessing did roll call and a quorum was established.

Consideration of November 17, 2022 IEC Board Meeting Minutes
Motion by Stuart Anderson
Motion I move approval of the November 17, 2022 IEC Board
meeting minutes as presented.
Second Craig Just
Voice Vote All ayes in favor. Motion approved.

Fiscal Update – Attachment A
Terry Roberson explained we have just over $11.3 million available to grant out at the current time. On the Energy Infrastructure Loan Program, we have almost $14M and it looks like we have a loan termination and will recapture from the old loan program today. We also have new loans on the agenda today so that will make the balance go down. Not much new on old loan program. Terry Roberson stated he would be happy to answer any questions, but no questions were asked.

Competitive Grant Program Update – Amber Buckingham
Amber Buckingham reported that if everything goes well, we will be launching the fifth round of competitive grant applications this afternoon. The preapplication due date will be March 23rd. Those applicants who are invited for the full application phase, those will open in May of 2023 and the funding decisions will be made at the August Board meeting.

For the existing grants, starting with the May Board meeting, we will have a grant recipient at most, if not all, of our Energy Center Board meetings to discuss the progress on their grant projects. Due to some delays, we just finished-up the grant visits for our existing grants. At the May meeting we will have an Annual Report for your review.

Amber Buckingham asked if there were any questions; no questions were asked.

Grant Program Policies and Procedures Handbook – Attachment B
Amber Buckingham explained the Iowa Energy Center (IEC) Grant Program Policies and Procedures Handbook provides guidelines for the administration of  the IEC Grant Program. As established by 261 Iowa Administrative Code 404.2, the Board must review the Grant Program Policies and Procedures Handbook annually.

The IEC Grant Committee members met in January to discuss potential changes to the Policies and Procedures Handbook for the fifth round of grant applications. Changes for the next round of applications include but are not limited to the following: updates to reporting requirements, clarification regarding eligibility of projects and updates to the scoring matrix for both the preapplication and full application phase. These changes will strengthen the Grant Program and provide clearer guidance to applicants and grant recipients. 

We increased the number of points in both the pre-application and full application phase and we increased the points necessary to move on and be funded. Other things were just the dates that reports are due and some eligibility regarding private asset development.

Our recommendation would be to approve the Policies and Procedures Handbook for the Fifth Round of Competitive Grant Program Funding. 
Motion by Debi Durham
Motion I move to approve the Policies and Procedures Handbook for the Fifth Round of Competitive Grant Program Funding.
Second Jennifer Johnson
Roll Call Yes: 10 Abstain: 0
Motion approved.

Grant Modification Request for 20-IEC-007 – Iowa State University – Strategies for Building Soil Carbon and Generating Carbon Negative Energy in Iowa Counties – Attachment C
Amber Buckingham stated the Iowa Economic Development Authority received a request from Iowa State University to extend the agreement end date for Project 20-IEC-007 to May 31, 2023.

The above referenced agreement was made to Iowa State University with an agreement end date of March 31, 2022. An initial no cost extension was requested by Iowa State University and approved by staff in January 2022. This extension was granted for one year, extending the agreement end date to March 31, 2023. The PI had some difficulty hiring research assistants to assist with finishing the project and completing the necessary reports. The PI was recently able to hire two research assistants and feels that the two-month extension will enable them to complete the final deliverable and final report. The overall budget for this project will not change. Staff recommends approving the second no cost extension, changing the agreement end date from March 31, 2023 to May 31, 2023.

Chairperson DeJoode asked if there were questions; no questions were asked.
Motion by Craig Just
Motion I move to approve the second no cost extension, changing
the agreement end date from March 31, 2023 to May 31,
2023 for 20-IEC-007.
Second Debi Durham
Roll Call Yes: 10 Abstain: 0
Motion approved.

Grant Modification Request for 20-IEC-017 – Iowa State University (ISU) – Low-Cost Biobased Composite Material for Ultra Durable and Recyclable Wind Turbine Blades - Attachment D
Amber Buckingham stated Iowa State University (ISU) has requested a budget modification amendment for award 20-IEC-017. The PI has indicated the need to reallocate funds within the approved budget to support costs relevant to the proposed research activities, such as supporting a
part-time post doc, supply costs and tuition. They have requested to move the funds from Other Direct Costs, Student Tuition, and Supplies and Materials to Honoraria and Services. It is about $50,000, but it does not impact the overall grant request, which remains unchanged at $450,436.
Administrative Rule 261 IAC 404.7(7)(a) provides that any substantive change to a funded IEC project, including time extensions, budget revisions, and alterations to proposed activities, will be considered an agreement amendment. As this request is over $10,000, Board approval is necessary.

Staff recommendation is to approve the amendment to 20-IEC-017; moving the requested funds from Other Direct Costs, Student Tuition and Supplies and Materials to Honoraria and Services.
Chairperson DeJoode asked if there were questions; no questions were asked.
Motion by Stuart Anderson
Motion I move to approve the amendment to 20-IEC-017, moving
the requested funds from Other Direct Costs, Student
Tuition and Supplies and Materials to Honoraria and
Services.
Second Craig Just
Roll Call Yes: 10 Abstain: 0
Motion approved.

Grant Modification Request for 21-IEC-009 – Iowa State University – Micro- DERMS: DER Management System for Real-Time Monitoring and Control of Networked Mobile-Microgrids and DER-Integrated Distribution Grids – Attachment E
Amber Buckingham stated Iowa State University has requested a grant modification for award 21-IEC-009.

Due to an administrative issue, the originally named Principal Investigator (PI), Dr. Gelli, was unable to continue his role in the project research and Iowa State  University requested that Dr. Anne Kimber, the former Co-PI, be named lead PI in a previous amendment request. The  aforementioned administrative issue has now been resolved and Dr. Gelli can return to the role of PI. ISU would like to transition the PI role to Dr. Gelli effective immediately. Dr. Kimber will resume her role as Co-PI on the project. The end date for the project is October 4, 2024.

Administrative Rule 261 IAC 404.7(7)(a) provides that any substantive change to a funded IEC project, including time extensions, budget revisions, and alterations to proposed activities, will be considered an agreement amendment. 

Staff considers this amendment to be substantive and requires Board approval.
Staff recommends approving the change of PI for 21-IEC-009, which will be effective as of February 23, 2023.
Chairperson DeJoode asked if there were questions; no questions were asked.
Motion by Debi Durham
Motion I move to approve the grant modification request for
21-IEC-009.
Second Stuart Anderson
Roll Call Yes: 10 Abstain: 0
Motion approved.

Loan Program

Loan Termination Request from Ryan Wangsness – 20-AEL-009 – Attachment F 
Stephanie Weisenbach stated this item is related to the previous Loan Program—the Alternate Energy Revolving Loan Program and it is a termination of a loan agreement requested by the recipient, Ryan Wangsness. This was a
solar project that the Board approved in May of 2021 for $38,877.50. The project was delayed and he ultimately wanted to utilize other financing. We have not disbursed any funds and they did not provide any collateral.
Staff recommendation is to approve IEDA Execution of a Termination Agreement with Ryan Wangsness.
Motion by Geri Huser
Motion I move to approve IEDA’s Execution of a Termination
Agreement with Ryan Wangsness.
Second Craig Just
Roll Call Yes: 9 Abstain: 1 (Washburn)
Motion approved.

Energy Infrastructure Revolving Loan Program (EIRLP) – EIRLP Update –
Stephanie Weisenbach stated the Energy Infrastructure Revolving Loan Program received six applications in this quarterly cycle totaling approximately $5.4M in requests. Since this new and revised program opened in the Fall of 2021, this is the highest amount requested from the program that we have seen in one quarter. We have also received our first application from a municipal utility, and you may recall we added municipal utilities as an eligible borrower in the program. Our staff, both from IEDA and IFA, conducted due diligence and
reviewed all the applications, which included but is not limited to financial evaluation and project cash flow research on the proposed collateral and utilization of the program’s evaluation criteria that we have in our Policies & Procedures.

The IEC Loan Committee, comprised of Board Members, met last week and their recommendations are provided in Board Papers. 
Ms. Weisenbach asked if there were questions; no questions were asked.

Energy Infrastructure Revolving Loan Program Loan Application Request – City of Hawarden – Attachment G
Stephanie Weisenbach explained for this particular loan application, we have an abstaining Board Member. Chair DeJoode stated he would abstain and turn over administrative duties to Vice Chair Anderson. Stephanie Weisenbach stated our first loan application is for the City of
Hawarden and they are requesting a maximum loan amount for the program, which is $2,500,000 for a 9-year term. The recommendation is to approve this application and this municipal utility plans to complete a new larger substation, which replaces their current substation that has reached the end of its useful life and does not have the capacity to serve the planned growth of the community. The new substation will improve reliability, serve the increasing load in the community, and include SCADA (Supervisory Control and Data Acquisition) so they can monitor and control the system. The total project cost is estimated at $5,997,600 per the engineer, but it may change after the City goes out to bid. Financing through EIRLP will reduce the costs of borrowing from solely bond financing at a higher interest rate and utilizing their reserve fund to help cover project costs, which the city needs to maintain for repairs and emergencies. 

The recommendation from the Loan Committee is to approve the full requested loan amount of $2,500,000 for a 9-year term at the 2% interest rate established in the program’s policies and procedures. Matching funds will come from bond financing and also the Sioux County Board of Supervisors. Those amounts will be finalized after the City goes out to bid for the project. We will also be requiring that they document those commitments prior to our disbursement of funds per our procedures and agreements requirement.

The Energy Infrastructure Revolving Loan Program requires projects to fulfill at least one of the program purposes in Iowa Code. This project most aligns with purposes of the electric distribution and electric grid modernization. The program also requires projects to fulfill at least one of three evaluation criteria. This project demonstrates characteristics of broad-reaching benefits to the state, local community and/or utility ratepayers, which is required for loans over $1M. The project will improve resiliency and expand capacity through a larger substation. The City’s ability to convey the reliability of utilities is an economic development tool and additional load in the community is planned due to the expansion and location of new facilities. This includes an $11.2 million expansion of the Hawarden Regional Hospital which serves the region with health care services and all the area 911 calls, their grain elevator, high school, and a potential future expansion of food processor and pet food producer— Dakota Treats. The whole community will benefit from this improved infrastructure. Over half of the population is below the low-to-moderate income threshold and the loan will ease the pressure to increase rates to cover the project.

Utility revenues are the pledged security for the loan. Municipalities have limited security available for debt service based on Iowa Code. IEDA will work with the city’s bond counsel to structure the loan agreement’s collateral to be in compliance with Iowa Code. They are looking to complete the project in the Fall of next year.

Stephanie Weisenbach stated the recommendation from the Loan Committee is to approve the loan and she asked if there were any questions.
Motion by Geri Huser
Motion I move to approve the full requested loan amount of $2,500,000 for a 9-year term at the 2% interest rate established in the program’s policies and procedures.
Second Debi Durham
Geri Huser wanted to know the intent of the Grant Program to provide for general substation upgrades; are we are anticipating more projects that are similar to this? It would seem to me you would have a whole lot of municipalities who would apply that would be eligible.
Stephanie Weisenbach replied it was demonstrated that this was more than just improving their existing condition due to the expansion and also the supervisory control and data acquisition monitoring controls piece. Knowing that certain projects may have more demand, we have within
our Policies & Procedures that if the Board wanted to try and create some allocations or limitations of certain project types, you could do that. Stuart Anderson stated that was a question that was discussed at committee level and we still felt comfortable with the recommendation to approve.
Geri Huser stated she appreciated Mr. Anderson’s response and that she does not sit on either committee, so sometimes she has questions about what the program looks like moving forward and appreciates the information. Debi Durham stated it was a great question because it truly
could open the door.
Roll Call Yes: 9 Abstain: 1 (DeJoode)
Motion approved.
Stephanie Weisenbach explained the next series of applications on the agenda all start with the phrase “Red Lion” and this is because they have common ownership within the projects specific LLC’s that were formed by the Iowa based company, “Red Lion Renewables”, so we wanted to have this explained first before we went into each application and the recommendation. As you may know, it is common in the energy industry for project specific LLC’s to be set-up in this way for totally separate and distinct projects. When the Loan Committee met, it was determined to limit the total amount that could be loaned to a common owner, which would reduce risk to the Energy Center and the three applications selected by the Committee for recommendation to the Board, demonstrated broad reaching benefits for the program in addition to creative or innovative approaches which are part of the evaluation criteria. The applications have some similarities and I will expand on some of those characteristics in more detail for the first one and then summarize it for the remainder due to some duplicative information.

Energy Infrastructure Revolving Loan Program Loan Application Request – Red Lion Albia Schools Solar LLC – Attachment H
Stephanie Weisenbach moved into the first application, which is Red Lion Albia Schools Solar LLC. The electric utility for this project area is Chariton Valley Electric Cooperative. They plan to complete and own a solar plus battery storage project and execute a Power Purchase Agreement with Albia Community School District. The project will add 174 kW of solar arrays at 7 school facilities, mostly rooftop arrays with one ground mount next to a greenhouse. It also includes a battery system at the high school to offset some peak demand and associated demand charges. The total project cost is about $1.1M so that makes the loan share of this small for the overall project cost. The other financing source is coming from investors in the project, both from the company Red Lion Renewables and investors they have identified for the project. As soon as they would receive loan approval, they would work to confirm those and have that information, which is required for disbursement of funds.

Their source for their match is subject to some adjustment if they get a grant from USDA for the project, but they have provided assurance that they will move forward without the grant if they don’t get it and they also have additional reserves that they use for the project cash flow as needed in order to keep the project going. They are also planning on some incentives—the Federal Investment Tax Credit and USDA REAP grant, which hasn’t been secured, but they say they could move forward without it. \

For the program purpose and eligibility of the project, this would align with electric generation, which is listed in Iowa Code for the program and in terms of the evaluation criteria, it fulfills a couple of those for the broad-reaching benefits aiming that for the school district as well as providing some STEM curriculum opportunities and savings to the school district. The creative or innovative approach is demonstrated through the use of battery storage system programmed to reduce demand spikes and associated charges. Battery storage is in early stages of adoption in Iowa, and this may be the first battery storage system within a K-12 school district. Three types of collateral are pledged to secure the loan for this project. They are:
1. Power Purchase Agreement (PPA) assignment with associated revenues;
2. UCC on solar and battery equipment;
3. Corporate guaranty from Red Lion Renewables LLC (owner company of project LLC).

Stephanie Weisenbach stated they are looking at the Fall of 2024 for completion of the project.
Motion by Debi Durham
Motion I move to approve the loan request of $186,000 for a 15-
year term for Red Lion Albia Schools Solar LLC.
Second Craig Johnson
Roll Call Yes: 9 Abstain: 1 (Washburn)
Motion approved.

Energy Infrastructure Revolving Loan Program Loan Application Request – Red Lion Dallas Center Solar LLC – Attachment I
Stephanie Weisenbach explained the Red Lion Dallas Center Solar LLC loan  request of $323,000 for a 15-year term. We did work with our staff in the underwriting area to review the cash flows for these as well. This project will be executing a power purchase agreement with the City of Dallas Center. The project will add solar arrays at 10 city-owned facilities, including an integrated solar canopy along the Raccoon River Valley Bike Trail and would also be part of a planned amphitheater and park space for the City. The total project cost is $1,546,000. The electric utility for this project area is MidAmerican Energy. Funding sources are similar structure to the previous ones and they have also assured that the project could move forward without the USDA grant and they would get started on it right away. 

The program purpose and eligibility criteria would be broad-reaching benefits to the state, local community and/or utility ratepayers and also the creative or innovative approach through the solar canopy which would attract 30,000 cyclists per year. The collateral is the same as the last one and similar timeframe as the previous one. After discussion with Board Members, it was determined the amphitheater is not included in the $1.5M, but the loan cost does include the solar canopy on the amphitheater, along the bike trail. 
Motion by Geri Huser moved to approve, based on the above
information.
Motion I move to approve the loan request of $323,000 for a 15-
year term for Red Lion Dallas Center Solar LLC.
Second Debi Durham
Roll Call Yes: 9 Abstain: 1 (Brown)
Motion approved.

Energy Infrastructure Revolving Loan Program Loan Application Request – Red Lion Wapello Schools Solar LLC – Attachment J
Stephanie Weisenbach explained the Red Lion Wapello Schools Solar LLC is a loan request for $584,000 for a 15-year term. This is a project to work with the 10 Wapello Community School District for 678 kW of solar arrays on rooftops of three facilities and a solar canopy carport covering at the elementary school drop off zone. The total project cost is $2,206,000. The electric utility for this project area is Alliant Energy.

The project was initially inspired by a group of fifth and sixth graders in the school’s Lego League where they researched and presented this particular idea along with energy efficiency. There project was actually awarded in a regional competition. The funding sources are structured similar to the previous ones. Again, they are clear that they can move forward if they do not receive the USDA grant and we will get that documentation before disbursement if approved for the program. The purpose and eligibility include broad-reaching benefits related to the school and the Lego League and the overall savings to the school district and the community it serves. The collateral is the same as the other projects, as well as a similar implementation timeframe.

Debi Durham stated this was a great project and she loved that the students were involved.
Motion by Debi Durham
Motion I move to approve the loan request of $584,000 for a 15-
year term for Red Lion Wapello Schools Solar LLC.
Second Jennifer Johnson
Roll Call Yes: 9 Abstain: 1 (Kouba)
Motion approved.

Energy Infrastructure Revolving Loan Program Loan Application Request – Red Lion Creston Schools Solar LLC – Attachment K
Stephanie Weisenbach stated she will briefly go through these last two, which were recommended for denial. The Red Lion Creston Schools Solar LLC—the loan request was quite a bit higher and when the Loan Committee reviewed all the applications, it was preferable to go with the other three and be able to reach more across the State. This amount and the project itself did not score as high for that reason. The electric utility for this project is Alliant Energy. One unique thing they would like to do is integrate battery storage into the solar project at the school and they may continue to try to put the project together, but they were not as confident about moving forward with the project without the REAP grant. 

The Loan Committee recommends denying this application due to recommending approval of other applications with common ownership.

Motion by Debi Durham
Motion I move to deny the loan request of $1,381,000 for a 15-
year term for Red Lion Creston Schools Solar LLC.
Second Craig Just
Roll Call Yes: 9 Abstain: 1 (Kouba)
Motion approved.

Energy Infrastructure Revolving Loan Program Loan Application Request – Red Lion Knoxville Waterworks Solar LLC – Attachment L
Stephanie Weisenbach explained the Red Lion Knoxville Waterworks Solar LLC was a $467,000 request for a 15-year term and the recommendation from the Committee is to deny it, tying back to that common ownership and this one did not score as high. There was not anything particularly innovative or creative about the approach to this one, aside from general benefits and savings anticipated for the Knoxville Waterworks, which is tied to the local community. Chairperson DeJoode stated he will need to abstain on this one so Stuart Anderson took the reigns as Vice Chair.
Motion by Matt Washburn Motion I move to deny the loan request of $467,000 for a 15-year term for Red Lion Knoxville Waterworks Solar LLC. 
Second Debi Durham
Roll Call Yes: 8 Abstain: 2 (DeJoode & Brown)
Motion approved.

Electric Network Disaster Mitigation for Utilities in Rural Communities – Grant Recipient from ISU
Amber Buckingham stated that she expected to introduce Dr. Alice Alipour with Iowa State University, but due to difficulties caused by the ice storm/snowstorm yesterday, she is not able to attend. She will be presenting her work on the “Disaster Mitigation for Utilities” at our May Board meeting.
Geri Huser & Kelsey Brown had to leave the meeting.

Iowa Wastewater and Waste to Energy Research Program – Attachments M & N
Craig Just with the University of Iowa, made a presentation on the “Iowa Wastewater and Waste to Energy Research Program”. 

Other Business
Troy DeJoode turned it over to Brian Selinger to give Energy Office updates.

Energy Center Office Updates
Brian Selinger stated we have some expiring Board terms coming-up on June 30th. Those members include Stuart Anderson, Dan Nickey, Geri Huser and Jennifer Johnson. Naturally, we would love to have you folks continue being on the Board, but we know that is your individual decision and some things have to be vetted through your management. Iowa State University has identified a Board replacement for the seat Gul Kremer held. We are waiting Boards and Commissions approval of that. Private colleges and universities—they are trying to find an applicant to replace Jenae Sikkink. We hope to have a full complement of Board Members by the May Board meeting.

Public Comment Period
No public comments.

Chairperson DeJoode asked for a motion to adjourn the meeting.
Motion by Stuart Anderson
Motion So move to adjourn the meeting.
Second Debi Durham
Voice Vote All ayes in favor. Motion approved.

Adjournment
2:18 p.m.

 Respectfully Submitted,
Betty Hessing, IEC Board Administrator