in Iowa

Fiscal Budgets Iowa state budget and finances Tax policy in Iowa Finance Financial regulation in Iowa Pensions Public pensions in Iowa Pension health in Iowa Civil liberties Affirmative action in Iowa Campaign finance requirements in Iowa Campaign finance requirements for Iowa ballot measures Nonprofit regulation in Iowa Education Charter schools in Iowa Higher education in Iowa Public education in Iowa School choice in Iowa Elections Ballot access Ballot access requirements for political candidates in Iowa Ballot access requirements for political parties in Iowa Political parties in Iowa Ballot access requirements for presidential candidates in Iowa Redistricting in Iowa Voting in Iowa Energy and Environment Energy policy in Iowa Fracking in Iowa Oil and gas extraction on federal land in Iowa Endangered species in Iowa Environmental policy in Iowa Healthcare Healthcare policy in Iowa Medicaid spending in Iowa Effect of the Affordable Care Act in Iowa Immigration Immigration in Iowa

This article does not contain the most recently published data on this subject. If you would like to help our coverage grow, consider donating to Ballotpedia.

Fracking in the U.S.
Energy policy in the U.S.
State fracking policy
State energy policy
Glossary of energy terms

Energy policy involves governmental actions affecting the production, distribution, and consumption of energy in a state. Energy policies are enacted and enforced at the local, state, and federal levels and may change over time. These policies include legislation, regulation, taxes, incentives for energy production or use, standards for energy efficiency, and more. Stakeholders include citizens, politicians, environmental groups, industry groups, and think tanks. A variety of factors can affect the feasibility of federal and state-level energy policies, such as available natural resources, geography, and consumer needs.

This article outlines state-level oil and gas regulations, renewable energy programs, oil and gas production, energy usage, energy and electricity prices, fuel taxes, and utilities in Iowa.

See the tabs below for further information:

1. Policy: This tab provides information about state regulations on energy production and policies related to oil and gas production, fracking, renewable energy generation, energy efficiency, and net metering.
2. Production: This tab provides information about total energy production by energy source in Iowa.
3. Usage: This tab presents information about electricity consumption by energy source.
4. Prices and taxes: This tab presents information about average energy and electricity prices, per capita spending on energy, and fuel taxes.
5. Utilities: This tab presents information about public and private utilities, electricity markets, the types of utilities in Iowa, and the electric reliability organizations in Iowa.
6. Background: This tab provides information about the types of nonrenewable and renewable energy sources produced and used in the United States, an energy profile of Iowa, a state profile of Iowa from the Almanac of American Politics (2016), and economic indicators in the state, such as median income.

Policy

State regulations

The Iowa Department of Natural Resources is responsible for laws and regulations covering oil, natural gas, and mineral exploration and production in the state. State rules require operators to obtain a state-issued drilling permit. The state's rules and regulations are found in the Code of Iowa Chapter 458A and the Iowa Administrative Code Chapter 51.^[1]

Fracking

See also: Fracking in Iowa

According to the U.S. Energy Information Administration, no fracking occurred in Iowa as of 2015.^[2]

Renewable energy policies

States have implemented funding and financial incentive programs to subsidize or otherwise increase investment in renewable energy resources such as wind, solar, and hydroelectric power. These programs include renewable portfolio standards, grants, rebate programs, tax incentives, loans, performance-based incentives, and more. The aim of the policies generally involves reducing the cost of renewable energy production for consumers, reducing regulatory compliance costs, reducing investment risks involving renewable energy, and/or increasing the adoption of renewable energy sources by individuals and businesses.^[3]

Renewable Portfolio Standard

See also: Renewable Portfolio Standard

A Renewable Portfolio Standard (RPS), also known as a renewable electricity standard, is a mandate intended to increase the amount of renewable energy production and use. Under these standards, a utility company can be required by a state to have a certain percentage of its electricity come from certain renewable energy resources. In addition, states may give tax credits to utility companies to fulfill these requirements.^[4][5]

As of February 2017, Iowa was one of 30 states with a Renewable Portfolio Standard. Iowa enacted the first statewide renewable portfolio standard in 1983. The standard requires the state's two investor-owned utilities—MidAmerican Energy and Alliant Energy Interstate Power and Light—to own or contract for a total of 105 megawatts (MW) of electricity from renewable energy sources. Each utility must meet the standard either by owning renewable energy facilities in the state or contract for the purchase of renewable energy facilities found in the utility's service territory.^[6][7]

Grant programs

States, nonprofit organizations, and/or private utilities may operate grant programs for renewable energy. These programs may include state or private funding for energy installation costs, research and development, infrastructure and business development, system testing, and renewable energy feasibility studies (studies that look into the potential for renewable energy use in specific areas). Grants can be provided with or without requiring a recipient to match the grant. Additional incentives, such as lower interest loans, may be included with a grant.^[3]

As of March 2015, Iowa was one of 26 states that did not have state-run, utility-run, or locally run grant programs for renewable energy. See the map below for grant programs by state.^[3]

States with grant programs for renewable energy as of March 2015 (Source: Environmental Protection Agency)

Loan programs

Loan programs may be used to offer lower interest loans or other financing options to individuals and businesses to reduce the upfront costs of purchasing and installing renewable energy technologies. Loan programs may include programs that use payments from earlier borrowers to provide loans for new borrowers, programs in which building owners reduce their energy consumption to pay their upfront costs for renewable energy technologies, and programs that allow individuals with a higher debt-to-income ratio to purchase homes that use less energy, among others.^[3]

As of March 2015, Iowa was one of 26 states that did not have state-run, utility-run, or locally run grant programs for renewable energy. ^[3]

A complete list of state, local, and private incentive, loan, grant, and assistance programs for renewable energy and energy efficiency in Iowa can be found here.

See the map below for renewable energy loan programs by state.

States with loan programs for renewable energy as of March 2015 (Source: Environmental Protection Agency (EPA)

Energy efficiency regulations

As of February 2017, Iowa required new residential and commercial buildings to meet energy efficiency standards. All residential and commercial buildings must meet standards for heating, ventilating, air conditioning, water heating, and lighting based on the 2006 International Energy Conservation Code. In 2014, the state adopted the 2012 International Energy Conservation Code, which can be accessed here.^[6][8]

Net metering

Net metering is a billing system in which customers who generate their own electricity, usually using renewable sources (such as solar panels) are able to sell their excess electricity back to the electric grid, which is an interconnected network that is used to deliver electricity. This requires electricity to be able to flow both to and from a consumer.^[9][10][11]

As of October 2016, Iowa was one of 41 states with a statewide net metering policy. The Iowa Utilities Board enforces a net metering rule for customers that generate electricity from renewable energy sources from the state's two investor-owned utilities—MidAmerican Energy and Interstate Power and Light.^[12]

For a complete list of net metering programs by state, click here.^[6][13]

Recent legislation

The following is a list of recent energy policy bills that have been introduced in or passed by the Iowa State Legislature. To learn more about each of these bills, click the bill title. This information is provided by BillTrack50 and LegiScan.

Note: Due to the nature of the sorting process used to generate this list, some results may not be relevant to the topic. If no bills are displayed below, no legislation pertaining to this topic has been introduced in the legislature recently.

Ballot measures

Energy policy ballot measures

See also: Energy on the ballot and List of Iowa ballot measures

Ballotpedia has not covered any ballot measures relating to state and local energy policy in Iowa.

Utility policy ballot measures

See also: Local utility tax and fees on the ballot

Ballotpedia has not covered any ballot measures relating to local utility tax and fees in Iowa.

Production

The sections below include statistics on total energy production in Iowa, oil and natural gas production in Iowa, oil and gas production in Iowa over time (2004-2014), and oil and gas production on federal land, including the amount of federal land leased in Iowa for production.

Total energy production

The table below provides information regarding energy production in Iowa in British thermal units (Btu). A British thermal unit is used to measure the heat contained in different fuels. The U.S. Department of Energy defines a Btu as "the quantity of heat required to raise the temperature of 1 pound of liquid water by 1 degree Fahrenheit." Fuels are discussed in terms of Btu to compare fuels with different energy content and prices. For example, one gallon of gasoline equals 120,524 Btu.^[14]

Nonrenewable energy production

The table below provides information regarding nonrenewable energy production in Iowa. For coal data, the phrase productive capacity refers to the maximum amount of coal that could be expected to be produced in 2014. The natural gas and crude oil production data refer to the amounts of natural gas and crude oil produced in December 2014 and April 2016, respectively.^[2][15]

Oil and gas production (2004-2014)

Note: This section provides information about oil and gas production on private and state-owned lands. Information on oil and gas production on federal lands is accessible here.

According to the U.S. Energy Information Administration, there were no proven crude oil or natural gas reserves in Iowa as of 2015. Thus, the state had no oil or gas production.^[2]

Energy usage

The section below includes statistics on electricity consumption in the state by energy type (in 2014).

Consumption

The table below provides information about energy consumption by source in Iowa in 2014. Information from select surrounding states is provided for comparison.^[2]

Prices and taxes

The sections below include information on energy prices and spending in Iowa, fuel taxes and state taxes in Iowa and in neighboring states, and an overview of the federal tax on gasoline.

Energy prices

The price of electricity is affected by supply and demand. The supply of electricity is affected by fuel prices, environmental and energy regulations, power plant capacity, weather, and other factors. Demand for electricity also affects the price. Because electricity cannot be stored for long periods of time, it must be produced and used when it is needed. As demand for electricity increases, the price also generally increases.^[16][17]

The table below provides information about energy prices in Iowa as of April 2016. Information from select surrounding states is provided for comparison.^[2]

Electricity prices can vary depending on the type of consumer; consumer categories include residential, commercial, industrial, and in some cases, transportation. The rate-making process is both political and economic. The table below presents information about electricity prices by consumer type in Iowa in April 2016. Information from select surrounding states is provided for comparison.

Energy spending

The table below provides information about energy spending in Iowa as of 2014. Information from select surrounding states is provided for comparison.

Fuel taxes

Click to enlarge.

Revenue collected by federal, state, and local governments from fuel taxes is usually used to fund transportation infrastructure such as roads and bridges. Some states may charge an excise tax based on how much gas or diesel is purchased. Some states may charge retail tax based on the average price of gas over a certain period. Additionally, some states may charge an environmental tax to be used for environmental projects. The Tax Foundation, which created the map to the right, used data from the American Petroleum Institute, which converted each state's different tax structure into cents per gallon to compare each state's gas taxes. In 2016, gas taxes accounted for 23 percent of the price of gasoline. Crude oil accounted for 40 percent of the price of gasoline, refining accounted for 24 percent of the price, and distribution and marketing accounted for 13 percent of the remainder.^[18][19]

The table below provides information about state fuel taxes by type (excluding the federal gas taxes) in Iowa as of January 2016. As of January 2016, Iowa levied a 32 cent state gasoline tax and a 33.5 cent state diesel tax. Iowa ranked 14th highest in total gasoline taxes (federal and state) and 13th highest in total diesel fuel taxes as of January 2016.^[20][21]

Federal tax

The first federal tax on gasoline was proposed by Secretary of the Treasury Ogden L. Mills under President Herbert Hoover (R) as a revenue generating measure to balance the budget during the Great Depression. A 1-cent tax per gallon of imported gasoline and fuel oil was passed as part of the Revenue Act of 1932 and signed by President Franklin D. Roosevelt (D). The 1-cent tax continued until 1951 when the tax was increased to 2 cents in part to raise revenue during the Korean War. In 1956, the tax was raised to 3 cents to fund the Interstate Highway System. During this time, the Highway Trust Fund was created as a means to fund highway construction. Since 1956, there have been increases to the tax. As of April 2016, the gas tax was last raised by President Bill Clinton (D) in 1993 to 18.4 cents per gallon.^[22]

Utilities

The sections below include general information on utilities, an overview of utilities and electricity markets, information on the types of utilities in Iowa, an overview of electricity reliability organizations (EROs), and the EROs that oversee electricity in Iowa.

Background

Utilities are firms that own and/or operate facilities to generate, transmit, and/or distribute electricity, gas, and/or water to the public. Electric utilities are commercial entities that own and operate facilities to generate, transmit, and distribute electricity to the public and/or the industrial sector. State and local regulators oversee transmission and distribution charges. Local utilities read electric meters and bill individuals or businesses, generally on a monthly basis.^[23][24]

Utilities are defined differently in each state and in federal legislation. Two general types of utilities are private and public utilities. Private utilities, commonly known as investor-owned utilities, provide stocks to investors and sell bonds. These utilities are regulated by state regulatory agencies. State agencies are also responsible for setting retail rates charged by investor-owned utilities, overseeing utility infrastructure, and ensuring that investor-owned utilities respond to customer service demands. Public utilities include government or municipally owned utilities. Another type of utility is an electric cooperative. Cooperatives are nonprofit businesses voluntarily owned and managed by the individuals and businesses that use their services. They are commonly used in rural areas that do not have access to a larger state or region-wide electric grid.^[24]

Electricity markets

Electricity markets in each state are defined as regulated or deregulated. A regulated market includes utilities that own and manage the power plants that generate the electricity, the electricity transmission lines, and the distribution equipment (such as wires and electric poles). In addition, the utilities rates are approved and regulated by local and state agencies. A deregulated market requires utilities to divest ownership in the generation and transmission of electricity. In this market, utilities oversee the interconnection from a meter at a household or business to the power grid and is responsible for billing ratepayers.^[25][26]

Depending on the state and/or area, public utilities may provide most or all energy services to homes and businesses, or a state may allow other private electricity providers to transmit and distribute electricity in addition to other utilities. For example, one type of private provider is a retail energy provider, which sells electricity in areas with retail competition. The provider purchases wholesale electricity and the delivery services (such as transmission lines) and can price electricity to particular consumers.^[25][26]

As of February 2017, Iowa was one of 40 states with a regulated electricity market. The Iowa Utilities Board is responsible for regulating the state's two investor-owned utilities—MidAmerican Energy Company and Interstate Power and Light. The board sets rates and services for both utilities. Publicly owned municipal utilities and electric cooperatives are primarily regulated for service, not rates. As of February 2017, Iowa had 182 electric utilities, including the two investor-owned utilities, 136 municipal utilities, and 44 electric cooperatives. The utilities served approximately 1.59 million customers as of February 2017.^[27][28]

Electric reliability organizations

The Energy Policy Act of 2005 required the Federal Energy Regulatory Commission (FERC) to designate an electric reliability organization (ERO) for the United States. An ERO oversees the reliability of a nation's electric grid. In 2006, FERC granted authority to the North American Electric Reliability Corporation (NERC) to develop and enforce grid reliability standards for the United States. NERC, a self-regulated nonprofit corporation, is authorized to enforce grid reliability standards for all users, owners, and operators of the U.S. electrical system.^[29]

NERC works with eight regional reliability organizations to oversee the U.S. electrical system. These organizations, known as regional entities, are composed of officials from investor-owned utilities, federal power agencies, electric cooperatives, and state and municipal utilities. Regional entities enforce NERC and regional reliability standards. Further, they forecast electricity demand and coordinate operations with other regional entities.^[30]

Iowa EROs

As of February 2017, the Midwest Reliability Organization (MRO) was the NERC-affiliated corporation that oversees electricity in Iowa. The MRO conducts studies and assessments of the electricity grid, conducts long-term planning, and develops regional standards for electricity reliability.^[31]

Background

The sections below include an overview of the types of renewable and nonrenewable energy produced and consumed in the United States, an energy profile of Iowa (from the U.S. Energy Information Administration), a general profile of Iowa (from the 2016 edition of the Almanac of American Politics), and various economic indicators in Iowa.

Background on energy resources

Nonrenewable energy sources, such as coal, oil, and natural gas (sometimes known as fossil fuels), and renewable sources, such as hydropower, wind, biofuels, and solar energy, are produced in each state, though at different levels depending on a state's geography, energy consumption, and the raw materials available in a particular state. For example, several states do not have coal, oil, and/or natural gas resources. States that lack these resources import these fuels.^[32]

According to the U.S. Department of Energy, oil, coal, and natural gas comprise the majority of the resources used to generate power in the United States. In 2014, the top five energy-producing states were the top five fossil fuel-producing states—Texas, Wyoming, Pennsylvania, Louisiana, and West Virginia. These states' fossil fuel production accounted for approximately 42 percent of U.S. energy production in 2014. States with fewer coal, oil, and natural gas resources generally consume less energy. In 2014, the bottom five energy-producing states—Rhode Island, Delaware, Hawaii, Nevada, and New Hampshire—produced 0.2 percent of U.S. energy and consumed approximately 2 percent of total U.S. energy.^[32]

The production of biofuels (liquid fuels created from plant or plant-derived materials) is generally concentrated in the Midwest—states such as Illinois, Iowa, Nebraska, and South Dakota) given the region's agricultural production of crops such as corn, which is used to make ethanol, a biofuel that can be blended with gasoline and used as a transportation fuel.^[32]

Other renewable sources are used to generate power in the states include hydroelectric power, which accounted for about half of all renewable energy production in the United States in 2014.^[32]

Iowa energy profile

As of 2014, Iowa ranked fifth in per capita energy consumption and was above the national median in total energy consumption. In addition, Iowa was the only non-petroleum-producing state that ranked in the top five energy-consuming states. In 2014, approximately half of the state's end-use energy consumption occurred in the industrial sector, which includes agriculture, biofuels production, machinery manufacturing, and chemical production. The commercial and residential sectors accounted for less than 33 percent of the state's end-use energy consumption.^[2]

Iowa does not produce coal, petroleum, or natural gas. However, as of 2014 the state had recoverable coal reserves. In addition, the state has no oil refineries. Pipelines deliver crude oil and natural gas to the state. Natural gas is delivered to Iowa from Canada through pipelines crossing North Dakota, Minnesota, and South Dakota. More than 50 percent of the state's natural gas consumption occurred in the industrial sector, while approximately 50 percent of Iowa's petroleum consumption was in the form of motor vehicle gasoline. Nearly all of Iowa's coal is delivered by railroad to the state's coal-fired power plants.^[2]

As of 2016, Iowa generated approximately 33 percent of its net electricity generation from wind energy. This was the highest percentage of any state, though Texas generated a greater amount of electricity from wind power. Approximately 2 percent of Iowa's electricity generation came from hydroelectric power and biomass.^[2]

State profile

Presidential voting pattern

See also: Presidential voting trends in Iowa

Iowa voted for the Democratic candidate in three out of the six presidential elections between 2000 and 2020.

Pivot Counties (2016)

Ballotpedia identified 206 counties that voted for Donald Trump (R) in 2016 after voting for Barack Obama (D) in 2008 and 2012. Collectively, Trump won these Pivot Counties by more than 580,000 votes. Of these 206 counties, 31 are located in Iowa, accounting for 15.04 percent of the total pivot counties.^[33]

Pivot Counties (2020)

In 2020, Ballotpedia re-examined the 206 Pivot Counties to view their voting patterns following that year's presidential election. Ballotpedia defined those won by Trump won as Retained Pivot Counties and those won by Joe Biden (D) as Boomerang Pivot Counties. Nationwide, there were 181 Retained Pivot Counties and 25 Boomerang Pivot Counties. Iowa had 31 Retained Pivot Counties, 17.13 percent of all Retained Pivot Counties.

More Iowa coverage on Ballotpedia

• Elections in Iowa
• United States congressional delegations from Iowa
• Public policy in Iowa
• Influencers in Iowa
• Iowa fact checks
• More...

Economic indicators

See also: Economic indicators by state

Iowa's GDP increased by 0.4 percent in 2014. Click the image to view a larger version.

Broadly defined, a healthy economy is typically one that has a "stable and strong rate of economic growth" (gross state product, in this case) and low unemployment, among many other factors. The economic health of a state can significantly affect its healthcare costs, insurance coverage, access to care, and citizens' physical and mental health. For instance, during economic downturns, employers may reduce insurance coverage for employees, while those who are laid off may lose coverage altogether. Individuals also tend to spend less on non-urgent care or postpone visits to the doctor when times are hard. These changes in turn may affect the decisions made by policymakers as they react to shifts in the industry. Additionally, a person's socioeconomic status has profound effects on their access to care and the quality of care received.^[34][35][36]

Iowa had the smallest percentage of residents that earned incomes at least 400 percent above the federal poverty level in 2013. The state also had the smallest percentage of residents, 11 percent, that earned incomes below the federal poverty level. The state's median annual household income between 2011 and 2013 was $53,364. Its unemployment rate increased slightly between September 2013 and September 2014 to 4.6 percent. Each of its other states saw a decline in their unemployment rates.^{[37][38][39][40]}

Note: Gross state product (GSP) on its own is not necessarily an indicator of economic health; GSP may also be influenced by state population size. Many factors must be looked at together to assess state economic health.

See also

• Energy policy in the U.S.
• Fracking in Iowa
• Net metering
• Renewable Portfolio Standard
• Environmental policy in Iowa

Recent news

The link below is to the most recent stories in a Google news search for the terms Iowa energy policy. These results are automatically generated from Google. Ballotpedia does not curate or endorse these articles.

Footnotes

	v • e State of Iowa Des Moines (capital)
Elections	What's on my ballot? | Elections in 2024 | How to vote | How to run for office | Ballot measures
Government	Who represents me? | U.S. President | U.S. Congress | Federal courts | State executives | State legislature | State and local courts | Counties | Cities | School districts | Public policy