Text: HF02561                           Text: HF02563
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Bills and Amendments: General Index     Bill History: General Index



House File 2562

Partial Bill History

Bill Text

PAG LIN
  1  1    Section 1.  Section 7E.5, subsection 1, paragraph r, Code
  1  2 2001, is amended to read as follows:
  1  3    r.  The department of natural resources, created in section
  1  4 455A.2, which has primary responsibility for state parks and
  1  5 forests, protecting the environment, and managing energy,
  1  6 fish, wildlife, and land and water resources.
  1  7    Sec. 2.  Section 28D.3, subsection 4, Code 2001, is amended
  1  8 to read as follows:
  1  9    4.  Persons employed by the energy and geological resources
  1 10 division of the department of natural resources under this
  1 11 chapter are not subject to the twenty-four-month time
  1 12 limitation specified in subsection 2.
  1 13    Sec. 3.  Section 72.5, subsection 2, Code 2001, is amended
  1 14 to read as follows:
  1 15    2.  In connection with development of a statewide building
  1 16 energy efficiency rating system, pursuant to section 473.40,
  1 17 the director of the department of natural resources state
  1 18 building code administrator, in consultation with the
  1 19 department of management, state building code director, and
  1 20 the state fire marshal, shall develop standards and methods to
  1 21 evaluate design development documents and construction
  1 22 documents based upon the energy efficiency rating system for
  1 23 public buildings, and other life cycle cost factors, to
  1 24 facilitate fair and uniform comparisons between design
  1 25 proposals and informed decision making by public bodies.
  1 26    Sec. 4.  Section 103A.8, subsection 7, Code 2001, is
  1 27 amended to read as follows:
  1 28    7.  Limit the application of thermal efficiency standards
  1 29 for energy conservation to new construction which will
  1 30 incorporate a heating or cooling system.  Air exchange fans
  1 31 designed to provide ventilation shall not be considered a
  1 32 cooling system.  The commissioner shall exempt any new
  1 33 construction from thermal efficiency standards for energy
  1 34 conservation if the commissioner determines that the standards
  1 35 are unreasonable as they apply to a particular building or
  2  1 class of buildings including farm buildings for livestock use.
  2  2 Lighting efficiency standards shall recognize variations in
  2  3 lighting intensities required for the various tasks performed
  2  4 within the building.  The commissioner shall consult with the
  2  5 energy and geological resources division of the department of
  2  6 natural resources regarding standards for energy conservation
  2  7 prior to the adoption of the standards.  However, the
  2  8 standards shall be consistent with section 103A.8A.
  2  9    Sec. 5.  Section 103A.8A, Code 2001, is amended to read as
  2 10 follows:
  2 11    103A.8A  MINIMUM ENERGY EFFICIENCY STANDARD.
  2 12    The state building code commissioner shall adopt as a part
  2 13 of the state building code a requirement that new single-
  2 14 family or two-family residential construction shall meet an
  2 15 established minimum energy efficiency standard.  The standard
  2 16 shall be stated in terms of the home heating index developed
  2 17 by the physics department at Iowa state university of science
  2 18 and technology.  The minimum standard shall be the average
  2 19 energy consumption of new single-family or two-family
  2 20 residential construction as determined by a survey conducted
  2 21 by the energy and geological resources division of the
  2 22 department of natural resources of the average actual energy
  2 23 consumption, as expressed in terms of the home heating index.
  2 24 The minimum standard shall only apply to single-family or two-
  2 25 family residential construction commenced after the adoption
  2 26 of the standard.
  2 27    Sec. 6.  Section 161B.1, subsection 2, paragraph a, Code
  2 28 2001, is amended to read as follows:
  2 29    a.  The energy and geological resources division of the
  2 30 department of natural resources.
  2 31    Sec. 7.  Section 266.39C, subsection 2, paragraph f, Code
  2 32 2001, is amended by striking the paragraph.
  2 33    Sec. 8.  Section 455A.4, subsection 1, paragraph b, Code
  2 34 2001, is amended to read to read as follows:
  2 35    b.  Provide overall supervision, direction, and
  3  1 coordination of functions to be administered by the
  3  2 administrators under chapters 321G, 455B, 455C, 456A, 456B,
  3  3 457A, 458A, 460A, 461A, 462A, 462B, 464A, 465C, 473, 481A,
  3  4 481B, 483A, 484A, and 484B.
  3  5    Sec. 9.  Section 455A.6, subsection 6, paragraph b, Code
  3  6 2001, is amended to read as follows:
  3  7    b.  Hear appeals in contested cases pursuant to chapter 17A
  3  8 on matters relating to actions taken by the director under
  3  9 chapter 455C, 458A, or 464B, or 473.
  3 10    Sec. 10.  455A.6, subsection 6, paragraph d, Code 2001, is
  3 11 amended to read as follows:
  3 12    d.  Approve the budget request prepared by the director for
  3 13 the programs authorized by chapters 455B, 455C, 455E, and
  3 14 455F.  The commission shall approve the budget request
  3 15 prepared by the director for programs administered by the
  3 16 energy and geological resources division, the administrative
  3 17 services division, and the office of the director, as provided
  3 18 in section 455A.7.  The commission may increase, decrease, or
  3 19 strike any item within the department budget request for the
  3 20 specified programs before granting approval.
  3 21    Sec. 11.  Section 455A.7, subsection 1, paragraph d, Code
  3 22 Supplement 2001, is amended to read as follows:
  3 23    d.  Energy and geological Geological resources division
  3 24 which is responsible for programs relating to energy,
  3 25 geological survey, and oil and gas production.
  3 26    Sec. 12.  Section 473.1, Code 2001, is amended to read as
  3 27 follows:
  3 28    473.1  DEFINITIONS.
  3 29    As used in this chapter, unless the context otherwise
  3 30 requires:
  3 31    1.  "Commission" means the environmental protection
  3 32 commission of the department.  "Board" or "utilities board"
  3 33 means the utilities board within the utilities division of the
  3 34 department of commerce.
  3 35    2.  "Department" means the department of natural resources
  4  1 created under section 455A.2.
  4  2    3.  "Director" means the director of the department or a
  4  3 designee.
  4  4    4. 2.  "Energy" or "energy sources" means gasoline, fuel
  4  5 oil, natural gas, propane, coal, special fuels and
  4  6 electricity.
  4  7    5. 3.  "Supplier" means any person engaged in the business
  4  8 of selling, importing, storing or generating energy sources in
  4  9 Iowa.
  4 10    Sec. 13.  Section 473.7, Code 2001, is amended to read as
  4 11 follows:
  4 12    473.7  DUTIES OF THE DEPARTMENT BOARD.
  4 13    It is the intent of the general assembly that the utilities
  4 14 board be in the leadership position on energy issues for the
  4 15 state of Iowa.  The board is invested with the mantle of
  4 16 responsibility for all energy issues including but not limited
  4 17 to monitoring current status of energy reserves and projects,
  4 18 planning future opportunities for needed growth and new
  4 19 technologies, and increasing statewide awareness for present
  4 20 and future concerns regarding energy issues affecting Iowa's
  4 21 residences and businesses.  This responsibility is independent
  4 22 of the board's rate regulation role for certain utilities.
  4 23    In accomplishing its mission, the board shall communicate
  4 24 to the citizens of the state, energy providers, and the
  4 25 general assembly on the status of energy issues through
  4 26 routine reporting and other regular communication, and shall
  4 27 promptly inform the state of any major concerns that arise.
  4 28    The department board shall:
  4 29    1.  Deliver to the general assembly by January 15, 1990
  4 30 every five years beginning in 2005, a plan for the
  4 31 development, management, and efficient utilization of all
  4 32 energy resources in the state.  The plan shall evaluate
  4 33 existing energy utilization with regard to energy efficiency
  4 34 and shall evaluate the future energy needs of the state.  The
  4 35 plan shall include but is not limited to the following
  5  1 elements:
  5  2    a.  The historical use and distribution of energy in Iowa.
  5  3    b.  The growth rate of energy consumption in Iowa.
  5  4    c.  A projection of Iowa's energy needs at a minimum of ten
  5  5 years into the future.
  5  6    a.  The availability of energy for residential and current
  5  7 business usage, and opportunities for business development.
  5  8 Projections shall extend for at least ten years into the
  5  9 future.
  5 10    b.  Opportunities for selling energy to neighboring states.
  5 11    c.  Energy prices in Iowa and competitiveness with other
  5 12 midwestern states.
  5 13    d.  Reliability of energy distributed to residences and
  5 14 businesses in Iowa.  A measurement of outages and reduced
  5 15 voltages shall be included in the plan.
  5 16    e.  An analysis of any outstanding safety issues.
  5 17    f.  The status of security at energy facilities in Iowa,
  5 18 including any special vulnerability to threats or attacks.
  5 19    d. g.  The impact of meeting Iowa's energy needs on the
  5 20 economy of the state.
  5 21    e. h.  The impact of meeting Iowa's energy needs on the
  5 22 environment of the state.
  5 23    f. i.  An evaluation of alternative sources and uses of
  5 24 energy.
  5 25    g. j.  Legislative recommendations that may be necessary as
  5 26 a basis for a state policy for the development and efficient
  5 27 utilization of energy resources.
  5 28    h.  An evaluation of the ability of existing laws and
  5 29 regulations surrounding the utilization of energy resources.
  5 30    The department board shall develop the plan with the
  5 31 assistance of, and in consultation with, representatives of
  5 32 the energy industry, economic interests, the public, and other
  5 33 interested parties.  The department board shall submit a
  5 34 report to the general assembly concerning the status and
  5 35 implementation of the plan on a biennial basis.  The biennial
  6  1 an annual update that shall contain an evaluation of all state
  6  2 energy programs including expected versus actual benefits and
  6  3 forecasts of future energy demand in Iowa.
  6  4    2.  Identify a state facility in the state to be used as a
  6  5 marketing tool to promote energy conservation by providing a
  6  6 showcase for the department to demonstrate energy efficiency.
  6  7    3. 2.  The department shall exchange Exchange information
  6  8 with other states on energy and especially on the allocation
  6  9 of fuel and shall request all information necessary to
  6 10 determine the reasonableness of any reduction of Iowa's fuel
  6 11 allocation.
  6 12    4. 3.  Establish a central depository within the state for
  6 13 energy data.  The central depository shall be located at or
  6 14 accessible through a library which that is a member of an
  6 15 interlibrary loan program to facilitate access to the data and
  6 16 information contained in the central depository.  The
  6 17 department board shall collect data necessary to forecast
  6 18 future energy demands in the state.  The department board may
  6 19 require a supplier to provide information pertaining to the
  6 20 supply, storage, distribution and sale of energy sources in
  6 21 this state.  The information shall be furnished on a periodic
  6 22 basis, shall be of a nature which that directly relates to the
  6 23 supply, storage, distribution and sale of energy sources, and
  6 24 shall not include any records, documents, books or other data
  6 25 which that relate to the financial position of the supplier.
  6 26 Provided the department The board, prior to requiring any
  6 27 supplier to furnish it with such information, shall make every
  6 28 reasonable effort to determine if the same information is
  6 29 available from any other governmental source.  If it finds
  6 30 such information is available, the department board shall not
  6 31 require submission of the same information from a supplier.
  6 32 Notwithstanding the provisions of chapter 22, information and
  6 33 reports obtained under this section shall be confidential
  6 34 except when used for statistical purposes without identifying
  6 35 a specific supplier and when release of the information will
  7  1 not give an advantage to competitors and serves a public
  7  2 purpose.  The department board shall use this data to conduct
  7  3 energy forecasts which shall be included in the biennial
  7  4 update as required by this section.
  7  5    The department board may subpoena witnesses, administer
  7  6 oaths and require the production of records, books, and
  7  7 documents for examination in order to obtain information
  7  8 required to be submitted under this section.  In case of
  7  9 failure or refusal on the part of any person to comply with a
  7 10 subpoena issued by the department board, or in case of the
  7 11 refusal of any witness to testify as to any matter regarding
  7 12 which the witness may be interrogated under this chapter, the
  7 13 district court, upon the application of the department board,
  7 14 may order the person to show cause why the person should not
  7 15 be held in contempt for failure to testify or comply with a
  7 16 subpoena, and may order the person to produce the records,
  7 17 books, and documents for examination, and to give testimony.
  7 18 The courts may punish for contempt as in the case of
  7 19 disobedience to a like subpoena issued by the court, or for
  7 20 refusal to testify.
  7 21    5. 4.  Develop, recommend, and implement with appropriate
  7 22 agencies public and professional education and communication
  7 23 programs in energy efficiency, energy conservation, and
  7 24 conversion to alternative sources of energy.
  7 25    6. 5.  When necessary to carry out its duties under this
  7 26 chapter, enter into contracts with state agencies and other
  7 27 qualified contractors.
  7 28    7. 6.  Receive and accept grants made available for
  7 29 programs relating to duties of the department board under this
  7 30 chapter.
  7 31    8. 7.  Promulgate Adopt rules necessary to carry out the
  7 32 provisions of this chapter, subject to review in accordance
  7 33 with chapter 17A.  Rules promulgated by the governor pursuant
  7 34 to a proclamation issued under the provisions of section 473.8
  7 35 shall not be subject to review or a public hearing as required
  8  1 in chapter 17A; however, agency rules for implementation of
  8  2 the governor's proclamation are subject to the requirements of
  8  3 chapter 17A.
  8  4    9. 8.  Examine and determine whether additional state
  8  5 regulatory authority is necessary to protect the public
  8  6 interest and to promote the effective development, utilization
  8  7 and conservation of energy resources.  If the department board
  8  8 finds that additional regulatory authority is necessary, the
  8  9 department board shall submit recommendations to the general
  8 10 assembly concerning the nature and extent of such regulatory
  8 11 authority and which state agency should be assigned such
  8 12 regulatory responsibilities.
  8 13    10. 9.  Develop and assist in the implementation of public
  8 14 education and communications programs in energy development,
  8 15 use and conservation, in co-operation with the department of
  8 16 education, the state university extension services and other
  8 17 public or private agencies and organizations as deemed
  8 18 appropriate by the department board.
  8 19    11. 10.  Develop a program to annually give public
  8 20 recognition to innovative methods of energy conservation.
  8 21    12. 11.  Administer and coordinate federal funds for energy
  8 22 conservation programs including, but not limited to, the
  8 23 institutional conservation program, state energy conservation
  8 24 program, and energy extension service program, and related
  8 25 programs which provide energy management and conservation
  8 26 assistance to schools, hospitals, health-care facilities,
  8 27 communities, and the general public.
  8 28    13. 12.  Administer and coordinate the state building
  8 29 energy management program including projects funded through
  8 30 private financing.
  8 31    14.  Perform monthly fuel surveys which establish a
  8 32 statistical average of motor fuel prices for various motor
  8 33 fuels provided throughout the state.  Additionally, the
  8 34 department shall perform monthly fuel surveys in cities with
  8 35 populations of over fifty thousand which establish a
  9  1 statistical average of motor fuel prices for various motor
  9  2 fuels provided in those individual cities.  The survey results
  9  3 shall be publicized in a monthly press release issued by the
  9  4 department.
  9  5    15.  Conduct a study on activities related to energy
  9  6 production and use which contribute to global climate change
  9  7 and the depletion of the stratospheric ozone layer.  The study
  9  8 shall identify the types and relative contributions of these
  9  9 activities in Iowa.  The department shall develop a strategy
  9 10 to reduce emissions from activities identified as having an
  9 11 adverse impact on the global climate and the stratospheric
  9 12 ozone layer.  The department shall submit a report containing
  9 13 its findings and recommendations to the governor and general
  9 14 assembly by January 1, 1992.
  9 15    Sec. 14.  NEW SECTION.  473.7A  DUTIES OF DEPARTMENT OF
  9 16 AGRICULTURE AND LAND STEWARDSHIP.
  9 17    The department of agriculture and land stewardship shall
  9 18 perform monthly fuel surveys that establish a statistical
  9 19 average of motor fuel prices for various motor fuels provided
  9 20 throughout the state.  Additionally, the department shall
  9 21 perform monthly fuel surveys in cities with populations of
  9 22 over fifty thousand which establish a statistical average of
  9 23 motor fuel prices for various motor fuels provided in those
  9 24 individual cities.  The survey results shall be publicized in
  9 25 a monthly press release issued by the department.  The
  9 26 department shall exchange information with other states and
  9 27 especially on the allocation of fuel and shall request all
  9 28 information necessary to determine the reasonableness of any
  9 29 reduction of Iowa's fuel allocation.
  9 30    Sec. 15.  Section 473.8, unnumbered paragraph 1, Code
  9 31 Supplement 2001, is amended to read as follows:
  9 32    If the department emergency management division of the
  9 33 department of public defense, by resolution, determines the
  9 34 health, safety, or welfare of the people of this state is
  9 35 threatened by an actual or impending acute shortage of usable
 10  1 energy, it shall transmit the resolution to the governor
 10  2 together with its recommendation on the declaration of an
 10  3 emergency by the governor and recommended actions, if any, to
 10  4 be undertaken.  Within thirty days of the date of the
 10  5 resolution, the governor may issue a proclamation of emergency
 10  6 which shall be filed with the secretary of state.  The
 10  7 proclamation shall state the facts relied upon and the reasons
 10  8 for the proclamation.
 10  9    Sec. 16.  Section 473.10, Code 2001, is amended to read as
 10 10 follows:
 10 11    473.10  RESERVE REQUIRED.
 10 12    1.  If the department emergency management division of the
 10 13 department of public defense or the governor finds that an
 10 14 impending or actual shortage or distribution imbalance of
 10 15 liquid fossil fuels may cause hardship or pose a threat to the
 10 16 health and economic well-being of the people of the state or a
 10 17 significant segment of the state's population, the department
 10 18 division or the governor may authorize the director
 10 19 administrator of the emergency management division to operate
 10 20 a liquid fossil fuel set-aside program as provided in
 10 21 subsection 2.
 10 22    2.  Upon authorization by the department emergency
 10 23 management division of the department of public defense or the
 10 24 governor, the director administrator of the emergency
 10 25 management division may require a prime supplier to reserve a
 10 26 specified fraction of the prime supplier's projected total
 10 27 monthly release of liquid fossil fuel in Iowa.  The director
 10 28 administrator may release any or all of the fuel required to
 10 29 be reserved by a prime supplier to end-users or to
 10 30 distributors for release through normal retail distribution
 10 31 channels to retail customers.  However, the specified fraction
 10 32 required to be reserved shall not exceed three percent for
 10 33 propane, aviation fuel and residual oil, and five percent for
 10 34 motor gasoline, heating oil, and diesel oil.
 10 35    3.  The department emergency management division of the
 11  1 department of public defense shall periodically review and may
 11  2 terminate the operation of a set-aside program authorized by
 11  3 the department division under subsection 1 when the department
 11  4 division finds that the conditions that prompted the
 11  5 authorization no longer exist.  The governor shall
 11  6 periodically review and may terminate the operation of a set-
 11  7 aside program authorized by the governor under subsection 1
 11  8 when the governor finds that the conditions that prompted the
 11  9 authorization no longer exist.
 11 10    4.  The director administrator of the emergency management
 11 11 division shall adopt rules to implement administer this
 11 12 section.
 11 13    Sec. 17.  Section 473.11, subsection 1, paragraph f, Code
 11 14 2001, is amended to read as follows:
 11 15    f.  The moneys deposited under section 473.16 in the
 11 16 general fund of the state shall be used for research and
 11 17 development of selected projects to improve Iowa's energy
 11 18 independence by developing improved methods of energy
 11 19 efficiency, or by increased development and use of Iowa's
 11 20 renewable nonresource-depleting energy resources.  The moneys
 11 21 credited to the general fund of the state under section
 11 22 556.18, subsection 3, shall be used for energy conservation
 11 23 and alternative energy resource projects.  The projects shall
 11 24 be selected by the director and administered by the department
 11 25 board.  Selection criteria for funded projects shall include
 11 26 consideration of indirect restitution to those persons in the
 11 27 state in the utility customer classes and the utility service
 11 28 territories affected by unclaimed utility refunds or deposits.
 11 29    Moneys deposited into the general fund of the state under
 11 30 sections 473.16, 476.51, and 556.18, subsection 3, are subject
 11 31 to the requirements of section 8.60.
 11 32    Sec. 18.  Section 473.11, subsection 3, unnumbered
 11 33 paragraph 1, Code 2001, is amended to read as follows:
 11 34    An energy fund disbursement council is established.  The
 11 35 council shall be composed of the governor or the governor's
 12  1 designee, the director of the department of management, who
 12  2 shall serve as the council's chairperson, the administrator of
 12  3 the division of community action agencies of the department of
 12  4 human rights, the administrator of the energy and geological
 12  5 resources division of the department of natural resources the
 12  6 chairperson of the utilities board, and a designee of the
 12  7 director of transportation, who is knowledgeable in the field
 12  8 of energy conservation.  The council shall include as
 12  9 nonvoting members two members of the senate appointed by the
 12 10 president of the senate, after consultation with the majority
 12 11 leader and the minority leader of the senate, and two members
 12 12 of the house of representatives appointed by the speaker of
 12 13 the house, after consultation with the majority leader and the
 12 14 minority leader of the house.  The legislative members shall
 12 15 be appointed upon the convening and for the period of each
 12 16 general assembly.  Not more than one member from each house
 12 17 shall be of the same political party.  The council shall be
 12 18 staffed by the energy and geological resources division of the
 12 19 department of natural resources board.  The attorney general
 12 20 shall provide legal assistance to the council.
 12 21    Sec. 19.  Section 473.11, subsection 3, paragraph c, Code
 12 22 2001, is amended to read as follows:
 12 23    c.  Work with the energy and geological resources division
 12 24 board in adopting administrative rules necessary to administer
 12 25 expenditures from the trust, encourage applications for grants
 12 26 and loans, review and select proposals for the funding of
 12 27 competitive grants and loans from the energy conservation
 12 28 trust, and evaluate their comparative effectiveness.
 12 29    Sec. 20.  Section 473.11, subsection 3, paragraph f, Code
 12 30 2001, is amended to read as follows:
 12 31    f.  Prepare, in conjunction with the energy and geological
 12 32 resources division board, an annual report to the governor and
 12 33 the general assembly regarding earnings of and expenditures
 12 34 from the energy conservation trust.
 12 35    Sec. 21.  Section 473.11, subsections 4 and 7, Code 2001,
 13  1 are amended to read as follows:
 13  2    4.  The administrator of the energy and geological
 13  3 resources division of the department of natural resources
 13  4 board shall be the administrator of the energy conservation
 13  5 trust.  The administrator shall disburse moneys appropriated
 13  6 by the general assembly from the funds in the trust in
 13  7 accordance with the federal court orders, law and regulation,
 13  8 or settlement conditions applying to the moneys in that fund,
 13  9 and subject to the approval of the energy fund disbursement
 13 10 council if such approval is required.  The council, after
 13 11 consultation with the attorney general, shall immediately
 13 12 approve the disbursement of moneys from the funds in the trust
 13 13 for projects which meet the federal court orders, law and
 13 14 regulations, or settlement conditions which apply to that
 13 15 fund.
 13 16    7.  On June 30, 2003, the energy fund disbursement council
 13 17 established in subsection 3 shall be dissolved.  At that time,
 13 18 the department of natural resources board shall be responsible
 13 19 for the disbursement of any funds either received or remaining
 13 20 in the energy conservation trust.  These disbursements shall
 13 21 be for projects and programs consistent with the allowable
 13 22 uses for the energy conservation trust.  Also, at that time,
 13 23 and annually thereafter, the state department of
 13 24 transportation shall report to the department of natural
 13 25 resources board on the status of the intermodal revolving loan
 13 26 fund established in the state department of transportation.
 13 27 In the fiscal year beginning July 1, 2019, the department of
 13 28 natural resources board shall assume responsibility for funds
 13 29 remaining in the intermodal revolving loan fund and disburse
 13 30 them for energy conservation projects and programs consistent
 13 31 with the allowable uses for the energy conservation trust.
 13 32    Sec. 22.  Section 473.19, unnumbered paragraph 1, Code
 13 33 2001, is amended to read as follows:
 13 34    The energy bank program is established by the department
 13 35 board.  The energy bank program consists of the following
 14  1 forms of assistance for the state, state agencies, political
 14  2 subdivisions of the state, school districts, area education
 14  3 agencies, community colleges, and nonprofit organizations:
 14  4    Sec. 23.  Section 473.20, Code Supplement 2001, is amended
 14  5 to read as follows:
 14  6    473.20  ENERGY LOAN FUND.
 14  7    An energy loan fund is established in the office of the
 14  8 treasurer of state to be administered by the department board.
 14  9    1.  The department board may make loans to the state, state
 14 10 agencies, political subdivisions of the state, school
 14 11 districts, area education agencies, community colleges, and
 14 12 nonprofit organizations for implementation of energy
 14 13 conservation measures identified in a comprehensive
 14 14 engineering analysis.  Loans shall be made for all cost-
 14 15 effective energy management improvements.  For the state,
 14 16 state agencies, political subdivisions of the state, school
 14 17 districts, area education agencies, community colleges, and
 14 18 nonprofit organizations to receive a loan from the fund, the
 14 19 department board shall require completion of an energy
 14 20 management plan including an energy audit and a comprehensive
 14 21 engineering analysis.  The department board shall approve
 14 22 loans made under this section.
 14 23    2.  Cities and counties shall repay the loans from moneys
 14 24 in their debt service funds.  Area education agencies shall
 14 25 repay the loans from any moneys available to them.
 14 26    School districts and community colleges may enter into
 14 27 financing arrangements with the department board or its duly
 14 28 authorized agents or representatives obligating the school
 14 29 district or community college to make payments on the loans
 14 30 beyond the current budget year of the school district or
 14 31 community college.  Chapter 75 shall not be applicable.
 14 32 School districts shall repay the loans from moneys in either
 14 33 their general fund or debt service fund.  Community colleges
 14 34 shall repay the loans from their general fund.  Other entities
 14 35 receiving loans under this section shall repay the loans from
 15  1 any moneys available to them.
 15  2    3.  The department board may accept gifts, federal funds,
 15  3 state appropriations, and other moneys for deposit in the
 15  4 energy loan fund or may fund the energy loan fund in
 15  5 accordance with section 473.20A.
 15  6    4.  For the purpose of this section, "loans" means loans,
 15  7 leases, or alternative financing arrangements.
 15  8    5.  The state, state agencies, political subdivisions of
 15  9 the state, school districts, area education agencies, and
 15 10 community colleges shall design and construct the most energy
 15 11 cost-effective facilities feasible and shall use the financing
 15 12 made available by the department board to cover the
 15 13 incremental costs above minimum building code energy
 15 14 efficiency standards of purchasing energy efficient devices
 15 15 and materials unless other lower cost financing is available.
 15 16 As used in this section, "facility" means a structure that is
 15 17 heated or cooled by a mechanical or electrical system, or any
 15 18 system of physical operation that consumes energy to carry out
 15 19 a process.
 15 20    6.  The department board shall not require the state, state
 15 21 agencies, political subdivisions of the state, school
 15 22 districts, area education agencies, and community colleges to
 15 23 implement a specific energy conservation measure identified in
 15 24 a comprehensive engineering analysis if the entity which
 15 25 prepared the analysis demonstrates to the department board
 15 26 that the facility which is the subject of the energy
 15 27 conservation measure is unlikely to be used or operated for
 15 28 the full period of the expected payback of the energy
 15 29 conservation measure.
 15 30    Sec. 24.  Section 473.20A, Code 2001, is amended to read as
 15 31 follows:
 15 32    473.20A  SELF-LIQUIDATING FINANCING.
 15 33    1.  The department of natural resources board may enter
 15 34 into financing agreements with the state, state agencies,
 15 35 political subdivisions of the state, school districts, area
 16  1 education agencies, community colleges, or nonprofit
 16  2 organizations in order to provide the financing to pay the
 16  3 costs of furnishing energy conservation measures.  The
 16  4 provisions of section 473.20 defining eligible energy
 16  5 conservation measures and the method of repayment of the loans
 16  6 apply to financings under this section.
 16  7    The financing agreement may contain provisions, including
 16  8 interest, term, and obligations to make payments on the
 16  9 financing agreement beyond the current budget year, as may be
 16 10 agreed upon between the department of natural resources board
 16 11 and the state, state agencies, political subdivisions of the
 16 12 state, school districts, area education agencies, community
 16 13 colleges, or nonprofit organizations.
 16 14    2.  For the purpose of funding its obligation to furnish
 16 15 moneys under the financing agreements, or to fund the energy
 16 16 loan fund created in section 473.20, the treasurer of state,
 16 17 with the assistance of the department of natural resources
 16 18 board, or the treasurer of state's duly authorized agents or
 16 19 representatives, may incur indebtedness or enter into master
 16 20 lease agreements or other financing arrangements to borrow to
 16 21 accomplish energy conservation measures, or the department of
 16 22 natural resources board may enter into master lease agreements
 16 23 or other financing arrangements to permit the state, state
 16 24 agencies, political subdivisions of the state, school
 16 25 districts, area education agencies, community colleges, or
 16 26 nonprofit organizations to borrow sufficient funds to
 16 27 accomplish the energy conservation measure.  The obligations
 16 28 may be in such form, for such term, bearing such interest and
 16 29 containing such provisions as the department of natural
 16 30 resources board, with the assistance of the treasurer of
 16 31 state, deems necessary or appropriate.  Funds remaining after
 16 32 the payment of all obligations have been redeemed shall be
 16 33 paid into the energy loan fund.
 16 34    3.  The state, state agencies, political subdivisions of
 16 35 the state, school districts, area education agencies,
 17  1 community colleges, and nonprofit organizations may enter into
 17  2 financing agreements and issue obligations necessary to carry
 17  3 out the provisions of the chapter.  Chapter 75 shall not be
 17  4 applicable.
 17  5    Sec. 25.  Section 473.40, Code 2001, is amended to read as
 17  6 follows:
 17  7    473.40  STATEWIDE BUILDING ENERGY EFFICIENCY RATING SYSTEM.
 17  8    1.  The director state building code commissioner shall
 17  9 adopt rules, pursuant to chapter 17A, establishing a statewide
 17 10 building energy efficiency rating system.  The rating system
 17 11 shall apply to all new and existing public, commercial,
 17 12 industrial, and residential buildings in the state. and shall
 17 13 be established subject to the following schedule:
 17 14    a.  Ratings for new residential buildings by July 1, 1992.
 17 15    b.  Ratings for existing residential buildings by July 1,
 17 16 1993.
 17 17    c.  Ratings for new public buildings by July 1, 1994.
 17 18    d.  Ratings for existing public buildings by July 1, 1995.
 17 19    e.  Ratings for new commercial and industrial buildings by
 17 20 July 1, 1995.
 17 21    f.  Ratings for existing commercial and industrial
 17 22 buildings by July 1, 1995.
 17 23    The director state building code commissioner shall adopt a
 17 24 minimum acceptable energy efficiency standard for each class
 17 25 of new buildings.
 17 26    2.  a.  The energy efficiency rating shall be disclosed at
 17 27 the request of the prospective purchaser according to the
 17 28 terms of the offer to purchase.
 17 29    b.  The energy efficiency rating shall be disclosed to a
 17 30 prospective lessee whose rent does not include energy cost
 17 31 upon request.
 17 32    c.  The designer of a new residential or commercial
 17 33 building shall state in writing to the department state
 17 34 building code commissioner that to the best of the person's
 17 35 knowledge, information, and belief, the new building design is
 18  1 in substantial compliance with the minimum energy efficiency
 18  2 standards established by rule of the department state building
 18  3 code commissioner.
 18  4    d.  Concurrent with the disclosure of an energy efficiency
 18  5 rating pursuant to paragraphs "a" through "c", the prospective
 18  6 purchaser or lessee shall be provided with a copy of an
 18  7 information brochure prepared by the department state building
 18  8 code commissioner which includes information relevant to that
 18  9 class of building, including, but not limited to:
 18 10    (1)  How to analyze the building's energy efficiency
 18 11 rating.
 18 12    (2)  Comparisons to statewide averages for new and existing
 18 13 construction of that class.
 18 14    (3)  Notice to the prospective purchaser that the seller
 18 15 must disclose a building's energy efficiency rating upon the
 18 16 prospective purchaser's request.
 18 17    (4)  Information concerning methods to improve a building's
 18 18 energy efficiency rating.
 18 19    (5)  A notice for residential buyers that qualifying income
 18 20 for mortgage loan purposes may be affected by the energy
 18 21 efficiency rating.
 18 22    e.  A new residential, commercial, or industrial building
 18 23 shall not be hooked up or connected to any provider of
 18 24 electricity, whether a regulated utility, rural electric
 18 25 cooperative, municipal utility, or otherwise; or natural gas,
 18 26 except liquid petroleum, unless the builder states in writing
 18 27 to the utility that to the best of the builder's knowledge,
 18 28 information, and belief, the building was built in accordance
 18 29 with the construction documents.
 18 30    f.  Each public building proposed for construction,
 18 31 renovation, or acquisition shall be rated pursuant to the
 18 32 energy efficiency rating system provided in subsection 1 prior
 18 33 to contracting for the construction, renovation, or
 18 34 acquisition.  The public body proposing to contract for
 18 35 construction, renovation, or acquisition for a public building
 19  1 shall consider the energy efficiency ratings of alternatives
 19  2 when contracting.
 19  3    3.  The energy efficiency rating system adopted by the
 19  4 department state building code commissioner shall provide a
 19  5 means of analyzing and comparing the relative energy
 19  6 efficiency of buildings upon sale or lease of new or existing
 19  7 residential, commercial, or industrial buildings.  The system
 19  8 shall provide for rating each public building in existence to
 19  9 assist public officials in decision making with regard to
 19 10 capital improvements and public energy costs.
 19 11    4.  The director state building code commissioner shall
 19 12 establish a voluntary working group of persons and interest
 19 13 groups interested in the energy efficiency rating system or
 19 14 energy efficiency, including, but not limited to such persons
 19 15 as electrical engineers, mechanical engineers, architects, and
 19 16 builders.  The interest group shall advise the department
 19 17 state building code commissioner in the development of the
 19 18 energy efficiency rating system and shall assist the
 19 19 department state building code commissioner in implementation
 19 20 of the rating system by coordinating education programs for
 19 21 designers, builders, businesses, and other interested persons
 19 22 to assist compliance and to facilitate incorporation of the
 19 23 rating system into existing practices.  The intent of the
 19 24 general assembly is to encourage the consideration of the
 19 25 energy efficiency rating system in the market, so as to
 19 26 provide market rewards for energy efficient buildings and
 19 27 those designing, building, or selling energy efficient
 19 28 buildings.
 19 29    5.  All public buildings shall be analyzed for energy
 19 30 efficiency using this rating system by July 1, 1996.  The
 19 31 results of that analysis shall be submitted to the department
 19 32 by August 1, 1996.  The department shall submit a report to
 19 33 the governor and general assembly by January 15, 1997, that
 19 34 analyzes the results of this evaluation of public buildings
 19 35 and includes recommendations.  The results of the analysis of
 20  1 each building shall be submitted to the public agency or
 20  2 governmental subdivision which owns or operates that building
 20  3 as well.
 20  4    6. 5.  The director state building code commissioner shall
 20  5 make available energy efficiency practices information to be
 20  6 used by individuals involved in the design, construction,
 20  7 retrofitting, and maintenance of buildings for state and local
 20  8 governments.
 20  9    7. 6.  For purposes of this section:
 20 10    a.  "Builder" means the prime contractor that hires and
 20 11 coordinates building subcontractors or if there is no prime,
 20 12 the contractor that completes more than fifty percent of the
 20 13 total construction work performed on the building.
 20 14 Construction work includes, but is not limited to, foundation,
 20 15 framing, wiring, plumbing, and finishing work.
 20 16    b.  "Designer" means the architect, engineer, landscape
 20 17 architect, builder, interior designer or other person who
 20 18 performs the actual design work or under whose direct
 20 19 supervision and responsible charge the construction documents
 20 20 are prepared.
 20 21    c.  "Public building" means a building owned or operated by
 20 22 the state, a state agency, or a governmental subdivision,
 20 23 including but not limited to a city, county, or school
 20 24 district.
 20 25    8. 7.  The director state building code commissioner may
 20 26 report an architect, professional engineer, or landscape
 20 27 architect to the appropriate examining board if the director
 20 28 state building code commissioner believes the person has
 20 29 engaged in fraudulent conduct in connection with an energy
 20 30 efficiency rating for a building.  The director state building
 20 31 code commissioner may report a builder to the division of
 20 32 labor, bureau of contractor registration, if the director
 20 33 state building code commissioner believes the builder has
 20 34 engaged in fraudulent conduct in connection with an energy
 20 35 efficiency rating for a building.
 21  1    Sec. 26.  Section 473.44, Code 2001, is amended to read as
 21  2 follows:
 21  3    473.44  PLUMBING PRODUCTS EFFICIENCY STANDARDS – PENALTY.
 21  4    1.  The department state building code commissioner shall
 21  5 adopt rules which that prescribe water use standards for each
 21  6 product classified as a covered product under this section.
 21  7 The standards adopted shall be designed to achieve the maximum
 21  8 efficiency of water use which that the department state
 21  9 building code commissioner determines is technologically and
 21 10 economically feasible.  The department state building code
 21 11 commissioner shall consult with the state building code
 21 12 commissioner, the Iowa department of public health, and the
 21 13 plumbing manufacturers' institute, and shall review all
 21 14 applicable provisions under chapter 103A and chapter 135 in
 21 15 establishing the standards.
 21 16    2.  A person who knowingly violates this section is subject
 21 17 to a civil penalty of not more than one hundred dollars for
 21 18 each violation.  Local government subdivisions which enforce
 21 19 the standards adopted under this section may collect and
 21 20 utilize receipts from the penalties imposed for building code
 21 21 inspections and enforcement of this section.
 21 22    3.  For the purposes of this section, "covered products"
 21 23 means water closets, urinals, showerheads, lavatory faucets
 21 24 and replacement aerators, and kitchen faucets and replacement
 21 25 aerators.
 21 26    Sec. 27.  Section 476.6, Code Supplement 2001, is amended
 21 27 by adding the following new subsection:
 21 28    NEW SUBSECTION.  16A.  POWER PURCHASE CONTRACTS.
 21 29    a.  A rate-regulated public utility may file with the board
 21 30 for approval any contract for the purchase of electric power
 21 31 to serve Iowa retail electric consumers if the contract meets
 21 32 all of the following conditions:
 21 33    (1)  The contract term is for a period of five years or
 21 34 longer.
 21 35    (2)  The power is being purchased from an electric power
 22  1 generating facility built after 2001.
 22  2    b.  The board shall issue its decision within ninety days
 22  3 after the public utility's filing is deemed complete.
 22  4    c.  The board shall approve the contract if it finds, after
 22  5 a contested case proceeding, that the terms of the contract
 22  6 are reasonable and prudent.  In determining whether the terms
 22  7 of the contract are reasonable and prudent, the board may
 22  8 consider, but is not limited to, the following factors:
 22  9    (1)  The reliability of the new generation in Iowa.
 22 10    (2)  The economic benefits of the new generation in Iowa.
 22 11    (3)  The environmental advantages of new or more efficient
 22 12 generation.
 22 13    (4)  The compatibility of the new generation with the
 22 14 energy policy of the state.
 22 15    d.  Board approval of a contract shall constitute a final
 22 16 determination of the prudence and reasonableness of the
 22 17 contract and its terms.  The board, subsequent to approval of
 22 18 a contract, may at anytime by order compel the parties to
 22 19 comply with the terms of the contract.
 22 20    e.  The costs of the contract shall be included in the
 22 21 public utility's regulated retail electric rates.
 22 22    f.  Notwithstanding contrary provisions of this subsection,
 22 23 any new wholesale contract with any supplier of electric
 22 24 generation to provide at least one hundred megawatts of
 22 25 electric power to a rate-regulated public utility shall be
 22 26 subject to a competitive bidding procedure established by the
 22 27 board.  The board shall adopt rules pursuant to chapter 17A
 22 28 regarding the filing and approval of contracts under this
 22 29 subsection, including rules to ensure that a fair and
 22 30 competitive bidding process is in place and that criteria for
 22 31 approval encourages the purchase of least cost generation.
 22 32    g.  The board may employ additional temporary staff, or may
 22 33 contract for professional services with persons who are not
 22 34 state employees, as the board deems necessary to review
 22 35 contracts pursuant to this subsection.  Beginning July 1,
 23  1 2002, there is appropriated out of any funds in the state
 23  2 treasury not otherwise appropriated, such sums as may be
 23  3 necessary to enable the board to hire additional staff and
 23  4 contract for services under this subsection.  The costs of the
 23  5 additional staff and services shall be assessed to the
 23  6 utilities pursuant to the procedure in section 476.10.
 23  7    Sec. 28.  Section 476.6, subsection 19, paragraph b, Code
 23  8 2001, is amended to read as follows:
 23  9    b.  A gas and electric utility required to be rate-
 23 10 regulated under this chapter shall assess potential energy and
 23 11 capacity savings available from actual and projected customer
 23 12 usage by applying commercially available technology and
 23 13 improved operating practices to energy-using equipment and
 23 14 buildings.  The utility shall submit the assessment to the
 23 15 board.  Upon receipt of the assessment, the board shall
 23 16 consult with the energy bureau of the division of energy and
 23 17 geological resources of the department of natural resources to
 23 18 develop specific capacity and energy savings performance
 23 19 standards for each utility.  The utility shall submit an
 23 20 energy efficiency plan which shall include economically
 23 21 achievable programs designed to attain these energy and
 23 22 capacity performance standards.
 23 23    Sec. 29.  Section 476.44, Code 2001, is amended by adding
 23 24 the following new subsection:
 23 25    NEW SUBSECTION.  3.  An electric utility subject to this
 23 26 division may elect to own an alternate energy production
 23 27 facility or a small hydro facility in Iowa rather than
 23 28 purchase or wheel electricity in order to comply with the
 23 29 requirements of section 476.43 and this section.
 23 30    Sec. 30.  NEW SECTION.  476.48  INCENTIVES FOR ALTERNATE
 23 31 ENERGY INVESTMENTS.
 23 32    It is the intent of the general assembly to provide
 23 33 investment incentives for the construction of facilities to
 23 34 generate and transmit electric power from renewable sources
 23 35 commonly found in Iowa, in order to reduce Iowa's dependence
 24  1 on nonrenewable fuel sources, and to emphasize the economic
 24  2 importance of using energy sources that provide a financial
 24  3 return to Iowans.
 24  4    1.  For purposes of determining the incentives or
 24  5 assistance provided in this section, "eligible business" means
 24  6 a business that invests fifty million dollars or more in Iowa
 24  7 to construct an alternative energy production facility or
 24  8 small hydro facility, and has been approved to receive
 24  9 incentives and assistance by the board pursuant to
 24 10 application.  A provider of energy shall apply to the
 24 11 utilities board in order to be evaluated as an "eligible
 24 12 business" that is qualified for incentives and assistance
 24 13 under this section.
 24 14    2.  The incentives and assistance provided under this
 24 15 section for eligible businesses shall be for a period not to
 24 16 exceed ten years and shall include all of the following:
 24 17    a.  Sales, services, and use tax refund, as provided in
 24 18 section 15.331A, as if the eligible business were an eligible
 24 19 business under chapter 15, subchapter II, part 13.
 24 20    b.  Investment tax credit, as provided in section 15.333,
 24 21 as if the eligible business were an eligible business under
 24 22 chapter 15, subchapter II, part 13.  The investment tax credit
 24 23 can be used as a credit against income tax under chapter 422,
 24 24 franchise tax imposed upon financial institutions pursuant to
 24 25 section 422.60, or premium tax imposed upon insurance
 24 26 companies pursuant to chapter 432.
 24 27    c.  Research activities credit, as provided in section
 24 28 15.335, as if the eligible business were an eligible business
 24 29 under chapter 15, subchapter II, part 13.
 24 30    d.  The county or city for which an eligible business is
 24 31 certified may exempt from all property taxation all or a
 24 32 portion of the value added to the property upon which an
 24 33 eligible business locates or expands and which is used in the
 24 34 operation of the eligible business.  The amount of value added
 24 35 for purposes of this paragraph shall be the amount of the
 25  1 increase in assessed valuation of the property following the
 25  2 location or expansion of the business.  If an exemption
 25  3 provided pursuant to this paragraph is made applicable to only
 25  4 a portion of the property, the definition of that subset of
 25  5 eligible property must be by uniform criteria that further
 25  6 some planning objective established by the city or county
 25  7 zoning commission and approved by the eligible city or county.
 25  8 The exemption may be allowed for a period not to exceed ten
 25  9 years beginning the year the eligible business enters into an
 25 10 agreement with the county or city to locate or expand
 25 11 operations.
 25 12    3.  The utilities board is charged with responsibility for
 25 13 administering this section and sections 476.48B and 476.48C.
 25 14    Sec. 31.  NEW SECTION.  476.48A  DEFINITIONS.
 25 15    As used in this section and section 476.48B, unless the
 25 16 context otherwise provides:
 25 17    1.  "Local governing body" means the council, board of
 25 18 supervisors, or other legislative body charged with governing
 25 19 the municipality or other political subdivision.
 25 20    2.  "Low or moderate income families" means those families,
 25 21 including single person households, earning no more than
 25 22 eighty percent of the higher of the median family income of
 25 23 the county or the statewide nonmetropolitan area as determined
 25 24 by the latest United States department of housing and urban
 25 25 development, section 8 income guidelines.
 25 26    3.  "Real property" shall include all lands, including
 25 27 improvements and fixtures thereon, and property of any nature
 25 28 appurtenant thereto, or used in connection therewith, and
 25 29 every estate, interest, right and use, legal or equitable,
 25 30 therein, including terms for years and liens by way of
 25 31 judgment, mortgage or otherwise.
 25 32    4.  "Renewable energy zone" means an area, or combination
 25 33 of areas, which the local governing body, after submission and
 25 34 approval by the utilities board, designates as appropriate for
 25 35 a renewable energy zone project.
 26  1    5.  "Renewable energy zone plan" means a plan for the
 26  2 development, redevelopment, improvement, or rehabilitation of
 26  3 a designated renewable energy zone, as it exists from time to
 26  4 time.  The plan shall meet the following requirements:
 26  5    a.  Conform to the general plan for the local governing
 26  6 body.
 26  7    b.  Be sufficiently complete to indicate the real property
 26  8 located in the renewable energy zone to be acquired for the
 26  9 proposed development, redevelopment, improvement, or
 26 10 rehabilitation, and to indicate any zoning district changes,
 26 11 existing and future land uses, and the local objectives
 26 12 respecting development, redevelopment, improvement, or
 26 13 rehabilitation related to the future land use plan, and need
 26 14 for improved traffic, public transportation, public utilities,
 26 15 recreational and community facilities, and other public
 26 16 improvements within the renewable energy zone.
 26 17    c.  If the plan includes a provision for the division of
 26 18 taxes as provided in section 476.48B, the plan shall also
 26 19 include a list of the current general obligation debt of the
 26 20 local governing body, the current constitutional debt limit of
 26 21 the local governing body, and the proposed amount of
 26 22 indebtedness to be incurred, including loans, advances,
 26 23 indebtedness, or bonds that qualify for payment from the
 26 24 special fund referred to in section 476.48B, subsection 2.
 26 25    6.  "Renewable energy zone project" may include
 26 26 undertakings and activities of a local governing body in a
 26 27 renewable energy zone for the development of alternate energy,
 26 28 may include the designation and development of an economic
 26 29 development area in a renewable energy zone, and may involve
 26 30 redevelopment in a renewable energy zone, or rehabilitation or
 26 31 conservation in a renewable energy zone, or any combination or
 26 32 part thereof in accordance with a renewable energy zone plan.
 26 33 The undertakings and activities may include:
 26 34    a.  Acquisition of a slum area, blighted area, economic
 26 35 development area, or portion of the areas.
 27  1    b.  Demolition and removal of buildings and improvements.
 27  2    c.  Installation, construction, or reconstruction of
 27  3 streets, utilities, parks, playgrounds, and other improvements
 27  4 necessary for carrying out the objectives of the renewable
 27  5 energy zone in accordance with the renewable energy zone plan.
 27  6    d.  Disposition of any property acquired in a renewable
 27  7 energy zone, including sale, initial leasing, or retention by
 27  8 the local governing body itself, at its fair value for uses in
 27  9 accordance with the renewable energy zone plan.
 27 10    e.  Carrying out plans for a program of voluntary or
 27 11 compulsory repair and rehabilitation of buildings or other
 27 12 improvements in accordance with the renewable energy zone
 27 13 plan.
 27 14    f.  Acquisition of any other real property, where necessary
 27 15 to provide land for needed public facilities.
 27 16    g.  Sale and conveyance of real property in furtherance of
 27 17 a renewable energy zone project.
 27 18    Sec. 32.  NEW SECTION.  476.48B  DIVISION OF REVENUE FROM
 27 19 TAXATION – TAX INCREMENT FINANCING.
 27 20    A local governing body may provide by ordinance that taxes
 27 21 levied on taxable property in a renewable energy zone each
 27 22 year by or for the benefit of the state, city, county, school
 27 23 district, or other taxing district, shall be divided as
 27 24 follows:
 27 25    1.  a.  Unless otherwise provided in this section, that
 27 26 portion of the taxes which would be produced by the rate at
 27 27 which the tax is levied each year by or for each of the taxing
 27 28 districts upon the total sum of the assessed value of the
 27 29 taxable property in the renewable energy zone, as shown on the
 27 30 assessment roll as of January 1 of the calendar year preceding
 27 31 the first calendar year in which the local governing body
 27 32 certifies to the county auditor the amount of loans, advances,
 27 33 indebtedness, or bonds payable from the division of property
 27 34 tax revenue, shall be allocated to, and when collected be paid
 27 35 into, the fund for the respective taxing district as taxes by
 28  1 or for the taxing district into which all other property taxes
 28  2 are paid.  However, the local governing body may choose to
 28  3 divide that portion of the taxes which would be produced by
 28  4 levying the local governing body's portion of the total tax
 28  5 rate levied by or for the local governing body upon the total
 28  6 sum of the assessed value of the taxable property in the
 28  7 renewable energy zone, as shown on the assessment roll as of
 28  8 January 1 of the calendar year preceding the effective date of
 28  9 the ordinance and if the local governing body so chooses, an
 28 10 affected taxing entity may allow a local governing body to
 28 11 divide that portion of the taxes that would be produced by
 28 12 levying the affected taxing district's portion of the total
 28 13 tax rate levied by or for the affected taxing entity upon the
 28 14 total sum of the assessed value of the taxable property in the
 28 15 renewable energy zone, as shown on the assessment roll as of
 28 16 January 1 of the calendar year preceding the effective date of
 28 17 the ordinance.
 28 18    b.  For the purpose of allocating taxes levied by or for
 28 19 any taxing district that did not include the territory in a
 28 20 renewable energy zone on the effective date of the ordinance
 28 21 or initial adoption of the plan, but to which the territory
 28 22 has been annexed or otherwise included after the effective
 28 23 date, the assessment roll applicable to property in the
 28 24 annexed territory as of January 1 of the calendar year
 28 25 preceding the effective date of the ordinance, which amends
 28 26 the plan to include the annexed area, shall be used in
 28 27 determining the assessed valuation of the taxable property in
 28 28 the annexed area.
 28 29    c.  For the purposes of dividing taxes under section
 28 30 260E.4, the applicable assessment roll for purposes of
 28 31 paragraph "a" shall be the assessment roll as of January 1 of
 28 32 the calendar year preceding the first written agreement
 28 33 providing that all or a portion of program costs are to be
 28 34 paid for by incremental property taxes.  The community college
 28 35 shall file a copy of the agreement with the appropriate
 29  1 assessor.  The assessor may, within fourteen days of such
 29  2 filing, physically inspect the applicable taxable business
 29  3 property.  If upon such inspection the assessor determines
 29  4 that there has been a change in the value of the property from
 29  5 the value as shown on the assessment roll as of January 1 of
 29  6 the calendar year preceding the filing of the agreement and
 29  7 such change in value is due to new construction, additions or
 29  8 improvements to existing structures, or remodeling of existing
 29  9 structures for which a building permit was required, the
 29 10 assessor shall promptly determine the value of the property as
 29 11 of the inspection in the manner provided in chapter 441 and
 29 12 that value shall be included for purposes of the jobs training
 29 13 project in the assessed value of the employer's taxable
 29 14 business property as shown on the assessment roll as of
 29 15 January 1 of the calendar year preceding the filing of the
 29 16 agreement.  The assessor, within thirty days of such filing,
 29 17 shall notify the community college and the employer or
 29 18 business of that valuation which shall be included in the
 29 19 assessed valuation for purposes of this subsection and section
 29 20 260E.4.  The value determined by the assessor shall reflect
 29 21 the change in value due solely to new construction, additions
 29 22 or improvements to existing structures, or remodeling of
 29 23 existing structures for which a building permit was required.
 29 24    2.  That portion of the taxes each year in excess of such
 29 25 amount shall be allocated to and when collected be paid into a
 29 26 special fund of the local governing body to pay the principal
 29 27 of and interest on loans, moneys advanced to, or indebtedness,
 29 28 whether funded, refunded, assumed, or otherwise, including
 29 29 bonds issued under the authority of section 476.48C, incurred
 29 30 by the local governing body to finance or refinance, in whole
 29 31 or in part, a renewable energy zone project within the area,
 29 32 except that taxes for the regular and voter-approved physical
 29 33 plant and equipment levy of a school district imposed pursuant
 29 34 to section 298.2 and taxes for the payment of bonds and
 29 35 interest of each taxing district must be collected against all
 30  1 taxable property within the taxing district without limitation
 30  2 by the provisions of this subsection.  Such school district
 30  3 shall pay over the amount certified by November 1 and May 1 of
 30  4 the fiscal year following certification to the school
 30  5 district.  Unless and until the total assessed valuation of
 30  6 the taxable property in a renewable energy zone exceeds the
 30  7 total assessed value of the taxable property in such area as
 30  8 shown by the last equalized assessment roll referred to in
 30  9 subsection 1, all of the taxes levied and collected upon the
 30 10 taxable property in the renewable energy zone shall be paid
 30 11 into the funds for the respective taxing districts as taxes by
 30 12 or for the taxing districts in the same manner as all other
 30 13 property taxes.  When such loans, advances, indebtedness, and
 30 14 bonds, if any, and interest thereon, have been paid, all
 30 15 moneys thereafter received from taxes upon the taxable
 30 16 property in such renewable energy zone shall be paid into the
 30 17 funds for the respective taxing districts in the same manner
 30 18 as taxes on all other property.
 30 19    3.  The portion of taxes mentioned in subsection 2 and the
 30 20 special fund into which they shall be paid may be irrevocably
 30 21 pledged by a local governing body for the payment of the
 30 22 principal and interest on loans, advances, bonds issued under
 30 23 the authority of section 476.48C, or indebtedness incurred by
 30 24 a local governing body to finance or refinance, in whole or in
 30 25 part, the renewable energy zone project within the area.
 30 26    4.  As used in this section, the word "taxes" includes, but
 30 27 is not limited to, all levies on an ad valorem basis upon land
 30 28 or real property.
 30 29    5.  A local governing body shall certify to the county
 30 30 auditor on or before December 1 the amount of loans, advances,
 30 31 indebtedness, or bonds which qualify for payment from the
 30 32 special fund referred to in subsection 2, and the filing of
 30 33 the certificate shall make it a duty of the auditor to provide
 30 34 for the division of taxes in each subsequent year until the
 30 35 amount of the loans, advances, indebtedness, or bonds is paid
 31  1 to the special fund.  In any year, the county auditor shall,
 31  2 upon receipt of a certified request from a local governing
 31  3 body filed on or before December 1, increase the amount to be
 31  4 allocated under subsection 1 in order to reduce the amount to
 31  5 be allocated in the following fiscal year to the special fund,
 31  6 to the extent that the local governing body does not request
 31  7 allocation to the special fund of the full portion of taxes
 31  8 that could be collected.  Upon receipt of a certificate from a
 31  9 local governing body, the auditor shall mail a copy of the
 31 10 certificate to each affected taxing district.
 31 11    6.  Tax collections within each taxing district may be
 31 12 allocated to the entire taxing district, including the taxes
 31 13 on the valuations determined under subsection 1 and to the
 31 14 special fund created under subsection 2 in the proportion of
 31 15 their taxable valuations determined as provided in this
 31 16 section.
 31 17    Sec. 33.  NEW SECTION.  476.48C  ISSUANCE OF BONDS.
 31 18    1.  A local governing body shall have power to periodically
 31 19 issue bonds in its discretion to pay the costs of carrying out
 31 20 the purposes and provisions of section 476.48B, including, but
 31 21 not limited to, the payment of principal and interest upon any
 31 22 advances for surveys and planning, and the payment of interest
 31 23 on bonds, not to exceed three years from the date the bonds
 31 24 are issued.  The local governing body shall have power to
 31 25 issue refunding bonds for the payment or retirement of such
 31 26 bonds previously issued by it.  The bonds shall be payable
 31 27 solely from the income and proceeds of the fund and portion of
 31 28 taxes referred to in section 476.48B, subsection 2, and
 31 29 revenues and other funds of the local governing body derived
 31 30 from or held in connection with the undertaking and carrying
 31 31 out of renewable energy zone projects under section 476.48B.
 31 32 The local governing body may pledge to the payment of the
 31 33 bonds the fund and portion of taxes referred to in section
 31 34 476.48B, subsection 2, and may further secure the bonds by a
 31 35 pledge of any loan, grant, or contribution from the federal
 32  1 government or other source in aid of any renewable energy zone
 32  2 projects of the local governing body, or by a mortgage of any
 32  3 such renewable energy zone projects, or any part thereof,
 32  4 title of which is vested in the local governing body.
 32  5    2.  Bonds issued under this section shall not constitute an
 32  6 indebtedness within the meaning of any constitutional or
 32  7 statutory debt limitation or restriction, and shall not be
 32  8 subject to the provisions of any other law or charter relating
 32  9 to the authorization, issuance, or sale of bonds.  Bonds
 32 10 issued under the provisions of this section are declared to be
 32 11 issued for an essential public and governmental purpose and,
 32 12 together with interest on the bonds and income from the bonds,
 32 13 shall be exempted from all taxes.
 32 14    3.  Bonds issued under this section shall be authorized by
 32 15 resolution or ordinance of the local governing body and may be
 32 16 issued in one or more series and shall bear such date or
 32 17 dates, be payable upon demand or mature at such time or times,
 32 18 bear interest at such rate or rates not exceeding that
 32 19 permitted by chapter 74A, be in such denomination or
 32 20 denominations, be in such form either coupon or registered,
 32 21 carry such conversion or registration privileges, have such
 32 22 rank or priority, be executed in such manner, be payable in
 32 23 such medium of payment, at such place or places, and be
 32 24 subject to such terms of redemption, with or without premium,
 32 25 be secured in such manner, and have such other
 32 26 characteristics, as may be provided by such resolution or
 32 27 trust indenture or mortgage issued pursuant thereto.
 32 28    Before the local governing body may institute proceedings
 32 29 for the issuance of bonds under this section, a notice of the
 32 30 proposed action, including a statement of the amount and
 32 31 purposes of the bonds and the time and place of the meeting at
 32 32 which the local governing body proposes to take action for the
 32 33 issuance of the bonds, must be published as provided in
 32 34 section 362.3.  At the meeting, the local governing body shall
 32 35 receive oral or written objections from any resident or
 33  1 property owner of the local governing body.  After all
 33  2 objections have been received and considered, the local
 33  3 governing body, at that meeting or any subsequent meeting, may
 33  4 take additional action for the issuance of the bonds or
 33  5 abandon the proposal to issue the bonds.  Any resident or
 33  6 property owner of the local governing body may appeal the
 33  7 decision of the local governing body to take additional action
 33  8 to the district court of the county in which any part of the
 33  9 local governing body is located, within fifteen days after the
 33 10 additional action is taken.  The additional action of the
 33 11 local governing body is final and conclusive unless the court
 33 12 finds that the local governing body exceeded its authority.
 33 13    4.  Such bonds may be sold at not less than ninety-eight
 33 14 percent of par at public or private sale, or may be exchanged
 33 15 for other bonds at not less than ninety-eight percent of par.
 33 16    5.  In case any of the public officials of the local
 33 17 governing body whose signatures appear on any bonds or coupons
 33 18 issued under this section shall cease to be such officials
 33 19 before the delivery of such bonds, such signatures shall,
 33 20 nevertheless, be valid and sufficient for all purposes, the
 33 21 same as if such officials had remained in office until such
 33 22 delivery.  Any provision of any law to the contrary
 33 23 notwithstanding, any bonds issued pursuant to this section
 33 24 shall be fully negotiable.
 33 25    6.  In any suit, action, or proceeding involving the
 33 26 validity or enforceability of any bond issued under this
 33 27 section or the security for such bonds, any such bond reciting
 33 28 in substance that it has been issued by the local governing
 33 29 body in connection with a renewable energy zone project, as
 33 30 defined in section 476.48A, shall be conclusively deemed to
 33 31 have been issued for such purpose and such project shall be
 33 32 conclusively deemed to have been planned, located, and carried
 33 33 out in accordance with the provisions of this section.
 33 34    Sec. 34.  Section 478.1, Code 2001, is amended to read as
 33 35 follows:
 34  1    478.1  FRANCHISE.
 34  2    1.  A person shall not construct, erect, maintain, or
 34  3 operate a transmission line, wire, or cable which that is
 34  4 capable of operating at an electric voltage of thirty-four and
 34  5 one-half sixty-nine kilovolts or more along, over, or across
 34  6 any public highway or grounds outside of cities for the
 34  7 transmission, distribution, or sale of electric current,
 34  8 without first procuring from the utilities board within the
 34  9 utilities division of the department of commerce a franchise
 34 10 granting authority as provided in this chapter.  However, a
 34 11    2.  A franchise shall not be required for electric lines
 34 12 constructed entirely within the boundaries of property owned
 34 13 by a person primarily engaged in the transmission or
 34 14 distribution of electric power or entirely within the
 34 15 boundaries of property owned by the end user of the electric
 34 16 power.
 34 17    3.  If the transmission line, wire, or cable is capable of
 34 18 operating only at an electric voltage of less than thirty-four
 34 19 and one-half sixty-nine kilovolts, no franchise is required.
 34 20 However, the utilities board shall retain jurisdiction over
 34 21 all such lines, wires, or cables.
 34 22    4.  A person who seeks to construct, erect, maintain, or
 34 23 operate a transmission line, wire, or cable which that will
 34 24 operate at an electric voltage of less than thirty-four and
 34 25 one-half sixty-nine kilovolts outside of cities and which that
 34 26 cannot secure the necessary voluntary easements to do so may
 34 27 petition the board pursuant to section 478.3, subsection 1,
 34 28 for a franchise granting authority for such construction,
 34 29 erection, maintenance, or operation, and for the use of the
 34 30 right of eminent domain.
 34 31    Sec. 35.  Section 478.2, Code 2001, is amended to read as
 34 32 follows:
 34 33    478.2  PETITION FOR FRANCHISE – INFORMATIONAL MEETINGS
 34 34 HELD.
 34 35    1.  Any person, corporation, or company authorized to
 35  1 transact business in the state including cities may file a
 35  2 verified petition asking for a franchise to erect, maintain,
 35  3 and operate a line or lines for the transmission,
 35  4 distribution, use, and sale of electric current outside cities
 35  5 and for such purpose to erect, use, and maintain poles, wires,
 35  6 guy wires, towers, cables, conduits, and other fixtures and
 35  7 appliances necessary for conducting electric current for
 35  8 light, heat, or power over, along, and across any public
 35  9 lands, highways, streams, or the lands of any person, company,
 35 10 or corporation, and to acquire necessary interests in real
 35 11 estate for such purposes.
 35 12    2.  As conditions precedent to the filing of a petition
 35 13 with the utilities board requesting a franchise for a new
 35 14 transmission line, and not less than thirty days prior to the
 35 15 filing of such petition, the person, company, or corporation
 35 16 shall hold informational meetings in each county in which real
 35 17 property or rights therein will be affected.
 35 18    a.  A member of the board, the counsel of the board, or a
 35 19 hearing examiner designated by the board shall serve as the
 35 20 presiding officer at each meeting, shall present an agenda for
 35 21 such meeting which shall include a summary of the legal rights
 35 22 of the affected landowners, and shall distribute and review
 35 23 the statement of individual rights required under section
 35 24 6B.2A, subsection 1.  A formal record of the meeting shall not
 35 25 be required.
 35 26    b.  The meeting shall be held at a location reasonably
 35 27 accessible to all persons, companies, or corporations which
 35 28 that may be affected by the granting of the franchise.
 35 29    3.  The person, company, or corporation seeking the
 35 30 franchise for a new transmission line shall give notice of the
 35 31 informational meeting to each person, company, or corporation
 35 32 determined to be the landowner affected by the proposed
 35 33 project and any person, company, or corporation in possession
 35 34 of or residing on the property.
 35 35    a.  For the purposes of this section, "landowner" unless
 36  1 the context otherwise requires:
 36  2    (1)  "Landowner" means a person, company, or corporation
 36  3 listed on the tax assessment rolls as responsible for the
 36  4 payment of real estate taxes imposed on the property and
 36  5 "transmission.
 36  6    (2)  "Transmission line" means any line capable of
 36  7 operating at thirty-four and one-half sixty-nine kilovolts or
 36  8 more and extending a distance of not less than one mile across
 36  9 privately owned real estate.
 36 10    b.  The notice shall set forth contain the following:
 36 11    (1)  The name of the applicant; state the.
 36 12    (2)  The applicant's principal place of business; state
 36 13 the.
 36 14    (3)  A general description and purpose of the proposed
 36 15 project; state the.
 36 16    (4)  The general nature of the right-of-way desired; state
 36 17 the.
 36 18    (5)  The possibility that the right-of-way may be acquired
 36 19 by condemnation if approved by the utilities board; provide a.
 36 20    (6)  A map showing the route of the proposed project;
 36 21 provide a.
 36 22    (7)  A description of the process used by the utilities
 36 23 board in making a decision on whether to approve a franchise
 36 24 or grant the right to take property by eminent domain; advise.
 36 25    (8)  A statement that the landowner has the right to be
 36 26 present at such meetings and to file objections with the
 36 27 utilities board; designate the.
 36 28    (9)  The place and time of the meeting;.
 36 29    c.  The notice shall be served not less than thirty days
 36 30 prior to the time set for the meeting by certified mail with
 36 31 return receipt requested; and shall be published once in a
 36 32 newspaper of general circulation in the county at least one
 36 33 week and not more than three weeks before the time of the
 36 34 meeting and such publication shall be considered notice to
 36 35 landowners whose residence is not known.
 37  1    4.  No A person, company, or corporation seeking rights
 37  2 under this chapter shall not negotiate or purchase any
 37  3 easements or other interests in land in any county known to be
 37  4 affected by the proposed project prior to the informational
 37  5 meeting.
 37  6    Sec. 36.  Section 478.3, subsection 2, unnumbered paragraph
 37  7 1, Code Supplement 2001, is amended to read as follows:
 37  8    Petitions for transmission lines capable of operating at
 37  9 thirty-four and one-half sixty-nine kilovolts or more and
 37 10 extending a distance of not less than one mile across
 37 11 privately owned real estate shall also set forth an allegation
 37 12 that the proposed construction represents a reasonable
 37 13 relationship to an overall plan of transmitting electricity in
 37 14 the public interest and substantiation of such allegations,
 37 15 including but not limited to, a showing of the following:
 37 16    Sec. 37.  Section 478.13, unnumbered paragraph 2, Code
 37 17 2001, is amended to read as follows:
 37 18    An extension of a franchise is not required for an electric
 37 19 transmission line which that has been permanently retired from
 37 20 operation at thirty-four and one-half sixty-nine kilovolts or
 37 21 more but which remains in service at a lower voltage.  The
 37 22 board shall be notified of changes in operating status.
 37 23    Sec. 38.  Sections 473.12, 473.13, 473.13A, and 473.42,
 37 24 Code 2001, are repealed.
 37 25    Sec. 39.  EFFECTIVE DATE.  The sections of this Act
 37 26 amending chapter 478, being deemed of immediate importance,
 37 27 take effect upon enactment.
 37 28    Sec. 40.  EFFECTIVE AND APPLICABILITY DATES.  The sections
 37 29 of this Act enacting new sections 476.48 through 476.48C, take
 37 30 effect upon enactment and apply retroactively to January 1,
 37 31 2002, for tax years beginning on or after that date.
 37 32    Sec. 41.  Sections 473.15 and 473.17, Code 2001, are
 37 33 repealed.  
 37 34                           EXPLANATION 
 37 35    This bill relates to energy, by providing tax incentives
 38  1 for alternate energy projects, providing for approval of
 38  2 utility power purchase contracts, changing the voltage
 38  3 threshold for electric line franchises, and reassigning
 38  4 responsibilities of the energy bureau of the department of
 38  5 natural resources.
 38  6    The bill adds new Code sections 476.48 through 476.48C,
 38  7 which provide various tax credits for businesses that invest
 38  8 $50 million or more in Iowa by building an alternate energy
 38  9 production facility or small hydro facility, and is approved
 38 10 to receive the incentives and assistance by the utilities
 38 11 board after submitting an application.  The incentive period
 38 12 lasts 10 years.  The tax incentives in new Code section 476.48
 38 13 may include a property tax exemption for the value added to
 38 14 the property, if so exempted by the city or county where the
 38 15 business is located.
 38 16    New Code section 476.48B provides for tax increment
 38 17 financing (TIF) for renewable energy zones, constructed
 38 18 similarly to the existing TIF statute for urban renewal
 38 19 districts in Code section 403.19.  Definitions for the new
 38 20 Code section are contained in Code section 476.48A, and
 38 21 bonding provisions are provided in Code section 476.48C.  New
 38 22 Code sections 476.48 through 476.48C take effect upon
 38 23 enactment, and apply retroactively to January 1, 2002, for tax
 38 24 years beginning on or after that date.
 38 25    The bill adds a new subsection to Code section 476.6
 38 26 regarding board approval of contracts to purchase power by
 38 27 rate-regulated public utilities.  If the contract meets all of
 38 28 the following criteria, the utility shall file the contract
 38 29 with the board, and may recover the costs of the contract in
 38 30 regulated retail electric rates:  (1) the contract is for five
 38 31 years or longer; (2) the power is being purchased from an
 38 32 electric power generation facility built after 2001.  The
 38 33 board shall approve the contract if, after a contested case
 38 34 proceeding, it finds that the terms of the contract are
 38 35 reasonable and prudent.  Approval by the board shall
 39  1 constitute a final determination of the prudence and
 39  2 reasonableness of the contract and its terms, and the board
 39  3 may order the parties to comply with the terms of the
 39  4 contract.  The board is authorized to contract for additional
 39  5 temporary staff as necessary to review such contracts.  Any
 39  6 new wholesale contract for 100 megawatts or more is subject to
 39  7 competitive bidding regulations established by the board.
 39  8    The bill allows public electric utilities to own alternate
 39  9 energy production facilities or small hydro facilities to
 39 10 satisfy their obligation for renewable energy under Code
 39 11 sections 476.43 and 476.44.
 39 12    The bill also increases the transmission line franchise
 39 13 requirement threshold in Code chapter 478 from 34.5 kilovolts
 39 14 to 69 kilovolts, by making changes in Code sections 478.1,
 39 15 478.2, 478.3, and 478.13.  The bill divides some existing Code
 39 16 sections into subsections, paragraphs, and subparagraphs, and
 39 17 makes some grammatical changes.  The bill deletes several
 39 18 redundant references to "person, company or corporation" in
 39 19 Code section 478.2, using instead the simpler "person", which
 39 20 is defined in Code section 4.1, subsection 20, as an
 39 21 "individual, corporation, limited liability company,
 39 22 government or governmental subdivision or agency, business
 39 23 trust, estate, trust, partnership or association, or any other
 39 24 legal entity".  This portion of the bill is effective upon
 39 25 enactment.
 39 26    The bill also reassigns the responsibilities of the energy
 39 27 bureau of the department of natural resources, renames the
 39 28 energy and geological resources division, and removes
 39 29 authority over Code chapter 473 from the department of natural
 39 30 resources.
 39 31    Most of the energy responsibilities under Code chapter 473
 39 32 are reassigned to the utilities board within the utilities
 39 33 division of the department of commerce, and appropriate
 39 34 changes are made to that effect throughout Code chapter 473.
 39 35 Certain emergency energy functions in Code sections 473.8 and
 40  1 473.10 are assigned to the emergency management division of
 40  2 the department of public defense.  Duties regarding monthly
 40  3 fuel price surveys and sharing of information regarding fuel
 40  4 allocation are assigned to the department of agriculture and
 40  5 land stewardship under new Code section 473.7A, moved from
 40  6 former subsections of Code section 473.7.  The state building
 40  7 code commissioner is reassigned responsibility for building
 40  8 efficiency rating systems under Code section 473.40, exit
 40  9 signs under Code section 473.42, and efficient plumbing
 40 10 products under Code section 473.44.  
 40 11 LSB 6354HV 79
 40 12 jj/cls/14
     

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