Text: HSB00666 Text: HSB00668 Text: HSB00600 - HSB00699 Text: HSB Index Bills and Amendments: General Index Bill History: General Index
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 managingenergy,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 theenergy andgeological 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 thedirector of the department of natural resourcesstate 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 the2 5energy and geological resources division of the department of2 6natural resources regarding standards for energy conservation2 7prior 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 constructionas determined by a survey conducted2 21by the energy and geological resources division of the2 22department of natural resources of the average actual energy2 23consumption, 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. Theenergy andgeological 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 16energy andgeological 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 geologicalGeological resources division 3 24 which is responsible for programs relating toenergy,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 protection3 32commission of the department."Board" or "utilities board" 3 33 means the utilities board within the utilities division of the 3 34 department of commerce. 3 352. "Department" means the department of natural resources4 1created under section 455A.2.4 23. "Director" means the director of the department or a4 3designee.4 44.2. "Energy" or "energy sources" means gasoline, fuel 4 5 oil, natural gas, propane, coal, special fuels and 4 6 electricity. 4 75.3. "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 THEDEPARTMENTBOARD. 4 13 Thedepartmentboard shall: 4 14 1. Deliver to the general assemblyby January 15, 19904 15 every five years beginning in 2005, a plan for the 4 16 development, management, and efficient utilization of all 4 17 energy resources in the state. The plan shall evaluate 4 18 existing energy utilization with regard to energy efficiency 4 19 and shall evaluate the future energy needs of the state. The 4 20 plan shall include but is not limited to the following 4 21 elements: 4 22 a. The historical use and distribution of energy in Iowa. 4 23 b. The growth rate of energy consumption in Iowa. 4 24 c. A projection of Iowa's energy needs at a minimum of ten 4 25 years into the future. 4 26 d. The impact of meeting Iowa's energy needs on the 4 27 economy of the state. 4 28 e. The impact of meeting Iowa's energy needs on the 4 29 environment of the state. 4 30 f. An evaluation of alternative sources and uses of 4 31 energy. 4 32 g. Legislative recommendations that may be necessary as a 4 33 basis for a state policy for the development and efficient 4 34 utilization of energy resources. 4 35 h. An evaluation of the ability of existing laws and 5 1 regulations surrounding the utilization of energy resources. 5 2 Thedepartmentboard shall develop the plan with the 5 3 assistance of, and in consultation with, representatives of 5 4 the energy industry, economic interests, the public, and other 5 5 interested parties. Thedepartmentboard shall submita5 6report to the general assembly concerning the status and5 7implementation of the plan on a biennial basis. The biennial5 8 an annual update that shall contain an evaluation of all state 5 9 energy programs including expected versus actual benefits and 5 10 forecasts of future energy demand in Iowa. 5 112. Identify a state facility in the state to be used as a5 12marketing tool to promote energy conservation by providing a5 13showcase for the department to demonstrate energy efficiency.5 143.2.The department shall exchangeExchange information 5 15 with other states on energy and especially on the allocation 5 16 of fuel and shall request all information necessary to 5 17 determine the reasonableness of any reduction of Iowa's fuel 5 18 allocation. 5 194.3. Establish a central depository within the state for 5 20 energy data. The central depository shall be located at or 5 21 accessible through a librarywhichthat is a member of an 5 22 interlibrary loan program to facilitate access to the data and 5 23 information contained in the central depository. The 5 24departmentboard shall collect data necessary to forecast 5 25 future energy demands in the state. Thedepartmentboard may 5 26 require a supplier to provide information pertaining to the 5 27 supply, storage, distribution and sale of energy sources in 5 28 this state. The information shall be furnished on a periodic 5 29 basis, shall be of a naturewhichthat directly relates to the 5 30 supply, storage, distribution and sale of energy sources, and 5 31 shall not include any records, documents, books or other data 5 32whichthat relate to the financial position of the supplier. 5 33Provided the departmentThe board, prior to requiring any 5 34 supplier to furnish it with such information, shall make every 5 35 reasonable effort to determine if the same information is 6 1 available from any other governmental source. If it finds 6 2 such information is available, thedepartmentboard shall not 6 3 require submission of thesameinformation from a supplier. 6 4 Notwithstanding the provisions of chapter 22, information and 6 5 reports obtained under this section shall be confidential 6 6 except when used for statistical purposes without identifying 6 7 a specific supplier and when release of the information will 6 8 not give an advantage to competitors and serves a public 6 9 purpose. Thedepartmentboard shall use this data to conduct 6 10 energy forecastswhich shall be included in the biennial6 11updateas required by this section. 6 12 Thedepartmentboard may subpoena witnesses, administer 6 13 oaths and require the production of records, books, and 6 14 documents for examination in order to obtain information 6 15 required to be submitted under this section. In case of 6 16 failure or refusal on the part of any person to comply with a 6 17 subpoena issued by thedepartmentboard, or in case of the 6 18 refusal of any witness to testify as to any matter regarding 6 19 which the witness may be interrogated under this chapter, the 6 20 district court, upon the application of thedepartmentboard, 6 21 may order the person to show cause why the person should not 6 22 be held in contempt for failure to testify or comply with a 6 23 subpoena, and may order the person to produce the records, 6 24 books, and documents for examination, and to give testimony. 6 25 The courts may punish for contempt as in the case of 6 26 disobedience to alikesubpoena issued by the court, or for 6 27 refusal to testify. 6 285.4. Develop, recommend, and implement with appropriate 6 29 agencies public and professional education and communication 6 30 programs in energy efficiency, energy conservation, and 6 31 conversion to alternative sources of energy. 6 326.5. When necessary to carry out its duties under this 6 33 chapter, enter into contracts with state agencies and other 6 34 qualified contractors. 6 357.6. Receive and accept grants made available for 7 1 programs relating to duties of thedepartmentboard under this 7 2 chapter. 7 38.7.PromulgateAdopt rules necessary to carry out the 7 4 provisions of this chapter, subject to review in accordance 7 5 with chapter 17A. Rules promulgated by the governor pursuant 7 6 to a proclamation issued under the provisions of section 473.8 7 7 shall not be subject to review or a public hearing as required 7 8 in chapter 17A; however, agency rules for implementation of 7 9 the governor's proclamation are subject to the requirements of 7 10 chapter 17A. 7 119.8. Examine and determine whether additional state 7 12 regulatory authority is necessary to protect the public 7 13 interest and to promote the effective development, utilization 7 14 and conservation of energy resources. If thedepartmentboard 7 15 finds that additional regulatory authority is necessary, the 7 16departmentboard shall submit recommendations to the general 7 17 assembly concerning the nature and extent of such regulatory 7 18 authority and which state agency should be assigned such 7 19 regulatory responsibilities. 7 2010.9. Develop and assist in the implementation of public 7 21 education and communications programs in energy development, 7 22 use and conservation, in co-operation with the department of 7 23 education, the state university extension services and other 7 24 public or private agencies and organizations as deemed 7 25 appropriate by thedepartmentboard. 7 2611.10. Develop a program to annually give public 7 27 recognition to innovative methods of energy conservation. 7 2812.11. Administer and coordinate federal funds for energy 7 29 conservation programs including, but not limited to, the 7 30 institutional conservation program, state energy conservation 7 31 program, and energy extension service program, and related 7 32 programs which provide energy management and conservation 7 33 assistance to schools, hospitals, health-care facilities, 7 34 communities, and the general public. 7 3513.12. Administer and coordinate the state building 8 1 energy management program including projects funded through 8 2 private financing. 8 314. Perform monthly fuel surveys which establish a8 4statistical average of motor fuel prices for various motor8 5fuels provided throughout the state. Additionally, the8 6department shall perform monthly fuel surveys in cities with8 7populations of over fifty thousand which establish a8 8statistical average of motor fuel prices for various motor8 9fuels provided in those individual cities. The survey results8 10shall be publicized in a monthly press release issued by the8 11department.8 1215. Conduct a study on activities related to energy8 13production and use which contribute to global climate change8 14and the depletion of the stratospheric ozone layer. The study8 15shall identify the types and relative contributions of these8 16activities in Iowa. The department shall develop a strategy8 17to reduce emissions from activities identified as having an8 18adverse impact on the global climate and the stratospheric8 19ozone layer. The department shall submit a report containing8 20its findings and recommendations to the governor and general8 21assembly by January 1, 1992.8 22 Sec. 14. NEW SECTION. 473.7A DUTIES OF DEPARTMENT OF 8 23 AGRICULTURE AND LAND STEWARDSHIP. 8 24 The department of agriculture and land stewardship shall 8 25 perform monthly fuel surveys that establish a statistical 8 26 average of motor fuel prices for various motor fuels provided 8 27 throughout the state. Additionally, the department shall 8 28 perform monthly fuel surveys in cities with populations of 8 29 over fifty thousand which establish a statistical average of 8 30 motor fuel prices for various motor fuels provided in those 8 31 individual cities. The survey results shall be publicized in 8 32 a monthly press release issued by the department. The 8 33 department shall exchange information with other states and 8 34 especially on the allocation of fuel and shall request all 8 35 information necessary to determine the reasonableness of any 9 1 reduction of Iowa's fuel allocation. 9 2 Sec. 15. Section 473.8, unnumbered paragraph 1, Code 9 3 Supplement 2001, is amended to read as follows: 9 4 If thedepartmentemergency management division of the 9 5 department of public defense, by resolution, determines the 9 6 health, safety, or welfare of the people of this state is 9 7 threatened by an actual or impending acute shortage of usable 9 8 energy, it shall transmit the resolution to the governor 9 9 together with its recommendation on the declaration of an 9 10 emergency by the governor and recommended actions, if any, to 9 11 be undertaken. Within thirty days of the date of the 9 12 resolution, the governor may issue a proclamation of emergency 9 13 which shall be filed with the secretary of state. The 9 14 proclamation shall state the facts relied upon and the reasons 9 15 for the proclamation. 9 16 Sec. 16. Section 473.10, Code 2001, is amended to read as 9 17 follows: 9 18 473.10 RESERVE REQUIRED. 9 19 1. If thedepartmentemergency management division of the 9 20 department of public defense or the governor finds that an 9 21 impending or actual shortage or distribution imbalance of 9 22 liquid fossil fuels may cause hardship or pose a threat to the 9 23 health and economic well-being of the people of the state or a 9 24 significant segment of the state's population, thedepartment9 25 division or the governor may authorize thedirector9 26 administrator of the emergency management division to operate 9 27 a liquid fossil fuel set-aside program as provided in 9 28 subsection 2. 9 29 2. Upon authorization by thedepartmentemergency 9 30 management division of the department of public defense or the 9 31 governor, thedirectoradministrator of the emergency 9 32 management division may require a prime supplier to reserve a 9 33 specified fraction of the prime supplier's projected total 9 34 monthly release of liquid fossil fuel in Iowa. Thedirector9 35 administrator may release any or all of the fuel required to 10 1 be reserved by a prime supplier to end-users or to 10 2 distributors for release through normal retail distribution 10 3 channels to retail customers. However, the specified fraction 10 4 required to be reserved shall not exceed three percent for 10 5 propane, aviation fuel and residual oil, and five percent for 10 6 motor gasoline, heating oil, and diesel oil. 10 7 3. Thedepartmentemergency management division of the 10 8 department of public defense shall periodically review and may 10 9 terminate the operation of a set-aside program authorized by 10 10 thedepartmentdivision under subsection 1 when thedepartment10 11 division finds that the conditions that prompted the 10 12 authorization no longer exist. The governor shall 10 13 periodically review and may terminate the operation of a set- 10 14 aside program authorized by the governor under subsection 1 10 15 when the governor finds that the conditions that prompted the 10 16 authorization no longer exist. 10 17 4. Thedirectoradministrator of the emergency management 10 18 division shall adopt rules toimplementadminister this 10 19 section. 10 20 Sec. 17. Section 473.11, subsection 1, paragraph f, Code 10 21 2001, is amended to read as follows: 10 22 f. The moneys deposited under section 473.16 in the 10 23 general fund of the state shall be used for research and 10 24 development of selected projects to improve Iowa's energy 10 25 independence by developing improved methods of energy 10 26 efficiency, or by increased development and use of Iowa's 10 27 renewable nonresource-depleting energy resources. The moneys 10 28 credited to the general fund of the state under section 10 29 556.18, subsection 3, shall be used for energy conservation 10 30 and alternative energy resource projects. The projects shall 10 31 be selectedby the directorand administered by thedepartment10 32 board. Selection criteria for funded projects shall include 10 33 consideration of indirect restitution to those persons in the 10 34 state in the utility customer classes and the utility service 10 35 territories affected by unclaimed utility refunds or deposits. 11 1 Moneys deposited into the general fund of the state under 11 2 sections 473.16, 476.51, and 556.18, subsection 3, are subject 11 3 to the requirements of section 8.60. 11 4 Sec. 18. Section 473.11, subsection 3, unnumbered 11 5 paragraph 1, Code 2001, is amended to read as follows: 11 6 An energy fund disbursement council is established. The 11 7 council shall be composed of the governor or the governor's 11 8 designee, the director of the department of management, who 11 9 shall serve as the council's chairperson, the administrator of 11 10 the division of community action agencies of the department of 11 11 human rights,the administrator of the energy and geological11 12resources division of the department of natural resourcesthe 11 13 chairperson of the utilities board, and a designee of the 11 14 director of transportation, who is knowledgeable in the field 11 15 of energy conservation. The council shall include as 11 16 nonvoting members two members of the senate appointed by the 11 17 president of the senate, after consultation with the majority 11 18 leader and the minority leader of the senate, and two members 11 19 of the house of representatives appointed by the speaker of 11 20 the house, after consultation with the majority leader and the 11 21 minority leader of the house. The legislative members shall 11 22 be appointed upon the convening and for the period of each 11 23 general assembly. Not more than one member from each house 11 24 shall be of the same political party. The council shall be 11 25 staffed by theenergy and geological resources division of the11 26department of natural resourcesboard. The attorney general 11 27 shall provide legal assistance to the council. 11 28 Sec. 19. Section 473.11, subsection 3, paragraph c, Code 11 29 2001, is amended to read as follows: 11 30 c. Work with theenergy and geological resources division11 31 board in adopting administrative rules necessary to administer 11 32 expenditures from the trust, encourage applications for grants 11 33 and loans, review and select proposals for the funding of 11 34 competitive grants and loans from the energy conservation 11 35 trust, and evaluate their comparative effectiveness. 12 1 Sec. 20. Section 473.11, subsection 3, paragraph f, Code 12 2 2001, is amended to read as follows: 12 3 f. Prepare, in conjunction with theenergy and geological12 4resources divisionboard, an annual report to the governor and 12 5 the general assembly regarding earnings of and expenditures 12 6 from the energy conservation trust. 12 7 Sec. 21. Section 473.11, subsections 4 and 7, Code 2001, 12 8 are amended to read as follows: 12 9 4. Theadministrator of the energy and geological12 10resources division of the department of natural resources12 11 board shall be the administrator of the energy conservation 12 12 trust. The administrator shall disburse moneys appropriated 12 13 by the general assembly from the funds in the trust in 12 14 accordance with the federal court orders, law and regulation, 12 15 or settlement conditions applying to the moneys in that fund, 12 16 and subject to the approval of the energy fund disbursement 12 17 council if such approval is required. The council, after 12 18 consultation with the attorney general, shall immediately 12 19 approve the disbursement of moneys from the funds in the trust 12 20 for projects which meet the federal court orders, law and 12 21 regulations, or settlement conditions which apply to that 12 22 fund. 12 23 7. On June 30, 2003, the energy fund disbursement council 12 24 established in subsection 3 shall be dissolved. At that time, 12 25 thedepartment of natural resourcesboard shall be responsible 12 26 for the disbursement of any funds either received or remaining 12 27 in the energy conservation trust. These disbursements shall 12 28 be for projects and programs consistent with the allowable 12 29 uses for the energy conservation trust. Also, at that time, 12 30 and annually thereafter, the state department of 12 31 transportation shall report to thedepartment of natural12 32resourcesboard on the status of the intermodal revolving loan 12 33 fund established in the state department of transportation. 12 34 In the fiscal year beginning July 1, 2019, thedepartment of12 35natural resourcesboard shall assume responsibility for funds 13 1 remaining in the intermodal revolving loan fund and disburse 13 2 them for energy conservation projects and programs consistent 13 3 with the allowable uses for the energy conservation trust. 13 4 Sec. 22. Section 473.12, Code 2001, is amended to read as 13 5 follows: 13 6 473.12 IMPLEMENTATION OF ENERGY CONSERVATION MEASURES 13 7 STATE BOARD OF REGENTS. 13 8 1. The state board of regents shall cause to be performed 13 9 comprehensive engineering analyses of facilities under the 13 10 control of the state board of regents and shall implement the 13 11 energy conservation measures identified in the analyseswhich13 12 that are economically feasible and practical andwhichthat do 13 13 not require more than an aggregate period of six years for the 13 14 recoupment of the cost of construction of the improvements 13 15 used to secure the implementation of the energy conservation 13 16 measure.The comprehensive engineering analyses shall be13 17completed no later than June 30, 1989.13 18 2.The department may, pursuantPursuant to section 7D.34, 13 19reducethe cost of financing for implementation of the energy 13 20 conservation measures identified,may be reduced through funds 13 21 deposited in the state of Iowa facilities improvement 13 22 corporationestablished by the department. In order for the 13 23 state board of regents to receive financing under section 13 24 7D.34,the department shall require completion ofthe state 13 25 board of regents shall complete an energy management plan, 13 26 including an energy audit and a comprehensive engineering 13 27 analysis. 13 28 3. The state board of regents shall annually report on 13 29 October 1 to thedepartmentutilities board the status of all 13 30 energy conservation measures identified intheirthe 13 31 comprehensive engineering analysis, whether or not the 13 32 measures have been acquired or implemented, and the results of 13 33 energy usage analyses of theboard'sstate board of regents' 13 34 facilities. 13 35 Sec. 23. Section 473.13, Code 2001, is amended to read as 14 1 follows: 14 2 473.13 IMPLEMENTATION OF ENERGY CONSERVATION MEASURES 14 3 STATE DEPARTMENT OF TRANSPORTATION. 14 4 1. The state department of transportation utilizing the 14 5 services of the state of Iowa facilities improvement 14 6 corporation shall cause to be performed comprehensive 14 7 engineering analyses of facilities under the control of the 14 8 state department of transportation and shall implement the 14 9 energy conservation measures identified in the analyseswhich14 10 that do not require more than an aggregate period of six years 14 11 for the recoupment of the cost of construction of the 14 12 improvements used to secure the implementation of the energy 14 13 conservation measures.The comprehensive engineering analyses14 14shall be completed no later than December 31, 1988.14 15 2.The department may, pursuantPursuant to section 7D.34, 14 16reducethe cost of financing for implementation of the energy 14 17 conservation measures identified,may be reduced through funds 14 18 deposited in the state of Iowa facilities improvement 14 19 corporationestablished by the department. In order for the 14 20 state department of transportation to receive financing,the14 21department shall require completion ofthe state department of 14 22 transportation shall complete an energy management plan, 14 23 including an energy audit and a comprehensive engineering 14 24 analysis. 14 25 Sec. 24. Section 473.13A, Code 2001, is amended to read as 14 26 follows: 14 27 473.13A ENERGY CONSERVATION MEASURES IDENTIFIED AND 14 28 IMPLEMENTED. 14 29 1. The state, state agencies, political subdivisions of 14 30 the state, school districts, area education agencies, and 14 31 community colleges shall identify and implement, through 14 32 energy audits and engineering analyses, all energy 14 33 conservation measures identified for which financing is made 14 34 availableby the departmentto the entity. The energy 14 35 conservation measure financings shall be supported through 15 1 payments from energy savings. 15 2 2.The department shall not require aA school district, 15 3 community college, area education agency, city, or county 15 4 shall not be required to perform an engineering analysis if 15 5 the school district, community college, area education agency, 15 6 city, or county demonstratesto the departmentthat the 15 7 facility which is the subject of the proposed engineering 15 8 analysis at issue is unlikely to be in use or operation in six 15 9 years by the governmental entity currently using or occupying 15 10 the facility. 15 11 Sec. 25. Section 473.19, unnumbered paragraph 1, Code 15 12 2001, is amended to read as follows: 15 13 The energy bank program is established by thedepartment15 14 board. The energy bank program consists of the following 15 15 forms of assistance for the state, state agencies, political 15 16 subdivisions of the state, school districts, area education 15 17 agencies, community colleges, and nonprofit organizations: 15 18 Sec. 26. Section 473.20, Code Supplement 2001, is amended 15 19 to read as follows: 15 20 473.20 ENERGY LOAN FUND. 15 21 An energy loan fund is established in the office of the 15 22 treasurer of state to be administered by thedepartmentboard. 15 23 1. Thedepartmentboard may make loans to the state, state 15 24 agencies, political subdivisions of the state, school 15 25 districts, area education agencies, community colleges, and 15 26 nonprofit organizations for implementation of energy 15 27 conservation measures identified in a comprehensive 15 28 engineering analysis. Loans shall be made for all cost- 15 29 effective energy management improvements. For the state, 15 30 state agencies, political subdivisions of the state, school 15 31 districts, area education agencies, community colleges, and 15 32 nonprofit organizations to receive a loan from the fund, the 15 33departmentboard shall require completion of an energy 15 34 management plan including an energy audit and a comprehensive 15 35 engineering analysis. Thedepartmentboard shall approve 16 1 loans made under this section. 16 2 2. Cities and counties shall repay the loans from moneys 16 3 in their debt service funds. Area education agencies shall 16 4 repay the loans from any moneys available to them. 16 5 School districts and community colleges may enter into 16 6 financing arrangements with thedepartmentboard or its duly 16 7 authorized agents or representatives obligating the school 16 8 district or community college to make payments on the loans 16 9 beyond the current budget year of the school district or 16 10 community college. Chapter 75 shall not be applicable. 16 11 School districts shall repay the loans from moneys in either 16 12 their general fund or debt service fund. Community colleges 16 13 shall repay the loans from their general fund. Other entities 16 14 receiving loans under this section shall repay the loans from 16 15 any moneys available to them. 16 16 3. Thedepartmentboard may accept gifts, federal funds, 16 17 state appropriations, and other moneys for deposit in the 16 18 energy loan fund or may fund the energy loan fund in 16 19 accordance with section 473.20A. 16 20 4. For the purpose of this section, "loans" means loans, 16 21 leases, or alternative financing arrangements. 16 22 5. The state, state agencies, political subdivisions of 16 23 the state, school districts, area education agencies, and 16 24 community colleges shall design and construct the most energy 16 25 cost-effective facilities feasible and shall use the financing 16 26 made available by thedepartmentboard to cover the 16 27 incremental costs above minimum building code energy 16 28 efficiency standards of purchasing energy efficient devices 16 29 and materials unless other lower cost financing is available. 16 30 As used in this section, "facility" means a structure that is 16 31 heated or cooled by a mechanical or electrical system, or any 16 32 system of physical operation that consumes energy to carry out 16 33 a process. 16 34 6. Thedepartmentboard shall not require the state, state 16 35 agencies, political subdivisions of the state, school 17 1 districts, area education agencies, and community colleges to 17 2 implement a specific energy conservation measure identified in 17 3 a comprehensive engineering analysis if the entity which 17 4 prepared the analysis demonstrates to thedepartmentboard 17 5 that the facility which is the subject of the energy 17 6 conservation measure is unlikely to be used or operated for 17 7 the full period of the expected payback of the energy 17 8 conservation measure. 17 9 Sec. 27. Section 473.20A, Code 2001, is amended to read as 17 10 follows: 17 11 473.20A SELF-LIQUIDATING FINANCING. 17 12 1. Thedepartment of natural resourcesboard may enter 17 13 into financing agreements with the state, state agencies, 17 14 political subdivisions of the state, school districts, area 17 15 education agencies, community colleges, or nonprofit 17 16 organizations in order to provide the financing to pay the 17 17 costs of furnishing energy conservation measures. The 17 18 provisions of section 473.20 defining eligible energy 17 19 conservation measures and the method of repayment of the loans 17 20 apply to financings under this section. 17 21 The financing agreement may contain provisions, including 17 22 interest, term, and obligations to make payments on the 17 23 financing agreement beyond the current budget year, as may be 17 24 agreed upon between thedepartment of natural resourcesboard 17 25 and the state, state agencies, political subdivisions of the 17 26 state, school districts, area education agencies, community 17 27 colleges, or nonprofit organizations. 17 28 2. For the purpose of funding its obligation to furnish 17 29 moneys under the financing agreements, or to fund the energy 17 30 loan fund created in section 473.20, the treasurer of state, 17 31 with the assistance of thedepartment of natural resources17 32 board, or the treasurer of state's duly authorized agents or 17 33 representatives, may incur indebtedness or enter into master 17 34 lease agreements or other financing arrangements to borrow to 17 35 accomplish energy conservation measures, or thedepartment of18 1natural resourcesboard may enter into master lease agreements 18 2 or other financing arrangements to permit the state, state 18 3 agencies, political subdivisions of the state, school 18 4 districts, area education agencies, community colleges, or 18 5 nonprofit organizations to borrow sufficient funds to 18 6 accomplish the energy conservation measure. The obligations 18 7 may be in such form, for such term, bearing such interest and 18 8 containing such provisions as thedepartment of natural18 9resourcesboard, with the assistance of the treasurer of 18 10 state, deems necessary or appropriate. Funds remaining after 18 11 the payment of all obligations have been redeemed shall be 18 12 paid into the energy loan fund. 18 13 3. The state, state agencies, political subdivisions of 18 14 the state, school districts, area education agencies, 18 15 community colleges, and nonprofit organizations may enter into 18 16 financing agreements and issue obligations necessary to carry 18 17 out the provisions of the chapter. Chapter 75 shall not be 18 18 applicable. 18 19 Sec. 28. Section 473.40, Code 2001, is amended to read as 18 20 follows: 18 21 473.40 STATEWIDE BUILDING ENERGY EFFICIENCY RATING SYSTEM. 18 22 1. Thedirectorstate building code commissioner shall 18 23 adopt rules, pursuant to chapter 17A, establishing a statewide 18 24 building energy efficiency rating system. The rating system 18 25 shall apply to all new and existing public, commercial, 18 26 industrial, and residential buildings in the state.and shall18 27be established subject to the following schedule:18 28a. Ratings for new residential buildings by July 1, 1992.18 29b. Ratings for existing residential buildings by July 1,18 301993.18 31c. Ratings for new public buildings by July 1, 1994.18 32d. Ratings for existing public buildings by July 1, 1995.18 33e. Ratings for new commercial and industrial buildings by18 34July 1, 1995.18 35f. Ratings for existing commercial and industrial19 1buildings by July 1, 1995.19 2 Thedirectorstate building code commissioner shall adopt a 19 3 minimum acceptable energy efficiency standard for each class 19 4 of new buildings. 19 5 2. a. The energy efficiency rating shall be disclosed at 19 6 the request of the prospective purchaser according to the 19 7 terms of the offer to purchase. 19 8 b. The energy efficiency rating shall be disclosed to a 19 9 prospective lessee whose rent does not include energy cost 19 10 upon request. 19 11 c. The designer of a new residential or commercial 19 12 building shall state in writing to thedepartmentstate 19 13 building code commissioner that to the best of the person's 19 14 knowledge, information, and belief, the new building design is 19 15 in substantial compliance with the minimum energy efficiency 19 16 standards established by rule of thedepartmentstate building 19 17 code commissioner. 19 18 d. Concurrent with the disclosure of an energy efficiency 19 19 rating pursuant to paragraphs "a" through "c", the prospective 19 20 purchaser or lessee shall be provided with a copy of an 19 21 information brochure prepared by thedepartmentstate building 19 22 code commissioner which includes information relevant to that 19 23 class of building, including, but not limited to: 19 24 (1) How to analyze the building's energy efficiency 19 25 rating. 19 26 (2) Comparisons to statewide averages for new and existing 19 27 construction of that class. 19 28 (3) Notice to the prospective purchaser that the seller 19 29 must disclose a building's energy efficiency rating upon the 19 30 prospective purchaser's request. 19 31 (4) Information concerning methods to improve a building's 19 32 energy efficiency rating. 19 33 (5) A notice for residential buyers that qualifying income 19 34 for mortgage loan purposes may be affected by the energy 19 35 efficiency rating. 20 1 e. A new residential, commercial, or industrial building 20 2 shall not be hooked up or connected to any provider of 20 3 electricity, whether a regulated utility, rural electric 20 4 cooperative, municipal utility, or otherwise; or natural gas, 20 5 except liquid petroleum, unless the builder states in writing 20 6 to the utility that to the best of the builder's knowledge, 20 7 information, and belief, the building was built in accordance 20 8 with the construction documents. 20 9 f. Each public building proposed for construction, 20 10 renovation, or acquisition shall be rated pursuant to the 20 11 energy efficiency rating system provided in subsection 1 prior 20 12 to contracting for the construction, renovation, or 20 13 acquisition. The public body proposing to contract for 20 14 construction, renovation, or acquisition for a public building 20 15 shall consider the energy efficiency ratings of alternatives 20 16 when contracting. 20 17 3. The energy efficiency rating system adopted by the 20 18departmentstate building code commissioner shall provide a 20 19 means of analyzing and comparing the relative energy 20 20 efficiency of buildings upon sale or lease of new or existing 20 21 residential, commercial, or industrial buildings. The system 20 22 shall provide for rating each public building in existence to 20 23 assist public officials in decision making with regard to 20 24 capital improvements and public energy costs. 20 25 4. Thedirectorstate building code commissioner shall 20 26 establish a voluntary working group of persons and interest 20 27 groups interested in the energy efficiency rating system or 20 28 energy efficiency, including, but not limited to such persons 20 29 as electrical engineers, mechanical engineers, architects, and 20 30 builders. The interest group shall advise thedepartment20 31 state building code commissioner in the development of the 20 32 energy efficiency rating system and shall assist the 20 33departmentstate building code commissioner in implementation 20 34 of the rating system by coordinating education programs for 20 35 designers, builders, businesses, and other interested persons 21 1 to assist compliance and to facilitate incorporation of the 21 2 rating system into existing practices. The intent of the 21 3 general assembly is to encourage the consideration of the 21 4 energy efficiency rating system in the market, so as to 21 5 provide market rewards for energy efficient buildings and 21 6 those designing, building, or selling energy efficient 21 7 buildings. 21 85. All public buildings shall be analyzed for energy21 9efficiency using this rating system by July 1, 1996. The21 10results of that analysis shall be submitted to the department21 11by August 1, 1996. The department shall submit a report to21 12the governor and general assembly by January 15, 1997, that21 13analyzes the results of this evaluation of public buildings21 14and includes recommendations. The results of the analysis of21 15each building shall be submitted to the public agency or21 16governmental subdivision which owns or operates that building21 17as well.21 186.5. Thedirectorstate building code commissioner shall 21 19 make available energy efficiency practices information to be 21 20 used by individuals involved in the design, construction, 21 21 retrofitting, and maintenance of buildings for state and local 21 22 governments. 21 237.6. For purposes of this section: 21 24 a. "Builder" means the prime contractor that hires and 21 25 coordinates building subcontractors or if there is no prime, 21 26 the contractor that completes more than fifty percent of the 21 27 total construction work performed on the building. 21 28 Construction work includes, but is not limited to, foundation, 21 29 framing, wiring, plumbing, and finishing work. 21 30 b. "Designer" means the architect, engineer, landscape 21 31 architect, builder, interior designer or other person who 21 32 performs the actual design work or under whose direct 21 33 supervision and responsible charge the construction documents 21 34 are prepared. 21 35 c. "Public building" means a building owned or operated by 22 1 the state, a state agency, or a governmental subdivision, 22 2 including but not limited to a city, county, or school 22 3 district. 22 48.7. Thedirectorstate building code commissioner may 22 5 report an architect, professional engineer, or landscape 22 6 architect to the appropriate examining board if thedirector22 7 state building code commissioner believes the person has 22 8 engaged in fraudulent conduct in connection with an energy 22 9 efficiency rating for a building. Thedirectorstate building 22 10 code commissioner may report a builder to the division of 22 11 labor, bureau of contractor registration, if thedirector22 12 state building code commissioner believes the builder has 22 13 engaged in fraudulent conduct in connection with an energy 22 14 efficiency rating for a building. 22 15 Sec. 29. Section 473.42, Code 2001, is amended to read as 22 16 follows: 22 17 473.42 EXIT SIGNS STANDARDS. 22 18 Thedepartmentstate building code commissioner shall adopt 22 19 ruleswhichthat require the use of compact fluorescent bulbs 22 20 in exit signs at the time of replacement, but no later than22 21July 1, 2001. Prior to the adoption of rules, the department22 22shall promote, through educational materials, the use of22 23compact fluorescent bulbs or lighting of greater efficiency in22 24exit signs. 22 25 Sec. 30. Section 473.44, Code 2001, is amended to read as 22 26 follows: 22 27 473.44 PLUMBING PRODUCTS EFFICIENCY STANDARDS PENALTY. 22 28 1. Thedepartmentstate building code commissioner shall 22 29 adopt ruleswhichthat prescribe water use standards for each 22 30 product classified as a covered product under this section. 22 31 The standards adopted shall be designed to achieve the maximum 22 32 efficiency of water usewhichthat thedepartmentstate 22 33 building code commissioner determines is technologically and 22 34 economically feasible. Thedepartmentstate building code 22 35 commissioner shall consult withthe state building code23 1commissioner,the Iowa department of public health, and the 23 2 plumbing manufacturers' institute, and shall review all 23 3 applicable provisions under chapter 103A and chapter 135 in 23 4 establishing the standards. 23 5 2. A person who knowingly violates this section is subject 23 6 to a civil penalty of not more than one hundred dollars for 23 7 each violation. Local government subdivisions which enforce 23 8 the standards adopted under this section may collect and 23 9 utilize receipts from the penalties imposed for building code 23 10 inspections and enforcement of this section. 23 11 3. For the purposes of this section, "covered products" 23 12 means water closets, urinals, showerheads, lavatory faucets 23 13 and replacement aerators, and kitchen faucets and replacement 23 14 aerators. 23 15 Sec. 31. Section 476.6, Code Supplement 2001, is amended 23 16 by adding the following new subsection: 23 17 NEW SUBSECTION. 16A. POWER PURCHASE CONTRACTS. 23 18 a. A rate-regulated public utility may file with the board 23 19 for approval any contract for the purchase of electric power 23 20 to serve Iowa retail electric consumers if the contract meets 23 21 all of the following conditions: 23 22 (1) The contract term is for a period of five years or 23 23 longer. 23 24 (2) The power is being purchased from an electric power 23 25 generating facility built after 2001. 23 26 b. The board shall issue its decision within ninety days 23 27 after the public utility's filing is deemed complete. 23 28 c. The board shall approve the contract if it finds, after 23 29 a contested case proceeding, that the terms of the contract 23 30 are reasonable and prudent. In determining whether the terms 23 31 of the contract are reasonable and prudent, the board may 23 32 consider, but is not limited to, the following factors: 23 33 (1) The reliability of the new generation in Iowa. 23 34 (2) The economic benefits of the new generation in Iowa. 23 35 (3) The environmental advantages of new or more efficient 24 1 generation. 24 2 (4) The compatibility of the new generation with the 24 3 energy policy of the state. 24 4 d. Board approval of a contract shall constitute a final 24 5 determination of the prudence and reasonableness of the 24 6 contract and its terms. The board, subsequent to approval of 24 7 a contract, may at anytime by order compel the parties to 24 8 comply with the terms of the contract. 24 9 e. The costs of the contract shall be included in the 24 10 public utility's regulated retail electric rates. 24 11 f. Notwithstanding contrary provisions of this subsection, 24 12 any new wholesale contract with any supplier of electric 24 13 generation to provide at least one hundred megawatts of 24 14 electric power to a rate-regulated public utility shall be 24 15 subject to a competitive bidding procedure established by the 24 16 board. The board shall adopt rules pursuant to chapter 17A 24 17 regarding the filing and approval of contracts under this 24 18 subsection, including rules to ensure that a fair and 24 19 competitive bidding process is in place and that criteria for 24 20 approval encourages the purchase of least cost generation. 24 21 g. The board may employ additional temporary staff, or may 24 22 contract for professional services with persons who are not 24 23 state employees, as the board deems necessary to review 24 24 contracts pursuant to this subsection. Beginning July 1, 24 25 2002, there is appropriated out of any funds in the state 24 26 treasury not otherwise appropriated, such sums as may be 24 27 necessary to enable the board to hire additional staff and 24 28 contract for services under this subsection. The costs of the 24 29 additional staff and services shall be assessed to the 24 30 utilities pursuant to the procedure in section 476.10. 24 31 Sec. 32. Section 476.6, subsection 19, paragraph b, Code 24 32 2001, is amended to read as follows: 24 33 b. A gas and electric utility required to be rate- 24 34 regulated under this chapter shall assess potential energy and 24 35 capacity savings available from actual and projected customer 25 1 usage by applying commercially available technology and 25 2 improved operating practices to energy-using equipment and 25 3 buildings. The utility shall submit the assessment to the 25 4 board. Upon receipt of the assessment, the board shall 25 5consult with the energy bureau of the division of energy and25 6geological resources of the department of natural resources to25 7 develop specific capacity and energy savings performance 25 8 standards for each utility. The utility shall submit an 25 9 energy efficiency plan which shall include economically 25 10 achievable programs designed to attain these energy and 25 11 capacity performance standards. 25 12 Sec. 33. NEW SECTION. 476.48 INCENTIVES FOR ALTERNATE 25 13 ENERGY INVESTMENTS. 25 14 1. For purposes of determining the incentives or 25 15 assistance provided in this section, "eligible business" means 25 16 a business that invests fifty million dollars or more in Iowa 25 17 to construct an alternative energy production facility or 25 18 small hydro facility, and has been approved to receive 25 19 incentives and assistance by the board pursuant to 25 20 application. 25 21 2. The incentives and assistance provided under this 25 22 section for eligible businesses shall be for a period not to 25 23 exceed ten years and shall include all of the following: 25 24 a. Sales, services, and use tax refund, as provided in 25 25 section 15.331A, as if the eligible business were an eligible 25 26 business under chapter 15, subchapter II, part 13. 25 27 b. Investment tax credit, as provided in section 15.333, 25 28 as if the eligible business were an eligible business under 25 29 chapter 15, subchapter II, part 13. The investment tax credit 25 30 can be used as a credit against income tax under chapter 422, 25 31 franchise tax imposed upon financial institutions pursuant to 25 32 section 422.60, or premium tax imposed upon insurance 25 33 companies pursuant to chapter 432. 25 34 c. Research activities credit, as provided in section 25 35 15.335, as if the eligible business were an eligible business 26 1 under chapter 15, subchapter II, part 13. 26 2 d. The county or city for which an eligible business is 26 3 certified may exempt from all property taxation all or a 26 4 portion of the value added to the property upon which an 26 5 eligible business locates or expands and which is used in the 26 6 operation of the eligible business. The amount of value added 26 7 for purposes of this paragraph shall be the amount of the 26 8 increase in assessed valuation of the property following the 26 9 location or expansion of the business. If an exemption 26 10 provided pursuant to this paragraph is made applicable to only 26 11 a portion of the property, the definition of that subset of 26 12 eligible property must be by uniform criteria that further 26 13 some planning objective established by the city or county 26 14 zoning commission and approved by the eligible city or county. 26 15 The exemption may be allowed for a period not to exceed ten 26 16 years beginning the year the eligible business enters into an 26 17 agreement with the county or city to locate or expand 26 18 operations. 26 19 Sec. 34. NEW SECTION. 476.48A DEFINITIONS. 26 20 As used in this section and section 476.48B, unless the 26 21 context otherwise provides: 26 22 1. "Local governing body" means the council, board of 26 23 supervisors, or other legislative body charged with governing 26 24 the municipality or other political subdivision. 26 25 2. "Low or moderate income families" means those families, 26 26 including single person households, earning no more than 26 27 eighty percent of the higher of the median family income of 26 28 the county or the statewide nonmetropolitan area as determined 26 29 by the latest United States department of housing and urban 26 30 development, section 8 income guidelines. 26 31 3. "Real property" shall include all lands, including 26 32 improvements and fixtures thereon, and property of any nature 26 33 appurtenant thereto, or used in connection therewith, and 26 34 every estate, interest, right and use, legal or equitable, 26 35 therein, including terms for years and liens by way of 27 1 judgment, mortgage or otherwise. 27 2 4. "Renewable energy zone" means an area, or combination 27 3 of areas, which the local governing body designates as 27 4 appropriate for a renewable energy zone project. 27 5 5. "Renewable energy zone plan" means a plan for the 27 6 development, redevelopment, improvement, or rehabilitation of 27 7 a designated renewable energy zone, as it exists from time to 27 8 time. The plan shall meet the following requirements: 27 9 a. Conform to the general plan for the local governing 27 10 body. 27 11 b. Be sufficiently complete to indicate the real property 27 12 located in the renewable energy zone to be acquired for the 27 13 proposed development, redevelopment, improvement, or 27 14 rehabilitation, and to indicate any zoning district changes, 27 15 existing and future land uses, and the local objectives 27 16 respecting development, redevelopment, improvement, or 27 17 rehabilitation related to the future land use plan, and need 27 18 for improved traffic, public transportation, public utilities, 27 19 recreational and community facilities, and other public 27 20 improvements within the renewable energy zone. 27 21 c. If the plan includes a provision for the division of 27 22 taxes as provided in section 476.48B, the plan shall also 27 23 include a list of the current general obligation debt of the 27 24 local governing body, the current constitutional debt limit of 27 25 the local governing body, and the proposed amount of 27 26 indebtedness to be incurred, including loans, advances, 27 27 indebtedness, or bonds that qualify for payment from the 27 28 special fund referred to in section 476.48B, subsection 2. 27 29 6. "Renewable energy zone project" may include 27 30 undertakings and activities of a local governing body in a 27 31 renewable energy zone for the development of alternate energy, 27 32 may include the designation and development of an economic 27 33 development area in a renewable energy zone, and may involve 27 34 redevelopment in a renewable energy zone, or rehabilitation or 27 35 conservation in a renewable energy zone, or any combination or 28 1 part thereof in accordance with a renewable energy zone plan. 28 2 The undertakings and activities may include: 28 3 a. Acquisition of a slum area, blighted area, economic 28 4 development area, or portion of the areas. 28 5 b. Demolition and removal of buildings and improvements. 28 6 c. Installation, construction, or reconstruction of 28 7 streets, utilities, parks, playgrounds, and other improvements 28 8 necessary for carrying out the objectives of the renewable 28 9 energy zone in accordance with the renewable energy zone plan. 28 10 d. Disposition of any property acquired in a renewable 28 11 energy zone, including sale, initial leasing, or retention by 28 12 the local governing body itself, at its fair value for uses in 28 13 accordance with the renewable energy zone plan. 28 14 e. Carrying out plans for a program of voluntary or 28 15 compulsory repair and rehabilitation of buildings or other 28 16 improvements in accordance with the renewable energy zone 28 17 plan. 28 18 f. Acquisition of any other real property, where necessary 28 19 to provide land for needed public facilities. 28 20 g. Sale and conveyance of real property in furtherance of 28 21 a renewable energy zone project. 28 22 Sec. 35. NEW SECTION. 476.48B DIVISION OF REVENUE FROM 28 23 TAXATION TAX INCREMENT FINANCING. 28 24 A local governing body may provide by ordinance that taxes 28 25 levied on taxable property in a renewable energy zone each 28 26 year by or for the benefit of the state, city, county, school 28 27 district, or other taxing district, shall be divided as 28 28 follows: 28 29 1. a. Unless otherwise provided in this section, that 28 30 portion of the taxes which would be produced by the rate at 28 31 which the tax is levied each year by or for each of the taxing 28 32 districts upon the total sum of the assessed value of the 28 33 taxable property in the renewable energy zone, as shown on the 28 34 assessment roll as of January 1 of the calendar year preceding 28 35 the first calendar year in which the local governing body 29 1 certifies to the county auditor the amount of loans, advances, 29 2 indebtedness, or bonds payable from the division of property 29 3 tax revenue, shall be allocated to, and when collected be paid 29 4 into, the fund for the respective taxing district as taxes by 29 5 or for the taxing district into which all other property taxes 29 6 are paid. However, the local governing body may choose to 29 7 divide that portion of the taxes which would be produced by 29 8 levying the local governing body's portion of the total tax 29 9 rate levied by or for the local governing body upon the total 29 10 sum of the assessed value of the taxable property in the 29 11 renewable energy zone, as shown on the assessment roll as of 29 12 January 1 of the calendar year preceding the effective date of 29 13 the ordinance and if the local governing body so chooses, an 29 14 affected taxing entity may allow a local governing body to 29 15 divide that portion of the taxes that would be produced by 29 16 levying the affected taxing district's portion of the total 29 17 tax rate levied by or for the affected taxing entity upon the 29 18 total sum of the assessed value of the taxable property in the 29 19 renewable energy zone, as shown on the assessment roll as of 29 20 January 1 of the calendar year preceding the effective date of 29 21 the ordinance. 29 22 b. For the purpose of allocating taxes levied by or for 29 23 any taxing district that did not include the territory in a 29 24 renewable energy zone on the effective date of the ordinance 29 25 or initial adoption of the plan, but to which the territory 29 26 has been annexed or otherwise included after the effective 29 27 date, the assessment roll applicable to property in the 29 28 annexed territory as of January 1 of the calendar year 29 29 preceding the effective date of the ordinance, which amends 29 30 the plan to include the annexed area, shall be used in 29 31 determining the assessed valuation of the taxable property in 29 32 the annexed area. 29 33 c. For the purposes of dividing taxes under section 29 34 260E.4, the applicable assessment roll for purposes of 29 35 paragraph "a" shall be the assessment roll as of January 1 of 30 1 the calendar year preceding the first written agreement 30 2 providing that all or a portion of program costs are to be 30 3 paid for by incremental property taxes. The community college 30 4 shall file a copy of the agreement with the appropriate 30 5 assessor. The assessor may, within fourteen days of such 30 6 filing, physically inspect the applicable taxable business 30 7 property. If upon such inspection the assessor determines 30 8 that there has been a change in the value of the property from 30 9 the value as shown on the assessment roll as of January 1 of 30 10 the calendar year preceding the filing of the agreement and 30 11 such change in value is due to new construction, additions or 30 12 improvements to existing structures, or remodeling of existing 30 13 structures for which a building permit was required, the 30 14 assessor shall promptly determine the value of the property as 30 15 of the inspection in the manner provided in chapter 441 and 30 16 that value shall be included for purposes of the jobs training 30 17 project in the assessed value of the employer's taxable 30 18 business property as shown on the assessment roll as of 30 19 January 1 of the calendar year preceding the filing of the 30 20 agreement. The assessor, within thirty days of such filing, 30 21 shall notify the community college and the employer or 30 22 business of that valuation which shall be included in the 30 23 assessed valuation for purposes of this subsection and section 30 24 260E.4. The value determined by the assessor shall reflect 30 25 the change in value due solely to new construction, additions 30 26 or improvements to existing structures, or remodeling of 30 27 existing structures for which a building permit was required. 30 28 2. That portion of the taxes each year in excess of such 30 29 amount shall be allocated to and when collected be paid into a 30 30 special fund of the local governing body to pay the principal 30 31 of and interest on loans, moneys advanced to, or indebtedness, 30 32 whether funded, refunded, assumed, or otherwise, including 30 33 bonds issued under the authority of section 476.48C, incurred 30 34 by the local governing body to finance or refinance, in whole 30 35 or in part, a renewable energy zone project within the area, 31 1 except that taxes for the regular and voter-approved physical 31 2 plant and equipment levy of a school district imposed pursuant 31 3 to section 298.2 and taxes for the payment of bonds and 31 4 interest of each taxing district must be collected against all 31 5 taxable property within the taxing district without limitation 31 6 by the provisions of this subsection. Such school district 31 7 shall pay over the amount certified by November 1 and May 1 of 31 8 the fiscal year following certification to the school 31 9 district. Unless and until the total assessed valuation of 31 10 the taxable property in a renewable energy zone exceeds the 31 11 total assessed value of the taxable property in such area as 31 12 shown by the last equalized assessment roll referred to in 31 13 subsection 1, all of the taxes levied and collected upon the 31 14 taxable property in the renewable energy zone shall be paid 31 15 into the funds for the respective taxing districts as taxes by 31 16 or for the taxing districts in the same manner as all other 31 17 property taxes. When such loans, advances, indebtedness, and 31 18 bonds, if any, and interest thereon, have been paid, all 31 19 moneys thereafter received from taxes upon the taxable 31 20 property in such renewable energy zone shall be paid into the 31 21 funds for the respective taxing districts in the same manner 31 22 as taxes on all other property. 31 23 3. The portion of taxes mentioned in subsection 2 and the 31 24 special fund into which they shall be paid may be irrevocably 31 25 pledged by a local governing body for the payment of the 31 26 principal and interest on loans, advances, bonds issued under 31 27 the authority of section 476.48C, or indebtedness incurred by 31 28 a local governing body to finance or refinance, in whole or in 31 29 part, the renewable energy zone project within the area. 31 30 4. As used in this section, the word "taxes" includes, but 31 31 is not limited to, all levies on an ad valorem basis upon land 31 32 or real property. 31 33 5. A local governing body shall certify to the county 31 34 auditor on or before December 1 the amount of loans, advances, 31 35 indebtedness, or bonds which qualify for payment from the 32 1 special fund referred to in subsection 2, and the filing of 32 2 the certificate shall make it a duty of the auditor to provide 32 3 for the division of taxes in each subsequent year until the 32 4 amount of the loans, advances, indebtedness, or bonds is paid 32 5 to the special fund. In any year, the county auditor shall, 32 6 upon receipt of a certified request from a local governing 32 7 body filed on or before December 1, increase the amount to be 32 8 allocated under subsection 1 in order to reduce the amount to 32 9 be allocated in the following fiscal year to the special fund, 32 10 to the extent that the local governing body does not request 32 11 allocation to the special fund of the full portion of taxes 32 12 that could be collected. Upon receipt of a certificate from a 32 13 local governing body, the auditor shall mail a copy of the 32 14 certificate to each affected taxing district. 32 15 6. Tax collections within each taxing district may be 32 16 allocated to the entire taxing district, including the taxes 32 17 on the valuations determined under subsection 1 and to the 32 18 special fund created under subsection 2 in the proportion of 32 19 their taxable valuations determined as provided in this 32 20 section. 32 21 Sec. 36. NEW SECTION. 476.48C ISSUANCE OF BONDS. 32 22 1. A local governing body shall have power to periodically 32 23 issue bonds in its discretion to pay the costs of carrying out 32 24 the purposes and provisions of section 476.48B, including, but 32 25 not limited to, the payment of principal and interest upon any 32 26 advances for surveys and planning, and the payment of interest 32 27 on bonds, not to exceed three years from the date the bonds 32 28 are issued. The local governing body shall have power to 32 29 issue refunding bonds for the payment or retirement of such 32 30 bonds previously issued by it. The bonds shall be payable 32 31 solely from the income and proceeds of the fund and portion of 32 32 taxes referred to in section 476.48B, subsection 2, and 32 33 revenues and other funds of the local governing body derived 32 34 from or held in connection with the undertaking and carrying 32 35 out of renewable energy zone projects under section 476.48B. 33 1 The local governing body may pledge to the payment of the 33 2 bonds the fund and portion of taxes referred to in section 33 3 476.48B, subsection 2, and may further secure the bonds by a 33 4 pledge of any loan, grant, or contribution from the federal 33 5 government or other source in aid of any renewable energy zone 33 6 projects of the local governing body, or by a mortgage of any 33 7 such renewable energy zone projects, or any part thereof, 33 8 title of which is vested in the local governing body. 33 9 2. Bonds issued under this section shall not constitute an 33 10 indebtedness within the meaning of any constitutional or 33 11 statutory debt limitation or restriction, and shall not be 33 12 subject to the provisions of any other law or charter relating 33 13 to the authorization, issuance, or sale of bonds. Bonds 33 14 issued under the provisions of this section are declared to be 33 15 issued for an essential public and governmental purpose and, 33 16 together with interest on the bonds and income from the bonds, 33 17 shall be exempted from all taxes. 33 18 3. Bonds issued under this section shall be authorized by 33 19 resolution or ordinance of the local governing body and may be 33 20 issued in one or more series and shall bear such date or 33 21 dates, be payable upon demand or mature at such time or times, 33 22 bear interest at such rate or rates not exceeding that 33 23 permitted by chapter 74A, be in such denomination or 33 24 denominations, be in such form either coupon or registered, 33 25 carry such conversion or registration privileges, have such 33 26 rank or priority, be executed in such manner, be payable in 33 27 such medium of payment, at such place or places, and be 33 28 subject to such terms of redemption, with or without premium, 33 29 be secured in such manner, and have such other 33 30 characteristics, as may be provided by such resolution or 33 31 trust indenture or mortgage issued pursuant thereto. 33 32 Before the local governing body may institute proceedings 33 33 for the issuance of bonds under this section, a notice of the 33 34 proposed action, including a statement of the amount and 33 35 purposes of the bonds and the time and place of the meeting at 34 1 which the local governing body proposes to take action for the 34 2 issuance of the bonds, must be published as provided in 34 3 section 362.3. At the meeting, the local governing body shall 34 4 receive oral or written objections from any resident or 34 5 property owner of the local governing body. After all 34 6 objections have been received and considered, the local 34 7 governing body, at that meeting or any subsequent meeting, may 34 8 take additional action for the issuance of the bonds or 34 9 abandon the proposal to issue the bonds. Any resident or 34 10 property owner of the local governing body may appeal the 34 11 decision of the local governing body to take additional action 34 12 to the district court of the county in which any part of the 34 13 local governing body is located, within fifteen days after the 34 14 additional action is taken. The additional action of the 34 15 local governing body is final and conclusive unless the court 34 16 finds that the local governing body exceeded its authority. 34 17 4. Such bonds may be sold at not less than ninety-eight 34 18 percent of par at public or private sale, or may be exchanged 34 19 for other bonds at not less than ninety-eight percent of par. 34 20 5. In case any of the public officials of the local 34 21 governing body whose signatures appear on any bonds or coupons 34 22 issued under this section shall cease to be such officials 34 23 before the delivery of such bonds, such signatures shall, 34 24 nevertheless, be valid and sufficient for all purposes, the 34 25 same as if such officials had remained in office until such 34 26 delivery. Any provision of any law to the contrary 34 27 notwithstanding, any bonds issued pursuant to this section 34 28 shall be fully negotiable. 34 29 6. In any suit, action, or proceeding involving the 34 30 validity or enforceability of any bond issued under this 34 31 section or the security for such bonds, any such bond reciting 34 32 in substance that it has been issued by the local governing 34 33 body in connection with a renewable energy zone project, as 34 34 defined in section 476.48A, shall be conclusively deemed to 34 35 have been issued for such purpose and such project shall be 35 1 conclusively deemed to have been planned, located, and carried 35 2 out in accordance with the provisions of this section. 35 3 Sec. 37. Section 478.1, Code 2001, is amended to read as 35 4 follows: 35 5 478.1 FRANCHISE. 35 6 1. A person shall not construct, erect, maintain, or 35 7 operate a transmission line, wire, or cablewhichthat is 35 8 capable of operating at an electric voltage ofthirty-four and35 9one-halfsixty-nine kilovolts or more along, over, or across 35 10 any public highway or grounds outside of cities for the 35 11 transmission, distribution, or sale of electric current,35 12 without first procuring from the utilities board within the 35 13 utilities division of the department of commerce a franchise 35 14 granting authority as provided in this chapter.However, a35 15 2. A franchise shall not be required for electric lines 35 16 constructed entirely within the boundaries of property owned 35 17 by a person primarily engaged in the transmission or 35 18 distribution of electric power or entirely within the 35 19 boundaries of property owned by the end user of the electric 35 20 power. 35 21 3. If the transmission line, wire, or cable is capable of 35 22 operating only at an electric voltage of less thanthirty-four35 23and one-halfsixty-nine kilovolts, no franchise is required. 35 24 However, the utilities board shall retain jurisdiction over 35 25 all such lines, wires, or cables. 35 26 4. A person who seeks to construct, erect, maintain, or 35 27 operate a transmission line, wire, or cablewhichthat will 35 28 operate at an electric voltage of less thanthirty-four and35 29one-halfsixty-nine kilovolts outside of cities andwhichthat 35 30 cannot secure the necessary voluntary easements to do so may 35 31 petition the board pursuant to section 478.3, subsection 1, 35 32 for a franchise granting authority for such construction, 35 33 erection, maintenance, or operation, and for the use of the 35 34 right of eminent domain. 35 35 Sec. 38. Section 478.2, Code 2001, is amended to read as 36 1 follows: 36 2 478.2 PETITION FOR FRANCHISE INFORMATIONAL MEETINGS 36 3 HELD. 36 4 1. Any person, corporation, or companyauthorized to 36 5 transact business in the state including cities may file a 36 6 verified petition asking for a franchise to erect, maintain, 36 7 and operate a line or lines for the transmission, 36 8 distribution, use, and sale of electric current outside cities 36 9 and for such purpose to erect, use, and maintain poles, wires, 36 10 guy wires, towers, cables, conduits, and other fixtures and 36 11 appliances necessary for conducting electric current for 36 12 light, heat, or power over, along, and across any public 36 13 lands, highways, streams, or the lands of any person, company, 36 14 or corporation, and to acquire necessary interests in real 36 15 estate for such purposes. 36 16 2. As conditions precedent to the filing of a petition 36 17 with the utilities board requesting a franchise for a new 36 18 transmission line, and not less than thirty days prior to the 36 19 filing of such petition, the person, company, or corporation36 20 shall hold informational meetings in each county in which real 36 21 property or rightsthereinwill be affected. 36 22 a. A member of the board, the counsel of the board, or a 36 23 hearing examiner designated by the board shall serve as the 36 24 presiding officer at each meeting, shall present an agenda for 36 25 such meeting which shall include a summary of the legal rights 36 26 of the affected landowners, and shall distribute and review 36 27 the statement of individual rights required under section 36 28 6B.2A, subsection 1. A formal record of the meeting shall not 36 29 be required. 36 30 b. The meeting shall be held at a location reasonably 36 31 accessible to all persons, companies, or corporations which36 32 that may be affected by the granting of the franchise. 36 33 3. The person, company, or corporationseeking the 36 34 franchise for a new transmission line shall give notice of the 36 35 informational meeting to each person, company, or corporation 37 1 determined to be the landowner affected by the proposed 37 2 project and any person, company, or corporation in possession 37 3 of or residing on the property. 37 4 a. For the purposes of this section,"landowner"unless 37 5 the context otherwise requires: 37 6 (1) "Landowner" means a person, company, or corporation37 7 listed on the tax assessment rolls as responsible for the 37 8 payment of real estate taxes imposed on the propertyand37 9"transmission. 37 10 (2) "Transmission line" means any line capable of 37 11 operating atthirty-four and one-halfsixty-nine kilovolts or 37 12 more and extending a distance of not less than one mile across 37 13 privately owned real estate. 37 14 b. The notice shallset forthcontain the following: 37 15 (1) The name of the applicant; state the. 37 16 (2) The applicant's principal place of business; state37 17the. 37 18 (3) A general description and purpose of the proposed 37 19 project; state the. 37 20 (4) The general nature of the right-of-way desired; state37 21the. 37 22 (5) The possibility that the right-of-way may be acquired 37 23 by condemnation if approved by the utilities board; provide a. 37 24 (6) A map showing the route of the proposed project;37 25provide a. 37 26 (7) A description of the process used by the utilities 37 27 board in making a decision on whether to approve a franchise 37 28 or grant the right to take property by eminent domain; advise. 37 29 (8) A statement that the landowner has the right to be 37 30 present at such meetings and to file objections with the 37 31 utilities board; designate the. 37 32 (9) The place and time of the meeting;. 37 33 c. The notice shall be served not less than thirty days 37 34 prior to the time set for the meeting by certified mail with 37 35 return receipt requested;and shall be published once in a 38 1 newspaper of general circulation in the county at least one 38 2 week and not more than three weeks before the time of the 38 3 meeting and such publication shall be considered notice to 38 4 landowners whose residence is not known. 38 5 4.NoA person, company, or corporationseeking rights 38 6 under this chapter shall not negotiate or purchase any 38 7 easements or other interests in land in any county known to be 38 8 affected by the proposed project prior to the informational 38 9 meeting. 38 10 Sec. 39. Section 478.3, subsection 2, unnumbered paragraph 38 11 1, Code Supplement 2001, is amended to read as follows: 38 12 Petitions for transmission lines capable of operating at 38 13thirty-four and one-halfsixty-nine kilovolts or more and 38 14 extending a distance of not less than one mile across 38 15 privately owned real estate shall also set forth an allegation 38 16 that the proposed construction represents a reasonable 38 17 relationship to an overall plan of transmitting electricity in 38 18 the public interest and substantiation of such allegations, 38 19 including but not limited to, a showing of the following: 38 20 Sec. 40. Section 478.13, unnumbered paragraph 2, Code 38 21 2001, is amended to read as follows: 38 22 An extension of a franchise is not required for an electric 38 23 transmission linewhichthat has been permanently retired from 38 24 operation atthirty-four and one-halfsixty-nine kilovolts or 38 25 more but which remains in service at a lower voltage. The 38 26 board shall be notified of changes in operating status. 38 27 Sec. 41. EFFECTIVE DATE. The sections of this Act 38 28 amending chapter 478, being deemed of immediate importance, 38 29 take effect upon enactment. 38 30 Sec. 42. EFFECTIVE AND APPLICABILITY DATES. The sections 38 31 of this Act enacting new sections 476.48 through 476.48C, take 38 32 effect upon enactment and apply retroactively to January 1, 38 33 2002, for tax years beginning on or after that date. 38 34 Sec. 43. Sections 473.15 and 473.17, Code 2001, are 38 35 repealed. 39 1 EXPLANATION 39 2 This bill relates to energy, by providing tax incentives 39 3 for alternate energy projects, providing for approval of 39 4 utility power purchase contracts, changing the voltage 39 5 threshold for electric line franchises, and reassigning 39 6 responsibilities of the energy bureau of the department of 39 7 natural resources. 39 8 The bill adds new Code sections 476.48 through 476.48C, 39 9 which provide various tax credits for businesses that invest 39 10 $50 million or more in Iowa by building an alternate energy 39 11 production facility or small hydro facility, and is approved 39 12 to receive the incentives and assistance by the utilities 39 13 board after submitting an application. The incentive period 39 14 lasts 10 years. The tax incentives in new Code section 476.48 39 15 may include a property tax exemption for the value added to 39 16 the property, if so exempted by the city or county where the 39 17 business is located. 39 18 New Code section 476.48B provides for tax increment 39 19 financing (TIF) for renewable energy zones, constructed 39 20 similarly to the existing TIF statute for urban renewal 39 21 districts in Code section 403.19. Definitions for the new 39 22 Code section are contained in Code section 476.48A, and 39 23 bonding provisions are provided in Code section 476.48C. New 39 24 Code sections 476.48 through 476.48C take effect upon 39 25 enactment, and apply retroactively to January 1, 2002, for tax 39 26 years beginning on or after that date. 39 27 The bill adds a new subsection to Code section 476.6 39 28 regarding board approval of contracts to purchase power by 39 29 rate-regulated public utilities. If the contract meets all of 39 30 the following criteria, the utility shall file the contract 39 31 with the board, and may recover the costs of the contract in 39 32 regulated retail electric rates: (1) the contract is for five 39 33 years or longer; (2) the power is being purchased from an 39 34 electric power generation facility built after 2001. The 39 35 board shall approve the contract if, after a contested case 40 1 proceeding, it finds that the terms of the contract are 40 2 reasonable and prudent. Approval by the board shall 40 3 constitute a final determination of the prudence and 40 4 reasonableness of the contract and its terms, and the board 40 5 may order the parties to comply with the terms of the 40 6 contract. The board is authorized to contract for additional 40 7 temporary staff as necessary to review such contracts. Any 40 8 new wholesale contract for 100 megawatts or more is subject to 40 9 competitive bidding regulations established by the board. 40 10 The bill also increases the transmission line franchise 40 11 requirement threshold in Code chapter 478 from 34.5 kilovolts 40 12 to 69 kilovolts, by making changes in Code sections 478.1, 40 13 478.2, 478.3, and 478.13. The bill divides some existing Code 40 14 sections into subsections, paragraphs, and subparagraphs, and 40 15 makes some grammatical changes. The bill deletes several 40 16 redundant references to "person, company or corporation" in 40 17 Code section 478.2, using instead the simpler "person", which 40 18 is defined in Code section 4.1, subsection 20, as an 40 19 "individual, corporation, limited liability company, 40 20 government or governmental subdivision or agency, business 40 21 trust, estate, trust, partnership or association, or any other 40 22 legal entity". This portion of the bill is effective upon 40 23 enactment. 40 24 The bill also reassigns the responsibilities of the energy 40 25 bureau of the department of natural resources, renames the 40 26 energy and geological resources division, and removes 40 27 authority over Code chapter 473 from the department of natural 40 28 resources. 40 29 Most of the energy responsibilities under Code chapter 473 40 30 are reassigned to the utilities board within the utilities 40 31 division of the department of commerce, and appropriate 40 32 changes are made to that effect throughout Code chapter 473. 40 33 Certain emergency energy functions in Code sections 473.8 and 40 34 473.10 are assigned to the emergency management division of 40 35 the department of public defense. Duties regarding monthly 41 1 fuel price surveys and sharing of information regarding fuel 41 2 allocation are assigned to the department of agriculture and 41 3 land stewardship under new Code section 473.7A, moved from 41 4 former subsections of Code section 473.7. The state building 41 5 code commissioner is reassigned responsibility for building 41 6 efficiency rating systems under Code section 473.40, exit 41 7 signs under Code section 473.42, and efficient plumbing 41 8 products under Code section 473.44. 41 9 LSB 6354YC 79 41 10 jj/cls/14
Text: HSB00666 Text: HSB00668 Text: HSB00600 - HSB00699 Text: HSB Index Bills and Amendments: General Index Bill History: General Index
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