Senate Amendment 5385


PAG LIN




     1  1    Amend Senate File 2386, as passed by the Senate, as
     1  2 follows:
     1  3 #1.  Page 1, by striking lines 20 and 21 and
     1  4 inserting the following:
     1  5    <g.  Three individuals representing gas and
     1  6 electric public utilities within this state, comprised
     1  7 of one individual representing rural electric
     1  8 cooperatives, one individual representing municipal
     1  9 utilities, and one individual representing
     1 10 investor=owned utilities.>
     1 11 #2.  Page 4, by inserting after line 11 following:
     1 12    <Sec.    .  Section 476.6, subsection 16, Code
     1 13 Supplement 2007, is amended by adding the following
     1 14 new paragraphs:
     1 15    NEW PARAGRAPH.  bb.  (1)  Gas and electric
     1 16 utilities that are not required to be rate=regulated
     1 17 under this chapter shall assess maximum potential
     1 18 energy and capacity savings available from actual and
     1 19 projected customer usage through cost=effective energy
     1 20 efficiency measures and programs, taking into
     1 21 consideration the utility service area's historic
     1 22 energy load, projected demand, customer base, and
     1 23 other relevant factors.  Each utility shall establish
     1 24 an energy efficiency goal based upon this assessment
     1 25 of potential and shall establish cost=effective energy
     1 26 efficiency programs designed to meet the energy
     1 27 efficiency goal.  Separate goals may be established
     1 28 for various customer groupings.
     1 29    (2)  Energy efficiency programs shall include
     1 30 efficiency improvements to a utility infrastructure
     1 31 and system and activities conducted by a utility
     1 32 intended to enable or encourage customers to increase
     1 33 the amount of heat, light, cooling, motive power, or
     1 34 other forms of work performed per unit of energy used.
     1 35 In the case of a municipal utility, for purposes of
     1 36 this paragraph, other utilities and departments of the
     1 37 municipal utility shall be considered customers to the
     1 38 same extent that such utilities and departments would
     1 39 be considered customers if served by an electric or
     1 40 gas utility that is not a municipal utility.  Energy
     1 41 efficiency programs include activities which lessen
     1 42 the amount of heating, cooling, or other forms of work
     1 43 which must be performed, including but not limited to
     1 44 energy studies or audits, general information,
     1 45 financial assistance, direct rebates to customers or
     1 46 vendors of energy=efficient products, research
     1 47 projects, direct installation by the utility of
     1 48 energy=efficient equipment, direct and indirect load
     1 49 control, time=of=use rates, tree planting programs,
     1 50 educational programs, and hot water insulation
     2  1 distribution programs.
     2  2    (3)  Each utility shall commence the process of
     2  3 determining its cost=effective energy efficiency goal
     2  4 on or before July 1, 2008, shall provide a progress
     2  5 report to the board on or before January 1, 2009, and
     2  6 complete the process and submit a final report to the
     2  7 board on or before January 1, 2010.  The report shall
     2  8 include the utility's cost=effective energy efficiency
     2  9 goal, and for each measure utilized by the utility in
     2 10 meeting the goal, the measure's description, projected
     2 11 costs, and the analysis of its cost=effectiveness.
     2 12 Each utility or group of utilities shall evaluate
     2 13 cost=effectiveness using the cost=effectiveness tests
     2 14 in accordance with section 476.6, subsection 14.
     2 15 Individual utilities or groups of utilities may
     2 16 collaborate in conducting the studies required
     2 17 hereunder and may file a joint report or reports with
     2 18 the board.  However, the board may require individual
     2 19 information from any utility, even if it participates
     2 20 in a joint report.
     2 21    (4)  On January 1 of each even=numbered year,
     2 22 commencing January 1, 2012, gas and electric utilities
     2 23 that are not required to be rate=regulated shall file
     2 24 a report with the board identifying their progress in
     2 25 meeting the energy efficiency goal and any updates or
     2 26 amendments to their energy efficiency plans and goals.
     2 27 Filings made pursuant to this paragraph "bb" shall be
     2 28 deemed to meet the filing requirements of section
     2 29 476.1A, subsection 7, and section 476.1B, subsection
     2 30 1, paragraph "l".
     2 31    NEW PARAGRAPH.  bbb.  (1)  The board shall evaluate
     2 32 the reports required to be filed pursuant to paragraph
     2 33 "b" by gas and electric utilities required to be
     2 34 rate=regulated, and shall submit a report summarizing
     2 35 the evaluation to the general assembly on or before
     2 36 January 1, 2009.
     2 37    (2)  The board shall evaluate the reports required
     2 38 to be filed pursuant to paragraph "bb" by gas and
     2 39 electric utilities that are not required to be
     2 40 rate=regulated, and shall submit a report summarizing
     2 41 the evaluation to the general assembly on or before
     2 42 January 1, 2011.
     2 43    (3)  The reports submitted by the board to the
     2 44 general assembly pursuant to this paragraph "bbb"
     2 45 shall include the goals established by each of the
     2 46 utilities.  The reports shall also include the
     2 47 projected costs of achieving the goals, potential rate
     2 48 impacts, and a description of the programs offered and
     2 49 proposed by each utility or group of utilities, and
     2 50 may take into account differences in system
     3  1 characteristics, including but not limited to sales to
     3  2 various customer classes, age of facilities of new
     3  3 large customers, and heating fuel type.  The reports
     3  4 may contain recommendations concerning the
     3  5 achievability of certain intermediate and long=term
     3  6 energy efficiency goals based upon the results of the
     3  7 assessments submitted by the utilities.
     3  8    Sec.    .  NEW SECTION.  476.44A  TRADING OF
     3  9 CREDITS.
     3 10    The board may establish or participate in a program
     3 11 to track, record, and verify the trading of credits
     3 12 for electricity generated from alternative energy
     3 13 production facilities or renewable energy sources
     3 14 among electric generators, utilities, and other
     3 15 interested entities, within this state and with
     3 16 similar entities in other states.
     3 17    Sec.    .  RENEWABLE ENERGY GENERATION ==
     3 18 COST=EFFECTIVE POTENTIAL STUDY.  The Iowa utility
     3 19 association, in consultation with the Iowa association
     3 20 of electric cooperatives and the Iowa association of
     3 21 municipal utilities, shall conduct a technical study
     3 22 of the potential for achieving or engaging in
     3 23 renewable energy generation on a cost=effective basis
     3 24 by 2025.  The study shall be transmitted to the office
     3 25 of energy independence by December 1, 2008, to be
     3 26 submitted with the energy independence plan required
     3 27 to be submitted by the office to the governor and the
     3 28 general assembly by December 14, 2008.
     3 29    Sec.    .  ENERGY EFFICIENCY INTERIM STUDY
     3 30 COMMITTEE == CONSUMER FOCUS == REQUEST TO ESTABLISH.
     3 31 The legislative council is requested to establish an
     3 32 interim study committee to examine the existence and
     3 33 effectiveness of energy efficiency plans and programs
     3 34 implemented by gas and electric public utilities, with
     3 35 an emphasis on results achieved by current plans and
     3 36 programs from the demand, or customer, perspective,
     3 37 and to make recommendations for additional
     3 38 requirements applicable to energy efficiency plans and
     3 39 programs that would improve such results.  In
     3 40 conducting the study and developing recommendations,
     3 41 the committee shall consider testimony from the Iowa
     3 42 utilities board, rate and nonrate=regulated gas and
     3 43 electric utilities, the consumer advocate, state
     3 44 agencies involved with energy efficiency program
     3 45 administration, environmental groups and associations,
     3 46 and consumers.  The committee shall be composed of ten
     3 47 members, representing both political parties and both
     3 48 houses of the general assembly.  Five members shall be
     3 49 members of the senate, three of whom shall be
     3 50 appointed by the majority leader of the senate and two
     4  1 of whom shall be appointed by the minority leader of
     4  2 the senate.  The other five members shall be members
     4  3 of the house of representatives, three of whom shall
     4  4 be appointed by the speaker of the house of
     4  5 representatives, and two of whom shall be appointed by
     4  6 the minority leader of the house of representatives.
     4  7 The committee shall issue a report of its
     4  8 recommendations to the general assembly by January 15,
     4  9 2009.
     4 10    Sec.    .  EFFECTIVE DATE.  This Act, being deemed
     4 11 of immediate importance, takes effect upon enactment.>
     4 12 #3.  Title page, by striking lines 1 through 5 and
     4 13 inserting the following:  <An Act relating to energy
     4 14 efficiency by establishing a commission on energy
     4 15 efficiency standards and practices, providing for the
     4 16 reporting of energy efficiency results and savings by
     4 17 gas and electric public utilities, specifying
     4 18 procedures for assessing potential energy and capacity
     4 19 savings and developing energy efficiency goals by gas
     4 20 and electric utilities not subject to rate regulation,
     4 21 providing for the establishment or participation in a
     4 22 program to track, record, or verify the trading of
     4 23 credits for electricity generated from specified
     4 24 sources, and providing for the establishment of an
     4 25 interim study committee to conduct an examination of
     4 26 energy efficiency plans and programs with an emphasis
     4 27 on the demand or customer perspective, and providing
     4 28 an effective date.>
     4 29 #4.  By renumbering as necessary.
     4 30 SF 2386.H
     4 31 rn/jg/25

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