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 -1-