Senate File 2311 H-8334 Amend Senate File 2311, as amended, passed, and reprinted by 1 the Senate, as follows: 2 1. Page 2, after line 17 by inserting: 3 < Sec. ___. NEW SECTION . 385.1 Definitions. 4 As used in this chapter, unless the context otherwise 5 requires: 6 1. “Board” means an energy investment district board 7 appointed pursuant to this chapter. 8 2. “Energy investment” means an acquisition, installation, 9 or modification benefitting private property, except 10 residential property with fewer than three residential units, 11 that is intended to reduce energy consumption or energy costs, 12 or both, or is intended to provide or allow for the use of 13 alternate and renewable energy. The term includes but is not 14 limited to the following measures: 15 a. Insulating walls, roofs, attics, floors, foundations, and 16 heating and cooling distribution systems. 17 b. Repairing, replacing, or installing storm windows 18 and doors, multiglazed windows and doors, heat-absorbing or 19 heat-reflective windows and doors, and other window and door 20 improvements designed to reduce energy consumption. 21 c. Constructing or reconstructing roofs designed to reduce 22 energy consumption or support additional loads necessitated by 23 other energy investments. 24 d. Installing energy control and measurement devices. 25 e. Heating, ventilating, or air conditioning distribution 26 system modifications and replacements. 27 f. Caulking and weatherstripping. 28 g. Installing lighting fixtures that result in increased 29 energy efficiency of the lighting system. 30 h. Installing water heating systems, elevators, and 31 escalators that result in increased energy efficiency. 32 i. Repairing, replacing, or installing energy recovery 33 systems. 34 j. Repairing, replacing, or installing daylighting systems. 35 -1- SF2311.4995 (2) 87 gh/rn 1/ 8 #1.

k. Repairing, replacing, or installing energy systems that 1 provide energy from alternate or renewable energy, including 2 solar, wind, biomass, geothermal, or cogeneration. 3 l. Repairing, replacing, or installing facilities or 4 fixtures providing for water conservation or pollutant control. 5 m. Repairing, replacing, or installing an energy investment 6 related item so long as the cost of the energy investment 7 related item does not exceed twenty-five percent of the total 8 cost of the project. 9 3. “Energy investment related item” means a repair, 10 replacement, improvement, or modification to real property 11 that is necessary or desirable in conjunction with an energy 12 investment. The term includes but is not limited to structural 13 support improvements and the repair or replacement of any 14 building components, paved surfaces, or fixtures disrupted or 15 altered by the installation of an energy investment. 16 4. “Project” means one or more energy investments to be 17 installed on a property. 18 Sec. ___. NEW SECTION . 385.2 Energy investment district 19 created. 20 1. A county or city may create an energy investment district 21 pursuant to this chapter in order to provide financing for 22 energy investment projects to benefit real property in the 23 district. 24 2. One or more counties and one or more cities within 25 those counties may create, by chapter 28E agreement, an energy 26 investment district pursuant to this chapter in order to 27 provide financing for energy investment projects to benefit 28 real property in the district. The agreement creating the 29 energy investment district shall specify the geographic 30 boundaries of the district. 31 Sec. ___. NEW SECTION . 385.3 Energy investment district 32 board —— membership —— powers. 33 1. The governing bodies of the counties and cities 34 participating in an energy investment district shall appoint a 35 -2- SF2311.4995 (2) 87 gh/rn 2/ 8

board to manage and administer the energy investment district. 1 An energy investment district board shall consist of at least 2 three members, but if the district is created pursuant to 3 section 385.2, subsection 2, in no case shall there be fewer 4 members than the number of participating cities and counties. 5 The agreement creating the energy investment district shall set 6 the term length of board members. 7 2. A board shall have and may exercise the powers and duties 8 necessary for management and administration of the energy 9 investment district as such powers and duties are described 10 in the agreement, including but not limited to the following 11 express powers and duties: 12 a. To adopt, amend, and repeal bylaws consistent with the 13 provisions of this chapter. 14 b. To adopt an official seal. 15 c. To sue and be sued in all courts. 16 d. To make and enter into contracts with public and private 17 entities. 18 e. To accept grants, guarantees, and donations of property, 19 labor, services, and other items of value from a public or 20 private source. 21 f. To employ or contract for such managerial, legal, 22 technical, clerical, accounting, or other assistance it 23 deems advisable. However, the board shall not enter into any 24 arrangement that results in an exclusive lender, underwriter, 25 or other funding partner for all projects funded by the board. 26 g. To finance projects under assessment contracts. 27 h. To levy and collect special assessments under an 28 assessment contract with a property owner. 29 i. To borrow money from a public or private source and issue 30 bonds and provide security for the repayment of such bonds. 31 j. To charge and collect fees pursuant to section 385.5. 32 k. To invest funds not required for immediate disbursement, 33 subject to section 28E.5, subsection 2. 34 3. A board shall exist for a minimum duration necessary to 35 -3- SF2311.4995 (2) 87 gh/rn 3/ 8

finance any assessment contracts that the board enters into 1 pursuant to section 385.4. 2 Sec. ___. NEW SECTION . 385.4 Project financing requirements 3 —— assessment contracts. 4 1. A board may finance a project if the following criteria 5 are met: 6 a. There are sufficient resources to complete the project. 7 b. The estimated monetary benefit, as determined by the 8 board after consultation with an outside expert, and including 9 but not limited to energy cost savings, maintenance, and other 10 property operating savings expected from the project during the 11 financing period is equal to or greater than the principal and 12 interest cost of the project, including special assessments and 13 any applicable fees. 14 c. The project complies with the ordinances and regulations 15 of the county or city where the property is located, including 16 but not limited to such ordinances and regulations concerning 17 zoning, subdivision of property, building, fire safety, and 18 historic or architectural review. 19 2. A board shall finance a project under an assessment 20 contract. An assessment contract shall be executed by the 21 board and the property owner or owners and shall include the 22 following components: 23 a. A description of the project, including the estimated 24 cost of the project and a description of the estimated savings, 25 prepared in accordance with standards accepted by the board. 26 b. A mechanism for verifying the final costs of the project 27 upon its completion and ensuring that any amounts advanced, 28 financed, or otherwise provided by the board will not exceed 29 the final cost of the project. 30 c. An agreement by the property owner to pay special 31 assessments and any applicable fees for a period not to exceed 32 the weighted average useful life of the project, as specified 33 in the assessment contract. 34 d. An assessment schedule adopted by the board by 35 -4- SF2311.4995 (2) 87 gh/rn 4/ 8

resolution, stating the number of annual installments due, 1 stating the time when assessments and any applicable fees are 2 payable, and providing for interest on all unpaid installments 3 and fees at a rate not exceeding that permitted by chapter 74A. 4 e. A statement that the obligations provided in the 5 assessment contract, including the obligation to pay special 6 assessments and any applicable fees charged, are a covenant 7 that shall run with the land and be obligations upon future 8 owners of such property. 9 f. An acknowledgment that the subdivision of property 10 subject to the assessment contract shall require the assessment 11 contract or an amendment to the contract to divide the total 12 special assessment and any applicable fees charged due between 13 the newly subdivided parcels in proportion to the benefit 14 realized by each subdivided parcel. 15 g. An acknowledgment from all entities holding mortgages on 16 the real property, or the contract seller under a real estate 17 contract, to be assessed under the assessment contract that 18 such interest holders have consented to the levy and collection 19 of the special assessments and any applicable fees charged, as 20 described in the assessment contract. 21 3. a. A board shall provide a copy of a signed assessment 22 contract to the county or city assessor, as appropriate, and to 23 the county auditor of the county where the property is located 24 and shall file for recording a copy of the assessment contract 25 with the county recorder. 26 b. The city clerk or county auditor, as appropriate, shall 27 certify the assessment schedule to the treasurer of each county 28 where the property is located. The county treasurer shall 29 enter on the county system the amounts to be assessed against 30 the property, as certified. 31 4. A board may enter into more than one assessment contract 32 with respect to a single parcel of real property, so long as 33 each assessment contract relates to a separate project. 34 5. A board shall determine an inspection procedure to 35 -5- SF2311.4995 (2) 87 gh/rn 5/ 8

be utilized upon completion of an energy investment financed 1 pursuant to this chapter. 2 Sec. ___. NEW SECTION . 385.5 Special assessments —— fees 3 —— delinquency. 4 1. The total special assessments levied by a board under an 5 assessment contract shall not exceed the sum of the cost of the 6 project, including any energy audits or inspections or portions 7 thereof financed by the board, plus interest. 8 2. In addition to special assessments provided under 9 subsection 1, a board may also charge a fee of up to one percent 10 of the total cost of a project, which fee may not exceed twenty 11 thousand dollars per project. Such fee shall be charged in 12 connection with administration of the assessment contract 13 and with any technical, consultative, or project assistance 14 services required. A fee charged under this subsection shall 15 be included in an assessment contract provided under section 16 385.4. 17 3. Special assessments levied and any applicable fees 18 charged by a board under an assessment contract shall be 19 levied, charged, and collected in the manner as provided in the 20 assessment contract and with the same priority as ad valorem 21 property taxes. 22 4. a. If special assessments and any applicable fees are 23 not paid within the time period set forth in the assessment 24 contract, such special assessments and fees shall be considered 25 delinquent. Delinquent special assessments and fees shall 26 become a lien on the property against which the special 27 assessments were levied and the fees charged. A board may 28 collect delinquent special assessments and fees as if the board 29 were a county treasurer pursuant to sections 445.3 and 445.4, 30 except that the property shall not be subject to sale for 31 delinquent taxes under chapter 446. 32 b. Special assessments and any applicable fees that are not 33 delinquent shall not be accelerated as part of any action or 34 proceeding to collect delinquent special assessments or fees. 35 -6- SF2311.4995 (2) 87 gh/rn 6/ 8

Upon the sale of the real property subject to an assessment 1 contract, any remaining special assessments and applicable fees 2 shall be collected for the remainder of the assessment contract 3 term from a subsequent owner of the real property, including 4 an owner that is the state or any political subdivision of the 5 state. 6 Sec. ___. NEW SECTION . 385.6 Bonds issued. 7 1. A board may, by resolution, authorize and issue bonds 8 payable from the proceeds of the special assessments and any 9 other revenues collected. Such bonds may bear dates, bear 10 interest at rates not exceeding those permitted by chapter 74A, 11 mature in one or more installments, be in either coupon or 12 registered form, carry registration and conversion privileges, 13 be payable as to principal and interest at times and places, 14 be subject to terms of redemption prior to maturity with or 15 without premium, and be in one or more denominations, all as 16 provided by the resolution of the board authorizing their 17 issuance. 18 2. Bonds issued under this section shall not constitute a 19 debt of the state or of the city or county where the property is 20 located, and the form of such bonds shall contain a statement 21 to that effect. 22 Sec. ___. NEW SECTION . 385.7 Annual reporting. 23 A board shall submit to the governing body of each 24 participating county and city an annual report for the 25 preceding calendar year that includes the following 26 information: 27 1. A description of each project completed, including the 28 physical address of the benefitted property, the name or names 29 of the property owners, an itemized list of the costs incurred 30 under the project, and the name of any contractors used to 31 complete the project. 32 2. For each project in subsection 1, the amount of special 33 assessments due and the amount collected for the fiscal year 34 ending during the preceding calendar year. 35 -7- SF2311.4995 (2) 87 gh/rn 7/ 8

3. A summary of the public benefits resulting from the 1 projects listed in subsection 1, including, without limitation, 2 estimated cumulative energy savings resulting from the 3 projects. 4 4. A description of each assessment contract entered into by 5 the board, including a description of the project and a summary 6 of the assessment schedule. 7 5. The amount of administrative costs incurred by the 8 board. > 9 2. By renumbering as necessary. 10 ______________________________ ISENHART of Dubuque -8- SF2311.4995 (2) 87 gh/rn 8/ 8 #2.