Senate File 2311 H-8346 Amend the amendment, H-8340, to Senate File 2311, as 1 amended, passed, and reprinted by the Senate, as follows: 2 1. Page 1, after line 4 by inserting: 3 < Sec. ___. Section 8A.412, subsection 11, Code 2018, is 4 amended to read as follows: 5 11. Professional employees under the supervision of the 6 attorney general, the state public defender, the secretary 7 of state, the auditor of state, the treasurer of state, and 8 the public employment relations board. However, employees of 9 the consumer advocate division of the department of justice, 10 other than the consumer advocate, and administrative law judges 11 appointed or employed by the public employment relations board 12 are subject to the merit system. 13 Sec. ___. Section 12.91, subsection 1, paragraph b, Code 14 2018, is amended to read as follows: 15 b. “Chargeable expenses” means expenses charged by the 16 utilities board and the consumer advocate division of the 17 department of justice under section 476.10 . 18 Sec. ___. Section 15.120, subsection 2, paragraph a, 19 subparagraph (8), Code 2018, is amended by striking the 20 subparagraph. 21 Sec. ___. Section 17A.2, subsection 1, Code 2018, is amended 22 to read as follows: 23 1. “Agency” means each board, commission, department, 24 officer or other administrative office or unit of the state. 25 “Agency” does not mean the general assembly, the judicial branch 26 or any of its components, the office of consumer advocate, 27 the governor, or a political subdivision of the state or its 28 offices and units. Unless provided otherwise by statute, no 29 less than two-thirds of the members eligible to vote of a 30 multimember agency constitute a quorum authorized to act in the 31 name of the agency. 32 Sec. ___. Section 20.4, subsection 9, Code 2018, is amended 33 to read as follows: 34 9. Persons employed by the state department of justice , 35 -1- H8340.5083 (2) 87 gh/rn 1/ 14 #1.

except nonsupervisory employees of the consumer advocate 1 division who are employed primarily for the purpose of 2 performing technical analysis of nonlegal issues . > 3 2. Page 2, after line 21 by inserting: 4 < Sec. ___. Section 68B.35, subsection 2, paragraph e, Code 5 2018, is amended to read as follows: 6 e. Members of the state banking council, the Iowa ethics 7 and campaign disclosure board, the credit union review board, 8 the economic development authority, the employment appeal 9 board, the environmental protection commission, the health 10 facilities council, the Iowa finance authority, the Iowa public 11 employees’ retirement system investment board, the board of 12 the Iowa lottery authority, the natural resource commission, 13 the board of parole, the petroleum underground storage tank 14 fund board, the public employment relations board, the state 15 racing and gaming commission, the state board of regents, the 16 transportation commission, the office of consumer advocate, the 17 utilities board, the Iowa telecommunications and technology 18 commission, and any full-time members of other boards and 19 commissions as defined under section 7E.4 who receive an annual 20 salary for their service on the board or commission. The Iowa 21 ethics and campaign disclosure board shall conduct an annual 22 review to determine if members of any other board, commission, 23 or authority should file a statement and shall require the 24 filing of a statement pursuant to rules adopted pursuant to 25 chapter 17A . 26 Sec. ___. Section 422.7, subsection 2, paragraph d, Code 27 2018, is amended to read as follows: 28 d. Iowa utility board and Iowa consumer advocate building 29 project bonds pursuant to section 12.91, subsection 9 . 30 Sec. ___. Section 474.1, subsection 3, Code 2018, is amended 31 to read as follows: 32 3. As used in this chapter and chapters 475A, 476 , 476A , 33 478 , 479 , 479A , and 479B , “division” and “utilities division” 34 mean the utilities division of the department of commerce. > 35 -2- H8340.5083 (2) 87 gh/rn 2/ 14 #2.

3. Page 3, lines 2 and 3, by striking < and the office of 1 consumer advocate, > 2 4. Page 4, after line 9 by inserting: 3 < Sec. ___. Section 476.1B, subsection 1, paragraphs a and l, 4 Code 2018, are amended to read as follows: 5 a. Assessment of fees for the support of the division 6 and the office of consumer advocate, as set forth in section 7 476.10 . 8 l. Filing energy efficiency plans and energy efficiency 9 results with the board. The energy efficiency plans as a whole 10 shall be cost-effective. The board may permit these utilities 11 to file joint plans. The board shall periodically report the 12 energy efficiency results including energy savings of each of 13 these utilities to the general assembly. > 14 5. Page 4, after line 11 by inserting: 15 < Sec. ___. Section 476.1C, subsection 2, Code 2018, is 16 amended to read as follows: 17 2. If, as a result of a review of a proposed new or changed 18 rate, charge, schedule, or regulation of a gas public utility 19 having fewer than two thousand customers, the consumer advocate 20 alleges in a filing with the board has reason to believe that 21 the utility rates are excessive, the disputed amounts shall be 22 specified by the consumer advocate in the filing in a filing 23 by the board . The gas public utility shall, within the time 24 prescribed by the board, file a bond or undertaking approved by 25 the board conditioned upon the refund in a manner prescribed 26 by the board of amounts collected after the date of the filing 27 which are in excess of rates or charges finally determined by 28 the board to be lawful. If after formal proceeding and hearing 29 pursuant to section 476.6 the board finds that the utility 30 rates are unlawful, the board shall order a refund, with 31 interest, of amounts collected after the date of the filing 32 of the petition that are determined to be in excess of the 33 amounts which would have been collected under the rates finally 34 approved. However, the board shall not order a refund that is 35 -3- H8340.5083 (2) 87 gh/rn 3/ 14 #3. #4. #5.

greater than the amount specified in the petition filing , plus 1 interest. If the board fails to render a decision within ten 2 months following the date of the filing of the petition , the 3 board shall not order a refund of any excess amounts that are 4 collected after the expiration of that ten-month period and 5 prior to the date the decision is rendered. > 6 6. Page 4, after line 13 by inserting: 7 < Sec. ___. Section 476.3, subsections 1 and 2, Code 2018, 8 are amended to read as follows: 9 1. A public utility shall furnish reasonably adequate 10 service at rates and charges in accordance with tariffs filed 11 with the board. When there is filed with the board by any 12 person or body politic, or filed by the board upon its own 13 motion, a written complaint requesting the board to determine 14 the reasonableness of the rates, charges, schedules, service, 15 regulations, or anything done or omitted to be done by a 16 public utility subject to this chapter in contravention of 17 this chapter , the written complaint shall be forwarded by 18 the board to the public utility, which shall be called upon 19 to satisfy the complaint or to answer it in writing within a 20 reasonable time to be specified by the board. Copies of the 21 written complaint forwarded by the board to the public utility 22 and copies of all correspondence from the public utility in 23 response to the complaint shall be provided by the board in 24 an expeditious manner to the consumer advocate. If the board 25 determines the public utility’s response is inadequate and 26 there appears to be any reasonable ground for investigating 27 the complaint, the board shall promptly initiate a formal 28 proceeding. If the consumer advocate determines the public 29 utility’s response to the complaint is inadequate, the consumer 30 advocate may file a petition with the board which shall 31 promptly initiate a formal proceeding if the board determines 32 that there is any reasonable ground for investigating the 33 complaint. The complainant or the public utility also may 34 petition the board to initiate a formal proceeding which 35 -4- H8340.5083 (2) 87 gh/rn 4/ 14 #6.

petition shall be granted if the board determines that there 1 is any reasonable ground for investigating the complaint. The 2 formal proceeding may be initiated at any time by the board on 3 its own motion. If a proceeding is initiated upon petition 4 filed by the consumer advocate, complainant , or the public 5 utility, or upon the board’s own motion, the board shall set 6 the case for hearing and give notice as it deems appropriate. 7 When the board, after a hearing held after reasonable notice, 8 finds a public utility’s rates, charges, schedules, service, 9 or regulations are unjust, unreasonable, discriminatory, or 10 otherwise in violation of any provision of law, the board 11 shall determine just, reasonable, and nondiscriminatory rates, 12 charges, schedules, service, or regulations to be observed and 13 enforced. 14 2. If, as a result of a review procedure conducted under 15 section 476.31 , a review conducted under section 476.32 , a 16 special audit, or an investigation by division staff, or an 17 investigation by the consumer advocate, a petition is filed 18 with the board by the consumer advocate, alleging the board 19 has reason to believe that a utility’s rates are excessive, 20 the disputed amount shall be specified in the petition in a 21 filing by the board . The public utility shall, within the time 22 prescribed by the board, file a bond or undertaking approved by 23 the board conditioned upon the refund in a manner prescribed by 24 the board of amounts collected after the date of the filing of 25 the petition in excess of rates or charges finally determined 26 by the board to be lawful. If upon hearing the board finds 27 that the utility’s rates are unlawful, the board shall order 28 a refund, with interest, of amounts collected after the date 29 of the filing of the petition that are determined to be in 30 excess of the amounts which would have been collected under 31 the rates finally approved. However, the board shall not 32 order a refund that is greater than the amount specified in 33 the petition filing , plus interest, and if the board fails 34 to render a decision within ten months following the date of 35 -5- H8340.5083 (2) 87 gh/rn 5/ 14

filing of the petition , the board shall not order a refund of 1 any excess amounts that are collected after the expiration of 2 that ten-month period and prior to the date the decision is 3 rendered. > 4 7. Page 9, lines 1 and 2, by striking < or the office of the 5 consumer advocate > and inserting < or the office of the consumer 6 advocate > 7 8. Page 10, after line 7 by inserting: 8 < Sec. ___. Section 476.10, subsections 1, 3, and 4, Code 9 2018, are amended to read as follows: 10 1. a. In order to carry out the duties imposed upon 11 it by law, the board may, at its discretion, allocate and 12 charge directly the expenses attributable to its duties 13 to the person bringing a proceeding before the board or to 14 persons participating in matters before the board. The board 15 shall ascertain the certified expenses incurred and directly 16 chargeable by the consumer advocate division of the department 17 of justice in the performance of its duties. The board and the 18 consumer advocate separately may decide not to charge expenses 19 to persons who, without expanding the scope of the proceeding 20 or matter, intervene in good faith in a board proceeding 21 initiated by a person subject to the board’s jurisdiction , 22 the consumer advocate, or the board on its own motion. For 23 assessments in any proceedings or matters before the board, the 24 board and the consumer advocate separately may consider the 25 financial resources of the person, the impact of assessment on 26 participation by intervenors, the nature of the proceeding or 27 matter, and the contribution of a person’s participation to the 28 public interest. The board may present a bill for expenses 29 under this subsection to the person, either at the conclusion 30 of a proceeding or matter, or from time to time during its 31 progress. Presentation of a bill for expenses under this 32 subsection constitutes notice of direct assessment and request 33 for payment in accordance with this section . 34 b. The board shall ascertain the total of the division’s 35 -6- H8340.5083 (2) 87 gh/rn 6/ 14 #7. #8.

expenses incurred during each fiscal year in the performance 1 of its duties under law. The board shall add to the total of 2 the division’s expenses the certified expenses of the consumer 3 advocate as provided under section 475A.6 . The board shall 4 deduct all amounts charged directly to any person from the 5 total expenses of the board and the consumer advocate . The 6 board may assess the amount remaining after the deduction 7 to all persons providing service over which the board has 8 jurisdiction in proportion to the respective gross operating 9 revenues of such persons from intrastate operations during the 10 last calendar year over which the board has jurisdiction. For 11 purposes of determining gross operating revenues under this 12 section , the board shall not include gross receipts received 13 by a cooperative corporation or association for wholesale 14 transactions with members of the cooperative corporation 15 or association, provided that the members are subject to 16 assessment by the board based upon the members’ gross operating 17 revenues, or provided that such a member is an association 18 whose members are subject to assessment by the board based upon 19 the members’ gross operating revenues. If any portion of the 20 remainder can be identified with a specific type of utility 21 service, the board shall assess those expenses only to the 22 entities providing that type of service over which the board 23 has jurisdiction. The board may make the remainder assessments 24 under this paragraph on a quarterly basis, based upon estimates 25 of the expenditures for the fiscal year for the utilities 26 division and the consumer advocate . Not more than ninety days 27 following the close of the fiscal year, the utilities division 28 shall conform the amount of the prior fiscal year’s assessments 29 to the requirements of this paragraph. For gas and electric 30 public utilities exempted from rate regulation pursuant to 31 this chapter , the remainder assessments under this paragraph 32 shall be computed at one-half the rate used in computing the 33 assessment for other persons. 34 3. Whenever the board shall deem it necessary in order 35 -7- H8340.5083 (2) 87 gh/rn 7/ 14

to carry out the duties imposed upon it in connection with 1 rate regulation under section 476.6 , investigations under 2 section 476.3 , or review proceedings under section 476.31 , 3 the board may employ additional temporary or permanent staff, 4 or may contract with persons who are not state employees for 5 engineering, accounting, or other professional services, or 6 both. The costs of these additional employees and contract 7 services shall be paid by the public utility whose rates 8 are being reviewed in the same manner as other expenses are 9 paid under this section . Beginning on July 1, 1991, there 10 is appropriated out of any funds in the state treasury not 11 otherwise appropriated, such sums as may be necessary to enable 12 the board to hire additional staff and contract for services 13 under this section . The board shall increase quarterly 14 assessments specified in subsection 1 , paragraph “b” , by 15 amounts necessary to enable the board to hire additional staff 16 and contract for services under this section . The authority to 17 hire additional temporary or permanent staff that is granted to 18 the board by this section shall not be subject to limitation 19 by any administrative or executive order or decision that 20 restricts the number of state employees or the filling of 21 employee vacancies, and shall not be subject to limitation 22 by any law of this state that restricts the number of state 23 employees or the filling of employee vacancies unless that 24 law is made applicable to this section by express reference 25 to this section . Before the board expends or encumbers an 26 amount in excess of the funds budgeted for rate regulation and 27 before the board increases quarterly assessments pursuant to 28 this subsection , the director of the department of management 29 shall approve the expenditure or encumbrance. Before approval 30 is given, the director of the department of management shall 31 determine that the expenses exceed the funds budgeted by the 32 general assembly to the board for rate regulation and that 33 the board does not have other funds from which the expenses 34 can be paid. Upon approval of the director of the department 35 -8- H8340.5083 (2) 87 gh/rn 8/ 14

of management the board may expend and encumber funds for 1 the excess expenses, and increase quarterly assessments to 2 raise the additional funds. The board and the office of 3 consumer advocate may add additional personnel or contract 4 for additional assistance to review and evaluate energy 5 efficiency plans and the implementation of energy efficiency 6 programs including, but not limited to, professionally trained 7 engineers, accountants, attorneys, skilled examiners and 8 inspectors, and secretaries and clerks. The board and the 9 office of consumer advocate may also contract for additional 10 assistance in the evaluation and implementation of issues 11 relating to telecommunication competition. The board and the 12 office of the consumer advocate may expend additional sums 13 beyond those sums appropriated. However, the authority to add 14 additional personnel or contract for additional assistance 15 must first be approved by the department of management. The 16 additional sums for energy efficiency shall be provided to the 17 board and the office of the consumer advocate by the utilities 18 subject to the energy efficiency requirements in this chapter . 19 Telephone companies shall pay any additional sums needed for 20 assistance with telecommunication competition issues. The 21 assessments shall be in addition to and separate from the 22 quarterly assessment. 23 4. a. Fees paid to the utilities division shall be 24 deposited in the department of commerce revolving fund created 25 in section 546.12 . These funds shall be used for the payment, 26 upon appropriation by the general assembly, of the expenses of 27 the utilities division and the consumer advocate division of 28 the department of justice . 29 b. The administrator and consumer advocate shall account 30 for receipts and disbursements according to the separate duties 31 imposed upon the utilities and consumer advocate divisions 32 division by the laws of this state and each separate duty shall 33 be fiscally self-sustaining. 34 c. All fees and other moneys collected under this section 35 -9- H8340.5083 (2) 87 gh/rn 9/ 14

and sections 478.4 , 479.16 , and 479A.9 shall be deposited into 1 the department of commerce revolving fund created in section 2 546.12 and expenses required to be paid under this section 3 shall be paid from funds appropriated for those purposes. 4 Sec. ___. Section 476.10B, subsections 1 and 2, Code 2018, 5 are amended to read as follows: 6 1. For the purposes of this section , “building project 7 expenses” means expenses that have been approved by the 8 utilities board for the building and related improvements 9 and furnishings developed under this section and that are 10 considered part of the regulatory expenses charged by the 11 utilities board and the consumer advocate division of the 12 department of justice for carrying out duties under section 13 476.10 . 14 2. The department of administrative services, in 15 consultation with the board and the consumer advocate 16 division of the department of justice , shall provide for the 17 construction of a building to house the board and the division . 18 A building developed under this subsection shall be a model 19 energy-efficient building that may be used as a public example 20 for similar efforts. The building shall comply with the life 21 cycle cost provisions developed pursuant to section 72.5 . The 22 building shall be located on the capitol complex grounds or 23 at another convenient location in the vicinity of the capitol 24 complex grounds. > 25 9. Page 12, after line 18 by inserting: 26 < Sec. ___. Section 476.42, Code 2018, is amended by adding 27 the following new subsections: 28 NEW SUBSECTION . 1A. “Avoided cost” means the cost an 29 electric utility would otherwise have incurred had the electric 30 utility generated the electricity the utility purchased 31 pursuant to a net metering agreement or purchased or obtained 32 the electricity from another source. 33 NEW SUBSECTION . 2A. “Net metering” means the 34 interconnection of an alternate energy production facility 35 -10- H8340.5083 (2) 87 gh/rn 10/ 14 #9.

or small hydro facility with an electric utility whereby 1 electricity produced by the facility and consumed on site 2 offsets electricity that would otherwise be purchased from 3 the electric utility, and excess electricity produced by the 4 facility is transferred to the utility’s electrical grid. 5 Sec. ___. Section 476.43, subsection 2, Code 2018, is 6 amended to read as follows: 7 2. Upon application by the owner or operator of an alternate 8 energy production facility or small hydro facility or any 9 interested party, and subject to subsection 5A, the board shall 10 establish for the affected public utility just and economically 11 reasonable rates for electricity purchased under subsection 12 1 , paragraph “a” . The rates shall be established at levels 13 sufficient to stimulate the development of alternate energy 14 production and small hydro facilities in Iowa and to encourage 15 the continuation of existing capacity from those facilities. 16 Sec. ___. Section 476.43, Code 2018, is amended by adding 17 the following new subsection: 18 NEW SUBSECTION . 5A. A rate-regulated electric utility 19 that purchases electricity from an alternate energy production 20 facility or small hydro facility pursuant to a net metering 21 agreement entered into on or after July 1, 2018, shall do so in 22 accordance with the following conditions: 23 a. Net metering shall be available to any alternate energy 24 production facility or small hydro facility with up to one 25 megawatt of nameplate generating capacity, to offset up to one 26 hundred percent of a net-metered customer’s load. 27 b. Net metering shall be available to all customer classes, 28 provided, however, that each customer’s generation shall only 29 offset energy charges, and shall not offset customer charges 30 or demand charges. 31 c. The utility shall provide for an annual cash-out of net 32 excess generation, or excess credits, at a rate that is based 33 upon, and does not exceed, the utility’s avoided cost. The 34 annual cash-out shall take place during the first billing cycle 35 -11- H8340.5083 (2) 87 gh/rn 11/ 14

of the calendar year. The funds from the cash-out shall be 1 divided equally between the customer and the utility to provide 2 assistance to customers in need, or the customer may elect to 3 allow up to all of the excess credits to be distributed to 4 provide assistance to customers in need. > 5 10. Page 12, after line 30 by inserting: 6 < Sec. ___. Section 476.53, subsection 4, Code 2018, is 7 amended to read as follows: 8 4. The utilities board and the consumer advocate may employ 9 additional temporary staff, or may contract for professional 10 services with persons who are not state employees, as the board 11 and the consumer advocate deem deems necessary to perform 12 required functions as provided in this section , including but 13 not limited to review of power purchase contracts, review of 14 emission plans and budgets, and review of ratemaking principles 15 proposed for construction or lease of a new generating 16 facility. Beginning July 1, 2002, there is appropriated out 17 of any funds in the state treasury not otherwise appropriated, 18 such sums as may be necessary to enable the board and the 19 consumer advocate to hire additional staff and contract for 20 services under this section . The costs of the additional staff 21 and services shall be assessed to the utilities pursuant to the 22 procedure in section 476.10 and section 475A.6 . 23 Sec. ___. Section 476.103, subsection 3, paragraph g, Code 24 2018, is amended to read as follows: 25 g. Procedures for a customer , or service provider , or 26 the consumer advocate to submit to the board complaints of 27 unauthorized changes in service. 28 Sec. ___. Section 477C.5, subsection 2, Code 2018, is 29 amended to read as follows: 30 2. The council shall consist of: 31 a. Six Seven consumers who have communication impairments. 32 b. Two representatives from telephone companies. 33 c. One representative from the office of deaf services of 34 the department of human rights. 35 -12- H8340.5083 (2) 87 gh/rn 12/ 14 #10.

d. One representative from the office of the consumer 1 advocate of the department of justice. 2 e. d. One member of the board or a designee of the board. 3 Sec. ___. Section 546.12, subsections 1 and 2, Code 2018, 4 are amended to read as follows: 5 1. A department of commerce revolving fund is created in 6 the state treasury. The fund shall consist of moneys collected 7 by the banking division; credit union division; utilities 8 division , including moneys collected on behalf of the office 9 of consumer advocate established in section 475A.3 ; and the 10 insurance division of the department; and deposited into an 11 account for that division or office within the fund on a 12 monthly basis. Except as otherwise provided by statute, all 13 costs for operating the office of consumer advocate and the 14 banking division, the credit union division, the utilities 15 division, and the insurance division of the department shall be 16 paid from the division’s accounts within the fund, subject to 17 appropriation by the general assembly. The insurance division 18 shall administer the fund and all other divisions shall work 19 with the insurance division to make sure the fund is properly 20 accounted and reported to the department of management and the 21 department of administrative services. The divisions shall 22 provide quarterly reports to the department of management 23 and the legislative services agency on revenues billed and 24 collected and expenditures from the fund in a format as 25 determined by the department of management in consultation with 26 the legislative services agency. 27 2. To meet cash flow needs for the office of consumer 28 advocate and the banking division, credit union division, 29 utilities division, or the insurance division of the 30 department, the administrative head of that division or 31 office may temporarily use funds from the general fund of the 32 state to pay expenses in excess of moneys available in the 33 revolving fund for that division or office if those additional 34 expenditures are fully reimbursable and the division or office 35 -13- H8340.5083 (2) 87 gh/rn 13/ 14

reimburses the general fund of the state and ensures all 1 moneys are repaid in full by the close of the fiscal year. 2 Notwithstanding any provision to the contrary, the divisions 3 shall, to the fullest extent possible, make an estimate 4 of billings and make such billings as early as possible in 5 each fiscal year, so that the need for the use of general 6 fund moneys is minimized to the lowest extent possible. 7 Periodic billings shall be deemed sufficient to satisfy this 8 requirement. Because any general fund moneys used shall be 9 fully reimbursed, such temporary use of funds from the general 10 fund of the state shall not constitute an appropriation for 11 purposes of calculating the state general fund expenditure 12 limitation pursuant to section 8.54 . 13 Sec. ___. REPEAL. Chapter 475A, Code 2018, is repealed. > 14 11. Page 13, line 13, after << utilities, > by inserting 15 < repealing provisions establishing the office of consumer 16 advocate, > 17 12. By renumbering as necessary. 18 ______________________________ WATTS of Dallas -14- H8340.5083 (2) 87 gh/rn 14/ 14 #11.