H-8346

   Amend  the amendment, H-8340, to Senate File 2311, as amended, passed, and reprinted by the Senate, as follows:
   1.  Page 1, after line 4 by inserting: 
   <Sec. ___.  Section 8A.412, subsection 11, Code 2018, is amended to read as follows:
   11.  Professional employees under the supervision of the attorney general, the state public defender, the secretary of state, the auditor of state, the treasurer of state, and the public employment relations board. However, employees of the consumer advocate division of the department of justice, other than the consumer advocate, and administrative law judges appointed or employed by the public employment relations board are subject to the merit system.
   Sec. ___.  Section 12.91, subsection 1, paragraph b, Code 2018, is amended to read as follows:
   b.  “Chargeable expenses” means expenses charged by the utilities board and the consumer advocate division of the department of justice under section 476.10.
   Sec. ___.  Section 15.120, subsection 2, paragraph a, subparagraph (8), Code 2018, is amended by striking the subparagraph.
   Sec. ___.  Section 17A.2, subsection 1, Code 2018, is amended to read as follows:
   1.  “Agency” means each board, commission, department, officer or other administrative office or unit of the state. “Agency” does not mean the general assembly, the judicial branch or any of its components, the office of consumer advocate, the governor, or a political subdivision of the state or its offices and units. Unless provided otherwise by statute, no less than two-thirds of the members eligible to vote of a multimember agency constitute a quorum authorized to act in the name of the agency.
   Sec. ___.  Section 20.4, subsection 9, Code 2018, is amended to read as follows:
   9.  Persons employed by the state department of justice, except nonsupervisory employees of the consumer advocate division who are employed primarily for the purpose of performing technical analysis of nonlegal issues.>
   2.  Page 2, after line 21 by inserting: 
   <Sec. ___.  Section 68B.35, subsection 2, paragraph e, Code 2018, is amended to read as follows:
   e.  Members of the state banking council, the Iowa ethics and campaign disclosure board, the credit union review board, the economic development authority, the employment appeal board, the environmental protection commission, the health facilities council, the Iowa finance authority, the Iowa public employees’ retirement system investment board, the board of the Iowa lottery authority, the natural resource commission, the board of parole, the petroleum underground storage tank fund board, the public employment relations board, the state racing and gaming commission, the state board of regents, the transportation commission, the office of consumer advocate, the utilities board, the Iowa telecommunications and technology commission, and any full-time members of other boards and commissions as defined under section 7E.4 who receive an annual salary for their service on the board or commission. The Iowa ethics and campaign disclosure board shall conduct an annual review to determine if members of any other board, commission, or authority should file a statement and shall require the filing of a statement pursuant to rules adopted pursuant to chapter 17A.
   Sec. ___.  Section 422.7, subsection 2, paragraph d, Code 2018, is amended to read as follows:
   d.  Iowa utility board and Iowa consumer advocate building project bonds pursuant to section 12.91, subsection 9.
   Sec. ___.  Section 474.1, subsection 3, Code 2018, is amended to read as follows:
   3.  As used in this chapter and chapters 475A, 476, 476A, 478, 479, 479A, and 479B, “division” and “utilities division” mean the utilities division of the department of commerce.>
   3.  Page 3, lines 2 and 3, by striking <and the office of consumer advocate,>
   4.  Page 4, after line 9 by inserting: 
   <Sec. ___.  Section 476.1B, subsection 1, paragraphs a and l, Code 2018, are amended to read as follows:
   a.  Assessment of fees for the support of the division and the office of consumer advocate, as set forth in section 476.10.
   l.  Filing energy efficiency plans and energy efficiency results with the board. The energy efficiency plans as a whole shall be cost-effective. The board may permit these utilities to file joint plans. The board shall periodically report the energy efficiency results including energy savings of each of these utilities to the general assembly.>
   5.  Page 4, after line 11 by inserting: 
   <Sec. ___.  Section 476.1C, subsection 2, Code 2018, is amended to read as follows:
   2.  If, as a result of a review of a proposed new or changed rate, charge, schedule, or regulation of a gas public utility having fewer than two thousand customers, the consumer advocate alleges in a filing with the board has reason to believe that the utility rates are excessive, the disputed amounts shall be specified by the consumer advocate in the filing in a filing by the board. The gas public utility shall, within the time prescribed by the board, file a bond or undertaking approved by the board conditioned upon the refund in a manner prescribed by the board of amounts collected after the date of the filing which are in excess of rates or charges finally determined by the board to be lawful. If after formal proceeding and hearing pursuant to section 476.6 the board finds that the utility rates are unlawful, the board shall order a refund, with interest, of amounts collected after the date of the filing of the petition that are determined to be in excess of the amounts which would have been collected under the rates finally approved. However, the board shall not order a refund that is greater than the amount specified in the petition filing, plus interest. If the board fails to render a decision within ten months following the date of the filing of the petition, the board shall not order a refund of any excess amounts that are collected after the expiration of that ten-month period and prior to the date the decision is rendered.>
   6.  Page 4, after line 13 by inserting: 
   <Sec. ___.  Section 476.3, subsections 1 and 2, Code 2018, are amended to read as follows:
   1.  A public utility shall furnish reasonably adequate service at rates and charges in accordance with tariffs filed with the board. When there is filed with the board by any person or body politic, or filed by the board upon its own motion, a written complaint requesting the board to determine the reasonableness of the rates, charges, schedules, service, regulations, or anything done or omitted to be done by a public utility subject to this chapter in contravention of this chapter, the written complaint shall be forwarded by the board to the public utility, which shall be called upon to satisfy the complaint or to answer it in writing within a reasonable time to be specified by the board. Copies of the written complaint forwarded by the board to the public utility and copies of all correspondence from the public utility in response to the complaint shall be provided by the board in an expeditious manner to the consumer advocate. If the board determines the public utility’s response is inadequate and there appears to be any reasonable ground for investigating the complaint, the board shall promptly initiate a formal proceeding. If the consumer advocate determines the public utility’s response to the complaint is inadequate, the consumer advocate may file a petition with the board which shall promptly initiate a formal proceeding if the board determines that there is any reasonable ground for investigating the complaint. The complainant or the public utility also may petition the board to initiate a formal proceeding which petition shall be granted if the board determines that there is any reasonable ground for investigating the complaint. The formal proceeding may be initiated at any time by the board on its own motion. If a proceeding is initiated upon petition filed by the consumer advocate, complainant, or the public utility, or upon the board’s own motion, the board shall set the case for hearing and give notice as it deems appropriate. When the board, after a hearing held after reasonable notice, finds a public utility’s rates, charges, schedules, service, or regulations are unjust, unreasonable, discriminatory, or otherwise in violation of any provision of law, the board shall determine just, reasonable, and nondiscriminatory rates, charges, schedules, service, or regulations to be observed and enforced.
   2.  If, as a result of a review procedure conducted under section 476.31, a review conducted under section 476.32, a special audit, or an investigation by division staff, or an investigation by the consumer advocate, a petition is filed with the board by the consumer advocate, alleging the board has reason to believe that a utility’s rates are excessive, the disputed amount shall be specified in the petition in a filing by the board. The public utility shall, within the time prescribed by the board, file a bond or undertaking approved by the board conditioned upon the refund in a manner prescribed by the board of amounts collected after the date of the filing of the petition in excess of rates or charges finally determined by the board to be lawful. If upon hearing the board finds that the utility’s rates are unlawful, the board shall order a refund, with interest, of amounts collected after the date of the filing of the petition that are determined to be in excess of the amounts which would have been collected under the rates finally approved. However, the board shall not order a refund that is greater than the amount specified in the petition filing, plus interest, and if the board fails to render a decision within ten months following the date of filing of the petition, the board shall not order a refund of any excess amounts that are collected after the expiration of that ten-month period and prior to the date the decision is rendered.>
   7.  Page 9, lines 1 and 2, by striking <or the office of the consumer advocate> and inserting <or the office of the consumer advocate>
   8.  Page 10, after line 7 by inserting: 
   <Sec. ___.  Section 476.10, subsections 1, 3, and 4, Code 2018, are amended to read as follows:
   1.  a.  In order to carry out the duties imposed upon it by law, the board may, at its discretion, allocate and charge directly the expenses attributable to its duties to the person bringing a proceeding before the board or to persons participating in matters before the board. The board shall ascertain the certified expenses incurred and directly chargeable by the consumer advocate division of the department of justice in the performance of its duties. The board and the consumer advocate separately may decide not to charge expenses to persons who, without expanding the scope of the proceeding or matter, intervene in good faith in a board proceeding initiated by a person subject to the board’s jurisdiction, the consumer advocate, or the board on its own motion. For assessments in any proceedings or matters before the board, the board and the consumer advocate separately may consider the financial resources of the person, the impact of assessment on participation by intervenors, the nature of the proceeding or matter, and the contribution of a person’s participation to the public interest. The board may present a bill for expenses under this subsection to the person, either at the conclusion of a proceeding or matter, or from time to time during its progress. Presentation of a bill for expenses under this subsection constitutes notice of direct assessment and request for payment in accordance with this section.
   b.  The board shall ascertain the total of the division’s expenses incurred during each fiscal year in the performance of its duties under law. The board shall add to the total of the division’s expenses the certified expenses of the consumer advocate as provided under section 475A.6. The board shall deduct all amounts charged directly to any person from the total expenses of the board and the consumer advocate. The board may assess the amount remaining after the deduction to all persons providing service over which the board has jurisdiction in proportion to the respective gross operating revenues of such persons from intrastate operations during the last calendar year over which the board has jurisdiction. For purposes of determining gross operating revenues under this section, the board shall not include gross receipts received by a cooperative corporation or association for wholesale transactions with members of the cooperative corporation or association, provided that the members are subject to assessment by the board based upon the members’ gross operating revenues, or provided that such a member is an association whose members are subject to assessment by the board based upon the members’ gross operating revenues. If any portion of the remainder can be identified with a specific type of utility service, the board shall assess those expenses only to the entities providing that type of service over which the board has jurisdiction. The board may make the remainder assessments under this paragraph on a quarterly basis, based upon estimates of the expenditures for the fiscal year for the utilities division and the consumer advocate. Not more than ninety days following the close of the fiscal year, the utilities division shall conform the amount of the prior fiscal year’s assessments to the requirements of this paragraph. For gas and electric public utilities exempted from rate regulation pursuant to this chapter, the remainder assessments under this paragraph shall be computed at one-half the rate used in computing the assessment for other persons.
   3.  Whenever the board shall deem it necessary in order to carry out the duties imposed upon it in connection with rate regulation under section 476.6, investigations under section 476.3, or review proceedings under section 476.31, the board may employ additional temporary or permanent staff, or may contract with persons who are not state employees for engineering, accounting, or other professional services, or both. The costs of these additional employees and contract services shall be paid by the public utility whose rates are being reviewed in the same manner as other expenses are paid under this section. Beginning on July 1, 1991, there is appropriated out of any funds in the state treasury not otherwise appropriated, such sums as may be necessary to enable the board to hire additional staff and contract for services under this section. The board shall increase quarterly assessments specified in subsection 1, paragraph “b”, by amounts necessary to enable the board to hire additional staff and contract for services under this section. The authority to hire additional temporary or permanent staff that is granted to the board by this section shall not be subject to limitation by any administrative or executive order or decision that restricts the number of state employees or the filling of employee vacancies, and shall not be subject to limitation by any law of this state that restricts the number of state employees or the filling of employee vacancies unless that law is made applicable to this section by express reference to this section. Before the board expends or encumbers an amount in excess of the funds budgeted for rate regulation and before the board increases quarterly assessments pursuant to this subsection, the director of the department of management shall approve the expenditure or encumbrance. Before approval is given, the director of the department of management shall determine that the expenses exceed the funds budgeted by the general assembly to the board for rate regulation and that the board does not have other funds from which the expenses can be paid. Upon approval of the director of the department of management the board may expend and encumber funds for the excess expenses, and increase quarterly assessments to raise the additional funds. The board and the office of consumer advocate may add additional personnel or contract for additional assistance to review and evaluate energy efficiency plans and the implementation of energy efficiency programs including, but not limited to, professionally trained engineers, accountants, attorneys, skilled examiners and inspectors, and secretaries and clerks. The board and the office of consumer advocate may also contract for additional assistance in the evaluation and implementation of issues relating to telecommunication competition. The board and the office of the consumer advocate may expend additional sums beyond those sums appropriated. However, the authority to add additional personnel or contract for additional assistance must first be approved by the department of management. The additional sums for energy efficiency shall be provided to the board and the office of the consumer advocate by the utilities subject to the energy efficiency requirements in this chapter. Telephone companies shall pay any additional sums needed for assistance with telecommunication competition issues. The assessments shall be in addition to and separate from the quarterly assessment.
   4.  a.  Fees paid to the utilities division shall be deposited in the department of commerce revolving fund created in section 546.12. These funds shall be used for the payment, upon appropriation by the general assembly, of the expenses of the utilities division and the consumer advocate division of the department of justice.
   b.  The administrator and consumer advocate shall account for receipts and disbursements according to the separate duties imposed upon the utilities and consumer advocate divisions division by the laws of this state and each separate duty shall be fiscally self-sustaining.
   c.  All fees and other moneys collected under this section and sections 478.4, 479.16, and 479A.9 shall be deposited into the department of commerce revolving fund created in section 546.12 and expenses required to be paid under this section shall be paid from funds appropriated for those purposes.
   Sec. ___.  Section 476.10B, subsections 1 and 2, Code 2018, are amended to read as follows:
   1.  For the purposes of this section, “building project expenses” means expenses that have been approved by the utilities board for the building and related improvements and furnishings developed under this section and that are considered part of the regulatory expenses charged by the utilities board and the consumer advocate division of the department of justice for carrying out duties under section 476.10.
   2.  The department of administrative services, in consultation with the board and the consumer advocate division of the department of justice, shall provide for the construction of a building to house the board and the division. A building developed under this subsection shall be a model energy-efficient building that may be used as a public example for similar efforts. The building shall comply with the life cycle cost provisions developed pursuant to section 72.5. The building shall be located on the capitol complex grounds or at another convenient location in the vicinity of the capitol complex grounds.>
   9.  Page 12, after line 18 by inserting: 
   <Sec. ___.  Section 476.42, Code 2018, is amended by adding the following new subsections:
   NEW SUBSECTION.  1A.  “Avoided cost” means the cost an electric utility would otherwise have incurred had the electric utility generated the electricity the utility purchased pursuant to a net metering agreement or purchased or obtained the electricity from another source.
   NEW SUBSECTION.  2A.  “Net metering” means the interconnection of an alternate energy production facility or small hydro facility with an electric utility whereby electricity produced by the facility and consumed on site offsets electricity that would otherwise be purchased from the electric utility, and excess electricity produced by the facility is transferred to the utility’s electrical grid.
   Sec. ___.  Section 476.43, subsection 2, Code 2018, is amended to read as follows:
   2.  Upon application by the owner or operator of an alternate energy production facility or small hydro facility or any interested party, and subject to subsection 5A, the board shall establish for the affected public utility just and economically reasonable rates for electricity purchased under subsection 1, paragraph “a”. The rates shall be established at levels sufficient to stimulate the development of alternate energy production and small hydro facilities in Iowa and to encourage the continuation of existing capacity from those facilities.
   Sec. ___.  Section 476.43, Code 2018, is amended by adding the following new subsection:
   NEW SUBSECTION.  5A.  A rate-regulated electric utility that purchases electricity from an alternate energy production facility or small hydro facility pursuant to a net metering agreement entered into on or after July 1, 2018, shall do so in accordance with the following conditions:
   a.  Net metering shall be available to any alternate energy production facility or small hydro facility with up to one megawatt of nameplate generating capacity, to offset up to one hundred percent of a net-metered customer’s load.
   b.  Net metering shall be available to all customer classes, provided, however, that each customer’s generation shall only offset energy charges, and shall not offset customer charges or demand charges.
   c.  The utility shall provide for an annual cash-out of net excess generation, or excess credits, at a rate that is based upon, and does not exceed, the utility’s avoided cost. The annual cash-out shall take place during the first billing cycle of the calendar year. The funds from the cash-out shall be divided equally between the customer and the utility to provide assistance to customers in need, or the customer may elect to allow up to all of the excess credits to be distributed to provide assistance to customers in need.>
   10.  Page 12, after line 30 by inserting: 
   <Sec. ___.  Section 476.53, subsection 4, Code 2018, is amended to read as follows:
   4.  The utilities board and the consumer advocate may employ additional temporary staff, or may contract for professional services with persons who are not state employees, as the board and the consumer advocate deem deems necessary to perform required functions as provided in this section, including but not limited to review of power purchase contracts, review of emission plans and budgets, and review of ratemaking principles proposed for construction or lease of a new generating facility. Beginning July 1, 2002, there is appropriated out of any funds in the state treasury not otherwise appropriated, such sums as may be necessary to enable the board and the consumer advocate to hire additional staff and contract for services under this section. The costs of the additional staff and services shall be assessed to the utilities pursuant to the procedure in section 476.10 and section 475A.6.
   Sec. ___.  Section 476.103, subsection 3, paragraph g, Code 2018, is amended to read as follows:
   g.  Procedures for a customer, or service provider, or the consumer advocate to submit to the board complaints of unauthorized changes in service.
   Sec. ___.  Section 477C.5, subsection 2, Code 2018, is amended to read as follows:
   2.  The council shall consist of:
   a.  Six Seven consumers who have communication impairments.
   b.  Two representatives from telephone companies.
   c.  One representative from the office of deaf services of the department of human rights.
   d.  One representative from the office of the consumer advocate of the department of justice.
   e.  d.  One member of the board or a designee of the board.
   Sec. ___.  Section 546.12, subsections 1 and 2, Code 2018, are amended to read as follows:
   1.  A department of commerce revolving fund is created in the state treasury. The fund shall consist of moneys collected by the banking division; credit union division; utilities division, including moneys collected on behalf of the office of consumer advocate established in section 475A.3; and the insurance division of the department; and deposited into an account for that division or office within the fund on a monthly basis. Except as otherwise provided by statute, all costs for operating the office of consumer advocate and the banking division, the credit union division, the utilities division, and the insurance division of the department shall be paid from the division’s accounts within the fund, subject to appropriation by the general assembly. The insurance division shall administer the fund and all other divisions shall work with the insurance division to make sure the fund is properly accounted and reported to the department of management and the department of administrative services. The divisions shall provide quarterly reports to the department of management and the legislative services agency on revenues billed and collected and expenditures from the fund in a format as determined by the department of management in consultation with the legislative services agency.
   2.  To meet cash flow needs for the office of consumer advocate and the banking division, credit union division, utilities division, or the insurance division of the department, the administrative head of that division or office may temporarily use funds from the general fund of the state to pay expenses in excess of moneys available in the revolving fund for that division or office if those additional expenditures are fully reimbursable and the division or office reimburses the general fund of the state and ensures all moneys are repaid in full by the close of the fiscal year. Notwithstanding any provision to the contrary, the divisions shall, to the fullest extent possible, make an estimate of billings and make such billings as early as possible in each fiscal year, so that the need for the use of general fund moneys is minimized to the lowest extent possible. Periodic billings shall be deemed sufficient to satisfy this requirement. Because any general fund moneys used shall be fully reimbursed, such temporary use of funds from the general fund of the state shall not constitute an appropriation for purposes of calculating the state general fund expenditure limitation pursuant to section 8.54.
   Sec. ___.  REPEAL.  Chapter 475A, Code 2018, is repealed.>
   11.  Page 13, line 13, after <<utilities,> by inserting <repealing provisions establishing the office of consumer advocate,>
   12.  By renumbering as necessary.

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WATTS of Dallas