Senate File 2311 H-8428 Amend the amendment, H-8340, to Senate File 2311, as 1 amended, passed, and reprinted by the Senate, as follows: 2 1. By striking page 1, line 1, through page 2, line 21, and 3 inserting: 4 < Amend Senate File 2311, as amended, passed, and reprinted 5 by the Senate, as follows: 6 1. By striking everything after the enacting clause and 7 inserting: 8 < Section 1. Section 28F.1, subsection 1, Code 2018, is 9 amended to read as follows: 10 1. This chapter provides a means for the joint financing 11 by public agencies of works or facilities useful and necessary 12 for the collection, treatment, purification, and disposal 13 in a sanitary manner of liquid and solid waste, sewage, 14 and industrial waste, facilities used for the conversion of 15 solid waste to energy, gasworks and facilities useful for 16 the delivery of natural gas service, and also electric power 17 facilities constructed within the state of Iowa, except that 18 hydroelectric power facilities may also be located in the 19 waters and on the dams of or on land adjacent to either side 20 of the Mississippi or Missouri river bordering the state of 21 Iowa, water supply systems, swimming pools or golf courses. 22 This chapter applies to the acquisition, construction, 23 reconstruction, ownership, operation, repair, extension, 24 or improvement of such works or facilities, by a separate 25 administrative or legal entity created pursuant to chapter 26 28E or chapter 389 . When the legal entity created under 27 this chapter is comprised solely of cities, counties, and 28 sanitary districts established under chapter 358 , or any 29 combination thereof or any combination of the foregoing with 30 other public agencies, the entity shall be both a corporation 31 and a political subdivision with the name under which it was 32 organized. The legal entity may sue and be sued, contract, 33 acquire and hold real and personal property necessary for 34 corporate purposes, adopt a corporate seal and alter the seal 35 -1- H8340.5480 (2) 87 gh/rn 1/ 10 #1.

at pleasure, and execute all the powers conferred in this 1 chapter . 2 Sec. 2. Section 28F.11, Code 2018, is amended to read as 3 follows: 4 28F.11 Eminent domain. 5 Any public agency participating in an agreement authorizing 6 the joint exercise of governmental powers pursuant to this 7 chapter may exercise its power of eminent domain to acquire 8 interests in property, under provisions of law then in effect 9 and applicable to the public agency, for the use of the entity 10 created to carry out the agreement, provided that the power of 11 eminent domain is not used to acquire interests in property 12 which is part of a system of facilities in existence, under 13 construction, or planned, for the generation, transmission 14 or sale of electric power , or for the transmission, 15 transportation, or sale of natural gas . In the exercise 16 of the power of eminent domain, the public agency shall 17 proceed in the manner provided by chapter 6B . Any interests 18 in property acquired are acquired for a public purpose, as 19 defined in chapter 6A , of the condemning public agency, and the 20 payment of the costs of the acquisition may be made pursuant 21 to the agreement or to any separate agreement between the 22 public agency and the entity or the other public agencies 23 participating in the entity or any of them. Upon payment of 24 costs, any property acquired is the property of the entity. >> 25 2. Page 2, after line 21 by inserting: 26 < Sec. ___. NEW SECTION . 385.1 Definitions. 27 As used in this chapter, unless the context otherwise 28 requires: 29 1. “Board” means an energy investment district board 30 appointed pursuant to this chapter. 31 2. “Energy investment” means an acquisition, installation, 32 or modification benefitting private property, except 33 residential property with fewer than three residential units, 34 that is intended to reduce energy consumption or energy costs, 35 -2- H8340.5480 (2) 87 gh/rn 2/ 10 #2.

or both, or is intended to provide or allow for the use of 1 alternate and renewable energy. The term includes but is not 2 limited to the following measures: 3 a. Insulating walls, roofs, attics, floors, foundations, and 4 heating and cooling distribution systems. 5 b. Repairing, replacing, or installing storm windows 6 and doors, multiglazed windows and doors, heat-absorbing or 7 heat-reflective windows and doors, and other window and door 8 improvements designed to reduce energy consumption. 9 c. Constructing or reconstructing roofs designed to reduce 10 energy consumption or support additional loads necessitated by 11 other energy investments. 12 d. Installing energy control and measurement devices. 13 e. Heating, ventilating, or air conditioning distribution 14 system modifications and replacements. 15 f. Caulking and weatherstripping. 16 g. Installing lighting fixtures that result in increased 17 energy efficiency of the lighting system. 18 h. Installing water heating systems, elevators, and 19 escalators that result in increased energy efficiency. 20 i. Repairing, replacing, or installing energy recovery 21 systems. 22 j. Repairing, replacing, or installing daylighting systems. 23 k. Repairing, replacing, or installing energy systems that 24 provide energy from alternate or renewable energy, including 25 solar, wind, biomass, geothermal, or cogeneration. 26 l. Repairing, replacing, or installing facilities or 27 fixtures providing for water conservation or pollutant control. 28 m. Repairing, replacing, or installing an energy investment 29 related item so long as the cost of the energy investment 30 related item does not exceed twenty-five percent of the total 31 cost of the project. 32 3. “Energy investment related item” means a repair, 33 replacement, improvement, or modification to real property 34 that is necessary or desirable in conjunction with an energy 35 -3- H8340.5480 (2) 87 gh/rn 3/ 10

investment. The term includes but is not limited to structural 1 support improvements and the repair or replacement of any 2 building components, paved surfaces, or fixtures disrupted or 3 altered by the installation of an energy investment. 4 4. “Project” means one or more energy investments to be 5 installed on a property. 6 Sec. ___. NEW SECTION . 385.2 Energy investment district 7 created. 8 1. A county or city may create an energy investment district 9 pursuant to this chapter in order to provide financing for 10 energy investment projects to benefit real property in the 11 district. 12 2. One or more counties and one or more cities within 13 those counties may create, by chapter 28E agreement, an energy 14 investment district pursuant to this chapter in order to 15 provide financing for energy investment projects to benefit 16 real property in the district. The agreement creating the 17 energy investment district shall specify the geographic 18 boundaries of the district. 19 Sec. ___. NEW SECTION . 385.3 Energy investment district 20 board —— membership —— powers. 21 1. The governing bodies of the counties and cities 22 participating in an energy investment district shall appoint a 23 board to manage and administer the energy investment district. 24 An energy investment district board shall consist of at least 25 three members, but if the district is created pursuant to 26 section 385.2, subsection 2, in no case shall there be fewer 27 members than the number of participating cities and counties. 28 The agreement creating the energy investment district shall set 29 the term length of board members. 30 2. A board shall have and may exercise the powers and duties 31 necessary for management and administration of the energy 32 investment district as such powers and duties are described 33 in the agreement, including but not limited to the following 34 express powers and duties: 35 -4- H8340.5480 (2) 87 gh/rn 4/ 10

a. To adopt, amend, and repeal bylaws consistent with the 1 provisions of this chapter. 2 b. To adopt an official seal. 3 c. To sue and be sued in all courts. 4 d. To make and enter into contracts with public and private 5 entities. 6 e. To accept grants, guarantees, and donations of property, 7 labor, services, and other items of value from a public or 8 private source. 9 f. To employ or contract for such managerial, legal, 10 technical, clerical, accounting, or other assistance it 11 deems advisable. However, the board shall not enter into any 12 arrangement that results in an exclusive lender, underwriter, 13 or other funding partner for all projects funded by the board. 14 g. To finance projects under assessment contracts. 15 h. To levy and collect special assessments under an 16 assessment contract with a property owner. 17 i. To borrow money from a public or private source and issue 18 bonds and provide security for the repayment of such bonds. 19 j. To charge and collect fees pursuant to section 385.5. 20 k. To invest funds not required for immediate disbursement, 21 subject to section 28E.5, subsection 2. 22 3. A board shall exist for a minimum duration necessary to 23 finance any assessment contracts that the board enters into 24 pursuant to section 385.4. 25 Sec. ___. NEW SECTION . 385.4 Project financing requirements 26 —— assessment contracts. 27 1. A board may finance a project if the following criteria 28 are met: 29 a. There are sufficient resources to complete the project. 30 b. The estimated monetary benefit, as determined by the 31 board after consultation with an outside expert, and including 32 but not limited to energy cost savings, maintenance, and other 33 property operating savings expected from the project during the 34 financing period is equal to or greater than the principal and 35 -5- H8340.5480 (2) 87 gh/rn 5/ 10

interest cost of the project, including special assessments and 1 any applicable fees. 2 c. The project complies with the ordinances and regulations 3 of the county or city where the property is located, including 4 but not limited to such ordinances and regulations concerning 5 zoning, subdivision of property, building, fire safety, and 6 historic or architectural review. 7 2. A board shall finance a project under an assessment 8 contract. An assessment contract shall be executed by the 9 board and the property owner or owners and shall include the 10 following components: 11 a. A description of the project, including the estimated 12 cost of the project and a description of the estimated savings, 13 prepared in accordance with standards accepted by the board. 14 b. A mechanism for verifying the final costs of the project 15 upon its completion and ensuring that any amounts advanced, 16 financed, or otherwise provided by the board will not exceed 17 the final cost of the project. 18 c. An agreement by the property owner to pay special 19 assessments and any applicable fees for a period not to exceed 20 the weighted average useful life of the project, as specified 21 in the assessment contract. 22 d. An assessment schedule adopted by the board by 23 resolution, stating the number of annual installments due, 24 stating the time when assessments and any applicable fees are 25 payable, and providing for interest on all unpaid installments 26 and fees at a rate not exceeding that permitted by chapter 74A. 27 e. A statement that the obligations provided in the 28 assessment contract, including the obligation to pay special 29 assessments and any applicable fees charged, are a covenant 30 that shall run with the land and be obligations upon future 31 owners of such property. 32 f. An acknowledgment that the subdivision of property 33 subject to the assessment contract shall require the assessment 34 contract or an amendment to the contract to divide the total 35 -6- H8340.5480 (2) 87 gh/rn 6/ 10

special assessment and any applicable fees charged due between 1 the newly subdivided parcels in proportion to the benefit 2 realized by each subdivided parcel. 3 g. An acknowledgment from all entities holding mortgages on 4 the real property, or the contract seller under a real estate 5 contract, to be assessed under the assessment contract that 6 such interest holders have consented to the levy and collection 7 of the special assessments and any applicable fees charged, as 8 described in the assessment contract. 9 3. a. A board shall provide a copy of a signed assessment 10 contract to the county or city assessor, as appropriate, and to 11 the county auditor of the county where the property is located 12 and shall file for recording a copy of the assessment contract 13 with the county recorder. 14 b. The city clerk or county auditor, as appropriate, shall 15 certify the assessment schedule to the treasurer of each county 16 where the property is located. The county treasurer shall 17 enter on the county system the amounts to be assessed against 18 the property, as certified. 19 4. A board may enter into more than one assessment contract 20 with respect to a single parcel of real property, so long as 21 each assessment contract relates to a separate project. 22 5. A board shall determine an inspection procedure to 23 be utilized upon completion of an energy investment financed 24 pursuant to this chapter. 25 Sec. ___. NEW SECTION . 385.5 Special assessments —— fees 26 —— delinquency. 27 1. The total special assessments levied by a board under an 28 assessment contract shall not exceed the sum of the cost of the 29 project, including any energy audits or inspections or portions 30 thereof financed by the board, plus interest. 31 2. In addition to special assessments provided under 32 subsection 1, a board may also charge a fee of up to one percent 33 of the total cost of a project, which fee may not exceed twenty 34 thousand dollars per project. Such fee shall be charged in 35 -7- H8340.5480 (2) 87 gh/rn 7/ 10

connection with administration of the assessment contract 1 and with any technical, consultative, or project assistance 2 services required. A fee charged under this subsection shall 3 be included in an assessment contract provided under section 4 385.4. 5 3. Special assessments levied and any applicable fees 6 charged by a board under an assessment contract shall be 7 levied, charged, and collected in the manner as provided in the 8 assessment contract and with the same priority as ad valorem 9 property taxes. 10 4. a. If special assessments and any applicable fees are 11 not paid within the time period set forth in the assessment 12 contract, such special assessments and fees shall be considered 13 delinquent. Delinquent special assessments and fees shall 14 become a lien on the property against which the special 15 assessments were levied and the fees charged. A board may 16 collect delinquent special assessments and fees as if the board 17 were a county treasurer pursuant to sections 445.3 and 445.4, 18 except that the property shall not be subject to sale for 19 delinquent taxes under chapter 446. 20 b. Special assessments and any applicable fees that are not 21 delinquent shall not be accelerated as part of any action or 22 proceeding to collect delinquent special assessments or fees. 23 Upon the sale of the real property subject to an assessment 24 contract, any remaining special assessments and applicable fees 25 shall be collected for the remainder of the assessment contract 26 term from a subsequent owner of the real property, including 27 an owner that is the state or any political subdivision of the 28 state. 29 Sec. ___. NEW SECTION . 385.6 Bonds issued. 30 1. A board may, by resolution, authorize and issue bonds 31 payable from the proceeds of the special assessments and any 32 other revenues collected. Such bonds may bear dates, bear 33 interest at rates not exceeding those permitted by chapter 74A, 34 mature in one or more installments, be in either coupon or 35 -8- H8340.5480 (2) 87 gh/rn 8/ 10

registered form, carry registration and conversion privileges, 1 be payable as to principal and interest at times and places, 2 be subject to terms of redemption prior to maturity with or 3 without premium, and be in one or more denominations, all as 4 provided by the resolution of the board authorizing their 5 issuance. 6 2. Bonds issued under this section shall not constitute a 7 debt of the state or of the city or county where the property is 8 located, and the form of such bonds shall contain a statement 9 to that effect. 10 Sec. ___. NEW SECTION . 385.7 Annual reporting. 11 A board shall submit to the governing body of each 12 participating county and city an annual report for the 13 preceding calendar year that includes the following 14 information: 15 1. A description of each project completed, including the 16 physical address of the benefitted property, the name or names 17 of the property owners, an itemized list of the costs incurred 18 under the project, and the name of any contractors used to 19 complete the project. 20 2. For each project in subsection 1, the amount of special 21 assessments due and the amount collected for the fiscal year 22 ending during the preceding calendar year. 23 3. A summary of the public benefits resulting from the 24 projects listed in subsection 1, including, without limitation, 25 estimated cumulative energy savings resulting from the 26 projects. 27 4. A description of each assessment contract entered into by 28 the board, including a description of the project and a summary 29 of the assessment schedule. 30 5. The amount of administrative costs incurred by the 31 board. > 32 3. By renumbering as necessary. 33 -9- H8340.5480 (2) 87 gh/rn 9/ 10