Senate File 2386 - Enrolled

PAG LIN

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AN ACT

SENATE FILE 2386

1	4 RELATING TO ENERGY EFFICIENCY BY ESTABLISHING A COMMISSION ON
1	5	ENERGY EFFICIENCY STANDARDS AND PRACTICES, PROVIDING FOR
1	6	THE REPORTING OF ENERGY EFFICIENCY RESULTS AND SAVINGS BY
1	7	GAS AND ELECTRIC PUBLIC UTILITIES, SPECIFYING PROCEDURES FOR
1	8	ASSESSING POTENTIAL ENERGY AND CAPACITY SAVINGS AND DEVELOP-
1	9	ING ENERGY EFFICIENCY GOALS BY GAS AND ELECTRIC UTILITIES
1 10	NOT SUBJECT TO RATE REGULATION, PROVIDING FOR THE ESTAB-
1 11	LISHMENT OR PARTICIPATION IN A PROGRAM TO TRACK, RECORD, OR
1 12	VERIFY THE TRADING OF CREDITS FOR ELECTRICITY GENERATED
1 13	FROM SPECIFIED SOURCES, AND PROVIDING FOR THE ESTABLISHMENT
1 14	OF AN INTERIM STUDY COMMITTEE TO CONDUCT AN EXAMINATION OF
1 15	ENERGY EFFICIENCY PLANS AND PROGRAMS WITH AN EMPHASIS ON
1 16	THE DEMAND OR CUSTOMER PERSPECTIVE, AND PROVIDING AN EFFEC-
1 17	TIVE DATE.
1 18
1 19 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
1 20
1 21	Section 1.	NEW SECTION.	103A.27	COMMISSION ON ENERGY
1 22 EFFICIENCY STANDARDS AND PRACTICES.
1 23	1.	A commission on energy efficiency standards and
1 24 practices is established within the department of public
1 25 safety.	The commission shall be composed of the following
1 26 members:
1 27	a.	The state building code commissioner, or the
1 28 commissioner's designee.
1 29	b.	The director of the office of energy independence, or
1 30 the director's designee.
1 31	c.	A professional engineer licensed pursuant to chapter 1 32 542B.
1 33	d.	An architect registered pursuant to chapter 544A.
1 34	e.	Two individuals recognized in the construction industry
35 as possessing expertise and experience in the construction or
1 renovation of energy=efficient residential and commercial
2	2 buildings.
2	3	f.	A member of a local planning and zoning commission or
2	4 county board of supervisors.
2	5	g.	Three individuals representing gas and electric public
2	6 utilities within this state, comprised of one individual
2	7 representing rural electric cooperatives, one individual
2	8 representing municipal utilities, and one individual
2	9 representing investor=owned utilities.
2 10	h.	A local building official whose duties include
2 11 enforcement of requirements for energy conservation in
2 12 construction.
2 13	i.	Two consumers, one of whom owns and occupies a
2 14 residential building in this state and one of whom owns and
2 15 occupies a building used in commercial business or
2 16 manufacturing.
2 17	2.	The commissioner shall appoint all members to the
2 18 commission other than those members designated in subsection
2 19 1, paragraphs "a" and "b".	Appointment of members are subject
2 20 to the requirements of sections 69.16 and 69.16A.	A vacancy
2 21 on the commission shall be filled for the unexpired portion of
2 22 the regular term in the same manner as regular appointments
2 23 are made.	Members appointed by the commissioner shall be
2 24 reimbursed for actual and necessary expenses incurred in
2 25 performance of their duties.	Such members may also be
2 26 eligible to receive compensation as provided in section 7E.6.
2 27 A majority of the members shall constitute a quorum.
2 28	3.	Duties of the commission shall include but are not
2 29 limited to the following:
2 30	a.	Evaluate energy efficiency standards applicable to
2 31 existing or newly constructed residential, commercial, and
2 32 industrial buildings and vertical infrastructure at the state
2 33 and local level and make suggestions for their improvement and
2 34 enforcement.	The evaluation of energy efficiency standards
35 shall include but not be limited to a review of the following:
1	(1)	The reduction in energy usage likely to result from
3	2 the adoption and enforcement of the standards.
3	3	(2)	The effect of compliance with the standards on indoor

3	4 air quality.
3	5	(3)	The relationship of the standards to weatherization
3	6 programs for existing housing stock and to the availability of
3	7 affordable housing, including rental units.
3	8	b.	Develop recommendations for new energy efficiency
3	9 standards, specifications, or guidelines applicable to newly
3 10 constructed residential, commercial, and industrial buildings
3 11 and vertical infrastructure.
3 12	c.	Develop recommendations for the establishment of
3 13 incentives for energy efficiency construction projects which
3 14 exceed currently applicable state and local building codes.
3 15	d.	Develop recommendations for adoption of a statewide
3 16 energy efficiency building labeling or rating system for
3 17 residential, commercial, and industrial buildings and
3 18 complexes.
3 19	e.	Obtain input from individuals, groups, associations,
3 20 and agencies in carrying out the duties specified in
3 21 paragraphs "a" through "d", including but not limited to the
3 22 Iowa league of cities regarding local building code adoption
3 23 and enforcement in both large and small communities, the Iowa
3 24 landlord association, the department of transportation, the
3 25 department of public health, the division of community action
3 26 agencies of the department of human rights regarding
3 27 low=income residential customers, and obtain additional input
3 28 from any other source that the commission determines
3 29 appropriate.
3 30	4.	The commission shall be formed for the two=year period
3 31 beginning July 1, 2008, and ending June 30, 2010, and shall
3 32 submit a report to the governor and the general assembly by
3 33 January 1, 2011, regarding its activities and recommendations.
3 34 Administrative support shall be furnished by the department of
35 public safety, with the assistance of the office of energy
1 independence and the department of natural resources.
4	2	Sec. 2.	Section 476.1A, subsection 7, Code 2007, is
4	3 amended to read as follows:
4	4	7.	Filing energy efficiency plans and energy efficiency
4	5 results with the board.	The energy efficiency plans as a
4	6 whole shall be cost=effective.	The board may permit these
4	7 utilities to file joint plans.	The board shall periodically
  4  8 report the energy efficiency results including energy savings
  4  9 of each of these utilities to the general assembly.
4 10	Sec. 3.	Section 476.1B, subsection 1, paragraph 1, Code
4 11 2007, is amended to read as follows:
4 12	l.	Filing energy efficiency plans and energy efficiency
4 13 results with the board.	The energy efficiency plans as a
4 14 whole shall be cost=effective.	The board may permit these
4 15 utilities to file joint plans.	The board shall periodically
  4 16 report the energy efficiency results including energy savings
  4 17 of each of these utilities to the general assembly.
4 18	Sec. 4.	Section 476.6, subsection 16, paragraph b, Code
4 19 Supplement 2007, is amended to read as follows:
4 20	b.	A gas and electric utility required to be
4 21 rate=regulated under this chapter shall assess potential
4 22 energy and capacity savings available from actual and
4 23 projected customer usage by applying commercially available
4 24 technology and improved operating practices to energy=using
4 25 equipment and buildings.	The utility shall submit the
4 26 assessment to the board.	Upon receipt of the assessment, the
4 27 board shall consult with the department of natural resources
4 28 to develop specific capacity and energy savings performance
4 29 standards for each utility.	The utility shall submit an
4 30 energy efficiency plan which shall include economically
4 31 achievable programs designed to attain these energy and
4 32 capacity performance standards.	The board shall periodically
  4 33 report the energy efficiency results including energy savings
  4 34 of each utility to the general assembly.
35	Sec. 5.	Section 476.6, subsection 16, Code Supplement
1 2007, is amended by adding the following new paragraphs:
5	2	NEW PARAGRAPH.	bb.	(1)	Gas and electric utilities that
5	3 are not required to be rate=regulated under this chapter shall
5	4 assess maximum potential energy and capacity savings available
5	5 from actual and projected customer usage through
5	6 cost=effective energy efficiency measures and programs, taking
5	7 into consideration the utility service area's historic energy
5	8 load, projected demand, customer base, and other relevant
5	9 factors.	Each utility shall establish an energy efficiency
5 10 goal based upon this assessment of potential and shall
5 11 establish cost=effective energy efficiency programs designed
5 12 to meet the energy efficiency goal.	Separate goals may be
5 13 established for various customer groupings.
5 14	(2)	Energy efficiency programs shall include efficiency

5 15 improvements to a utility infrastructure and system and
5 16 activities conducted by a utility intended to enable or
5 17 encourage customers to increase the amount of heat, light,
5 18 cooling, motive power, or other forms of work performed per
5 19 unit of energy used.	In the case of a municipal utility, for
5 20 purposes of this paragraph, other utilities and departments of
5 21 the municipal utility shall be considered customers to the
5 22 same extent that such utilities and departments would be
5 23 considered customers if served by an electric or gas utility
5 24 that is not a municipal utility.	Energy efficiency programs
5 25 include activities which lessen the amount of heating,
5 26 cooling, or other forms of work which must be performed,
5 27 including but not limited to energy studies or audits, general
5 28 information, financial assistance, direct rebates to customers
5 29 or vendors of energy=efficient products, research projects,
5 30 direct installation by the utility of energy=efficient
5 31 equipment, direct and indirect load control, time=of=use
5 32 rates, tree planting programs, educational programs, and hot
5 33 water insulation distribution programs.
5 34	(3)	Each utility shall commence the process of determining
35 its cost=effective energy efficiency goal on or before July 1,
1 2008, shall provide a progress report to the board on or
6	2 before January 1, 2009, and complete the process and submit a
6	3 final report to the board on or before January 1, 2010.	The
6	4 report shall include the utility's cost=effective energy
6	5 efficiency goal, and for each measure utilized by the utility
6	6 in meeting the goal, the measure's description, projected
6	7 costs, and the analysis of its cost=effectiveness.	Each
6	8 utility or group of utilities shall evaluate
6	9 cost=effectiveness using the cost=effectiveness tests in
6 10 accordance with section 476.6, subsection 14.	Individual
6 11 utilities or groups of utilities may collaborate in conducting
6 12 the studies required hereunder and may file a joint report or
6 13 reports with the board.	However, the board may require
6 14 individual information from any utility, even if it
6 15 participates in a joint report.
6 16	(4)	On January 1 of each even=numbered year, commencing
6 17 January 1, 2012, gas and electric utilities that are not
6 18 required to be rate=regulated shall file a report with the
6 19 board identifying their progress in meeting the energy
6 20 efficiency goal and any updates or amendments to their energy
6 21 efficiency plans and goals.	Filings made pursuant to this
6 22 paragraph "bb" shall be deemed to meet the filing requirements
6 23 of section 476.1A, subsection 7, and section 476.1B,
6 24 subsection 1, paragraph "l".
6 25	NEW PARAGRAPH.	bbb.	(1)	The board shall evaluate the
6 26 reports required to be filed pursuant to paragraph "b" by gas
6 27 and electric utilities required to be rate=regulated, and
6 28 shall submit a report summarizing the evaluation to the
6 29 general assembly on or before January 1, 2009.
6 30	(2)	The board shall evaluate the reports required to be
6 31 filed pursuant to paragraph "bb" by gas and electric utilities
6 32 that are not required to be rate=regulated, and shall submit a
6 33 report summarizing the evaluation to the general assembly on
6 34 or before January 1, 2011.
35	(3)	The reports submitted by the board to the general
1 assembly pursuant to this paragraph "bbb" shall include the
7	2 goals established by each of the utilities.	The reports shall
7	3 also include the projected costs of achieving the goals,
7	4 potential rate impacts, and a description of the programs
7	5 offered and proposed by each utility or group of utilities,
7	6 and may take into account differences in system
7	7 characteristics, including but not limited to sales to various
7	8 customer classes, age of facilities of new large customers,
7	9 and heating fuel type.	The reports may contain
7 10 recommendations concerning the achievability of certain
7 11 intermediate and long=term energy efficiency goals based upon
7 12 the results of the assessments submitted by the utilities.
7 13	Sec. 6.	NEW SECTION.	476.44A	TRADING OF CREDITS.
7 14	The board may establish or participate in a program to
7 15 track, record, and verify the trading of credits for
7 16 electricity generated from alternative energy production
7 17 facilities or renewable energy sources among electric
7 18 generators, utilities, and other interested entities, within
7 19 this state and with similar entities in other states.
7 20	Sec. 7.	RENEWABLE ENERGY GENERATION == COST=EFFECTIVE
7 21 POTENTIAL STUDY.	The Iowa utility association, in
7 22 consultation with the Iowa association of electric
7 23 cooperatives and the Iowa association of municipal utilities,
7 24 shall conduct a technical study of the potential for achieving
7 25 or engaging in renewable energy generation on a cost=effective

7 26 basis by 2025.	The study shall be transmitted to the office
7 27 of energy independence by December 1, 2008, to be submitted
7 28 with the energy independence plan required to be submitted by
7 29 the office to the governor and the general assembly by 7 30 December 14, 2008.
7 31	Sec. 8.	ENERGY EFFICIENCY INTERIM STUDY COMMITTEE ==
7 32 CONSUMER FOCUS == REQUEST TO ESTABLISH.	The legislative
7 33 council is requested to establish an interim study committee
7 34 to examine the existence and effectiveness of energy
35 efficiency plans and programs implemented by gas and electric
1 public utilities, with an emphasis on results achieved by
8	2 current plans and programs from the demand, or customer,
8	3 perspective, and to make recommendations for additional
8	4 requirements applicable to energy efficiency plans and
8	5 programs that would improve such results.	In conducting the
8	6 study and developing recommendations, the committee shall
8	7 consider testimony from the Iowa utilities board, rate and
8	8 nonrate=regulated gas and electric utilities, the consumer
8	9 advocate, state agencies involved with energy efficiency
8 10 program administration, environmental groups and associations,
8 11 and consumers.	The committee shall be composed of ten
8 12 members, representing both political parties and both houses
8 13 of the general assembly.	Five members shall be members of the
8 14 senate, three of whom shall be appointed by the majority
8 15 leader of the senate and two of whom shall be appointed by the
8 16 minority leader of the senate.	The other five members shall
8 17 be members of the house of representatives, three of whom
8 18 shall be appointed by the speaker of the house of
8 19 representatives, and two of whom shall be appointed by the
8 20 minority leader of the house of representatives.	The
8 21 committee shall issue a report of its recommendations to the
8 22 general assembly by January 15, 2009.
8 23	Sec. 9.	EFFECTIVE DATE.	This Act, being deemed of
8 24 immediate importance, takes effect upon enactment. 8 25
8 26
8 27
8 28	JOHN P. KIBBIE
8 29	President of the Senate
8 30
8 31
8 32
8 33	PATRICK J. MURPHY
34	Speaker of the House
8 35
1	I hereby certify that this bill originated in the Senate and
9	2 is known as Senate File 2386, Eighty=second General Assembly. 9	3
9	4
9	5
9	6	MICHAEL E. MARSHALL
9	7	Secretary of the Senate
9	8 Approved	, 2008
9	9
9 10
9 11  	
9 12 CHESTER J. CULVER
9 13 Governor