House File 2574 - Introduced



                                       HOUSE FILE       
                                       BY  JENKINS


    Passed House, Date                Passed Senate,  Date             
    Vote:  Ayes        Nays           Vote:  Ayes        Nays         
                 Approved                            

                                      A BILL FOR

  1 An Act granting responsibility for energy policy in the state to
  2    the department of economic development.
  3 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
  4 TLSB 5434YH 81
  5 tm/sh/8

PAG LIN



  1  1    Section 1.  Section 15.108, Code 2005, is amended by adding
  1  2 the following new subsection:
  1  3    NEW SUBSECTION.  12.  ENERGY.
  1  4    a.  To market energy availability and cost in the state as
  1  5 a reason to locate a new business in the state.
  1  6    b.  To coordinate the role of all forms of energy in the
  1  7 state and collect all data and information available regarding
  1  8 all forms of energy in the state.
  1  9    c.  To develop a strategic course for the state that
  1 10 utilizes natural resources of the state as energy resources
  1 11 for the citizens and economic growth of the state.
  1 12    Sec. 2.  Section 456.1, subsection 1, Code 2005, is amended
  1 13 to read as follows:
  1 14    1.  "Department" means the department of natural resources
  1 15 economic development created under in section 455A.2 15.105.
  1 16    Sec. 3.  Section 458A.2, subsection 2, Code 2005, is
  1 17 amended by striking the subsection.
  1 18    Sec. 4.  Section 458A.2, subsection 3, Code 2005, is
  1 19 amended to read as follows:
  1 20    3.  "Department" means the department of natural resources
  1 21 economic development created under section 455A.2 chapter 15.
  1 22    Sec. 5.  Section 470.1, subsections 2 and 3, Code 2005, are
  1 23 amended to read as follows:
  1 24    2.  "Department" means the department of natural resources
  1 25 economic development.
  1 26    3.  "Director" means the director of the department of
  1 27 natural resources economic development.
  1 28    Sec. 6.  Section 473.1, subsections 1 and 2, Code 2005, are
  1 29 amended to read as follows:
  1 30    1.  "Commission" "Board" means the environmental protection
  1 31 commission of the department Iowa economic development board
  1 32 created in section 15.103.
  1 33    2.  "Department" means the department of natural resources
  1 34 economic development created under in section 455A.2 15.105.
  1 35    Sec. 7.  Section 473.11, subsections 3, 4, and 7, Code
  2  1 2005, are amended to read as follows:
  2  2    3.  An energy fund disbursement council is established.
  2  3 The council shall be composed of the governor or the
  2  4 governor's designee, the director of the department of
  2  5 management, who shall serve as the council's chairperson, the
  2  6 administrator of the division of community action agencies of
  2  7 the department of human rights, a designee of the director of
  2  8 the department of natural resources economic development who
  2  9 is knowledgeable in the field of energy conservation, and a
  2 10 designee of the director of transportation who is
  2 11 knowledgeable in the field of energy conservation.  The
  2 12 council shall include as nonvoting members two members of the
  2 13 senate appointed by the president of the senate, after
  2 14 consultation with the majority leader and the minority leader
  2 15 of the senate, and two members of the house of representatives
  2 16 appointed by the speaker of the house, after consultation with
  2 17 the majority leader and the minority leader of the house.  The
  2 18 legislative members shall be appointed upon the convening and
  2 19 for the period of each general assembly.  Not more than one
  2 20 member from each house shall be of the same political party.
  2 21 The council shall be staffed by the department of natural
  2 22 resources economic development.  The attorney general shall
  2 23 provide legal assistance to the council.
  2 24    The council shall do all of the following:
  2 25    a.  Oversee the investment of moneys deposited in the
  2 26 energy conservation trust.
  2 27    b.  Make recommendations to the governor and the general
  2 28 assembly regarding annual appropriations from the energy
  2 29 conservation trust.
  2 30    c.  Work with the department of natural resources economic
  2 31 development in adopting administrative rules necessary to
  2 32 administer expenditures from the trust, encourage applications
  2 33 for grants and loans, review and select proposals for the
  2 34 funding of competitive grants and loans from the energy
  2 35 conservation trust, and evaluate their comparative
  3  1 effectiveness.
  3  2    d.  Monitor expenditures from the trust.
  3  3    e.  Approve any grants or contracts awarded from the energy
  3  4 conservation trust in excess of five thousand dollars.
  3  5    f.  Prepare, in conjunction with the department of natural
  3  6 resources economic development, an annual report to the
  3  7 governor and the general assembly regarding earnings of and
  3  8 expenditures from the energy conservation trust.
  3  9    4.  The director of the department of natural resources
  3 10 economic development or the director's designee shall be the
  3 11 administrator of the energy conservation trust.  The
  3 12 administrator shall disburse moneys appropriated by the
  3 13 general assembly from the funds in the trust in accordance
  3 14 with the federal court orders, law and regulation, or
  3 15 settlement conditions applying to the moneys in that fund, and
  3 16 subject to the approval of the energy fund disbursement
  3 17 council if such approval is required.  The council, after
  3 18 consultation with the attorney general, shall immediately
  3 19 approve the disbursement of moneys from the funds in the trust
  3 20 for projects which meet the federal court orders, law and
  3 21 regulations, or settlement conditions which apply to that
  3 22 fund.
  3 23    7.  On June 30, 2003, the energy fund disbursement council
  3 24 established in subsection 3 shall be dissolved.  At that time,
  3 25 the The department of natural resources economic development
  3 26 shall be responsible for the disbursement of any funds either
  3 27 received or remaining in the energy conservation trust.  These
  3 28 disbursements shall be for projects and programs consistent
  3 29 with the allowable uses for the energy conservation trust.
  3 30 Also, at that time, and annually thereafter, Annually the
  3 31 state department of transportation shall report to the
  3 32 department of natural resources economic development on the
  3 33 status of the intermodal revolving loan fund established in
  3 34 the department.  In the fiscal year beginning July 1, 2019,
  3 35 the department of natural resources economic development shall
  4  1 assume responsibility for funds remaining in the intermodal
  4  2 revolving loan fund and disburse them for energy conservation
  4  3 projects and programs consistent with the allowable uses for
  4  4 the energy conservation trust.
  4  5    Sec. 8.  Section 473.20A, subsections 1 and 2, Code 2005,
  4  6 are amended to read as follows:
  4  7    1.  The department of natural resources economic
  4  8 development may enter into financing agreements with the
  4  9 state, state agencies, political subdivisions of the state,
  4 10 school districts, area education agencies, community colleges,
  4 11 or nonprofit organizations in order to provide the financing
  4 12 to pay the costs of furnishing energy conservation measures.
  4 13 The provisions of section 473.20 defining eligible energy
  4 14 conservation measures and the method of repayment of the loans
  4 15 apply to financings under this section.
  4 16    The financing agreement may contain provisions, including
  4 17 interest, term, and obligations to make payments on the
  4 18 financing agreement beyond the current budget year, as may be
  4 19 agreed upon between the department of natural resources
  4 20 economic development and the state, state agencies, political
  4 21 subdivisions of the state, school districts, area education
  4 22 agencies, community colleges, or nonprofit organizations.
  4 23    2.  For the purpose of funding its obligation to furnish
  4 24 moneys under the financing agreements, or to fund the energy
  4 25 loan fund created in section 473.20, the treasurer of state,
  4 26 with the assistance of the department of natural resources
  4 27 economic development, or the treasurer of state's duly
  4 28 authorized agents or representatives, may incur indebtedness
  4 29 or enter into master lease agreements or other financing
  4 30 arrangements to borrow to accomplish energy conservation
  4 31 measures, or the department of natural resources economic
  4 32 development may enter into master lease agreements or other
  4 33 financing arrangements to permit the state, state agencies,
  4 34 political subdivisions of the state, school districts, area
  4 35 education agencies, community colleges, or nonprofit
  5  1 organizations to borrow sufficient funds to accomplish the
  5  2 energy conservation measure.  The obligations may be in such
  5  3 form, for such term, bearing such interest and containing such
  5  4 provisions as the department of natural resources economic
  5  5 development, with the assistance of the treasurer of state,
  5  6 deems necessary or appropriate.  Funds remaining after the
  5  7 payment of all obligations have been redeemed shall be paid
  5  8 into the energy loan fund.
  5  9    Sec. 9.  Section 473.15, Code 2005, is repealed.
  5 10                           EXPLANATION
  5 11    This bill grants responsibility for energy policy in the
  5 12 state to the department of economic development.
  5 13    The bill provides that the department of economic
  5 14 development shall have a primary responsibility for marketing
  5 15 energy availability and cost in the state as a reason to
  5 16 locate a new business in the state, coordinating the role of
  5 17 all forms of energy in the state and collect all data and
  5 18 information available regarding all forms of energy in the
  5 19 state, and developing a strategic course for the state that
  5 20 utilizes natural resources of the state as energy resources
  5 21 for the citizens and economic growth of the state.
  5 22    The bill transfers responsibility for the geological survey
  5 23 and related requirements included in Code chapter 456 from the
  5 24 department of natural resources to the department of economic
  5 25 development.  The move results in the director of the
  5 26 department of economic development appointing the state
  5 27 geologist.
  5 28    The bill transfers the responsibilities related to oil,
  5 29 gas, and other minerals as contained in Code chapter 458A from
  5 30 the department of natural resources to the department of
  5 31 economic development.
  5 32    The bill transfers the responsibilities for life cycle cost
  5 33 analysis of public facilities as contained in Code chapter 470
  5 34 from the department of natural resources to the department of
  5 35 economic development.
  6  1    The bill transfers the responsibilities related to energy
  6  2 development and conservation as contained in Code chapter 473
  6  3 from the department of natural resources to the department of
  6  4 economic development.
  6  5 LSB 5434YH 81
  6  6 tm:rj/sh/8.1