House File 2656 - Introduced



                                       HOUSE FILE       
                                       BY  COMMITTEE ON ENVIRONMENTAL
                                           PROTECTION

                                       (SUCCESSOR TO HSB 742)


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

                                      A BILL FOR

  1 An Act relating to energy efficiency by establishing specified
  2    standards and goals relating to energy production and
  3    utilization, and establishing a commission on energy
  4    efficiency standards and practices.
  5 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
  6 TLSB 5711HV 82
  7 rn/rj/14

PAG LIN



  1  1    Section 1.  NEW SECTION.  103A.27  COMMISSION ON ENERGY
  1  2 EFFICIENCY STANDARDS AND PRACTICES.
  1  3    1.  A commission on energy efficiency standards and
  1  4 practices is established within the department of public
  1  5 safety.  The commission shall be composed of the following
  1  6 members:
  1  7    a.  The state building code commissioner, or the
  1  8 commissioner's designee.
  1  9    b.  The director of the office of energy independence, or
  1 10 the director's designee.
  1 11    c.  A professional engineer licensed pursuant to chapter
  1 12 542B.
  1 13    d.  An architect registered pursuant to chapter 544A.
  1 14    e.  Two individuals recognized in the construction industry
  1 15 as possessing expertise and experience in the construction or
  1 16 renovation of energy=efficient residential and commercial
  1 17 buildings.
  1 18    f.  A member of a local planning and zoning commission or
  1 19 county board of supervisors.
  1 20    g.  Three individuals representing gas and electric public
  1 21 utilities within this state.
  1 22    h.  A local building official whose duties include
  1 23 enforcement of requirements for energy conservation in
  1 24 construction.
  1 25    i.  Two consumers, one of whom owns and occupies a
  1 26 residential building in this state and one of whom owns and
  1 27 occupies a building used in commercial business or
  1 28 manufacturing.
  1 29    2.  The commissioner shall appoint all members to the
  1 30 commission other than those members designated in subsection
  1 31 1, paragraphs "a" and "b".  Appointment of members are subject
  1 32 to the requirements of sections 69.16 and 69.16A.  A vacancy
  1 33 on the commission shall be filled for the unexpired portion of
  1 34 the regular term in the same manner as regular appointments
  1 35 are made.  Members appointed by the commissioner shall be
  2  1 reimbursed for actual and necessary expenses incurred in
  2  2 performance of their duties.  Such members may also be
  2  3 eligible to receive compensation as provided in section 7E.6.
  2  4 A majority of the members shall constitute a quorum.
  2  5    3.  Duties of the commission shall include but are not
  2  6 limited to the following:
  2  7    a.  Evaluate energy efficiency standards applicable to
  2  8 existing or newly constructed residential, commercial, and
  2  9 industrial buildings and vertical infrastructure at the state
  2 10 and local level and make suggestions for their improvement and
  2 11 enforcement.  The evaluation of energy efficiency standards
  2 12 shall include but not be limited to a review of the following:
  2 13    (1)  The reduction in energy usage likely to result from
  2 14 the adoption and enforcement of the standards.
  2 15    (2)  The effect of compliance with the standards on indoor
  2 16 air quality.
  2 17    (3)  The relationship of the standards to weatherization
  2 18 programs for existing housing stock and to the availability of
  2 19 affordable housing, including rental units.
  2 20    b.  Develop recommendations for new energy efficiency
  2 21 standards, specifications, or guidelines applicable to newly
  2 22 constructed residential, commercial, and industrial buildings
  2 23 and vertical infrastructure.
  2 24    c.  Develop recommendations for the establishment of
  2 25 incentives for energy efficiency construction projects which
  2 26 exceed currently applicable state and local building codes.
  2 27    d.  Develop recommendations for adoption of a statewide
  2 28 energy efficiency building labeling or rating system for
  2 29 residential, commercial, and industrial buildings and
  2 30 complexes.
  2 31    e.  Obtain input from individuals, groups, associations,
  2 32 and agencies in carrying out the duties specified in
  2 33 paragraphs "a" through "d", including but not limited to the
  2 34 Iowa league of cities regarding local building code adoption
  2 35 and enforcement in both large and small communities, the Iowa
  3  1 landlord association, the department of transportation, the
  3  2 department of public health, the division of community action
  3  3 agencies of the department of human rights regarding
  3  4 low=income residential customers, and obtain additional input
  3  5 from any other source that the commission determines
  3  6 appropriate.
  3  7    4.  The commission shall be formed for the two=year period
  3  8 beginning July 1, 2008, and ending June 30, 2010, and shall
  3  9 submit a report to the governor and the general assembly by
  3 10 January 1, 2011, regarding its activities and recommendations.
  3 11 Administrative support shall be furnished by the department of
  3 12 public safety, with the assistance of the office of energy
  3 13 independence and the department of natural resources.
  3 14    Sec. 2.  Section 476.6, Code Supplement 2007, is amended by
  3 15 adding the following new subsection:
  3 16    NEW SUBSECTION.  23.  ENERGY SAVINGS STANDARD.
  3 17    a.  The board shall establish an energy efficiency standard
  3 18 of a one and one=half percent annual reduction in projected
  3 19 energy use applicable to all gas and electric utilities as a
  3 20 statewide average goal.  In applying the standard, the board
  3 21 shall collaborate with each utility to determine an
  3 22 individualized and cost=effective energy efficiency goal,
  3 23 taking into consideration the utility service area's historic
  3 24 energy load, its projected demand, its consumer base, the
  3 25 effectiveness of its previous or current energy efficiency
  3 26 plans generating energy savings by consumers or generating
  3 27 cost savings or efficiencies in the production and delivery of
  3 28 energy, and other relevant factors.  The goal applicable to a
  3 29 gas and electric utility may be implemented through
  3 30 modification of the utility's energy efficiency plan submitted
  3 31 pursuant to subsection 14, a plan developed and implemented by
  3 32 the board, a plan developed by a utility association and filed
  3 33 with and approved by the board, or pursuant to a third=party
  3 34 contract entered into by the utility.  Any utility that
  3 35 implements a board=approved plan filed by an association or
  4  1 developed by the board shall be deemed to have met its energy
  4  2 efficiency goal without having to determine an individualized
  4  3 goal.  Upon application, the board may establish an energy
  4  4 efficiency goal for a group or groups of utilities to pool
  4  5 their energy use reductions.  Any costs attributable to or
  4  6 incurred by customers resulting from implementation of a
  4  7 utility's energy efficiency goal pursuant to this subsection
  4  8 shall be separately itemized on customer utility bills.
  4  9    b.  The board shall conduct an assessment of the
  4 10 feasibility and cost=effectiveness of establishing a standard
  4 11 of one and one=half percent annual reduction in projected
  4 12 energy use applicable to all gas and electric utilities, and
  4 13 may by rule establish intermediate goals during the assessment
  4 14 process.  A preliminary report of the assessment shall be
  4 15 submitted to the governor and the general assembly by January
  4 16 1, 2009, and a final report shall be submitted to the governor
  4 17 and the general assembly by January 1, 2011.
  4 18    Sec. 3.  Section 476.44, subsection 2, Code 2007, is
  4 19 amended to read as follows:
  4 20    2.  An electric utility subject to this division, except a
  4 21 utility that elects rate regulation pursuant to section
  4 22 476.1A, shall not be required to own or purchase, at any one
  4 23 time, more than its share of one hundred five megawatts of
  4 24 power from alternative energy production facilities or small
  4 25 hydro facilities at the rates established pursuant to section
  4 26 476.43.  The board shall allocate the one hundred five
  4 27 megawatts based upon each utility's percentage of the total
  4 28 Iowa retail peak demand, for the year beginning January 1,
  4 29 1990, of all utilities subject to this section.  If a utility
  4 30 undergoes reorganization as defined in section 476.76, the
  4 31 board shall combine the allocated purchases of power for each
  4 32 utility involved in the reorganization.
  4 33    Notwithstanding the one hundred five megawatt maximum, the
  4 34 board may increase the amount of power that a utility is
  4 35 required to own or purchase at the rates established pursuant
  5  1 to section 476.43 if the board finds that a utility, including
  5  2 a reorganized utility, exceeds its 1990 Iowa retail peak
  5  3 demand by twenty percent and the additional power the utility
  5  4 is required to purchase will encourage the development of
  5  5 alternate energy production facilities and small hydro
  5  6 facilities.  The increase shall not exceed the utility's
  5  7 increase in peak demand multiplied by the ratio of the
  5  8 utility's share of the one hundred five megawatt maximum to
  5  9 its 1990 Iowa retail peak demand.
  5 10    a.  The board shall establish for each electric utility the
  5 11 goal of producing or purchasing twenty=five percent of its
  5 12 total annual Iowa retail electric sales from alternative
  5 13 energy production facilities by December 31, 2025.
  5 14    b.  Any goal established by the board shall allow the
  5 15 continued sale of renewable energy credits associated with
  5 16 those facilities in any market for those credits.  The board
  5 17 may establish or participate in a program to track, record,
  5 18 and verify the trading of credits for electricity generated
  5 19 from renewable energy sources among electric generators,
  5 20 utilities, and other interested entities, within this state
  5 21 and among similar entities in other states.
  5 22                           EXPLANATION
  5 23    This bill relates to improving energy efficiency within
  5 24 this state.
  5 25    The bill provides for the establishment of an energy
  5 26 efficiency standard of a 1.5 percent annual reduction in
  5 27 projected energy use applicable to all gas and electric
  5 28 utilities as a statewide average goal.  The bill directs the
  5 29 Iowa utilities board to collaborate with each utility to
  5 30 determine an individualized and cost=effective energy
  5 31 efficiency goal, taking into consideration the utility service
  5 32 area's historic energy load, its projected demand, its
  5 33 consumer base, the effectiveness of previous or current energy
  5 34 efficiency plans, and other relevant factors.  The bill
  5 35 specifies that the goal may be implemented through
  6  1 modification of a utility's energy efficiency plan submitted
  6  2 pursuant to Code section 476.6, subsection 14, a plan
  6  3 developed and implemented by the board, a plan developed by a
  6  4 utility association and filed with and approved by the board,
  6  5 or pursuant to a third=party contract entered into by the
  6  6 utility.  The bill provides that, upon application, the board
  6  7 may establish an energy efficiency goal for a group or groups
  6  8 of utilities to pool their energy use reductions, and that a
  6  9 utility implementing a board=approved plan filed by an
  6 10 association or developed by the board shall be deemed to have
  6 11 meet its goal without having to determine an individualized
  6 12 goal.  The bill provides for itemization of energy efficiency
  6 13 plan costs to customers on their utility bills.
  6 14    The bill also establishes a goal applicable to electric
  6 15 utilities of producing or purchasing 25 percent of their total
  6 16 annual Iowa retail electric sales from alternative energy
  6 17 production facilities by December 31, 2025.  The bill
  6 18 specifies that this goal shall not impact renewable energy
  6 19 credit trading, and authorizes the board to track and monitor
  6 20 such trading.
  6 21    The bill provides for the establishment of a commission on
  6 22 energy efficiency standards and practices within the
  6 23 department of public safety, to be comprised of the state
  6 24 building code commissioner or designee, the director of the
  6 25 office of energy independence or designee, a licensed
  6 26 engineer, a registered architect, two individuals recognized
  6 27 in the construction industry as possessing expertise and
  6 28 experience in the construction or renovation of
  6 29 energy=efficient residential and commercial buildings, a
  6 30 member of a local planning and zoning commission or county
  6 31 board of supervisors, three representatives of gas and
  6 32 electric public utilities, a local building official, and two
  6 33 consumers.  The commission's duties would include evaluating
  6 34 energy efficiency standards applicable to buildings,
  6 35 developing recommendations for new energy efficiency
  7  1 standards, specifications, or guidelines applicable to new
  7  2 construction, developing recommendations for incentives for
  7  3 energy efficiency construction projects which exceed currently
  7  4 applicable state and local building codes, and developing
  7  5 recommendations for adopting a statewide energy efficiency
  7  6 building labeling or rating system.  An additional duty would
  7  7 involve obtaining input from individuals, groups,
  7  8 associations, and agencies in carrying out these specified
  7  9 duties as the commission determines appropriate.  The
  7 10 commission would exist for a two=year period, with a report of
  7 11 recommendations submitted to the governor and the general
  7 12 assembly by January 1, 2011.
  7 13 LSB 5711HV 82
  7 14 rn/rj/14