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
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