House Study Bill 742 



                                       SENATE/HOUSE FILE       
                                       BY  (PROPOSED GOVERNOR'S BILL)


    Passed Senate, Date               Passed House,  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 5711XL 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.  Members
  1 33 shall serve three=year terms beginning and ending as provided
  1 34 in section 69.19.  A vacancy on the commission shall be filled
  1 35 for the unexpired portion of the regular term in the same
  2  1 manner as regular appointments are made.  Members appointed by
  2  2 the commissioner shall be reimbursed for actual and necessary
  2  3 expenses incurred in performance of their duties.  Such
  2  4 members may also be eligible to receive compensation as
  2  5 provided in section 7E.6.  A majority of the members shall
  2  6 constitute a quorum.
  2  7    3.  Duties of the commission shall include but are not
  2  8 limited to the following:
  2  9    a.  Evaluate energy efficiency standards applicable to
  2 10 existing or newly constructed residential, commercial, and
  2 11 industrial buildings and vertical infrastructure at the state
  2 12 and local level and make suggestions for their improvement and
  2 13 enforcement.
  2 14    b.  Develop recommendations for new energy efficiency
  2 15 standards, specifications, or guidelines applicable to newly
  2 16 constructed residential, commercial, and industrial buildings
  2 17 and vertical infrastructure.
  2 18    c.  Develop recommendations for the establishment of
  2 19 incentives for energy efficiency construction projects which
  2 20 exceed currently applicable state and local building codes.
  2 21    d.  Develop recommendations for adoption of a statewide
  2 22 energy efficiency building labeling or rating system for
  2 23 residential, commercial, and industrial buildings and
  2 24 complexes.
  2 25    4.  The commission shall be formed for the two=year period
  2 26 beginning July 1, 2008, and ending June 30, 2010, and shall
  2 27 submit a report to the governor and the general assembly by
  2 28 January 1, 2011, regarding its activities and recommendations.
  2 29 Administrative support shall be furnished by the department of
  2 30 public safety, with the assistance of the office of energy
  2 31 independence and the department of natural resources.
  2 32    Sec. 2.  Section 476.6, Code Supplement 2007, is amended by
  2 33 adding the following new subsection:
  2 34    NEW SUBSECTION.  23.  ENERGY SAVINGS STANDARD.
  2 35    The board shall establish an energy efficiency standard of
  3  1 a one and one=half percent annual reduction in projected
  3  2 energy use applicable to all gas and electric utilities as a
  3  3 statewide average goal.  In applying the standard, the board
  3  4 shall collaborate with each utility to determine an
  3  5 individualized and cost=effective energy efficiency goal,
  3  6 taking into consideration the utility service area's historic
  3  7 energy load, its projected demand, its consumer base, and
  3  8 other relevant factors.  The goal applicable to a gas and
  3  9 electric utility may be implemented through modification of
  3 10 the utility's energy efficiency plan submitted pursuant to
  3 11 subsection 14, a plan developed and implemented by the board,
  3 12 or pursuant to a third=party contract entered into by the
  3 13 utility.  Upon application, the board may establish an energy
  3 14 efficiency goal for a group or groups of utilities to pool
  3 15 their energy use reductions.
  3 16    Sec. 3.  Section 476.44, subsection 2, Code 2007, is
  3 17 amended to read as follows:
  3 18    2.  An electric utility subject to this division, except a
  3 19 utility that elects rate regulation pursuant to section
  3 20 476.1A, shall not be required to own or purchase, at any one
  3 21 time, more than its share of one hundred five megawatts of
  3 22 power from alternative energy production facilities or small
  3 23 hydro facilities at the rates established pursuant to section
  3 24 476.43.  The board shall allocate the one hundred five
  3 25 megawatts based upon each utility's percentage of the total
  3 26 Iowa retail peak demand, for the year beginning January 1,
  3 27 1990, of all utilities subject to this section.  If a utility
  3 28 undergoes reorganization as defined in section 476.76, the
  3 29 board shall combine the allocated purchases of power for each
  3 30 utility involved in the reorganization.
  3 31    Notwithstanding the one hundred five megawatt maximum, the
  3 32 board may increase the amount of power that a utility is
  3 33 required to own or purchase at the rates established pursuant
  3 34 to section 476.43 if the board finds that a utility, including
  3 35 a reorganized utility, exceeds its 1990 Iowa retail peak
  4  1 demand by twenty percent and the additional power the utility
  4  2 is required to purchase will encourage the development of
  4  3 alternate energy production facilities and small hydro
  4  4 facilities.  The increase shall not exceed the utility's
  4  5 increase in peak demand multiplied by the ratio of the
  4  6 utility's share of the one hundred five megawatt maximum to
  4  7 its 1990 Iowa retail peak demand.  The board shall establish
  4  8 for each electric utility the goal of producing or purchasing
  4  9 twenty=five percent of its total annual Iowa retail electric
  4 10 sales from alternative energy production facilities by
  4 11 December 31, 2025.
  4 12                           EXPLANATION
  4 13    This bill relates to improving energy efficiency within
  4 14 this state.
  4 15    The bill provides for the establishment of an energy
  4 16 efficiency standard of a 1.5 percent annual reduction in
  4 17 projected energy use applicable to all gas and electric
  4 18 utilities as a statewide average goal.  The bill directs the
  4 19 Iowa utilities board to collaborate with each utility to
  4 20 determine an individualized and cost=effective energy
  4 21 efficiency goal, taking into consideration the utility service
  4 22 area's historic energy load, its projected demand, its
  4 23 consumer base, and other relevant factors.  The bill specifies
  4 24 that the goal may be implemented through modification of a
  4 25 utility's energy efficiency plan submitted pursuant to Code
  4 26 section 476.6, subsection 14, a plan developed and implemented
  4 27 by the board, or pursuant to a third=party contract entered
  4 28 into by the utility.  The bill provides that, upon
  4 29 application, the board may establish an energy efficiency goal
  4 30 for a group or groups of utilities to pool their energy use
  4 31 reductions.
  4 32    The bill also establishes a goal applicable to electric
  4 33 utilities of producing or purchasing 25 percent of their total
  4 34 annual Iowa retail electric sales from alternative energy
  4 35 production facilities by December 31, 2025.
  5  1    The bill provides for the establishment of a commission on
  5  2 energy efficiency standards and practices within the
  5  3 department of public safety, to be comprised of the state
  5  4 building code commissioner or designee, the director of the
  5  5 office of energy independence or designee, a licensed
  5  6 engineer, a registered architect, two individuals recognized
  5  7 in the construction industry as possessing expertise and
  5  8 experience in the construction or renovation of
  5  9 energy=efficient residential and commercial buildings, a
  5 10 member of a local planning and zoning commission or county
  5 11 board of supervisors, three representatives of gas and
  5 12 electric public utilities, a local building official, and two
  5 13 consumers.  The commission's duties would include evaluating
  5 14 energy efficiency standards applicable to buildings,
  5 15 developing recommendations for new energy efficiency
  5 16 standards, specifications, or guidelines applicable to new
  5 17 construction, developing recommendations for incentives for
  5 18 energy efficiency construction projects which exceed currently
  5 19 applicable state and local building codes, and developing
  5 20 recommendations for adopting a statewide energy efficiency
  5 21 building labeling or rating system.  The commission would
  5 22 exist for a two=year period, with a report of recommendations
  5 23 submitted to the governor and the general assembly by January
  5 24 1, 2011.
  5 25 LSB 5711XL 82
  5 26 rn/rj/14.1