Senate File 500 - Introduced
SENATE FILE
BY COMMITTEE ON ECONOMIC
GROWTH
(SUCCESSOR TO SSB 1298)
Passed Senate, Date Passed House, Date
Vote: Ayes Nays Vote: Ayes Nays
Approved
A BILL FOR
1 An Act establishing the office of renewable energy and the Iowa
2 power fund and related provisions, and providing an effective
3 date.
4 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
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PAG LIN
1 1 Section 1. NEW SECTION. 469.1 DEFINITIONS.
1 2 For the purposes of this chapter:
1 3 1. "Council" means the Iowa power fund council created in
1 4 section 469.4.
1 5 2. "Director" means the director of renewable energy.
1 6 3. "Fund" means the Iowa power fund created in section
1 7 469.5.
1 8 4. "Office" means the governor's office of renewable
1 9 energy.
1 10 Sec. 2. NEW SECTION. 469.2 OFFICE OF RENEWABLE ENERGY.
1 11 The office of renewable energy is established in the office
1 12 of the governor to coordinate state activities concerning
1 13 renewable energy.
1 14 Sec. 3. NEW SECTION. 469.3 DIRECTOR OF RENEWABLE ENERGY.
1 15 1. A director of renewable energy shall be appointed by
1 16 the governor, subject to confirmation by the senate, and shall
1 17 serve at the pleasure of the governor. The governor shall
1 18 fill a vacancy in the office in the same manner as the
1 19 original appointment was made. The director shall be selected
1 20 primarily for administrative ability and knowledge concerning
1 21 renewable energy, renewable fuels, and energy efficiency. The
1 22 salary of the director shall be fixed by the governor.
1 23 2. The director shall do all of the following:
1 24 a. Direct the governor's office of renewable energy.
1 25 b. Manage the Iowa power fund.
1 26 c. Lead outreach and public education efforts concerning
1 27 renewable energy, renewable fuels, and energy efficiency.
1 28 d. Pursue new research and investment funds from federal
1 29 and private sources.
1 30 e. Coordinate and monitor all existing state and federal
1 31 renewable energy, renewable fuels, and energy efficiency
1 32 grants and programs.
1 33 f. Advise the governor and lieutenant governor concerning
1 34 renewable energy, renewable fuels, and energy efficiency
1 35 policy and legislation.
2 1 g. Establish performance measures for determining
2 2 effectiveness of renewable energy, renewable fuels, and energy
2 3 efficiency efforts.
2 4 h. Utilize assistance from the department of economic
2 5 development regarding administration of grants, loans, and
2 6 other financial incentives related to section 469.5,
2 7 subsection 3, paragraph "a", subparagraph (1), the department
2 8 of natural resources and the utilities board regarding
2 9 assistance in the administration of grants, loans, and other
2 10 financial incentives related to section 469.5, subsection 3,
2 11 paragraph "a", subparagraph (2), and other state agencies as
2 12 appropriate.
2 13 i. Coordinate with the department of natural resources
2 14 regarding the development of the state energy plan pursuant to
2 15 section 473.7.
2 16 j. Submit an annual report to the governor and general
2 17 assembly by November 1 of each year concerning the activities
2 18 and programs of the office, Iowa power fund, and other
2 19 departments related to renewable energy, renewable fuels, and
2 20 energy efficiency. The report shall include an assessment of
2 21 needs with respect to renewable energy, renewable fuels, and
2 22 energy efficiency efforts and policy and fiscal
2 23 recommendations for renewable energy, renewable fuels, and
2 24 energy efficiency.
2 25 k. Adopt rules pursuant to chapter 17A concerning the
2 26 office, the Iowa power fund, and the programs and functions of
2 27 the office and the fund.
2 28 Sec. 4. NEW SECTION. 469.4 IOWA POWER FUND COUNCIL.
2 29 1. A nine=member Iowa power fund council is created with
2 30 the following membership:
2 31 a. The chairperson of the utilities board or the
2 32 chairperson's designee.
2 33 b. The director of the department of economic development
2 34 or the director's designee.
2 35 c. The director of the department of natural resources or
3 1 the director's designee.
3 2 d. Six members appointed by the governor subject to
3 3 confirmation by the senate. An appointee shall have
3 4 demonstrated experience or expertise in one or more of the
3 5 fields of renewable energy, renewable fuels, energy
3 6 efficiency, greenhouse gas reductions, utility operations,
3 7 research and development of new technologies,
3 8 commercialization of new technologies, and economic
3 9 development.
3 10 2. The members appointed by the governor shall be
3 11 appointed for three=year staggered terms beginning and ending
3 12 as provided in section 69.19. A vacancy on the council shall
3 13 be filled for the unexpired term in the same manner as the
3 14 original appointment was made.
3 15 3. The members of the council shall be reimbursed for
3 16 actual and necessary travel and related expenses incurred in
3 17 the discharge of official duties. Each member of the council
3 18 may also be eligible to receive compensation as provided in
3 19 section 7E.6.
3 20 4. A majority of the members of the council constitutes a
3 21 quorum, and a majority of the total membership of the council
3 22 is necessary to act in any matter within the jurisdiction of
3 23 the council.
3 24 5. The duties of the council include all of the following:
3 25 a. Consider and approve grants, loans, or investments made
3 26 from the fund.
3 27 b. Advise the governor and director concerning strategic
3 28 direction for the fund.
3 29 c. Provide the governor with advice concerning economic
3 30 development, policy, technical issues, and strategic direction
3 31 concerning renewable energy, renewable fuels, and energy
3 32 efficiency.
3 33 Sec. 5. NEW SECTION. 469.5 IOWA POWER FUND.
3 34 1. The Iowa power fund is created in the state treasury
3 35 under the control of the office. The fund shall be separate
4 1 from the general fund of the state and the balance in the fund
4 2 shall not be considered part of the balance of the general
4 3 fund of the state. However, the fund shall be considered a
4 4 special account for the purposes of section 8.53, relating to
4 5 generally accepted accounting principles.
4 6 2. The Iowa power fund shall be used to further the goals
4 7 of increasing the production, development, and use of biofuels
4 8 and other sources of renewable energy, improve energy
4 9 efficiency, and reduce greenhouse gas emissions, and shall
4 10 encourage and provide for research, development,
4 11 commercialization, and the implementation of energy
4 12 technologies and practices. The technologies and practices
4 13 should reduce this state's dependence on foreign sources of
4 14 energy and finite fossil fuels, reduce emissions of greenhouse
4 15 gases and other environmental impacts, and meet the demand for
4 16 energy services in an economically viable manner. The
4 17 research, development, commercialization, implementation, and
4 18 distribution of such technologies and practices are intended
4 19 to sustain the environment and develop business in this state
4 20 as Iowans market these technologies and practices to the
4 21 world.
4 22 3. The fund shall consist of appropriations made to the
4 23 fund and other moneys available to and obtained or accepted by
4 24 the office from federal or private sources to the credit of
4 25 the fund. Notwithstanding section 12C.7, subsection 2,
4 26 interest or earnings on moneys in the fund shall be credited
4 27 to the fund.
4 28 4. a. Moneys available in the fund for a fiscal year are
4 29 appropriated to the office to be used in providing financial
4 30 assistance to entities conducting business, research, or
4 31 programs in Iowa:
4 32 (1) To accelerate research and development, knowledge
4 33 transfer, technology innovation, and improve the economic
4 34 competitiveness of efforts furthering the goals stated in
4 35 subsection 2.
5 1 (2) To increase the demand for and educate the public
5 2 about technologies and approaches furthering the goals stated
5 3 in subsection 2.
5 4 b. Eligibility criteria for grants awarded or loans made
5 5 pursuant to paragraph "a" after due diligence activities shall
5 6 be established by the director by rule, and shall include
5 7 documentation relating to the actual or potential development
5 8 of the following:
5 9 (1) Commercialization of technology and product
5 10 development for sale in the national and international market.
5 11 (2) Utilization of crops and products grown or produced in
5 12 this state.
5 13 (3) Reduction of greenhouse gas emissions and carbon
5 14 sequestration.
5 15 (4) Private or federal matching funds.
5 16 c. The council may reclaim any moneys granted or loaned if
5 17 the commitments set forth in the documentation required
5 18 pursuant to paragraph "b" are not met.
5 19 d. All grant and loan recipients must provide to the
5 20 council a report on the use and effectiveness of the moneys
5 21 granted or loaned on a periodic basis as determined by the
5 22 council.
5 23 5. Except as otherwise designated by law, the office shall
5 24 not utilize more than two hundred fifty thousand dollars of
5 25 the amount appropriated from the fund for a fiscal year for
5 26 administrative costs.
5 27 6. Notwithstanding section 8.33, moneys credited to the
5 28 Iowa power fund shall not revert to the fund from which
5 29 appropriated.
5 30 Sec. 6. NEW SECTION. 469.6 IOWA POWER FUND ==
5 31 APPROPRIATION.
5 32 1. There is appropriated from the general fund of the
5 33 state to the office of renewable energy for each fiscal year
5 34 of the fiscal period beginning July 1, 2008, and ending June
5 35 30, 2011, the sum of twenty=five million dollars to be used
6 1 for awarding grants and making loans from the Iowa power fund
6 2 created in section 469.5.
6 3 2. Of the moneys appropriated to the office and deposited
6 4 in the fund, the following shall be allocated on an annual
6 5 basis as follows:
6 6 a. For energy planning and education:
6 7 (1) One hundred fifty thousand dollars to the department
6 8 of natural resources for development of the state energy plan
6 9 pursuant to section 473.7.
6 10 (2) One hundred fifty thousand dollars to the department
6 11 of natural resources for the operation of a greenhouse gas
6 12 commission.
6 13 (3) Two hundred thousand dollars to the department of
6 14 public safety for education, training, and outreach by the
6 15 state building code commissioner to encourage compliance with
6 16 energy conservation requirements incorporated into the state
6 17 building code established in chapter 103A.
6 18 (4) Three hundred thousand dollars to the department of
6 19 education to develop a database for school energy consumption.
6 20 (5) One hundred thousand dollars to the center for energy
6 21 and environmental education at the university of northern Iowa
6 22 for public education and outreach relating to energy
6 23 conservation.
6 24 (6) One hundred thousand dollars to the center for global
6 25 and regional environmental research for public education and
6 26 outreach on greenhouse gas reductions in this state.
6 27 b. For energy efficiency:
6 28 (1) One million dollars to the Iowa power fund council for
6 29 grants for green building public and school building
6 30 construction.
6 31 (2) One million dollars to the Iowa power fund council for
6 32 local government and nonprofit energy saving innovation
6 33 grants.
6 34 c. For renewable energy and fuels development:
6 35 (1) One million dollars for expansion of the alternate
7 1 energy revolving loan fund administered by the Iowa energy
7 2 center pursuant to section 476.46.
7 3 (2) Five hundred thousand dollars to the Iowa energy
7 4 center for additional research projects.
7 5 (3) Five hundred thousand dollars to the university of
7 6 northern Iowa for a development project relating to perennial
7 7 prairie grass as a source of power and fuel.
7 8 Sec. 7. IOWA POWER FUND. There is appropriated from the
7 9 general fund of the state to the office of renewable energy
7 10 for the fiscal year beginning July 1, 2006, and ending June
7 11 30, 2007, the following amount, or so much thereof as is
7 12 necessary, to be used for the purposes designated:
7 13 For deposit in the Iowa power fund created in section
7 14 469.5:
7 15 .................................................. $ 24,420,000
7 16 The amount appropriated in this section is subject to the
7 17 annual allocations to be made from the fund pursuant to
7 18 section 469.6.
7 19 Sec. 8. EFFECTIVE DATE. This Act, being deemed of
7 20 immediate importance, takes effect upon enactment.
7 21 EXPLANATION
7 22 This bill creates the governor's office of renewable
7 23 energy, the position of director of renewable energy, the Iowa
7 24 power fund council, and the Iowa power fund in new Code
7 25 chapter 469. Duties for the office, director, and council are
7 26 specified. Grants, loans, and investments made from the fund
7 27 are subject to approval by the council.
7 28 The bill provides that the Iowa power fund shall be used to
7 29 further the goals of increasing the production, development,
7 30 and use of biofuels and other sources of renewable energy,
7 31 improve energy efficiency, and reduce greenhouse gas
7 32 emissions, and shall encourage and provide for research,
7 33 development, commercialization, and the implementation of
7 34 energy technologies and practices. Further, the technologies
7 35 and practices are intended to reduce the state's dependence on
8 1 foreign sources of energy and finite fossil fuels, reduce
8 2 greenhouse gas emissions, and meet the demand for energy in an
8 3 economical manner, sustain the environment, and develop
8 4 business in Iowa.
8 5 The bill specifies that moneys appropriated to the fund or
8 6 otherwise deposited into the fund shall be used to provide
8 7 financial assistance to entities in this state conducting
8 8 business, research, or programs to accelerate research and
8 9 development, knowledge transfer, technology innovation, and
8 10 improve economic competitiveness, and to increase the demand
8 11 for and educate the public about technologies and approaches,
8 12 all in furtherance of the goals established for the fund.
8 13 Eligibility criteria for grants or loans from the fund, to be
8 14 established by the director, are set forth.
8 15 The bill appropriates $24,420,000 to the Iowa power fund
8 16 from the general fund of the state for fiscal year 2007=2008,
8 17 and $25 million annually for fiscal years 2008=2009,
8 18 2009=2010, and 2010=2011. The bill makes allocations from the
8 19 appropriated amounts to specified agencies or entities for the
8 20 purposes of energy planning and education, energy efficiency,
8 21 and renewable energy and fuels development.
8 22 The bill takes effect upon enactment.
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