Senate Study Bill 3285 



                                       SENATE FILE       
                                       BY  (PROPOSED COMMITTEE ON
                                            APPROPRIATIONS BILL BY
                                            CHAIRPERSON DVORSKY)


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

                                      A BILL FOR

  1 An Act relating to energy independence initiatives, specifying
  2    procedures applicable to Iowa power fund applications,
  3    authorizing allocations from the fund, authorizing increased
  4    allocations for administrative costs, and providing an
  5    effective date and applicability provision.
  6 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
  7 TLSB 6604SC 82
  8 rn/nh/8

PAG LIN



  1  1    Section 1.  Section 22.7, Code Supplement 2007, is amended
  1  2 by adding the following new subsection:
  1  3    NEW SUBSECTION.  60.  Information possessed by the office
  1  4 of energy independence, the Iowa power fund board, or the due
  1  5 diligence committee associated with the office and the board,
  1  6 relating to a prospective applicant with which the office,
  1  7 board, or committee is currently negotiating, or an award
  1  8 recipient, to the extent authorized pursuant to section 469.6,
  1  9 subsection 6.
  1 10    Sec. 2.  Section 469.6, subsection 5, paragraph d, Code
  1 11 Supplement 2007, is amended to read as follows:
  1 12    d.  Direct moneys from the fund to be used to purchase
  1 13 private or public technical assistance needed to conduct due
  1 14 diligence activities, to facilitate a technical, scientific,
  1 15 or financial review relating to an application for financial
  1 16 assistance to the extent not financed by the applicant and if
  1 17 recommended by the due diligence committee, and to develop an
  1 18 Iowa energy independence plan, pursuant to section 469.10,
  1 19 subsection 3A.  Other than applicant financing of a technical,
  1 20 scientific, or financial review of an application for
  1 21 financial assistance if agreed to by an applicant and the due
  1 22 diligence committee, an application fee shall not be imposed.
  1 23    Sec. 3.  Section 469.6, Code Supplement 2007, is amended by
  1 24 adding the following new subsection:
  1 25    NEW SUBSECTION.  6.  a.  In establishing guidelines,
  1 26 procedures, and policies for the awarding of financial
  1 27 assistance, the board shall give due regard to the
  1 28 confidentiality of certain information disclosed during the
  1 29 financial assistance application process and the contract
  1 30 administration process.
  1 31    b.  All information contained in an application for
  1 32 financial assistance submitted to the board shall remain
  1 33 confidential while the board is reviewing the application,
  1 34 processing requests for confidentiality, negotiating with the
  1 35 applicant, and preparing the application for consideration by
  2  1 the board.  After the board has considered a request for
  2  2 confidentiality, any information not deemed confidential by
  2  3 the board shall be made publicly available.  Any information
  2  4 deemed confidential by the board shall also be kept
  2  5 confidential by the office and board during administration of
  2  6 a contract executed pursuant to a successful application.
  2  7    c.  The board shall consider the written request of an
  2  8 applicant or award recipient to keep confidential certain
  2  9 details of an application, a contract, or the materials
  2 10 submitted in support of an application or a contract.  If the
  2 11 request includes a sufficient explanation as to why the public
  2 12 disclosure of such details would give an unfair advantage to
  2 13 competitors, the board may keep certain details confidential.
  2 14 If the board elects to keep certain details confidential, the
  2 15 board shall release only the nonconfidential details in
  2 16 response to a request for records pursuant to chapter 22.  If
  2 17 confidential details are withheld from a request for records
  2 18 pursuant to chapter 22, the board shall release an explanation
  2 19 of why the information was deemed confidential and a summary
  2 20 of the nature of the information withheld.  In considering
  2 21 requests for confidential treatment, the board shall narrowly
  2 22 construe the provisions of this paragraph and paragraphs "a",
  2 23 "b", "d", and "e" in order to appropriately balance an
  2 24 applicant's need for confidentiality against the public's
  2 25 right to information about the board's activities.
  2 26    d.  If a request for confidentiality is denied by the
  2 27 board, an applicant may withdraw an application and any
  2 28 supporting materials, and the board shall not retain any
  2 29 copies of the application.  Upon notice that an application
  2 30 has been withdrawn, the board shall not release a copy in
  2 31 response to a request for records pursuant to chapter 22.
  2 32    e.  The board shall adopt by rule a process for considering
  2 33 requests to keep information confidential pursuant to this
  2 34 paragraph and paragraphs "a" through "d".  The board may adopt
  2 35 emergency rules pursuant to chapter 17A.  The rules shall
  3  1 include a reasonable period of time for keeping information
  3  2 confidential.  At the end of such period of time, the board
  3  3 may reevaluate its decision to keep information confidential.
  3  4 When reevaluating a decision to keep information confidential,
  3  5 the board shall use the same standard used to make the initial
  3  6 decision.  The rules shall also include criteria for guiding
  3  7 the board's decisions about the confidential treatment of
  3  8 applicant information.  The criteria may include, but are not
  3  9 limited to the following:
  3 10    (1)  The nature and extent of competition in the
  3 11 applicant's industry sector.
  3 12    (2)  The likelihood of adverse financial impact to the
  3 13 applicant if the information were to be released.
  3 14    (3)  The risk that the applicant would locate in another
  3 15 state if the request is denied.
  3 16    (4)  Any other factor the board reasonably considers
  3 17 relevant.
  3 18    Sec. 4.  Section 469.10, subsection 1, Code Supplement
  3 19 2007, is amended to read as follows:
  3 20    1.  There is appropriated from the general fund of the
  3 21 state to the office of energy independence for each fiscal
  3 22 year of the fiscal period beginning July 1, 2008, and ending
  3 23 June 30, 2011, the sum of twenty=five million dollars to be
  3 24 used for awarding grants and making loans from the Iowa power
  3 25 fund, and for all other purposes specified in and consistent
  3 26 with this subchapter.
  3 27    Sec. 5.  Section 469.10, subsection 2, Code Supplement
  3 28 2007, is amended to read as follows:
  3 29    2.  Of the moneys appropriated to the office and deposited
  3 30 in the fund, the office shall utilize up to one and
  3 31 five=tenths five percent of the amount appropriated from the
  3 32 fund for a fiscal year for administrative costs.  From the
  3 33 funds available for administrative costs, the office shall not
  3 34 employ more than four full=time equivalent positions.
  3 35    Sec. 6.  Section 469.10, Code Supplement 2007, is amended
  4  1 by adding the following new subsection:
  4  2    NEW SUBSECTION.  3A.  Of the moneys appropriated to the
  4  3 office and deposited in the fund, the board may make
  4  4 allocations for the purchase of private or public technical
  4  5 assistance needed to conduct due diligence activities, to
  4  6 facilitate a technical, scientific, or financial review
  4  7 relating to an application for financial assistance to the
  4  8 extent not financed by the applicant and if recommended by the
  4  9 due diligence committee, and to develop an Iowa energy
  4 10 independence plan, in amounts and in instances as approved by
  4 11 the due diligence committee.
  4 12    Sec. 7.  2007 Iowa Acts, chapter 209, section 2, is amended
  4 13 to read as follows:
  4 14    SEC. 2.  IOWA POWER FUND.  There is appropriated from the
  4 15 general fund of the state to the office of energy
  4 16 independence, if enacted by 2007 Iowa Acts, House File 918, or
  4 17 its successor, for the fiscal year beginning July 1, 2006, and
  4 18 ending June 30, 2007, the following amount, or so much thereof
  4 19 as is necessary, to be used for the purposes designated:
  4 20    For deposit in the Iowa power fund, if enacted by 2007 Iowa
  4 21 Acts, House File 918, or its successor, to be used for
  4 22 awarding grants and making loans from the Iowa power fund, and
  4 23 for all other purposes specified in and consistent with the
  4 24 provisions of House File 918, or its successor:
  4 25 .................................................. $ 24,670,000
  4 26    1.  Of the moneys appropriated to the office and deposited
  4 27 in the fund, the office shall utilize up to one and
  4 28 five=tenths percent of the amount appropriated from the fund
  4 29 for administrative purposes.
  4 30    2.  Of the moneys appropriated to the office and deposited
  4 31 in the fund, there shall be allocated two million five hundred
  4 32 thousand dollars to the department of economic development for
  4 33 deposit into the workforce training and economic development
  4 34 funds of the community colleges created pursuant to section
  4 35 260C.18A.  Of the funds so deposited into the workforce
  5  1 training and economic development funds of the community
  5  2 colleges, two million five hundred thousand dollars shall be
  5  3 used each year in the development and expansion of energy
  5  4 industry areas and for the department's north American
  5  5 industrial classification system for targeted industry areas
  5  6 established pursuant to section 260C.18A.
  5  7    2A.  Of the moneys appropriated to the office and deposited
  5  8 in the fund, the board may allocate moneys for the purchase of
  5  9 private or public technical assistance needed to conduct due
  5 10 diligence activities, to facilitate a technical, scientific,
  5 11 or financial review relating to an application for financial
  5 12 assistance to the extent not financed by the applicant and if
  5 13 recommended by the due diligence committee, and to develop an
  5 14 Iowa energy independence plan.
  5 15    3.  Notwithstanding section 8.33, amounts appropriated
  5 16 pursuant to this section shall not revert but shall remain
  5 17 available for the purposes designated for the following fiscal
  5 18 year.  Notwithstanding section 12C.7, subsection 2, interest
  5 19 or earnings on moneys in the funds shall be credited to the
  5 20 fund.
  5 21    Sec. 8.  APPLICABILITY.  The section of this Act amending
  5 22 section 22.7, relating to an exception to the open records
  5 23 law, and enacting section 469.6, subsection 6, relating to
  5 24 board determination of confidentiality upon a request for
  5 25 records pursuant to chapter 22, shall apply to requests in
  5 26 relation to applications that are in process on the effective
  5 27 date of this Act.
  5 28    Sec. 9.  EFFECTIVE DATE.  This Act, being deemed of
  5 29 immediate importance, takes effect upon enactment.
  5 30                           EXPLANATION
  5 31    This bill relates to energy independence initiatives,
  5 32 specifying procedures applicable to applications for
  5 33 distributions from the Iowa power fund, and modifying
  5 34 provisions regarding authorized allocations from the fund.
  5 35    The bill provides with reference to the duties of the Iowa
  6  1 power fund board that the board may direct moneys from the
  6  2 fund to facilitate a technical, scientific, or financial
  6  3 review relating to an application to the extent that such a
  6  4 review is not financed by an applicant and if utilizing the
  6  5 funds for this purpose is recommended by the due diligence
  6  6 committee.  The bill states that beyond applicant financing of
  6  7 such a review if agreed to by an applicant and the board, no
  6  8 application fee for fund distribution applications will be
  6  9 imposed.  Utilization of fund moneys for this purpose,
  6 10 together with currently authorized expenditures by the board
  6 11 for the purchase of private or public technical assistance
  6 12 needed to conduct due diligence activities and to develop an
  6 13 Iowa energy independence plan, is added as an authorized
  6 14 allocation from amounts appropriated to the fund pursuant to
  6 15 Code section 469.10.  More generally, the bill provides that
  6 16 allocations of appropriated amounts may be made for all
  6 17 purposes specified in and consistent with the subchapter of
  6 18 the Code relating to the office of energy independence, the
  6 19 power fund board, the due diligence committee, the power fund,
  6 20 and related provisions.
  6 21    The bill accomplishes the foregoing by amending Code
  6 22 section 469.6, relating to the duties of the Iowa power fund
  6 23 board, by amending Code section 469.10, subsection 1,
  6 24 regarding appropriations for the fiscal period beginning July
  6 25 1, 2008, and ending June 30, 2011, and amending the 2007 Iowa
  6 26 Acts for the one=year appropriation beginning July 1, 2006,
  6 27 and ending June 30, 2007.
  6 28    The bill also provides an exception from open records law
  6 29 provisions of Code chapter 22, for information possessed by
  6 30 the office of energy independence, the Iowa power fund board,
  6 31 and the due diligence committee associated with the office and
  6 32 the board relating to a prospective applicant with which the
  6 33 office, board, or committee is currently negotiating, or an
  6 34 award recipient, to the extent authorized by the board.  In
  6 35 connection with this exception, the bill provides that all
  7  1 information contained in an application for financial
  7  2 assistance submitted to the board shall remain confidential
  7  3 while the board is reviewing an application, processing
  7  4 confidentiality requests, negotiating with an applicant, and
  7  5 preparing an application for consideration.  The bill further
  7  6 provides that the board shall consider a written request by an
  7  7 applicant or award recipient to keep certain details of an
  7  8 application, contract, or supporting materials confidential,
  7  9 and may honor that request if convinced that public disclosure
  7 10 may give an unfair advantage to competitors.  In that event,
  7 11 the board will only make publicly available information not
  7 12 deemed confidential by the board, and shall release an
  7 13 explanation of why certain information is deemed confidential
  7 14 and a summary of the nature of the withheld information.  If a
  7 15 request for confidentiality is denied, an applicant may
  7 16 withdraw an application and supporting materials, and the
  7 17 board shall not retain a copy or release any material in
  7 18 response to an open records request.  The bill directs the
  7 19 board by rule to develop a process for considering
  7 20 confidentiality requests, confers emergency rulemaking
  7 21 authority on the board, and requires the board to determine a
  7 22 reasonable time frame for maintaining the confidential status
  7 23 of materials deemed such, after which the board may reevaluate
  7 24 the determination of confidentiality.  The bill also specifies
  7 25 criteria the board may use in making confidentiality
  7 26 determinations.
  7 27    Additionally, the bill increases the amount the office is
  7 28 authorized to utilize for administrative costs from amounts
  7 29 appropriated to the fund for a fiscal year from 1.5 percent to
  7 30 5 percent.
  7 31    The bill takes effect upon enactment.
  7 32 LSB 6604SC 82
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