House File 349 - Introduced HOUSE FILE 349 BY WATTS A BILL FOR An Act relating to energy management and regulation by 1 repealing provisions establishing the office of energy 2 independence and the Iowa power fund, repealing provisions 3 establishing the office of consumer advocate, creating 4 the Iowa energy regulatory board and transferring current 5 responsibilities of the Iowa utilities board to the 6 Iowa energy regulatory board, and including transition 7 provisions. 8 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 9 TLSB 1638YH (10) 84 rn/sc

H.F. 349 Section 1. Section 8A.412, subsection 11, Code 2011, is 1 amended to read as follows: 2 11. Professional employees under the supervision of the 3 attorney general, the state public defender, the secretary of 4 state, the auditor of state, the treasurer of state, and the 5 public employment relations board. However, employees of the 6 consumer advocate division of the department of justice, other 7 than the consumer advocate, are subject to the merit system. 8 Sec. 2. Section 11.5B, subsection 15, Code 2011, is amended 9 by striking the subsection. 10 Sec. 3. Section 12.91, subsection 1, paragraph b, Code 2011, 11 is amended to read as follows: 12 b. “Chargeable expenses” means expenses charged by the 13 utilities energy regulatory board and the consumer advocate 14 division of the department of justice under section 476.10 . 15 Sec. 4. Section 15H.6, subsection 1, Code 2011, is amended 16 to read as follows: 17 1. The Iowa commission on volunteer service, in 18 collaboration with the department of natural resources, the 19 department of workforce development, the office of energy 20 independence, and the utilities energy regulatory board of the 21 department of commerce, shall establish an Iowa green corps 22 program. The commission shall work with the collaborating 23 agencies and nonprofit agencies in developing a strategy for 24 attracting additional financial resources for the program 25 from other sources which may include but are not limited to 26 utilities, private sector, and local, state, and federal 27 government funding sources. The financial resources received 28 shall be credited to the community programs account created 29 pursuant to section 15H.5 . 30 Sec. 5. Section 17A.2, subsection 1, Code 2011, is amended 31 to read as follows: 32 1. “Agency” means each board, commission, department, 33 officer or other administrative office or unit of the state. 34 “Agency” does not mean the general assembly, the judicial branch 35 -1- LSB 1638YH (10) 84 rn/sc 1/ 22

H.F. 349 or any of its components, the office of consumer advocate, 1 the governor, or a political subdivision of the state or its 2 offices and units. Unless provided otherwise by statute, no 3 less than two-thirds of the members eligible to vote of a 4 multimember agency constitute a quorum authorized to act in the 5 name of the agency. 6 Sec. 6. Section 20.4, subsection 9, Code 2011, is amended 7 to read as follows: 8 9. Persons employed by the state department of justice , 9 except nonsupervisory employees of the consumer advocate 10 division who are employed primarily for the purpose of 11 performing technical analysis of nonlegal issues . 12 Sec. 7. Section 22.7, subsection 60, Code 2011, is amended 13 by striking the subsection. 14 Sec. 8. Section 68B.35, subsection 2, paragraph e, Code 15 2011, is amended to read as follows: 16 e. Members of the state banking council, the ethics and 17 campaign disclosure board, the credit union review board, the 18 economic development board, the employment appeal board, the 19 environmental protection commission, the health facilities 20 council, the Iowa finance authority, the Iowa public employees’ 21 retirement system investment board, the board of the Iowa 22 lottery authority, the natural resource commission, the board 23 of parole, the petroleum underground storage tank fund board, 24 the public employment relations board, the state racing and 25 gaming commission, the state board of regents, the tax review 26 board, the transportation commission, the office of consumer 27 advocate, the utilities board, the energy regulatory board, 28 the Iowa telecommunications and technology commission, and 29 any full-time members of other boards and commissions as 30 defined under section 7E.4 who receive an annual salary for 31 their service on the board or commission. The Iowa ethics 32 and campaign disclosure board shall conduct an annual review 33 to determine if members of any other board, commission, or 34 authority should file a statement and shall require the filing 35 -2- LSB 1638YH (10) 84 rn/sc 2/ 22

H.F. 349 of a statement pursuant to rules adopted pursuant to chapter 1 17A . 2 Sec. 9. Section 72.5, subsection 2, Code 2011, is amended 3 to read as follows: 4 2. The director of the office of energy independence 5 chairperson of the energy regulatory board, in consultation 6 with the department of management, state building code 7 commissioner, and state fire marshal, shall develop standards 8 and methods to evaluate design development documents and 9 construction documents based upon life cycle cost factors 10 to facilitate fair and uniform comparisons between design 11 proposals and informed decision making by public bodies. 12 Sec. 10. Section 103A.27, subsection 1, paragraph b, Code 13 2011, is amended to read as follows: 14 b. The director of the office of energy independence 15 chairperson of the energy regulatory board , or the director’s 16 chairperson’s designee. 17 Sec. 11. Section 266.39C, subsection 2, paragraph a, 18 subparagraph (6), Code 2011, is amended to read as follows: 19 (6) One representative of the office of energy independence 20 energy regulatory board , appointed by the director chairperson . 21 Sec. 12. Section 266.39C, subsection 2, paragraph a, 22 subparagraphs (8) and (9), Code 2011, are amended by striking 23 the subparagraphs. 24 Sec. 13. Section 266.39C, subsection 2, paragraph a, 25 subparagraph (12), Code 2011, is amended to read as follows: 26 (12) Two Three representatives from investor-owned 27 utilities, one representing gas utilities, appointed by the 28 Iowa utility association, and one two representing electric 29 utilities, appointed by the Iowa utility association. 30 Sec. 14. Section 268.6, subsection 2, Code 2011, is amended 31 to read as follows: 32 2. The university is encouraged to cooperate with 33 agricultural and energy efficiency advocates and governmental 34 entities in administering the program, including the office 35 -3- LSB 1638YH (10) 84 rn/sc 3/ 22

H.F. 349 of energy independence established pursuant to section 469.2 1 energy regulatory board . 2 Sec. 15. Section 323A.2, subsection 1, paragraph c, Code 3 2011, is amended to read as follows: 4 c. The director chairperson of the office of energy 5 independence energy regulatory board determines that the 6 franchisee has demonstrated that a special hardship exists in 7 the community served by the franchisee relating to the public 8 health, safety, and welfare, as specified under the rules of 9 the office. 10 Sec. 16. Section 470.1, Code 2011, is amended by adding the 11 following new subsections: 12 NEW SUBSECTION . 01. “Board” means the energy regulatory 13 board. 14 NEW SUBSECTION . 001. “Chairperson” means the chairperson 15 of the energy regulatory board. 16 Sec. 17. Section 470.1, subsections 2 and 8, Code 2011, are 17 amended by striking the subsections. 18 Sec. 18. Section 470.8, unnumbered paragraph 2, Code 2011, 19 is amended to read as follows: 20 The commissioner, in consultation with the director 21 chairperson , shall, by rule, develop criteria to exempt 22 facilities from the implementation requirements of this 23 section . Using the criteria, the commissioner, in cooperation 24 with the director chairperson , shall exempt facilities on a 25 case by case case-by-case basis. Factors to be considered 26 when developing the exemption criteria shall include , but not 27 be limited to , a description of the purpose of the facility 28 or renovation, the preservation of historical architectural 29 features, site considerations, and health and safety concerns. 30 The commissioner and the director chairperson shall grant or 31 deny a request for exemption from the requirements of this 32 section within thirty days of receipt of the request. 33 Sec. 19. Section 473.1, Code 2011, is amended by adding the 34 following new subsections: 35 -4- LSB 1638YH (10) 84 rn/sc 4/ 22

H.F. 349 NEW SUBSECTION . 02. “Board” means the energy regulatory 1 board. 2 NEW SUBSECTION . 002. “Chairperson” means the chairperson 3 of the energy regulatory board. 4 Sec. 20. Section 473.1, subsections 3 and 5, Code 2011, are 5 amended by striking the subsections. 6 Sec. 21. Section 473.8, subsection 2, paragraph a, 7 subparagraph (4), Code 2011, is amended to read as follows: 8 (4) Delegate any administrative authority vested in the 9 governor to the office board or the director chairperson . 10 Sec. 22. Section 473.10, Code 2011, is amended to read as 11 follows: 12 473.10 Reserve required. 13 1. If the office board or the governor finds that an 14 impending or actual shortage or distribution imbalance of 15 liquid fossil fuels may cause hardship or pose a threat to the 16 health and economic well-being of the people of the state or 17 a significant segment of the state’s population, the office 18 board or the governor may authorize the director chairperson to 19 operate a liquid fossil fuel set-aside program as provided in 20 subsection 2 . 21 2. Upon authorization by the office board or the governor 22 the director chairperson may require a prime supplier to 23 reserve a specified fraction of the prime supplier’s projected 24 total monthly release of liquid fossil fuel in Iowa. The 25 director chairperson may release any or all of the fuel 26 required to be reserved by a prime supplier to end-users or to 27 distributors for release through normal retail distribution 28 channels to retail customers. However, the specified fraction 29 required to be reserved shall not exceed three percent for 30 propane, aviation fuel and residual oil, and five percent for 31 motor gasoline, heating oil, and diesel oil. 32 3. The office board shall periodically review and may 33 terminate the operation of a set-aside program authorized by 34 the office board under subsection 1 when the office board 35 -5- LSB 1638YH (10) 84 rn/sc 5/ 22

H.F. 349 finds that the conditions that prompted the authorization no 1 longer exist. The governor shall periodically review and may 2 terminate the operation of a set-aside program authorized by 3 the governor under subsection 1 when the governor finds that 4 the conditions that prompted the authorization no longer exist. 5 4. The director chairperson shall adopt rules to implement 6 this section . 7 Sec. 23. Section 474.9, Code 2011, is amended to read as 8 follows: 9 474.9 General jurisdiction of utilities energy regulatory 10 board. 11 The utilities energy regulatory board has general 12 supervision of all pipelines and all lines for the 13 transmission, sale, and distribution of electrical current 14 for light, heat, and power pursuant to chapters 476 , 476A , 15 478 , 479 , 479A , and 479B , has general responsibility for 16 representing consumer interests in electric, gas, and telephone 17 regulatory issues at the state and federal level, and has other 18 duties as provided by law. 19 Sec. 24. Section 474.10, Code 2011, is amended to read as 20 follows: 21 474.10 General counsel. 22 1. The board shall employ a competent attorney to serve 23 as its general counsel, and assistants to the general counsel 24 as it finds necessary for the full and efficient discharge 25 of its duties. The general counsel is the attorney for, and 26 legal advisor of, the board and is exempt from the merit system 27 provisions of chapter 8A, subchapter IV . Assistants to the 28 general counsel are subject to the merit system provisions of 29 chapter 8A, subchapter IV . The general counsel or an assistant 30 to the general counsel shall provide the Duties of the general 31 counsel, and assistants to the general counsel, shall include 32 the following: 33 a. Providing necessary legal advice to the board in all 34 matters and represent representing the board in all actions 35 -6- LSB 1638YH (10) 84 rn/sc 6/ 22

H.F. 349 instituted in a state or federal court challenging the validity 1 of a rule or order of the board. 2 b. Investigating the legality of all rates, charges, 3 rules, regulations, and practices of all persons under the 4 jurisdiction of the energy regulatory board, and instituting 5 civil proceedings before the board or any court to correct 6 any illegality on the part of any such person. In any such 7 investigation, the general counsel shall have the power to 8 ask the board to issue subpoenas, compel the attendance and 9 testimony of witnesses, and the production of papers, books, 10 and documents, at the discretion of the board. 11 2. The existence of a fact which disqualifies a person from 12 election or from acting as a utilities an energy regulatory 13 board member disqualifies the person from employment as general 14 counsel or assistant general counsel. The general counsel 15 shall devote full time to the duties of the office. During 16 employment the counsel shall not be a member of a political 17 committee, contribute to a political campaign fund other than 18 through the income tax checkoff for contributions to the Iowa 19 election campaign fund and the presidential election campaign 20 fund, participate in a political campaign, or be a candidate 21 for a political office. 22 Sec. 25. Section 476.1B, subsection 1, paragraph a, Code 23 2011, is amended by striking the paragraph. 24 Sec. 26. Section 476.1C, subsection 2, Code 2011, is amended 25 to read as follows: 26 2. If, as a result of a review of a proposed new or 27 changed rate, charge, schedule, or regulation of a gas public 28 utility having fewer than two thousand customers, the consumer 29 advocate general counsel alleges in a filing with the board 30 that the utility rates are excessive, the disputed amounts 31 shall be specified by the consumer advocate general counsel 32 in the filing. The gas public utility shall, within the time 33 prescribed by the board, file a bond or undertaking approved by 34 the board conditioned upon the refund in a manner prescribed 35 -7- LSB 1638YH (10) 84 rn/sc 7/ 22

H.F. 349 by the board of amounts collected after the date of the filing 1 which are in excess of rates or charges finally determined 2 by the board to be lawful. If after formal proceeding and 3 hearing pursuant to section 476.6 the board finds that the 4 utility rates are unlawful, the board shall order a refund, 5 with interest, of amounts collected after the date of filing 6 of the petition that are determined to be in excess of the 7 amounts which would have been collected under the rates finally 8 approved. However, the board shall not order a refund that 9 is greater than the amount specified in the petition, plus 10 interest. If the board fails to render a decision within 11 ten months following the date of filing of the petition, the 12 board shall not order a refund of any excess amounts that are 13 collected after the expiration of that ten-month period and 14 prior to the date the decision is rendered. 15 Sec. 27. Section 476.3, subsections 1 and 2, Code 2011, are 16 amended to read as follows: 17 1. A public utility shall furnish reasonably adequate 18 service at rates and charges in accordance with tariffs filed 19 with the board. When there is filed with the board by any 20 person or body politic, or filed by the board upon its own 21 motion, a written complaint requesting the board to determine 22 the reasonableness of the rates, charges, schedules, service, 23 regulations, or anything done or omitted to be done by a 24 public utility subject to this chapter in contravention of 25 this chapter , the written complaint shall be forwarded by 26 the board to the public utility, which shall be called upon 27 to satisfy the complaint or to answer it in writing within a 28 reasonable time to be specified by the board. Copies of the 29 written complaint forwarded by the board to the public utility 30 and copies of all correspondence from the public utility in 31 response to the complaint shall be provided by the board in 32 an expeditious manner to the consumer advocate. If the board 33 determines the public utility’s response is inadequate and 34 there appears to be any reasonable ground for investigating 35 -8- LSB 1638YH (10) 84 rn/sc 8/ 22

H.F. 349 the complaint, the board shall promptly initiate a formal 1 proceeding. If the consumer advocate determines the public 2 utility’s response to the complaint is inadequate, the consumer 3 advocate may file a petition with the board which shall 4 promptly initiate a formal proceeding if the board determines 5 that there is any reasonable ground for investigating the 6 complaint. The complainant or the public utility also may 7 petition the board to initiate a formal proceeding which 8 petition shall be granted if the board determines that there 9 is any reasonable ground for investigating the complaint. The 10 formal proceeding may be initiated at any time by the board on 11 its own motion. If a proceeding is initiated upon petition 12 filed by the consumer advocate, complainant , or the public 13 utility, or upon the board’s own motion, the board shall set 14 the case for hearing and give notice as it deems appropriate. 15 When the board, after a hearing held after reasonable notice, 16 finds a public utility’s rates, charges, schedules, service, 17 or regulations are unjust, unreasonable, discriminatory, or 18 otherwise in violation of any provision of law, the board 19 shall determine just, reasonable, and nondiscriminatory rates, 20 charges, schedules, service, or regulations to be observed and 21 enforced. 22 2. If, as a result of a review procedure conducted under 23 section 476.31 , a review conducted under section 476.32 , a 24 special audit, or an investigation by division staff, or an 25 investigation by the consumer advocate the general counsel , 26 a petition is filed with the board by the consumer advocate, 27 alleging that a utility’s rates are excessive, the disputed 28 amount shall be specified in the petition. The public utility 29 shall, within the time prescribed by the board, file a bond 30 or undertaking approved by the board conditioned upon the 31 refund in a manner prescribed by the board of amounts collected 32 after the date of filing of the petition in excess of rates 33 or charges finally determined by the board to be lawful. If 34 upon hearing the board finds that the utility’s rates are 35 -9- LSB 1638YH (10) 84 rn/sc 9/ 22

H.F. 349 unlawful, the board shall order a refund, with interest, of 1 amounts collected after the date of filing of the petition that 2 are determined to be in excess of the amounts which would have 3 been collected under the rates finally approved. However, the 4 board shall not order a refund that is greater than the amount 5 specified in the petition, plus interest, and if the board 6 fails to render a decision within ten months following the date 7 of filing of the petition, the board shall not order a refund 8 of any excess amounts that are collected after the expiration 9 of that ten-month period and prior to the date the decision is 10 rendered. 11 Notwithstanding the provisions of this subsection , the 12 consumer advocate shall not file a petition shall not be filed 13 under this subsection that alleges a local exchange carrier’s 14 rates are excessive while the local exchange carrier is 15 participating in a price regulation plan approved by the board 16 pursuant to section 476.97 . 17 Sec. 28. Section 476.6, subsection 16, paragraphs b and e, 18 Code 2011, are amended to read as follows: 19 b. A gas and electric utility required to be rate-regulated 20 under this chapter shall assess potential energy and capacity 21 savings available from actual and projected customer usage 22 by applying commercially available technology and improved 23 operating practices to energy-using equipment and buildings. 24 The utility shall submit the assessment to the board. Upon 25 receipt of the assessment, the board shall consult with the 26 office of energy independence to develop specific capacity 27 and energy savings performance standards for each utility. 28 The utility shall submit an energy efficiency plan which 29 shall include economically achievable programs designed to 30 attain these energy and capacity performance standards. The 31 board shall periodically report the energy efficiency results 32 including energy savings of each utility to the general 33 assembly. 34 e. The board shall conduct contested case proceedings for 35 -10- LSB 1638YH (10) 84 rn/sc 10/ 22

H.F. 349 review of energy efficiency plans and budgets filed by gas 1 and electric utilities required to be rate-regulated under 2 this chapter . The board may approve, reject, or modify the 3 plans and budgets. Notwithstanding the provisions of section 4 17A.19, subsection 5 , in an application for judicial review of 5 the board’s decision concerning a utility’s energy efficiency 6 plan or budget, the reviewing court shall not order a stay. 7 Whenever a request to modify an approved plan or budget is 8 filed subsequently by the office of consumer advocate or a 9 gas or electric utility required to be rate-regulated under 10 this chapter , the board shall promptly initiate a formal 11 proceeding if the board determines that any reasonable ground 12 exists for investigating the request. The formal proceeding 13 may be initiated at any time by the board on its own motion. 14 Implementation of board-approved plans or budgets shall 15 be considered continuous in nature and shall be subject to 16 investigation at any time by the board or the office of the 17 consumer advocate . 18 Sec. 29. Section 476.6, subsection 21, paragraph a, 19 subparagraph (3), Code 2011, is amended to read as follows: 20 (3) The initial multiyear plan and budget and any subsequent 21 updates shall be considered in a contested case proceeding 22 pursuant to chapter 17A . The department of natural resources 23 and the consumer advocate shall participate as parties a party 24 to the proceeding. 25 Sec. 30. Section 476.10, subsections 1, 3, and 4, Code 2011, 26 are amended to read as follows: 27 1. a. In order to carry out the duties imposed upon 28 it by law, the board may, at its discretion, allocate and 29 charge directly the expenses attributable to its duties 30 to the person bringing a proceeding before the board or to 31 persons participating in matters before the board. The board 32 shall ascertain the certified expenses incurred and directly 33 chargeable by the consumer advocate division of the department 34 of justice in the performance of its duties. The board and the 35 -11- LSB 1638YH (10) 84 rn/sc 11/ 22

H.F. 349 consumer advocate separately may decide not to charge expenses 1 to persons who, without expanding the scope of the proceeding 2 or matter, intervene in good faith in a board proceeding 3 initiated by a person subject to the board’s jurisdiction , 4 the consumer advocate, or the board on its own motion. For 5 assessments in any proceedings or matters before the board, the 6 board and the consumer advocate separately may consider the 7 financial resources of the person, the impact of assessment on 8 participation by intervenors, the nature of the proceeding or 9 matter, and the contribution of a person’s participation to the 10 public interest. The board may present a bill for expenses 11 under this subsection to the person, either at the conclusion 12 of a proceeding or matter, or from time to time during its 13 progress. Presentation of a bill for expenses under this 14 subsection constitutes notice of direct assessment and request 15 for payment in accordance with this section . 16 b. The board shall ascertain the total of the division’s 17 expenses incurred during each fiscal year in the performance 18 of its duties under law. The board shall add to the total of 19 the division’s expenses the certified expenses of the consumer 20 advocate as provided under section 475A.6 . The board shall 21 deduct all amounts charged directly to any person from the 22 total expenses of the board and the consumer advocate . The 23 board may assess the amount remaining after the deduction 24 to all persons providing service over which the board has 25 jurisdiction in proportion to the respective gross operating 26 revenues of such persons from intrastate operations during the 27 last calendar year over which the board has jurisdiction. For 28 purposes of determining gross operating revenues under this 29 section , the board shall not include gross receipts received 30 by a cooperative corporation or association for wholesale 31 transactions with members of the cooperative corporation 32 or association, provided that the members are subject to 33 assessment by the board based upon the members’ gross operating 34 revenues, or provided that such a member is an association 35 -12- LSB 1638YH (10) 84 rn/sc 12/ 22

H.F. 349 whose members are subject to assessment by the board based upon 1 the members’ gross operating revenues. If any portion of the 2 remainder can be identified with a specific type of utility 3 service, the board shall assess those expenses only to the 4 entities providing that type of service over which the board 5 has jurisdiction. The board may make the remainder assessments 6 under this paragraph on a quarterly basis, based upon estimates 7 of the expenditures for the fiscal year for the utilities 8 division and the consumer advocate . Not more than ninety days 9 following the close of the fiscal year, the utilities division 10 shall conform the amount of the prior fiscal year’s assessments 11 to the requirements of this paragraph. For gas and electric 12 public utilities exempted from rate regulation pursuant to 13 this chapter , the remainder assessments under this paragraph 14 shall be computed at one-half the rate used in computing the 15 assessment for other persons. 16 3. Whenever the board shall deem it necessary in order 17 to carry out the duties imposed upon it in connection with 18 rate regulation under section 476.6 , investigations under 19 section 476.3 , or review proceedings under section 476.31 , 20 the board may employ additional temporary or permanent staff, 21 or may contract with persons who are not state employees for 22 engineering, accounting, or other professional services, or 23 both. The costs of these additional employees and contract 24 services shall be paid by the public utility whose rates 25 are being reviewed in the same manner as other expenses are 26 paid under this section . Beginning on July 1, 1991, there 27 is appropriated out of any funds in the state treasury not 28 otherwise appropriated, such sums as may be necessary to enable 29 the board to hire additional staff and contract for services 30 under this section . The board shall increase quarterly 31 assessments specified in subsection 1 , paragraph “b” , by 32 amounts necessary to enable the board to hire additional staff 33 and contract for services under this section . The authority to 34 hire additional temporary or permanent staff that is granted to 35 -13- LSB 1638YH (10) 84 rn/sc 13/ 22

H.F. 349 the board by this section shall not be subject to limitation 1 by any administrative or executive order or decision that 2 restricts the number of state employees or the filling of 3 employee vacancies, and shall not be subject to limitation 4 by any law of this state that restricts the number of state 5 employees or the filling of employee vacancies unless that 6 law is made applicable to this section by express reference 7 to this section . Before the board expends or encumbers an 8 amount in excess of the funds budgeted for rate regulation and 9 before the board increases quarterly assessments pursuant to 10 this subsection , the director of the department of management 11 shall approve the expenditure or encumbrance. Before approval 12 is given, the director of the department of management shall 13 determine that the expenses exceed the funds budgeted by the 14 general assembly to the board for rate regulation and that 15 the board does not have other funds from which the expenses 16 can be paid. Upon approval of the director of the department 17 of management the board may expend and encumber funds for 18 the excess expenses, and increase quarterly assessments to 19 raise the additional funds. The board and the office of 20 consumer advocate may add additional personnel or contract 21 for additional assistance to review and evaluate energy 22 efficiency plans and the implementation of energy efficiency 23 programs including , but not limited to , professionally trained 24 engineers, accountants, attorneys, skilled examiners and 25 inspectors, and secretaries and clerks. The board and the 26 office of consumer advocate may also contract for additional 27 assistance in the evaluation and implementation of issues 28 relating to telecommunication competition. The board and the 29 office of the consumer advocate may expend additional sums 30 beyond those sums appropriated. However, the authority to add 31 additional personnel or contract for additional assistance 32 must first be approved by the department of management. The 33 additional sums for energy efficiency shall be provided to the 34 board and the office of the consumer advocate by the utilities 35 -14- LSB 1638YH (10) 84 rn/sc 14/ 22

H.F. 349 subject to the energy efficiency requirements in this chapter . 1 Telephone companies shall pay any additional sums needed for 2 assistance with telecommunication competition issues. The 3 assessments shall be in addition to and separate from the 4 quarterly assessment. 5 4. a. Fees paid to the utilities division shall be 6 deposited in the department of commerce revolving fund created 7 in section 546.12 . These funds shall be used for the payment, 8 upon appropriation by the general assembly, of the expenses of 9 the utilities division and the consumer advocate division of 10 the department of justice . 11 b. The administrator and consumer advocate shall account 12 for receipts and disbursements according to the separate duties 13 imposed upon the utilities and consumer advocate divisions 14 division by the laws of this state and each separate duty shall 15 be fiscally self-sustaining. 16 c. All fees and other moneys collected under this section 17 and sections 478.4 , 479.16 , and 479A.9 shall be deposited into 18 the department of commerce revolving fund created in section 19 546.12 and expenses required to be paid under this section 20 shall be paid from funds appropriated for those purposes. 21 Sec. 31. Section 476.10B, subsections 1 and 2, Code 2011, 22 are amended to read as follows: 23 1. For the purposes of this section , “building project 24 expenses” means expenses that have been approved by the 25 utilities board for the building and related improvements 26 and furnishings developed under this section and that are 27 considered part of the regulatory expenses charged by the 28 utilities board and the consumer advocate division of the 29 department of justice for carrying out duties under section 30 476.10 . 31 2. The department of administrative services, in 32 consultation with the board and the consumer advocate 33 division of the department of justice , shall provide for the 34 construction of a building to house the board and the division. 35 -15- LSB 1638YH (10) 84 rn/sc 15/ 22

H.F. 349 A building developed under this subsection shall be a model 1 energy-efficient building that may be used as a public example 2 for similar efforts. The building shall comply with the life 3 cycle cost provisions developed pursuant to section 72.5 . The 4 building shall be located on the capitol complex grounds or 5 at another convenient location in the vicinity of the capitol 6 complex grounds. 7 Sec. 32. Section 476.53, subsection 4, Code 2011, is amended 8 to read as follows: 9 4. The utilities energy regulatory board and the consumer 10 advocate may employ additional temporary staff, or may contract 11 for professional services with persons who are not state 12 employees, as the board and the consumer advocate deem deems 13 necessary to perform required functions as provided in this 14 section , including but not limited to review of power purchase 15 contracts, review of emission plans and budgets, and review 16 of ratemaking principles proposed for construction or lease 17 of a new generating facility. Beginning July 1, 2002, there 18 is appropriated out of any funds in the state treasury not 19 otherwise appropriated, such sums as may be necessary to enable 20 the board and the consumer advocate to hire additional staff 21 and contract for services under this section . The costs of 22 the additional staff and services shall be assessed to the 23 utilities pursuant to the procedure in section 476.10 and 24 section 475A.6 . 25 Sec. 33. Section 476.97, subsection 3, paragraph e, Code 26 2011, is amended to read as follows: 27 e. Providing notice to customers , and the board , and the 28 consumer advocate of changes in prices, terms, or conditions 29 for basic and nonbasic communications services. 30 Sec. 34. Section 476.97, subsection 6, Code 2011, is amended 31 to read as follows: 32 6. Any person, including the consumer advocate, a body 33 politic, or the board on its own motion, may file a written 34 complaint pursuant to section 476.3, subsection 1 , regarding a 35 -16- LSB 1638YH (10) 84 rn/sc 16/ 22

H.F. 349 local exchange carrier’s implementation, operation under, or 1 satisfaction of the purposes of its price regulation plan. 2 Sec. 35. Section 476.97, subsection 7, Code 2011, is amended 3 by striking the subsection. 4 Sec. 36. Section 476.97, subsection 9, Code 2011, is amended 5 to read as follows: 6 9. The board shall determine the duration of any plan. The 7 board shall review a local exchange carrier’s operation under 8 its plan, with notice and an opportunity for hearing, within 9 four years of the initiation of the plan and prior to the 10 termination of the plan. The local exchange carrier , consumer 11 advocate, or any person may propose, and the board may approve, 12 any reasonable modifications to a local exchange carrier’s 13 plan as a result of the review, except that such modifications 14 shall not require a reduction in the rates for any basic 15 communications service. 16 Sec. 37. Section 476.97, subsection 11, paragraph h, 17 unnumbered paragraph 1, Code 2011, is amended to read as 18 follows: 19 The board may review a local exchange carrier’s operation 20 under this subsection , with notice and an opportunity for 21 hearing, after four years of the carrier’s election to be 22 price-regulated. The local exchange carrier , consumer 23 advocate, or any person may propose, and the board may 24 approve, any reasonable modifications to the price regulation 25 requirements in this subsection as a result of the specific 26 carrier review, with the following limitations: 27 Sec. 38. Section 476.97, subsection 11, paragraph k, Code 28 2011, is amended to read as follows: 29 k. The board and the consumer advocate may employ additional 30 temporary staff, or may contract for professional services with 31 persons who are not state employees, as the board and consumer 32 advocate deem deems necessary to review a local exchange 33 carrier’s operations, proposal for modifications, rate change 34 proposal, or proposed changes in aggregate revenue weighted 35 -17- LSB 1638YH (10) 84 rn/sc 17/ 22

H.F. 349 prices pursuant to this subsection . Beginning July 1, 2002, 1 there is appropriated out of any funds in the state treasury 2 not otherwise appropriated, such sums as may be necessary to 3 enable the board to hire additional staff and contract for 4 services under this subsection . The costs of the additional 5 staff and services shall be assessed to the local exchange 6 carrier pursuant to the procedures in sections 475A.6 and 7 476.10 . 8 Sec. 39. Section 476.103, subsection 3, paragraph g, Code 9 2011, is amended to read as follows: 10 g. Procedures for a customer , or service provider , or 11 the consumer advocate to submit to the board complaints of 12 unauthorized changes in service. 13 Sec. 40. Section 477C.5, subsection 2, Code 2011, is amended 14 to read as follows: 15 2. The council shall consist of: 16 a. Six Seven consumers who have communication impairments. 17 b. Two representatives from telephone companies. 18 c. One representative from the office of deaf services of 19 the department of human rights. 20 d. One representative from the office of the consumer 21 advocate of the department of justice. 22 e. d. One member of the board or a designee of the board. 23 Sec. 41. Section 546.12, Code 2011, is amended to read as 24 follows: 25 546.12 Department of commerce revolving fund. 26 1. A department of commerce revolving fund is created in 27 the state treasury. The fund shall consist of moneys collected 28 by the banking division; credit union division; utilities 29 division , including moneys collected on behalf of the office 30 of consumer advocate established in section 475A.3 ; and the 31 insurance division of the department; and deposited into an 32 account for that division or office within the fund on a 33 monthly basis. Except as otherwise provided by statute, all 34 costs for operating the office of consumer advocate and the 35 -18- LSB 1638YH (10) 84 rn/sc 18/ 22