HOUSE FILE 349

BY  WATTS

A BILL FOR

An Act relating to energy management and regulation by repealing provisions establishing the office of energy independence and the Iowa power fund, repealing provisions establishing the office of consumer advocate, creating the Iowa energy regulatory board and transferring current responsibilities of the Iowa utilities board to the Iowa energy regulatory board, and including transition provisions.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:

   Section 1.  Section 8A.412, subsection 11, Code 2011, is amended to read as follows:
   11.  Professional employees under the supervision of the attorney general, the state public defender, the secretary of state, the auditor of state, the treasurer of state, and the public employment relations board. However, employees of the consumer advocate division of the department of justice, other than the consumer advocate, are subject to the merit system.
   Sec. 2.  Section 11.5B, subsection 15, Code 2011, is amended by striking the subsection.
   Sec. 3.  Section 12.91, subsection 1, paragraph b, Code 2011, is amended to read as follows:
   b.  “Chargeable expenses” means expenses charged by the utilities energy regulatory boardand the consumer advocate division of the department of justice under section 476.10.
   Sec. 4.  Section 15H.6, subsection 1, Code 2011, is amended to read as follows:
   1.  The Iowa commission on volunteer service, in collaboration with the department of natural resources, the department of workforce development,the office of energy independence, and the utilities energy regulatory board of the department of commerce, shall establish an Iowa green corps program. The commission shall work with the collaborating agencies and nonprofit agencies in developing a strategy for attracting additional financial resources for the program from other sources which may include but are not limited to utilities, private sector, and local, state, and federal government funding sources. The financial resources received shall be credited to the community programs account created pursuant to section 15H.5.
   Sec. 5.  Section 17A.2, subsection 1, Code 2011, is amended to read as follows:
   1.  “Agency” means each board, commission, department, officer or other administrative office or unit of the state. “Agency” does not mean the general assembly, the judicial branch or any of its components, the office of consumer advocate, the governor, or a political subdivision of the state or its offices and units. Unless provided otherwise by statute, no less than two-thirds of the members eligible to vote of a multimember agency constitute a quorum authorized to act in the name of the agency.
   Sec. 6.  Section 20.4, subsection 9, Code 2011, is amended to read as follows:
   9.  Persons employed by the state department of justice, except nonsupervisory employees of the consumer advocate division who are employed primarily for the purpose of performing technical analysis of nonlegal issues.
   Sec. 7.  Section 22.7, subsection 60, Code 2011, is amended by striking the subsection.
   Sec. 8.  Section 68B.35, subsection 2, paragraph e, Code 2011, is amended to read as follows:
   e.  Members of the state banking council, the ethics and campaign disclosure board, the credit union review board, the economic development board, the employment appeal board, the environmental protection commission, the health facilities council, the Iowa finance authority, the Iowa public employees’ retirement system investment board, the board of the Iowa lottery authority, the natural resource commission, the board of parole, the petroleum underground storage tank fund board, the public employment relations board, the state racing and gaming commission, the state board of regents, the tax review board, the transportation commission, the office of consumer advocate, the utilities board, the energy regulatory board, the Iowa telecommunications and technology commission, and any full-time members of other boards and commissions as defined under section 7E.4 who receive an annual salary for their service on the board or commission. The Iowa ethics and campaign disclosure board shall conduct an annual review to determine if members of any other board, commission, or authority should file a statement and shall require the filing of a statement pursuant to rules adopted pursuant to chapter 17A.
   Sec. 9.  Section 72.5, subsection 2, Code 2011, is amended to read as follows:
   2.  The director of the office of energy independence chairperson of the energy regulatory board, in consultation with the department of management, state building code commissioner, and state fire marshal, shall develop standards and methods to evaluate design development documents and construction documents based upon life cycle cost factors to facilitate fair and uniform comparisons between design proposals and informed decision making by public bodies.
   Sec. 10.  Section 103A.27, subsection 1, paragraph b, Code 2011, is amended to read as follows:
   b.  The director of the office of energy independence chairperson of the energy regulatory board, or the director’s chairperson’s designee.
   Sec. 11.  Section 266.39C, subsection 2, paragraph a, subparagraph (6), Code 2011, is amended to read as follows:
   (6)  One representative of the office of energy independence energy regulatory board, appointed by the director chairperson.
   Sec. 12.  Section 266.39C, subsection 2, paragraph a, subparagraphs (8) and (9), Code 2011, are amended by striking the subparagraphs.
   Sec. 13.  Section 266.39C, subsection 2, paragraph a, subparagraph (12), Code 2011, is amended to read as follows:
   (12)  Two Three representatives from investor-owned utilities, one representing gas utilities, appointed by the Iowa utility association, and one two representing electric utilities, appointed by the Iowa utility association.
   Sec. 14.  Section 268.6, subsection 2, Code 2011, is amended to read as follows:
   2.  The university is encouraged to cooperate with agricultural and energy efficiency advocates and governmental entities in administering the program, including the office of energy independence established pursuant to section 469.2 energy regulatory board.
   Sec. 15.  Section 323A.2, subsection 1, paragraph c, Code 2011, is amended to read as follows:
   c.  The director chairperson of the office of energy independence energy regulatory board determines that the franchisee has demonstrated that a special hardship exists in the community served by the franchisee relating to the public health, safety, and welfare, as specified under the rules of the office.
   Sec. 16.  Section 470.1, Code 2011, is amended by adding the following new subsections:
   NEW SUBSECTION.  01.  “Board” means the energy regulatory board.
   NEW SUBSECTION.  001.  “Chairperson” means the chairperson of the energy regulatory board.
   Sec. 17.  Section 470.1, subsections 2 and 8, Code 2011, are amended by striking the subsections.
   Sec. 18.  Section 470.8, unnumbered paragraph 2, Code 2011, is amended to read as follows:
   The commissioner, in consultation with the director chairperson, shall, by rule, develop criteria to exempt facilities from the implementation requirements of this section. Using the criteria, the commissioner, in cooperation with the director chairperson, shall exempt facilities on a case by case case-by-case basis. Factors to be considered when developing the exemption criteria shall include, but not be limited to, a description of the purpose of the facility or renovation, the preservation of historical architectural features, site considerations, and health and safety concerns. The commissioner and the director chairperson shall grant or deny a request for exemption from the requirements of this section within thirty days of receipt of the request.
   Sec. 19.  Section 473.1, Code 2011, is amended by adding the following new subsections:
   NEW SUBSECTION.  02.  “Board” means the energy regulatory board.
   NEW SUBSECTION.  002.  “Chairperson” means the chairperson of the energy regulatory board.
   Sec. 20.  Section 473.1, subsections 3 and 5, Code 2011, are amended by striking the subsections.
   Sec. 21.  Section 473.8, subsection 2, paragraph a, subparagraph (4), Code 2011, is amended to read as follows:
   (4)  Delegate any administrative authority vested in the governor to the office board or the director chairperson.
   Sec. 22.  Section 473.10, Code 2011, is amended to read as follows:
   473.10  Reserve required.
   1.  If the office board or the governor finds that an impending or actual shortage or distribution imbalance of liquid fossil fuels may cause hardship or pose a threat to the health and economic well-being of the people of the state or a significant segment of the state’s population, the office board or the governor may authorize the director chairperson to operate a liquid fossil fuel set-aside program as provided in subsection 2.
   2.  Upon authorization by the office board or the governor the director chairperson may require a prime supplier to reserve a specified fraction of the prime supplier’s projected total monthly release of liquid fossil fuel in Iowa. The director chairperson may release any or all of the fuel required to be reserved by a prime supplier to end-users or to distributors for release through normal retail distribution channels to retail customers. However, the specified fraction required to be reserved shall not exceed three percent for propane, aviation fuel and residual oil, and five percent for motor gasoline, heating oil, and diesel oil.
   3.  The office board shall periodically review and may terminate the operation of a set-aside program authorized by the office board under subsection 1 when the office board finds that the conditions that prompted the authorization no longer exist. The governor shall periodically review and may terminate the operation of a set-aside program authorized by the governor under subsection 1 when the governor finds that the conditions that prompted the authorization no longer exist.
   4.  The director chairperson shall adopt rules to implement this section.
   Sec. 23.  Section 474.9, Code 2011, is amended to read as follows:
   474.9  General jurisdiction of utilities energy regulatory board.
   The utilities energy regulatory board has general supervision of all pipelines and all lines for the transmission, sale, and distribution of electrical current for light, heat, and power pursuant to chapters 476, 476A, 478, 479, 479A, and 479B, has general responsibility for representing consumer interests in electric, gas, and telephone regulatory issues at the state and federal level, and has other duties as provided by law.
   Sec. 24.  Section 474.10, Code 2011, is amended to read as follows:
   474.10  General counsel.
   1.  The board shall employ a competent attorney to serve as its general counsel, and assistants to the general counsel as it finds necessary for the full and efficient discharge of its duties. The general counsel is the attorney for, and legal advisor of, the board and is exempt from the merit system provisions of chapter 8A, subchapter IV. Assistants to the general counsel are subject to the merit system provisions of chapter 8A, subchapter IV. The general counsel or an assistant to the general counsel shall provide the Duties of the general counsel, and assistants to the general counsel, shall include the following:
    a.  Providing necessary legal advice to the board in all matters and represent representing the board in all actions instituted in a state or federal court challenging the validity of a rule or order of the board.
   b.  Investigating the legality of all rates, charges, rules, regulations, and practices of all persons under the jurisdiction of the energy regulatory board, and instituting civil proceedings before the board or any court to correct any illegality on the part of any such person. In any such investigation, the general counsel shall have the power to ask the board to issue subpoenas, compel the attendance and testimony of witnesses, and the production of papers, books, and documents, at the discretion of the board.
    2.  The existence of a fact which disqualifies a person from election or from acting as a utilities an energy regulatory board member disqualifies the person from employment as general counsel or assistant general counsel. The general counsel shall devote full time to the duties of the office. During employment the counsel shall not be a member of a political committee, contribute to a political campaign fund other than through the income tax checkoff for contributions to the Iowa election campaign fund and the presidential election campaign fund, participate in a political campaign, or be a candidate for a political office.
   Sec. 25.  Section 476.1B, subsection 1, paragraph a, Code 2011, is amended by striking the paragraph.
   Sec. 26.  Section 476.1C, subsection 2, Code 2011, is amended to read as follows:
   2.  If, as a result of a review of a proposed new or changed rate, charge, schedule, or regulation of a gas public utility having fewer than two thousand customers, the consumer advocate general counsel alleges in a filing with the board that the utility rates are excessive, the disputed amounts shall be specified by the consumer advocate general counsel in the filing. The gas public utility shall, within the time prescribed by the board, file a bond or undertaking approved by the board conditioned upon the refund in a manner prescribed by the board of amounts collected after the date of the filing which are in excess of rates or charges finally determined by the board to be lawful. If after formal proceeding and hearing pursuant to section 476.6 the board finds that the utility rates are unlawful, the board shall order a refund, with interest, of amounts collected after the date of filing of the petition that are determined to be in excess of the amounts which would have been collected under the rates finally approved. However, the board shall not order a refund that is greater than the amount specified in the petition, plus interest. If the board fails to render a decision within ten months following the date of filing of the petition, the board shall not order a refund of any excess amounts that are collected after the expiration of that ten-month period and prior to the date the decision is rendered.
   Sec. 27.  Section 476.3, subsections 1 and 2, Code 2011, are amended to read as follows:
   1.  A public utility shall furnish reasonably adequate service at rates and charges in accordance with tariffs filed with the board. When there is filed with the board by any person or body politic, or filed by the board upon its own motion, a written complaint requesting the board to determine the reasonableness of the rates, charges, schedules, service, regulations, or anything done or omitted to be done by a public utility subject to this chapter in contravention of this chapter, the written complaint shall be forwarded by the board to the public utility, which shall be called upon to satisfy the complaint or to answer it in writing within a reasonable time to be specified by the board.Copies of the written complaint forwarded by the board to the public utility and copies of all correspondence from the public utility in response to the complaint shall be provided by the board in an expeditious manner to the consumer advocate. If the board determines the public utility’s response is inadequate and there appears to be any reasonable ground for investigating the complaint, the board shall promptly initiate a formal proceeding.If the consumer advocate determines the public utility’s response to the complaint is inadequate, the consumer advocate may file a petition with the board which shall promptly initiate a formal proceeding if the board determines that there is any reasonable ground for investigating the complaint. The complainant or the public utility also may petition the board to initiate a formal proceeding which petition shall be granted if the board determines that there is any reasonable ground for investigating the complaint. The formal proceeding may be initiated at any time by the board on its own motion. If a proceeding is initiated upon petition filed by theconsumer advocate, complainant, or the public utility, or upon the board’s own motion, the board shall set the case for hearing and give notice as it deems appropriate. When the board, after a hearing held after reasonable notice, finds a public utility’s rates, charges, schedules, service, or regulations are unjust, unreasonable, discriminatory, or otherwise in violation of any provision of law, the board shall determine just, reasonable, and nondiscriminatory rates, charges, schedules, service, or regulations to be observed and enforced.
   2.  If, as a result of a review procedure conducted under section 476.31, a review conducted under section 476.32, a special audit, or an investigation by division staff, or an investigation by the consumer advocate the general counsel, a petition is filed with the board by the consumer advocate, alleging that a utility’s rates are excessive, the disputed amount shall be specified in the petition. The public utility shall, within the time prescribed by the board, file a bond or undertaking approved by the board conditioned upon the refund in a manner prescribed by the board of amounts collected after the date of filing of the petition in excess of rates or charges finally determined by the board to be lawful. If upon hearing the board finds that the utility’s rates are unlawful, the board shall order a refund, with interest, of amounts collected after the date of filing of the petition that are determined to be in excess of the amounts which would have been collected under the rates finally approved. However, the board shall not order a refund that is greater than the amount specified in the petition, plus interest, and if the board fails to render a decision within ten months following the date of filing of the petition, the board shall not order a refund of any excess amounts that are collected after the expiration of that ten-month period and prior to the date the decision is rendered.
   Notwithstanding the provisions of this subsection, the consumer advocate shall not file a petition shall not be filed under this subsection that alleges a local exchange carrier’s rates are excessive while the local exchange carrier is participating in a price regulation plan approved by the board pursuant to section 476.97.
   Sec. 28.  Section 476.6, subsection 16, paragraphs b and e, Code 2011, are amended to read as follows:
   b.  A gas and electric utility required to be rate-regulated under this chapter shall assess potential energy and capacity savings available from actual and projected customer usage by applying commercially available technology and improved operating practices to energy-using equipment and buildings. The utility shall submit the assessment to the board. Upon receipt of the assessment, the board shallconsult with the office of energy independence to develop specific capacity and energy savings performance standards for each utility. The utility shall submit an energy efficiency plan which shall include economically achievable programs designed to attain these energy and capacity performance standards. The board shall periodically report the energy efficiency results including energy savings of each utility to the general assembly.
   e.  The board shall conduct contested case proceedings for review of energy efficiency plans and budgets filed by gas and electric utilities required to be rate-regulated under this chapter. The board may approve, reject, or modify the plans and budgets. Notwithstanding the provisions of section 17A.19, subsection 5, in an application for judicial review of the board’s decision concerning a utility’s energy efficiency plan or budget, the reviewing court shall not order a stay. Whenever a request to modify an approved plan or budget is filed subsequently bythe office of consumer advocate or a gas or electric utility required to be rate-regulated under this chapter, the board shall promptly initiate a formal proceeding if the board determines that any reasonable ground exists for investigating the request. The formal proceeding may be initiated at any time by the board on its own motion. Implementation of board-approved plans or budgets shall be considered continuous in nature and shall be subject to investigation at any time by the board or the office of the consumer advocate.
   Sec. 29.  Section 476.6, subsection 21, paragraph a, subparagraph (3), Code 2011, is amended to read as follows:
   (3)  The initial multiyear plan and budget and any subsequent updates shall be considered in a contested case proceeding pursuant to chapter 17A. The department of natural resources and the consumer advocate shall participate as parties a party to the proceeding.
   Sec. 30.  Section 476.10, subsections 1, 3, and 4, Code 2011, are amended to read as follows:
   1.
  a.  In order to carry out the duties imposed upon it by law, the board may, at its discretion, allocate and charge directly the expenses attributable to its duties to the person bringing a proceeding before the board or to persons participating in matters before the board.The board shall ascertain the certified expenses incurred and directly chargeable by the consumer advocate division of the department of justice in the performance of its duties. The boardand the consumer advocate separately may decide not to charge expenses to persons who, without expanding the scope of the proceeding or matter, intervene in good faith in a board proceeding initiated by a person subject to the board’s jurisdiction, the consumer advocate, or the board on its own motion. For assessments in any proceedings or matters before the board, the boardand the consumer advocate separately may consider the financial resources of the person, the impact of assessment on participation by intervenors, the nature of the proceeding or matter, and the contribution of a person’s participation to the public interest. The board may present a bill for expenses under this subsection to the person, either at the conclusion of a proceeding or matter, or from time to time during its progress. Presentation of a bill for expenses under this subsection constitutes notice of direct assessment and request for payment in accordance with this section.
   b.  The board shall ascertain the total of the division’s expenses incurred during each fiscal year in the performance of its duties under law.The board shall add to the total of the division’s expenses the certified expenses of the consumer advocate as provided under section 475A.6. The board shall deduct all amounts charged directly to any person from the total expenses of the board and the consumer advocate. The board may assess the amount remaining after the deduction to all persons providing service over which the board has jurisdiction in proportion to the respective gross operating revenues of such persons from intrastate operations during the last calendar year over which the board has jurisdiction. For purposes of determining gross operating revenues under this section, the board shall not include gross receipts received by a cooperative corporation or association for wholesale transactions with members of the cooperative corporation or association, provided that the members are subject to assessment by the board based upon the members’ gross operating revenues, or provided that such a member is an association whose members are subject to assessment by the board based upon the members’ gross operating revenues. If any portion of the remainder can be identified with a specific type of utility service, the board shall assess those expenses only to the entities providing that type of service over which the board has jurisdiction. The board may make the remainder assessments under this paragraph on a quarterly basis, based upon estimates of the expenditures for the fiscal year for the utilities division and the consumer advocate. Not more than ninety days following the close of the fiscal year, the utilities division shall conform the amount of the prior fiscal year’s assessments to the requirements of this paragraph. For gas and electric public utilities exempted from rate regulation pursuant to this chapter, the remainder assessments under this paragraph shall be computed at one-half the rate used in computing the assessment for other persons.
   3.  Whenever the board shall deem it necessary in order to carry out the duties imposed upon it in connection with rate regulation under section 476.6, investigations under section 476.3, or review proceedings under section 476.31, the board may employ additional temporary or permanent staff, or may contract with persons who are not state employees for engineering, accounting, or other professional services, or both. The costs of these additional employees and contract services shall be paid by the public utility whose rates are being reviewed in the same manner as other expenses are paid under this section. Beginning on July 1, 1991, there is appropriated out of any funds in the state treasury not otherwise appropriated, such sums as may be necessary to enable the board to hire additional staff and contract for services under this section. The board shall increase quarterly assessments specified in subsection 1, paragraph “b”, by amounts necessary to enable the board to hire additional staff and contract for services under this section. The authority to hire additional temporary or permanent staff that is granted to the board by this section shall not be subject to limitation by any administrative or executive order or decision that restricts the number of state employees or the filling of employee vacancies, and shall not be subject to limitation by any law of this state that restricts the number of state employees or the filling of employee vacancies unless that law is made applicable to this section by express reference to this section. Before the board expends or encumbers an amount in excess of the funds budgeted for rate regulation and before the board increases quarterly assessments pursuant to this subsection, the director of the department of management shall approve the expenditure or encumbrance. Before approval is given, the director of the department of management shall determine that the expenses exceed the funds budgeted by the general assembly to the board for rate regulation and that the board does not have other funds from which the expenses can be paid. Upon approval of the director of the department of management the board may expend and encumber funds for the excess expenses, and increase quarterly assessments to raise the additional funds. The boardand the office of consumer advocate may add additional personnel or contract for additional assistance to review and evaluate energy efficiency plans and the implementation of energy efficiency programs including, but not limited to, professionally trained engineers, accountants, attorneys, skilled examiners and inspectors, and secretaries and clerks. The boardand the office of consumer advocate may also contract for additional assistance in the evaluation and implementation of issues relating to telecommunication competition. The boardand the office of the consumer advocate may expend additional sums beyond those sums appropriated. However, the authority to add additional personnel or contract for additional assistance must first be approved by the department of management. The additional sums for energy efficiency shall be provided to the boardand the office of the consumer advocate by the utilities subject to the energy efficiency requirements in this chapter. Telephone companies shall pay any additional sums needed for assistance with telecommunication competition issues. The assessments shall be in addition to and separate from the quarterly assessment.
   4.
  a.  Fees paid to the utilities division shall be deposited in the department of commerce revolving fund created in section 546.12. These funds shall be used for the payment, upon appropriation by the general assembly, of the expenses of the utilities division and the consumer advocate division of the department of justice.
   b.  The administratorand consumer advocate shall account for receipts and disbursements according to theseparate duties imposed upon the utilities and consumer advocate divisions division by the laws of this state and each separate duty shall be fiscally self-sustaining.
   c.  All fees and other moneys collected under this section and sections 478.4, 479.16, and 479A.9 shall be deposited into the department of commerce revolving fund created in section 546.12 and expenses required to be paid under this section shall be paid from funds appropriated for those purposes.
   Sec. 31.  Section 476.10B, subsections 1 and 2, Code 2011, are amended to read as follows:
   1.  For the purposes of this section,“building project expenses” means expenses that have been approved by the utilities board for the building and related improvements and furnishings developed under this section and that are considered part of the regulatory expenses charged by the utilities board and the consumer advocate division of the department of justice for carrying out duties under section 476.10.
   2.  The department of administrative services, in consultation with the board and the consumer advocate division of the department of justice, shall provide for the construction of a building to house the board and the division. A building developed under this subsection shall be a model energy-efficient building that may be used as a public example for similar efforts. The building shall comply with the life cycle cost provisions developed pursuant to section 72.5. The building shall be located on the capitol complex grounds or at another convenient location in the vicinity of the capitol complex grounds.
   Sec. 32.  Section 476.53, subsection 4, Code 2011, is amended to read as follows:
   4.  The utilities energy regulatory boardand the consumer advocate may employ additional temporary staff, or may contract for professional services with persons who are not state employees, as the board and the consumer advocate deem deems necessary to perform required functions as provided in this section, including but not limited to review of power purchase contracts, review of emission plans and budgets, and review of ratemaking principles proposed for construction or lease of a new generating facility. Beginning July 1, 2002, there is appropriated out of any funds in the state treasury not otherwise appropriated, such sums as may be necessary to enable the boardand the consumer advocate to hire additional staff and contract for services under this section. The costs of the additional staff and services shall be assessed to the utilities pursuant to the procedure in section 476.10 and section 475A.6.
   Sec. 33.  Section 476.97, subsection 3, paragraph e, Code 2011, is amended to read as follows:
   e.  Providing notice to customers, and the board, and the consumer advocate of changes in prices, terms, or conditions for basic and nonbasic communications services.
   Sec. 34.  Section 476.97, subsection 6, Code 2011, is amended to read as follows:
   6.  Any person,including the consumer advocate, a body politic, or the board on its own motion, may file a written complaint pursuant to section 476.3, subsection 1, regarding a local exchange carrier’s implementation, operation under, or satisfaction of the purposes of its price regulation plan.
   Sec. 35.  Section 476.97, subsection 7, Code 2011, is amended by striking the subsection.
   Sec. 36.  Section 476.97, subsection 9, Code 2011, is amended to read as follows:
   9.  The board shall determine the duration of any plan. The board shall review a local exchange carrier’s operation under its plan, with notice and an opportunity for hearing, within four years of the initiation of the plan and prior to the termination of the plan. The local exchange carrier, consumer advocate, or any person may propose, and the board may approve, any reasonable modifications to a local exchange carrier’s plan as a result of the review, except that such modifications shall not require a reduction in the rates for any basic communications service.
   Sec. 37.  Section 476.97, subsection 11, paragraph h, unnumbered paragraph 1, Code 2011, is amended to read as follows:
   The board may review a local exchange carrier’s operation under this subsection, with notice and an opportunity for hearing, after four years of the carrier’s election to be price-regulated. The local exchange carrier, consumer advocate, or any person may propose, and the board may approve, any reasonable modifications to the price regulation requirements in this subsection as a result of the specific carrier review, with the following limitations:
   Sec. 38.  Section 476.97, subsection 11, paragraph k, Code 2011, is amended to read as follows:
   k.  The boardand the consumer advocate may employ additional temporary staff, or may contract for professional services with persons who are not state employees, as the board and consumer advocate deem deems necessary to review a local exchange carrier’s operations, proposal for modifications, rate change proposal, or proposed changes in aggregate revenue weighted prices pursuant to this subsection. Beginning July 1, 2002, there is appropriated out of any funds in the state treasury not otherwise appropriated, such sums as may be necessary to enable the board to hire additional staff and contract for services under this subsection. The costs of the additional staff and services shall be assessed to the local exchange carrier pursuant to the procedures in sections 475A.6 and 476.10.
   Sec. 39.  Section 476.103, subsection 3, paragraph g, Code 2011, is amended to read as follows:
   g.  Procedures for a customer, or service provider, or the consumer advocate to submit to the board complaints of unauthorized changes in service.
   Sec. 40.  Section 477C.5, subsection 2, Code 2011, is amended to read as follows:
   2.  The council shall consist of:
   a.  Six Seven consumers who have communication impairments.
   b.  Two representatives from telephone companies.
   c.  One representative from the office of deaf services of the department of human rights.
   d.  One representative from the office of the consumer advocate of the department of justice.
   e.  d.  One member of the board or a designee of the board.
   Sec. 41.  Section 546.12, Code 2011, is amended to read as follows:
   546.12  Department of commerce revolving fund.
   1.  A department of commerce revolving fund is created in the state treasury. The fund shall consist of moneys collected by the banking division; credit union division; utilities division, including moneys collected on behalf of the office of consumer advocate established in section 475A.3; and the insurance division of the department; and deposited into an account for that division or office within the fund on a monthly basis. Except as otherwise provided by statute, all costs for operatingthe office of consumer advocate and the banking division, the credit union division, the utilities division, and the insurance division of the department shall be paid from the division’s accounts within the fund, subject to appropriation by the general assembly.
   2.  To meet cash flow needs forthe office of consumer advocate and the banking division, credit union division, utilities division, or the insurance division of the department, the administrative head of that division or office may temporarily use funds from the general fund of the state to pay expenses in excess of moneys available in the revolving fund for that division or office if those additional expenditures are fully reimbursable and the division or office reimburses the general fund of the state and ensures all moneys are repaid in full by the close of the fiscal year. Because any general fund moneys used shall be fully reimbursed, such temporary use of funds from the general fund of the state shall not constitute an appropriation for purposes of calculating the state general fund expenditure limitation pursuant to section 8.54.
   Sec. 42.  REPEAL.  Chapter 469, Code 2011, is repealed.
   Sec. 43.  REPEAL.  Chapter 475A, Code 2011, is repealed.
   Sec. 44.  CODE EDITOR DIRECTIVES.
   1.  The Code editor is directed to change the words “office of energy independence” to “energy regulatory board” to the extent not otherwise so changed in this Act in sections 7D.34, 7D.35, 8A.362, 103A.8, 103A.8B, 159A.3, 159A.6B, 272C.2, 279.44, 441.21, and 476.63.
   2.  The Code editor is directed to change the word “office” to “board” to the extent not otherwise so changed in this Act in sections 470.3, 470.7, 473.7, 473.13A, 473.15, 473.19, 473.19A, 473.20, 473.20A, and 473.41.
   3.  The Code editor is directed to change the words “Iowa utilities board” to “Iowa energy regulatory board” to the extent not otherwise so changed in this Act in sections 6A.21, 34A.8, and 476.27.
   4.  The Code editor is directed to change the words “utilities board” to “energy regulatory board” to the extent not otherwise so changed in this Act in sections 6B.45, 6B.54, 7A.10, 7E.6, 8A.512, 12.10, 12.91, 13.7, 28L.1, 34A.15, 68B.35, 266C.39C, 306A.3, 314.20, 318.9, 364.23, 384.84, 390.12, 422.93, 437A.3, 474.1, 474.2, 474.3, 474.4, 474.5, 474.6, 474.7, 474.8, 474.9, 474.10, 476.1, 476.1C, 476.10A, 476.10B, 476.48, 476.66, 476A.1, 476B.1, 477A.1, 477C.2, 478.1, 478.2, 478.3, 478.4, 478.5, 478.6, 478.7, 478.10, 478.11, 478.12, 478.13, 478.15, 478.18, 478.19, 478.20, 478.21, 478.24, 478.25, 478.26, 478.27, 478.28, 478.30, 478.31, 478.32, 478A.7, 479.1, 479.2, 479.5, 479A.1, 479A.2, 479B.1, 479B.2, 480.3, 657.1, 714D.2, 714D.6, and 714D.7.
   Sec. 45.  TRANSITION PROVISIONS —— CONTINUATION OF GRANTS.
   1.  Any moneys remaining in any account or fund under the control of the office of energy independence on the effective date of this Act relative to the provisions of this Act shall be transferred to a comparable fund or account under the control of the Iowa energy regulatory board for such purposes. Notwithstanding section 8.33, the moneys transferred in accordance with this subsection shall not revert to the account or fund from which appropriated or transferred.
   2.  Any license, permit, or contract issued or entered into by the office of energy independence relative to the provisions of this Act in effect on the effective date of this Act shall continue in full force and effect pending transfer of such licenses, permits, or contracts to the Iowa energy regulatory board.
   3.  Grants or loans awarded from the Iowa power fund pursuant to section 469.9 prior to the effective date of this Act shall continue as provided by the terms of the grants or loans and shall be administered by the Iowa energy regulatory board.
   4.  Federal funds utilized by the director of the office of energy independence prior to the effective date of this Act to employ personnel necessary to administer the provisions of this Act shall be applicable to the transfer of such personnel from the office of energy independence to the Iowa energy regulatory board.
   Sec. 46.  TRANSITION PROVISIONS —— RULEMAKING.  

Administrative rules previously adopted by the office of energy independence relative to the provisions of this Act in existence on the effective date of this Act shall continue in full force and effect until adopted, amended, or repealed by the Iowa energy regulatory board.
EXPLANATION
   This bill makes several changes regarding energy management and regulation in this state.
   The bill repeals Code chapter 469, which provides for the establishment and administration of the office of energy independence, the Iowa power fund, and related renewable energy and energy efficiency projects, effective July 1, 2011. The bill makes a number of conforming changes deleting references to the office of energy independence and the Iowa power fund, and changing administration of specified energy efficiency-related functions transferred to the office from the department of natural resources during the 2009 Legislative Session to a newly established Iowa energy regulatory board, which replaces the Iowa utilities board. The bill provides transition provisions regarding the transfer of moneys retained in any account or fund under the control of the office of energy independence on the bill’s effective date to the board, the continuation of any license, permit, or contract issued or entered into by the office relative to the bill’s provisions in effect on the bill’s effective date pending their transfer to the board, and the continuation of grants or loans awarded from the Iowa power fund prior to the bill’s effective date. Transition provisions are also included relating to the transfer of federal funds being utilized by the director of the office prior to the bill’s effective date to employ personnel necessary to administer the provisions of the bill to the board, and relating to rulemaking.
   The bill additionally repeals Code chapter 475A, which provides for the establishment of the office of consumer advocate, effective July 1, 2011. The bill makes a number of conforming changes deleting references to the office, and transfers specified responsibilities currently assigned to the consumer advocate relating to investigating the legality of rates, charges, rules, regulations, and practices of persons under the jurisdiction of the Iowa utilities board, and instituting legal proceedings in relation thereto, to the general counsel of the newly established Iowa energy regulatory board. This transfer is consistent with responsibilities previously held by the position of commerce counsel, under the administration of what is currently the utilities board, prior to the establishment of the office of consumer advocate. The bill also clarifies that the Iowa energy regulatory board shall be responsible for representing consumer interests in electric, gas, and telephone regulatory issues at the state and federal level in addition to current responsibilities charged to the utilities board in Code section 474.9.
   In addition to transferring energy administration and management functions of the office of energy independence, and the above-referenced consumer-related responsibilities of the office of consumer advocate, to the Iowa energy regulatory board, the bill changes all Code references from “Iowa utilities board” or “utilities board” to “Iowa energy regulatory board” or “energy regulatory board”.