HOUSE FILE 436

BY  ISENHART

A BILL FOR

An Act relating to the utilization of energy by modifying and expanding the energy city designation program.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:

   Section 1.  Section 266.39C, Code 2011, is amended by adding the following new subsection:
   NEW SUBSECTION.  7.  The Iowa energy center shall administer the designation program for energy cities, energy counties, and energy regions established in section 473.41.
   Sec. 2.  Section 469.3, subsection 2, paragraph w, Code 2011, is amended by striking the paragraph.
   Sec. 3.  Section 473.41, Code 2011, is amended to read as follows:
   473.41Energy city designation program Designation program —— energy cities, counties, and regions.
   1.  The office department of economic development, with the assistance of the Iowa initiative for sustainable communities administered through the school of urban and regional planning at the university of Iowa, shall establish and administeran energy city a designation program for energy cities, energy counties, and energy regions, with the objective of encouraging cities, counties, and collaborations of cities and counties to develop and implement innovative energy efficiency programs. To qualify for designation as an energy city, energy county, or energy region, a city, county, or collaboration of cities and counties shall submit an application on forms prescribed by the office by rule, indicating department providing the following:
   a.  Submission of A community-based energy improvement plan, which incorporates the smart planning principles and guidelines pursuant to sections 18B.1 and 18B.2, plans for energy reduction improvement projects, energy-efficient building construction and rehabilitation, and alternative or renewable energy production.
   b.  Efforts A plan to securelocal funding for community-based energy improvement plans, and documentation of any state or federal grant or loan funding being pursued in connection therewith.
   c.  Involvement Documentation of involvement by local schools, civic organizations, chambers of commerce business organizations, and private other groups in a community-based the energy improvement plan.
   d.  Existing A summary of existing or proposed ordinances encouraging or supporting energy efficiency improvement initiatives and conservation, recycling efforts, and energy-efficient building code provisions and enforcement buildings.
   e.  Organization The organization of an energy day observance and proclamation with a commemorating event and awards ceremony for leading energy-efficient community businesses, groups, schools, or individuals.
   2.  The office shall establish by rule criteria for awarding energy city designations. If more than one designation is awarded annually, the criteria shall include a requirement that the office award the designations to cities of varying populations. Rules shall also be established identifying department shall identify and publicizing publicize private, state, and federal grant and loan programs relating to energy efficiency, and the development of a procedure whereby the office shall coordinate with other state agencies preferences given in the awarding of grants or making of loans to energy city designated applicants improvement, energy demand reduction, energy-efficient building construction and rehabilitation, and alternative or renewable energy production.
   3.  The department shall coordinate with energy cities, counties, and regions to facilitate the state’s participation in the federal better buildings initiative, including but not limited to promoting and facilitating public and private participation in new tax incentives for building efficiency; financing opportunities for commercial retrofits; federal loan guarantees for energy efficiency upgrades at hospitals, schools, and other commercial buildings; applying for grants to foster the streamlining and updating of state and local government regulations to attract private sector investment in energy improvement projects; and participating in the better buildings challenge included in the initiative.
   4.  The department shall conduct an annual statewide event recognizing and showcasing selected energy cities, energy counties, and energy regions which meet or exceed energy improvement criteria established by the department, and businesses, groups, schools, or individuals nominated for recognition by such cities, counties, or regions.
   5.  For purposes of developing or implementing an energy improvement plan or a plan to secure financing, one or more cities and counties may enter into a chapter 28E agreement through a council of governments to collaborate in the creation of an energy region for purposes of this section and section 473.42, 473.43, and 473.44.
   Sec. 4.  NEW SECTION.  473.42  Designation program —— ordinance.
   1.  A city council or county board of supervisors may adopt an ordinance or ordinances providing energy improvement plan financing as a component of an energy improvement plan submitted by a city, county, or council of governments. Prior to adoption of an ordinance, the city council or county board of supervisors shall do all of the following:
   a.  Submit the question of adoption of the ordinance to an energy improvement ordinance evaluation committee, which shall include but not be limited to two members who are residents of or operating within the city, county, or energy region representing each of the following categories:
   (1)  Homeowner energy users.
   (2)  Business energy users.
   (3)  Energy utilities.
   (4)  Architectural firms.
   (5)  Firms involved in the construction or installation of energy improvements.
   (6)  Financial institutions.
   The committee shall be subject to the requirements of sections 69.16 and 69.16A.
   b.  Conduct a public hearing at which interested persons may inquire about or object to the proposed ordinance. Notice of the hearing shall be published as provided in section 331.305 or 362.3, as applicable.
   2.  The department shall be provided with a copy of any ordinance adopted pursuant to this section.
   Sec. 5.  NEW SECTION.  473.43  Designation program —— financing.
   1.
  a.  An energy improvement plan financing ordinance adopted by a city council or county board of supervisors pursuant to section 473.42 may authorize the issuance of bonds by the city or county to assist in the financing of energy improvement projects. Energy improvement projects for publicly owned buildings shall be considered an essential corporate purpose for which a city or county may issue bonds. The ordinance may also provide for the repayment of bonds or other financing through special assessments, provided that any lien involved maintains a junior position with respect to any mortgage or other lien on the property. If not repaid according to another contract or agreement, any unpaid assessments shall remain with the property following the sale of the property.
   b.  If the ordinance provides for the repayment of bonds or other financing through special assessments, the department shall establish procedures and requirements regarding the adoption of a resolution of intent, application forms, packaging assessments, petitions by property owners, submission of resolutions for filing, and adoption of a final assessment schedule.
   c.  The ordinance may additionally provide for the repayment of financed improvements through billings for energy use under one or more agreements with a city, investor-owned utility, municipal utility, rural electric cooperative, or other energy supplier. Such arrangements shall qualify for incorporation into applicable energy efficiency plan and goal requirements established in section 476.6, subsections 14 and 16. The utilities board of the utilities division of the department of commerce shall by rule adopt procedures for the implementation of this paragraph.
   2.  A city, county, or council of governments may enter into one or more cooperative agreements with financial institutions and other stakeholders for the purpose of financing energy improvement projects and providing for the repayment of such financing.
   Sec. 6.  NEW SECTION.  473.44  Designation program —— annual report.
   Energy cities, counties, and regions shall provide information to the department on an annual basis regarding the results of the program. The department shall make available on its internet site the information so received.
EXPLANATION
   This bill relates to energy efficiency programs undertaken at the city, county, and regional level.
   The bill modifies and expands the energy city designation program contained in Code section 473.41. The program is transferred for administrative purposes from the office of energy independence to the Iowa department of economic development, with the assistance of the Iowa initiative for sustainable communities administered through the school of urban and regional planning at the university of Iowa, and expanded to include counties and collaborations of cities and counties at the regional level regarding developing and implementing energy efficiency programs.
   The bill expands application requirements for designation pursuant to the program. Modified requirements include submitting an energy improvement plan incorporating smart planning principles and guidelines established in Code sections 18B.1 and 18B.2, and plans for energy improvement projects, energy-efficient building construction and rehabilitation, and alternative or renewable energy production. Requirements shall also include submitting a plan for securing funding for energy improvement plans, documentation of local business, civic, and school involvement, and a summary of existing or proposed ordinances encouraging or supporting energy improvement initiatives and activities.
   The bill directs the department to identify and publicize private, state, and federal grant and loan programs relating to energy improvement, energy demand reduction, energy-efficient building construction and rehabilitation, and alternative or renewable energy production. The bill also directs the department to coordinate with energy cities, counties, and regions to facilitate the state’s participation in the federal better buildings initiative, and to conduct an annual statewide event recognizing and showcasing selected energy cities, energy counties, and energy regions which meet or exceed energy improvement criteria established by the center, and businesses, groups, schools, or individuals nominated for recognition by such cities, counties, or regions.
   The bill states that for purposes of developing or implementing an energy improvement plan or a plan to secure financing, one or more cities and counties may enter into a Code chapter 28E agreement through a council of governments to collaborate in the creation of an energy region.
   The bill authorizes a city council or county board of supervisors to adopt an energy improvement plan financing ordinance or ordinances as a component of an energy improvement plan. Prior to adoption of an ordinance, the bill directs the city council or county board of supervisors to submit the question of adoption of the ordinance to an energy improvement ordinance evaluation committee, to be comprised as provided in the bill, and to conduct a public hearing at which interested persons may inquire about or object to the proposed ordinance.
   The bill provides that an energy improvement plan financing ordinance may authorize the issuance of bonds by the city or county to assist in the financing of energy improvement projects, and for the repayment of bonds or other financing through special assessments, provided that any lien involved maintains a junior position with respect to any mortgage or other lien on the property. The bill states that if not repaid according to another contract or agreement, any unpaid assessments shall remain with the property following sale of the property. The bill states that energy improvement projects for publicly owned buildings shall be considered an essential corporate purpose for which a city or county may issue bonds. The bill states that if an ordinance provides for the repayment of bonds or other financing through special assessments, the department shall establish procedures and requirements regarding the adoption of a resolution of intent, application forms, packaging assessments, petitions by property owners, submission of resolutions for filing, and adoption of a final assessment schedule.
   The bill provides that an ordinance may additionally provide for the repayment of financed improvements through billings for energy use under one or more agreements with a city, investor-owned utility, municipal utility, rural electric cooperative, or other energy supplier. The bill states that these arrangements shall qualify for incorporation into applicable energy efficiency plan and goal requirements established in Code section 476.6, subsections 14 and 16.
   The bill additionally provides that a city, county, or council of governments may enter into one or more cooperative agreements with financial institutions and other stakeholders for the purpose of financing energy improvement projects and providing for the repayment of such financing.
   The bill requires energy cities, counties, and regions to submit information to the department on an annual basis regarding the results of the program, which shall be available on the department’s internet site.