S.F. _____ Section 1. Section 266.39C, Code 2011, is amended by adding 1 the following new subsection: 2 NEW SUBSECTION . 7. The Iowa energy center shall administer 3 the designation program for energy cities, energy counties, and 4 energy regions established in section 473.41. 5 Sec. 2. Section 469.3, subsection 2, paragraph w, Code 2011, 6 is amended by striking the paragraph. 7 Sec. 3. Section 473.41, Code 2011, is amended to read as 8 follows: 9 473.41 Energy city designation program Designation program —— 10 energy cities, counties, and regions . 11 1. The office department of economic development, with the 12 assistance of the Iowa initiative for sustainable communities 13 administered through the school of urban and regional planning 14 at the university of Iowa, shall establish and administer an 15 energy city a designation program for energy cities, energy 16 counties, and energy regions , with the objective of encouraging 17 cities , counties, and collaborations of cities and counties to 18 develop and implement innovative energy efficiency programs. 19 To qualify for designation as an energy city, energy county, or 20 energy region, a city , county, or collaboration of cities and 21 counties shall submit an application on forms prescribed by the 22 office by rule, indicating department providing the following: 23 a. Submission of A community-based energy improvement plan, 24 which incorporates the smart planning principles and guidelines 25 pursuant to sections 18B.1 and 18B.2, plans for energy 26 reduction improvement projects, energy-efficient building 27 construction and rehabilitation, and alternative or renewable 28 energy production. 29 b. Efforts A plan to secure local funding for 30 community-based energy improvement plans , and documentation of 31 any state or federal grant or loan funding being pursued in 32 connection therewith . 33 c. Involvement Documentation of involvement by local 34 schools, civic organizations, chambers of commerce business 35 -1- LSB 1277XC (2) 84 rn/sc 1/ 7

S.F. _____ organizations , and private other groups in a community-based 1 the energy improvement plan. 2 d. Existing A summary of existing or proposed ordinances 3 encouraging or supporting energy efficiency improvement 4 initiatives and conservation, recycling efforts, and 5 energy-efficient building code provisions and enforcement 6 buildings . 7 e. Organization The organization of an energy day observance 8 and proclamation with a commemorating event and awards ceremony 9 for leading energy-efficient community businesses, groups, 10 schools, or individuals. 11 2. The office shall establish by rule criteria for awarding 12 energy city designations. If more than one designation is 13 awarded annually, the criteria shall include a requirement 14 that the office award the designations to cities of varying 15 populations. Rules shall also be established identifying 16 department shall identify and publicizing publicize private, 17 state , and federal grant and loan programs relating to energy 18 efficiency, and the development of a procedure whereby 19 the office shall coordinate with other state agencies 20 preferences given in the awarding of grants or making of loans 21 to energy city designated applicants improvement, energy 22 demand reduction, energy-efficient building construction and 23 rehabilitation, and alternative or renewable energy production . 24 3. The department shall coordinate with energy cities, 25 counties, and regions to facilitate the state’s participation 26 in the federal better buildings initiative, including but 27 not limited to promoting and facilitating public and private 28 participation in new tax incentives for building efficiency; 29 financing opportunities for commercial retrofits; federal 30 loan guarantees for energy efficiency upgrades at hospitals, 31 schools, and other commercial buildings; applying for grants 32 to foster the streamlining and updating of state and local 33 government regulations to attract private sector investment in 34 energy improvement projects; and participating in the better 35 -2- LSB 1277XC (2) 84 rn/sc 2/ 7

S.F. _____ buildings challenge included in the initiative. 1 4. The department shall conduct an annual statewide event 2 recognizing and showcasing selected energy cities, energy 3 counties, and energy regions which meet or exceed energy 4 improvement criteria established by the department, and 5 businesses, groups, schools, or individuals nominated for 6 recognition by such cities, counties, or regions. 7 5. For purposes of developing or implementing an energy 8 improvement plan or a plan to secure financing, one or more 9 cities and counties may enter into a chapter 28E agreement 10 through a council of governments to collaborate in the creation 11 of an energy region for purposes of this section and section 12 473.42, 473.43, and 473.44. 13 Sec. 4. NEW SECTION . 473.42 Designation program —— 14 ordinance. 15 1. A city council or county board of supervisors may 16 adopt an ordinance or ordinances providing energy improvement 17 plan financing as a component of an energy improvement plan 18 submitted by a city, county, or council of governments. Prior 19 to adoption of an ordinance, the city council or county board 20 of supervisors shall do all of the following: 21 a. Submit the question of adoption of the ordinance to an 22 energy improvement ordinance evaluation committee, which shall 23 include but not be limited to two members who are residents 24 of or operating within the city, county, or energy region 25 representing each of the following categories: 26 (1) Homeowner energy users. 27 (2) Business energy users. 28 (3) Energy utilities. 29 (4) Architectural firms. 30 (5) Firms involved in the construction or installation of 31 energy improvements. 32 (6) Financial institutions. 33 The committee shall be subject to the requirements of 34 sections 69.16 and 69.16A. 35 -3- LSB 1277XC (2) 84 rn/sc 3/ 7

S.F. _____ b. Conduct a public hearing at which interested persons may 1 inquire about or object to the proposed ordinance. Notice of 2 the hearing shall be published as provided in section 331.305 3 or 362.3, as applicable. 4 2. The department shall be provided with a copy of any 5 ordinance adopted pursuant to this section. 6 Sec. 5. NEW SECTION . 473.43 Designation program —— 7 financing. 8 1. a. An energy improvement plan financing ordinance 9 adopted by a city council or county board of supervisors 10 pursuant to section 473.42 may authorize the issuance of 11 bonds by the city or county to assist in the financing of 12 energy improvement projects. Energy improvement projects for 13 publicly owned buildings shall be considered an essential 14 corporate purpose for which a city or county may issue bonds. 15 The ordinance may also provide for the repayment of bonds or 16 other financing through special assessments, provided that 17 any lien involved maintains a junior position with respect to 18 any mortgage or other lien on the property. If not repaid 19 according to another contract or agreement, any unpaid 20 assessments shall remain with the property following the sale 21 of the property. 22 b. If the ordinance provides for the repayment of bonds or 23 other financing through special assessments, the department 24 shall establish procedures and requirements regarding the 25 adoption of a resolution of intent, application forms, 26 packaging assessments, petitions by property owners, submission 27 of resolutions for filing, and adoption of a final assessment 28 schedule. 29 c. The ordinance may additionally provide for the repayment 30 of financed improvements through billings for energy use under 31 one or more agreements with a city, investor-owned utility, 32 municipal utility, rural electric cooperative, or other energy 33 supplier. Such arrangements shall qualify for incorporation 34 into applicable energy efficiency plan and goal requirements 35 -4- LSB 1277XC (2) 84 rn/sc 4/ 7

S.F. _____ established in section 476.6, subsections 14 and 16. The 1 utilities board of the utilities division of the department of 2 commerce shall by rule adopt procedures for the implementation 3 of this paragraph. 4 2. A city, county, or council of governments may enter into 5 one or more cooperative agreements with financial institutions 6 and other stakeholders for the purpose of financing energy 7 improvement projects and providing for the repayment of such 8 financing. 9 Sec. 6. NEW SECTION . 473.44 Designation program —— annual 10 report. 11 Energy cities, counties, and regions shall provide 12 information to the department on an annual basis regarding the 13 results of the program. The department shall make available on 14 its internet site the information so received. 15 EXPLANATION 16 This bill relates to energy efficiency programs undertaken 17 at the city, county, and regional level. 18 The bill modifies and expands the energy city designation 19 program contained in Code section 473.41. The program is 20 transferred for administrative purposes from the office 21 of energy independence to the Iowa department of economic 22 development, with the assistance of the Iowa initiative for 23 sustainable communities administered through the school of 24 urban and regional planning at the university of Iowa, and 25 expanded to include counties and collaborations of cities 26 and counties at the regional level regarding developing and 27 implementing energy efficiency programs. 28 The bill expands application requirements for designation 29 pursuant to the program. Modified requirements include 30 submitting an energy improvement plan incorporating smart 31 planning principles and guidelines established in Code sections 32 18B.1 and 18B.2, and plans for energy improvement projects, 33 energy-efficient building construction and rehabilitation, and 34 alternative or renewable energy production. Requirements shall 35 -5- LSB 1277XC (2) 84 rn/sc 5/ 7

S.F. _____ also include submitting a plan for securing funding for energy 1 improvement plans, documentation of local business, civic, 2 and school involvement, and a summary of existing or proposed 3 ordinances encouraging or supporting energy improvement 4 initiatives and activities. 5 The bill directs the department to identify and publicize 6 private, state, and federal grant and loan programs relating to 7 energy improvement, energy demand reduction, energy-efficient 8 building construction and rehabilitation, and alternative 9 or renewable energy production. The bill also directs the 10 department to coordinate with energy cities, counties, and 11 regions to facilitate the state’s participation in the federal 12 better buildings initiative, and to conduct an annual statewide 13 event recognizing and showcasing selected energy cities, energy 14 counties, and energy regions which meet or exceed energy 15 improvement criteria established by the center, and businesses, 16 groups, schools, or individuals nominated for recognition by 17 such cities, counties, or regions. 18 The bill states that for purposes of developing or 19 implementing an energy improvement plan or a plan to secure 20 financing, one or more cities and counties may enter into a 21 Code chapter 28E agreement through a council of governments to 22 collaborate in the creation of an energy region. 23 The bill authorizes a city council or county board of 24 supervisors to adopt an energy improvement plan financing 25 ordinance or ordinances as a component of an energy improvement 26 plan. Prior to adoption of an ordinance, the bill directs 27 the city council or county board of supervisors to submit the 28 question of adoption of the ordinance to an energy improvement 29 ordinance evaluation committee, to be comprised as provided in 30 the bill, and to conduct a public hearing at which interested 31 persons may inquire about or object to the proposed ordinance. 32 The bill provides that an energy improvement plan financing 33 ordinance may authorize the issuance of bonds by the city 34 or county to assist in the financing of energy improvement 35 -6- LSB 1277XC (2) 84 rn/sc 6/ 7

S.F. _____ projects, and for the repayment of bonds or other financing 1 through special assessments, provided that any lien involved 2 maintains a junior position with respect to any mortgage or 3 other lien on the property. The bill states that if not 4 repaid according to another contract or agreement, any unpaid 5 assessments shall remain with the property following sale of 6 the property. The bill states that energy improvement projects 7 for publicly owned buildings shall be considered an essential 8 corporate purpose for which a city or county may issue bonds. 9 The bill states that if an ordinance provides for the repayment 10 of bonds or other financing through special assessments, 11 the department shall establish procedures and requirements 12 regarding the adoption of a resolution of intent, application 13 forms, packaging assessments, petitions by property owners, 14 submission of resolutions for filing, and adoption of a final 15 assessment schedule. 16 The bill provides that an ordinance may additionally 17 provide for the repayment of financed improvements through 18 billings for energy use under one or more agreements with 19 a city, investor-owned utility, municipal utility, rural 20 electric cooperative, or other energy supplier. The bill 21 states that these arrangements shall qualify for incorporation 22 into applicable energy efficiency plan and goal requirements 23 established in Code section 476.6, subsections 14 and 16. 24 The bill additionally provides that a city, county, or 25 council of governments may enter into one or more cooperative 26 agreements with financial institutions and other stakeholders 27 for the purpose of financing energy improvement projects and 28 providing for the repayment of such financing. 29 The bill requires energy cities, counties, and regions 30 to submit information to the department on an annual basis 31 regarding the results of the program, which shall be available 32 on the department’s internet site. 33 -7- LSB 1277XC (2) 84 rn/sc 7/ 7