H.F. 70 Section 1. Section 473.19, subsections 1 and 2, Code 2013, 1 are amended to read as follows: 2 1. The building energy management program is established 3 by the authority. The building energy management program 4 consists of the following forms of assistance for the state, 5 state agencies, political subdivisions of the state, school 6 districts, area education agencies, community colleges, and 7 nonprofit organizations , and small businesses : 8 a. Promoting program availability. 9 b. Developing or identifying guidelines and model energy 10 techniques for the completion of energy analyses for state 11 agencies, political subdivisions of the state, school 12 districts, area education agencies, community colleges, and 13 nonprofit organizations , and small businesses . 14 c. Providing technical assistance for conducting or 15 evaluating energy analyses for state agencies, political 16 subdivisions of the state, school districts, area education 17 agencies, community colleges, and nonprofit organizations , and 18 small businesses . 19 d. Providing or facilitating loans, leases, and other 20 methods of alternative financing under the energy loan program 21 for the state, state agencies, political subdivisions of the 22 state, school districts, area education agencies, community 23 colleges, and nonprofit organizations , and small businesses to 24 implement energy management improvements or energy analyses. 25 e. Providing assistance for obtaining insurance on the 26 energy savings expected to be realized from the implementation 27 of energy management improvements. 28 f. Facilitating self-liquidating financing for the state, 29 state agencies, political subdivisions of the state, school 30 districts, area education agencies, community colleges, and 31 nonprofit organizations , and small businesses pursuant to 32 section 473.20A . 33 g. Assisting the treasurer of state with financing 34 agreements entered into by the treasurer of state on behalf 35 -1- LSB 1658HH (3) 85 rn/sc 1/ 4

H.F. 70 of state agencies to finance energy management improvements 1 pursuant to section 12.28 . 2 2. For the purpose of this section , section 473.13A, 3 473.19A, section 473.20 , and section 473.20A , “energy management 4 improvement” means construction, rehabilitation, acquisition, 5 or modification of an installation in a facility or vehicle 6 which is intended to reduce energy consumption, or energy 7 costs, or both, or allow the use of alternative and renewable 8 energy. “Energy management improvement” may include control 9 and measurement devices. “Nonprofit organization” means an 10 organization exempt from federal income taxation under section 11 501(c)(3) of the Internal Revenue Code. “Small business” means 12 the same as defined in section 15.102, subsection 10. 13 Sec. 2. Section 473.19A, subsection 2, paragraph b, 14 subparagraph (1), unnumbered paragraph 1, Code 2013, is amended 15 to read as follows: 16 Moneys received in the form of fees imposed upon the state, 17 state agencies, political subdivisions of the state, school 18 districts, area education agencies, community colleges, and 19 nonprofit organizations , and small businesses for services 20 performed or assistance rendered pursuant to the building 21 energy management program. Fees imposed pursuant to this 22 paragraph “b” shall be established by the authority in an amount 23 corresponding to the operational expenses or administrative 24 costs incurred by the authority in performing services or 25 providing assistance authorized pursuant to the building energy 26 management program, as follows: 27 Sec. 3. Section 473.20, subsection 2, Code 2013, is amended 28 to read as follows: 29 2. The authority may facilitate the loan process for 30 political subdivisions of the state, school districts, 31 area education agencies, community colleges, and nonprofit 32 organizations , and small businesses for implementation 33 of energy management improvements identified in an energy 34 analysis. Loans shall be facilitated for all cost-effective 35 -2- LSB 1658HH (3) 85 rn/sc 2/ 4

H.F. 70 energy management improvements. For political subdivisions of 1 the state, school districts, area education agencies, community 2 colleges, and nonprofit organizations , and small businesses to 3 receive loan assistance under the program, the authority shall 4 require completion of an energy management plan including an 5 energy analysis. The authority shall approve loans facilitated 6 under this section . 7 Sec. 4. Section 473.20A, Code 2013, is amended to read as 8 follows: 9 473.20A Self-liquidating financing. 10 1. a. The authority may facilitate financing agreements 11 that may be entered into with political subdivisions of the 12 state, school districts, area education agencies, community 13 colleges, or nonprofit organizations , or small businesses 14 to finance the costs of energy management improvements on a 15 self-liquidating basis. The provisions of section 473.20 16 defining eligible energy management improvements apply to 17 financings under this section . 18 b. The financing agreement may contain provisions, including 19 interest, term, and obligations to make payments on the 20 financing agreement beyond the current budget year, as may 21 be acceptable to political subdivisions of the state, school 22 districts, area education agencies, community colleges, or 23 nonprofit organizations , or small businesses . 24 c. The authority shall assist the treasurer of state with 25 financing agreements entered into by the treasurer of state on 26 behalf of state agencies pursuant to section 12.28 to finance 27 energy management improvements being implemented by state 28 agencies. 29 2. Political subdivisions of the state, school districts, 30 area education agencies, community colleges, and nonprofit 31 organizations , and small businesses may enter into financing 32 agreements and issue obligations necessary to carry out the 33 provisions of the chapter. Chapter 75 shall not be applicable. 34 EXPLANATION 35 -3- LSB 1658HH (3) 85 rn/sc 3/ 4

H.F. 70 This bill makes small businesses eligible to apply for 1 and obtain specified forms of financing for energy-related 2 improvements contained in Code chapter 473. 3 The bill defines a “small business” by reference to the 4 definition of small business contained in Code section 15.102, 5 subsection 10. That definition states that a “small business” 6 means any enterprise which is located in Iowa, which is 7 operated for profit and under a single management, and which 8 has either fewer than 20 employees or an annual gross income 9 of less than $4 million computed as the average of the three 10 preceding fiscal years. The definition specifically states 11 it does not apply to any program or activity for which a 12 definition for small business is provided for the program or 13 activity by federal law or regulation or other state law. 14 The bill adds small businesses to a list of entities 15 currently eligible to obtain technical assistance and loan 16 facilitation pursuant to the building energy management 17 program and related provisions established by the economic 18 development authority in Code sections 473.19, 473.19A, 19 473.20, and 473.20A. The list includes the state of Iowa, 20 state agencies, political subdivisions of the state, school 21 districts, area education agencies, community colleges, and 22 nonprofit organizations. The bill makes conforming changes 23 where appropriate throughout the Code sections. The bill 24 additionally makes small businesses subject to fees imposed 25 for services performed or assistance rendered pursuant to the 26 program. 27 -4- LSB 1658HH (3) 85 rn/sc 4/ 4