HF 70 (LSB 1658HH (3) 85)

HOUSE FILE 70

BY  RIDING

A BILL FOR

An Act providing for small business eligibility to qualify for and obtain specified energy-related financial assistance. 
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:

    Section 1.  Section 473.19, subsections 1 and 2, Code 2013, are amended to read as follows:
   1.  The building energy management program is established by the authority. The building energy management program consists of the following forms of assistance for the state, state agencies, political subdivisions of the state, school districts, area education agencies, community colleges, and nonprofit organizations, and small businesses:
   a.  Promoting program availability.
   b.  Developing or identifying guidelines and model energy techniques for the completion of energy analyses for state agencies, political subdivisions of the state, school districts, area education agencies, community colleges, and nonprofit organizations, and small businesses.
   c.  Providing technical assistance for conducting or evaluating energy analyses for state agencies, political subdivisions of the state, school districts, area education agencies, community colleges, and nonprofit organizations, and small businesses.
   d.  Providing or facilitating loans, leases, and other methods of alternative financing under the energy loan program for the state, state agencies, political subdivisions of the state, school districts, area education agencies, community colleges, and nonprofit organizations, and small businesses to implement energy management improvements or energy analyses.
   e.  Providing assistance for obtaining insurance on the energy savings expected to be realized from the implementation of energy management improvements.
   f.  Facilitating self-liquidating financing for the state, state agencies, political subdivisions of the state, school districts, area education agencies, community colleges, and nonprofit organizations, and small businesses pursuant to section 473.20A.
   g.  Assisting the treasurer of state with financing agreements entered into by the treasurer of state on behalf of state agencies to finance energy management improvements pursuant to section 12.28.
   2.  For the purpose of this section,
 
section 473.13A, 473.19A, section 473.20, and section 473.20A, “energy management improvement” means construction, rehabilitation, acquisition, or modification of an installation in a facility or vehicle which is intended to reduce energy consumption, or energy costs, or both, or allow the use of alternative and renewable energy. “Energy management improvement” may include control and measurement devices. “Nonprofit organization” means an organization exempt from federal income taxation under section 501(c)(3) of the Internal Revenue Code.

“Small business” means the same as defined in section 15.102, subsection 10.
    Sec. 2.  Section 473.19A, subsection 2, paragraph b, subparagraph (1), unnumbered paragraph 1, Code 2013, is amended to read as follows:
   Moneys received in the form of fees imposed upon the state, state agencies, political subdivisions of the state, school districts, area education agencies, community colleges, and nonprofit organizations, and small businesses for services performed or assistance rendered pursuant to the building energy management program. Fees imposed pursuant to this paragraph
 
“b” shall be established by the authority in an amount corresponding to the operational expenses or administrative costs incurred by the authority in performing services or providing assistance authorized pursuant to the building energy management program, as follows:
    Sec. 3.  Section 473.20, subsection 2, Code 2013, is amended to read as follows:
   2.  The authority may facilitate the loan process for political subdivisions of the state, school districts, area education agencies, community colleges, and nonprofit organizations, and small businesses for implementation of energy management improvements identified in an energy analysis. Loans shall be facilitated for all cost-effective energy management improvements. For political subdivisions of the state, school districts, area education agencies, community colleges, and nonprofit organizations, and small businesses to receive loan assistance under the program, the authority shall require completion of an energy management plan including an energy analysis. The authority shall approve loans facilitated under this section.
    Sec. 4.  Section 473.20A, Code 2013, is amended to read as follows:
   473.20A  Self-liquidating financing.
   1.
  a.  The authority may facilitate financing agreements that may be entered into with political subdivisions of the state, school districts, area education agencies, community colleges, or nonprofit organizations, or small businesses to finance the costs of energy management improvements on a self-liquidating basis. The provisions of section 473.20 defining eligible energy management improvements apply to financings under this section.
   b.  The financing agreement may contain provisions, including interest, term, and obligations to make payments on the financing agreement beyond the current budget year, as may be acceptable to political subdivisions of the state, school districts, area education agencies, community colleges, or nonprofit organizations, or small businesses.
   c.  The authority shall assist the treasurer of state with financing agreements entered into by the treasurer of state on behalf of state agencies pursuant to section 12.28 to finance energy management improvements being implemented by state agencies.
   2.  Political subdivisions of the state, school districts, area education agencies, community colleges, and nonprofit organizations, and small businesses may enter into financing agreements and issue obligations necessary to carry out the provisions of the chapter. Chapter 75 shall not be applicable.
EXPLANATION
   This bill makes small businesses eligible to apply for and obtain specified forms of financing for energy-related improvements contained in Code chapter 473.
   The bill defines a “small business” by reference to the definition of small business contained in Code section 15.102, subsection 10. That definition states that a “small business” means any enterprise which is located in Iowa, which is operated for profit and under a single management, and which has either fewer than 20 employees or an annual gross income of less than $4 million computed as the average of the three preceding fiscal years. The definition specifically states it does not apply to any program or activity for which a definition for small business is provided for the program or activity by federal law or regulation or other state law.
   The bill adds small businesses to a list of entities currently eligible to obtain technical assistance and loan facilitation pursuant to the building energy management program and related provisions established by the economic development authority in Code sections 473.19, 473.19A, 473.20, and 473.20A. The list includes the state of Iowa, state agencies, political subdivisions of the state, school districts, area education agencies, community colleges, and nonprofit organizations. The bill makes conforming changes where appropriate throughout the Code sections. The bill additionally makes small businesses subject to fees imposed for services performed or assistance rendered pursuant to the program.