S.F. 99 Section 1. NEW SECTION . 385.1 Definitions. 1 For purposes of this chapter, unless the context otherwise 2 requires: 3 1. “Board” means a board of directors of an energy district. 4 2. “District” means an energy district created pursuant to 5 this chapter. 6 3. “Energy improvement” means construction, rehabilitation, 7 acquisition, or modification of an installation in a facility 8 that is intended to reduce energy consumption or energy costs, 9 or both, or allow the use of alternate and renewable energy. 10 Sec. 2. NEW SECTION . 385.2 Energy districts formed. 11 1. A county, a county and one or more cities within that 12 county, or one or more cities in the same county may create, 13 by chapter 28E agreement, an energy district pursuant to this 14 chapter. A city located within the boundaries of more than one 15 county is eligible to participate in a district formed from one 16 of the counties where the city is located, and the district 17 shall serve the entire city. 18 2. The chapter 28E agreement shall include a map showing the 19 area and boundaries of the district. 20 3. A county or city is not required to participate in a 21 district or be a party to a chapter 28E agreement under this 22 chapter. 23 Sec. 3. NEW SECTION . 385.3 Duties. 24 An energy district may perform all of the following duties: 25 1. Provide technical assistance and energy planning 26 services to residents within the district relating to 27 opportunities for energy improvements, including identifying 28 sources for financial assistance. 29 2. Monitor and establish goals for energy usage and 30 production in the district. 31 3. Assist with compliance of the state building code energy 32 conservation requirements. 33 4. Take any action consistent with the goal of the state to 34 efficiently utilize energy resources in accordance with section 35 -1- LSB 1456XS (3) 87 gh/sc 1/ 4

S.F. 99 473.3. 1 Sec. 4. NEW SECTION . 385.4 Board of directors. 2 1. A district shall be governed by a board of directors. 3 If a district is created by one county or one or more cities, 4 the members of the board of directors shall be appointed by 5 the governing body of the county or city, as applicable. If a 6 district is created by a county and one or more cities, members 7 of the board of directors shall be divided among the county and 8 cities participating in the district and shall be appointed by 9 the governing bodies of the participating county and cities. 10 2. A board of directors shall consist of residents of each 11 county or city participating in the district. The chapter 28E 12 agreement shall specify the composition of the board and the 13 number of members on the board, which shall not be less than 14 three. 15 3. The directors shall serve staggered terms of four years. 16 The initial board shall determine, by lot, the initial terms 17 to be shortened and lengthened, as necessary, to achieve 18 staggered terms. A person appointed to fill a vacancy shall be 19 appointed in the same manner as the original appointment for 20 the duration of the unexpired term. A director is eligible 21 for reappointment. This subsection shall not apply if a 22 chapter 28E agreement entered into under this chapter provides 23 an alternative for the length of term, appointment, and 24 reappointment of directors. 25 4. A board may provide procedures for the removal of a 26 director who fails to attend three consecutive regular meetings 27 of the board. If a director is so removed, a successor shall be 28 appointed for the duration of the unexpired term of the removed 29 director in the same manner as the original appointment. The 30 appointing governing body may at any time remove a director 31 appointed by it for misfeasance, nonfeasance, or malfeasance 32 in office. 33 5. A board shall adopt bylaws and shall elect one director 34 as chairperson and one director as vice chairperson, each for a 35 -2- LSB 1456XS (3) 87 gh/sc 2/ 4

S.F. 99 term of two years, and shall appoint a secretary who need not 1 be a director. 2 6. A majority of the membership of a board of directors 3 shall constitute a quorum for the purpose of holding a meeting 4 of the board. The affirmative vote of a majority of a quorum 5 shall be necessary for any action taken by a district unless 6 the district’s bylaws specify those particular actions of the 7 district requiring a greater number of affirmative votes. A 8 vacancy in the membership of the board shall not impair the 9 rights of a quorum to exercise all the rights and perform all 10 the duties of the district. 11 Sec. 5. NEW SECTION . 385.5 Activities coordination. 12 In all activities of an energy district, the district 13 may coordinate its activities with the department of natural 14 resources, the economic development authority, the department 15 of commerce, the department of public safety, and councils of 16 governments and regional and local agencies. 17 EXPLANATION 18 The inclusion of this explanation does not constitute agreement with 19 the explanation’s substance by the members of the general assembly. 20 This bill authorizes a county, a county and one or more 21 cities within that county, or one or more cities within the 22 same county to create an energy district by Code chapter 28E 23 agreement. 24 The bill provides that a city located within the boundaries 25 of more than one county may participate in an energy district 26 formed from one of the counties where the city is located, and 27 the district shall serve the entire city. The Code chapter 28E 28 agreement establishing a district must include a map showing 29 the boundaries of the district. 30 The bill provides that an energy district may provide 31 technical assistance and energy planning services to 32 residents in the district relating to opportunities for energy 33 improvements, as defined in the bill, including identifying 34 financial assistance sources, monitoring and establishing goals 35 -3- LSB 1456XS (3) 87 gh/sc 3/ 4

S.F. 99 for energy usage and production, assisting with compliance of 1 the state building code energy conservation requirements, and 2 taking any action consistent with the state goal to efficiently 3 utilize energy resources in accordance with Code section 473.3 4 (“energy resource management goal”). 5 The bill provides that an energy district shall be governed 6 by a board of directors who are residents of the district and 7 who are appointed by the governing bodies of the participating 8 county or cities, as applicable. Unless otherwise stated 9 in the Code chapter 28E agreement, directors are to serve 10 staggered terms of four years. A board may establish 11 procedures for the removal of a director who fails to attend 12 three consecutive meetings. The governing body that appointed 13 a director may at any time remove a director for misfeasance, 14 nonfeasance, or malfeasance in office. A board must adopt 15 bylaws. A majority of the membership of a board constitutes 16 a quorum for holding a meeting and the affirmative vote of 17 a majority of a quorum is necessary for taking action. The 18 agreement shall specify the composition of the board and the 19 number of members on the board. 20 The bill provides that an energy district may coordinate 21 its activities with the department of natural resources, the 22 economic development authority, the department of commerce, the 23 department of public safety, and councils of government and 24 regional and local agencies. 25 -4- LSB 1456XS (3) 87 gh/sc 4/ 4