HF 626 (LSB 2655YH (3) 88)

HOUSE FILE 626

BY  NIELSEN

A BILL FOR

An Act  relating to certain plans filed by gas and electric utilities, and including retroactive applicability provisions.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:

    Section 1.  Section 476.6, subsection 15, paragraph a, subparagraph (1), subparagraph division (a), Code 2019, is amended to read as follows:
   (a)  Electric utilities required to be rate-regulated under this chapter shall file five-year energy efficiency plans and demand response plans with the board. Gas utilities required to be rate-regulated under this chapter shall file five-year energy efficiency plans with the board. An energy efficiency plan and budget or a demand response plan and budget shall include a range of energy efficiency or demand response programs, tailored to the needs of all customer classes, including residential, commercial, and industrial customers, for energy efficiency opportunities. The plans shall include programs for qualified low-income persons including a cooperative program with any community action agency within the utility’s service area to implement countywide or communitywide energy efficiency programs for qualified low-income persons.  Energy efficiency plans filed by rate-regulated gas and electric utilities shall include weatherization assistance programs for qualified low-income persons, which programs shall be funded by the gas or electric utility in an amount no less than the amount used to fund such programs pursuant to the gas or electric utility’s five-year energy efficiency plan in effect as of July 1, 2018. Rate-regulated gas and electric utilities shall utilize Iowa agencies and Iowa contractors to the maximum extent cost-effective in their energy efficiency plans or demand response plans filed with the board.
    Sec. 2.  Section 476.6, subsection 15, paragraph c, subparagraph (2), Code 2019, is amended to read as follows:
   (2)  (a)  Notwithstanding the goals developed pursuant to paragraph “b”, the board shall not require a gas utility to adopt an energy efficiency plan that results in projected cumulative average annual costs that exceed one and one-half percent of the gas utility’s expected annual Iowa retail rate revenue from retail customers in the state, shall not require an electric utility to adopt an energy efficiency plan that results in projected cumulative average annual costs that exceed two percent of the electric utility’s expected annual Iowa retail rate revenue from retail customers in the state, and shall not require an electric utility to adopt a demand response plan that results in projected cumulative average annual costs that exceed two percent of the electric utility’s expected annual Iowa retail rate revenue from retail customers in the state.
   (b)  For purposes of determining the one and one-half or two percent threshold amount, the board shall exclude all of the following from an a gas or electric utility’s expected annual Iowa retail rate revenue the:
   (i)  The revenues expected from customers that have received exemptions from energy efficiency plans pursuant to paragraph “a”.
   (ii)  The costs of providing weatherization assistance programs for qualified low-income persons, as required in paragraph “a”, subparagraph (1), subparagraph division (a).
   (c)  This subparagraph shall apply to energy efficiency plans and demand response plans that are effective on or after January 1, 2019.
    Sec. 3.  RETROACTIVE APPLICABILITY.  This Act applies retroactively to January 1, 2019, for energy efficiency plans that are effective on or after January 1, 2019.
EXPLANATION
The inclusion of this explanation does not constitute agreement with
the explanation’s substance by the members of the general assembly.
   Current law requires rate-regulated gas and electric utilities to file five-year energy efficiency plans with the Iowa utilities board. Current law prohibits the board from requiring a gas utility to adopt an energy efficiency plan that results in projected cumulative average annual costs that exceed 1.5 percent of the gas utility’s expected annual Iowa retail rate revenue from Iowa retail customers, and an electric utility to adopt an energy efficiency plan that results in projected cumulative average annual costs that exceed 2 percent of the electric utility’s expected annual Iowa retail rate revenue from Iowa retail customers.
   This bill requires five-year energy efficiency plans filed by gas and electric utilities to include weatherization assistance programs for qualified low-income persons, which shall be funded in an amount no less than the amount used to fund such programs in the utility’s five-year energy efficiency plan in effect as of July 1, 2018.
   The bill provides that for purposes of determining the 1.5 or 2 percent threshold cap regarding gas or electric utility plan costs, the board shall exclude the utility’s costs of providing low-income weatherization assistance programs.
   The bill applies retroactively to January 1, 2019, for energy efficiency plans that are effective on or after that date.