House File 2193 - Introduced HOUSE FILE 2193 BY STAED , HUNTER , MASCHER , BROWN-POWERS , ISENHART , DONAHUE , B. MEYER , and WILBURN A BILL FOR An Act creating a nonprofit organization energy efficiency 1 grant program, making an appropriation, and including 2 effective date provisions. 3 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 4 TLSB 5309YH (6) 89 es/rn

H.F. 2193 Section 1. Section 15.108, subsection 9, paragraph g, Code 1 2022, is amended to read as follows: 2 g. Administer the Iowa energy center established in section 3 15.120 . This paragraph “g” is repealed July 1, 2022. 4 Sec. 2. REPEAL. Section 15.120, subsection 5, Code 2022, 5 is repealed. 6 Sec. 3. NEW SECTION . 266.39D Nonprofit organization energy 7 efficiency grant program. 8 1. As used in this section, unless the context otherwise 9 requires: 10 a. “Energy efficiency improvement” means an installed 11 measure, including a product, equipment, system, service, or 12 practice that is intended to reduce energy consumption or 13 energy costs, or both, or to allow the use of alternative and 14 renewable energy. The term “energy efficiency improvement” 15 shall include any of the following measures: 16 (1) Repairing, replacing, or installing a roof or lighting 17 system, window, door, or heating, ventilation, or air 18 conditioning system, including improvements needed to serve a 19 more energy efficient system. 20 (2) Installing a renewable energy generation or heating 21 system, including a solar, photovoltaic, wind, geothermal, or 22 biomass system. 23 (3) Modernizing, renovating, or repairing a building to 24 make the building more energy efficient. 25 b. “Nonprofit organization” means an organization exempt 26 from federal income taxation under section 501(c)(3) of the 27 Internal Revenue Code. 28 2. The Iowa energy center created under section 266.39C 29 shall use funds appropriated by the general assembly to 30 establish and administer a nonprofit organization energy 31 efficiency grant program to award grants for the purpose of 32 financing energy efficiency improvements to buildings owned and 33 operated by a nonprofit organization. 34 3. A nonprofit organization may apply to the Iowa energy 35 -1- LSB 5309YH (6) 89 es/rn 1/ 5

H.F. 2193 center for a grant under this section by filing a completed 1 application. The Iowa energy center shall develop a form for 2 a grant application. The Iowa energy center shall establish 3 standards and criteria to award grants, which shall include the 4 following: 5 a. The estimated energy savings to be achieved. 6 b. The estimated cost-effectiveness of the energy efficiency 7 improvement. 8 c. Other performance-based standards and criteria deemed 9 appropriate by the Iowa energy center. 10 d. An effective plan for evaluation, measurement, and 11 verification of energy savings. 12 e. The financial need of the nonprofit organization. 13 f. The availability of matching funds. 14 4. A grant awarded under this section shall not exceed the 15 lesser of one hundred thousand dollars or an amount equal to 16 fifty percent of the estimated cost of the proposed energy 17 efficiency improvement. 18 Sec. 4. Section 476.1A, subsection 1, paragraph e, Code 19 2022, is amended to read as follows: 20 e. Assessment of fees for the support of the Iowa energy 21 center created in section 15.120 and the center for global and 22 regional environmental research established by the state board 23 of regents. This paragraph “e” is repealed July 1, 2022. 24 Sec. 5. Section 476.1B, subsection 1, paragraph j, Code 25 2022, is amended to read as follows: 26 j. Assessment of fees for the support of the Iowa energy 27 center created in section 15.120 and the center for global and 28 regional environmental research created by the state board of 29 regents. This paragraph “j” is repealed July 1, 2022. 30 Sec. 6. Section 476.1C, subsection 1, paragraph b, Code 31 2022, is amended to read as follows: 32 b. Shall be subject to the assessment of fees for the 33 support of the Iowa energy center created in section 15.120 34 and the center for global and regional environmental research 35 -2- LSB 5309YH (6) 89 es/rn 2/ 5

H.F. 2193 created by the state board of regents. This paragraph “b” is 1 repealed July 1, 2022. 2 Sec. 7. Section 476.10A, subsection 1, paragraph c, 3 subparagraph (1), subparagraph division (d), Code 2022, is 4 amended to read as follows: 5 (d) For the fiscal year beginning July 1, 2021, and 6 succeeding fiscal years, the first three million five 7 hundred thirty thousand dollars of such remittances shall be 8 transferred to the general fund of the state, and the remaining 9 amount is appropriated to the Iowa energy center created in 10 section 15.120 . 11 Sec. 8. REPEAL. Section 476.10A, subsection 4, Code 2022, 12 is repealed. 13 Sec. 9. APPROPRIATION. There is appropriated from the 14 general fund of the state to the Iowa energy center for the 15 fiscal year beginning July 1, 2022, and ending June 30, 2023, 16 the following amount, or so much thereof as is necessary, to be 17 used for the purposes designated: 18 For establishing and administering the nonprofit 19 organization energy efficiency grant program and for awarding 20 grants under the program: 21 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 1,000,000 22 Notwithstanding section 8.33, moneys appropriated in this 23 section that remain unencumbered or unobligated at the close 24 of the fiscal year shall not revert to the general fund of the 25 state but shall remain available to be used for the purposes 26 designated. 27 Sec. 10. EFFECTIVE DATE. This Act, being deemed of 28 immediate importance, takes effect upon enactment. 29 EXPLANATION 30 The inclusion of this explanation does not constitute agreement with 31 the explanation’s substance by the members of the general assembly. 32 This bill requires the Iowa energy center to create a 33 nonprofit organization energy efficiency grant program to 34 award grants for the purpose of financing energy efficiency 35 -3- LSB 5309YH (6) 89 es/rn 3/ 5

H.F. 2193 improvements to buildings owned and operated by nonprofit 1 organizations. 2 The bill defines “energy efficiency improvement” to mean an 3 installed measure that is intended to reduce energy consumption 4 or costs, or both, or to allow the use of alternative 5 and renewable energy, including repairing, replacing, or 6 installing a roof or lighting system, window, door, or heating, 7 ventilation, or air conditioning system, a renewable energy 8 generation or heating system, or a measure taken to make the 9 building more energy efficient. The bill defines “nonprofit 10 organization” to mean an organization exempt from federal 11 income taxation. 12 The bill requires the Iowa energy center to establish 13 appropriate performance-based standards and criteria to approve 14 grants, including the estimated energy savings achieved, the 15 estimated cost-effectiveness of the improvement, the plan 16 for evaluating, measuring, and verifying energy savings, 17 the financial need of the nonprofit organization, and the 18 availability of matching funds. The bill restricts a grant 19 awarded under the program to the lesser of $100,000 or 50 20 percent of the proposed energy efficiency improvements. 21 The bill appropriates $1 million to the Iowa energy center 22 for FY 2022-2023 for the purpose of implementing the nonprofit 23 organization energy efficiency grant program. The moneys 24 appropriated in the bill are not subject to reversion to the 25 general fund of the state at the end of the fiscal year. 26 The bill repeals the sunset provision of the Iowa energy 27 center established in Code section 15.120. Current law repeals 28 the Iowa energy center on July 1, 2022. The bill extends 29 specified funding sources for the Iowa energy center and the 30 center for global and regional environmental research and 31 makes conforming amendments. The bill provides that the first 32 $3.53 million of specified remittances from gas and electric 33 utilities are appropriated to the general fund of the state 34 with the remaining remittances transferred to the Iowa energy 35 -4- LSB 5309YH (6) 89 es/rn 4/ 5

H.F. 2193 center. Currently, this provision applies for the fiscal year 1 2021-2022. 2 -5- LSB 5309YH (6) 89 es/rn 5/ 5