H.F. 2450 DIVISION I 1 ECONOMIC DEVELOPMENT PROGRAMS 2 Section 1. Section 15.106B, subsection 5, paragraph b, Code 3 2024, is amended by striking the paragraph. 4 Sec. 2. NEW SECTION . 15.106E Application or award —— 5 prohibition. 6 1. The authority may prohibit a person from receiving an 7 award of financial assistance, or from being selected as a 8 vendor to provide goods or services to the authority in any of 9 the following circumstances: 10 a. An act or omission by the person seriously affects or 11 threatens public health, public safety, or the environment. 12 b. The person is charged with or convicted of a crime 13 involving dishonesty. 14 c. An act or omission by the person indicates a lack of 15 integrity or honesty. 16 d. The person violates the terms of an agreement or 17 transaction that detrimentally impacts the integrity of a 18 program administered by the authority, or other governmental 19 entity as defined in section 8A.101. 20 e. A compelling cause exists that is relevant to and affects 21 the person’s obligations under the programs administered by the 22 authority, or is relevant to and affects the provision of goods 23 and services to the authority by a vendor. 24 2. Upon a determination by the authority, a person shall 25 be prohibited from receiving an award of financial assistance, 26 or from being selected as a vendor pursuant to subsection 1. 27 The authority shall provide written notice to the prohibited 28 person stating the reason for the prohibition. The authority 29 may immediately disqualify a prohibited person from receiving 30 financial assistance, or from being selected as a vendor. 31 3. The authority shall adopt rules as necessary pursuant to 32 chapter 17A to administer this section. 33 Sec. 3. Section 15.108, subsection 2, Code 2024, is amended 34 by striking the subsection and inserting in lieu thereof the 35 -1- LSB 5327HV (2) 90 jm/ko 1/ 13

H.F. 2450 following: 1 2. Marketing. To aid in all of the following: 2 a. The marketing and promotion of Iowa products and 3 services. 4 b. The promotion and development of the agricultural 5 processing industry in the state. 6 Sec. 4. Section 15.108, subsection 3, paragraph a, 7 subparagraph (5), Code 2024, is amended to read as follows: 8 (5) Encourage cities, counties, local and regional 9 government organizations, and local and regional economic 10 development organizations to develop and implement 11 comprehensive community and economic development plans. In 12 evaluating financial assistance applications, the authority 13 shall award supplementary credit to applications submitted by 14 cities, counties, local and regional government organizations, 15 and local and regional economic development organizations 16 that have developed a comprehensive community and economic 17 development plan. 18 Sec. 5. Section 15.108, subsection 4, Code 2024, is amended 19 by striking the subsection and inserting in lieu thereof the 20 following: 21 4. Exporting. To promote and aid in the marketing and 22 sale of Iowa industrial and agricultural products and services 23 outside of the state. To carry out this responsibility, the 24 authority shall: 25 a. Perform the duties and activities specified for the 26 agricultural marketing program under sections 15.201 and 27 15.202. 28 b. Seek assistance and advice from the Iowa district export 29 council which advises the United States department of commerce. 30 Sec. 6. Section 15.108, subsection 5, paragraph d, Code 31 2024, is amended to read as follows: 32 d. Coordinate with other divisions of the authority to add 33 Promote the contributions of Iowa’s recreation, tourism, and 34 leisure resources to the agricultural and other images which 35 -2- LSB 5327HV (2) 90 jm/ko 2/ 13

H.F. 2450 characterize the state on a national level. 1 Sec. 7. Section 15.108, subsection 5, paragraph o, Code 2 2024, is amended by striking the paragraph. 3 Sec. 8. Section 15.108, subsection 6, paragraph c, Code 4 2024, is amended by striking the paragraph and inserting in 5 lieu thereof the following: 6 c. Provide aid for the development and implementation of 7 the Iowa targeted small business procurement Act established in 8 sections 73.15 through 73.22. 9 Sec. 9. Section 15.108, subsection 6, paragraphs f and g, 10 Code 2024, are amended by striking the paragraphs. 11 Sec. 10. Section 15.108, subsection 7, Code 2024, is amended 12 by striking the subsection. 13 Sec. 11. Section 15.108, subsection 10, paragraph b, 14 subparagraph (3), Code 2024, is amended to read as follows: 15 (3) Establish programs which assist communities or local 16 entities in developing housing to meet a range of community 17 needs, including programs to assist homeless shelter operations 18 and programs to assist in the development of housing to enhance 19 economic development opportunities in the community. 20 Sec. 12. Section 15.371, subsection 5, paragraph e, Code 21 2024, is amended to read as follows: 22 e. Employ a minimum of three full-time employees and no more 23 than seventy-five one hundred twenty-five full-time employees 24 across all of the manufacturer’s locations. 25 Sec. 13. NEW SECTION . 73.22 Reports. 26 1. By December 1 of each calendar year, the department of 27 administrative services shall provide a written summary to the 28 economic development authority of all activities undertaken 29 by the department of administrative services to maximize the 30 purposes of this subchapter during the immediately preceding 31 fiscal year. 32 2. By December 1 of each calendar year, the economic 33 development authority shall compile a list of the procurement 34 goals established pursuant to section 73.16, subsection 2, for 35 -3- LSB 5327HV (2) 90 jm/ko 3/ 13

H.F. 2450 the prior fiscal year, and the performance of each agency or 1 department of state government having purchasing authority in 2 meeting the goals. The compilation shall be based upon the 3 reports required to be filed under section 73.16, subsection 2. 4 3. By January 15 of each calendar year, the economic 5 development authority shall submit to the governor and the 6 general assembly a summary of all reports required under this 7 section. 8 4. The director of the economic development authority, in 9 cooperation with the department of administrative services and 10 other state agencies shall do all of the following: 11 a. Publicize the targeted small business procurement goal 12 program to targeted small businesses and to agencies of state 13 government. 14 b. Identify targeted small businesses able to perform 15 contracts under the program. 16 c. Encourage targeted small businesses to participate in the 17 program. 18 Sec. 14. REPEAL. Sections 15.246, 15.271, and 15.272, Code 19 2024, are repealed. 20 DIVISION II 21 ENERGY SHORTAGES 22 Sec. 15. Section 12.28, subsection 6, Code 2024, is amended 23 to read as follows: 24 6. The maximum principal amount of financing agreements 25 which the treasurer of state can enter into shall be one 26 million dollars per state agency in a fiscal year, subject 27 to the requirements of section 8.46 . For the fiscal year, 28 the treasurer of state shall not enter into more than one 29 million dollars of financing agreements per state agency, 30 not considering interest expense. However, the treasurer 31 of state may enter into financing agreements in excess of 32 the one million dollar per agency per fiscal year limit if a 33 constitutional majority of each house of the general assembly, 34 or the legislative council if the general assembly is not in 35 -4- LSB 5327HV (2) 90 jm/ko 4/ 13

H.F. 2450 session, and the governor, authorize the treasurer of state 1 to enter into additional financing agreements above the one 2 million dollar authorization contained in this section . The 3 treasurer of state shall not enter into a financing agreement 4 for real or personal property which is to be constructed for 5 use as a prison or prison-related facility without prior 6 authorization by a constitutional majority of each house of 7 the general assembly and approval by the governor of the use, 8 location, and maximum cost, not including interest expense, 9 of the real or personal property to be financed. However, 10 financing agreements for an energy conservation measure, as 11 defined in section 7D.34 , for an energy management improvement, 12 as defined in section 473.19 , or for costs associated with 13 projects under section 473.13A , are exempt from the provisions 14 of this subsection , but are subject to the requirements of 15 section 7D.34 . In addition, financing agreements funded 16 through the materials and equipment revolving fund established 17 in section 307.47 are exempt from the provisions of this 18 subsection . 19 Sec. 16. Section 29C.2, Code 2024, is amended by adding the 20 following new subsections: 21 NEW SUBSECTION . 4A. “Energy” or “energy sources” means the 22 same as defined in section 473.1. 23 NEW SUBSECTION . 5A. “Liquid fossil fuel” means heating 24 oil, diesel oil, motor gasoline, propane, residual fuel oil, 25 kerosene, and aviation fuel. 26 NEW SUBSECTION . 7A. “Prime supplier” means an individual, 27 trustee, agency, partnership, association, corporation, 28 company, municipality, political subdivision, or other legal 29 entity that makes the first sale of liquid fossil fuel into the 30 state distribution system for consumption within the state. 31 Sec. 17. Section 29C.6, Code 2024, is amended by adding the 32 following new subsection: 33 NEW SUBSECTION . 18. a. Determine that an actual acute 34 shortage of usable energy has occurred or is imminent based 35 -5- LSB 5327HV (2) 90 jm/ko 5/ 13

H.F. 2450 upon circumstances indicated in the state energy security plan 1 created in section 473.5, or in response to a declaration of 2 a severe energy supply interruption by the president of the 3 United States under the federal Emergency Energy Conservation 4 Act of 1979, Pub. L. No. 96-102, as amended. Upon such a 5 determination, the governor may do any of the following by 6 proclamation: 7 (1) Regulate the operating hours of agencies and 8 instrumentalities of state government, political subdivisions, 9 private institutions, and business facilities that consume 10 energy to the extent the regulation is not hazardous or 11 detrimental to the health, safety, or welfare of the people of 12 this state. However, the governor shall not have authority to 13 suspend, amend, or nullify any service provided by a public 14 utility, as defined in section 476.1, if the public utility 15 is providing such service pursuant to an order or rule of a 16 federal agency which has jurisdiction over the public utility. 17 The governor shall also not have authority to suspend, 18 amend, or nullify any service provided by a public utility, 19 as defined in section 476.1, when the public utility has a 20 contractual or tariff obligation pursuant to the tariff of a 21 federally-approved regional transmission organization. 22 (2) Establish a system for the distribution and supply 23 of energy. The system shall not include a coupon rationing 24 program, unless the coupon rationing program is federally 25 mandated. 26 (3) Curtail public and private transportation utilizing 27 energy. Curtailment may include measures designed to promote 28 the use of carpools and mass transit systems. 29 (4) Accept the delegation of authority for other mandatory 30 measures under the federal Emergency Energy Conservation Act of 31 1979, Pub. L. No. 96-102, as amended. 32 (5) Require a prime supplier to reserve a specified fraction 33 of the prime supplier’s projected total monthly release of 34 liquid fossil fuel into the state distribution system. The 35 -6- LSB 5327HV (2) 90 jm/ko 6/ 13

H.F. 2450 governor or the governor’s designee may release any or all 1 of the fuel required to be reserved by a prime supplier 2 to end-users or to distributors for release through normal 3 retail distribution channels. However, the specified fraction 4 required to be reserved shall not exceed three percent for 5 propane, aviation fuel, and residual fuel oil, and five percent 6 for motor gasoline, heating oil, and diesel oil. 7 b. A person who violates paragraph “a” commits a simple 8 misdemeanor punishable as a scheduled violation pursuant to 9 section 805.8C, subsection 1. If the violation is continuous 10 and stationary in its nature and subsequent compliance can 11 easily be ascertained, an officer may issue a memorandum of 12 warning in lieu of a citation providing a reasonable amount of 13 time not exceeding fourteen days to correct the violation and 14 to comply with the requirements of the proclamation. 15 Sec. 18. Section 279.53, Code 2024, is amended to read as 16 follows: 17 279.53 Loan proceeds. 18 The proceeds of loans issued to school districts pursuant to 19 section 279.48 , or 279.52 , or 473.20 shall be deposited into 20 either the general fund of a school district or the physical 21 plant and equipment levy fund. The board of directors shall 22 expend the amount of the principal and interest due each year 23 to maturity from the same fund into which the loan proceeds 24 were deposited. 25 Sec. 19. Section 298.3, subsection 1, paragraph g, Code 26 2024, is amended to read as follows: 27 g. Expenditures for energy conservation , including payments 28 made pursuant to a guarantee furnished by a school district 29 entering into a financing agreement for energy management 30 improvements, limited to agreements pursuant to section 473.19 , 31 473.20 , or 473.20A . 32 Sec. 20. Section 323A.2, subsection 1, paragraph c, Code 33 2024, is amended to read as follows: 34 c. The director of the economic development authority 35 -7- LSB 5327HV (2) 90 jm/ko 7/ 13

H.F. 2450 determines that the franchisee has demonstrated that a special 1 hardship exists in the community served by the franchisee 2 relating to the public health, safety, and welfare , as 3 specified under the rules of the authority . 4 Sec. 21. Section 473.1, subsection 3, Code 2024, is amended 5 by striking the subsection. 6 Sec. 22. Section 473.3, subsection 2, Code 2024, is amended 7 by striking the subsection. 8 Sec. 23. NEW SECTION . 473.4 Duties of the authority. 9 The authority shall do the following: 10 1. Periodically update the Iowa energy plan that identifies 11 objectives and strategies for developing the energy sector in 12 the state. 13 2. Administer and coordinate federal funds received for 14 energy conservation, energy management, and alternative and 15 renewable energy programs. 16 3. Apply for, receive, administer, and use federal or other 17 funds available for achieving the purposes of this chapter. 18 Sec. 24. NEW SECTION . 473.5 Energy security plan. 19 1. The governor or the governor’s designee shall maintain 20 an energy security plan. 21 2. The energy security plan shall include but is not limited 22 to the following: 23 a. A description of the circumstances that indicate an 24 actual or imminent acute shortage of usable energy, including 25 liquid fossil fuels. 26 b. Any action to be taken by the authority or relevant 27 agencies in response to a proclamation issued pursuant to 28 section 29C.6, subsection 18. 29 Sec. 25. Section 805.8C, subsection 1, Code 2024, is amended 30 to read as follows: 31 1. Energy emergency violations. For violations of an 32 executive order issued a proclamation by the governor under the 33 provisions of section 473.8 section 29C.6, subsection 18 , the 34 scheduled fine is seventy dollars. 35 -8- LSB 5327HV (2) 90 jm/ko 8/ 13

H.F. 2450 Sec. 26. REPEAL. Sections 473.7, 473.8, 473.9, 473.10, 1 473.13A, 473.15, 473.19, 473.19A, 473.20, 473.20A, and 473.41, 2 Code 2024, are repealed. 3 Sec. 27. TRANSFER OF MONEYS. On the effective date of this 4 division of this Act, any moneys remaining in the building 5 energy management fund in section 473.19A, Code 2024, shall be 6 transferred to the general fund of the state. 7 EXPLANATION 8 The inclusion of this explanation does not constitute agreement with 9 the explanation’s substance by the members of the general assembly. 10 This bill relates to economic development and energy 11 shortages under the purview of the economic development 12 authority and governor. 13 DIVISION I —— ECONOMIC DEVELOPMENT PROGRAMS. The bill 14 strikes the specific power of the economic development 15 authority (authority) to charge a business or individual a fee 16 for use of the authority’s federal EB-5 immigrant investor 17 regional center. 18 The bill specifies the circumstances in which the authority 19 may prohibit a person from receiving an award or financial 20 assistance, or from being selected as a vendor to provide goods 21 or services to the authority. The circumstances include: 22 an act or omission by the person that seriously affects or 23 threatens public health, public safety, or the environment; 24 the person is charged with or convicted of a crime involving 25 dishonesty; an act or omission by the person that indicates a 26 lack of integrity or honesty; the person violates the terms 27 of an agreement or transaction; or a compelling cause exists 28 that is relevant to and affects the obligations of the person 29 or vendor under programs administered by the authority. The 30 authority is required to provide written notification to the 31 person of the reason for the prohibition, and may immediately 32 disqualify such a person from receiving financial assistance 33 or being selected as a vendor. 34 The bill makes numerous changes to Code section 15.108 35 -9- LSB 5327HV (2) 90 jm/ko 9/ 13

H.F. 2450 (primary responsibilities of the authority). The bill 1 strikes the requirement that the authority establish a federal 2 procurement office staffed with experts in marketing to federal 3 agencies. 4 The bill strikes provisions allowing the authority to 5 adopt a label or trademark that identifies Iowa products and 6 services, and to promote an import substitution program to 7 encourage the purchase of domestically produced Iowa goods. 8 In financial assistance applications, the bill strikes a 9 provision requiring the authority to award a supplementary 10 credit to applications submitted by local governments 11 or regional economic development organizations if such 12 governmental entity or organization has developed a 13 comprehensive community and economic development plan. 14 The bill strikes a provision encouraging coordination with 15 the Iowa board of regents and area community colleges to 16 establish a conversational foreign language training program. 17 A provision encouraging the promotion and assistance in the 18 creation of international currency and barter exchanges is 19 stricken. 20 Under the bill, the governor is no longer required to appoint 21 an export advisory board. 22 The bill strikes a provision encouraging college graduates 23 from Iowa schools and former residents who reside in foreign 24 countries to become cultural advisors for the authority and for 25 Iowa businesses participating in trade missions, and strikes 26 the provision encouraging foreign students studying in Iowa 27 to be used as contacts with Iowa businesses engaged in export 28 activities. 29 A revolving fund is stricken by the bill that allows 30 the authority to receive contributions for use in start-up 31 expansion of tourism special events, fairs, and festivals. 32 The bill moves provisions regarding the submission of 33 reports relating to the targeted small business procurement 34 program in Code section 15.108(6) to new Code section 73.22 as 35 -10- LSB 5327HV (2) 90 jm/ko 10/ 13

H.F. 2450 created in the bill. However, the bill removes the provision 1 in Code section 15.108(6)(3) requiring the director of the 2 authority to assist a targeted small business unable to perform 3 a procurement contract, and makes other related changes. 4 The bill strikes a provision encouraging the authority to 5 cooperate with other state agencies to establish a program 6 to educate employers on the rates and workings of the 7 state unemployment compensation program and state workers’ 8 compensation program. 9 Under the bill, the authority is no longer required to study 10 the feasibility of reducing the number of state licenses, 11 permits, and certificates required to conduct business. 12 The bill strikes a provision allowing the authority to help 13 local entities develop programs to assist homeless shelter 14 operations. 15 The bill strikes a provision requiring the authority to 16 provide case management assistance to low-income persons 17 establishing or expanding a small business, and repeals the 18 case management program in Code section 15.246. 19 The bill expands the manufacturing 4.0 technology program by 20 allowing an employer who employs up to 125 employees to qualify 21 for the program. Currently, an employer with more than 75 22 employees does not qualify for the program. 23 The bill repeals provisions requiring a statewide welcome 24 center program and related provisions. 25 DIVISION II —— ENERGY SHORTAGES. Under current law, if the 26 authority by resolution determines the people of this state are 27 threatened by an actual or impending acute shortage of energy, 28 the authority is required to transmit the resolution to the 29 governor together with recommendations. After transmission of 30 such a resolution under current law, the governor may issue a 31 proclamation of emergency. 32 The bill grants the governor sole power to issue a 33 proclamation that an actual acute shortage of usable energy has 34 occurred or is imminent based upon the energy security plan of 35 -11- LSB 5327HV (2) 90 jm/ko 11/ 13

H.F. 2450 the state developed in the bill, or allows the governor to base 1 the proclamation in response to a declaration of severe energy 2 supply interruption by the president of the United States 3 under the federal Emergency Energy Conservation Act of 1979, 4 as amended. The bill moves the current proclamation powers in 5 Code section 473.8(2) to new Code section 29C.6(18), and the 6 powers essentially remain the same. 7 The bill moves the definitions of “prime supplier” and 8 “liquid fossil fuel” from Code section 473.9 to Code section 9 29C.2, and defines “energy” or “energy sources” in Code section 10 29C.2 to mean the same as in Code section 473.1. 11 The bill strikes the ability of the authority to adopt rules 12 for energy-related hardships that result in public, health, 13 safety, and welfare concerns in Code section 323A.2(1). 14 The bill strikes a provision requiring state government to 15 be a model and testing ground for the use of energy and energy 16 systems. 17 The bill authorizes the creation of an energy security 18 plan in new Code section 473.5. The bill requires the energy 19 security plan to include but is not limited to a description 20 of circumstances that may lead to an actual or impending acute 21 shortage of energy, including liquid fossil fuels, and action 22 plans to be taken by relevant state agencies if a disaster 23 emergency proclamation relating to energy is issued by the 24 governor. 25 The bill repeals Code section 473.7 (duties of authority) 26 and removes most of the duties of the authority. The remaining 27 duties of the authority are expressed in new Code section 473.4 28 created in the bill. The duties include periodically updating 29 the energy security plan authorized in the bill. 30 The bill updates the simple misdemeanor scheduled violation 31 for energy emergency violations in Code section 805.8C(1) 32 due to moving the provisions relating to the proclamation 33 declaration from Code section 473.8 to Code section 29C.6(18) 34 in the bill. 35 -12- LSB 5327HV (2) 90 jm/ko 12/ 13

H.F. 2450 The bill repeals provisions relating to energy emergencies, 1 energy management, energy funds, and energy loan programs 2 under the purview of the authority including Code sections 3 473.7 (duties of authority), 473.8 (emergency powers), 473.9 4 (set-aside definitions), 473.10 (reserve required), 473.13A 5 (energy management improvements identified and implemented), 6 473.15 (annual report), 473.19 (building energy management 7 program), 473.19A (building energy management fund), 473.20 8 (energy loan program), 473.20A (self-liquidating financing), 9 and 473.41 (energy city designation program). 10 On July 1, 2024, the date of the repeal of the building 11 energy management fund in Code section 473.19A, the bill 12 transfers any remaining moneys in the fund to the general fund 13 of the state. 14 -13- LSB 5327HV (2) 90 jm/ko 13/ 13