House File 2573 - Introduced HOUSE FILE 2573 BY GOSA A BILL FOR An Act relating to grants for qualified mechanical insulation 1 expenditures. 2 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 3 TLSB 6561YH (3) 91 nls/ko

H.F. 2573 Section 1. NEW SECTION . 15.232 Mechanical insulation energy 1 savings program. 2 1. As used in this section, unless the context otherwise 3 requires: 4 a. “Applicant” means a school district, public hospital, 5 public housing building, or political subdivision with a 6 building of at least twenty thousand square feet that may 7 require mechanical insulation upgrades. 8 b. “Mechanical insulation” means insulation materials, 9 facings, and accessory products used for thermal requirements 10 for mechanical piping and equipment, hot and cold applications, 11 heating, ventilation, and air-conditioning applications. 12 c. “Qualified audit” means a mechanical insulation audit of 13 a building provided by a qualified contractor at no cost to the 14 authority or an applicant, which identifies missing, damaged, 15 or improperly installed mechanical insulation. A “qualified 16 audit” includes an estimate of installation costs and estimated 17 energy and cost savings. 18 d. “Qualified contractor” means an insulation contractor 19 who has entered into an apprenticeship agreement as defined 20 in section 84D.2, that is appropriate for the type and 21 scope of work to be performed, including the ability to 22 meet the American society of heating, refrigerating, and 23 air-conditioning engineers energy standard for buildings except 24 low-rise residential buildings. 25 e. “Qualified mechanical insulation expenditures” means 26 the purchase of insulation materials, facings, and accessory 27 products used for thermal requirements for mechanical piping 28 and equipment, hot and cold applications, and heating, 29 ventilation, and air-conditioning applications. “Qualified 30 mechanical insulation expenditures” includes all associated 31 labor costs properly allocable to on-site preparation, 32 assembly, and original installation performed by a qualified 33 contractor. 34 2. Contingent on a specific appropriation for this purpose, 35 -1- LSB 6561YH (3) 91 nls/ko 1/ 2

H.F. 2573 the authority shall establish and administer a mechanical 1 insulation energy savings program for the purpose of providing 2 grants to applicants for qualified mechanical insulation 3 expenditures. 4 3. a. The authority shall a establish process by rule for 5 an applicant to request a qualified audit. If a request for 6 a qualified audit is approved by the authority, the applicant 7 shall receive a qualified audit at no cost. 8 b. After an applicant’s qualified audit is completed, the 9 authority shall award a grant to the applicant in an amount 10 equal to, and for the purpose of paying, the entire cost of the 11 applicant’s qualified mechanical insulation expenditures. 12 4. The authority shall adopt rules pursuant to chapter 17A 13 to administer this section. 14 EXPLANATION 15 The inclusion of this explanation does not constitute agreement with 16 the explanation’s substance by the members of the general assembly. 17 This bill relates to grants for qualified mechanical 18 insulation expenditures. 19 Contingent on a specific appropriation for this purpose, the 20 bill requires the economic development authority (authority) to 21 establish and administer a mechanical insulation energy savings 22 program for the purpose of providing grants to applicants 23 for qualified mechanical insulation expenditures. Under the 24 bill, the authority shall establish an audit process for an 25 applicant to request a qualified audit, and if the request is 26 approved, the applicant shall receive a qualified audit at no 27 cost. After an applicant’s qualified audit is completed, the 28 authority shall award a grant to the applicant in an amount 29 equal to, and for the purpose of paying, the entire cost of 30 the applicant’s qualified mechanical insulation expenditures. 31 “Applicant”, “mechanical insulation”, “qualified audit”, 32 “qualified contractor”, and “qualified mechanical insulation 33 expenditures” are defined in the bill. 34 The authority shall adopt rules to administer the bill. 35 -2- LSB 6561YH (3) 91 nls/ko 2/ 2