HF 2573 (LSB 6561YH (3) 91)

HOUSE FILE 2573

BY  GOSA

A BILL FOR

An Act relating to grants for qualified mechanical insulation expenditures.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:

    Section 1.  NEW SECTION.  15.232  Mechanical insulation energy savings program.
   1.  As used in this section, unless the context otherwise requires:
   a.  “Applicant” means a school district, public hospital, public housing building, or political subdivision with a building of at least twenty thousand square feet that may require mechanical insulation upgrades.
   b.  “Mechanical insulation” means insulation materials, facings, and accessory products used for thermal requirements for mechanical piping and equipment, hot and cold applications, heating, ventilation, and air-conditioning applications.
   c.  “Qualified audit” means a mechanical insulation audit of a building provided by a qualified contractor at no cost to the authority or an applicant, which identifies missing, damaged, or improperly installed mechanical insulation. A “qualified audit” includes an estimate of installation costs and estimated energy and cost savings.
   d.  “Qualified contractor” means an insulation contractor who has entered into an apprenticeship agreement as defined in section 84D.2, that is appropriate for the type and scope of work to be performed, including the ability to meet the American society of heating, refrigerating, and air-conditioning engineers energy standard for buildings except low-rise residential buildings.
   e.  “Qualified mechanical insulation expenditures” means the purchase of insulation materials, facings, and accessory products used for thermal requirements for mechanical piping and equipment, hot and cold applications, and heating, ventilation, and air-conditioning applications. “Qualified mechanical insulation expenditures” includes all associated labor costs properly allocable to on-site preparation, assembly, and original installation performed by a qualified contractor.
   2.  Contingent on a specific appropriation for this purpose, the authority shall establish and administer a mechanical insulation energy savings program for the purpose of providing grants to applicants for qualified mechanical insulation expenditures.
   3.  a.  The authority shall a establish process by rule for an applicant to request a qualified audit. If a request for a qualified audit is approved by the authority, the applicant shall receive a qualified audit at no cost.
   b.  After an applicant’s qualified audit is completed, the authority shall award a grant to the applicant in an amount equal to, and for the purpose of paying, the entire cost of the applicant’s qualified mechanical insulation expenditures.
   4.  The authority shall adopt rules pursuant to chapter 17A to administer this section.
EXPLANATION
The inclusion of this explanation does not constitute agreement with
the explanation’s substance by the members of the general assembly.
   This bill relates to grants for qualified mechanical insulation expenditures. 
   Contingent on a specific appropriation for this purpose, the bill requires the economic development authority (authority) to establish and administer a mechanical insulation energy savings program for the purpose of providing grants to applicants for qualified mechanical insulation expenditures. Under the bill, the authority shall establish an audit process for an applicant to request a qualified audit, and if the request is approved, the applicant shall receive a qualified audit at no cost. After an applicant’s qualified audit is completed, the authority shall award a grant to the applicant in an amount equal to, and for the purpose of paying, the entire cost of the applicant’s qualified mechanical insulation expenditures. “Applicant”, “mechanical insulation”, “qualified audit”, “qualified contractor”, and “qualified mechanical insulation expenditures” are defined in the bill.
   The authority shall adopt rules to administer the bill.