Senate File 471 - Reprinted
SENATE FILE
BY COMMITTEE ON APPROPRIATIONS
(SUCCESSOR TO SF 373)
(SUCCESSOR TO SSB 1262)
Passed Senate, Date Passed House, Date
Vote: Ayes Nays Vote: Ayes Nays
Approved
A BILL FOR
1 An Act relating to energy efficiency and renewable energy,
2 including allocating appropriated amounts from the Iowa power
3 fund to fund tax credits for innovative renewable energy
4 generation components, transferring authority over specified
5 energy=related measures and programs from the department of
6 natural resources to the office of energy independence,
7 providing transition provisions relating to the transfer of
8 authority, and providing an effective date.
9 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
10 SF 471
11 rn/nh/jh/26
PAG LIN
1 1 Section 1. Section 7D.34, subsection 2, paragraphs b and
1 2 c, Code 2009, are amended to read as follows:
1 3 b. Before a state agency seeks approval of the executive
1 4 council for leasing real or personal properties or facilities
1 5 for use as or in connection with any energy conservation
1 6 measure, the state agency shall have a comprehensive
1 7 engineering analysis done on a building in which it seeks to
1 8 improve the energy efficiency by an engineering firm approved
1 9 by the department of natural resources office of energy
1 10 independence through a competitive selection process and the
1 11 engineering firm is subject to approval of the executive
1 12 council. Provisions of this section shall only apply to
1 13 energy conservation measures identified in the comprehensive
1 14 engineering analysis.
1 15 c. Before the executive council gives its approval for a
1 16 state agency to lease real and personal properties or
1 17 facilities for use as or in connection with any energy
1 18 conservation measure, the executive council shall in
1 19 conjunction with the department of natural resources office of
1 20 energy independence and after review of the engineering
1 21 analysis submitted by the state agency make a determination
1 22 that the properties or facilities will result in energy cost
1 23 savings to the state in an amount that results in the state
1 24 recovering the cost of the properties or facilities within six
1 25 years after the initial acquisition of the properties or
1 26 facilities.
1 27 Sec. 2. Section 7D.35, Code 2009, is amended to read as
1 28 follows:
1 29 7D.35 DISPUTE RESOLUTION.
1 30 The executive council shall resolve any disputes
1 31 transmitted to it by the department of natural resources
1 32 office of energy independence, the state building code
1 33 commissioner, or both, arising under section 470.7.
1 34 Sec. 3. Section 7E.5, subsection 1, paragraph q, Code
1 35 2009, is amended to read as follows:
2 1 q. The department of natural resources, created in section
2 2 455A.2, which has primary responsibility for state parks and
2 3 forests, protecting the environment, and managing energy,
2 4 fish, wildlife, and land and water resources.
2 5 Sec. 4. Section 8A.362, subsection 4, paragraph c, Code
2 6 2009, is amended to read as follows:
2 7 c. Not later than June 15 of each year, the director shall
2 8 report compliance with the corporate average fuel economy
2 9 standards published by the United States secretary of
2 10 transportation for new motor vehicles, other than motor
2 11 vehicles purchased by the state department of transportation,
2 12 institutions under the control of the state board of regents,
2 13 the department for the blind, and any other state agency
2 14 exempted from the requirements of this subsection. The report
2 15 of compliance shall classify the vehicles purchased for the
2 16 current vehicle model year using the following categories:
2 17 passenger automobiles, enforcement automobiles, vans, and
2 18 light trucks. The director shall deliver a copy of the report
2 19 to the department of natural resources office of energy
2 20 independence. As used in this paragraph, "corporate average
2 21 fuel economy" means the corporate average fuel economy as
2 22 defined in 49 C.F.R. } 533.5.
2 23 Sec. 5. Section 72.5, subsection 2, Code 2009, is amended
2 24 to read as follows:
2 25 2. The director of the department of natural resources
2 26 office of energy independence in consultation with the
2 27 department of management, state building code commissioner,
2 28 and state fire marshal, shall develop standards and methods to
2 29 evaluate design development documents and construction
2 30 documents based upon life cycle cost factors to facilitate
2 31 fair and uniform comparisons between design proposals and
2 32 informed decision making by public bodies.
2 33 Sec. 6. Section 103A.8, subsection 7, Code 2009, is
2 34 amended to read as follows:
2 35 7. Limit the application of thermal efficiency standards
3 1 for energy conservation to construction of buildings which are
3 2 heated or cooled. Air exchange fans designed to provide
3 3 ventilation shall not be considered a cooling system. The
3 4 commissioner shall exempt any construction from any thermal
3 5 efficiency standard for energy conservation if the
3 6 commissioner determines that the standard is unreasonable as
3 7 it would apply to a particular building or class of buildings.
3 8 No standard adopted by the commissioner for energy
3 9 conservation in construction shall be interpreted to require
3 10 the replacement or modification of any existing equipment or
3 11 feature solely to ensure compliance with requirements for
3 12 energy conservation in construction. Lighting efficiency
3 13 standards shall recognize variations in lighting intensities
3 14 required for the various tasks performed within the building.
3 15 The commissioner shall consult with the department of natural
3 16 resources office of energy independence regarding standards
3 17 for energy conservation prior to the adoption of the
3 18 standards. However, the standards shall be consistent with
3 19 section 103A.8A.
3 20 Sec. 7. Section 103A.27, subsection 4, Code 2009, is
3 21 amended to read as follows:
3 22 4. The commission shall be formed for the two=year period
3 23 beginning July 1, 2008, and ending June 30, 2010, and shall
3 24 submit a report to the governor and the general assembly by
3 25 January 1, 2011, regarding its activities and recommendations.
3 26 Administrative support shall be furnished by the department of
3 27 public safety, with the assistance of the office of energy
3 28 independence and the department of natural resources.
3 29 Sec. 8. Section 159A.3, subsection 4, Code 2009, is
3 30 amended to read as follows:
3 31 4. The office and state entities, including the
3 32 department, the committee, the Iowa department of economic
3 33 development, the state department of transportation, the
3 34 department of natural resources office of energy independence,
3 35 and the state board of regents institutions, shall cooperate
4 1 to implement this section.
4 2 Sec. 9. Section 159A.4, subsection 1, paragraph d, Code
4 3 2009, is amended to read as follows:
4 4 d. The director of the department of natural resources
4 5 office of energy independence, or a person designated by the
4 6 director, representing the department of natural resources
4 7 office of energy independence.
4 8 Sec. 10. Section 159A.4, subsection 1, unnumbered
4 9 paragraph 2, Code 2009, is amended to read as follows:
4 10 The governor shall appoint persons who shall be confirmed
4 11 by the senate, pursuant to section 2.32, to serve as voting
4 12 members of the committee. However, the secretary of
4 13 agriculture shall appoint the person representing the
4 14 department of agriculture and land stewardship, the director
4 15 of the Iowa department of economic development shall appoint
4 16 the person representing that department, the director of the
4 17 state department of transportation shall appoint the person
4 18 representing that department, and the director of the
4 19 department of natural resources office of energy independence
4 20 shall appoint the person representing that department the
4 21 office. The governor may make appointments of persons
4 22 representing organizations listed under paragraphs "g" through
4 23 "i" from a list of candidates which shall be provided by the
4 24 organization upon request by the governor.
4 25 Sec. 11. Section 159A.6B, unnumbered paragraph 2, Code
4 26 2009, is amended to read as follows:
4 27 The office may execute contracts in order to provide
4 28 technical support and outreach services for purposes of
4 29 assisting and educating interested persons as provided in this
4 30 section. The office may also contract with a consultant to
4 31 provide part or all of these services. The office may require
4 32 that a person receiving assistance pursuant to this section
4 33 contribute up to fifty percent of the amount required to
4 34 support the costs of contracting with the consultant to
4 35 provide assistance to the person. The office shall assist the
5 1 person in completing any technical information required in
5 2 order to receive assistance by the department of economic
5 3 development pursuant to the value=added agricultural products
5 4 and processes financial assistance program created pursuant to
5 5 section 15E.111. The office shall cooperate with the
5 6 department of economic development, the department of natural
5 7 resources office of energy independence, and regents
5 8 institutions or other universities and colleges as provided in
5 9 section 15E.111, in order to carry out this section.
5 10 Sec. 12. Section 266.39C, subsection 2, paragraph a,
5 11 subparagraph (6), Code 2009, is amended to read as follows:
5 12 (6) One representative of the department of natural
5 13 resources office of energy independence, appointed by the
5 14 director.
5 15 Sec. 13. Section 272C.2, subsection 3, Code 2009, is
5 16 amended to read as follows:
5 17 3. The state board of engineering and land surveyors, the
5 18 board of architectural examiners, the board of landscape
5 19 architectural examiners, and the department of natural
5 20 resources office of energy independence shall cooperate with
5 21 each other and with persons who typically offer continuing
5 22 education courses for design professionals to make available
5 23 energy efficiency related continuing education courses, and to
5 24 encourage interdisciplinary cooperation and education
5 25 concerning available energy efficiency strategies for
5 26 employment in the state's construction industry.
5 27 Sec. 14. Section 279.44, unnumbered paragraph 1, Code
5 28 2009, is amended to read as follows:
5 29 Between July 1, 1986 and June 30, 1991, and on a staggered
5 30 annual basis each five years thereafter, the board of
5 31 directors of each school district shall file with the
5 32 department of natural resources office of energy independence,
5 33 on forms prescribed by the department of natural resources
5 34 office, the results of an energy audit of the buildings owned
5 35 and leased by the school district. The energy audit shall be
6 1 conducted under rules adopted by the department of natural
6 2 resources office pursuant to chapter 17A. The department of
6 3 natural resources office may waive the requirement for the
6 4 initial and subsequent energy audits for school districts that
6 5 submit evidence that energy audits were conducted prior to
6 6 January 1, 1987 and energy consumption for the district is at
6 7 an adjusted statewide average or below.
6 8 Sec. 15. Section 323A.2, subsection 1, paragraph c, Code
6 9 2009, is amended to read as follows:
6 10 c. The director of the department of natural resources
6 11 office of energy independence determines that the franchisee
6 12 has demonstrated that a special hardship exists in the
6 13 community served by the franchisee relating to the public
6 14 health, safety, and welfare, as specified under the rules of
6 15 the department of natural resources office.
6 16 Sec. 16. Section 441.21, subsection 8, paragraph c,
6 17 subparagraph (2), unnumbered paragraph 2, Code 2009, is
6 18 amended to read as follows:
6 19 In assessing and valuing the property for tax purposes, the
6 20 assessor shall disregard any market value added by a solar
6 21 energy system to a building. The director of revenue shall
6 22 adopt rules, after consultation with the department of natural
6 23 resources office of energy independence, specifying the types
6 24 of equipment and structural components to be included under
6 25 the guidelines provided in this subsection.
6 26 Sec. 17. Section 455A.2, Code 2009, is amended to read as
6 27 follows:
6 28 455A.2 DEPARTMENT OF NATURAL RESOURCES.
6 29 A department of natural resources is created, which has the
6 30 primary responsibility for state parks and forests, protecting
6 31 the environment, and managing energy, fish, wildlife, and land
6 32 and water resources in this state.
6 33 Sec. 18. Section 469.1, subsection 4, Code 2009, is
6 34 amended to read as follows:
6 35 4. "Foreign" means a locality outside of or nation other
7 1 than the United States, Canada, or Mexico.
7 2 Sec. 19. Section 469.3, subsection 2, Code 2009, is
7 3 amended to read as follows:
7 4 2. The director shall do all of the following:
7 5 a. Direct the office of energy independence.
7 6 b. Coordinate the administration of the Iowa power fund.
7 7 c. Lead outreach and public education efforts concerning
7 8 renewable energy, renewable fuels, and energy efficiency.
7 9 d. Pursue new research and investment funds from federal
7 10 and private sources.
7 11 e. Coordinate and monitor all existing state and federal
7 12 renewable energy, renewable fuels, and energy efficiency
7 13 grants, programs, and policy.
7 14 f. Advise the governor and general assembly concerning
7 15 renewable energy, renewable fuels, and energy efficiency
7 16 policy and legislation.
7 17 g. Establish performance measures for determining
7 18 effectiveness of renewable energy, renewable fuels, and energy
7 19 efficiency efforts.
7 20 h. Contract for and utilize assistance from the department
7 21 of economic development regarding administration of grants,
7 22 loans, and other financial incentives related to section
7 23 469.9, subsection 4, paragraph "a", subparagraph (1), the
7 24 department of natural resources and the utilities board
7 25 regarding assistance in the administration of grants, loans,
7 26 and other financial incentives related to section 469.9,
7 27 subsection 4, paragraph "a", subparagraph (2), and other state
7 28 agencies as appropriate.
7 29 i. Develop an Iowa energy independence plan pursuant to
7 30 section 469.4.
7 31 j. Assist Iowa businesses in creating jobs involving
7 32 energy efficiency and renewable energy, especially through the
7 33 use of funds from the American Recovery and Reinvestment Act
7 34 of 2009, Pub. L. No. 111=5, and other state and federal funds
7 35 available to the office and the board.
8 1 k. Approve engineering firms for performance of
8 2 comprehensive engineering analyses done on buildings in which
8 3 a state agency seeks to improve energy efficiency pursuant to
8 4 section 7D.34.
8 5 l. Develop standards and methods to evaluate design
8 6 development and construction documents based on life cycle
8 7 cost factors in relation to design proposals submitted
8 8 pursuant to section 72.5.
8 9 m. Coordinate with other state agencies regarding
8 10 implementation of the office of renewable fuels and coproducts
8 11 pursuant to section 159A.3, serve on the renewable fuels and
8 12 coproducts advisory committee, and assist in providing
8 13 technical assistance to new or existing renewable fuel
8 14 production facilities.
8 15 n. Appoint a representative to serve on the Iowa energy
8 16 center advisory council established in section 266.39C.
8 17 o. Make available energy efficiency related continuing
8 18 education courses pursuant to section 272C.2.
8 19 p. Receive results relating to energy audits from school
8 20 districts and perform related functions pursuant to section
8 21 279.44.
8 22 q. Determine whether special hardship criteria has been
8 23 demonstrated regarding franchise alternative fuel purchases
8 24 pursuant to section 323A.2.
8 25 r. Consult with the state building code commissioner
8 26 regarding submissions of life cycle cost analyses pursuant to
8 27 section 470.7.
8 28 s. Compile energy=related information, administer and
8 29 coordinate the state building energy management program, and
8 30 perform additional responsibilities specified in section
8 31 473.7.
8 32 t. Transmit by resolution to the governor a determination
8 33 of actual or impending acute usable energy shortage pursuant
8 34 to section 473.8.
8 35 u. Operate a liquid fossil fuel set=aside program as
9 1 required in section 473.10.
9 2 v. Administer the building energy management program, the
9 3 building energy management fund, and the energy loan program
9 4 established in sections 473.19, 473.19A, and 473.20,
9 5 respectively, and ensure compliance with energy audit and
9 6 engineering analysis requirements specified in section
9 7 473.13A.
9 8 w. Coordinate the energy city designation program created
9 9 in section 473.41.
9 10 j. x. Submit an annual report to the governor and general
9 11 assembly by November 1 of each year concerning the activities
9 12 and programs of the office, Iowa power fund, and other
9 13 departments related to renewable energy, renewable fuels, and
9 14 energy efficiency. The report shall include an assessment of
9 15 needs with respect to renewable energy, renewable fuels, and
9 16 energy efficiency efforts and policy and fiscal
9 17 recommendations for renewable energy, renewable fuels, and
9 18 energy efficiency. In addition, the director shall review
9 19 issues relating to the transportation of biofuels and explore
9 20 leading and participating in multistate efforts relating to
9 21 renewable energy and energy efficiency.
9 22 k. y. Adopt rules pursuant to chapter 17A concerning the
9 23 office, the Iowa power fund, and the programs and functions of
9 24 the office and the fund.
9 25 Sec. 20. Section 469.4, subsection 1, Code 2009, is
9 26 amended to read as follows:
9 27 1. The director shall develop an Iowa energy independence
9 28 plan with the assistance of the department of natural
9 29 resources as provided in section 473.7, and in association
9 30 with public and private partners selected by the director
9 31 including representatives of the energy industry,
9 32 environmental interests, agricultural interests, business
9 33 interests, other interested parties, and members of the
9 34 general public. The plan shall be subject to approval by the
9 35 board.
10 1 Sec. 21. Section 469.9, subsection 4, paragraph b, Code
10 2 2009, is amended by adding the following new subparagraph:
10 3 NEW SUBPARAGRAPH. (5) The number and quality of jobs
10 4 likely to be created.
10 5 Sec. 22. Section 469.10, subsection 2, Code 2009, is
10 6 amended to read as follows:
10 7 2. a. Of the moneys appropriated to the office and
10 8 deposited in the fund, the office shall utilize up to three
10 9 and five=tenths percent of the amount appropriated from the
10 10 fund for a fiscal year for administrative costs.
10 11 b. From the funds available for administrative costs, the
10 12 office shall not employ more than four full=time equivalent
10 13 positions. The director may use federal funds received by the
10 14 office pursuant to the federal American Recovery and
10 15 Reinvestment Act of 2009, Pub. L. No. 111=5, to employ the
10 16 number of full=time employees necessary to administer the
10 17 funds received pursuant to the federal Act. The director
10 18 shall minimize the costs of administering the funds received
10 19 pursuant to the federal Act, and shall not expend annually
10 20 more than five percent of the federal funds received for
10 21 purposes of administering the federal funds. If federal
10 22 funding pursuant to the Act is eliminated, the federally
10 23 funded positions shall be eliminated according to the
10 24 provisions of section 8A.413, unless another source of federal
10 25 funding is available. The director may use federal funds
10 26 received other than pursuant to the federal Act to employ
10 27 personnel necessary to administer any other program or funds
10 28 assigned to the office.
10 29 Sec. 23. Section 469.10, Code 2009, is amended by adding
10 30 the following new subsection:
10 31 NEW SUBSECTION. 4A. Of the moneys appropriated to the
10 32 office and deposited in the fund, notwithstanding section
10 33 469.9, subsection 4, the director may allocate up to one
10 34 million dollars annually to the department of economic
10 35 development for the purpose of funding the research activities
11 1 credit relating to innovative renewable energy generation
11 2 components pursuant to section 15.335.
11 3 Sec. 24. Section 470.1, Code 2009, is amended to read as
11 4 follows:
11 5 470.1 DEFINITIONS.
11 6 As used in this chapter unless the context otherwise
11 7 requires:
11 8 1. "Commissioner" means the state building code
11 9 commissioner.
11 10 2. "Department" means the department of natural resources.
11 11 3. 2. "Director" means the director of the department of
11 12 natural resources office of energy independence.
11 13 4. 3. "Economic life" means the projected or anticipated
11 14 useful life of a facility as expressed by a term of years.
11 15 5. 4. "Energy system" includes but is not limited to the
11 16 following equipment or measures:
11 17 a. Equipment used to heat or cool the facility.
11 18 b. Equipment used to heat water in the facility.
11 19 c. On=site equipment used to generate electricity for the
11 20 major facility.
11 21 d. On=site equipment that uses the sun, wind, oil, natural
11 22 gas, coal or electricity as a power source.
11 23 e. Energy conservation measures in the facility design and
11 24 construction that decrease the energy requirements of the
11 25 facility.
11 26 6. 5. "Facility" means a building having twenty thousand
11 27 square feet or more of usable floor space that is heated or
11 28 cooled by a mechanical or electrical system or any building,
11 29 system, or physical operation which consumes more than forty
11 30 thousand British thermal units (BTUs) per square foot per
11 31 year.
11 32 7. 6. "Initial cost" means the moneys required for the
11 33 capital construction or renovation of a facility.
11 34 8. 7. "Life cycle cost analysis" means an analytical
11 35 technique that considers certain costs of owning, using and
12 1 operating a facility over its economic life including but not
12 2 limited to the following:
12 3 a. Initial costs.
12 4 b. System repair and replacement costs.
12 5 c. Maintenance costs.
12 6 d. Operating costs, including energy costs.
12 7 e. Salvage value.
12 8 8. "Office" means the office of energy independence
12 9 established in section 469.2.
12 10 9. "Public agency" means a state agency, political
12 11 subdivision of the state, school district, area education
12 12 agency, or community college.
12 13 10. "Renovation" means a project where additions or
12 14 alterations exceed fifty percent of the value of a facility
12 15 and will affect an energy system.
12 16 Sec. 25. Section 470.3, subsection 2, Code 2009, is
12 17 amended to read as follows:
12 18 2. A public agency or a person preparing a life cycle cost
12 19 analysis for a public agency shall consider the methods and
12 20 analytical models provided by the department office and
12 21 available through the commissioner, which are suited to the
12 22 purpose for which the project is intended. Within sixty days
12 23 of final selection of a design architect or engineer, a public
12 24 agency, which is also a state agency under section 7D.34,
12 25 shall notify the commissioner and the department office of the
12 26 methodology to be used to perform the life cycle cost
12 27 analysis, on forms provided by the department office.
12 28 Sec. 26. Section 470.7, Code 2009, is amended to read as
12 29 follows:
12 30 470.7 LIFE CYCLE COST ANALYSIS == APPROVAL.
12 31 1. The public agency responsible for the new construction
12 32 or renovation of a public facility shall submit a copy of the
12 33 life cycle cost analysis for review by the commissioner who
12 34 shall consult with the department office. If the public
12 35 agency is also a state agency under section 7D.34, comments by
13 1 the department office or the commissioner, including any
13 2 recommendation for changes in the analysis, shall, within
13 3 thirty days of receipt of the analysis, be forwarded in
13 4 writing to the public agency. If either the department office
13 5 or the commissioner disagrees with any aspects of the life
13 6 cycle cost analysis, the public agency affected shall timely
13 7 respond in writing to the commissioner and the department
13 8 office. The response shall indicate whether the agency
13 9 intends to implement the recommendations and, if the agency
13 10 does not intend to implement them, the public agency shall
13 11 present its reasons. The reasons may include, but are not
13 12 limited to, a description of the purpose of the facility or
13 13 renovation, preservation of historical architectural features,
13 14 architectural and site considerations, and health and safety
13 15 concerns.
13 16 2. Within thirty days of receipt of the response of the
13 17 public agency affected, the department office, the
13 18 commissioner, or both, shall notify in writing the public
13 19 agency affected of the department's office's, the
13 20 commissioner's, or both's agreement or disagreement with the
13 21 response. In the event of a disagreement, the department
13 22 office, the commissioner, or both, shall at the same time
13 23 transmit the notification of disagreement with response and
13 24 related papers to the executive council for resolution
13 25 pursuant to section 7D.34. The life cycle cost analysis
13 26 process, including submittal and approval, and implementation
13 27 exemption requests pursuant to section 470.8, shall be
13 28 completed prior to the letting of contracts for the
13 29 construction or renovation of a facility.
13 30 Sec. 27. Section 473.1, Code 2009, is amended to read as
13 31 follows:
13 32 473.1 DEFINITIONS.
13 33 As used in this chapter, unless the context otherwise
13 34 requires:
13 35 1. "Alternative and renewable energy" means the same as in
14 1 section 469.31.
14 2 2. "Commission" means the environmental protection
14 3 commission of the department of natural resources.
14 4 3. "Department" means the department of natural resources
14 5 created under section 455A.2.
14 6 4. 3. "Director" means the director of the department
14 7 office or a designee.
14 8 5. 4. "Energy" or "energy sources" means gasoline, fuel
14 9 oil, natural gas, propane, coal, special fuels and
14 10 electricity.
14 11 5. "Office" means the office of energy independence
14 12 established in section 469.2.
14 13 6. "Renewable fuel" means the same as in section 469.31.
14 14 7. "Supplier" means any person engaged in the business of
14 15 selling, importing, storing, or generating energy sources,
14 16 alternative and renewable energy, or renewable fuel in Iowa.
14 17 Sec. 28. Section 473.7, Code 2009, is amended to read as
14 18 follows:
14 19 473.7 DUTIES OF THE DEPARTMENT OFFICE.
14 20 The department office shall:
14 21 1. Assist the director of the office of energy
14 22 independence with preparation of the Iowa energy independence
14 23 plan as provided in section 469.4. In addition to assistance
14 24 requested by the director, the department shall supply Supply
14 25 and annually update the following information:
14 26 a. The historical use and distribution of energy in Iowa.
14 27 b. The growth rate of energy consumption in Iowa,
14 28 including rates of growth for each energy source.
14 29 c. A projection of Iowa's energy needs at a minimum
14 30 through the year 2025.
14 31 d. The impact of meeting Iowa's energy needs on the
14 32 economy of the state, including the impact of energy
14 33 efficiency and renewable energy on employment and economic
14 34 development.
14 35 e. The impact of meeting Iowa's energy needs on the
15 1 environment of the state, including the impact of energy
15 2 production and use on greenhouse gas emissions.
15 3 f. An evaluation of renewable energy sources, including
15 4 the current and future technological potential for such
15 5 sources.
15 6 2. a. The department office shall collect and analyze
15 7 data to use in forecasting future energy demand and supply for
15 8 the state. A supplier is required to provide information
15 9 pertaining to the supply, storage, distribution, and sale of
15 10 energy sources in this state when requested by the department
15 11 office. The information shall be of a nature which directly
15 12 relates to the supply, storage, distribution, and sale of
15 13 energy sources, and shall not include any records, documents,
15 14 books, or other data which relate to the financial position of
15 15 the supplier. The department office, prior to requiring any
15 16 supplier to furnish it with such information, shall make every
15 17 reasonable effort to determine if such information is
15 18 available from any other governmental source. If it finds
15 19 such information is available, the department office shall not
15 20 require submission of the information from a supplier.
15 21 Notwithstanding the provisions of chapter 22, information and
15 22 reports obtained under this section shall be confidential
15 23 except when used for statistical purposes without identifying
15 24 a specific supplier and when release of the information will
15 25 not give an advantage to competitors and serves a public
15 26 purpose. The department office shall use this data to conduct
15 27 energy forecasts.
15 28 b. The department may subpoena witnesses, administer
15 29 oaths, and require the production of records, books, and
15 30 documents for examination in order to obtain information
15 31 required to be submitted under this section. In case of
15 32 failure or refusal on the part of any person to comply with a
15 33 subpoena issued by the department, or in case of the refusal
15 34 of any witness to testify as to any matter regarding which the
15 35 witness may be interrogated under this chapter, the district
16 1 court, upon the application of the department, may order the
16 2 person to show cause why the person should not be held in
16 3 contempt for failure to testify or comply with a subpoena, and
16 4 may order the person to produce the records, books, and
16 5 documents for examination, and to give testimony. The courts
16 6 may punish for contempt as in the case of disobedience to a
16 7 like subpoena issued by the court, or for refusal to testify.
16 8 3. Develop, recommend, and implement with appropriate
16 9 agencies public and professional education and communication
16 10 programs in energy efficiency, energy conservation, and
16 11 conversion to alternative and renewable energy.
16 12 4. When necessary to carry out its duties under this
16 13 chapter, enter into contracts with state agencies and other
16 14 qualified contractors.
16 15 5. Receive and accept grants made available for programs
16 16 relating to duties of the department office under this
16 17 chapter.
16 18 6. Promulgate rules necessary to carry out the provisions
16 19 of this chapter, subject to review in accordance with chapter
16 20 17A. Rules promulgated by the governor pursuant to a
16 21 proclamation issued under the provisions of section 473.8
16 22 shall not be subject to review or a public hearing as required
16 23 in chapter 17A; however, agency office rules for
16 24 implementation of the governor's proclamation are subject to
16 25 the requirements of chapter 17A.
16 26 7. Examine and determine whether additional state
16 27 regulatory authority is necessary to protect the public
16 28 interest and to promote the effective development, utilization
16 29 and conservation of energy resources. If the department finds
16 30 that additional regulatory authority is necessary, the
16 31 department shall submit recommendations to the general
16 32 assembly concerning the nature and extent of such regulatory
16 33 authority and which state agency should be assigned such
16 34 regulatory responsibilities.
16 35 8. 7. Develop and assist Assist in the implementation of
17 1 public education and communications programs in energy
17 2 development, use and conservation, in cooperation with the
17 3 department of education, the state university extension
17 4 services and other public or private agencies and
17 5 organizations as deemed appropriate by the department office.
17 6 9. 8. Develop, in coordination with the office of energy
17 7 independence, a program to annually give public recognition to
17 8 innovative methods of energy conservation, energy management,
17 9 and alternative and renewable energy production.
17 10 10. 9. Administer and coordinate, in coordination with
17 11 the office of energy independence, federal funds for energy
17 12 conservation, energy management, and alternative and renewable
17 13 energy programs.
17 14 11. 10. Administer and coordinate the state building
17 15 energy management program including projects funded through
17 16 private financing.
17 17 12. 11. Provide information from monthly fuel surveys
17 18 which establish a statistical average of motor fuel prices for
17 19 various motor fuels provided throughout the state.
17 20 Additionally, the department office shall provide statewide
17 21 monthly fuel survey information which establishes a
17 22 statistical average of motor fuel prices for various motor
17 23 fuels provided in both metropolitan and rural areas of the
17 24 state. The survey results shall be publicized in a monthly
17 25 press release issued by the department office.
17 26 13. Conduct a study on activities related to energy
17 27 production and use which contribute to global climate change
17 28 and the depletion of the stratospheric ozone layer. The study
17 29 shall identify the types and relative contributions of these
17 30 activities in Iowa. The department shall develop a strategy
17 31 to reduce emissions from activities identified as having an
17 32 adverse impact on the global climate and the stratospheric
17 33 ozone layer. The department shall submit a report containing
17 34 its findings and recommendations to the governor and general
17 35 assembly by January 1, 1992.
18 1 Sec. 29. Section 473.8, unnumbered paragraph 1, Code 2009,
18 2 is amended to read as follows:
18 3 If the department office by resolution determines the
18 4 health, safety, or welfare of the people of this state is
18 5 threatened by an actual or impending acute shortage of usable
18 6 energy, it shall transmit the resolution to the governor
18 7 together with its recommendation on the declaration of an
18 8 emergency by the governor and recommended actions, if any, to
18 9 be undertaken. Within thirty days of the date of the
18 10 resolution, the governor may issue a proclamation of emergency
18 11 which shall be filed with the secretary of state. The
18 12 proclamation shall state the facts relied upon and the reasons
18 13 for the proclamation.
18 14 Sec. 30. Section 473.8, subsection 4, Code 2009, is
18 15 amended to read as follows:
18 16 4. Delegate any administrative authority vested in the
18 17 governor to the department office or the director.
18 18 Sec. 31. Section 473.10, Code 2009, is amended to read as
18 19 follows:
18 20 473.10 RESERVE REQUIRED.
18 21 1. If the department office or the governor finds that an
18 22 impending or actual shortage or distribution imbalance of
18 23 liquid fossil fuels may cause hardship or pose a threat to the
18 24 health and economic well=being of the people of the state or a
18 25 significant segment of the state's population, the department
18 26 office or the governor may authorize the director to operate a
18 27 liquid fossil fuel set=aside program as provided in subsection
18 28 2.
18 29 2. Upon authorization by the department office or the
18 30 governor the director may require a prime supplier to reserve
18 31 a specified fraction of the prime supplier's projected total
18 32 monthly release of liquid fossil fuel in Iowa. The director
18 33 may release any or all of the fuel required to be reserved by
18 34 a prime supplier to end=users or to distributors for release
18 35 through normal retail distribution channels to retail
19 1 customers. However, the specified fraction required to be
19 2 reserved shall not exceed three percent for propane, aviation
19 3 fuel and residual oil, and five percent for motor gasoline,
19 4 heating oil, and diesel oil.
19 5 3. The department office shall periodically review and may
19 6 terminate the operation of a set=aside program authorized by
19 7 the department office under subsection 1 when the department
19 8 office finds that the conditions that prompted the
19 9 authorization no longer exist. The governor shall
19 10 periodically review and may terminate the operation of a
19 11 set=aside program authorized by the governor under subsection
19 12 1 when the governor finds that the conditions that prompted
19 13 the authorization no longer exist.
19 14 4. The director shall adopt rules to implement this
19 15 section.
19 16 Sec. 32. Section 473.13A, Code 2009, is amended to read as
19 17 follows:
19 18 473.13A ENERGY CONSERVATION MEASURES MANAGEMENT
19 19 IMPROVEMENTS IDENTIFIED AND IMPLEMENTED.
19 20 The state, state agencies, political subdivisions of the
19 21 state, school districts, area education agencies, and
19 22 community colleges shall identify and implement, through
19 23 energy audits and engineering analyses, all energy
19 24 conservation measures management improvements identified for
19 25 which financing is made available facilitated by the
19 26 department to office for the entity. The energy conservation
19 27 measure management improvement financings shall be supported
19 28 through payments from energy savings.
19 29 The department shall not require a school district,
19 30 community college, area education agency, city, or county to
19 31 perform an engineering analysis if the school district,
19 32 community college, area education agency, city, or county
19 33 demonstrates to the department that the facility which is the
19 34 subject of the proposed engineering analysis at issue is
19 35 unlikely to be in use or operation in six years by the
20 1 governmental entity currently using or occupying the facility.
20 2 Sec. 33. Section 473.15, Code 2009, is amended to read as
20 3 follows:
20 4 473.15 ANNUAL REPORT.
20 5 The department office shall complete an annual report to
20 6 assess the progress of state agencies in implementing energy
20 7 management improvements, alternative and renewable energy
20 8 systems, and life cycle cost analyses under chapter 470, and
20 9 on the use of renewable fuels. The department office shall
20 10 work with state agencies and with any entity, agency, or
20 11 organization with which they are associated or involved in
20 12 such implementation, to use available information to minimize
20 13 the cost of preparing the report. The department office shall
20 14 also provide an assessment of the economic and environmental
20 15 impact of the progress made by state agencies related to
20 16 energy management and alternative and renewable energy, along
20 17 with recommendations on technological opportunities and
20 18 policies necessary for continued improvement in these areas.
20 19 Sec. 34. Section 473.19, Code 2009, is amended to read as
20 20 follows:
20 21 473.19 ENERGY BANK BUILDING ENERGY MANAGEMENT PROGRAM.
20 22 1. The building energy bank management program is
20 23 established by the department office. The building energy
20 24 bank management program consists of the following forms of
20 25 assistance for the state, state agencies, political
20 26 subdivisions of the state, school districts, area education
20 27 agencies, community colleges, and nonprofit organizations:
20 28 a. Promoting program availability.
20 29 b. Developing or identifying guidelines and model energy
20 30 techniques for the completion of energy analyses for state
20 31 agencies, political subdivisions of the state, school
20 32 districts, area education agencies, community colleges, and
20 33 nonprofit organizations.
20 34 c. Providing technical assistance for conducting or
20 35 evaluating energy analyses for state agencies, political
21 1 subdivisions of the state, school districts, area education
21 2 agencies, community colleges, and nonprofit organizations.
21 3 d. Providing or facilitating loans, leases, and other
21 4 methods of alternative financing under the energy loan program
21 5 for the state, state agencies, political subdivisions of the
21 6 state, school districts, area education agencies, community
21 7 colleges, and nonprofit organizations to implement energy
21 8 management improvements or energy analyses.
21 9 e. Providing assistance for obtaining insurance on the
21 10 energy savings expected to be realized from the implementation
21 11 of energy management improvements.
21 12 f. Facilitating self=liquidating financing for the state,
21 13 state agencies, political subdivisions of the state, school
21 14 districts, area education agencies, community colleges, and
21 15 nonprofit organizations pursuant to section 473.20A.
21 16 g. Assisting the treasurer of state with financing
21 17 agreements entered into by the treasurer of state on behalf of
21 18 state agencies to finance energy management improvements
21 19 pursuant to section 12.28.
21 20 2. For the purpose of this section, section 473.20, and
21 21 section 473.20A, "energy management improvement" means
21 22 construction, rehabilitation, acquisition, or modification of
21 23 an installation in a facility or vehicle which is intended to
21 24 reduce energy consumption, or energy costs, or both, or allow
21 25 the use of alternative and renewable energy. "Energy
21 26 management improvement" may include control and measurement
21 27 devices. "Nonprofit organization" means an organization
21 28 exempt from federal income taxation under section 501(c)(3) of
21 29 the Internal Revenue Code.
21 30 3. The department office shall submit a report by January
21 31 1 annually to the governor and the general assembly detailing
21 32 services provided and assistance rendered pursuant to the
21 33 building energy bank management program and pursuant to
21 34 sections 473.20 and 473.20A, and receipts and disbursements in
21 35 relation to the building energy bank management fund created
22 1 in section 473.19A.
22 2 4. Moneys awarded or allocated to the state, its citizens,
22 3 or its political subdivisions as a result of the federal court
22 4 decisions and United States department of energy settlements
22 5 resulting from alleged violations of federal petroleum pricing
22 6 regulations attributable to or contained within the Stripper
22 7 Well fund shall be allocated to and remain under the control
22 8 of the department office for utilization for energy
22 9 program=related staff support purposes.
22 10 Sec. 35. Section 473.19A, Code 2009, is amended to read as
22 11 follows:
22 12 473.19A BUILDING ENERGY BANK MANAGEMENT FUND.
22 13 1. The building energy bank management fund is created
22 14 within the state treasury under the control of the department,
22 15 in collaboration with the office of energy independence
22 16 established in section 469.2 office. The fund shall be used
22 17 for the operational expenses and administrative costs incurred
22 18 by the department office in facilitating and administering the
22 19 building energy bank management program established in section
22 20 473.19.
22 21 2. The building energy bank management fund shall consist
22 22 of amounts deposited into the fund or allocated from the
22 23 following sources:
22 24 a. Any moneys awarded or allocated to the state, its
22 25 citizens, or its political subdivisions as a result of the
22 26 federal court decisions and United States department of energy
22 27 settlements resulting from alleged violations of federal
22 28 petroleum pricing regulations attributable to or contained
22 29 within the Exxon fund. Amounts remaining in the oil
22 30 overcharge account established in section 455E.11, subsection
22 31 2, paragraph "e", Code 2007, and the energy conservation trust
22 32 established in section 473.11, Code 2007, as of June 30, 2008,
22 33 shall be deposited into the building energy bank management
22 34 fund pursuant to this paragraph, notwithstanding section 8.60,
22 35 subsection 15, Code 2007.
23 1 b. (1) Moneys received in the form of fees imposed upon
23 2 the state, state agencies, political subdivisions of the
23 3 state, school districts, area education agencies, community
23 4 colleges, and nonprofit organizations for services performed
23 5 or assistance rendered pursuant to the building energy bank
23 6 management program. Fees imposed pursuant to this paragraph
23 7 shall be established by the department office in an amount
23 8 corresponding to the operational expenses or administrative
23 9 costs incurred by the department office in performing services
23 10 or providing assistance authorized pursuant to the building
23 11 energy bank management program, as follows:
23 12 (a) For a building of up to twenty=five thousand square
23 13 feet, two thousand five hundred dollars.
23 14 (b) For a building in excess of twenty=five thousand
23 15 square feet, an additional eight cents per square foot.
23 16 (c) A building that houses more energy intensive functions
23 17 may be subject to a higher fee than the fees specified in
23 18 subparagraphs (a) and (b) as determined by the department
23 19 office.
23 20 (2) Any fees imposed shall be retained by the department
23 21 office and are appropriated to the department office for
23 22 purposes of providing services or assistance under the
23 23 program.
23 24 c. Moneys appropriated by the general assembly and any
23 25 other moneys, including grants and gifts from government and
23 26 nonprofit organizations, available to and obtained or accepted
23 27 by the department office for placement in the fund.
23 28 d. Moneys contained in the intermodal revolving loan fund
23 29 administered by the department of transportation for the
23 30 fiscal year beginning July 1, 2019, and succeeding fiscal
23 31 years.
23 32 e. Moneys in the fund are not subject to section 8.33.
23 33 Notwithstanding section 12C.7, interest or earnings on moneys
23 34 in the fund shall be credited to the fund.
23 35 3. The building energy bank management fund shall be
24 1 limited to a maximum of one million dollars. Amounts in
24 2 excess of this maximum limitation shall be transferred to and
24 3 deposited in the rebuild Iowa infrastructure fund created in
24 4 section 8.57, subsection 6.
24 5 Sec. 36. Section 473.20, Code 2009, is amended to read as
24 6 follows:
24 7 473.20 ENERGY LOAN PROGRAM.
24 8 1. An energy loan program is established and shall be
24 9 administered by the department office.
24 10 2. The department office may facilitate the loan process
24 11 for political subdivisions of the state, school districts,
24 12 area education agencies, community colleges, and nonprofit
24 13 organizations for implementation of energy management
24 14 improvements identified in an energy analysis. Loans shall be
24 15 facilitated for all cost=effective energy management
24 16 improvements. For political subdivisions of the state, school
24 17 districts, area education agencies, community colleges, and
24 18 nonprofit organizations to receive loan assistance under the
24 19 program, the department office shall require completion of an
24 20 energy management plan including an energy analysis. The
24 21 department office shall approve loans facilitated under this
24 22 section.
24 23 3. a. Cities and counties shall repay the loans from
24 24 moneys in their debt service funds. Area education agencies
24 25 shall repay the loans from any moneys available to them.
24 26 b. School districts and community colleges may enter into
24 27 financing arrangements with the department office or its duly
24 28 authorized agents or representatives obligating the school
24 29 district or community college to make payments on the loans
24 30 beyond the current budget year of the school district or
24 31 community college. Chapter 75 shall not be applicable.
24 32 School districts shall repay the loans from moneys in either
24 33 their general fund or debt service fund. Community colleges
24 34 shall repay the loans from their general fund. Other entities
24 35 receiving loans under this section shall repay the loans from
25 1 any moneys available to them.
25 2 4. For the purpose of this section, "loans" means loans,
25 3 leases, or alternative financing arrangements.
25 4 5. Political subdivisions of the state, school districts,
25 5 area education agencies, and community colleges shall design
25 6 and construct the most energy cost=effective facilities
25 7 feasible and may use financing facilitated by the department
25 8 office to cover the incremental costs above minimum building
25 9 code energy efficiency standards of purchasing
25 10 energy=efficient devices and materials unless other lower cost
25 11 financing is available. As used in this section, "facility"
25 12 means a structure that is heated or cooled by a mechanical or
25 13 electrical system, or any system of physical operation that
25 14 consumes energy to carry out a process.
25 15 6. The department office shall not require the state,
25 16 state agencies, political subdivisions of the state, school
25 17 districts, area education agencies, and community colleges to
25 18 implement a specific energy management improvement identified
25 19 in an energy analysis if the entity which prepared the
25 20 analysis demonstrates to the department office that the
25 21 facility which is the subject of the energy management
25 22 improvement is unlikely to be used or operated for the full
25 23 period of the expected savings payback of all costs associated
25 24 with implementing the energy management improvement, including
25 25 without limitation, any fees or charges of the department
25 26 office, engineering firms, financial advisors, attorneys, and
25 27 other third parties, and all financing costs including
25 28 interest, if financed.
25 29 Sec. 37. Section 473.20A, subsection 1, Code 2009, is
25 30 amended to read as follows:
25 31 1. a. The department of natural resources office may
25 32 facilitate financing agreements that may be entered into with
25 33 political subdivisions of the state, school districts, area
25 34 education agencies, community colleges, or nonprofit
25 35 organizations to finance the costs of energy management
26 1 improvements on a self=liquidating basis. The provisions of
26 2 section 473.20 defining eligible energy management
26 3 improvements apply to financings under this section.
26 4 b. The financing agreement may contain provisions,
26 5 including interest, term, and obligations to make payments on
26 6 the financing agreement beyond the current budget year, as may
26 7 be acceptable to political subdivisions of the state, school
26 8 districts, area education agencies, community colleges, or
26 9 nonprofit organizations.
26 10 c. The department office shall assist the treasurer of
26 11 state with financing agreements entered into by the treasurer
26 12 of state on behalf of state agencies pursuant to section 12.28
26 13 to finance energy management improvements being implemented by
26 14 state agencies.
26 15 Sec. 38. Section 473.41, Code 2009, is amended to read as
26 16 follows:
26 17 473.41 ENERGY CITY DESIGNATION PROGRAM.
26 18 1. The department office shall establish an energy city
26 19 designation program, with the objective of encouraging cities
26 20 to develop and implement innovative energy efficiency
26 21 programs. To qualify for designation as an energy city, a
26 22 city shall submit an application on forms prescribed by the
26 23 department office by rule, indicating the following:
26 24 a. Submission of community=based plans for energy
26 25 reduction projects, energy=efficient building construction and
26 26 rehabilitation, and alternative or renewable energy
26 27 production.
26 28 b. Efforts to secure local funding for community=based
26 29 plans, and documentation of any state or federal grant or loan
26 30 funding being pursued in connection therewith.
26 31 c. Involvement of local schools, civic organizations,
26 32 chambers of commerce, and private groups in a community=based
26 33 plan.
26 34 d. Existing or proposed ordinances encouraging energy
26 35 efficiency and conservation, recycling efforts, and
27 1 energy=efficient building code provisions and enforcement.
27 2 e. Organization of an energy day observance and
27 3 proclamation with a commemorating event and awards ceremony
27 4 for leading energy=efficient community businesses, groups,
27 5 schools, or individuals.
27 6 2. The department office shall establish by rule criteria
27 7 for awarding energy city designations. If more than one
27 8 designation is awarded annually, the criteria shall include a
27 9 requirement that the department office award the designations
27 10 to cities of varying populations. Rules shall also be
27 11 established identifying and publicizing state grant and loan
27 12 programs relating to energy efficiency, and the development of
27 13 a procedure whereby the department office shall coordinate
27 14 with other state agencies preferences given in the awarding of
27 15 grants or making of loans to energy city designated
27 16 applicants.
27 17 Sec. 39. Section 476.6, subsection 16, paragraph b, Code
27 18 2009, is amended to read as follows:
27 19 b. A gas and electric utility required to be
27 20 rate=regulated under this chapter shall assess potential
27 21 energy and capacity savings available from actual and
27 22 projected customer usage by applying commercially available
27 23 technology and improved operating practices to energy=using
27 24 equipment and buildings. The utility shall submit the
27 25 assessment to the board. Upon receipt of the assessment, the
27 26 board shall consult with the department of natural resources
27 27 office of energy independence to develop specific capacity and
27 28 energy savings performance standards for each utility. The
27 29 utility shall submit an energy efficiency plan which shall
27 30 include economically achievable programs designed to attain
27 31 these energy and capacity performance standards. The board
27 32 shall periodically report the energy efficiency results
27 33 including energy savings of each utility to the general
27 34 assembly.
27 35 Sec. 40. Section 476.63, Code 2009, is amended to read as
28 1 follows:
28 2 476.63 ENERGY EFFICIENCY PROGRAMS.
28 3 The division shall consult with the department of natural
28 4 resources office of energy independence in the development and
28 5 implementation of public utility energy efficiency programs.
28 6 Sec. 41. TRANSITION PROVISIONS == RULEMAKING.
28 7 1. Any moneys retained in any account or fund under the
28 8 control of the department of natural resources relative to the
28 9 provisions of this Act shall be transferred to a comparable
28 10 fund or account under the control of the office of energy
28 11 independence for such purposes.
28 12 2. Any license, permit, or contract issued or entered into
28 13 by the department of natural resources relative to the
28 14 provisions of this Act in effect on the effective date of this
28 15 Act shall continue in full force and effect pending transfer
28 16 of such licenses, permits, or contracts to the office of
28 17 energy independence.
28 18 3. Not later than August 1, 2009, the office of energy
28 19 independence shall adopt administrative rules previously
28 20 adopted by the department of natural resources relative to the
28 21 provisions of this Act in existence on the effective date of
28 22 this Act by emergency rulemaking pursuant to section 17A.4,
28 23 subsection 3, and section 17A.5, subsection 2, paragraph "b".
28 24 The rules shall become effective immediately upon filing or on
28 25 a later effective date specified in the rules. Any rules
28 26 adopted in accordance with the provisions of this section
28 27 shall also be published as a notice of intended action as
28 28 provided in section 17A.4. Any rule, regulation, form, order,
28 29 or directive promulgated by the department relative to the
28 30 provisions of this Act in effect on the effective date of this
28 31 Act shall continue in full force and effect until such
28 32 emergency rules are adopted.
28 33 4. The provisions of section 469.10, subsection 2,
28 34 relating to utilization by the director of the office of
28 35 energy independence of federal funds received other than
29 1 pursuant to the federal American Recovery and Reinvestment Act
29 2 of 2009, Pub. L. No. 111=5 to employ personnel necessary to
29 3 administer any program assigned to the office, shall be
29 4 applicable to the transfer from the department of natural
29 5 resources to the office of energy independence of individuals
29 6 currently employed by the department in capacities relating to
29 7 the programs or provisions transferred from the department to
29 8 the office pursuant to this Act.
29 9 Sec. 42. EFFECTIVE DATE. This Act, being deemed of
29 10 immediate importance, takes effect upon enactment.
29 11 SF 471
29 12 rn/nh/jh/26