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Senate Study Bill 3109 - IntroducedA Bill ForAn Act 1relating to economic development and energy shortages
2under the purview of the economic development authority and
3governor, and providing penalties.
4BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
1DIVISION I
2ECONOMIC DEVELOPMENT PROGRAMS
3 Section 1. Section 15.106B, subsection 5, paragraph b, Code
42024, is amended by striking the paragraph.
5 Sec. 2. NEW SECTION. 15.106E Application or award —
6prohibition.
71. The authority may prohibit a person from receiving an
8award of financial assistance, or from being selected as a
9vendor to provide goods or services to the authority in any of
10the following circumstances:
11a. An act or omission by the person seriously affects or
12threatens public health, public safety, or the environment.
13b. The person is charged with or convicted of a crime
14involving dishonesty.
15c. An act or omission by the person indicates a lack of
16integrity or honesty.
17d. The person violates the terms of an agreement or
18transaction that detrimentally impacts the integrity of a
19program administered by the authority, or other governmental
20entity as defined in section 8A.101.
21e. A compelling cause exists that is relevant to and affects
22the person’s obligations under the programs administered by the
23authority, or is relevant to and affects the provision of goods
24and services to the authority by a vendor.
252. Upon a determination by the authority, a person shall
26be prohibited from receiving an award of financial assistance,
27or from being selected as a vendor pursuant to subsection 1.
28The authority shall provide written notice to the prohibited
29person stating the reason for the prohibition. The authority
30may immediately disqualify a prohibited person from receiving
31financial assistance, or from being selected as a vendor.
323. The authority shall adopt rules as necessary pursuant to
33chapter 17A to administer this section.
34 Sec. 3. Section 15.108, subsection 2, Code 2024, is amended
35by striking the subsection and inserting in lieu thereof the
-1-1following:
22. Marketing. To aid in all of the following:
3a. The marketing and promotion of Iowa products and
4services.
5b. The promotion and development of the agricultural
6processing industry in the state.
7 Sec. 4. Section 15.108, subsection 3, paragraph a,
8subparagraph (5), Code 2024, is amended to read as follows:
9(5) Encourage cities, counties, local and regional
10government organizations, and local and regional economic
11development organizations to develop and implement
12comprehensive community and economic development plans. In
13evaluating financial assistance applications, the authority
14shall award supplementary credit to applications submitted by
15cities, counties, local and regional government organizations,
16and local and regional economic development organizations
17that have developed a comprehensive community and economic
18development plan.
19 Sec. 5. Section 15.108, subsection 4, Code 2024, is amended
20by striking the subsection and inserting in lieu thereof the
21following:
224. Exporting. To promote and aid in the marketing and
23sale of Iowa industrial and agricultural products and services
24outside of the state. To carry out this responsibility, the
25authority shall:
26a. Perform the duties and activities specified for the
27agricultural marketing program under sections 15.201 and
2815.202.
29b. Seek assistance and advice from the Iowa district export
30council which advises the United States department of commerce.
31 Sec. 6. Section 15.108, subsection 5, paragraph d, Code
322024, is amended to read as follows:
33d. Coordinate with other divisions of the authority to add
34 Promote the contributions of Iowa’s recreation, tourism, and
35leisure resources to the agricultural and other images which
-2-1characterize the state on a national level.
2 Sec. 7. Section 15.108, subsection 5, paragraph o, Code
32024, is amended by striking the paragraph.
4 Sec. 8. Section 15.108, subsection 6, paragraph c, Code
52024, is amended by striking the paragraph and inserting in
6lieu thereof the following:
7c. Provide aid for the development and implementation of
8the Iowa targeted small business procurement Act established in
9sections 73.15 through 73.22.
10 Sec. 9. Section 15.108, subsection 6, paragraphs f and g,
11Code 2024, are amended by striking the paragraphs.
12 Sec. 10. Section 15.108, subsection 7, Code 2024, is amended
13by striking the subsection.
14 Sec. 11. Section 15.108, subsection 10, paragraph b,
15subparagraph (3), Code 2024, is amended to read as follows:
16(3) Establish programs which assist communities or local
17entities in developing housing to meet a range of community
18needs, including programs to assist homeless shelter operations
19and programs to assist in the development of housing to enhance
20economic development opportunities in the community.
21 Sec. 12. Section 15.371, subsection 5, paragraph e, Code
222024, is amended to read as follows:
23e. Employ a minimum of three full-time employees and no more
24than seventy-five one hundred twenty-five full-time employees
25across all of the manufacturer’s locations.
26 Sec. 13. NEW SECTION. 73.22 Reports.
271. By December 1 of each calendar year, the department of
28administrative services shall provide a written summary to the
29economic development authority of all activities undertaken
30by the department of administrative services to maximize the
31purposes of this subchapter during the immediately preceding
32fiscal year.
332. By December 1 of each calendar year, the economic
34development authority shall compile a list of the procurement
35goals established pursuant to section 73.16, subsection 2, for
-3-1the prior fiscal year, and the performance of each agency or
2department of state government having purchasing authority in
3meeting the goals. The compilation shall be based upon the
4reports required to be filed under section 73.16, subsection 2.
53. By January 15 of each calendar year, the economic
6development authority shall submit to the governor and the
7general assembly a summary of all reports required under this
8section.
94. The director of the economic development authority, in
10cooperation with the department of administrative services and
11other state agencies shall do all of the following:
12a. Publicize the targeted small business procurement goal
13program to targeted small businesses and to agencies of state
14government.
15b. Identify targeted small businesses able to perform
16contracts under the program.
17c. Encourage targeted small businesses to participate in the
18program.
19 Sec. 14. REPEAL. Sections 15.246, 15.271, and 15.272, Code
202024, are repealed.
21DIVISION II
22ENERGY SHORTAGES
23 Sec. 15. Section 12.28, subsection 6, Code 2024, is amended
24to read as follows:
256. The maximum principal amount of financing agreements
26which the treasurer of state can enter into shall be one
27million dollars per state agency in a fiscal year, subject
28to the requirements of section 8.46. For the fiscal year,
29the treasurer of state shall not enter into more than one
30million dollars of financing agreements per state agency,
31not considering interest expense. However, the treasurer
32of state may enter into financing agreements in excess of
33the one million dollar per agency per fiscal year limit if a
34constitutional majority of each house of the general assembly,
35or the legislative council if the general assembly is not in
-4-1session, and the governor, authorize the treasurer of state
2to enter into additional financing agreements above the one
3million dollar authorization contained in this section. The
4treasurer of state shall not enter into a financing agreement
5for real or personal property which is to be constructed for
6use as a prison or prison-related facility without prior
7authorization by a constitutional majority of each house of
8the general assembly and approval by the governor of the use,
9location, and maximum cost, not including interest expense,
10of the real or personal property to be financed. However,
11financing agreements for an energy conservation measure, as
12defined in section 7D.34, for an energy management improvement,
13as defined in section 473.19, or for costs associated with
14projects under section 473.13A, are exempt from the provisions
15of this subsection, but are subject to the requirements of
16section 7D.34. In addition, financing agreements funded
17through the materials and equipment revolving fund established
18in section 307.47 are exempt from the provisions of this
19subsection.
20 Sec. 16. Section 29C.2, Code 2024, is amended by adding the
21following new subsections:
22 NEW SUBSECTION. 4A. “Energy” or “energy sources” means the
23same as defined in section 473.1.
24 NEW SUBSECTION. 5A. “Liquid fossil fuel” means heating
25oil, diesel oil, motor gasoline, propane, residual fuel oil,
26kerosene, and aviation fuel.
27 NEW SUBSECTION. 7A. “Prime supplier” means an individual,
28trustee, agency, partnership, association, corporation,
29company, municipality, political subdivision, or other legal
30entity that makes the first sale of liquid fossil fuel into the
31state distribution system for consumption within the state.
32 Sec. 17. Section 29C.6, Code 2024, is amended by adding the
33following new subsection:
34 NEW SUBSECTION. 18. a. Determine that an actual acute
35shortage of usable energy has occurred or is imminent based
-5-1upon circumstances indicated in the state energy security plan
2created in section 473.5, or in response to a declaration of
3a severe energy supply interruption by the president of the
4United States under the federal Emergency Energy Conservation
5Act of 1979, Pub.L.No.96-102, as amended. Upon such a
6determination, the governor may do any of the following by
7proclamation:
8(1) Regulate the operating hours of agencies and
9instrumentalities of state government, political subdivisions,
10private institutions, and business facilities that consume
11energy to the extent the regulation is not hazardous or
12detrimental to the health, safety, or welfare of the people of
13this state. However, the governor shall not have authority to
14suspend, amend, or nullify any service provided by a public
15utility, as defined in section 476.1, if the public utility
16is providing such service pursuant to an order or rule of a
17federal agency which has jurisdiction over the public utility.
18(2) Establish a system for the distribution and supply
19of energy. The system shall not include a coupon rationing
20program, unless the coupon rationing program is federally
21mandated.
22(3) Curtail public and private transportation utilizing
23energy. Curtailment may include measures designed to promote
24the use of carpools and mass transit systems.
25(4) Accept the delegation of authority for other mandatory
26measures under the federal Emergency Energy Conservation Act of
271979, Pub.L.No.96-102, as amended.
28(5) Require a prime supplier to reserve a specified fraction
29of the prime supplier’s projected total monthly release of
30liquid fossil fuel into the state distribution system. The
31governor or the governor’s designee may release any or all
32of the fuel required to be reserved by a prime supplier
33to end-users or to distributors for release through normal
34retail distribution channels. However, the specified fraction
35required to be reserved shall not exceed three percent for
-6-1propane, aviation fuel, and residual fuel oil, and five percent
2for motor gasoline, heating oil, and diesel oil.
3b. A person who violates paragraph “a” commits a simple
4misdemeanor punishable as a scheduled violation pursuant to
5section 805.8C, subsection 1. If the violation is continuous
6and stationary in its nature and subsequent compliance can
7easily be ascertained, an officer may issue a memorandum of
8warning in lieu of a citation providing a reasonable amount of
9time not exceeding fourteen days to correct the violation and
10to comply with the requirements of the proclamation.
11 Sec. 18. Section 279.53, Code 2024, is amended to read as
12follows:
13279.53 Loan proceeds.
14The proceeds of loans issued to school districts pursuant to
15section 279.48, or 279.52, or 473.20 shall be deposited into
16either the general fund of a school district or the physical
17plant and equipment levy fund. The board of directors shall
18expend the amount of the principal and interest due each year
19to maturity from the same fund into which the loan proceeds
20were deposited.
21 Sec. 19. Section 298.3, subsection 1, paragraph g, Code
222024, is amended by striking the paragraph.
23 Sec. 20. Section 323A.2, subsection 1, paragraph c, Code
242024, is amended to read as follows:
25c. The director of the economic development authority
26determines that the franchisee has demonstrated that a special
27hardship exists in the community served by the franchisee
28relating to the public health, safety, and welfare, as
29specified under the rules of the authority.
30 Sec. 21. Section 473.1, subsection 3, Code 2024, is amended
31by striking the subsection.
32 Sec. 22. Section 473.3, subsection 2, Code 2024, is amended
33by striking the subsection.
34 Sec. 23. NEW SECTION. 473.4 Duties of the authority.
35The authority shall do the following:
-7- 11. Periodically update the Iowa energy plan that identifies
2objectives and strategies for developing the energy sector in
3the state.
42. Administer and coordinate federal funds received for
5energy conservation, energy management, and alternative and
6renewable energy programs.
73. Apply for, receive, administer, and use federal or other
8funds available for achieving the purposes of this chapter.
9 Sec. 24. NEW SECTION. 473.5 Energy security plan.
101. The governor or the governor’s designee shall maintain
11an energy security plan.
122. The energy security plan shall include but is not limited
13to the following:
14a. A description of the circumstances that indicate an
15actual or imminent acute shortage of usable energy, including
16liquid fossil fuels.
17b. Any action to be taken by the authority or relevant
18agencies in response to a proclamation issued pursuant to
19section 29C.6, subsection 18.
20 Sec. 25. Section 805.8C, subsection 1, Code 2024, is amended
21to read as follows:
221. Energy emergency violations. For violations of an
23executive order issued a proclamation by the governor under the
24provisions of section 473.8 section 29C.6, subsection 18, the
25scheduled fine is seventy dollars.
26 Sec. 26. REPEAL. Sections 473.7, 473.8, 473.9, 473.10,
27473.13A, 473.15, 473.19, 473.19A, 473.20, 473.20A, and 473.41,
28Code 2024, are repealed.
29 Sec. 27. TRANSFER OF MONEYS. On the effective date of this
30division of this Act, any moneys remaining in the building
31energy management fund in section 473.19A, Code 2024, shall be
32transferred to the general fund of the state.
33EXPLANATION
34The inclusion of this explanation does not constitute agreement with
35the explanation’s substance by the members of the general assembly.
-8- 1This bill relates to economic development and energy
2shortages under the purview of the economic development
3authority and governor.
4DIVISION I — ECONOMIC DEVELOPMENT PROGRAMS. The bill
5strikes the specific power of the economic development
6authority (authority) to charge a business or individual a fee
7for use of the authority’s federal EB-5 immigrant investor
8regional center.
9The bill specifies the circumstances in which the authority
10may prohibit a person from receiving an award or financial
11assistance, or from being selected as a vendor to provide goods
12or services to the authority. The circumstances include:
13an act or omission by the person that seriously affects or
14threatens public health, public safety, or the environment;
15the person is charged with or convicted of a crime involving
16dishonesty; an act or omission by the person that indicates a
17lack of integrity or honesty; the person violates the terms
18of an agreement or transaction; or a compelling cause exists
19that is relevant to and affects the obligations of the person
20or vendor under programs administered by the authority. The
21authority is required to provide written notification to the
22person of the reason for the prohibition, and may immediately
23disqualify such a person from receiving financial assistance
24or being selected as a vendor.
25The bill makes numerous changes to Code section 15.108
26(primary responsibilities of the authority). The bill
27strikes the requirement that the authority establish a federal
28procurement office staffed with experts in marketing to federal
29agencies.
30The bill strikes provisions allowing the authority to
31adopt a label or trademark that identifies Iowa products and
32services, and to promote an import substitution program to
33encourage the purchase of domestically produced Iowa goods.
34In financial assistance applications, the bill strikes a
35provision requiring the authority to award a supplementary
-9-1credit to applications submitted by local governments
2or regional economic development organizations if such
3governmental entity or organization has developed a
4comprehensive community and economic development plan.
5The bill strikes a provision encouraging coordination with
6the Iowa board of regents and area community colleges to
7establish a conversational foreign language training program.
8A provision encouraging the promotion and assistance in the
9creation of international currency and barter exchanges is
10stricken.
11Under the bill, the governor is no longer required to appoint
12an export advisory board.
13The bill strikes a provision encouraging college graduates
14from Iowa schools and former residents who reside in foreign
15countries to become cultural advisors for the authority and for
16Iowa businesses participating in trade missions, and strikes
17the provision encouraging foreign students studying in Iowa
18to be used as contacts with Iowa businesses engaged in export
19activities.
20A revolving fund is stricken by the bill that allows
21the authority to receive contributions for use in start-up
22expansion of tourism special events, fairs, and festivals.
23The bill moves provisions regarding the submission of
24reports relating to the targeted small business procurement
25program in Code section 15.108(6) to new Code section 73.22 as
26created in the bill. However, the bill removes the provision
27in Code section 15.108(6)(3) requiring the director of the
28authority to assist a targeted small business unable to perform
29a procurement contract, and makes other related changes.
30The bill strikes a provision encouraging the authority to
31cooperate with other state agencies to establish a program
32to educate employers on the rates and workings of the
33state unemployment compensation program and state workers’
34compensation program.
35Under the bill, the authority is no longer required to study
-10-1the feasibility of reducing the number of state licenses,
2permits, and certificates required to conduct business.
3The bill strikes a provision allowing the authority to help
4local entities develop programs to assist homeless shelter
5operations.
6The bill strikes a provision requiring the authority to
7provide case management assistance to low-income persons
8establishing or expanding a small business, and repeals the
9case management program in Code section 15.246.
10The bill expands the manufacturing 4.0 technology program by
11allowing an employer who employs up to 125 employees to qualify
12for the program. Currently, an employer with more than 75
13employees does not qualify for the program.
14The bill repeals provisions requiring a statewide welcome
15center program and related provisions.
16DIVISION II — ENERGY SHORTAGES. Under current law, if the
17authority by resolution determines the people of this state are
18threatened by an actual or impending acute shortage of energy,
19the authority is required to transmit the resolution to the
20governor together with recommendations. After transmission of
21such a resolution under current law, the governor may issue a
22proclamation of emergency.
23The bill grants the governor sole power to issue a
24proclamation that an actual acute shortage of usable energy has
25occurred or is imminent based upon the energy security plan of
26the state developed in the bill, or allows the governor to base
27the proclamation in response to a declaration of severe energy
28supply interruption by the president of the United States
29under the federal Emergency Energy Conservation Act of 1979,
30as amended. The bill moves the current proclamation powers in
31Code section 473.8(2) to new Code section 29C.6(18), and the
32powers essentially remain the same.
33The bill moves the definitions of “prime supplier” and
34“liquid fossil fuel” from Code section 473.9 to Code section
3529C.2, and defines “energy” or “energy sources” in Code section
-11-129C.2 to mean the same as in Code section 473.1.
2The bill strikes the ability of the authority to adopt rules
3for energy-related hardships that result in public, health,
4safety, and welfare concerns in Code section 323A.2(1).
5The bill strikes a provision requiring state government to
6be a model and testing ground for the use of energy and energy
7systems.
8The bill authorizes the creation of an energy security
9plan in new Code section 473.5. The bill requires the energy
10security plan to include but is not limited to a description
11of circumstances that may lead to an actual or impending acute
12shortage of energy, including liquid fossil fuels, and action
13plans to be taken by relevant state agencies if a disaster
14emergency proclamation relating to energy is issued by the
15governor.
16The bill repeals Code section 473.7 (duties of authority)
17and removes most of the duties of the authority. The remaining
18duties of the authority are expressed in new Code section 473.4
19created in the bill. The duties include periodically updating
20the energy security plan authorized in the bill.
21The bill updates the simple misdemeanor scheduled violation
22for energy emergency violations in Code section 805.8C(1)
23due to moving the provisions relating to the proclamation
24declaration from Code section 473.8 to 29C.6(18) in the bill.
25The bill repeals provisions relating to energy emergencies,
26energy management, energy funds, and energy loan programs under
27the purview of the authority including sections 473.7 (duties
28of authority), 473.8 (emergency powers), 473.9 (set-aside
29definitions), 473.10 (reserve required), 473.13A (energy
30management improvements identified and implemented), 473.15
31(annual report), 473.19 (building energy management program),
32473.19A (building energy management fund), 473.20 (energy loan
33program), 473.20A (self-liquidating financing), and 473.41
34(energy city designation program).
35On July 1, 2024, the date of the repeal of the building
-12-1energy management fund in Code section 473.19A, the bill
2transfers any remaining moneys in the fund to the general fund
3of the state.
-13-jm/ko
2under the purview of the economic development authority and
3governor, and providing penalties.
4BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
1DIVISION I
2ECONOMIC DEVELOPMENT PROGRAMS
3 Section 1. Section 15.106B, subsection 5, paragraph b, Code
42024, is amended by striking the paragraph.
5 Sec. 2. NEW SECTION. 15.106E Application or award —
6prohibition.
71. The authority may prohibit a person from receiving an
8award of financial assistance, or from being selected as a
9vendor to provide goods or services to the authority in any of
10the following circumstances:
11a. An act or omission by the person seriously affects or
12threatens public health, public safety, or the environment.
13b. The person is charged with or convicted of a crime
14involving dishonesty.
15c. An act or omission by the person indicates a lack of
16integrity or honesty.
17d. The person violates the terms of an agreement or
18transaction that detrimentally impacts the integrity of a
19program administered by the authority, or other governmental
20entity as defined in section 8A.101.
21e. A compelling cause exists that is relevant to and affects
22the person’s obligations under the programs administered by the
23authority, or is relevant to and affects the provision of goods
24and services to the authority by a vendor.
252. Upon a determination by the authority, a person shall
26be prohibited from receiving an award of financial assistance,
27or from being selected as a vendor pursuant to subsection 1.
28The authority shall provide written notice to the prohibited
29person stating the reason for the prohibition. The authority
30may immediately disqualify a prohibited person from receiving
31financial assistance, or from being selected as a vendor.
323. The authority shall adopt rules as necessary pursuant to
33chapter 17A to administer this section.
34 Sec. 3. Section 15.108, subsection 2, Code 2024, is amended
35by striking the subsection and inserting in lieu thereof the
-1-1following:
22. Marketing. To aid in all of the following:
3a. The marketing and promotion of Iowa products and
4services.
5b. The promotion and development of the agricultural
6processing industry in the state.
7 Sec. 4. Section 15.108, subsection 3, paragraph a,
8subparagraph (5), Code 2024, is amended to read as follows:
9(5) Encourage cities, counties, local and regional
10government organizations, and local and regional economic
11development organizations to develop and implement
12comprehensive community and economic development plans. In
13evaluating financial assistance applications, the authority
14shall award supplementary credit to applications submitted by
15cities, counties, local and regional government organizations,
16and local and regional economic development organizations
17that have developed a comprehensive community and economic
18development plan.
19 Sec. 5. Section 15.108, subsection 4, Code 2024, is amended
20by striking the subsection and inserting in lieu thereof the
21following:
224. Exporting. To promote and aid in the marketing and
23sale of Iowa industrial and agricultural products and services
24outside of the state. To carry out this responsibility, the
25authority shall:
26a. Perform the duties and activities specified for the
27agricultural marketing program under sections 15.201 and
2815.202.
29b. Seek assistance and advice from the Iowa district export
30council which advises the United States department of commerce.
31 Sec. 6. Section 15.108, subsection 5, paragraph d, Code
322024, is amended to read as follows:
33d. Coordinate with other divisions of the authority to add
34 Promote the contributions of Iowa’s recreation, tourism, and
35leisure resources to the agricultural and other images which
-2-1characterize the state on a national level.
2 Sec. 7. Section 15.108, subsection 5, paragraph o, Code
32024, is amended by striking the paragraph.
4 Sec. 8. Section 15.108, subsection 6, paragraph c, Code
52024, is amended by striking the paragraph and inserting in
6lieu thereof the following:
7c. Provide aid for the development and implementation of
8the Iowa targeted small business procurement Act established in
9sections 73.15 through 73.22.
10 Sec. 9. Section 15.108, subsection 6, paragraphs f and g,
11Code 2024, are amended by striking the paragraphs.
12 Sec. 10. Section 15.108, subsection 7, Code 2024, is amended
13by striking the subsection.
14 Sec. 11. Section 15.108, subsection 10, paragraph b,
15subparagraph (3), Code 2024, is amended to read as follows:
16(3) Establish programs which assist communities or local
17entities in developing housing to meet a range of community
18needs, including programs to assist homeless shelter operations
19and programs to assist in the development of housing to enhance
20economic development opportunities in the community.
21 Sec. 12. Section 15.371, subsection 5, paragraph e, Code
222024, is amended to read as follows:
23e. Employ a minimum of three full-time employees and no more
24than seventy-five one hundred twenty-five full-time employees
25across all of the manufacturer’s locations.
26 Sec. 13. NEW SECTION. 73.22 Reports.
271. By December 1 of each calendar year, the department of
28administrative services shall provide a written summary to the
29economic development authority of all activities undertaken
30by the department of administrative services to maximize the
31purposes of this subchapter during the immediately preceding
32fiscal year.
332. By December 1 of each calendar year, the economic
34development authority shall compile a list of the procurement
35goals established pursuant to section 73.16, subsection 2, for
-3-1the prior fiscal year, and the performance of each agency or
2department of state government having purchasing authority in
3meeting the goals. The compilation shall be based upon the
4reports required to be filed under section 73.16, subsection 2.
53. By January 15 of each calendar year, the economic
6development authority shall submit to the governor and the
7general assembly a summary of all reports required under this
8section.
94. The director of the economic development authority, in
10cooperation with the department of administrative services and
11other state agencies shall do all of the following:
12a. Publicize the targeted small business procurement goal
13program to targeted small businesses and to agencies of state
14government.
15b. Identify targeted small businesses able to perform
16contracts under the program.
17c. Encourage targeted small businesses to participate in the
18program.
19 Sec. 14. REPEAL. Sections 15.246, 15.271, and 15.272, Code
202024, are repealed.
21DIVISION II
22ENERGY SHORTAGES
23 Sec. 15. Section 12.28, subsection 6, Code 2024, is amended
24to read as follows:
256. The maximum principal amount of financing agreements
26which the treasurer of state can enter into shall be one
27million dollars per state agency in a fiscal year, subject
28to the requirements of section 8.46. For the fiscal year,
29the treasurer of state shall not enter into more than one
30million dollars of financing agreements per state agency,
31not considering interest expense. However, the treasurer
32of state may enter into financing agreements in excess of
33the one million dollar per agency per fiscal year limit if a
34constitutional majority of each house of the general assembly,
35or the legislative council if the general assembly is not in
-4-1session, and the governor, authorize the treasurer of state
2to enter into additional financing agreements above the one
3million dollar authorization contained in this section. The
4treasurer of state shall not enter into a financing agreement
5for real or personal property which is to be constructed for
6use as a prison or prison-related facility without prior
7authorization by a constitutional majority of each house of
8the general assembly and approval by the governor of the use,
9location, and maximum cost, not including interest expense,
10of the real or personal property to be financed. However,
11financing agreements for an energy conservation measure, as
12defined in section 7D.34, for an energy management improvement,
13as defined in section 473.19, or for costs associated with
14projects under section 473.13A, are exempt from the provisions
15of this subsection, but are subject to the requirements of
16section 7D.34. In addition, financing agreements funded
17through the materials and equipment revolving fund established
18in section 307.47 are exempt from the provisions of this
19subsection.
20 Sec. 16. Section 29C.2, Code 2024, is amended by adding the
21following new subsections:
22 NEW SUBSECTION. 4A. “Energy” or “energy sources” means the
23same as defined in section 473.1.
24 NEW SUBSECTION. 5A. “Liquid fossil fuel” means heating
25oil, diesel oil, motor gasoline, propane, residual fuel oil,
26kerosene, and aviation fuel.
27 NEW SUBSECTION. 7A. “Prime supplier” means an individual,
28trustee, agency, partnership, association, corporation,
29company, municipality, political subdivision, or other legal
30entity that makes the first sale of liquid fossil fuel into the
31state distribution system for consumption within the state.
32 Sec. 17. Section 29C.6, Code 2024, is amended by adding the
33following new subsection:
34 NEW SUBSECTION. 18. a. Determine that an actual acute
35shortage of usable energy has occurred or is imminent based
-5-1upon circumstances indicated in the state energy security plan
2created in section 473.5, or in response to a declaration of
3a severe energy supply interruption by the president of the
4United States under the federal Emergency Energy Conservation
5Act of 1979, Pub.L.No.96-102, as amended. Upon such a
6determination, the governor may do any of the following by
7proclamation:
8(1) Regulate the operating hours of agencies and
9instrumentalities of state government, political subdivisions,
10private institutions, and business facilities that consume
11energy to the extent the regulation is not hazardous or
12detrimental to the health, safety, or welfare of the people of
13this state. However, the governor shall not have authority to
14suspend, amend, or nullify any service provided by a public
15utility, as defined in section 476.1, if the public utility
16is providing such service pursuant to an order or rule of a
17federal agency which has jurisdiction over the public utility.
18(2) Establish a system for the distribution and supply
19of energy. The system shall not include a coupon rationing
20program, unless the coupon rationing program is federally
21mandated.
22(3) Curtail public and private transportation utilizing
23energy. Curtailment may include measures designed to promote
24the use of carpools and mass transit systems.
25(4) Accept the delegation of authority for other mandatory
26measures under the federal Emergency Energy Conservation Act of
271979, Pub.L.No.96-102, as amended.
28(5) Require a prime supplier to reserve a specified fraction
29of the prime supplier’s projected total monthly release of
30liquid fossil fuel into the state distribution system. The
31governor or the governor’s designee may release any or all
32of the fuel required to be reserved by a prime supplier
33to end-users or to distributors for release through normal
34retail distribution channels. However, the specified fraction
35required to be reserved shall not exceed three percent for
-6-1propane, aviation fuel, and residual fuel oil, and five percent
2for motor gasoline, heating oil, and diesel oil.
3b. A person who violates paragraph “a” commits a simple
4misdemeanor punishable as a scheduled violation pursuant to
5section 805.8C, subsection 1. If the violation is continuous
6and stationary in its nature and subsequent compliance can
7easily be ascertained, an officer may issue a memorandum of
8warning in lieu of a citation providing a reasonable amount of
9time not exceeding fourteen days to correct the violation and
10to comply with the requirements of the proclamation.
11 Sec. 18. Section 279.53, Code 2024, is amended to read as
12follows:
13279.53 Loan proceeds.
14The proceeds of loans issued to school districts pursuant to
15section 279.48, or 279.52, or 473.20 shall be deposited into
16either the general fund of a school district or the physical
17plant and equipment levy fund. The board of directors shall
18expend the amount of the principal and interest due each year
19to maturity from the same fund into which the loan proceeds
20were deposited.
21 Sec. 19. Section 298.3, subsection 1, paragraph g, Code
222024, is amended by striking the paragraph.
23 Sec. 20. Section 323A.2, subsection 1, paragraph c, Code
242024, is amended to read as follows:
25c. The director of the economic development authority
26determines that the franchisee has demonstrated that a special
27hardship exists in the community served by the franchisee
28relating to the public health, safety, and welfare, as
29specified under the rules of the authority.
30 Sec. 21. Section 473.1, subsection 3, Code 2024, is amended
31by striking the subsection.
32 Sec. 22. Section 473.3, subsection 2, Code 2024, is amended
33by striking the subsection.
34 Sec. 23. NEW SECTION. 473.4 Duties of the authority.
35The authority shall do the following:
-7- 11. Periodically update the Iowa energy plan that identifies
2objectives and strategies for developing the energy sector in
3the state.
42. Administer and coordinate federal funds received for
5energy conservation, energy management, and alternative and
6renewable energy programs.
73. Apply for, receive, administer, and use federal or other
8funds available for achieving the purposes of this chapter.
9 Sec. 24. NEW SECTION. 473.5 Energy security plan.
101. The governor or the governor’s designee shall maintain
11an energy security plan.
122. The energy security plan shall include but is not limited
13to the following:
14a. A description of the circumstances that indicate an
15actual or imminent acute shortage of usable energy, including
16liquid fossil fuels.
17b. Any action to be taken by the authority or relevant
18agencies in response to a proclamation issued pursuant to
19section 29C.6, subsection 18.
20 Sec. 25. Section 805.8C, subsection 1, Code 2024, is amended
21to read as follows:
221. Energy emergency violations. For violations of an
23executive order issued a proclamation by the governor under the
24provisions of section 473.8 section 29C.6, subsection 18, the
25scheduled fine is seventy dollars.
26 Sec. 26. REPEAL. Sections 473.7, 473.8, 473.9, 473.10,
27473.13A, 473.15, 473.19, 473.19A, 473.20, 473.20A, and 473.41,
28Code 2024, are repealed.
29 Sec. 27. TRANSFER OF MONEYS. On the effective date of this
30division of this Act, any moneys remaining in the building
31energy management fund in section 473.19A, Code 2024, shall be
32transferred to the general fund of the state.
33EXPLANATION
34The inclusion of this explanation does not constitute agreement with
35the explanation’s substance by the members of the general assembly.
-8- 1This bill relates to economic development and energy
2shortages under the purview of the economic development
3authority and governor.
4DIVISION I — ECONOMIC DEVELOPMENT PROGRAMS. The bill
5strikes the specific power of the economic development
6authority (authority) to charge a business or individual a fee
7for use of the authority’s federal EB-5 immigrant investor
8regional center.
9The bill specifies the circumstances in which the authority
10may prohibit a person from receiving an award or financial
11assistance, or from being selected as a vendor to provide goods
12or services to the authority. The circumstances include:
13an act or omission by the person that seriously affects or
14threatens public health, public safety, or the environment;
15the person is charged with or convicted of a crime involving
16dishonesty; an act or omission by the person that indicates a
17lack of integrity or honesty; the person violates the terms
18of an agreement or transaction; or a compelling cause exists
19that is relevant to and affects the obligations of the person
20or vendor under programs administered by the authority. The
21authority is required to provide written notification to the
22person of the reason for the prohibition, and may immediately
23disqualify such a person from receiving financial assistance
24or being selected as a vendor.
25The bill makes numerous changes to Code section 15.108
26(primary responsibilities of the authority). The bill
27strikes the requirement that the authority establish a federal
28procurement office staffed with experts in marketing to federal
29agencies.
30The bill strikes provisions allowing the authority to
31adopt a label or trademark that identifies Iowa products and
32services, and to promote an import substitution program to
33encourage the purchase of domestically produced Iowa goods.
34In financial assistance applications, the bill strikes a
35provision requiring the authority to award a supplementary
-9-1credit to applications submitted by local governments
2or regional economic development organizations if such
3governmental entity or organization has developed a
4comprehensive community and economic development plan.
5The bill strikes a provision encouraging coordination with
6the Iowa board of regents and area community colleges to
7establish a conversational foreign language training program.
8A provision encouraging the promotion and assistance in the
9creation of international currency and barter exchanges is
10stricken.
11Under the bill, the governor is no longer required to appoint
12an export advisory board.
13The bill strikes a provision encouraging college graduates
14from Iowa schools and former residents who reside in foreign
15countries to become cultural advisors for the authority and for
16Iowa businesses participating in trade missions, and strikes
17the provision encouraging foreign students studying in Iowa
18to be used as contacts with Iowa businesses engaged in export
19activities.
20A revolving fund is stricken by the bill that allows
21the authority to receive contributions for use in start-up
22expansion of tourism special events, fairs, and festivals.
23The bill moves provisions regarding the submission of
24reports relating to the targeted small business procurement
25program in Code section 15.108(6) to new Code section 73.22 as
26created in the bill. However, the bill removes the provision
27in Code section 15.108(6)(3) requiring the director of the
28authority to assist a targeted small business unable to perform
29a procurement contract, and makes other related changes.
30The bill strikes a provision encouraging the authority to
31cooperate with other state agencies to establish a program
32to educate employers on the rates and workings of the
33state unemployment compensation program and state workers’
34compensation program.
35Under the bill, the authority is no longer required to study
-10-1the feasibility of reducing the number of state licenses,
2permits, and certificates required to conduct business.
3The bill strikes a provision allowing the authority to help
4local entities develop programs to assist homeless shelter
5operations.
6The bill strikes a provision requiring the authority to
7provide case management assistance to low-income persons
8establishing or expanding a small business, and repeals the
9case management program in Code section 15.246.
10The bill expands the manufacturing 4.0 technology program by
11allowing an employer who employs up to 125 employees to qualify
12for the program. Currently, an employer with more than 75
13employees does not qualify for the program.
14The bill repeals provisions requiring a statewide welcome
15center program and related provisions.
16DIVISION II — ENERGY SHORTAGES. Under current law, if the
17authority by resolution determines the people of this state are
18threatened by an actual or impending acute shortage of energy,
19the authority is required to transmit the resolution to the
20governor together with recommendations. After transmission of
21such a resolution under current law, the governor may issue a
22proclamation of emergency.
23The bill grants the governor sole power to issue a
24proclamation that an actual acute shortage of usable energy has
25occurred or is imminent based upon the energy security plan of
26the state developed in the bill, or allows the governor to base
27the proclamation in response to a declaration of severe energy
28supply interruption by the president of the United States
29under the federal Emergency Energy Conservation Act of 1979,
30as amended. The bill moves the current proclamation powers in
31Code section 473.8(2) to new Code section 29C.6(18), and the
32powers essentially remain the same.
33The bill moves the definitions of “prime supplier” and
34“liquid fossil fuel” from Code section 473.9 to Code section
3529C.2, and defines “energy” or “energy sources” in Code section
-11-129C.2 to mean the same as in Code section 473.1.
2The bill strikes the ability of the authority to adopt rules
3for energy-related hardships that result in public, health,
4safety, and welfare concerns in Code section 323A.2(1).
5The bill strikes a provision requiring state government to
6be a model and testing ground for the use of energy and energy
7systems.
8The bill authorizes the creation of an energy security
9plan in new Code section 473.5. The bill requires the energy
10security plan to include but is not limited to a description
11of circumstances that may lead to an actual or impending acute
12shortage of energy, including liquid fossil fuels, and action
13plans to be taken by relevant state agencies if a disaster
14emergency proclamation relating to energy is issued by the
15governor.
16The bill repeals Code section 473.7 (duties of authority)
17and removes most of the duties of the authority. The remaining
18duties of the authority are expressed in new Code section 473.4
19created in the bill. The duties include periodically updating
20the energy security plan authorized in the bill.
21The bill updates the simple misdemeanor scheduled violation
22for energy emergency violations in Code section 805.8C(1)
23due to moving the provisions relating to the proclamation
24declaration from Code section 473.8 to 29C.6(18) in the bill.
25The bill repeals provisions relating to energy emergencies,
26energy management, energy funds, and energy loan programs under
27the purview of the authority including sections 473.7 (duties
28of authority), 473.8 (emergency powers), 473.9 (set-aside
29definitions), 473.10 (reserve required), 473.13A (energy
30management improvements identified and implemented), 473.15
31(annual report), 473.19 (building energy management program),
32473.19A (building energy management fund), 473.20 (energy loan
33program), 473.20A (self-liquidating financing), and 473.41
34(energy city designation program).
35On July 1, 2024, the date of the repeal of the building
-12-1energy management fund in Code section 473.19A, the bill
2transfers any remaining moneys in the fund to the general fund
3of the state.
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