ARC 7904C
NATURAL RESOURCE COMMISSION[571]
Adopted and Filed
Rulemaking related to land and water conservation fund program
The Natural Resource Commission (Commission) hereby rescinds Chapter 27, “Lands and Waters Conservation Fund Program,” and adopts a new Chapter 27, “Land and Water Conservation Fund Program,” Iowa Administrative Code.
Legal Authority for Rulemaking
This rulemaking is adopted under the authority provided in Iowa Code section 455A.5(6)“a.”
State or Federal Law Implemented
This rulemaking implements, in whole or in part, Iowa Code sections 456A.27 to 456A.35.
Purpose and Summary
Chapter 27 contains the implementation rules for the Land and Water Conservation Fund (LWCF), a federal cost-share program for outdoor recreational resources. 
Consistent with Executive Order 10 (January 10, 2023) and the five-year review of rules in Iowa Code section 17A.7(2), this chapter was edited for length and clarity. Specifically, there were provisions in this chapter that were outdated, duplicative, and unnecessary. These provisions have been removed from the new chapter.
Public Comment and Changes to Rulemaking
Notice of Intended Action for this rulemaking was published in the Iowa Administrative Bulletin on December 27, 2023, as ARC 7232C. Public hearings were held on January 30, 2024, at 12 noon and January 31, 2024, at 4 p.m.	at Wallace State Office Building, Conference Room 4E, 502 East 9th Street, Des Moines, Iowa. No one attended the public hearings.
Three comments were received in response to the proposed changes. All three comments were generally supportive of the proposed rules.  All three comments discussed the increase in the assistance cap.  The Commission determined the amount identified in the proposed rulemaking would meet the objective of providing more funding to partners.
No changes from the Notice have been made.
Adoption of Rulemaking
This rulemaking was adopted by the Commission on April 11, 2024.
Fiscal Impact
This rulemaking has no fiscal impact to the State of Iowa.
Jobs Impact
After analysis and review of this rulemaking, no impact on jobs has been found.
Waivers
This rulemaking is subject to the waiver provisions of 571—Chapter 11. Any person who believes that the application of the discretionary provisions of this rulemaking would result in hardship or injustice to that person may petition the Commission for a waiver of the discretionary provisions, if any.
Review by Administrative Rules Review Committee
The Administrative Rules Review Committee, a bipartisan legislative committee which oversees rulemaking by executive branch agencies, may, on its own motion or on written request by any individual or group, review this rulemaking at its regular monthly meeting or at a special meeting. The Committee’s meetings are open to the public, and interested persons may be heard as provided in Iowa Code section 17A.8(6).
Effective Date
This rulemaking will become effective on June 5, 2024.
The following rulemaking action is adopted:
	Item 1. Rescind 571—Chapter 27 and adopt the following new chapter in lieu thereof:
CHAPTER 27
LAND AND WATER CONSERVATION FUND PROGRAM
571—27.1(456A) Purpose. The purposes of the federal Land and Water Conservation Fund, hereinafter referred to as the LWCF, are as stated in Section 1(b) of the Land and Water Conservation Fund Act of 1965 (54 U.S.C. §200301). The Iowa department of natural resources, hereinafter referred to as the department, acting through its director, will administer the LWCF for the same purposes at the state and local levels. All state and local projects will comply with the federal statute and program guidelines.
571—27.2(456A) Apportionment distribution.
	27.2(1) Iowa apportionment. The state expects to receive an annual apportionment from the LWCF. This annual apportionment, after deducting any amount necessary to cover the department’s costs of administering the program and state outdoor recreation planning costs, shall be divided into two shares for state and local entity grants with the local entity share being not less than 50 percent.
	27.2(2) Local share. The local share of the annual LWCF apportionment shall be available for local entity grants on an annual basis.
571—27.3(456A) Eligibility requirements. The following eligibility requirements shall apply to local entities:
	27.3(1) Participation in the LWCF shall be limited to county conservation boards and incorporated cities.
	27.3(2) A local entity shall have assessed outdoor recreation supplies, demands and needs and shall have allowed for input by affected citizens within the service area of any proposed project. Applications shall include documentation of these planning processes.
571—27.4(456A) Assistance ceiling. Local entities are eligible to receive annual assistance from the LWCF of up to $250,000 per proposal. No grant shall be approved that exceeds the allotment for the review period.
571—27.5(456A) Grant application submission.
	27.5(1) Form of application. Grant applications for both state and local projects shall be on forms and follow guidelines provided by the department. Projects selected for funding with land and water conservation assistance must be in accordance with state comprehensive outdoor recreation plan (SCORP) priorities.
	27.5(2) Application timing. For local projects, grant applications shall be reviewed and selected for funding on an annual basis as provided in subrule 27.2(2). The department shall publish on its website the date and time for submitting a funding proposal, providing at least 90 days’ notice. Applications must be submitted to the department as described on the website. State projects will be reviewed, evaluated and submitted to the National Park Service for approval as soon as practicable upon notification of Iowa’s apportionment.
	27.5(3) Local funding. An applicant shall certify that it has committed its share of project costs. Cash donations must be on deposit and a bond issue must have been passed by the electorate if such passage is necessary if either or both is a source of local funding.
	27.5(4) Development project application. An application for a development project grant shall include development on only one project site with the exception that an application may include development of a like nature only on several sites.
571—27.6(456A) Project review and selection.
	27.6(1) Review and selection committee for local projects.
	a. 	A five-member review and selection committee, hereinafter referred to as the committee, shall be composed of three staff members of the department as appointed by the director, one member appointed by the director with input from the Iowa association of county conservation boards, and one member appointed by the director with input from the Iowa league of cities and the Iowa parks and recreation association. Additionally, there shall be at least two alternates designated by the director with input from both associations and the league of cities. The committee shall determine which grant applications shall be selected for funding at the local level.
	b. 	Conflict of interest. An individual who is a member, volunteer, or employee of an entity that has submitted a project shall not serve on the scoring committee during that award cycle. Instead, one of the alternates shall review and score in the individual’s place.
	27.6(2) Consideration withheld. The committee will not consider any application that, on the date of the selection session, is not complete, or for which additional pertinent information has been requested and not received.
	27.6(3) Open project selection process for local projects. The department will create an open project selection process in program guidelines published at least 90 days prior to a grant application due date. The project selection process rating system will include, at minimum, the following components: objective criteria and standards based on local need and priorities identified in SCORP, process for public participation, assurances that the distribution of LWCF assistance is accomplished in a nondiscriminatory manner and conformance to LWCF eligibility and evaluation criteria.
	27.6(4) Open project selection process for state projects. State projects are chosen by the department based on priorities and funding.
571—27.7(456A) Public participation for local projects. All grant applicants will be advised of the time and place of the grant review session. A time period for public comment will be allowed at the review session.
571—27.8(456A) Director’s review. The director will review, amend, reject, or approve committee recommendations after each review period for local projects. Appeals of the director’s decision may be made to the commission.
571—27.9(456A) Federal review. All applications selected for fund assistance shall be submitted to the administering federal agency for final review and grant approval.
571—27.10(456A) Grant amendments. Projects for which grants have been approved may be amended. Amendments to increase project costs and fund assistance due to cost overruns will not be approved.
571—27.11(456A) Timely commencement of projects and project period. Grant recipients are expected to carry out their projects in an expeditious manner. Physical work on the project shall commence within one calendar year of the federal award date. Failure to do so may be cause for termination of the project and cancellation of the grant. Project period is assigned by federal statute.
571—27.12(456A) Reimbursements.
	27.12(1) Grant amount. Grant recipients are reimbursed up to 50 percent of all eligible costs incurred on a project up to the amount of the grant.
	27.12(2) Project billings. The following information applies to local grants only. Grant recipients shall submit billings for reimbursements on forms provided by the department or through a cover letter. No more than two project billings shall be allowed. A final billing shall be submitted within 90 days following project completion.
	27.12(3) Documentation. Grant recipients shall provide documentation as required by the department to substantiate all costs incurred on a project.
571—27.13(456A) Recordkeeping and retention. A grant recipient shall keep adequate records relating to its administration of a project, particularly relating to all incurred costs. These records shall be available for audit by appropriate personnel of the department, the state auditor’s office and the U.S. Department of the Interior.
These rules are intended to implement Iowa Code sections 456A.27 through 456A.33, 456A.34, and 456A.35.
[Filed 4/11/24, effective 6/5/24]
[Published 5/1/24]
Editor’s Note: For replacement pages for IAC, see IAC Supplement 5/1/24.