SF 2302 (LSB 5811XS (5) 86)

SENATE FILE 2302

BY  HOGG

A BILL FOR

An Act relating to the funding of the water quality initiative, by supporting selected watersheds, making appropriations to a water quality initiative fund for agriculture and a water quality initiative fund for communities, and including effective date provisions.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:

    Section 1.  Section 466B.2, Code 2016, is amended by adding the following new subsection:
   NEW SUBSECTION.  2A.  “Division” means the division of soil conservation and water quality created within the department of agriculture and land stewardship pursuant to section 159.5.
    Sec. 2.  Section 466B.3, subsection 6, Code 2016, is amended by adding the following new paragraph:
   NEW PARAGRAPH.  d.  The council shall solicit applications from persons seeking to participate in a regional watershed and clean water program created in section 466B.43. The council, with assistance from the division and department, shall select not more than two applications based on the following criteria:
   (1)  The watershed’s immediate need for improved surface water quality.
   (2)  The existence of political subdivisions and watershed management authorities created pursuant to subchapter II, actively engaged in water quality efforts.
   (3)  The degree to which the governing body of a watershed management authority, political subdivision, or other political unit demonstrates a willingness and has the resources to participate in a program.
   (4)  The degree to which the regional watershed and clean water program can attract additional funding from private and public sources including federal funding.
    Sec. 3.  Section 466B.41, subsections 3 and 4, Code 2016, are amended by striking the subsections.
    Sec. 4.  NEW SECTION.  466B.43  Water quality initiative —— regional watershed and clean water programs.
   1.  As part of the water quality initiative established pursuant to section 466B.42, the division, in cooperation with the department, shall administer three separate and distinct regional watershed and clean water programs. A program shall be established in each of the three following selected watersheds:
   a.  Not more than two regional watersheds designated by the water resources coordinating council.
   b.  The Raccoon river watershed.
   2.  The water quality goal of each regional watershed and clean water program is to reduce nitrates, nitrites, or other contaminants as designated by the division, in cooperation with the department, in untreated surface waters of each selected watershed so that by January 1, 2032, nitrates, nitrites, or other designated contaminants in those surface waters do not exceed the maximum contaminant levels established by the United States environmental protection agency under the Safe Drinking Water Act as defined in section 455B.291.
   3.  a.  The division, in cooperation with the department, shall adopt a regional watershed and clean water program plan for each of the three selected watersheds described in subsection 1. The plan shall do all of the following:
   (1)  To the extent feasible, use existing data and amend, augment, and consolidate existing plans or strategies which have improved or which promise to improve watershed management strategies for the selected watershed. 
   (2)  Provide water quality objectives to be achieved by dates identified in the plan in order to meet the selected watershed’s water quality goal described in subsection 2.
   (3)  Provide a framework for improving water quality by administering regional watershed and clean water projects.
   b.  The division shall cooperate with the department, interested government bodies, landowners, and stakeholders in adopting each regional watershed and clean water program plan. The division, in cooperation with the department, shall conduct public hearings throughout each selected watershed prior to and during the duration of the watershed and clean water program in order to do all of the following:
   (1)  Educate persons residing within the selected watershed regarding the regional watershed and clean water program.
   (2)  Recruit persons to participate in regional watershed and clean water projects.
   (3)  Receive comments regarding how to establish and improve the program or administer the projects.
   4.  The division shall be responsible for the implementation of regional watershed and clean water projects on cropland and pastureland within each selected watershed. A project may include but is not limited to in-field and edge-of-field practices, wetland restoration and construction, vegetated buffer strips, and other management practices.
   5.  The department, in cooperation with the division, shall be responsible for the implementation of watershed and clean water projects within cities and other communities within each selected watershed. A project may include but is not limited to improving wastewater, sewer and septic tank systems, storm water drainage, or sewage treatment services for both sewered and unsewered communities, including incorporated and unincorporated communities.
   6.  In establishing and administering regional watershed and clean water projects, the division and department shall identify and actively seek participation from persons who in the aggregate contribute at least ninety percent of the maximum contaminant levels. A person may participate in a project on a voluntary basis by entering into an agreement with either the division under subsection 4 or the department under subsection 5. An agreement may provide for the award of financial incentives to the participating person, which may be in the form of a loan, grant, or cost-share basis arrangement as determined by the division or department who enters into the agreement with the person. 
   7.  The division, in cooperation with the department, shall regularly monitor the surface water quality in each selected watershed to measure progress in achieving the objectives of the regional watershed and clean water program plan as described in subsection 3.
   8.  a.  The division, in cooperation with the department, shall prepare and submit interim reports to the governor and general assembly every two years beginning January 15, 2018, and ending January 15, 2030. The division, in cooperation with the department, shall prepare and submit a final report to the governor and general assembly by January 15, 2032. 
   b.  A report shall include all of the following:
   (1)  A description and update of the current status of the regional watershed and clean water programs and projects, and the expenditure of moneys appropriated to support the programs and projects.
   (2)  An evaluation of the successes and failures of each program and project in meeting the program’s water quality objectives and the water quality goal. If a program has failed to meet an objective, the report shall recommend methods to improve the program, including but not limited to amending statutes, administrative rules, or the program’s plan.
    Sec. 5.  Section 466B.45, subsections 1 and 3, Code 2016, are amended to read as follows:
   1.  A water quality initiative fund for agriculture is created in the state treasury under the management and control of the division.
   3.  Moneys in the fund are appropriated to the division and shall be used exclusively to carry out the provisions of this subchapter as determined by the division, and shall not require further special authorization by the general assembly.  The department may transfer moneys from this fund to the water quality initiative fund for communities created in section 466B.45A and may reallocate moneys from this fund to support regional watershed and clean water programs under section 466B.43 as necessary to accomplish the water quality objectives identified in the regional watershed and clean water program plan for that selected watershed.
    Sec. 6.  NEW SECTION.  466B.45A  Water quality initiative fund for communities.
   1.  A water quality initiative fund for communities is created in the state treasury under the management and control of the department.
   2.  The fund shall include moneys appropriated by the general assembly. The fund may include other moneys available to and obtained or accepted by the department, including moneys from public or private sources.
   3.  Moneys in the fund are appropriated to the department and shall be used exclusively to carry out the provisions of this subchapter as determined by the department, and shall not require further special authorization by the general assembly. The department may transfer moneys from this fund to the water quality initiative fund for agriculture created in section 466B.45 and may reallocate moneys from this fund to support the regional watershed and clean water programs under section 466B.43 as necessary to accomplish the water quality objectives identified in the regional watershed and clean water plan for that selected watershed.
   4.  a.  Notwithstanding section 12C.7, interest or earnings on moneys in the fund shall be credited to the fund.
   b.  Notwithstanding section 8.33, moneys appropriated or otherwise credited to the fund for a fiscal year shall not revert to the fund from which appropriated at the close of the fiscal year for which the appropriation was made but shall remain available for expenditure for the purposes designated until the close of the fiscal year that begins three years from the beginning date of the fiscal year for which the appropriation was made.
    Sec. 7.  APPROPRIATIONS —— WATER QUALITY INITIATIVE —— REGIONAL WATERSHED AND CLEAN WATER PROGRAMS.
   1.  There is appropriated from the general fund of the state to the soil conservation division of the department of agriculture and land stewardship for the fiscal year beginning July 1, 2015, and ending June 30, 2016, the following amount, or so much thereof as is necessary, to be used for the purposes designated:
   For deposit into the water quality initiative fund for agriculture as created in section 466B.45, as amended in this Act, for purposes of administering regional watershed and clean water programs, as provided in section 466B.43 as created in this Act, including the implementation of regional watershed and clean water projects on cropland and pastureland within each selected watershed:
   ...................................................................... $ 60,000,000

   2.  There is appropriated from the general fund of the state to the department of natural resources for the fiscal year beginning July 1, 2015, and ending June 30, 2016, the following amount, or so much thereof as is necessary, to be used for the purposes designated:
   For deposit into the water quality initiative fund for communities as created in section 466B.45A, as enacted in this Act, for purposes of administering regional watershed and clean water programs, as provided in section 466B.43 as created in this Act, including the implementation of regional watershed and clean water projects within cities and other communities within each selected watershed:
   ...................................................................... $ 30,000,000

   3.  Notwithstanding section 8.33, moneys appropriated for the fiscal year beginning July 1, 2015, in this section that remain unencumbered or unobligated at the close of the fiscal year shall not revert but shall remain available to be used for the purposes designated until January 1, 2032.
    Sec. 8.  EFFECTIVE UPON ENACTMENT.  This Act, being deemed of immediate importance, takes effect upon enactment.
EXPLANATION
The inclusion of this explanation does not constitute agreement with

the explanation’s substance by the members of the general assembly.
   This bill relates to the state’s water quality initiative that provides for the assessment and reduction of nutrients in this state’s watersheds, including regional watersheds (Code section 466B.42). The bill provides programs to support three watersheds, including two regional watersheds selected by the water resources coordinating council (Code section 466B.3 as amended) and the Raccoon river watershed. The bill appropriates moneys for the fiscal year beginning July 1, 2015, and ending June 30, 2016, to two funds: (1) the water quality initiative fund for agriculture administered by the division of soil conservation and water quality and (2) the water quality initiative fund for communities administered by the department of natural resources. The goal for each program is to reduce nitrates, nitrites, or other contaminants designated by the division so that by January 1, 2032, contaminants in surface waters do not exceed the maximum contaminant levels established by the United States environmental protection agency under the Safe Drinking Water Act. The division, in cooperation with the department, must prepare and submit interim reports to the governor and general assembly every two years, with a final report to be delivered January 15, 2032.
   The bill takes effect upon enactment.