House
Study
Bill
135
-
Introduced
HOUSE
FILE
_____
BY
(PROPOSED
COMMITTEE
ON
AGRICULTURE
BILL
BY
CHAIRPERSON
HEIN)
A
BILL
FOR
An
Act
relating
to
water
quality
by
providing
for
1
appropriations
from
the
rebuild
Iowa
infrastructure
fund,
2
creating
a
water
quality
infrastructure
fund,
establishing
3
new
water
quality
programs,
providing
for
cost-share
4
programs
for
infrastructure
on
agricultural
land
under
the
5
water
quality
initiative,
creating
a
state
water
service
6
excise
tax
and
a
related
sales
tax
exemption,
making
7
appropriations
and
other
changes
properly
related
to
water
8
quality,
and
including
retroactive
applicability
provisions.
9
BE
IT
ENACTED
BY
THE
GENERAL
ASSEMBLY
OF
THE
STATE
OF
IOWA:
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Section
1.
Section
8.57,
subsection
5,
Code
2017,
is
amended
1
by
adding
the
following
new
paragraph:
2
NEW
PARAGRAPH
.
0h.
(1)
Notwithstanding
paragraph
“c”
of
3
this
subsection,
there
is
appropriated
from
the
rebuild
Iowa
4
infrastructure
fund
to
the
water
quality
infrastructure
fund
5
created
in
section
8.57B
the
following
amounts:
6
(a)
For
the
fiscal
year
beginning
July
1,
2017,
and
ending
7
June
30,
2018,
five
million
dollars.
8
(b)
For
the
fiscal
year
beginning
July
1,
2018,
and
ending
9
June
30,
2019,
six
million
five
hundred
thousand
dollars.
10
(c)
For
the
fiscal
year
beginning
July
1,
2019,
and
ending
11
June
30,
2020,
eleven
million
five
hundred
thousand
dollars.
12
(d)
For
the
fiscal
year
beginning
July
1,
2020,
and
ending
13
June
30,
2021,
sixteen
million
five
hundred
thousand
dollars.
14
(e)
For
the
fiscal
year
beginning
July
1,
2021,
and
ending
15
June
30,
2022,
sixteen
million
five
hundred
thousand
dollars.
16
(f)
For
the
fiscal
year
beginning
July
1,
2022,
and
ending
17
June
30,
2023,
twenty-two
million
dollars.
18
(g)
For
the
fiscal
year
beginning
July
1,
2023,
and
ending
19
June
30,
2024,
twenty-two
million
dollars.
20
(h)
For
the
fiscal
year
beginning
July
1,
2024,
and
ending
21
June
30,
2025,
twenty-two
million
dollars.
22
(i)
For
the
fiscal
year
beginning
July
1,
2025,
and
ending
23
June
30,
2026,
twenty-two
million
dollars.
24
(j)
For
the
fiscal
year
beginning
July
1,
2026,
and
ending
25
June
30,
2027,
twenty-two
million
dollars.
26
(k)
For
the
fiscal
year
beginning
July
1,
2027,
and
ending
27
June
30,
2028,
twenty-two
million
dollars.
28
(l)
For
the
fiscal
year
beginning
July
1,
2028,
and
ending
29
June
30,
2029,
twenty-two
million
dollars.
30
(m)
For
the
fiscal
year
beginning
July
1,
2029,
and
ending
31
June
30,
2030,
twenty-two
million
dollars.
32
(2)
This
paragraph
“0h”
is
repealed
on
January
1,
2031.
33
Sec.
2.
NEW
SECTION
.
8.57B
Water
quality
infrastructure
34
fund
——
creation
——
appropriations.
35
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1.
A
water
quality
infrastructure
fund
is
created
within
1
the
division
of
soil
conservation
and
water
quality
of
the
2
department
of
agriculture
and
land
stewardship.
The
fund
3
shall
consist
of
moneys
appropriated
from
the
rebuild
Iowa
4
infrastructure
fund
pursuant
to
section
8.57,
subsection
5,
5
paragraph
“0h”
.
6
2.
The
fund
shall
be
separate
from
the
general
fund
of
the
7
state
and
the
balance
in
the
fund
shall
not
be
considered
part
8
of
the
balance
of
the
general
fund
of
the
state.
However,
the
9
fund
shall
be
considered
a
special
account
for
the
purposes
10
of
section
8.53,
relating
to
generally
accepted
accounting
11
principles.
12
3.
Moneys
in
the
fund
are
appropriated
to
the
division
13
of
soil
conservation
and
water
quality
of
the
department
of
14
agriculture
and
land
stewardship
for
the
exclusive
purpose
of
15
supporting
water
quality
agriculture
infrastructure
programs
16
created
in
section
466B.43.
17
4.
Notwithstanding
section
8.33,
moneys
in
the
fund
18
that
remain
unencumbered
or
unobligated
at
the
close
of
a
19
fiscal
year
shall
not
revert
but
shall
remain
available
for
20
expenditure
for
the
purposes
designated.
Notwithstanding
21
section
12C.7,
subsection
2,
interest
or
earnings
on
moneys
in
22
the
fund
shall
be
credited
to
the
fund.
23
5.
This
section
is
repealed
on
the
date
that
all
moneys
24
transferred
to
the
water
quality
infrastructure
fund
from
25
the
rebuild
Iowa
infrastructure
fund
pursuant
to
section
26
8.57,
subsection
5,
paragraph
“0h”
,
including
any
interest
27
or
earnings
on
such
moneys
credited
to
the
water
quality
28
infrastructure
fund,
are
expended
by
the
division
of
soil
29
conservation
and
water
quality
of
the
department
of
agriculture
30
and
land
stewardship,
and
the
balance
of
the
water
quality
31
infrastructure
fund
is
zero.
The
director
of
the
division
32
of
soil
conservation
and
water
quality
of
the
department
of
33
agriculture
and
land
stewardship
shall
notify
the
Iowa
Code
34
editor
of
this
occurrence.
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_____
Sec.
3.
NEW
SECTION
.
16.140
Water
quality
protection
and
1
wastewater
treatment
grant
program
——
fund.
2
1.
As
used
in
this
section,
unless
the
context
otherwise
3
requires:
4
a.
“Clean
Water
Act”
means
the
same
as
defined
in
section
5
16.131A.
6
b.
“Eligible
entity”
means
either
of
the
following:
7
(1)
An
entity
engaged
in
an
industry
identified
in
the
Iowa
8
nutrient
reduction
strategy,
as
determined
by
the
authority,
9
which
industry
is
or
will
be
required
pursuant
to
the
Iowa
10
nutrient
reduction
strategy
to
collect
data
on
the
source,
11
concentration,
and
mass
of
total
nitrogen
or
total
phosphorus
12
in
its
effluent,
and
to
evaluate
alternatives
for
reducing
the
13
amount
of
nutrients
in
its
discharge.
14
(2)
An
entity
implementing
technology
improvements
to
15
reduce
nutrients
in
its
discharge.
16
c.
“Iowa
nutrient
reduction
strategy”
means
a
water
17
quality
initiative
developed
and
updated
by
the
department
of
18
agriculture
and
land
stewardship,
the
department
of
natural
19
resources,
and
the
college
of
agriculture
and
life
sciences
at
20
Iowa
state
university
of
science
and
technology
in
order
to
21
assess
and
reduce
nutrients
in
this
state’s
watersheds
that
22
utilizes
a
pragmatic,
strategic,
and
coordinated
approach
with
23
the
goal
of
accomplishing
reductions
over
time.
24
d.
“Municipality”
means
a
city
or
a
rural
water
district
or
25
association
empowered
by
law
to
provide
sewage
collection
and
26
treatment
services
or
drinking
water.
27
e.
“Program”
means
the
water
quality
protection
and
28
wastewater
treatment
grant
program
created
in
this
section.
29
f.
“Safe
Drinking
Water
Act”
means
the
same
as
defined
in
30
section
16.131A.
31
g.
“Source
water
protection
project”
means
a
project
or
32
activity
designed
to
prevent
pollutants
from
entering
public
33
drinking
water
sources.
34
h.
“Wastewater
infrastructure
improvement”
includes
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the
acquisition,
construction,
reconstruction,
extension,
1
equipping,
improvement,
or
rehabilitation
of
any
works
or
2
facilities
useful
for
the
collection,
treatment,
and
disposal
3
of
sewage
or
industrial
waste
in
a
sanitary
manner,
including
4
treatment
works
as
defined
in
section
212
of
the
Clean
Water
5
Act,
and
including
the
implementation
and
development
of
6
sponsor
projects
under
section
455B.199.
7
i.
“Water
infrastructure
improvement”
includes
the
8
acquisition,
construction,
reconstruction,
extending,
9
remodeling,
improving,
repairing,
or
equipping
of
waterworks,
10
water
mains,
extensions,
or
treatment
facilities
useful
for
11
providing
potable
water
to
residents
served
by
a
water
system,
12
including
the
acquisition
of
real
property
needed
for
such
13
purposes,
and
such
other
purposes
and
programs
as
may
be
14
authorized
under
the
Safe
Drinking
Water
Act.
15
2.
The
Iowa
finance
authority
shall
establish
and
16
administer
a
water
quality
protection
and
wastewater
treatment
17
grant
program
for
the
purpose
of
providing
financial
assistance
18
in
the
form
of
grants
to
enhance
water
quality,
upgrade
water
19
and
wastewater
infrastructure,
and
to
implement
the
Iowa
20
nutrient
reduction
strategy.
The
program
shall
be
administered
21
in
accordance
with
rules
adopted
by
the
authority
pursuant
to
22
chapter
17A.
23
3.
a.
A
water
quality
protection
and
wastewater
treatment
24
grant
fund
is
created
in
the
state
treasury
and
shall
consist
25
of
appropriations
made
to
the
fund,
transfers
of
interest,
26
earnings,
moneys
from
other
funds
as
provided
by
law,
and
27
moneys
accepted
by
the
authority
for
deposit
in
the
fund
28
from
other
public
or
private
sources.
Moneys
credited
29
or
transferred
to
the
fund
pursuant
to
section
16.198
are
30
appropriated
to
the
authority
for
purposes
of
the
program.
31
Moneys
in
the
fund
shall
be
used
exclusively
for
purposes
of
32
the
program.
33
b.
Notwithstanding
section
8.33,
moneys
in
the
fund
34
that
remain
unencumbered
or
unobligated
at
the
close
of
a
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fiscal
year
shall
not
revert
but
shall
remain
available
for
1
expenditure
for
the
purposes
designated.
Notwithstanding
2
section
12C.7,
subsection
2,
interest
or
earnings
on
moneys
in
3
the
fund
shall
be
credited
to
the
fund.
4
4.
Grants
may
be
awarded
under
the
program
for
any
of
the
5
following:
6
a.
To
a
municipality
or
an
eligible
entity
participating
in
7
a
nutrient
reduction
exchange,
for
the
purpose
of
purchasing
8
nutrient
reduction
credits
or
for
implementing
water
quality
9
practices
as
described
in
the
Iowa
nutrient
reduction
strategy
10
in
order
to
comply
with
technology-based
effluent
nutrient
11
limits
at
a
facility.
For
purposes
of
this
paragraph,
“nutrient
12
reduction
credit”
and
“nutrient
reduction
exchange”
both
mean
the
13
same
as
defined
in
section
16.206,
section
1,
paragraph
“d”
.
14
b.
To
a
municipality
or
an
eligible
entity
for
up
to
fifty
15
percent
of
the
costs
associated
with
conducting
economic
and
16
technical
feasibility
studies
or
developing
implementation
17
plans
and
reports
required
by
the
Iowa
nutrient
reduction
18
strategy.
19
c.
To
a
municipality
for
a
source
water
protection
project.
20
d.
To
a
municipality
or
an
eligible
entity
for
water
21
infrastructure
improvements
or
for
wastewater
infrastructure
22
improvements.
23
5.
Priority
for
grants
shall
be
given
to
projects
or
24
activities
that
will
provide
improvement
to
water
quality
in
25
the
relevant
watershed.
26
6.
Priority
for
grants
shall
be
given
to
projects
or
27
activities
that
also
have
private
financing,
or
financing
28
pursuant
to
section
16.131
under
the
water
pollution
control
29
works
and
drinking
water
facilities
financing
program
created
30
pursuant
to
section
455B.294,
or
other
federal
or
state
31
financing.
32
7.
Grants
awarded
under
the
program
shall
not
exceed
five
33
hundred
thousand
dollars
per
recipient.
34
8.
By
October
1
of
each
year,
the
authority
shall
submit
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a
report
to
the
governor
and
the
general
assembly
itemizing
1
expenditures
under
the
program
during
the
previous
fiscal
year.
2
9.
a.
Beginning
September
1,
2027,
and
every
ten
years
3
thereafter,
a
program
review
committee
is
established
for
4
purposes
of
reviewing
the
program.
By
December
1
of
the
5
same
year,
the
review
committee
shall
file
a
report
with
6
the
governor
and
the
general
assembly
that
reviews
the
7
effectiveness
of
the
program
during
the
previous
ten
fiscal
8
years.
9
b.
The
program
review
committee
shall
consist
of
the
10
following
members:
11
(1)
The
governor
or
the
governor’s
designee.
12
(2)
The
secretary
of
agriculture
or
the
secretary’s
13
designee.
14
(3)
The
executive
director
of
the
authority
or
the
executive
15
director’s
designee.
16
(4)
The
director
of
the
department
of
natural
resources
or
17
the
director’s
designee.
18
(5)
Four
members
of
the
general
assembly,
with
two
from
the
19
senate
and
two
from
the
house
of
representatives
and
not
more
20
than
one
member
from
each
chamber
being
from
the
same
political
21
party.
The
two
senators
shall
be
designated
one
member
each
22
by
the
president
of
the
senate,
after
consultation
with
the
23
majority
leader
of
the
senate,
and
by
the
minority
leader
of
24
the
senate.
The
two
representatives
shall
be
designated
one
25
member
each
by
the
speaker
of
the
house
of
representatives,
26
after
consultation
with
the
majority
leader
of
the
house
of
27
representatives,
and
by
the
minority
leader
of
the
house
of
28
representatives.
29
c.
Staffing
services
shall
be
provided
by
the
authority.
30
Sec.
4.
NEW
SECTION
.
16.198
Water
quality
financial
31
assistance
fund.
32
1.
A
water
quality
financial
assistance
fund
is
created
in
33
the
state
treasury.
34
2.
The
fund
shall
consist
of
all
of
the
following:
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a.
(1)
Moneys
transferred
to
the
fund
pursuant
to
section
1
423G.6.
2
(2)
This
paragraph
“a”
is
repealed
upon
the
date
on
which
3
chapter
423G
is
repealed
pursuant
to
section
423G.7.
4
b.
Appropriations
made
to
the
fund
and
transfers
of
5
interest,
earnings,
and
moneys
from
other
funds
as
provided
by
6
law.
7
3.
For
each
fiscal
year
in
the
period
beginning
July
1,
8
2017,
and
ending
when
chapter
423G
is
repealed
pursuant
to
9
section
423G.7,
there
is
appropriated
the
following
amounts
of
10
the
balance
of
the
fund
for
the
following
purposes:
11
a.
One-sixth
of
the
balance
of
the
fund
to
the
Iowa
finance
12
authority
to
be
credited
to
the
water
quality
protection
and
13
wastewater
treatment
grant
fund
created
pursuant
to
section
14
16.140,
subsection
3.
15
b.
Five-sixths
of
the
balance
of
the
fund
to
the
Iowa
16
finance
authority
to
be
credited
to
the
water
quality
project
17
financial
assistance
fund
created
pursuant
to
section
16.204.
18
4.
Moneys
in
the
fund
are
not
subject
to
section
8.33.
19
Notwithstanding
section
12C.7,
subsection
2,
interest
or
20
earnings
on
moneys
in
the
fund
shall
be
credited
to
the
fund.
21
Sec.
5.
NEW
SECTION
.
16.201
Definitions.
22
As
used
in
this
part,
unless
the
context
otherwise
requires:
23
1.
“Committee”
means
the
water
quality
project
financing
24
committee
created
in
section
16.205,
subsection
4.
25
2.
“Eligible
entity”
means
a
financing
entity
meeting
the
26
requirements
of
section
16.206,
as
determined
by
the
committee.
27
3.
“Financing
entity”
means
two
or
more
persons
that
have
28
entered
into
an
agreement
for
purposes
of
joint
financing
of
a
29
project
under
the
program.
A
financing
entity
may
include
but
30
is
not
limited
to
a
governmental
body
such
as
a
state
agency
or
31
a
political
subdivision
of
the
state,
a
city
or
a
city
utility,
32
a
public
utility
as
defined
in
section
476.1
that
furnishes
33
drinking
water,
sanitary
sewage,
or
storm
water
services
to
the
34
public
for
compensation,
a
county,
a
rural
water
district
or
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association,
a
soil
and
water
conservation
district,
a
sanitary
1
district,
a
subdistrict
of
any
of
the
foregoing
districts,
a
2
governmental
body
or
corporation
empowered
to
provide
sewage
3
collection
and
treatment
services
or
drinking
water,
an
entity
4
jointly
exercising
governmental
powers
pursuant
to
chapter
28E
5
or
28F,
or
any
other
combination
of
two
or
more
public
agencies
6
or
private
agencies
as
defined
in
section
28E.2,
acting
jointly
7
under
Iowa
law
in
connection
with
a
project.
8
4.
“Iowa
nutrient
reduction
strategy”
means
a
water
9
quality
initiative
developed
and
updated
by
the
department
of
10
agriculture
and
land
stewardship,
the
department
of
natural
11
resources,
and
the
college
of
agriculture
and
life
sciences
at
12
Iowa
state
university
of
science
and
technology
in
order
to
13
assess
and
reduce
nutrients
in
this
state’s
watersheds
that
14
utilizes
a
pragmatic,
strategic,
and
coordinated
approach
with
15
the
goal
of
accomplishing
reductions
over
time.
16
5.
“Loan
recipient”
means
an
eligible
entity
that
has
17
received
a
loan
under
the
program.
18
6.
“Program”
means
the
water
quality
project
financial
19
assistance
program
created
in
this
part.
20
7.
“Project”
means
any
combination
of
works,
facilities,
21
improvements,
structures,
developments,
tasks,
activities,
22
constructions,
modifications,
operations,
or
practices
designed
23
to
improve
water
quality
or
water
resource
management
that
are
24
proposed
by
an
eligible
entity
and
approved
by
the
committee.
25
“Project”
includes
but
is
not
limited
to
the
following:
26
a.
A
project
meeting
the
requirements
of
part
2
of
this
27
subchapter.
28
b.
A
project,
operation,
or
practice
undertaken
or
carried
29
out
pursuant
to
chapter
161A,
161C,
161E,
or
161F.
30
c.
A
project
meeting
the
requirements
of
a
sponsor
project
31
under
section
455B.199.
32
d.
Other
water
resource
restoration
projects
as
defined
in
33
section
384.80,
including
ones
financed
pursuant
to
section
34
28F.1.
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e.
An
agricultural
nonpoint
source
project
eligible
for
a
1
water
quality
agriculture
infrastructure
program
under
section
2
466B.43.
3
8.
“Revolving
fund”
means
the
fund
created
in
section
4
16.204.
5
Sec.
6.
NEW
SECTION
.
16.202
Water
quality
project
financial
6
assistance
program
——
funding
——
bonds
and
notes.
7
1.
The
authority
shall
cooperate
with
the
department
of
8
natural
resources
and
the
department
of
agriculture
and
land
9
stewardship
in
the
creation,
administration,
and
financing
of
10
the
program
established
in
this
part.
11
2.
The
authority
may
issue
its
bonds
and
notes
until
June
12
30,
2042,
for
the
purposes
of
this
part,
including
for
the
13
purposes
of
funding
the
program
established
under
section
14
16.205
and
of
funding
any
fund
or
account
created
under
section
15
16.204.
16
3.
The
authority
may
enter
into
one
or
more
loan
agreements
17
or
purchase
agreements
with
one
or
more
bondholders
or
18
noteholders
containing
the
terms
and
conditions
of
the
19
repayment
of
and
the
security
for
the
bonds
or
notes.
The
20
authority
and
the
bondholders
or
noteholders
or
a
trustee
21
agent
designated
by
the
authority
may
enter
into
agreements
to
22
provide
for
any
of
the
following:
23
a.
That
the
proceeds
of
the
bonds
and
notes
and
the
24
investments
of
the
proceeds
may
be
received,
held,
and
25
disbursed
by
the
authority
or
by
a
trustee
or
agent
designated
26
by
the
authority.
27
b.
That
the
bondholders
or
noteholders
or
a
trustee
or
28
agent
designated
by
the
authority
may
collect,
invest,
and
29
apply
the
amount
payable
under
the
loan
agreements
or
any
30
other
instruments
securing
the
debt
obligations
under
the
loan
31
agreements.
32
c.
That
the
bondholders
or
noteholders
may
enforce
the
33
remedies
provided
in
the
loan
agreements
or
other
instruments
34
on
their
own
behalf
without
the
appointment
or
designation
of
a
35
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trustee.
If
there
is
a
default
in
the
principal
of
or
interest
1
on
the
bonds
or
notes
or
in
the
performance
of
any
agreement
2
contained
in
the
loan
agreements
or
other
instruments,
the
3
payment
or
performance
may
be
enforced
in
accordance
with
the
4
loan
agreement
or
other
instrument.
5
d.
Other
terms
and
conditions
as
deemed
necessary
or
6
appropriate
by
the
authority.
7
4.
The
powers
granted
the
authority
under
this
section
8
are
in
addition
to
other
powers
contained
in
this
chapter.
9
All
other
provisions
of
this
chapter,
except
section
16.28,
10
subsection
4,
apply
to
bonds
or
notes
issued
and
powers
granted
11
to
the
authority
under
this
section
except
to
the
extent
they
12
are
inconsistent
with
this
section.
13
5.
All
bonds
or
notes
issued
by
the
authority
in
connection
14
with
the
program
are
exempt
from
taxation
by
this
state
and
the
15
interest
on
the
bonds
or
notes
is
exempt
from
state
income
tax.
16
Sec.
7.
NEW
SECTION
.
16.203
Security
——
reserve
funds
——
17
pledges
——
nonliability
——
irrevocable
contracts.
18
1.
The
authority
may
provide
in
the
resolution,
trust
19
agreement,
or
other
instrument
authorizing
the
issuance
of
its
20
bonds
or
notes
pursuant
to
section
16.202
that
the
principal
21
of,
premium,
and
interest
on
the
bonds
or
notes
are
payable
22
from
any
of
the
following
and
may
pledge
the
same
to
its
bonds
23
and
notes:
24
a.
The
income
and
receipts
or
other
moneys
derived
from
the
25
projects
financed
with
the
proceeds
of
the
bonds
or
notes.
26
b.
The
income
and
receipts
or
other
moneys
derived
from
27
designated
projects
whether
or
not
the
projects
are
financed
in
28
whole
or
in
part
with
the
proceeds
of
the
bonds
or
notes.
29
c.
The
amounts
on
deposit
in
the
revolving
fund.
30
d.
The
amounts
payable
to
the
authority
by
eligible
entities
31
pursuant
to
loan
agreements
with
eligible
entities.
32
e.
Any
other
funds
or
accounts
established
by
the
authority
33
in
connection
with
the
program
or
the
sale
and
issuance
of
its
34
bonds
or
notes.
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2.
The
authority
may
establish
reserve
funds
to
secure
1
one
or
more
issues
of
its
bonds
or
notes.
The
authority
may
2
deposit
in
a
reserve
fund
established
under
this
subsection
the
3
proceeds
of
the
sale
of
its
bonds
or
notes
and
other
moneys
4
that
are
made
available
from
any
other
source.
5
3.
It
is
the
intention
of
the
general
assembly
that
a
pledge
6
made
in
respect
of
bonds
or
notes
issued
under
this
part
shall
7
be
valid
and
binding
from
the
time
the
pledge
is
made,
that
the
8
moneys
or
property
so
pledged
and
received
after
the
pledge
9
by
the
authority
shall
immediately
be
subject
to
the
lien
of
10
the
pledge
without
physical
delivery
or
further
act,
and
that
11
the
lien
of
the
pledge
shall
be
valid
and
binding
as
against
12
all
parties
having
claims
of
any
kind
in
tort,
contract,
or
13
otherwise
against
the
authority
whether
or
not
the
parties
have
14
notice
of
the
lien.
Neither
the
resolution,
trust
agreement,
15
nor
any
other
instrument
by
which
a
pledge
is
created
needs
to
16
be
recorded
or
filed
under
the
Iowa
uniform
commercial
code,
17
chapter
554,
to
be
valid,
binding,
or
effective
against
the
18
parties.
19
4.
Neither
the
members
of
the
authority
nor
persons
20
executing
the
bonds
or
notes
are
liable
personally
on
the
bonds
21
or
notes
or
are
subject
to
personal
liability
or
accountability
22
by
reason
of
the
issuance
of
the
bonds
or
notes.
23
5.
The
bonds
or
notes
issued
by
the
authority
are
not
24
an
indebtedness
or
other
liability
of
the
state
or
of
a
25
political
subdivision
of
the
state
within
the
meaning
of
26
any
constitutional
or
statutory
debt
limitations
but
are
27
special
obligations
of
the
authority,
and
are
payable
solely
28
from
the
income
and
receipts
or
other
funds
or
property
of
29
the
authority,
and
the
amounts
on
deposit
in
the
revolving
30
fund,
and
the
amounts
payable
to
the
authority
under
its
loan
31
agreements
with
eligible
entities
to
the
extent
that
the
32
amounts
are
designated
in
the
resolution,
trust
agreement,
or
33
other
instrument
of
the
authority
authorizing
the
issuance
of
34
the
bonds
or
notes
as
being
available
as
security
for
such
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bonds
or
notes.
The
authority
shall
not
pledge
the
faith
or
1
credit
of
the
state
or
of
a
political
subdivision
of
the
state
2
to
the
payment
of
any
bonds
or
notes.
The
issuance
of
any
bonds
3
or
notes
by
the
authority
does
not
directly,
indirectly,
or
4
contingently
obligate
the
state
or
a
political
subdivision
of
5
the
state
to
apply
moneys
from,
or
levy
or
pledge
any
form
of
6
taxation
whatever
to,
the
payment
of
the
bonds
or
notes.
7
6.
It
is
the
intent
of
the
general
assembly,
and
the
state
8
hereby
pledges
to
the
holders
of
bonds
or
notes
issued
under
9
this
part,
that
the
state
will
not
limit
or
alter
the
rights
10
and
powers
vested
in
the
authority
to
fulfill
the
terms
of
a
11
contract
made
by
the
authority
with
respect
to
the
bonds
or
12
notes,
or
in
any
way
impair
the
rights
and
remedies
of
the
13
holders
until
the
bonds
or
notes,
together
with
the
interest
on
14
the
bonds
or
notes,
including
interest
on
unpaid
installments
15
of
interest,
and
all
costs
and
expenses
in
connection
with
an
16
action
or
proceeding
by
or
on
behalf
of
the
holders,
are
fully
17
met
and
discharged.
The
authority
is
authorized
to
include
18
this
pledge
and
agreement
of
the
state,
as
it
refers
to
holders
19
of
bonds
or
notes
of
the
authority,
in
a
contract
with
the
20
holders.
21
Sec.
8.
NEW
SECTION
.
16.204
Water
quality
project
financial
22
assistance
fund
——
other
funds
and
accounts.
23
1.
a.
A
water
quality
project
financial
assistance
24
fund
is
created
in
the
state
treasury
and
shall
consist
of
25
appropriations
made
to
the
fund,
moneys
credited
or
transferred
26
to
the
fund
pursuant
to
section
16.198,
and
transfers
of
27
interest,
earnings,
and
moneys
from
other
funds
as
provided
28
by
law.
The
fund
shall
be
administered
by
the
authority
as
a
29
revolving
fund.
30
b.
Moneys
in
the
fund
are
not
subject
to
section
8.33.
31
Notwithstanding
section
12C.7,
subsection
2,
interest
or
32
earnings
on
moneys
in
the
fund
shall
be
credited
to
the
fund.
33
c.
The
authority
shall
use
the
moneys
in
the
fund
to
provide
34
financial
assistance
to
eligible
entities
under
the
program
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_____
pursuant
to
section
16.205.
1
d.
The
authority
may
use
an
amount
of
not
more
than
one
2
percent
of
the
moneys
in
the
fund
for
administrative
purposes.
3
2.
The
authority
may
establish
and
maintain
other
funds
4
and
accounts
determined
to
be
necessary
to
carry
out
the
5
purposes
of
the
program
and
shall
provide
for
the
funding,
6
administration,
investment,
restrictions,
and
disposition
of
7
the
funds
and
accounts.
8
3.
Moneys
appropriated
to
and
used
by
the
authority
for
9
purposes
of
paying
the
costs
and
expenses
associated
with
10
the
administration
of
the
program
shall
be
administered
as
11
determined
by
the
authority.
12
4.
The
funds
or
accounts
held
by
the
authority,
or
a
trustee
13
acting
on
behalf
of
the
authority
pursuant
to
a
trust
agreement
14
related
to
the
program,
shall
not
be
considered
part
of
the
15
general
fund
of
the
state,
are
not
subject
to
appropriation
for
16
any
other
purpose
by
the
general
assembly,
and
in
determining
17
a
general
fund
balance
shall
not
be
included
in
the
general
18
fund
of
the
state,
but
shall
remain
in
the
funds
and
accounts
19
maintained
by
the
authority
or
trustee
pursuant
to
a
trust
20
agreement.
Funds
and
accounts
held
by
the
authority,
or
a
21
trustee
acting
on
behalf
of
the
authority
pursuant
to
a
trust
22
agreement
related
to
the
program,
are
separate
dedicated
funds
23
and
accounts
under
the
administration
and
control
of
the
24
authority
and
subject
to
section
16.31.
25
Sec.
9.
NEW
SECTION
.
16.205
Water
quality
project
financial
26
assistance
program
——
committee
created
——
rules
——
use
of
funds.
27
1.
The
authority,
in
cooperation
with
the
department
of
28
natural
resources
and
the
department
of
agriculture
and
land
29
stewardship,
shall
establish
and
administer
a
water
quality
30
project
financial
assistance
program.
The
purpose
of
the
31
program
shall
be
to
provide
financial
assistance
to
enhance
32
the
quality
of
surface
water
and
groundwater,
particularly
33
by
providing
financial
assistance
for
projects
designed
to
34
improve
water
quality
through
collaboration
between
point
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_____
and
nonpoint
sources.
The
authority
may
provide
financial
1
assistance
in
the
form
deemed
most
convenient
for
the
efficient
2
financing
of
projects,
including
loans,
forgivable
loans,
and
3
grants.
However,
the
authority
shall
administer
the
fund
and
4
the
program
in
such
a
manner
as
to
provide
a
permanent
source
5
of
water
quality
project
financial
assistance
to
eligible
6
entities.
7
2.
The
program
shall
be
administered
by
the
authority
8
in
accordance
with
rules
adopted
by
the
authority
pursuant
9
to
chapter
17A.
In
adopting
such
rules,
the
authority
shall
10
consult
with
the
department
of
natural
resources
and
the
11
department
of
agriculture
and
land
stewardship.
12
3.
The
authority
shall
process
and
review
financial
13
assistance
applications
and
make
recommendations
to
the
14
committee.
15
4.
a.
A
water
quality
project
financing
committee
is
16
created
to
consider
applications
for
financial
assistance
from
17
eligible
entities
and
approve
awards
of
financial
assistance
18
under
the
program.
The
committee
shall
consist
of
three
19
members,
one
appointed
by
the
executive
director
of
the
20
authority,
one
appointed
by
the
director
of
the
department
21
of
natural
resources,
and
one
appointed
by
the
secretary
of
22
agriculture.
23
b.
The
committee
shall
review
project
plans
submitted
24
pursuant
to
section
16.206,
negotiate
project
details
with
25
eligible
entities,
and
make
financial
assistance
awards.
The
26
provision
of
financial
assistance
under
the
program
shall
take
27
into
account
the
number
of
persons
comprising
an
eligible
28
entity
and
the
eligible
entity’s
financing
capacity
as
well
as
29
the
extent
to
which
the
proposed
projects
will
improve
water
30
quality.
31
c.
The
committee
shall
score
applications
for
financial
32
assistance
according
to
rules
adopted
pursuant
to
this
part.
33
The
committee
shall
only
provide
financial
assistance
to
34
eligible
entities
that
have
sufficient
financing
capacity
and
35
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_____
that
propose
a
plan
likely
to
make
progress
toward
achieving
1
the
goals
for
agricultural
and
nonpoint
sources
described
in
2
the
Iowa
nutrient
reduction
strategy.
3
5.
The
authority
shall
determine
the
interest
rate
4
and
repayment
terms
for
loans
made
under
the
program,
in
5
cooperation
with
the
department
of
natural
resources
and
6
the
department
of
agriculture
and
land
stewardship,
and
the
7
authority
shall
enter
into
loan
agreements
with
eligible
8
entities
in
compliance
with
and
subject
to
the
terms
and
9
conditions
of
the
program.
10
6.
If
a
drainage
district
is
a
party
to
a
chapter
28E
11
agreement
that
creates
a
financing
entity,
the
chapter
28E
12
agreement
shall
provide
that
the
drainage
district
shall
not
13
be
required
to
be
a
signatory
on
any
loan
agreement
entered
14
into
under
the
program,
and
the
authority
shall
not
require
15
the
drainage
district
to
be
a
signatory
on
any
loan
agreement
16
entered
into
under
the
program.
This
subsection
shall
not
be
17
construed
to
eliminate
or
in
any
way
restrict
any
existing
18
liability
protection
afforded
to
a
drainage
district
under
any
19
provision
of
law.
20
7.
The
authority
shall
adopt
rules
relating
to
the
21
proportional
liability,
if
any,
of
members
of
an
eligible
22
entity
when
such
eligible
entity
enters
into
a
loan
agreement
23
under
the
program.
24
8.
The
authority
may
charge
loan
recipients
fees
and
assess
25
costs
against
such
recipients
necessary
for
the
continued
26
operation
of
the
program.
Such
fees
and
costs
shall
not
exceed
27
the
costs
directly
associated
with
the
administration
of
the
28
program.
Fees
and
costs
collected
pursuant
to
this
subsection
29
shall
be
deposited
in
the
appropriate
fund
or
account
created
30
in
section
16.204.
31
9.
Financial
assistance
under
the
program
shall
be
used
by
32
eligible
entities
to
fund
projects
designed
to
improve
water
33
quality.
34
Sec.
10.
NEW
SECTION
.
16.206
Eligible
entities
——
project
35
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_____
plans
——
agreements
required.
1
1.
A
financing
entity
may
apply
to
the
authority
for
2
financial
assistance
under
the
program.
To
be
eligible,
a
3
financing
entity
shall
meet
the
following
requirements:
4
a.
The
financing
entity
shall
include
two
or
more
entities
5
acting
jointly
to
propose
a
project
plan
designed
to
improve
6
water
quality
in
a
local
area
or
watershed.
7
b.
The
plan
shall
include
one
or
more
projects
that
8
substantially
improve
water
quality
in
the
local
area
or
9
watershed.
Preference
shall
be
given
to
projects
that
will
10
have
the
greatest
impact
on
achieving
the
goals
of
the
Iowa
11
nutrient
reduction
strategy,
and
plans
designed
to
achieve
12
those
goals
shall
be
presumed
to
substantially
improve
water
13
quality
in
the
local
area
or
watershed.
14
c.
The
plan
shall
describe
in
detail
the
manner
in
which
15
the
projects
will
be
financed
and
undertaken,
including
the
16
sources
of
financing
for
the
projects
as
well
as
the
public
or
17
private
entities
that
will
be
receiving
the
revenues
and
how
18
such
revenues
will
be
spent
on
the
projects.
In
describing
the
19
projects
and
financing,
the
plan
should
attempt
to
quantify
20
the
amount
of
nutrient
reduction
to
be
achieved
under
the
21
plan
and
should
provide
a
reasonable
means
for
verification
22
of
the
amount
of
nutrient
reduction
after
the
projects
have
23
been
financed
and
completed.
Preference
shall
be
given
to
24
a
financing
entity
that
has
had
its
plan
evaluated
by
the
25
Iowa
nutrient
research
center
established
in
section
466B.47.
26
Preference
shall
also
be
given
to
a
financing
entity
that
has
27
contracted
with
the
Iowa
nutrient
research
center
to
verify
28
the
amount
of
nutrient
reduction
achieved
by
the
project
upon
29
project
completion.
30
d.
(1)
The
plan
may
include
a
nutrient
reduction
exchange
31
between
two
or
more
members
of
the
financing
entity.
A
plan
32
that
includes
a
nutrient
reduction
exchange
shall
be
presumed
33
to
substantially
improve
water
quality
in
the
local
area
or
34
watershed.
35
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41
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_____
(2)
For
purposes
of
this
paragraph:
1
(a)
“Nutrient
reduction”
means
a
reduction
in
nitrogen
or
2
phosphorus
as
measured
against
standards
or
goals
established
3
or
adopted
by
the
committee.
4
(b)
“Nutrient
reduction
credit”
means
an
amount
of
nutrient
5
reduction
expressed
as
a
unit
of
measurement
that
is
calculated
6
using
research-based
modeling
or
other
methods
established
or
7
adopted
by
the
committee.
8
(c)
“Nutrient
reduction
exchange”
means
an
agreement
between
9
one
or
more
point
source
or
nonpoint
source
contributors
10
and
one
or
more
other
parties
whereby
nutrient
reduction
11
credits
are
purchased,
sold,
traded,
or
exchanged
for
legal
12
consideration.
13
2.
Any
eligible
entity
receiving
financial
assistance
under
14
the
program
shall
enter
into
an
agreement
with
the
authority.
15
The
agreement
shall
include
standard
terms
for
the
receipt
of
16
program
funds
and
any
other
terms
the
authority
deems
necessary
17
and
convenient
for
the
efficient
administration
of
the
program.
18
Sec.
11.
Section
28F.1,
subsection
1,
Code
2017,
is
amended
19
to
read
as
follows:
20
1.
This
chapter
provides
a
means
for
the
joint
financing
21
by
public
agencies
of
works
or
facilities
useful
and
necessary
22
for
the
collection,
treatment,
purification,
and
disposal
23
in
a
sanitary
manner
of
liquid
and
solid
waste,
sewage,
and
24
industrial
waste,
facilities
used
for
the
conversion
of
solid
25
waste
to
energy,
facilities,
improvements,
or
projects
in
a
26
watershed
useful
for
flood
control,
erosion
control,
or
water
27
quality
restoration
by
a
water
utility,
wastewater
utility,
28
or
storm
water
utility,
whether
located
within
or
without
the
29
corporate
boundaries
of
a
municipal
corporation,
and
also
30
electric
power
facilities
constructed
within
the
state
of
31
Iowa,
except
that
hydroelectric
power
facilities
may
also
be
32
located
in
the
waters
and
on
the
dams
of
or
on
land
adjacent
33
to
either
side
of
the
Mississippi
or
Missouri
river
bordering
34
the
state
of
Iowa,
water
supply
systems,
swimming
pools
35
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_____
or
golf
courses.
This
chapter
applies
to
the
acquisition,
1
construction,
reconstruction,
ownership,
operation,
repair,
2
extension,
or
improvement
of
such
works
or
facilities,
by
a
3
separate
administrative
or
legal
entity
created
pursuant
to
4
chapter
28E
or
chapter
389
.
When
the
legal
entity
created
5
under
this
chapter
is
comprised
solely
of
cities,
counties,
6
and
sanitary
districts
established
under
chapter
358
,
or
any
7
combination
thereof
or
any
combination
of
the
foregoing
with
8
other
public
agencies,
the
entity
shall
be
both
a
corporation
9
and
a
political
subdivision
with
the
name
under
which
it
was
10
organized.
The
legal
entity
may
sue
and
be
sued,
contract,
11
acquire
and
hold
real
and
personal
property
necessary
for
12
corporate
purposes,
adopt
a
corporate
seal
and
alter
the
seal
13
at
pleasure,
and
execute
all
the
powers
conferred
in
this
14
chapter
.
15
Sec.
12.
Section
161A.7,
subsection
1,
paragraph
d,
Code
16
2017,
is
amended
to
read
as
follows:
17
d.
To
cooperate,
or
enter
into
agreements
with,
and
within
18
the
limits
of
appropriations
duly
made
available
to
it
by
law,
19
to
furnish
financial
or
other
aid
to
any
agency,
governmental
20
or
otherwise,
or
any
owner
or
occupier
of
lands
within
the
21
district,
in
the
carrying
on
of
erosion-control
and
watershed
22
protection
and
flood
prevention
operations
,
or
in
the
carrying
23
out
of
projects
or
operations
pursuant
to
paragraph
“q”
,
within
24
the
district,
subject
to
such
conditions
as
the
commissioners
25
may
deem
necessary
to
advance
the
purposes
of
this
chapter
.
26
Sec.
13.
Section
161A.7,
subsection
1,
Code
2017,
is
amended
27
by
adding
the
following
new
paragraphs:
28
NEW
PARAGRAPH
.
p.
To
apply
for
financial
assistance
under
29
the
water
quality
project
financial
assistance
program
under
30
sections
16.201
through
16.206.
31
NEW
PARAGRAPH
.
q.
To
carry
out
soil
erosion
control,
32
watershed
protection
or
improvement,
flood
prevention,
and
33
water
quality
protection
projects
and
operations
within
the
34
district,
including
but
not
limited
to
projects
and
operations
35
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H.F.
_____
to
support
water
protection
practices,
to
protect
this
1
state’s
groundwater
and
surface
water
from
point
and
nonpoint
2
sources
of
pollution,
including
but
not
limited
to
pollution
3
by
agricultural
drainage
wells,
sinkholes,
sedimentation,
4
or
chemical
pollutants,
to
reduce
or
remove
nutrients
and
5
pollution
in
or
from
surface
water
and
groundwater,
to
reduce
6
or
eliminate
nutrient
reduction
loads
to
surface
water
7
and
groundwater
from
both
point
and
nonpoint
sources,
to
8
maintain,
protect,
and
improve
the
quality
of
surface
water
and
9
groundwater,
and
to
achieve
or
further
any
of
the
goals
and
10
targets
described
in
the
Iowa
nutrient
reduction
strategy
as
11
defined
in
section
16.201.
12
Sec.
14.
Section
161C.1,
Code
2017,
is
amended
by
adding
the
13
following
new
subsection:
14
NEW
SUBSECTION
.
4A.
“Financing
entity”
means
the
same
as
15
defined
in
section
16.201.
16
Sec.
15.
Section
161C.2,
subsection
1,
paragraph
a,
Code
17
2017,
is
amended
to
read
as
follows:
18
a.
Each
soil
and
water
conservation
district,
alone
and
19
whenever
practical
in
conjunction
with
other
districts,
shall
20
financing
entities,
or
political
subdivisions
of
the
state,
21
or
other
local
agencies,
may
carry
out
district-wide
and
22
multiple-district
projects
to
support
soil
erosion
control,
23
water
resource
restoration
projects,
watershed
protection,
24
flood
prevention,
and
water
quality
protection
practices
,
25
projects,
and
operations
in
the
district
or
districts,
26
including
but
not
limited
to
projects
carried
out
in
order
to
27
protect
this
state’s
groundwater
and
surface
water
from
point
28
and
nonpoint
sources
of
contamination
pollution
,
including
but
29
not
limited
to
contamination
pollution
by
agricultural
drainage
30
wells,
sinkholes,
sedimentation,
or
chemical
pollutants
,
as
31
described
in
the
Iowa
nutrient
reduction
strategy
as
defined
32
in
section
16.201
.
33
Sec.
16.
Section
161C.3,
Code
2017,
is
amended
to
read
as
34
follows:
35
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_____
161C.3
Cooperation
with
other
agencies.
1
Soil
and
water
conservation
districts
may
enter
into
2
agreements
with
the
United
States,
as
provided
by
state
law,
3
or
with
the
state
of
Iowa
or
any
agency
of
the
state,
any
4
other
soil
and
water
conservation
district,
or
other
political
5
subdivision
of
this
state,
or
any
financing
entity,
or
other
6
local
agency,
for
cooperation
in
preventing,
controlling,
or
7
attempting
to
prevent
or
control
contamination
pollution
of
8
groundwater
or
surface
water
by
point
and
nonpoint
sources
9
of
pollution.
Soil
and
water
conservation
districts
may
10
accept,
as
provided
by
state
law,
any
money
disbursed
for
water
11
quality
preservation
purposes
by
the
federal
government
or
any
12
agency
of
the
federal
government,
and
expend
the
money
for
the
13
purposes
for
which
it
was
received.
14
Sec.
17.
Section
161E.1,
Code
2017,
is
amended
to
read
as
15
follows:
16
161E.1
Authority
of
board.
17
1.
If
a
county,
soil
and
water
conservation
district,
18
subdistrict
of
a
soil
and
water
conservation
district,
19
financing
entity,
or
political
subdivision
of
the
state,
or
20
other
local
agency
engages
or
participates
in
or
carries
out
21
a
project
for
flood
or
soil
erosion
control,
a
water
resource
22
restoration
project,
watershed
protection
or
improvement
23
project,
flood
prevention,
water
quality
protection
project
or
24
operation,
including
but
not
limited
to
a
project
or
operation
25
described
in
the
Iowa
nutrient
reduction
strategy
as
defined
26
in
section
16.201,
within
a
county,
or
engages
or
participates
27
in
the
conservation,
development,
utilization,
and
disposal
28
of
water,
in
cooperation
with
the
federal
government,
or
a
29
department
or
agency
of
the
federal
government,
in
cooperation
30
with
other
districts,
subdistricts,
financing
entities,
31
political
subdivisions,
or
other
local
agencies,
the
counties
32
in
which
the
project
is
carried
on
may,
through
the
board
of
33
supervisors
or
through
an
intergovernmental
agreement
under
34
chapter
28E
or
chapter
28F
,
construct,
operate,
and
maintain
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H.F.
_____
the
project
on
lands
under
the
control
or
jurisdiction
of
the
1
county
dedicated
to
county
use,
or
furnish
financial
and
other
2
assistance
in
connection
with
the
projects
or
operations
.
3
Flood
control
,
soil
erosion
control,
watershed
protection
4
projects,
flood
prevention,
water
quality
improvement
projects,
5
water
resource
restoration
projects,
and
watershed
improvement
6
projects
and
operations,
including
but
not
limited
to
projects
7
or
operations
described
in
the
Iowa
nutrient
reduction
strategy
8
as
defined
in
section
16.201,
are
presumed
to
be
for
the
9
protection
of
the
tax
base
of
the
county,
for
the
protection
of
10
public
roads
and
lands,
and
for
the
protection
of
the
public
11
health,
sanitation,
safety,
and
general
welfare.
12
2.
For
purposes
of
this
chapter,
“financing
entity”
means
13
the
same
as
defined
in
section
16.201.
14
Sec.
18.
Section
161E.2,
Code
2017,
is
amended
to
read
as
15
follows:
16
161E.2
Federal
aid.
17
A
county
may,
in
accordance
with
this
chapter
,
accept
18
federal
funds
for
aid
in
a
project
for
flood
or
soil
erosion
19
control,
flood
prevention,
or
the
conservation,
development,
20
utilization,
and
disposal
of
water,
and
may
cooperate
with
21
the
federal
government
or
a
department
or
agency
of
the
22
federal
government,
a
soil
and
water
conservation
district,
23
subdistrict
of
a
soil
and
water
conservation
district,
24
political
subdivision
of
the
state,
or
other
local
agency,
or
25
a
financing
entity,
and
the
county
may
assume
a
proportion
of
26
the
cost
of
the
project
as
deemed
appropriate,
and
may
assume
27
the
maintenance
cost
of
the
project
on
lands
under
the
control
28
or
jurisdiction
of
the
county
which
will
not
be
discharged
by
29
federal
aid
or
grant.
30
Sec.
19.
Section
161E.3,
Code
2017,
is
amended
to
read
as
31
follows:
32
161E.3
Cooperation.
33
The
counties,
soil
and
water
conservation
districts,
34
and
subdistricts
of
soil
and
water
conservation
districts
35
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_____
concerned
,
shall
advise
and
consult
with
each
other
,
upon
the
1
request
of
any
of
them
or
any
affected
landowners
,
and
may
2
cooperate
with
each
other
or
with
other
state
subdivisions
or
3
instrumentalities
,
and
affected
landowners,
as
well
as
with
the
4
federal
government
or
a
department
or
agency
of
the
federal
5
government,
or
a
financing
entity
or
other
local
agency,
to
6
construct,
operate,
and
maintain
suitable
projects
for
flood
7
or
soil
erosion
control,
water
resource
restoration
projects,
8
watershed
protection
or
improvement
projects,
flood
prevention,
9
water
quality
protection
or
improvement
projects,
or
the
10
conservation,
development,
utilization,
and
disposal
of
water
11
on
public
roads
or
other
public
lands
or
other
land
granted
12
county
use.
13
Sec.
20.
Section
161E.5,
Code
2017,
is
amended
to
read
as
14
follows:
15
161E.5
Maintenance
cost.
16
If
construction
of
projects
has
been
completed
by
the
soil
17
and
water
conservation
district,
subdistricts
of
soil
and
18
water
conservation
districts,
political
subdivisions
of
the
19
state,
or
other
local
agencies,
or
the
federal
government,
or
a
20
department
or
agency
of
the
federal
government,
or
a
financing
21
entity
on
private
lands
under
the
easement
granted
to
the
22
county,
only
the
cost
of
maintenance
may
be
assumed
by
the
23
county.
24
Sec.
21.
Section
161E.9,
Code
2017,
is
amended
to
read
as
25
follows:
26
161E.9
Tax
levy.
27
The
county
board
of
supervisors
may
annually
levy
a
tax
not
28
to
exceed
six
and
three-fourths
cents
per
thousand
dollars
of
29
assessed
value
of
all
agricultural
lands
in
the
county,
to
30
be
used
for
flood
and
soil
erosion
control,
water
resource
31
restoration
projects,
watershed
protection
or
improvement
32
projects,
flood
prevention
and
water
quality
protection
33
projects
and
operations
within
a
county,
including
but
not
34
limited
to
projects
or
operations
described
in
the
Iowa
35
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_____
nutrient
reduction
strategy
as
defined
in
section
16.201,
and
1
including
acquisition
of
land
or
interests
in
land,
and
repair,
2
alteration,
maintenance,
and
operation
of
works
of
improvement
3
on
lands
under
the
control
or
jurisdiction
of
the
county
as
4
provided
in
this
chapter
,
or
to
furnish
financial
assistance
in
5
connection
with
such
projects
and
operations
.
6
Sec.
22.
Section
161E.10,
Code
2017,
is
amended
to
read
as
7
follows:
8
161E.10
Assumption
of
obligations.
9
This
chapter
contemplates
that
actual
direction
of
the
10
project,
or
projects,
and
the
actual
work
done
in
connection
11
with
them
the
projects
,
will
be
assumed
by
the
soil
and
water
12
conservation
district,
a
subdistrict
of
a
soil
and
water
13
conservation
district,
or
the
federal
government,
and
that
the
14
county
or
other
state
subdivisions
or
instrumentalities
or
15
financing
entities
jointly
will
meet
the
obligation
required
16
for
federal
cooperation
and
may
make
proper
commitment
for
17
the
care
and
maintenance
of
the
project
after
its
completion
18
for
the
general
welfare
of
the
public
and
residents
of
the
19
respective
counties.
20
Sec.
23.
Section
161F.1,
Code
2017,
is
amended
to
read
as
21
follows:
22
161F.1
Presumption
of
benefit
——
definitions
.
23
1.
The
conservation
of
the
soil
resources
of
the
state
24
of
Iowa,
the
improvement
of
water
quality
through
projects,
25
the
proper
control
of
water
resources
of
the
state
and
the
26
prevention
of
damage
to
property
and
lands
through
the
control
27
of
floods,
the
drainage
of
surface
waters
or
the
protection
of
28
lands
from
overflow
shall
be
presumed
to
be
a
public
benefit
29
and
conducive
to
the
public
health,
convenience
and
welfare
and
30
essential
to
the
economic
well-being
of
the
state.
31
2.
For
purposes
of
this
chapter,
“financing
entity”
and
32
“project”
both
mean
the
same
as
defined
in
section
16.201.
33
Sec.
24.
Section
161F.2,
Code
2017,
is
amended
to
read
as
34
follows:
35
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_____
161F.2
Board
of
supervisors
to
establish
districts
——
strip
1
coal
mining.
2
1.
The
board
of
supervisors
of
any
county
shall
have
3
jurisdiction,
power
and
authority
at
any
regular,
special
or
4
adjourned
session
to
establish,
subject
to
the
provisions
5
of
this
chapter
,
districts
having
for
their
purpose
soil
6
conservation
and
the
control
of
flood
waters
,
or
the
7
improvement
of
water
quality,
and
to
cause
to
be
constructed
8
as
hereinafter
provided,
such
improvements
,
projects,
and
9
facilities
as
shall
be
deemed
essential
for
the
accomplishment
10
of
the
purpose
of
soil
conservation
and
flood
control
,
or
of
11
water
quality
improvement
.
12
2.
Such
The
board
of
supervisors
shall
also
have
13
jurisdiction,
power
,
and
authority
at
any
regular,
special
,
14
or
adjourned
session
to
establish,
in
the
same
manner
that
15
the
districts
hereinabove
referred
to
in
subsection
1
16
are
established,
districts
having
for
their
purpose
soil
17
conservation
in
mining
areas
within
the
county,
and
provide
18
that
anyone
engaged
in
removing
the
surface
soil
over
any
19
bed
or
strata
of
coal
in
such
district
for
the
purpose
of
20
obtaining
such
coal
shall
replace
the
surface
soil
as
nearly
21
as
practicable
to
its
original
position,
and
provide
that,
22
upon
abandonment
of
such
removal
operation,
all
surface
soil
23
shall
be
so
replaced.
This
section
subsection
shall
apply
only
24
to
surface
soil
so
removed
after
July
4,
1949,
and
then
only
25
if
it
is
essential
for
the
accomplishment
of
the
purpose
of
26
soil
conservation
and
flood
control
within
the
purview
of
this
27
chapter
.
28
Sec.
25.
Section
161F.3,
Code
2017,
is
amended
to
read
as
29
follows:
30
161F.3
Combination
of
functions.
31
Such
districts
shall
have
the
power
to
combine
in
their
32
functions
activities
affecting
soil
conservation,
flood
control
33
and
drainage,
water
quality
improvement,
or
any
of
these
34
objects,
singly
or
in
combination
with
another
district
or
35
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41
H.F.
_____
financing
entity
under
the
provisions
of
an
intergovernmental
1
agreement
pursuant
to
chapter
28E
or
28F
.
2
Sec.
26.
Section
161F.6,
subsection
1,
Code
2017,
is
amended
3
to
read
as
follows:
4
1.
In
the
organization,
operation,
and
financing
of
5
districts
established
under
this
chapter
,
the
provisions
of
6
chapter
468
shall
apply
and
any
procedure
provided
under
7
chapter
468
in
connection
with
the
organization,
financing,
8
and
operation
of
any
drainage
district
shall
apply
to
the
9
organization,
financing,
and
operation
of
districts
organized
10
under
this
chapter
.
However,
a
district
established
under
this
11
chapter
shall
not
be
considered
a
drainage
district
established
12
pursuant
to
chapter
468.
13
Sec.
27.
Section
384.80,
subsection
15,
Code
2017,
is
14
amended
to
read
as
follows:
15
15.
“Water
resource
restoration
project”
means
the
16
acquisition
of
real
property
or
improvements
,
a
project
as
17
defined
in
section
16.201,
or
any
other
activity
or
undertaking
18
that
will
assist
in
improving
flood
control,
erosion
control,
19
or
the
quality
of
the
water
in
the
watershed
where
a
city
20
water
,
storm
water,
or
wastewater
utility
is
located.
21
Sec.
28.
Section
384.84,
subsection
2,
Code
2017,
is
amended
22
to
read
as
follows:
23
2.
The
governing
body
of
a
city
water
or
wastewater
utility
24
may
enter
into
an
agreement
with
a
qualified
entity
to
use
25
proceeds
from
revenue
bonds
for
a
water
resource
restoration
26
project
if
the
rate
imposed
is
no
greater
than
if
there
was
not
27
a
water
resource
restoration
project
agreement.
For
purposes
28
of
this
subsection
,
“qualified
entity”
is
an
entity
created
29
pursuant
to
chapter
28E
or
chapter
28F
or
two
entities
that
30
have
entered
into
an
agreement
pursuant
to
chapter
28E
or
31
chapter
28F
,
whose
purpose
is
to
undertake
a
watershed
project
32
that
has
been
approved
for
water
quality
improvements
in
the
33
watershed.
34
Sec.
29.
Section
422.7,
subsection
2,
Code
2017,
is
amended
35
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_____
by
adding
the
following
new
paragraph:
1
NEW
PARAGRAPH
.
0h.
Iowa
finance
authority
water
quality
2
project
financial
assistance
program
bonds
or
notes
pursuant
to
3
section
16.202,
subsection
5.
4
Sec.
30.
Section
423.3,
Code
2017,
is
amended
by
adding
the
5
following
new
subsection:
6
NEW
SUBSECTION
.
103.
a.
The
sales
price
from
the
sale
or
7
furnishing
by
a
water
utility
of
a
water
service
in
the
state
8
to
consumers
or
users.
9
b.
For
purposes
of
this
subsection:
10
(1)
“Water
service”
means
the
delivery
of
water
by
piped
11
distribution
system.
12
(2)
“Water
utility”
means
a
public
utility
as
defined
in
13
section
476.1
that
furnishes
water
by
piped
distribution
system
14
to
the
public
for
compensation.
15
Sec.
31.
NEW
SECTION
.
423G.1
Short
title.
16
This
chapter
may
be
cited
as
the
“Water
Service
Tax
Act”
.
17
Sec.
32.
NEW
SECTION
.
423G.2
Definitions.
18
1.
All
words
and
phrases
used
in
this
chapter
and
defined
in
19
section
423.1
have
the
same
meaning
given
them
by
section
423.1
20
for
purposes
of
this
chapter.
21
2.
As
used
in
this
chapter,
“water
service”
and
“water
22
utility”
mean
the
same
as
defined
in
section
423.3,
subsection
23
103.
24
Sec.
33.
NEW
SECTION
.
423G.3
Water
service
tax.
25
An
excise
tax
at
the
rate
of
six
percent
is
imposed
on
the
26
sales
price
from
the
sale
or
furnishing
by
a
water
utility
of
a
27
water
service
in
the
state
to
consumers
or
users.
28
Sec.
34.
NEW
SECTION
.
423G.4
Exemptions.
29
The
sales
price
from
transactions
exempt
from
state
sales
30
tax
under
section
423.3,
except
section
423.3,
subsection
103,
31
is
also
exempt
from
the
tax
imposed
by
this
chapter.
32
Sec.
35.
NEW
SECTION
.
423G.5
Administration
by
director.
33
1.
The
director
of
revenue
shall
administer
the
state
34
water
service
tax
as
nearly
as
possible
in
conjunction
with
35
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41
H.F.
_____
the
administration
of
the
state
sales
and
use
tax
law,
except
1
that
portion
of
the
law
that
implements
the
streamlined
sales
2
and
use
tax
agreement.
The
director
shall
provide
appropriate
3
forms,
or
provide
on
the
regular
state
tax
forms,
for
reporting
4
state
water
service
tax
liability.
5
2.
The
director
may
require
all
persons
who
are
engaged
6
in
the
business
of
deriving
any
sales
price
or
purchase
7
price
subject
to
tax
under
this
chapter
to
register
with
8
the
department.
The
director
may
also
require
a
tax
permit
9
applicable
only
to
this
chapter
for
any
retailer
not
10
collecting,
or
any
user
not
paying,
taxes
under
chapter
423.
11
3.
Section
422.25,
subsection
4,
sections
422.30,
422.67,
12
and
422.68,
section
422.69,
subsection
1,
sections
422.70,
13
422.71,
422.72,
422.74,
and
422.75,
section
423.14,
subsection
14
1,
and
sections
423.23,
423.24,
423.25,
423.31
through
15
423.35,
423.37
through
423.42,
and
423.47,
consistent
with
the
16
provisions
of
this
chapter,
shall
apply
with
respect
to
the
tax
17
authorized
under
this
chapter
in
the
same
manner
and
with
the
18
same
effect
as
if
the
excise
taxes
on
the
sale
or
furnishing
of
19
a
water
service
were
retail
sales
taxes
within
the
meaning
of
20
those
statutes.
Notwithstanding
this
subsection,
the
director
21
shall
provide
for
quarterly
filing
of
returns
and
for
other
22
than
quarterly
filing
of
returns
both
as
prescribed
in
section
23
423.31.
All
taxes
collected
under
this
chapter
by
a
retailer
24
or
any
user
are
deemed
to
be
held
in
trust
for
the
state
of
25
Iowa.
26
Sec.
36.
NEW
SECTION
.
423G.6
Deposit
of
revenues.
27
1.
All
moneys
received
and
all
refunds
shall
be
deposited
in
28
or
withdrawn
from
the
general
fund
of
the
state.
29
2.
Subsequent
to
the
deposit
in
the
general
fund
of
the
30
state,
the
department
shall
transfer
the
following
amounts
of
31
revenues
collected
to
the
water
quality
financial
assistance
32
fund
created
in
section
16.198:
33
a.
For
revenues
collected
on
or
after
July
1,
2017,
but
34
before
August
1,
2018,
one-sixth
of
the
revenues.
35
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_____
b.
For
revenues
collected
on
or
after
August
1,
2018,
but
1
before
August
1,
2019,
one-third
of
the
revenues.
2
c.
For
revenues
collected
on
or
after
August
1,
2019,
but
3
before
August
1,
2020,
one-half
of
the
revenues.
4
d.
For
revenues
collected
on
or
after
August
1,
2020,
but
5
before
August
1,
2021,
two-thirds
of
the
revenues.
6
e.
For
revenues
collected
on
or
after
August
1,
2021,
but
7
before
August
1,
2022,
five-sixths
of
the
revenues.
8
f.
For
revenues
collected
on
or
after
August
1,
2022,
one
9
hundred
percent
of
the
revenues.
10
Sec.
37.
NEW
SECTION
.
423G.7
Future
repeal.
11
This
chapter
is
repealed
on
the
date
on
which
all
bonds,
12
notes,
or
other
debt
instruments
issued
on
or
before
June
13
30,
2042,
pursuant
to
section
16.202,
are
fully
paid.
The
14
executive
director
of
the
Iowa
finance
authority
shall
notify
15
the
Iowa
Code
editor
upon
the
occurrence
of
this
condition.
16
Sec.
38.
Section
455B.171,
subsection
19,
Code
2017,
is
17
amended
to
read
as
follows:
18
19.
“Point
source”
means
any
discernible,
confined,
and
19
discrete
conveyance,
including
but
not
limited
to
any
pipe,
20
ditch,
channel,
tunnel,
conduit,
well,
discrete
fissure,
21
container,
rolling
stock,
concentrated
animal
feeding
22
operation,
or
vessel
or
other
floating
craft,
from
which
23
pollutants
are
or
may
be
discharged.
“Point
source”
does
not
24
include
agricultural
storm
water
discharges
and
return
flows
25
from
irrigated
agriculture.
26
Sec.
39.
Section
455B.176A,
subsection
1,
Code
2017,
is
27
amended
by
adding
the
following
new
paragraphs:
28
NEW
PARAGRAPH
.
0d.
“Iowa
nutrient
reduction
strategy”
means
29
the
same
as
defined
in
section
16.201.
30
NEW
PARAGRAPH
.
00d.
“Nutrient”
means
total
nitrogen
and
31
total
phosphorus.
32
Sec.
40.
Section
455B.176A,
subsection
5,
Code
2017,
is
33
amended
to
read
as
follows:
34
5.
a.
The
commission
shall
adopt
rules
designating
water
35
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_____
quality
standards
which
shall
be
specific
to
each
designated
1
use
adopted
pursuant
to
subsection
4
.
The
standards
shall
take
2
into
account
the
different
characteristics
of
each
designated
3
use
and
shall
provide
for
only
the
appropriate
level
of
4
protection
based
upon
that
particular
use.
The
standards
shall
5
not
be
identical
for
each
designated
use
unless
required
for
6
the
appropriate
level
of
protection.
The
appropriate
level
of
7
protection
and
standards
shall
be
determined
on
a
scientific
8
basis.
9
b.
In
the
development
process
for
the
water
quality
10
standards,
input
shall
be
received
from
a
water
quality
11
standards
advisory
committee
convened
by
the
department.
The
12
water
quality
standards
advisory
committee
shall
be
comprised
13
of
experts
in
the
scientific
fields
relating
to
water
quality,
14
such
as
environmental
engineering,
aquatic
toxicology,
15
fisheries
biology,
and
other
life
sciences
and
experts
in
16
the
development
of
the
appropriate
levels
of
aquatic
life
17
protection
and
standards.
The
water
quality
standards
shall
be
18
reviewed
and
revised
by
the
department
as
new
scientific
data
19
becomes
available
to
support
revision.
20
c.
The
department
shall
provide
support
to
the
department
of
21
agriculture
and
land
stewardship
in
their
efforts
to
implement
22
their
responsibilities
under
the
Iowa
nutrient
reduction
23
strategy.
To
evaluate
the
progress
achieved
over
time
toward
24
the
goals
of
the
Iowa
nutrient
reduction
strategy
and
the
25
United
States
environmental
protection
agency
gulf
hypoxia
26
action
plan,
the
baseline
condition
shall
be
calculated
for
the
27
time
period
from
1980
to
1996.
28
Sec.
41.
Section
455B.195,
subsection
1,
paragraph
i,
Code
29
2017,
is
amended
to
read
as
follows:
30
i.
If
the
department
has
obtained
credible
data
for
a
31
water
of
the
state,
the
department
may
also
use
historical
32
data
for
that
particular
water
of
the
state
for
the
purpose
33
of
determining
whether
any
trends
exist
for
that
water
of
the
34
state.
To
evaluate
the
progress
achieved
over
time
toward
35
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_____
the
goals
of
the
Iowa
nutrient
reduction
strategy,
as
defined
1
in
section
455B.176A,
and
the
United
States
environmental
2
protection
agency
gulf
hypoxia
action
plan,
the
baseline
3
condition
shall
be
calculated
for
the
time
period
from
1980
to
4
1996.
5
Sec.
42.
Section
466B.3,
subsection
3,
paragraph
c,
Code
6
2017,
is
amended
to
read
as
follows:
7
c.
Whether
the
funds,
programs,
and
regulatory
efforts
8
coordinated
by
the
council
eventually
result
in
a
long-term
9
improvement
to
the
quality
of
surface
water
in
Iowa.
To
10
evaluate
the
progress
achieved
over
time
toward
the
goals
of
11
the
Iowa
nutrient
reduction
strategy,
as
defined
in
section
12
455B.176A,
and
the
United
States
environmental
protection
13
agency
gulf
hypoxia
action
plan,
the
baseline
condition
shall
14
be
calculated
for
the
time
period
from
1980
to
1996.
15
Sec.
43.
Section
466B.42,
Code
2017,
is
amended
to
read
as
16
follows:
17
466B.42
Water
quality
initiative.
18
The
division
shall
establish
a
water
quality
initiative
19
in
order
to
assess
and
reduce
nutrients
in
this
state’s
20
watersheds,
including
subwatersheds
,
and
regional
watersheds
,
21
and
for
implementing
its
responsibilities
under
the
Iowa
22
nutrient
reduction
strategy
as
defined
in
section
455B.176A
.
23
The
division
shall
establish
and
administer
projects
to
24
reduce
nutrients
in
surface
waters
from
nonpoint
sources
in
25
a
scientific,
reasonable,
and
cost-effective
manner.
The
26
division
shall
utilize
a
pragmatic,
strategic,
and
coordinated
27
approach
with
the
goal
of
accomplishing
reductions
over
time.
28
To
evaluate
the
progress
achieved
over
time
toward
the
goals
29
of
the
Iowa
nutrient
reduction
strategy
and
the
United
States
30
environmental
protection
agency
gulf
hypoxia
action
plan,
the
31
baseline
condition
shall
be
calculated
for
the
time
period
from
32
1980
to
1996.
33
Sec.
44.
NEW
SECTION
.
466B.43
Water
quality
agriculture
34
infrastructure
programs.
35
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41
H.F.
_____
1.
As
part
of
the
water
quality
initiative
established
1
pursuant
to
section
466B.42,
the
division
shall
administer
2
water
quality
agriculture
infrastructure
programs
created
in
3
this
section.
4
2.
a.
The
purpose
of
the
programs
is
to
support
projects
5
for
the
installation
of
infrastructure,
including
conservation
6
structures,
practices,
or
other
measures
that
reduce
7
contributing
nutrient
loads,
associated
sediment,
or
pollutants
8
from
point
and
nonpoint
sources
to
surface
waters.
The
9
programs
shall
be
administered
in
a
manner
that
is
consistent
10
with
the
Iowa
nutrient
reduction
strategy,
as
defined
in
11
section
16.201.
12
b.
In
making
awards
of
financial
assistance
under
the
13
programs,
the
division
shall
attempt
to
complement
the
purposes
14
of
the
water
quality
project
financial
assistance
program
15
under
sections
16.201
through
16.206
and
the
water
quality
16
protection
and
wastewater
treatment
grant
program
under
section
17
16.140.
Preference
shall
be
given
to
landowners
that
are
18
part
of
a
financing
entity
participating
in
the
water
quality
19
project
financial
assistance
program
and
to
landowners
that
are
20
participating
in
the
water
quality
protection
and
wastewater
21
treatment
grant
program.
The
division,
the
Iowa
finance
22
authority,
landowners,
and
financing
entities
shall,
when
23
possible,
coordinate
financing
between
the
programs
created
in
24
this
section,
the
water
quality
project
financial
assistance
25
program,
and
the
water
quality
protection
and
wastewater
26
treatment
grant
program,
in
order
to
promote
the
most
effective
27
use
of
resources.
28
3.
An
edge-of-field
infrastructure
program
is
created.
29
The
program
shall
support
projects
located
on
agricultural
30
land,
which
may
include
demonstration
projects,
that
capture
31
or
filter
nutrients
entering
into
a
surface
water.
The
32
program’s
projects
shall
be
limited
to
infrastructure
designed
33
and
installed
for
use
over
multiple
years,
including
but
not
34
limited
to
wetlands,
bioreactor
systems,
saturated
buffers,
35
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41
H.F.
_____
edge-of-stream
buffers,
or
land
use
changes.
The
program
shall
1
be
financed
on
a
cost-share
basis.
2
4.
An
in-field
infrastructure
program
is
created.
The
3
program
shall
support
projects
located
on
agricultural
land,
4
which
may
include
demonstration
projects,
that
decrease
erosion
5
and
precipitation-induced
surface
runoff,
increase
water
6
infiltration
rates,
and
increase
soil
sustainability.
The
7
program’s
projects
shall
be
limited
to
infrastructure
designed
8
and
installed
for
use
over
multiple
years,
including
but
not
9
limited
to
structures,
terraces,
and
waterways
located
on
10
cropland
or
pastureland,
and
including
but
not
limited
to
soil
11
conservation
or
erosion
control
structures,
managed
drainage
12
systems,
or
edge-of-stream
buffers.
The
program
shall
be
13
financed
on
a
cost-share
basis.
14
5.
Any
state
moneys
used
to
finance
a
project
under
a
15
water
quality
agriculture
infrastructure
program
shall
be
16
administered
according
to
an
agreement
entered
into
by
the
17
division
and
the
owner
of
the
land
where
the
infrastructure
18
is
to
be
installed.
The
agreement
shall
include
standard
19
terms
and
conditions
for
the
receipt
of
program
moneys
and
20
any
other
terms
and
conditions
the
division
deems
necessary
21
or
convenient
for
the
efficient
administration
of
the
project
22
or
program.
The
division
may
support
multiple
installations
23
of
infrastructure
on
a
single
parcel
of
land.
The
division
24
may
also
combine
programs
if
cost
effective.
The
division
25
may
annually
use
an
amount
of
not
more
than
four
percent
of
26
the
moneys
used
to
support
each
program
for
administrative
27
purposes.
28
6.
By
October
1,
2018,
and
each
October
1,
thereafter,
the
29
division
shall
submit
a
report
to
the
governor
and
the
general
30
assembly
itemizing
expenditures,
by
hydrologic
unit
code
8
31
watershed,
under
the
programs
during
the
previous
fiscal
year.
32
7.
Any
information
obtained
by
the
division
identifying
33
a
person
holding
a
legal
interest
in
agricultural
land
or
34
specific
agricultural
land
shall
be
a
confidential
record
under
35
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41
H.F.
_____
section
22.7.
1
Sec.
45.
LEGISLATIVE
INTENT.
It
is
the
intent
of
the
2
general
assembly
that
the
amendment
in
this
Act
to
the
3
definition
of
“point
source”
in
section
455B.171,
subsection
4
19,
is
a
conforming
amendment
consistent
with
current
state
5
and
federal
law,
and
that
the
amendment
does
not
change
the
6
application
of
current
law
but
instead
reflects
current
law
7
both
before
and
after
the
enactment
of
this
Act.
8
Sec.
46.
RETROACTIVE
APPLICABILITY.
The
following
9
provision
or
provisions
of
this
Act
apply
retroactively
to
10
January
1,
2017,
for
tax
years
beginning
on
or
after
that
date:
11
1.
The
section
of
this
Act
enacting
section
422.7,
12
subsection
2,
paragraph
“0h”.
13
EXPLANATION
14
The
inclusion
of
this
explanation
does
not
constitute
agreement
with
15
the
explanation’s
substance
by
the
members
of
the
general
assembly.
16
This
bill
relates
to
water
quality
by
establishing
new
water
17
quality
programs,
providing
for
appropriations
from
the
rebuild
18
Iowa
infrastructure
fund
and
making
other
appropriations
and
19
changes
related
to
water
quality,
and
creating
a
state
water
20
service
excise
tax
and
a
related
sales
tax
exemption.
21
REBUILD
IOWA
INFRASTRUCTURE
FUND
APPROPRIATIONS
FOR
WATER
22
QUALITY
AGRICULTURE
INFRASTRUCTURE
PROGRAMS.
23
RIIF
appropriations
——
The
bill
provides
for
a
total
of
24
$232
million
of
appropriations
over
13
fiscal
years
from
the
25
rebuild
Iowa
infrastructure
fund
in
Code
section
8.57
to
a
26
water
quality
infrastructure
fund
created
in
the
bill
(Code
27
section
8.57B)
to
be
used
by
the
division
of
soil
conservation
28
and
water
quality
of
the
department
of
agriculture
and
land
29
stewardship
(soil
and
water
division)
in
administering
two
new
30
water
quality
agriculture
infrastructure
programs,
described
31
below.
The
appropriations
shall
be
as
follows:
$5
million
for
32
fiscal
year
2017-2018;
$6.5
million
for
fiscal
year
2018-2019;
33
$11.5
million
for
fiscal
year
2019-2020;
$16.5
million
per
34
fiscal
year
for
the
two-year
fiscal
period
beginning
July
1,
35
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41
H.F.
_____
2020,
and
ending
June
30,
2022;
and
$22
million
per
fiscal
year
1
for
the
eight-year
fiscal
period
beginning
July
1,
2022,
and
2
ending
June
30,
2030.
The
water
quality
infrastructure
fund
3
is
repealed
on
the
date
that
all
moneys
transferred
to
the
4
fund
from
the
rebuild
Iowa
infrastructure
fund
as
provided
in
5
the
bill,
including
any
interest
or
earnings
on
such
moneys
6
credited
to
the
fund,
are
expended
by
the
soil
and
water
7
division,
and
the
balance
of
the
fund
is
zero.
8
Water
quality
agriculture
infrastructure
programs
——
As
9
part
of
the
existing
water
quality
initiative
of
the
soil
and
10
water
division
in
Code
section
466B.42,
the
bill
establishes
11
two
water
quality
agriculture
infrastructure
programs
(Code
12
section
466B.43),
consisting
of
an
edge-of-field
infrastructure
13
program
and
an
in-field
infrastructure
program,
that
will
14
provide
financing
on
a
cost-share
basis
to
certain
agriculture
15
infrastructure
projects,
including
demonstration
projects.
16
The
edge-of-field
program
will
support
projects
that
capture
17
or
filter
nutrients
entering
into
surface
water.
The
bill
18
includes
wetlands,
bioreactor
systems,
saturated
buffers,
19
edge-of-field
buffers,
and
land
use
changes
as
examples
20
of
projects
that
may
qualify.
The
in-field
infrastructure
21
program
will
support
projects
that
decrease
erosion
and
22
precipitation-induced
surface
runoff,
increase
water
23
infiltration
rates,
and
increase
soil
sustainability.
The
bill
24
includes
structures,
terraces,
waterways
located
on
cropland
25
or
pastureland,
and
soil
conservation
or
erosion
control
26
structures
or
managed
drainage
systems,
and
edge-of-field
27
buffers
as
examples
of
projects
that
may
qualify.
28
The
bill
provides
for
the
purpose
of
the
programs
and
29
requires
that
the
programs
be
administered
in
a
manner
that
30
is
consistent
with
the
Iowa
nutrient
reduction
strategy,
as
31
defined
in
the
bill.
Both
programs
are
to
be
administered
32
in
a
way
that
coordinates
with,
and
attempts
to
complement
33
the
purposes
of,
the
water
quality
project
financial
34
assistance
program
and
the
water
quality
protection
and
35
-34-
LSB
2041YC
(2)
87
mm/sc
34/
41
H.F.
_____
wastewater
treatment
grant
program
created
in
the
bill
1
and
described
below,
and
preference
is
to
be
given
to
2
landowners
participating
in
those
programs.
Both
water
3
quality
agriculture
infrastructure
programs
require
that
4
projects
be
located
on
agricultural
land
and
limit
projects
to
5
infrastructure
designed
and
installed
for
use
over
multiple
6
years.
The
bill
requires
that
the
soil
and
water
division
and
7
landowners
enter
into
agreements
for
financing
projects
under
8
the
programs,
provides
that
the
soil
and
water
division
may
9
support
multiple
installations
of
infrastructure
on
a
single
10
parcel
of
land,
and
provides
that
the
two
programs
may
be
11
combined
by
the
soil
and
water
division
if
it
is
cost
effective
12
to
do
so.
The
soil
and
water
division
is
allowed
to
annually
13
use
up
to
4
percent
of
the
programs’
moneys
for
administrative
14
purposes.
Beginning
in
2018,
the
soil
and
water
division
is
15
required
to
submit
a
report
by
October
1
of
each
year
to
the
16
general
assembly
and
the
governor
detailing
expenditures
for
17
the
previous
fiscal
year
under
the
programs
by
hydrologic
unit
18
code
8
watershed.
The
bill
provides
that
certain
information
19
related
to
agricultural
land
and
obtained
by
the
soil
and
water
20
division
under
the
programs
shall
be
considered
a
confidential
21
record
under
Code
section
22.7.
22
WATER
SERVICE
EXCISE
TAX
FOR
CERTAIN
WATER
QUALITY
PROGRAMS.
23
Water
service
excise
tax
and
related
sales
tax
exemption
——
24
The
bill
exempts
from
the
state
sales
tax
the
sales
price
from
25
the
sale
or
furnishing
by
a
water
utility
of
a
water
service
in
26
the
state
to
consumers
or
users.
“Water
service”
and
“water
27
utility”
are
defined
in
the
bill.
28
By
operation
of
Code
section
423.6,
an
item
exempt
from
the
29
imposition
of
the
sales
tax
is
also
exempt
from
the
use
tax
30
imposed
in
Code
section
423.5.
31
The
bill
creates
a
state
excise
tax
at
the
rate
of
6
percent
32
on
the
sales
price
from
the
sale
or
furnishing
by
a
water
33
utility
of
a
water
service
in
the
state
to
consumers
or
users
34
(Code
chapter
423G).
The
director
of
revenue
is
required
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to
administer
the
water
service
tax
as
nearly
as
possible
1
in
conjunction
with
the
administration
of
the
state
sales
2
and
use
tax
laws,
and,
to
that
end,
the
bill
incorporates
by
3
reference
numerous
Code
sections
that
relate
to
general
tax
4
administration
and
the
sales
and
use
tax
laws.
5
State
water
service
tax
revenues
are
deposited
in
the
6
general
fund
of
the
state.
The
bill
requires
an
increasing
7
portion
of
the
state
water
service
tax
revenues
collected
each
8
year
to
be
transferred
to
a
water
quality
financial
assistance
9
fund
created
in
the
bill
(Code
section
16.198)
to
support
10
various
water
quality
programs,
described
below.
Transfers
to
11
the
water
quality
financial
assistance
fund
equal
one-sixth
of
12
the
water
service
tax
revenues
collected
on
or
after
July
1,
13
2017,
but
before
August
1,
2018,
and
increases
to
one-third,
14
one-half,
two-thirds,
and
five-sixths
over
the
next
four
years.
15
All
water
service
tax
revenues
collected
on
or
after
August
16
1,
2022,
will
be
transferred
to
the
water
quality
financial
17
assistance
fund.
18
The
state
and
local
water
service
tax
is
repealed
on
the
date
19
on
which
all
bonds,
notes,
or
other
debt
instruments
issued
by
20
the
Iowa
finance
authority
(IFA)
on
or
before
June
30,
2042,
21
under
the
water
quality
project
financial
assistance
program,
22
described
below,
are
fully
paid.
23
Water
service
tax
revenues
transferred
to
the
water
quality
24
financial
assistance
fund
are
then
appropriated
from
the
25
fund
as
follows:
one-sixth
of
the
moneys
in
the
fund
is
26
appropriated
to
IFA
to
support
the
water
quality
protection
and
27
wastewater
treatment
grant
program
created
in
the
bill
(Code
28
section
16.140),
and
five-sixths
of
the
moneys
in
the
fund
29
is
appropriated
to
IFA
to
support
the
water
quality
project
30
financial
assistance
program
created
in
the
bill
(Code
sections
31
16.201
through
16.206).
32
Water
quality
protection
and
wastewater
treatment
grant
33
program
(Code
section
16.140)
——
This
program,
administered
by
34
IFA,
provides
financial
assistance
in
the
form
of
grants
to
35
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municipalities
and
eligible
entities
for
projects
or
activities
1
that
enhance
water
quality,
upgrade
water
and
wastewater
2
infrastructure,
or
implement
the
nutrient
reduction
strategy.
3
“Municipality”,
“eligible
entity”,
and
other
related
terms
are
4
defined
in
the
bill.
The
bill
describes
the
types
of
projects
5
or
activities
that
qualify
for
grants
under
the
program.
6
The
program
gives
priority
in
awarding
grants
to
projects
7
or
activities
that
provide
improvement
to
water
quality
in
8
the
relevant
watershed,
and
that
also
have
private
financing
9
or
certain
other
state
or
federal
financing
as
described
in
10
the
bill.
Grants
shall
not
exceed
$500,000
per
recipient.
11
The
program
requires
IFA
to
submit
a
report
by
October
1
of
12
each
year
to
the
governor
and
the
general
assembly
detailing
13
expenditures
for
the
previous
year
under
the
program,
and
14
creates
a
program
review
committee
consisting
of
eight
members,
15
as
provided
in
the
bill,
to
review
the
effectiveness
of
the
16
program
every
10
years,
beginning
in
2027.
17
Water
quality
project
financial
assistance
program
(Code
18
sections
16.201
through
16.206)
——
This
program
provides
19
financial
assistance
to
eligible
entities
that
engage
in
a
20
project
designed
to
improve
water
quality
or
water
resource
21
management
for
the
purpose
of
enhancing
the
quality
of
surface
22
water
and
groundwater.
“Eligible
entity”,
“project”,
and
23
other
related
terms
are
defined
in
the
bill.
The
program
24
is
administered
by
IFA
in
cooperation
with
the
department
of
25
natural
resources
(DNR)
and
the
department
of
agriculture
26
and
land
stewardship
(IDALS).
The
program
allows
IFA
to
27
provide
financial
assistance
in
the
form
it
deems
most
28
convenient,
including
loans,
forgivable
loans,
and
grants,
29
but
requires
that
the
program
be
a
permanent
source
of
water
30
quality
financial
assistance.
The
program
allows
financing
31
entities,
as
defined
in
the
bill,
to
apply
to
IFA
for
financial
32
assistance
and
submit
project
plans
that
substantially
improve
33
water
quality
in
the
local
area
or
watershed,
and
provides
34
certain
application
requirements.
Preference
under
the
program
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_____
shall
be
given
to
projects
that
will
have
the
greatest
impact
1
on
achieving
the
goals
set
forth
in
the
nutrient
reduction
2
strategy,
and
plans
designed
to
achieve
those
goals
shall
be
3
presumed
to
improve
water
quality.
Also,
plans
that
include
a
4
nutrient
reduction
exchange,
as
defined
in
the
bill,
between
5
two
or
more
members
of
the
eligible
entity
will
be
presumed
to
6
substantially
improve
water
quality.
7
Preference
under
the
program
is
to
be
given
to
eligible
8
entities
that
have
project
plans
evaluated
by
the
Iowa
nutrient
9
research
center
(Code
section
466B.47),
and
to
eligible
10
entities
that
contract
with
the
Iowa
nutrient
research
center
11
to
verify
the
amount
of
nutrient
reduction
achieved
by
the
12
project
upon
project
completion.
13
The
bill
creates
a
three-member
committee
to
review
project
14
plans,
review
and
score
applications,
and
make
financial
15
assistance
awards.
The
executive
director
of
IFA,
the
director
16
of
DNR,
and
the
secretary
of
agriculture
each
appoint
one
17
member
to
the
committee.
Eligible
entities
receiving
financial
18
assistance
awards
are
required
to
enter
into
agreements
with
19
IFA,
and
IFA
determines
the
terms
of
any
loan
and
may
charge
20
fees
and
costs
necessary
for
the
continued
operation
of
the
21
program.
The
bill
provides
that
a
drainage
district
that
is
a
22
party
to
a
Code
chapter
28E
agreement
that
creates
a
financing
23
entity
is
not
required
to
be
a
signatory
on
any
loan
agreement
24
entered
into
under
the
program.
The
bill
further
requires
25
IFA
to
adopt
rules
relating
to
the
proportional
liability,
if
26
any,
of
members
of
an
eligible
entity
that
enter
into
a
loan
27
agreement
under
the
program.
28
The
bill
creates
a
water
quality
project
financial
29
assistance
fund
administered
by
IFA
to
provide
financial
30
assistance
under
the
program.
The
bill
allows
IFA
to
establish
31
and
maintain
other
funds
and
accounts
necessary
to
carry
out
32
the
purposes
of
the
program.
33
The
bill
allows
IFA
to
issue
until
June
30,
2042,
bonds
and
34
notes
for
the
purpose
of
funding
the
program,
and
the
bill
35
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_____
provides
several
requirements
for
the
issuance
of
such
bonds
1
and
notes,
for
loan
or
purchase
agreements
with
bondholders
2
or
noteholders,
for
the
pledging
of
certain
funds
toward
the
3
repayment
of
the
bonds
and
notes,
and
for
the
establishment
of
4
reserve
funds
to
secure
the
bonds
and
notes.
The
bill
also
5
includes
other
provisions
related
to
the
notes
and
bonds,
6
including
that
such
bonds
and
notes
are
exempt
from
taxation
7
by
the
state.
8
MISCELLANEOUS
PROVISIONS.
The
bill
amends
the
powers
of
9
a
soil
and
water
conservation
district
under
chapter
161A
to
10
include
the
completion
of
certain
projects
as
described
in
the
11
bill,
and
to
allow
a
district
to
apply
for
financial
assistance
12
under
the
water
quality
project
financial
assistance
program.
13
The
bill
amends
provisions
in
Code
chapter
161C
governing
14
the
water
protection
projects
and
practices
of
a
soil
and
water
15
conservation
district
by
adding
to
the
types
of
projects
the
16
district
may
engage
in
and
the
type
of
entities
the
district
17
may
work
with
to
complete
such
projects.
18
The
bill
amends
various
provisions
of
Code
chapter
161E
19
(flood
and
erosion
control)
to
add
to
the
types
of
projects
a
20
county
may
engage
in
or
offer
financial
assistance
for
under
21
that
Code
chapter,
or
to
levy
a
property
tax
for
under
that
22
Code
chapter,
and
to
add
to
the
types
of
entities
the
county
23
may
work
with
to
complete
projects.
24
The
bill
amends
provisions
in
Code
chapter
161F
(soil
25
conservation
and
flood
control
districts)
to
add
to
the
26
types
of
projects
a
soil
conservation
and
flood
control
27
district
established
by
a
county
may
engage
in
under
that
Code
28
chapter,
and
the
types
of
entities
a
district
may
work
with
29
to
complete
such
projects.
The
bill
also
specifies
that
a
30
district
established
pursuant
to
Code
chapter
161F
shall
not
31
be
considered
a
drainage
district
established
pursuant
to
Code
32
chapter
468.
33
The
bill
adds
to
the
types
of
projects
that
a
public
agency
34
may
complete
through
joint
financing
with
another
public
agency
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under
Code
chapter
28F
(joint
financing
of
public
works
and
1
facilities).
2
The
bill
amends
provisions
governing
certain
projects
3
completed
and
financed
by
a
city
under
Code
chapter
384
(city
4
finance).
The
bill
adds
to
the
types
of
projects
specified
5
that
meet
the
definition
of
a
“water
resource
restoration
6
project”,
which
is
a
type
of
project
a
city
may
engage
in
7
and
issue
revenue
bonds
or
pledge
orders
for.
The
bill
also
8
amends
the
definition
of
“qualified
entity”
to
include
entities
9
created
under
Code
chapter
28F
(joint
financing
of
public
10
works
and
facilities).
Under
current
law,
a
city
may
enter
11
into
agreements
with
a
qualified
entity
relating
to
the
use
of
12
revenue
bond
proceeds
for
a
water
resource
restoration
project.
13
The
bill
amends
the
definition
of
“point
source”
in
Code
14
section
455B.171,
which
contains
definitions
for
terms
used
in
15
provisions
of
the
Code
that
concern
the
jurisdiction
of
DNR
16
related
to
water
quality,
to
exclude
agricultural
storm
water
17
discharges
and
return
flows
from
irrigated
agriculture.
The
18
bill
provides
that
it
is
the
legislative
intent
of
the
general
19
assembly
that
this
amendment
to
the
definition
of
“point
20
source”
is
a
conforming
amendment
consistent
with
current
state
21
and
federal
law,
and
that
the
amendment
does
not
change
the
22
application
of
current
law
but
instead
reflects
current
law
23
both
before
and
after
the
enactment
of
the
bill.
24
The
bill
amends
Code
section
455B.176A,
relating
to
water
25
quality
standards
created
by
DNR
and
the
environmental
26
protection
commission,
to
define
“Iowa
nutrient
reduction
27
strategy”
and
“nutrient”,
and
to
provide
that
DNR
shall
provide
28
support
to
IDALS
in
efforts
to
implement
the
Iowa
nutrient
29
reduction
strategy,
and
further
provides
that
progress
under
30
the
Iowa
nutrient
reduction
strategy
and
the
United
States
31
environmental
protection
agency
gulf
hypoxia
action
plan
shall
32
be
evaluated
using
a
baseline
condition
calculated
for
the
time
33
period
between
1980
and
1996.
34
The
bill
amends
Code
section
455B.195,
relating
to
35
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the
required
use
or
analysis
of
credible
data
by
DNR
when
1
developing
or
determining
certain
water
quality
issues,
2
to
provide
that
progress
under
the
Iowa
nutrient
reduction
3
strategy
and
the
United
States
environmental
protection
agency
4
gulf
hypoxia
action
plan
shall
be
evaluated
using
a
baseline
5
condition
calculated
for
the
time
period
between
1980
and
1996.
6
The
bill
amends
Code
section
466B.3,
relating
to
the
water
7
resources
coordinating
council,
to
provide
that
when
the
8
council
is
measuring
the
success
of
its
efforts,
progress
under
9
the
Iowa
nutrient
reduction
strategy
and
the
United
States
10
environmental
protection
agency
gulf
hypoxia
action
plan
shall
11
be
evaluated
using
a
baseline
condition
calculated
for
the
time
12
period
between
1980
and
1996.
13
The
bill
amends
Code
section
466B.42,
relating
to
the
water
14
quality
initiative
of
the
soil
and
water
division,
to
provide
15
that
the
goal
of
the
water
quality
initiative
is
to
implement
16
the
soil
and
water
division’s
responsibilities
under
the
Iowa
17
nutrient
reduction
strategy,
and
to
provide
that
progress
under
18
the
Iowa
nutrient
reduction
strategy
and
the
United
States
19
environmental
protection
agency
gulf
hypoxia
action
plan
shall
20
be
evaluated
using
a
baseline
condition
calculated
for
the
time
21
period
between
1980
and
1996.
22
Finally,
the
bill
adds
the
IFA
water
quality
project
23
financial
assistance
program
bonds
and
notes
authorized
in
24
the
bill
under
new
Code
section
16.202
to
the
list
of
bonds
25
and
notes
the
income
from
which
is
exempt
from
the
individual
26
income
tax
under
Code
section
422.7
(computation
of
net
27
income).
This
provision
of
the
bill
applies
retroactively
to
28
January
1,
2017,
for
tax
years
beginning
on
or
after
that
date.
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(2)
87
mm/sc
41/
41