Senate File 407 S-3085 Amend Senate File 407 as follows: 1 1. Page 1, line 14, by striking < paragraph > and 2 inserting < paragraphs > 3 2. Page 1, after line 18 by inserting: 4 < NEW PARAGRAPH . g. Upon the submission of a 5 petition by a regulated entity, the director shall 6 consult with the entity regarding a disadvantaged 7 community variance under section 455B.199B. > 8 3. Page 2, after line 23 by inserting: 9 < Sec. ___. Section 455B.199B, Code 2011, is amended 10 by striking the section and inserting in lieu thereof 11 the following: 12 455B.199B Disadvantaged communities variance. 13 1. The department may provide for a variance of 14 regulations pursuant to this part when it determines 15 that regulations adopted pursuant to this part affect 16 a disadvantaged community. Such a variance shall 17 be consistent with federal rules and regulations. 18 In considering an application for a variance, the 19 department shall consider the substantial and 20 widespread economic and social impact to the ratepayers 21 and the affected community that may occur as a result 22 of compliance with a federal regulation, a rule adopted 23 by the department, or an order of the department 24 pursuant to this part. In considering an application 25 for a variance, the department shall take into account 26 the rules adopted pursuant to this part with which 27 a regulated entity and the commensurate affected 28 community are required to comply. 29 2. The department shall find that a regulated 30 entity and the affected community are a disadvantaged 31 community by evaluating all of the following: 32 a. The ability of the regulated entity and the 33 affected community to pay for a project based on the 34 ratio of the total annual compliance costs to median 35 household income. 36 b. Debt, socioeconomic, and financial management 37 indicators. 38 c. The annual water and sewer rates as a percentage 39 of median household income. 40 d. The per capita outstanding debt of the pollution 41 control system as a percentage of median household 42 income. 43 3. The department shall find that an unsewered 44 community is a disadvantaged community by evaluating: 45 a. The ability of the community to pay for a 46 project based upon the ratio of the total annual 47 compliance costs to median household income. 48 b. Debt, socioeconomic, and financial management 49 indicators. 50 -1- SF407.1359 (1) 84 tm/sc 1/ 2 #1. #2. #3.

c. The annual water and sewer rates as a percentage 1 of median household income. 2 4. The department shall not consider a regulated 3 entity, affected community, or unsewered community as 4 a disadvantaged community if the ratio of compliance 5 costs to median household income is below one percent. 6 5. The department may grant a regulated entity a 7 variance from complying with a rule adopted pursuant 8 to this part, or as otherwise allowed by federal law 9 or regulations, if the department determines that the 10 regulated entity or the affected community will suffer 11 substantial and widespread economic and social impact. 12 The department shall ensure that the conditions of any 13 variance granted improve water quality and represent 14 reasonable progress toward complying with rules adopted 15 pursuant to this part but do not result in substantial 16 and widespread economic and social impact. 17 6. The department shall not require an unsewered 18 community to install a wastewater treatment system if 19 the department determines that the unsewered community 20 will suffer substantial and widespread economic and 21 social impact and until alternative treatment options 22 are approved. 23 7. The Iowa finance authority, in cooperation 24 with the department, shall utilize the disadvantaged 25 community criteria in this section to determine the 26 appropriate interest rates for loans awarded from the 27 revolving loan funds created in section 455B.295, as 28 allowed by federal law or regulations. 29 8. The department of economic development shall 30 utilize the disadvantaged community criteria in this 31 section to determine eligibility for water or sewer 32 community development block grant moneys pursuant to 33 section 15.108, subsection 1, paragraph “a” . > 34 4. Title page, line 1, by striking < delegating to 35 counties > and inserting < relating to counties and other 36 regulated entities and > 37 5. By renumbering as necessary. 38 ______________________________ MERLIN BARTZ -2- SF407.1359 (1) 84 tm/sc 2/ 2 #4. #5.