H-8161

   Amend House File 2451 as follows:
   1.  Page 1, before line 1 by inserting: 
   Section 1.  Section 8.57, subsection 5, Code 2016, is amended by adding the following new paragraph:
   NEW PARAGRAPH.  0h.  (1)  Notwithstanding paragraph “c” of this subsection, there is appropriated from the rebuild Iowa infrastructure fund to the water quality infrastructure fund created in section 8.57B the following amounts:
   (a)  For the fiscal year beginning July 1, 2016, and ending June 30, 2017, five million dollars.
   (b)  For the fiscal year beginning July 1, 2017, and ending June 30, 2018, six million five hundred thousand dollars.
   (c)  For the fiscal year beginning July 1, 2018, and ending June 30, 2019, eleven million five hundred thousand dollars.
   (d)  For the fiscal year beginning July 1, 2019, and ending June 30, 2020, sixteen million five hundred thousand dollars.
   (e)  For the fiscal year beginning July 1, 2020, and ending June 30, 2021, sixteen million five hundred thousand dollars.
   (f)  For the fiscal year beginning July 1, 2021, and ending June 30, 2022, twenty-two million dollars.
   (g)  For the fiscal year beginning July 1, 2022, and ending June 30, 2023, twenty-two million dollars.
   (h)  For the fiscal year beginning July 1, 2023, and ending June 30, 2024, twenty-two million dollars.
   (i)  For the fiscal year beginning July 1, 2024, and ending June 30, 2025, twenty-two million dollars.
   (j)  For the fiscal year beginning July 1, 2025, and ending June 30, 2026, twenty-two million dollars.
   (k)  For the fiscal year beginning July 1, 2026, and ending June 30, 2027, twenty-two million dollars.
   (l)  For the fiscal year beginning July 1, 2027, and ending June 30, 2028, twenty-two million dollars.
   (m)  For the fiscal year beginning July 1, 2028, and ending June 30, 2029, twenty-two million dollars.
   (2)  This paragraph “0h” is repealed on January 1, 2030.
   Sec. ___.  NEW SECTION.  8.57B  Water quality infrastructure fund —— creation —— appropriations.
   1.  A water quality infrastructure fund is created within the division of soil conservation and water quality of the department of agriculture and land stewardship. The fund shall consist of moneys appropriated from the rebuild Iowa infrastructure fund pursuant to section 8.57, subsection 5, paragraph “0h”.
   2.  The fund shall be separate from the general fund of the state and the balance in the fund shall not be considered part of the balance of the general fund of the state. However, the fund shall be considered a special account for the purposes of section 8.53, relating to generally accepted accounting principles.
   3.  Moneys in the fund are appropriated to the division of soil conservation and water quality of the department of agriculture and land stewardship for the exclusive purpose of supporting water quality agriculture infrastructure programs created in section 466B.43.
   4.  Notwithstanding section 8.33, moneys in the fund that remain unencumbered or unobligated at the close of a fiscal year shall not revert but shall remain available for expenditure for the purposes designated. Notwithstanding section 12C.7, subsection 2, interest or earnings on moneys in the fund shall be credited to the fund.
   5.  This section is repealed on January 1, 2030.>
   2.  Page 2, by striking lines 10 and 11 and inserting: 
   <c.  b.  Priority shall be given to projects in which the meeting criteria established in section 455B.199B in which the applicant seeks financial assistance is to be used to obtain with financing under the>
   3.  Page 4, after line 8 by inserting: 
   <Sec. ___.  NEW SECTION.  16.134A  Water quality financial assistance fund.
   1.  A water quality financial assistance fund is created in the state treasury as a revolving fund.
   2.  The fund shall consist of all of the following:
   a.  (1)  Moneys transferred to the fund pursuant to section 423G.6.
   (2)  This paragraph “a” is repealed on January 1, 2038.
   b.  Appropriations made to the fund and transfers of interest, earnings, and moneys from other funds as provided by law.
   3.  For each fiscal year in the fiscal period beginning July 1, 2017, and ending June 30, 2037, there is appropriated the following percentages of the balance of the fund for the following purposes:
   a.  Forty percent to the Iowa finance authority to support the wastewater and drinking water treatment financial assistance program created in section 16.134.
   b.  Forty-five percent to the Iowa finance authority to be credited to the water quality financing program fund created pursuant to section 16.145.
   c.  Fifteen percent to the division of soil conservation and water quality of the department of agriculture and land stewardship to support the water quality urban infrastructure program created in section 466B.44.
   4.  Moneys in the fund are not subject to section 8.33. Notwithstanding section 12C.7, subsection 2, interest or earnings on moneys in the fund shall be credited to the fund.
   Sec. ___.  NEW SECTION.  16.143  Definitions.
   As used in this part, unless the context otherwise requires:
   1.  “Cost” means all costs, charges, expenses, or other indebtedness incurred by a loan recipient and determined by the committee as reasonable and necessary for carrying out all works and undertakings necessary or incidental to the accomplishment of any project.
   2.  “Eligible entity” means a municipality meeting the requirements in section 16.146 or a landowner, as determined by the committee, a public utility as defined in section 476.1, or a rural water district or rural water association as defined in section 357A.1.
   3.  “Loan recipient” means an eligible entity that has received a loan under the program.
   4.  “Municipality” means a governmental body such as a state agency or a political subdivision of the state. Municipality includes but is not limited to a city, city utility, county, soil and water conservation district, drainage district, sanitary district, a subdistrict of any of the foregoing districts, state agency, or other governmental body or corporation empowered to provide sewage collection and treatment services or drinking water, or any entity jointly exercising governmental powers pursuant to chapter 28E or 28F, or any other combination of two or more governmental bodies or corporations acting jointly under the laws of this state in connection with a project.
   5.  “Program” means the water quality financing program created in this part.
   6.  “Project” means any combination of improvements, structures, developments, tasks, actions, constructions, modifications, operations, or practices designed to improve water quality that are proposed by an eligible entity and approved by the committee. “Project” includes but is not limited to any of the following:
   a.  A project meeting the requirements of part 2 of this subchapter.
   b.  A project, operation, or practice undertaken or carried out to address watershed protection, flood prevention, or water quality improvement.
   c.  A project meeting the requirements of a sponsor project under section 455B.199.
   Sec. ___.  NEW SECTION.  16.144  Water quality financing program.
   1.  The authority, in cooperation with the department of natural resources and the department of agriculture and land stewardship, shall establish and administer a water quality financing program. The purpose of the program shall be to provide financial assistance to enhance the quality of surface water and groundwater, particularly by providing financial assistance for projects designed to improve water quality by addressing point and nonpoint sources, with a higher prioritization provided to collaborative efforts.
   2.  The authority shall determine the interest rate and repayment terms for loans made under the program, in cooperation with the department of natural resources and the department of agriculture and land stewardship, and the authority shall enter into loan agreements with eligible entities in compliance with and subject to the terms and conditions of the program as described in this part.
   3.  The authority may charge loan recipients fees and assess costs against such recipients necessary for the continued operation of the program. Such fees and costs shall not exceed the costs directly associated with the administration of the program. Fees and costs collected pursuant to this subsection shall be deposited in the appropriate fund or account created in section 16.145.
   4.  The program shall be administered by the authority in accordance with rules adopted by the authority pursuant to chapter 17A.
   Sec. ___.  NEW SECTION.  16.145  Water quality financing program fund —— appropriation —— other funds.
   1.  a.  A water quality financing program fund is created and shall consist of appropriations made to the fund, moneys credited to the fund pursuant to section 16.134A, and transfers of interest, earnings, and moneys from other funds as provided by law. The fund shall be administered by the authority as a revolving fund. Moneys in the fund are appropriated to the authority for purposes of the program. Notwithstanding section 8.33, moneys in the fund that remain unencumbered or unobligated at the close of a fiscal year shall not revert but shall remain available for expenditure for the purposes designated. Notwithstanding section 12C.7, subsection 2, interest or earnings on moneys in the fund shall be credited to the fund.
   b.  The authority shall use the moneys in the fund to provide financial assistance to eligible entities under the program. The authority may provide financial assistance in the form deemed most convenient for the efficient financing of projects, including loans, forgivable loans, or grants. The authority shall administer the fund and the program in such a manner as to provide a permanent source of water quality project financial assistance to eligible entities.
   c.  The authority may annually use an amount of not more than one percent of the moneys in the fund for administrative purposes.
   2.  a.  The authority may establish and maintain other funds and accounts determined to be necessary to carry out the purposes of the program and shall provide for the funding, administration, investment, restrictions, and disposition of the funds and accounts.
   b.  Moneys appropriated to and used by the authority for purposes of paying the costs and expenses associated with the administration of the program shall be administered as determined by the authority.
   c.  All moneys transferred to the authority shall be deposited and held in a fund or account established and maintained pursuant to this section for purposes of the program.
   3.  The funds or accounts held by the authority, or a trustee acting on behalf of the authority pursuant to a trust agreement related to the program, shall not be considered part of the general fund of the state, are not subject to appropriation for any other purpose by the general assembly, and in determining a general fund balance shall not be included in the general fund of the state, but shall remain in the funds and accounts maintained by the authority or trustee pursuant to a trust agreement. Funds and accounts held by the authority, or a trustee acting on behalf of the authority pursuant to a trust agreement related to the program, are separate dedicated funds and accounts under the administration and control of the authority and subject to section 16.31.
   4.  By October 1, 2018, and by October 1 of each year thereafter, the authority shall submit a report to the governor and the general assembly itemizing expenditures from the fund during the previous fiscal year.
   Sec. ___.  NEW SECTION.  16.146  Eligible entities —— agreements required.
   1.  An eligible entity may apply to the authority for financial assistance under the water quality financing program established in section 16.144 by submitting a plan that meets the following requirements:
   a.  The plan includes one or more projects that improve water quality in the local area or watershed. Projects using practices identified to practices in the latest version of the document entitled “Iowa Nutrient Reduction Strategy” initially presented in November 2012 by the department of agriculture and land stewardship, the department of natural resources, and Iowa state university of science and technology. A drainage or levee district established under chapter 468 shall utilize the installation of edge-of-field infrastructure as described in section 466B.43.
   b.  The plan describes in detail the manner in which the projects will be financed and undertaken, including, as applicable, the sources of revenue directed to financing the improvements as well as the municipalities or landowners that will be receiving the revenues and how such revenues will be spent on the projects.
   2.  The authority shall review and approve or deny applications for financial assistance. The provision of financial assistance under the program shall take into account, as applicable, the number of municipalities or landowners comprising an eligible entity and the eligible entity’s financing capacity. The authority shall score applications for financial assistance according to rules adopted pursuant to this part. The authority shall only provide financial assistance to eligible entities that have sufficient financing capacity and that submit an appropriate plan designed to improve water quality.
   3.  An approved eligible entity shall enter into an agreement with the authority for the provision of financial assistance. The agreement shall include standard terms for the receipt of program moneys and any other terms the authority deems necessary or convenient for the efficient administration of the program.>
   4.  Page 6, by striking lines 1 and 2 and inserting <to the water quality financial assistance fund created in section 16.134A:>
   5.  Page 6, after line 16 by inserting: 
   <Sec. ___.  NEW SECTION.  466B.43  Water quality agriculture infrastructure programs.
   1.  As part of the water quality initiative established pursuant to section 466B.42, the division shall administer water quality agriculture infrastructure programs created in this section.
   2.  The purpose of the programs is to support projects for the installation of infrastructure, including conservation structures, practices, or other measures that reduce contributing nutrient loads, associated sediment, or contaminants from sources to surface waters. The programs shall be administered in a manner that is consistent with the latest version of the “Iowa Nutrient Reduction Strategy” initially presented in November 2012 by the department of agriculture and land stewardship, the department of natural resources, and Iowa state university of science and technology.
   3.  An edge-of-field infrastructure program is created. The program shall support projects located on agricultural land, which may include demonstration projects, that capture or filter nutrients entering into a surface water. The program’s projects shall be limited to infrastructure designed and installed for use over multiple years, including but not limited to wetlands, bioreactor systems, saturated buffers, or land use changes. The program shall be financed on a cost-share basis.
   4.  An in-field infrastructure program is created. The program shall support projects located on agricultural land, which may include demonstration projects, that decrease erosion and precipitation-induced surface runoff, increase water infiltration rates, and increase soil sustainability. The program’s projects shall be limited to infrastructure designed and installed for use over multiple years, including but not limited to structures, terraces, and waterways located on cropland or pastureland, and including but not limited to soil conservation or erosion control structures or managed drainage systems. The program shall be financed on a cost-share basis.
   5.  Any state moneys used to finance a project under a water quality agriculture infrastructure program shall be administered according to an agreement entered into by the division and the owner of the land where the infrastructure is to be installed. The agreement shall include standard terms and conditions for the receipt of program moneys and any other terms and conditions the division deems necessary or convenient for the efficient administration of the project or program. The division may support multiple installations of infrastructure on a single parcel of land. The division may also combine programs if cost effective. The division may annually use an amount of not more than four percent of the moneys used to support a program for administrative purposes.
   6.  By October 1, 2017, and each October 1, thereafter, the division shall submit a report to the governor and the general assembly itemizing expenditures under the program during the previous fiscal year.
   7.  Any information obtained by the division identifying a person holding a legal interest in agricultural land or specific agricultural land shall be a confidential record under section 22.7.
   Sec. ___.  NEW SECTION.  466B.44  Water quality urban infrastructure program.
   1.  As part of the water quality initiative established pursuant to section 466B.42, the division shall administer a water quality urban infrastructure program.
   2.  The purpose of the program is to support watershed projects and advance implementation of the latest version of the “Iowa Nutrient Reduction Strategy” initially presented in November 2012 by the department of agriculture and land stewardship, the department of natural resources, and Iowa state university of science and technology, which program support may include demonstration projects that decrease erosion, precipitation-induced surface runoff, and storm water discharges and increase water infiltration rates. The program’s projects shall be based on Iowa’s storm water management manual published by the department of natural resources.
   3.  The program shall be financed on a cost-share basis or through cooperative agreements with watershed projects funded through section 455B.199 whose project activities fall outside the territorial boundaries of a city.
   4.  Any state moneys used to finance a project under a water quality urban infrastructure program shall be administered according to an agreement entered into by the division and the owner of the land where the infrastructure is to be installed. The agreement shall include standard terms and conditions for the receipt of program moneys and any other terms and conditions the division deems necessary or convenient for the efficient administration of the project or program. The division may support multiple installations of infrastructure on a single parcel of land. The division may annually use an amount of not more than four percent of the moneys used to support a program for administrative purposes.
   5.  Notwithstanding any other provision in this section to the contrary, beginning on July 1, 2018, the division may use any amount available to support the water quality urban infrastructure program to instead support the three-year data collection of in-field practices project as enacted in 2015 Iowa Acts, ch. 132, §18.
   6.  By October 1, 2018, and by October 1 of each year thereafter, the division shall submit a report to the governor and the general assembly itemizing expenditures under the program during the previous fiscal year.
   7.  Any information obtained by the division identifying a person holding a legal interest in land or specific land shall be a confidential record under section 22.7.>
   6.  Page 6, by striking lines 17 and 18 and inserting: 
   <Sec. ___.  EFFECTIVE DATE.  The following provisions of this Act take effect July 1, 2017:
   1.  The section of this Act amending section 16.134.
   2.  The section of this Act enacting section 16.134A.
   3.  The sections of this Act enacting sections 16.143, 16.144, 16.145, and 16.146.
   4.  The section of this Act amending section 423.3.
   5.  The sections of this Act enacting chapter 423G.
   6.  The section of this Act enacting section 466B.44.>
   7.  Title page, line 2, after <program,> by inserting <providing for appropriations from the rebuild Iowa infrastructure fund, creating a water quality infrastructure fund, establishing a water quality financing program, providing for cost-share programs for infrastructure on agricultural and urban land under the water quality initiative,>
   8.  By renumbering as necessary.

______________________________
COMMITTEE ON APPROPRIATIONS

GRASSLEY of Butler, Chairperson