House File 2771 H-8455 Amend the amendment, H-8404, to House File 2771, as follows: 1 1. Page 23, after line 18 by inserting: 2 < DIVISION ___ 3 WATER QUALITY FUNDING 4 Sec. ___. REBUILD IOWA INFRASTRUCTURE FUND —— SPECIAL 5 APPROPRIATIONS. There is appropriated from the rebuild Iowa 6 infrastructure fund created in section 8.57 to the Iowa finance 7 authority for the fiscal year beginning July 1, 2026, and 8 ending June 30, 2027, the following amounts, or so much thereof 9 as is necessary, to be used for the purposes designated: 10 1. a. For deposit in the water quality financial assistance 11 fund created in section 16.134A for the purposes of supporting 12 the wastewater and drinking water treatment financial 13 assistance program created in section 16.134: 14 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 8,000,000 15 b. The moneys appropriated in paragraph “a” shall be used to 16 provide financial assistance, including grants, for projects 17 designed to improve water quality by addressing point and 18 nonpoint sources, with a higher prioritization provided to 19 collaborative effort. 20 2. For deposit in the rural Iowa infrastructure bank program 21 fund created in section 16.240, as enacted in this division of 22 this Act: 23 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 10,000,000 24 Sec. ___. Section 16.134, subsection 4, paragraph i, Code 25 2026, is amended to read as follows: 26 i. An applicant shall not receive a grant that exceeds five 27 hundred thousand one million dollars. 28 Sec. ___. Section 16.134A, subsection 3, Code 2026, is 29 amended to read as follows: 30 3. For Except for moneys deposited in the fund for 31 a specified purpose, for each fiscal year in the period 32 beginning July 1, 2018 2026 , and ending June 30, 2039, there 33 is appropriated the following percentages of amounts from the 34 balance of the fund for all of the following purposes: 35 -1- H 8404.4439 (1) 91 sb/js 1/ 5 #1.

a. Forty percent to the Iowa finance authority to support 1 the wastewater and drinking water treatment financial 2 assistance program created in section 16.134 Five hundred 3 thousand dollars to the department of natural resources for 4 the purposes of water quality monitoring, including, at the 5 department’s discretion, continuous monitoring . 6 b. Forty-five percent to the Iowa finance authority to be 7 credited to the water quality financing program fund created 8 pursuant to section 16.153 . The following percentages of moneys 9 remaining in the fund for the following purposes: 10 (1) Sixty-five percent to the Iowa finance authority to 11 support the wastewater and drinking water treatment financial 12 assistance program created in section 16.134. 13 c. (2) Fifteen percent to the division of soil conservation 14 and water quality of the department of agriculture and land 15 stewardship to support the water quality urban infrastructure 16 program created in section 466B.44 . 17 (3) Twenty percent to the division of soil conservation 18 and water quality of the department of agriculture and land 19 stewardship for deposit in the water quality initiative fund 20 created in section 466B.45 to provide technical assistance 21 and support conservation practices, including but not limited 22 to buffers, cover crops, edge-of-field structures, grazing 23 systems, and working lands, in counties located in the 24 following United States geological survey hydrologic unit code 25 8 watersheds: 26 (a) Boone. 27 (b) East fork Des Moines. 28 (c) Middle Des Moines. 29 (d) North Raccoon. 30 (e) South Raccoon. 31 (f) Upper Des Moines. 32 Sec. ___. Section 16.152, Code 2026, is amended by adding 33 the following new subsections: 34 NEW SUBSECTION . 5. The authority shall not initiate any 35 -2- H 8404.4439 (1) 91 sb/js 2/ 5

new loans under this part after June 30, 2026. Any loan or 1 interest payments received by the authority on or after July 2 1, 2026, shall be deposited in the water quality financial 3 assistance fund created pursuant to section 16.134A for the 4 purposes of supporting the wastewater and drinking water 5 treatment financial assistance program created in section 6 16.134. 7 NEW SUBSECTION . 6. For the fiscal year beginning July 1, 8 2026, and ending June 30, 2027, the authority shall allocate 9 a sum not to exceed twenty-five million dollars from any 10 unencumbered or unobligated moneys in the water quality 11 financing program fund to a regional water authority, with 12 membership consisting of public utilities, as defined in 13 section 476.1, rural water districts organized and existing 14 under chapter 357A, and other governmental entities, which 15 serves a population of at least six hundred thousand and 16 is headquartered in the most populous county in the state 17 based on the 2020 federal decennial census, for the purpose 18 of constructing and installing additional nutrient removal 19 technology. These moneys shall remain available for 20 expenditure until June 30, 2029. 21 NEW SUBSECTION . 7. Any unencumbered or unobligated moneys 22 in the water quality financing program fund created pursuant to 23 section 16.153 remaining after July 31, 2026, are transferred 24 to the water quality financial assistance fund created pursuant 25 to section 16.134A, to be used for purposes specified in 26 section 16.134A, subsection 3, paragraph “b” , subparagraph 27 (3). An amount equal to the amount of moneys obligated by the 28 authority prior to July 1, 2026, shall remain in the water 29 quality financing program fund. 30 NEW SUBSECTION . 8. This part is repealed on the date that 31 all loans made pursuant to this part are paid in full. The 32 authority shall notify the Iowa Code editor of this occurrence. 33 Sec. ___. NEW SECTION . 16.240 Rural Iowa infrastructure 34 bank revolving loan program —— fund. 35 -3- H 8404.4439 (1) 91 sb/js 3/ 5

1. As used in this section, “small or medium sized 1 community” means a city with a population of eleven thousand or 2 less. 3 2. The authority shall establish and administer a rural 4 Iowa infrastructure bank revolving loan program. The purpose 5 of the program is to provide loans to small or medium sized 6 communities to upgrade water or wastewater infrastructure. 7 3. a. A small or medium size community shall apply to the 8 authority for a loan under the program in a manner approved by 9 the authority. 10 b. Loan agreements may contain terms and conditions the 11 authority deems advisable, but the interest rate on any loan 12 shall not exceed one percent. 13 4. A rural Iowa infrastructure bank program fund is created 14 in the state treasury under the control of the authority and 15 consisting of moneys appropriated by the general assembly and 16 any other moneys available to and obtained or accepted by the 17 authority for placement in the fund. Moneys in the fund are 18 appropriated to the authority for the purpose of providing 19 loans to small or medium sized communities under the program 20 established in this section. Repayments of moneys loaned and 21 recaptures of loans shall be deposited in the fund. Moneys 22 in the fund are not subject to section 8.33. Notwithstanding 23 section 12C.7, interest or earnings on moneys in the fund shall 24 be credited to the fund. 25 5. The authority may adopt rules pursuant to chapter 17A to 26 administer this section. 27 Sec. ___. CODE EDITOR DIRECTIVE. The Code editor is 28 directed to designate section 16.240, as enacted by this 29 division of this Act, as chapter 16, subchapter X, part 30 12, entitled “Rural Iowa Infrastructure Bank Revolving Loan 31 Program”. >> 32 2. By renumbering as necessary. 33 -4- H 8404.4439 (1) 91 sb/js 4/ 5