H-8455

   Amend  the amendment, H-8404, to House File 2771, as follows:
   1.  Page 23, after line 18 by inserting: 
<DIVISION ___
WATER QUALITY FUNDING

   Sec. ___.  REBUILD IOWA INFRASTRUCTURE FUND —— SPECIAL APPROPRIATIONS.  There is appropriated from the rebuild Iowa infrastructure fund created in section 8.57 to the Iowa finance authority for the fiscal year beginning July 1, 2026, and ending June 30, 2027, the following amounts, or so much thereof as is necessary, to be used for the purposes designated:
   1.  a.  For deposit in the water quality financial assistance fund created in section 16.134A for the purposes of supporting the wastewater and drinking water treatment financial assistance program created in section 16.134:
   ...................................................................... $  8,000,000

   b.  The moneys appropriated in paragraph “a” shall be used to provide financial assistance, including grants, for projects designed to improve water quality by addressing point and nonpoint sources, with a higher prioritization provided to collaborative effort.
   2.  For deposit in the rural Iowa infrastructure bank program fund created in section 16.240, as enacted in this division of this Act:
   ...................................................................... $ 10,000,000
   Sec. ___.  Section 16.134, subsection 4, paragraph i, Code 2026, is amended to read as follows:
   i.  An applicant shall not receive a grant that exceeds five hundred thousand one million dollars.
   Sec. ___.  Section 16.134A, subsection 3, Code 2026, is amended to read as follows:
   3.  For Except for moneys deposited in the fund for a specified purpose, for each fiscal year in the period beginning July 1, 2018 2026, and ending June 30, 2039, there is appropriated the following percentages of amounts from the balance of the fund for all of 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 Five hundred thousand dollars to the department of natural resources for the purposes of water quality monitoring, including, at the department’s discretion, continuous monitoring.
   b.  Forty-five percent to the Iowa finance authority to be credited to the water quality financing program fund created pursuant to section 16.153. The following percentages of moneys remaining in the fund for the following purposes:
   (1)  Sixty-five percent to the Iowa finance authority to support the wastewater and drinking water treatment financial assistance program created in section 16.134.
   c.  (2)  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.
   (3)  Twenty percent to the division of soil conservation and water quality of the department of agriculture and land stewardship for deposit in the water quality initiative fund created in section 466B.45 to provide technical assistance and support conservation practices, including but not limited to buffers, cover crops, edge-of-field structures, grazing systems, and working lands, in counties located in the following United States geological survey hydrologic unit code 8 watersheds:
   (a)  Boone.
   (b)  East fork Des Moines.
   (c)  Middle Des Moines.
   (d)  North Raccoon.
   (e)  South Raccoon.
   (f)  Upper Des Moines.
   Sec. ___.  Section 16.152, Code 2026, is amended by adding the following new subsections:
   NEW SUBSECTION.  5.  The authority shall not initiate any new loans under this part after June 30, 2026. Any loan or interest payments received by the authority on or after July 1, 2026, shall be deposited in the water quality financial assistance fund created pursuant to section 16.134A for the purposes of supporting the wastewater and drinking water treatment financial assistance program created in section 16.134.
   NEW SUBSECTION.  6.  For the fiscal year beginning July 1, 2026, and ending June 30, 2027, the authority shall allocate a sum not to exceed twenty-five million dollars from any unencumbered or unobligated moneys in the water quality financing program fund to a regional water authority, with membership consisting of public utilities, as defined in section 476.1, rural water districts organized and existing under chapter 357A, and other governmental entities, which serves a population of at least six hundred thousand and is headquartered in the most populous county in the state based on the 2020 federal decennial census, for the purpose of constructing and installing additional nutrient removal technology. These moneys shall remain available for expenditure until June 30, 2029.
   NEW SUBSECTION.  7.  Any unencumbered or unobligated moneys in the water quality financing program fund created pursuant to section 16.153 remaining after July 31, 2026, are transferred to the water quality financial assistance fund created pursuant to section 16.134A, to be used for purposes specified in section 16.134A, subsection 3, paragraph “b”, subparagraph (3). An amount equal to the amount of moneys obligated by the authority prior to July 1, 2026, shall remain in the water quality financing program fund.
   NEW SUBSECTION.  8.  This part is repealed on the date that all loans made pursuant to this part are paid in full. The authority shall notify the Iowa Code editor of this occurrence.
   Sec. ___.  NEW SECTION.  16.240  Rural Iowa infrastructure bank revolving loan program —— fund.
   1.  As used in this section, “small or medium sized community” means a city with a population of eleven thousand or less.
   2.  The authority shall establish and administer a rural Iowa infrastructure bank revolving loan program. The purpose of the program is to provide loans to small or medium sized communities to upgrade water or wastewater infrastructure.
   3.  a.  A small or medium size community shall apply to the authority for a loan under the program in a manner approved by the authority.
   b.  Loan agreements may contain terms and conditions the authority deems advisable, but the interest rate on any loan shall not exceed one percent.
   4.  A rural Iowa infrastructure bank program fund is created in the state treasury under the control of the authority and consisting of moneys appropriated by the general assembly and any other moneys available to and obtained or accepted by the authority for placement in the fund. Moneys in the fund are appropriated to the authority for the purpose of providing loans to small or medium sized communities under the program established in this section. Repayments of moneys loaned and recaptures of loans shall be deposited in the fund. Moneys in the fund are not subject to section 8.33. Notwithstanding section 12C.7, interest or earnings on moneys in the fund shall be credited to the fund.
   5.  The authority may adopt rules pursuant to chapter 17A to administer this section.
   Sec. ___.  CODE EDITOR DIRECTIVE.  The Code editor is directed to designate section 16.240, as enacted by this division of this Act, as chapter 16, subchapter X, part 12, entitled “Rural Iowa Infrastructure Bank Revolving Loan Program”.>>
   2.  By renumbering as necessary.

______________________________
MOMMSEN of Clinton