Senate Amendment to House File 2771 H-8471 Amend House File 2771, as amended, passed, and reprinted by 1 the House, as follows: 2 1. By striking everything after the enacting clause and 3 inserting: 4 < DIVISION I 5 DEPARTMENT OF AGRICULTURE AND LAND STEWARDSHIP 6 PART A 7 GENERAL APPROPRIATIONS 8 Section 1. GENERAL FUND. 9 1. There is appropriated from the general fund of the state 10 to the department of agriculture and land stewardship for the 11 fiscal year beginning July 1, 2026, and ending June 30, 2027, 12 the following amount, or so much thereof as is necessary, to be 13 used for the purposes designated: 14 For purposes of supporting the department, including its 15 divisions, for administration, regulation, and programs; for 16 salaries, support, maintenance, and miscellaneous purposes; and 17 for not more than the following full-time equivalent positions: 18 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 20,733,294 19 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . FTEs 420.00 20 2. Of the amount appropriated in subsection 1, the following 21 amount is transferred to Iowa state university of science and 22 technology to be used for the university’s midwest grape and 23 wine industry institute: 24 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 325,000 25 3. The department shall submit a report each quarter of 26 the fiscal year to the general assembly and the department 27 of management. The report must describe in detail the 28 expenditure of moneys appropriated in this section to support 29 the department’s administration, regulation, and programs. 30 Sec. 2. UNCLAIMED PARI-MUTUEL WAGERING WINNINGS —— 31 HORSE AND DOG RACING. There is appropriated from the moneys 32 available under section 99D.13 to the department of agriculture 33 and land stewardship for the fiscal year beginning July 1, 34 2026, and ending June 30, 2027, the following amount, or so 35 -1- HF 2771.4523.S (1) 91 mb 1/ 27 #1.
much thereof as is necessary, to be used for the purposes 1 designated: 2 For purposes of supporting the department’s administration 3 and enforcement of horse and dog racing law pursuant to section 4 99D.22 , including for salaries, support, maintenance, and 5 miscellaneous purposes: 6 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 305,516 7 Sec. 3. RENEWABLE FUEL INFRASTRUCTURE FUND —— MOTOR 8 FUEL INSPECTION. There is appropriated from the renewable 9 fuel infrastructure fund created in section 159A.16 to the 10 department of agriculture and land stewardship for the fiscal 11 year beginning July 1, 2026, and ending June 30, 2027, the 12 following amount, or so much thereof as is necessary, to be 13 used for the purposes designated: 14 For purposes of the inspection of motor fuel, including 15 salaries, support, maintenance, and miscellaneous purposes: 16 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 500,000 17 Sec. 4. SPECIAL APPROPRIATIONS FROM GENERAL FUND. There 18 is appropriated from the general fund of the state to the 19 department of agriculture and land stewardship for the fiscal 20 year beginning July 1, 2026, and ending June 30, 2027, the 21 following amounts, or so much thereof as is necessary, to be 22 used for the purposes designated: 23 1. DAIRY REGULATION 24 a. For purposes of performing functions pursuant to section 25 192.109 , including conducting a survey of grade “A” milk and 26 certifying the results to the secretary of agriculture: 27 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 189,196 28 b. Notwithstanding section 8.33 , moneys appropriated in 29 this subsection that remain unencumbered or unobligated at the 30 close of the fiscal year shall not revert but shall remain 31 available for expenditure for the purposes designated until the 32 close of the succeeding fiscal year. 33 2. LOCAL FOOD AND FARM PROGRAM 34 a. For purposes of supporting the local food and farm 35 -2- HF 2771.4523.S (1) 91 mb 2/ 27
program pursuant to chapter 267A : 1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 125,000 2 b. The department shall enter into a cost-sharing agreement 3 with Iowa state university of science and technology to support 4 the local food and farm program coordinator position as part of 5 the university’s cooperative extension service in agriculture 6 and home economics pursuant to chapter 267A . 7 c. Notwithstanding section 8.33 , moneys appropriated in 8 this subsection that remain unencumbered or unobligated at the 9 close of the fiscal year shall not revert but shall remain 10 available for expenditure for the purposes designated until the 11 close of the succeeding fiscal year. 12 3. AGRICULTURAL EDUCATION 13 a. For purposes of allocating moneys to an Iowa association 14 affiliated with a national organization that promotes 15 agricultural education providing for future farmers: 16 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 150,000 17 b. Notwithstanding section 8.33 , moneys appropriated in 18 this subsection that remain unencumbered or unobligated at the 19 close of the fiscal year shall not revert but shall remain 20 available for expenditure for the purposes designated until the 21 close of the succeeding fiscal year. 22 4. FOREIGN ANIMAL DISEASES AFFLICTING LIVESTOCK 23 For deposit in the foreign animal disease preparedness and 24 response fund created in section 163.3B : 25 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 1,050,000 26 5. FARMERS WITH DISABILITIES PROGRAM 27 a. For purposes of supporting a program for farmers with 28 disabilities: 29 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 230,000 30 b. The moneys appropriated in this subsection shall be 31 used for the public purpose of providing a grant to a national 32 nonprofit organization with over 80 years of experience in 33 assisting children and adults with disabilities and special 34 needs. The moneys shall be used to support a nationally 35 -3- HF 2771.4523.S (1) 91 mb 3/ 27
recognized program that began in 1986 and has been replicated 1 in at least 30 other states, but is not available through 2 any other entity in this state, and that provides assistance 3 to farmers with disabilities in all 99 counties to allow the 4 farmers to remain in their own homes and be gainfully engaged 5 in farming through provision of agricultural worksite and home 6 modification consultations, peer support services, services 7 to families, information and referral, and equipment loan 8 services. 9 c. Notwithstanding section 8.33 , moneys appropriated in 10 this subsection that remain unencumbered or unobligated at the 11 close of the fiscal year shall not revert but shall remain 12 available for expenditure for the purposes designated until the 13 close of the succeeding fiscal year. 14 6. LOESS HILLS DEVELOPMENT AND CONSERVATION FUND 15 a. For deposit in the loess hills development and 16 conservation fund created pursuant to section 161D.2 : 17 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 300,000 18 b. (1) Of the amount appropriated in this subsection, 19 $260,000 shall be allocated to the fund’s hungry canyons 20 account. 21 (2) Not more than 10 percent of the moneys allocated in this 22 paragraph may be used for administrative costs. 23 c. (1) Of the amount appropriated in this subsection, 24 $40,000 shall be allocated to the fund’s loess hills alliance 25 account. 26 (2) Not more than 10 percent of the moneys allocated in this 27 paragraph may be used for administrative costs. 28 7. SOUTHERN IOWA DEVELOPMENT AND CONSERVATION FUND 29 a. For deposit in the southern Iowa development and 30 conservation fund created pursuant to section 161D.12 : 31 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 100,000 32 b. Not more than 10 percent of the moneys appropriated in 33 this subsection may be used for administrative costs. 34 8. GRAIN REGULATION 35 -4- HF 2771.4523.S (1) 91 mb 4/ 27
For the administration and enforcement of chapters 203 1 and 203C , including salaries, support, maintenance, and 2 miscellaneous purposes: 3 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 350,000 4 9. CHOOSE IOWA FUND 5 a. For deposit in the choose Iowa fund created in section 6 187.201 : 7 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 2,113,000 8 b. (1) Of the amount appropriated in this subsection, 9 the department shall use at least $500,000 to support the 10 value-added agricultural grant program created in section 11 187.321 . 12 (2) Of the amount appropriated in this subsection, the 13 department may use up to $1,113,000 to support the choose Iowa 14 promotional program as provided in chapter 187, subchapter III, 15 part 1 . 16 (3) Of the amount appropriated in this subsection, the 17 department shall use at least $500,000 to support the dairy 18 innovation and revitalization program created in section 19 187.311 . 20 c. The department may increase or decrease the amount of 21 moneys used to support a program described in paragraph “b” 22 based on the amount of moneys awarded to persons participating 23 in the program. The department shall publish a notice of the 24 department’s action to increase or decrease the amount on the 25 department’s internet site where the programs are advertised at 26 least thirty days prior to the day that the department takes 27 such action. 28 10. CHOOSE IOWA FOOD BANK PURCHASING PROGRAM 29 a. For purposes of supporting the choose Iowa food 30 bank purchasing program to assist eligible participants in 31 purchasing qualified food products pursuant to section 187.331 : 32 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 200,000 33 b. Notwithstanding section 8.33 , moneys appropriated in 34 this subsection that remain unencumbered or unobligated at the 35 -5- HF 2771.4523.S (1) 91 mb 5/ 27
close of the fiscal year shall not revert but shall remain 1 available for expenditure for the purposes designated until the 2 close of the succeeding fiscal year. 3 PART B 4 CONTINGENT APPROPRIATIONS 5 Sec. 5. CHOOSE IOWA SCHOOL PURCHASING PROGRAM. 6 1. There is appropriated from the general fund of the state 7 to the department of agriculture and land stewardship for the 8 fiscal year beginning July 1, 2026, and ending June 30, 2027, 9 the following amount, or so much thereof as is necessary, to be 10 used for the purposes designated: 11 For purposes of supporting the choose Iowa school purchasing 12 program to assist eligible schools and school districts in 13 purchasing qualified food products pursuant to section 187.307: 14 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 200,000 15 2. Notwithstanding section 8.33, moneys appropriated in 16 this section that remain unencumbered or unobligated at the 17 close of the fiscal year shall not revert but shall remain 18 available for expenditure for the purposes designated until the 19 close of the succeeding fiscal year. 20 Sec. 6. CONTINGENT EFFECTIVE DATE. This part of this 21 division of this Act takes effect July 1, 2026, if 2026 Iowa 22 Acts, House File 2748, or successor legislation, is enacted. 23 DIVISION II 24 DEPARTMENT OF NATURAL RESOURCES 25 Sec. 7. GENERAL FUND. 26 1. There is appropriated from the general fund of the state 27 to the department of natural resources for the fiscal year 28 beginning July 1, 2026, and ending June 30, 2027, the following 29 amount, or so much thereof as is necessary, to be used for the 30 purposes designated: 31 For purposes of supporting the department, including its 32 divisions, for administration, regulation, and programs; for 33 salaries, support, maintenance, and miscellaneous purposes; and 34 for not more than the following full-time equivalent positions: 35 -6- HF 2771.4523.S (1) 91 mb 6/ 27
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 12,816,738 1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . FTEs 1,145.95 2 2. Of the number of full-time equivalent positions 3 authorized to the department pursuant to subsection 1, 50.00 4 full-time equivalent positions shall be allocated by the 5 department for seasonal employees for purposes of providing 6 maintenance, upkeep, and sanitary services at state parks. 7 This subsection shall not impact conservation officer, park 8 ranger, or park manager positions within the department. 9 3. The department shall submit a report each quarter of 10 the fiscal year to the general assembly and the department of 11 management. The report must describe in detail the expenditure 12 of moneys appropriated under this section to support the 13 department’s administration, regulation, and programs. 14 Sec. 8. STATE FISH AND GAME PROTECTION FUND —— REGULATION 15 AND ADVANCEMENT OF OUTDOOR ACTIVITIES. 16 1. There is appropriated from the state fish and game 17 protection fund created pursuant to section 456A.17 to the 18 department of natural resources for the fiscal year beginning 19 July 1, 2026, and ending June 30, 2027, the following amount, 20 or so much thereof as is necessary, to be used for the purposes 21 designated: 22 For purposes of supporting the regulation or advancement of 23 hunting, fishing, or trapping, or the protection, propagation, 24 restoration, management, or harvest of fish or wildlife, 25 including for administration, regulation, law enforcement, and 26 programs; and for salaries, support, maintenance, equipment, 27 and miscellaneous purposes: 28 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 53,095,606 29 2. Notwithstanding section 455A.10 , the department may use 30 the unappropriated balance remaining in the state fish and game 31 protection fund to provide for the funding of health and life 32 insurance premium payments from unused sick leave balances 33 of conservation peace officers employed in a protection 34 occupation, as described in section 97B.49B , who retire. 35 -7- HF 2771.4523.S (1) 91 mb 7/ 27
3. Notwithstanding section 455A.10 , the department may 1 use the unappropriated balance remaining in the state fish 2 and game protection fund for the fiscal year beginning July 3 1, 2026, and ending June 30, 2027, as is necessary to fund 4 salary adjustments for departmental employees for which the 5 general assembly has made an operating budget appropriation in 6 subsection 1. 7 Sec. 9. GROUNDWATER PROTECTION FUND —— WATER QUALITY. There 8 is appropriated from the groundwater protection fund created 9 in section 455E.11 to the department of natural resources for 10 the fiscal year beginning July 1, 2026, and ending June 30, 11 2027, from those moneys that are not allocated pursuant to 12 that section, the following amount, or so much thereof as is 13 necessary, to be used for the purposes designated: 14 For purposes of supporting the department’s protection 15 of the state’s groundwater, including for administration, 16 regulation, and programs, and for salaries, support, 17 maintenance, equipment, and miscellaneous purposes: 18 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 3,455,850 19 Sec. 10. GROUNDWATER PROTECTION FUND —— INTEREST AND 20 EARNINGS —— WATER QUALITY. 21 1. There is appropriated from interest and earnings on 22 moneys in the groundwater protection fund created in section 23 455E.11 and accounts therein, as described in section 455E.11, 24 subsection 1, paragraph “a”, to the department of natural 25 resources for the fiscal year beginning July 1, 2026, and 26 ending June 30, 2027, the following amounts, or so much thereof 27 as is necessary, to be used for the purposes designated, in the 28 following order of priority: 29 a. For purposes of water quality monitoring, including 30 providing grants to organizations across the state of Iowa and, 31 at the department’s discretion, continuous monitoring: 32 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 300,000 33 b. For purposes of supporting the department’s protection 34 of the state’s groundwater, including for administration, 35 -8- HF 2771.4523.S (1) 91 mb 8/ 27
regulation, and programs, and for salaries, support, 1 maintenance, equipment, and miscellaneous purposes: 2 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 176,150 3 2. Any awarding of a grant to an organization pursuant 4 to subsection 1, paragraph “a”, must be agreed to by the 5 department of agriculture and land stewardship, the department 6 of natural resources, and the college of agriculture and life 7 sciences at Iowa state university of science and technology. 8 3. Notwithstanding subsection 1, the amounts appropriated 9 in this section shall not exceed the total amount of interest 10 and earnings on moneys in the groundwater protection fund and 11 accounts therein accrued during the fiscal year beginning July 12 1, 2026. In addition, the amounts appropriated in this section 13 shall only be made available after the maximum amount of such 14 interest and earnings appropriated in this Act to the state 15 university of Iowa is made available to the university. 16 Sec. 11. SPECIAL SNOWMOBILE FUND —— SNOWMOBILE 17 PROGRAM. There is appropriated from the special snowmobile 18 fund created under section 321G.7 to the department of natural 19 resources for the fiscal year beginning July 1, 2026, and 20 ending June 30, 2027, the following amount, or so much thereof 21 as is necessary, to be used for the purposes designated: 22 For purposes of administering and enforcing the state 23 snowmobile programs: 24 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 100,000 25 Sec. 12. SPECIAL APPROPRIATIONS FROM GENERAL FUND. There 26 is appropriated from the general fund of the state to the 27 department of natural resources for the fiscal year beginning 28 July 1, 2026, and ending June 30, 2027, the following amounts, 29 or so much thereof as is necessary, to be used for the purposes 30 designated: 31 1. FLOODPLAIN MANAGEMENT AND DAM SAFETY 32 a. For purposes of supporting floodplain management and dam 33 safety: 34 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 1,510,000 35 -9- HF 2771.4523.S (1) 91 mb 9/ 27
b. Of the amount appropriated in this subsection, up to 1 $400,000 may be used by the department to acquire or install 2 stream gages for purposes of tracking and predicting flood 3 events and for compiling necessary data to improve flood 4 frequency analysis. 5 c. Notwithstanding section 8.33 , moneys appropriated in 6 this subsection that remain unencumbered or unobligated at the 7 close of the fiscal year shall not revert but shall remain 8 available for expenditure for the purposes designated until the 9 close of the succeeding fiscal year. 10 2. FORESTRY HEALTH MANAGEMENT 11 a. For purposes of providing for forestry health management 12 programs: 13 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 525,000 14 b. Notwithstanding section 8.33 , moneys appropriated in 15 this subsection that remain unencumbered or unobligated at the 16 close of the fiscal year shall not revert but shall remain 17 available for expenditure for the purposes designated until the 18 close of the succeeding fiscal year. 19 3. STATE PARK OPERATIONS 20 For supporting operations at state parks, including 21 maintenance and repair of grounds and facilities: 22 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 1,000,000 23 4. STATE PARK MAINTENANCE 24 For structural and infrastructural repairs in state parks: 25 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 300,000 26 DIVISION III 27 IOWA STATE UNIVERSITY 28 Sec. 13. SPECIAL APPROPRIATIONS FROM GENERAL FUND. There 29 is appropriated from the general fund of the state to Iowa 30 state university of science and technology for the fiscal year 31 beginning July 1, 2026, and ending June 30, 2027, the following 32 amounts, or so much thereof as is necessary, to be used for the 33 purposes designated: 34 1. VETERINARY DIAGNOSTIC LABORATORY —— OPERATION 35 -10- HF 2771.4523.S (1) 91 mb 10/ 27
a. For purposes of supporting the college of veterinary 1 medicine for the operation of the veterinary diagnostic 2 laboratory, and for not more than the following full-time 3 equivalent positions: 4 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 4,799,898 5 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . FTEs 51.00 6 b. (1) Iowa state university of science and technology 7 shall not reduce the amount that it allocates to support the 8 college of veterinary medicine from any other source due to the 9 appropriation made in this subsection. 10 (2) Subparagraph (1) does not apply to a reduction made 11 to support the college of veterinary medicine if the same 12 percentage of reduction imposed on the college of veterinary 13 medicine is also imposed on all of Iowa state university of 14 science and technology’s budget units. 15 2. VETERINARY DIAGNOSTIC LABORATORY —— TRANSITION TO 16 REFURBISHED FACILITY. 17 To assist the college of veterinary medicine veterinary 18 diagnostic laboratory in installing and moving equipment into 19 its refurbished facility: 20 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 122,000 21 3. MANAGEMENT OF PRIVATE FORESTS 22 a. For purposes of supporting the Iowa cooperative 23 extension service in agriculture and home economics in 24 providing technical support to landowners and loggers regarding 25 the management of private forests in northeast Iowa, and for 26 not more than the following full-time equivalent positions: 27 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 150,000 28 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . FTEs 1.00 29 b. The department of natural resources shall cooperate with 30 the Iowa cooperative extension service in agriculture and home 31 economics in administering this subsection. 32 4. LIVESTOCK DISEASE RESEARCH 33 a. For deposit in the livestock disease research fund 34 created in section 267.8 : 35 -11- HF 2771.4523.S (1) 91 mb 11/ 27
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 291,390 1 b. Moneys appropriated under this subsection shall be used 2 by Iowa state university of science and technology to support 3 animal disease research in areas of importance to livestock 4 producers. 5 Sec. 14. IOWA NUTRIENT RESEARCH FUND —— VETERINARY 6 DIAGNOSTIC LABORATORY. Notwithstanding section 466B.46 , there 7 is appropriated from the Iowa nutrient research fund created 8 in section 466B.46 to Iowa state university of science and 9 technology for the fiscal year beginning July 1, 2026, and 10 ending June 30, 2027, the following amount, or so much thereof 11 as is necessary, to be used for the purposes designated: 12 For purposes of supporting the college of veterinary 13 medicine for the operation of the veterinary diagnostic 14 laboratory: 15 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 120,000 16 DIVISION IV 17 STATE UNIVERSITY OF IOWA 18 Sec. 15. IOWA’S CENTER FOR AGRICULTURAL SAFETY AND HEALTH 19 (I-CASH). 20 1. There is appropriated from the general fund of the state 21 to the state university of Iowa for the fiscal year beginning 22 July 1, 2026, and ending June 30, 2027, the following amount, 23 or so much thereof as is necessary, to be used for the purposes 24 designated: 25 For supporting the operations of Iowa’s center for 26 agricultural safety and health, as part of the university’s 27 college of public health, and in cooperation with the 28 department of agriculture and land stewardship, to anticipate, 29 recognize, and prevent occupational illness and injury among 30 members of the agricultural community: 31 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 128,154 32 2. a. As a condition of the appropriation made in 33 subsection 1, the state university of Iowa shall retain the 34 director of Iowa’s center for agricultural safety and health 35 -12- HF 2771.4523.S (1) 91 mb 12/ 27
employed on the effective date of this division of this Act for 1 at least the same number of hours for the fiscal year beginning 2 July 1, 2026, as worked by the director during the fiscal year 3 beginning July 1, 2025. 4 b. As a condition of the appropriation made in subsection 5 1, the state university of Iowa shall not reduce the amount 6 allocated to support Iowa’s center for agricultural safety and 7 health from any other source due to the appropriation made in 8 subsection 1. 9 3. If moneys appropriated in subsection 1 revert as required 10 pursuant to section 8.33 , the state university of Iowa shall 11 transfer to the general fund of the state from any otherwise 12 unencumbered or unobligated moneys from any other general 13 fund appropriation or from any moneys available from other 14 funding sources an amount equal to the amount appropriated in 15 subsection 1 less any amount that reverted to the general fund 16 of the state pursuant to section 8.33 . 17 Sec. 16. IOWA GEOLOGICAL SURVEY —— GROUNDWATER PLANNING AND 18 RESOURCE ASSESSMENT PROJECT. 19 1. There is appropriated from the general fund of the state 20 to the state university of Iowa for the fiscal year beginning 21 July 1, 2026, and ending June 30, 2027, the following amount, 22 or so much thereof as is necessary, to be used for the purposes 23 designated: 24 For purposes of supporting a groundwater planning and 25 resource assessment project to be administered by the Iowa 26 geological survey of the state created pursuant to section 27 456.1 : 28 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 122,000 29 2. The moneys appropriated in subsection 1 shall be used 30 by the Iowa geological survey to map and assess the condition 31 of this state’s aquifers. The Iowa geological survey may 32 measure the volume of groundwater that is available for various 33 uses, the current and predicted allocations of groundwater to 34 support those uses, the recharge rate for the aquifers, and 35 -13- HF 2771.4523.S (1) 91 mb 13/ 27
the development of models for budgeting this state’s water 1 resources. 2 3. Notwithstanding section 8.33 , moneys appropriated in 3 subsection 1 that remain unencumbered or unobligated at the 4 close of the fiscal year shall not revert but shall remain 5 available for expenditure for the purposes designated in 6 subsection 1. 7 Sec. 17. GROUNDWATER PROTECTION FUND —— IOWA GEOLOGICAL 8 SURVEY. 9 1. There is appropriated from interest and earnings on 10 moneys in the groundwater protection fund created in section 11 455E.11 and accounts therein, as described in section 455E.11, 12 subsection 1, paragraph “a”, to the state university of Iowa 13 for the fiscal year beginning July 1, 2026, and ending June 30, 14 2027, the following amount, or so much thereof as is necessary, 15 to be used for the purposes designated: 16 To support a groundwater planning and resource assessment 17 project to be administered by the Iowa geological survey of the 18 state: 19 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 78,000 20 2. Moneys appropriated in subsection 1 shall be used by 21 the Iowa geological survey to map and assess the condition 22 of this state’s aquifers. The Iowa geological survey may 23 measure the volume of groundwater that is available for various 24 uses, the current and predicted allocations of groundwater to 25 support these uses, the recharge rate for the aquifers, and 26 the development of models for budgeting this state’s water 27 resources. 28 3. Notwithstanding subsection 1, the amount appropriated 29 in this section shall not exceed the total amount of interest 30 and earnings on moneys in the groundwater protection fund and 31 accounts therein accrued during the fiscal year beginning July 32 1, 2026. 33 DIVISION V 34 ENVIRONMENT FIRST FUND —— GENERAL APPROPRIATIONS 35 -14- HF 2771.4523.S (1) 91 mb 14/ 27
Sec. 18. DEPARTMENT OF AGRICULTURE AND LAND 1 STEWARDSHIP. There is appropriated from the environment first 2 fund created in section 8.57A to the department of agriculture 3 and land stewardship for the fiscal year beginning July 1, 4 2026, and ending June 30, 2027, the following amounts, or so 5 much thereof as is necessary, to be used for the purposes 6 designated: 7 1. CONSERVATION RESERVE ENHANCEMENT PROGRAM (CREP) 8 a. For the conservation reserve enhancement program to 9 restore and construct wetlands for the purposes of intercepting 10 tile line runoff, reducing nutrient loss, improving water 11 quality, and enhancing agricultural production practices: 12 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 1,000,000 13 b. Not more than 10 percent of the moneys appropriated 14 in paragraph “a” may be used for costs of administration and 15 implementation of soil and water conservation practices. 16 c. Notwithstanding section 8.57A, subsection 3, or any 17 other provision of law to the contrary, the department may use 18 moneys appropriated in this subsection, in combination with 19 other appropriate environment first fund appropriations, for 20 cost sharing to match United States department of agriculture, 21 natural resources conservation service, wetlands reserve 22 enhancement program (WREP) funding available to Iowa. 23 2. WATERSHED PROTECTION 24 a. For continuation of a program that provides 25 multiobjective resource protections for flood control, water 26 quality, erosion control, and natural resource conservation: 27 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 900,000 28 b. Not more than 10 percent of the moneys appropriated 29 in paragraph “a” may be used for costs of administration and 30 implementation of soil and water conservation practices. 31 3. CONSERVATION BUFFER STRIP PROGRAM 32 a. To encourage and assist farmers to establish and maintain 33 conservation buffer strip practices and to work with them to 34 enhance their revegetation efforts to improve water quality and 35 -15- HF 2771.4523.S (1) 91 mb 15/ 27
habitat: 1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 900,000 2 b. Not more than 10 percent of the moneys appropriated 3 in paragraph “a” may be used for costs of administration and 4 implementation of soil and water conservation practices. 5 4. SOIL AND WATER CONSERVATION 6 a. For use by the department in providing for soil and water 7 conservation: 8 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 8,325,000 9 b. (1) Of the amount appropriated in paragraph “a”, for 10 transfer to the hungry canyons account of the loess hills 11 development and conservation fund created in section 161D.2 : 12 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 140,000 13 (2) Not more than 10 percent of the moneys transferred in 14 subparagraph (1) may be used for administrative costs. 15 c. Of the remaining amount appropriated in paragraph “a”, 16 for use by the department in providing for soil and water 17 conservation administration, the conservation of soil and 18 water resources, or the support of soil and water conservation 19 districts: 20 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 8,185,000 21 d. Of the amount appropriated in paragraph “c” that the 22 department allocates to a soil and water conservation district, 23 the first $15,000 may be expended by the district for the 24 purpose of providing financial incentives under section 161A.73 25 to establish management practices for the control of soil 26 erosion on land that is row-cropped, including but not limited 27 to nontill planting, ridge-till planting, and contouring 28 strip-cropping. Of any remaining amount of that appropriation 29 allocated by the department to a district, 30 percent may be 30 expended by the district for that same purpose. 31 e. Not more than 5 percent of the moneys appropriated in 32 paragraph “c” may be allocated for cost sharing to address 33 complaints filed under section 161A.47 . 34 f. Of the moneys appropriated in paragraph “c”, 5 percent 35 -16- HF 2771.4523.S (1) 91 mb 16/ 27
shall be allocated for financial incentives to establish 1 practices to protect watersheds above publicly owned lakes of 2 the state from soil erosion and sediment as provided in section 3 161A.73 . 4 g. The department’s division of soil conservation and 5 water quality may allocate moneys appropriated in paragraph 6 “c” to conduct research and demonstration projects to promote 7 conservation tillage and nonpoint source pollution control 8 practices. 9 h. The allocation of moneys as financial incentives as 10 provided in section 161A.73 may be used in combination with 11 moneys allocated by the department of natural resources. 12 i. Not more than 15 percent of the moneys appropriated 13 in paragraph “c” may be used for costs of administration and 14 implementation of soil and water conservation practices. 15 5. SOIL AND WATER CONSERVATION —— ADMINISTRATION 16 a. For use by the department for costs of administration and 17 implementation of soil and water conservation practices: 18 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 3,800,000 19 b. Of the moneys appropriated in paragraph “a”, $150,000 20 is allocated to support field staff providing technical 21 assistance. 22 Sec. 19. DEPARTMENT OF NATURAL RESOURCES. There is 23 appropriated from the environment first fund created in section 24 8.57A to the department of natural resources for the fiscal 25 year beginning July 1, 2026, and ending June 30, 2027, the 26 following amounts, or so much thereof as is necessary, to be 27 used for the purposes designated: 28 1. STATE PARK MAINTENANCE AND OPERATIONS 29 For regular maintenance and operations of state parks and 30 staff time associated with these activities: 31 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 6,235,000 32 2. GEOGRAPHIC INFORMATION SYSTEM (GIS) 33 To provide local watershed managers with geographic 34 information system data for their use in developing, 35 -17- HF 2771.4523.S (1) 91 mb 17/ 27
monitoring, and displaying results of their watershed work: 1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 195,000 2 3. WATER QUALITY MONITORING 3 For continuing the establishment and operation of water 4 quality monitoring stations: 5 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 2,955,000 6 4. PUBLIC WATER SUPPLY SYSTEM ACCOUNT 7 For deposit in the public water supply system account of the 8 water quality protection fund created in section 455B.183A : 9 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 500,000 10 5. REGULATION OF ANIMAL FEEDING OPERATIONS 11 For the regulation of animal feeding operations, including 12 as provided for in chapters 459 , 459A , and 459B : 13 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 1,320,000 14 6. FLOODPLAIN MANAGEMENT AND DAM SAFETY 15 For supporting floodplain management and dam safety: 16 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 375,000 17 7. AMBIENT AIR QUALITY 18 For the abatement, control, and prevention of ambient 19 air pollution in this state, including measures as necessary 20 to assure attainment and maintenance of ambient air quality 21 standards from particulate matter: 22 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 425,000 23 Sec. 20. STATE UNIVERSITY OF IOWA —— IOWA GEOLOGICAL 24 SURVEY. There is appropriated from the environment first 25 fund created in section 8.57A to the state university of Iowa 26 for the fiscal year beginning July 1, 2026, and ending June 27 30, 2027, the following amounts, or so much thereof as is 28 necessary, to be used for the purposes designated: 29 1. IOWA GEOLOGICAL SURVEY OPERATIONS 30 For purposes of supporting the operations of the Iowa 31 geological survey of the state, including but not limited 32 to providing analysis; data maintenance, collection, and 33 compilation; investigative programs; and information for water 34 supply development and protection: 35 -18- HF 2771.4523.S (1) 91 mb 18/ 27
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 200,000 1 2. WATER RESOURCE MANAGEMENT 2 For purposes of supporting the Iowa geological survey in 3 measuring, assessing, and evaluating the quantity of water 4 sources in this state and assisting the department of natural 5 resources in regulating water quantity as provided in chapter 6 455B, subchapter III, part 4 , pursuant to sections 455B.262B 7 and 456.14 : 8 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 495,000 9 Sec. 21. REVERSION. 10 1. a. Except as provided in paragraph “b”, and 11 notwithstanding section 8.33 , moneys appropriated for the 12 fiscal year beginning July 1, 2026, in this division of this 13 Act that remain unencumbered or unobligated at the close of 14 the fiscal year shall not revert but shall remain available 15 for expenditure for the purposes designated until the close of 16 the succeeding fiscal year, or until the project for which the 17 appropriation was made is completed, whichever is earlier. 18 b. Notwithstanding section 8.33 , moneys appropriated for 19 the fiscal year beginning July 1, 2026, in this division of 20 this Act to the department of agriculture and land stewardship 21 to provide financial assistance for the establishment of 22 permanent soil and water conservation practices that remain 23 unencumbered or unobligated at the close of the fiscal year 24 shall not revert but shall remain available for expenditure 25 for the purposes designated until the close of the fiscal year 26 beginning July 1, 2029. 27 2. Subsection 1 does not apply to moneys transferred 28 pursuant to this division of this Act to the loess hills 29 development and conservation fund created in section 161D.2 , 30 which shall not revert as provided in that section. 31 DIVISION VI 32 ENVIRONMENT FIRST FUND —— SPECIAL APPROPRIATIONS 33 Sec. 22. WATER QUALITY INITIATIVE —— DEPARTMENT OF 34 AGRICULTURE AND LAND STEWARDSHIP. 35 -19- HF 2771.4523.S (1) 91 mb 19/ 27
1. There is appropriated from the environment first fund 1 created in section 8.57A to the department of agriculture 2 and land stewardship for the fiscal year beginning July 1, 3 2026, and ending June 30, 2027, the following amount, or so 4 much thereof as is necessary, to be used for the purposes 5 designated: 6 For deposit in the water quality initiative fund created in 7 section 466B.45 , for purposes of supporting the water quality 8 initiative administered by the division of soil conservation 9 and water quality as provided in section 466B.42 , including 10 salaries, support, maintenance, and miscellaneous purposes: 11 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 2,375,000 12 2. a. The moneys appropriated in subsection 1 shall be 13 used to support projects in subwatersheds as designated by the 14 division that are part of high-priority watersheds identified 15 by the water resources coordinating council established 16 pursuant to section 466B.3 . 17 b. The moneys appropriated in subsection 1 shall be used to 18 support projects in watersheds generally, including regional 19 watersheds, as designated by the division and high-priority 20 watersheds identified by the water resources coordinating 21 council established pursuant to section 466B.3 . 22 3. In supporting projects in subwatersheds and watersheds 23 as provided in subsection 2, all of the following apply: 24 a. The demonstration projects shall utilize water quality 25 practices as described in the Iowa nutrient reduction strategy 26 as defined in section 455B.171 . 27 b. The division shall implement demonstration projects as 28 provided in paragraph “a” by providing for participation by 29 persons who hold a legal interest in agricultural land used in 30 farming. To every extent practical, the division shall provide 31 for collaborative participation by such persons who hold a 32 legal interest in agricultural land located within the same 33 subwatershed. 34 c. The division shall implement a demonstration project on 35 -20- HF 2771.4523.S (1) 91 mb 20/ 27
a cost-share basis as determined by the division. However, 1 except for edge-of-field practices, the state’s share of the 2 amount shall not exceed 50 percent of the estimated cost of 3 establishing the practice as determined by the division or 4 50 percent of the actual cost of establishing the practice, 5 whichever is less. 6 d. The demonstration projects shall be used to educate other 7 persons about the feasibility and value of establishing similar 8 water quality practices. The division shall promote field day 9 events for purposes of allowing interested persons to establish 10 water quality practices on their agricultural land. 11 e. The division shall conduct water quality evaluations 12 within supported subwatersheds. Within a reasonable period 13 after accumulating information from such evaluations, the 14 division shall create an aggregated database of water quality 15 practices. Any information identifying a person holding a 16 legal interest in agricultural land or specific agricultural 17 land shall be a confidential record under section 22.7 . 18 4. The moneys appropriated in subsection 1 shall be used 19 to support education and outreach in a manner that encourages 20 persons who hold a legal interest in agricultural land used for 21 farming to implement water quality practices, including the 22 establishment of such practices in watersheds generally, and 23 not limited to subwatersheds or high-priority watersheds. 24 5. The moneys appropriated in subsection 1 may be used 25 to contract with persons to coordinate the implementation of 26 efforts provided in this section. 27 6. The moneys appropriated in subsection 1 may be used by 28 the department to support urban soil and water conservation 29 efforts, which may include but are not limited to management 30 practices related to bioretention, landscaping, the use of 31 permeable or pervious pavement, and soil quality restoration. 32 The moneys shall be allocated on a cost-share basis as provided 33 in chapter 161A . 34 7. Notwithstanding any other provision of law to the 35 -21- HF 2771.4523.S (1) 91 mb 21/ 27
contrary, the department may use moneys appropriated in 1 subsection 1 to carry out the provisions of this section on a 2 cost-share basis in combination with other moneys available to 3 the department from a state or federal source. 4 8. Not more than 10 percent of the moneys appropriated in 5 this section may be used to pay for the costs of administering 6 and implementing the water quality initiative by the 7 department’s division of soil conservation and water quality as 8 provided in section 466B.42 and this section. 9 DIVISION VII 10 RESOURCES ENHANCEMENT AND PROTECTION —— OPEN SPACES 11 Sec. 23. REAP —— IN LIEU OF GENERAL FUND APPROPRIATION. In 12 lieu of the standing appropriation in section 455A.18 , there is 13 appropriated from the environment first fund created in section 14 8.57A to the Iowa resources enhancement and protection fund 15 for the fiscal year beginning July 1, 2026, and ending June 16 30, 2027, the following amount, to be allocated as provided in 17 section 455A.19 : 18 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 12,000,000 19 Sec. 24. REAP —— OPEN SPACES ACCOUNT —— STATE PARK 20 MAINTENANCE, OPERATIONS, AND FACILITY REFURBISHMENT. 21 Notwithstanding section 455A.19, subsection 1, paragraph “a”, 22 subparagraph (1), of the moneys allocated to the open spaces 23 account of the Iowa resources enhancement and protection fund, 24 up to $1,000,000 may be used by the department of natural 25 resources for state park maintenance, development, operations, 26 and facility refurbishment for the fiscal year beginning July 27 1, 2026, and ending June 30, 2027. 28 DIVISION VIII 29 ANIMAL DISEASE PREPAREDNESS AND RESPONSE 30 Sec. 25. IOWA ANIMAL DISEASE PREVENTION FUND —— DEPARTMENT 31 OF AGRICULTURE AND LAND STEWARDSHIP. 32 1. There is appropriated from the Iowa animal disease 33 prevention fund created in section 165.18 to the department of 34 agriculture and land stewardship for the fiscal year beginning 35 -22- HF 2771.4523.S (1) 91 mb 22/ 27
July 1, 2026, and ending June 30, 2027, the following amounts, 1 or so much thereof as is necessary, to be used for the purposes 2 designated: 3 a. For purposes of purchasing and maintaining equipment 4 to further the implementation of the foreign animal disease 5 preparedness and response strategy developed under section 6 163.3C : 7 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 150,000 8 b. For purposes of assisting in the development of vaccines 9 against foreign animal diseases by a company based in Iowa that 10 develops livestock and other animal vaccines: 11 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 100,000 12 c. For deposit in the foreign animal disease preparedness 13 and response fund created in section 163.3B : 14 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 200,000 15 d. For purposes of upgrading information technology 16 resources used by the department: 17 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 160,000 18 2. Notwithstanding section 8.33 , moneys appropriated in 19 this section that remain unencumbered or unobligated at the 20 close of the fiscal year shall not revert but shall remain 21 available for expenditure for the purposes designated until the 22 close of the succeeding fiscal year. 23 DIVISION IX 24 WATER QUALITY FUNDING 25 Sec. 26. REBUILD IOWA INFRASTRUCTURE FUND —— SPECIAL 26 APPROPRIATIONS. There is appropriated from the rebuild Iowa 27 infrastructure fund created in section 8.57 to the Iowa finance 28 authority for the fiscal year beginning July 1, 2026, and 29 ending June 30, 2027, the following amounts, or so much thereof 30 as is necessary, to be used for the purposes designated: 31 1. a. For deposit in the water quality financial assistance 32 fund created in section 16.134A for the purposes of supporting 33 the wastewater and drinking water treatment financial 34 assistance program created in section 16.134: 35 -23- HF 2771.4523.S (1) 91 mb 23/ 27
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 8,000,000 1 b. The moneys appropriated in paragraph “a” shall be used to 2 provide financial assistance, including grants, for projects 3 designed to improve water quality by addressing point and 4 nonpoint sources, with a higher prioritization provided to 5 collaborative effort. 6 2. For deposit in the rural Iowa infrastructure bank program 7 fund created in section 16.240, as enacted in this division of 8 this Act: 9 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 10,000,000 10 Sec. 27. Section 16.134, subsection 4, paragraph i, Code 11 2026, is amended to read as follows: 12 i. An applicant shall not receive a grant that exceeds five 13 hundred thousand one million dollars. 14 Sec. 28. Section 16.134A, subsection 3, Code 2026, is 15 amended to read as follows: 16 3. For Except for moneys deposited in the fund for 17 a specified purpose, for each fiscal year in the period 18 beginning July 1, 2018 2026 , and ending June 30, 2039, there 19 is appropriated the following percentages of amounts from the 20 balance of the fund for all of the following purposes: 21 a. Forty percent to the Iowa finance authority to support 22 the wastewater and drinking water treatment financial 23 assistance program created in section 16.134 Five hundred 24 thousand dollars to the department of natural resources for 25 the purposes of water quality monitoring, including, at the 26 department’s discretion, continuous monitoring . 27 b. Forty-five percent to the Iowa finance authority to be 28 credited to the water quality financing program fund created 29 pursuant to section 16.153 . The following percentages of moneys 30 remaining in the fund for the following purposes: 31 (1) Sixty-five percent to the Iowa finance authority to 32 support the wastewater and drinking water treatment financial 33 assistance program created in section 16.134. 34 c. (2) Fifteen percent to the division of soil conservation 35 -24- HF 2771.4523.S (1) 91 mb 24/ 27
and water quality of the department of agriculture and land 1 stewardship to support the water quality urban infrastructure 2 program created in section 466B.44 . 3 (3) Twenty percent to the division of soil conservation 4 and water quality of the department of agriculture and land 5 stewardship for deposit in the water quality initiative fund 6 created in section 466B.45 to provide technical assistance 7 and support conservation practices, including but not limited 8 to buffers, cover crops, edge-of-field structures, grazing 9 systems, and working lands, in counties located in the 10 following United States geological survey hydrologic unit code 11 8 watersheds: 12 (a) Boone. 13 (b) East fork Des Moines. 14 (c) Middle Des Moines. 15 (d) North Raccoon. 16 (e) South Raccoon. 17 (f) Upper Des Moines. 18 Sec. 29. Section 16.152, Code 2026, is amended by adding the 19 following new subsections: 20 NEW SUBSECTION . 5. The authority shall not initiate any 21 new loans under this part after June 30, 2026. Any loan or 22 interest payments received by the authority on or after July 23 1, 2026, shall be deposited in the water quality financial 24 assistance fund created pursuant to section 16.134A for the 25 purposes of supporting the wastewater and drinking water 26 treatment financial assistance program created in section 27 16.134. 28 NEW SUBSECTION . 6. For the fiscal year beginning July 1, 29 2026, and ending June 30, 2027, the authority shall allocate 30 a sum not to exceed twenty-five million dollars from any 31 unencumbered or unobligated moneys in the water quality 32 financing program fund to a regional water authority, with 33 membership consisting of public utilities, as defined in 34 section 476.1, rural water districts organized and existing 35 -25- HF 2771.4523.S (1) 91 mb 25/ 27
under chapter 357A, and other governmental entities, which 1 serves a population of at least six hundred thousand and 2 is headquartered in the most populous county in the state 3 based on the 2020 federal decennial census, for the purpose 4 of constructing and installing additional nutrient removal 5 technology. These moneys shall remain available for 6 expenditure until June 30, 2029. 7 NEW SUBSECTION . 7. Any unencumbered or unobligated moneys 8 in the water quality financing program fund created pursuant to 9 section 16.153 remaining after July 31, 2026, are transferred 10 to the water quality financial assistance fund created pursuant 11 to section 16.134A, to be used for purposes specified in 12 section 16.134A, subsection 3, paragraph “b” , subparagraph 13 (3). An amount equal to the amount of moneys obligated by the 14 authority prior to July 1, 2026, shall remain in the water 15 quality financing program fund. 16 NEW SUBSECTION . 8. This part is repealed on the date that 17 all loans made pursuant to this part are paid in full. The 18 authority shall notify the Iowa Code editor of this occurrence. 19 Sec. 30. NEW SECTION . 16.240 Rural Iowa infrastructure bank 20 revolving loan program —— fund. 21 1. As used in this section, “small or medium sized 22 community” means a city with a population of eleven thousand or 23 less. 24 2. The authority shall establish and administer a rural 25 Iowa infrastructure bank revolving loan program. The purpose 26 of the program is to provide loans to small or medium sized 27 communities to upgrade water or wastewater infrastructure. 28 3. a. A small or medium size community shall apply to the 29 authority for a loan under the program in a manner approved by 30 the authority. 31 b. Loan agreements may contain terms and conditions the 32 authority deems advisable, but the interest rate on any loan 33 shall not exceed one percent. 34 4. A rural Iowa infrastructure bank program fund is created 35 -26- HF 2771.4523.S (1) 91 mb 26/ 27
in the state treasury under the control of the authority and 1 consisting of moneys appropriated by the general assembly and 2 any other moneys available to and obtained or accepted by the 3 authority for placement in the fund. Moneys in the fund are 4 appropriated to the authority for the purpose of providing 5 loans to small or medium sized communities under the program 6 established in this section. Repayments of moneys loaned and 7 recaptures of loans shall be deposited in the fund. Moneys 8 in the fund are not subject to section 8.33. Notwithstanding 9 section 12C.7, interest or earnings on moneys in the fund shall 10 be credited to the fund. 11 5. The authority may adopt rules pursuant to chapter 17A to 12 administer this section. 13 Sec. 31. CODE EDITOR DIRECTIVE. The Code editor is directed 14 to designate section 16.240, as enacted by this division of 15 this Act, as chapter 16, subchapter X, part 12, entitled “Rural 16 Iowa Infrastructure Bank Revolving Loan Program”. > 17 -27- HF 2771.4523.S (1) 91 mb 27/ 27