Senate Study Bill 1130





                                  SENATE FILE       
                                  BY  (PROPOSED COMMITTEE ON NATURAL
                                       RESOURCES AND ENVIRONMENT BILL
                                       BY CO=CHAIRPERSON BLACK)


    Passed Senate, Date               Passed House,  Date             
    Vote:  Ayes        Nays           Vote:  Ayes        Nays         
                 Approved                            

                                      A BILL FOR

  1 An Act relating to water quality, by eliminating certain public
  2    water supply system permit fee requirements, creating a water
  3    quality needs and infrastructure program and fund, providing
  4    for an advisory committee, and making appropriations.
  5 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
  6 TLSB 1798SC 81
  7 tm/pj/5

PAG LIN



  1  1    Section 1.  Section 455B.183A, subsection 1, Code 2005, is
  1  2 amended to read as follows:
  1  3    1.  A water quality protection fund is created in the state
  1  4 treasury under the control of the department.  The fund
  1  5 consists of moneys appropriated to the fund by the general
  1  6 assembly, moneys deposited into the fund from fees described
  1  7 in subsection 2, moneys deposited into the fund from fees
  1  8 collected pursuant to sections 455B.187 and 455B.190A, and
  1  9 other moneys available to and obtained or accepted by the
  1 10 department from the United States government or private
  1 11 sources for placement in the fund.  The fund is divided into
  1 12 three accounts, including the administration account, the
  1 13 public water supply system account, and the private water
  1 14 supply system account.  Moneys in the administration account
  1 15 are appropriated to the department for purposes of carrying
  1 16 out the provisions of this division, which relate to the
  1 17 administration, regulation, and enforcement of the federal
  1 18 Safe Drinking Water Act.  Moneys in the public water supply
  1 19 system account are appropriated to the department to support
  1 20 the program to assist supply systems, as provided in section
  1 21 455B.183B.  Moneys in the private water supply system account
  1 22 are appropriated to the department for the purpose of
  1 23 supporting the programs established to protect private
  1 24 drinking water supplies as provided in sections 455B.187,
  1 25 455B.188, 455B.190, and 455B.190A.
  1 26    Sec. 2.  Section 455B.183A, subsection 2, Code 2005, is
  1 27 amended by striking the subsection.
  1 28    Sec. 3.  NEW SECTION.  455B.183D  WATER QUALITY NEEDS AND
  1 29 INFRASTRUCTURE PROGRAM == FUND.
  1 30    1.  The department shall establish and administer a water
  1 31 quality needs and infrastructure program.  The program shall
  1 32 provide financial assistance for the administration,
  1 33 regulation, and enforcement of the federal Safe Drinking Water
  1 34 Act, source water protection grants, and infrastructure loans
  1 35 to water systems.
  2  1    2.  a.  A water quality needs and infrastructure fund is
  2  2 created in the state treasury under the control of the
  2  3 department.  Notwithstanding section 423.2, subsection 10,
  2  4 revenues received from the taxation of water pursuant to
  2  5 section 423.2, subsection 2, shall be deposited in the water
  2  6 quality needs and infrastructure fund as provided in this
  2  7 section.  For the fiscal year beginning July 1, 2005, and
  2  8 ending June 30, 2006, twenty percent of the revenues collected
  2  9 shall be deposited in the fund.  For the fiscal year beginning
  2 10 July 1, 2006, and ending June 30, 2007, forty percent of the
  2 11 revenues collected shall be deposited in the fund.  For the
  2 12 fiscal year beginning July 1, 2007, and ending June 30, 2008,
  2 13 sixty percent of the revenues collected shall be deposited in
  2 14 the fund.  For the fiscal year beginning July 1, 2008, and
  2 15 ending June 30, 2009, eighty percent of the revenues collected
  2 16 shall be deposited in the fund.  For the fiscal year beginning
  2 17 July 1, 2009, and each fiscal year thereafter, one hundred
  2 18 percent of the revenues collected shall be deposited in the
  2 19 fund.
  2 20    b.  Notwithstanding section 8.33, moneys in the water
  2 21 quality needs and infrastructure fund at the end of each
  2 22 fiscal year shall not revert to any other fund but shall
  2 23 remain in the fund for expenditure in subsequent fiscal years.
  2 24 Notwithstanding section 12C.7, interest and earnings on moneys
  2 25 in the fund shall be credited to the fund.
  2 26    c.  Within the water quality needs and infrastructure fund,
  2 27 the department shall create the following accounts:
  2 28    (1)  A water quality protection account.
  2 29    (2)  A drinking water infrastructure revolving loan
  2 30 account.
  2 31    (3)  A source water protection account.
  2 32    d.  Moneys deposited in the fund in a fiscal year pursuant
  2 33 to paragraph "a" shall be allocated as follows:
  2 34    (1)  The first two million dollars shall be deposited in
  2 35 the water quality protection account and is appropriated to
  3  1 the department to be used for purposes of enforcing provisions
  3  2 of the federal Safe Drinking Water Act as delegated to the
  3  3 state.
  3  4    (2)  Any moneys in excess of two million dollars shall be
  3  5 divided and allocated as follows:
  3  6    (a)  Fifty percent shall be deposited in the drinking water
  3  7 infrastructure revolving loan account and is appropriated to
  3  8 the department to be used for purposes of providing low=
  3  9 interest loans to public water systems and community water
  3 10 systems which can comply with or have the potential to comply
  3 11 with the financial, technical, and managerial criteria of a
  3 12 viability assessment and remain in compliance with
  3 13 requirements of the federal Safe Drinking Water Act.
  3 14    (b)  Fifty percent shall be deposited in the source water
  3 15 protection account and is appropriated to the department to be
  3 16 used for the purpose of building capacity for wellhead and
  3 17 watershed protection initiatives.
  3 18    Sec. 4.  ADVISORY COMMITTEE.  The department of natural
  3 19 resources shall form an advisory committee for purposes of
  3 20 assisting in the development of rules to administer this Act.
  3 21 The advisory committee shall assist in the development of
  3 22 qualification criteria for the approval of programs and
  3 23 projects receiving financial assistance under this Act.  The
  3 24 advisory committee shall consist of representatives from the
  3 25 following entities:
  3 26    1.  The department of natural resources.
  3 27    2.  The department of agriculture and land stewardship.
  3 28    3.  The college of agriculture at Iowa state university of
  3 29 science and technology.
  3 30    4.  The college of public health at the university of Iowa.
  3 31    5.  The Iowa association of municipal utilities.
  3 32    6.  The Iowa association of water agencies.
  3 33    7.  The Iowa section of the American water works
  3 34 association.
  3 35    8.  The Iowa rural water association.
  4  1    9.  The Iowa water pollution control association.
  4  2    10.  The Iowa league of cities.
  4  3    11.  The natural resources conservation service of the
  4  4 United States department of agriculture.
  4  5    12.  The Iowa environmental council.
  4  6    13.  Iowa agstate group.
  4  7                           EXPLANATION
  4  8    This bill creates a water quality needs and infrastructure
  4  9 program and fund.
  4 10    The bill eliminates a provision requiring the environmental
  4 11 protection commission to adopt certain fees for certain
  4 12 permits required for public water supply systems.
  4 13    The bill requires the department of natural resources to
  4 14 establish and administer a water quality needs and
  4 15 infrastructure program.  The bill provides that the program
  4 16 shall provide financial assistance for the administration,
  4 17 regulation, and enforcement of the federal Safe Drinking Water
  4 18 Act, source water protection grants, and infrastructure loans
  4 19 to water systems.
  4 20    The bill creates a water quality needs and infrastructure
  4 21 fund in the state treasury under the control of the
  4 22 department.  The bill provides that a certain percentage of
  4 23 the revenues received from the taxation of water shall be
  4 24 deposited in the water quality needs and infrastructure fund.
  4 25 The percentage of revenues to be deposited increases by 20
  4 26 percent for each fiscal year beginning July 1, 2005, and
  4 27 ending June 30, 2010.
  4 28    The bill creates a water quality protection account, a
  4 29 drinking water infrastructure revolving loan account, and a
  4 30 source water protection account within the fund.  The bill
  4 31 appropriates moneys to the department by allocating the first
  4 32 $2 million to be deposited in the water quality protection
  4 33 account to be used for purposes of enforcing provisions of the
  4 34 federal Safe Drinking Water Act as delegated to the state.
  4 35 Any moneys in excess of $2 million are appropriated by
  5  1 allocating 50 percent to be deposited in the drinking water
  5  2 infrastructure revolving loan account to be used for purposes
  5  3 of providing low=interest loans to public water systems and
  5  4 community water systems which can comply with or have the
  5  5 potential to comply with the financial, technical, and
  5  6 managerial criteria of a viability assessment and remain in
  5  7 compliance with requirements of the federal Safe Drinking
  5  8 Water Act, and 50 percent to be deposited in the source water
  5  9 protection account to be used for the purpose of building
  5 10 capacity for wellhead and watershed protection initiatives.
  5 11    The bill provides that the department shall form an
  5 12 advisory committee for purposes of assisting in the
  5 13 development of administrative rules and in the development of
  5 14 qualification criteria for the approval of programs and
  5 15 projects receiving financial assistance under the bill.
  5 16 LSB 1798SC 81
  5 17 tm:nh/pj/5