H.F. 661 Section 1. Section 455A.4, subsection 1, unnumbered 1 paragraph 1, Code 2011, is amended to read as follows: 2 Except as otherwise provided by law and subject to 3 rules adopted by the natural resource commission and the 4 environmental protection commission , the director shall: 5 Sec. 2. Section 455A.4, subsection 1, paragraph i, Code 6 2011, is amended to read as follows: 7 i. Adopt rules in accordance with chapter 17A as necessary 8 or desirable for the organization or reorganization of the 9 department to provide for the administration of chapter 321G, 10 321I, 455B, 455C, 456A, 456B, 457A, 459, 459A, 459B, 461A, 11 462A, 462B, 464A, 465C, 481A, 481B, 483A, 484A, or 484B. 12 Rulemaking authority held by the natural resource commission 13 or the environmental protection commission is vested in the 14 director upon the effective date of this Act. Rules adopted by 15 the natural resource commission or the environmental protection 16 commission prior to the effective date of this Act, shall 17 remain effective until modified or rescinded by action of the 18 director in accordance with the provisions of chapter 17A . The 19 director shall ensure that all policies and guidelines of the 20 department for the administration of the chapters listed in 21 this paragraph shall be adopted by rule. 22 Sec. 3. Section 455A.5, subsection 6, paragraph a, Code 23 2011, is amended to read as follows: 24 a. Establish Recommend policy and adopt rules, pursuant 25 to chapter 17A , necessary to provide for the effective 26 administration of chapter 321G , 321I , 456A , 456B , 457A , 461A , 27 462A , 462B , 464A , 465C , 481A , 481B , 483A , 484A , or 484B . 28 Sec. 4. Section 455A.5, subsection 6, paragraph e, Code 29 2011, is amended by striking the paragraph. 30 Sec. 5. NEW SECTION . 455A.5A Schedule of fees —— rules. 31 1. The director, in consultation with the natural resource 32 commission, shall adopt, by rule, a schedule of fees for 33 permits issued by the natural resource commission, including 34 conditional permits, and a schedule of fees for administration 35 -1- LSB 2017HZ (2) 84 tm/rj 1/ 7

H.F. 661 of the permits. The fees shall be collected by the department 1 and used to offset costs incurred in administrating a program 2 for which the issuance of the permit is made or under which 3 enforcement is carried out. 4 2. In determining the fee schedule, the director shall 5 consider all of the following: 6 a. The reasonable costs associated with reviewing 7 applications, issuing permits, and monitoring compliance with 8 the terms of issued permits. 9 b. The relative benefits to the applicant and to the public 10 of a permit review, permit issuance, and monitoring compliance 11 with the terms of the permit. 12 c. The typical costs associated with a type of project or 13 activity for which a permit is required. 14 d. The impact of the considerations included in paragraphs 15 “a” through “c” on the private sector. 16 3. However, a fee shall not exceed the actual costs incurred 17 by the department. 18 Sec. 6. Section 455A.6, subsection 6, paragraph a, Code 19 2011, is amended to read as follows: 20 a. Establish Recommend policy for the department and adopt 21 rules, pursuant to chapter 17A , necessary to provide for the 22 effective administration of chapter 455B , 455C , or 459 . 23 Sec. 7. Section 455B.103, subsection 1, Code 2011, is 24 amended by striking the subsection and inserting in lieu 25 thereof the following: 26 1. Adopt, modify, or repeal rules pursuant to chapter 17A. 27 The director shall have only the authority and discretion that 28 is expressly delegated or granted by this chapter, chapter 29 455C, chapter 459, chapter 459A, and chapter 459B and shall not 30 exercise such authority and discretion except to the extent 31 necessary to implement this chapter, chapter 455C, chapter 459, 32 chapter 459A, and chapter 459B. Any rulemaking authority held 33 by the commission is vested in the director upon the effective 34 date of this Act. Rules adopted by the commission prior to 35 -2- LSB 2017HZ (2) 84 tm/rj 2/ 7

H.F. 661 the effective date of this Act shall remain in effect until 1 modified or rescinded by action of the director in accordance 2 with the provisions of chapter 17A. 3 a. The director shall include in the preamble of a rule a 4 statement referencing the authority delegated to the director 5 pursuant to which the rule is adopted. The preamble for the 6 rule shall indicate when the director is implementing a federal 7 rule by reference and include a financial impact statement 8 detailing the general impact of the rule upon the regulated 9 parties. 10 b. When proposing or adopting rules to implement a specific 11 federal environmental program, the director shall not impose 12 requirements more restrictive than the requirements of 13 the federal program being implemented. The director shall 14 not propose a rule related to a federal regulation until 15 the federal regulation has received final approval by the 16 applicable federal agency. 17 c. When proposing or adopting rules, the director shall 18 include departmental policy relating to the disclosure of 19 information concerning a violation or alleged violation 20 of the rules, standards, permits, or orders issued by the 21 department and the confidentiality of information obtained by 22 the department in the administration and enforcement of this 23 chapter, chapter 455C, chapter 459, chapter 459A, and chapter 24 459B. 25 Sec. 8. Section 455B.103, subsection 2, Code 2011, is 26 amended by striking the subsection. 27 Sec. 9. Section 455B.105, subsections 3 and 11, Code 2011, 28 are amended by striking the subsections. 29 Sec. 10. NEW SECTION . 455B.106 Schedule of fees —— rules. 30 1. The director, in consultation with the environmental 31 protection commission, shall adopt, by rule, procedures and 32 forms necessary to implement the provisions of this chapter and 33 chapters 459, 459A, and 459B relating to permits, conditional 34 permits, and general permits. 35 -3- LSB 2017HZ (2) 84 tm/rj 3/ 7

H.F. 661 2. The director, in consultation with the environmental 1 protection commission, may also adopt, by rule, a schedule 2 of fees for permit and conditional permit applications 3 and a schedule of fees which may be periodically assessed 4 for administration of permits and conditional permits. In 5 determining the fee schedules, the director shall consider: 6 a. The state’s reasonable cost of reviewing applications, 7 issuing permits and conditional permits, and checking 8 compliance with the terms of the permits. 9 b. The relative benefits to the applicant and to the 10 public of permit and conditional permit review, issuance, and 11 monitoring compliance. It is the intention of the general 12 assembly that permit fees shall not cover any costs connected 13 with correcting violation of the terms of any permit and shall 14 not impose unreasonable costs on any municipality. 15 c. The typical costs of the particular types of projects 16 or activities for which permits or conditional permits are 17 required, provided that in no circumstances shall fees be in 18 excess of the actual costs to the department. 19 d. The impact of the considerations included in paragraphs 20 “a” through “c” on the private sector. 21 3. Except as otherwise provided in this chapter and chapter 22 459, fees collected by the department under this section shall 23 be remitted to the treasurer of state and credited to the 24 general fund of the state. 25 4. The director shall adopt rules for applications or 26 permits related to the national pollutant discharge elimination 27 system (NPDES) coverage as described in section 455B.197, 28 including fees, only to the extent that the rules are 29 consistent with that section. 30 Sec. 11. Section 455B.183A, subsection 2, Code 2011, is 31 amended to read as follows: 32 2. The commission director shall adopt fees as required 33 pursuant to section 455B.105 455B.106 for permits required for 34 public water supply systems as provided in sections 455B.174 35 -4- LSB 2017HZ (2) 84 tm/rj 4/ 7

H.F. 661 and 455B.183 . Fees paid pursuant to this section shall not be 1 subject to the sales or services tax. The fees shall be for 2 each of the following: 3 a. The construction, installation, or modification of a 4 public water supply system. The amount of the fees may be 5 based on the type of system being constructed, installed, or 6 modified. 7 b. The operation of a public water supply system, including 8 any part of the system. The commission director shall adopt 9 a fee schedule which shall be based on the total number of 10 persons served by public water supply systems in this state. 11 However, a public water supply system shall be assessed a fee 12 of at least twenty-five dollars. A public water supply system 13 not owned or operated by a community and serving a transient 14 population shall be assessed a fee of twenty-five dollars. The 15 commission director shall calculate all fees in the schedule to 16 produce total revenues equaling three hundred fifty thousand 17 dollars for each fiscal year, commencing with the fiscal year 18 beginning July 1, 1995, and ending June 30, 1996. For each 19 fiscal year, the fees shall be deposited into the public water 20 supply system account. By May 1 of each year, the department 21 shall estimate the total revenue expected to be collected from 22 the overpayment of fees, which are all fees in excess of the 23 amount of the total revenues which are expected to be collected 24 under the current fee schedule, and the total revenue expected 25 to be collected from the payment of fees during the next fiscal 26 year. The commission director shall adjust the fees if the 27 estimate exceeds the amount of revenue required to be deposited 28 in the account pursuant to this paragraph. 29 Sec. 12. Section 455B.310, subsection 5, Code 2011, is 30 amended to read as follows: 31 5. Solid waste disposal facilities with special provisions 32 which limit the site to disposal of construction and demolition 33 waste, landscape waste, coal combustion waste, cement kiln 34 dust, foundry sand, and solid waste materials approved by the 35 -5- LSB 2017HZ (2) 84 tm/rj 5/ 7

H.F. 661 department for lining or capping, or for construction berms, 1 dikes, or roads in a sanitary disposal project or sanitary 2 landfill are exempt from the tonnage fees imposed under this 3 section . However, solid waste disposal facilities under 4 this subsection are subject to the fees imposed pursuant to 5 section 455B.105, subsection 11 , paragraph “a” 455B.106 . 6 Notwithstanding the provisions of section 455B.105, subsection 7 11 , paragraph “b” 455B.106 , the fees collected pursuant to this 8 subsection shall be deposited in the solid waste account as 9 established in section 455E.11, subsection 2 , paragraph “a” , 10 to be used by the department for the regulation of these solid 11 waste disposal facilities. 12 Sec. 13. Section 459B.104, subsections 1 and 2, Code 2011, 13 are amended to read as follows: 14 1. The environmental protection commission director of the 15 department shall establish by rule adopted pursuant to chapter 16 17A , requirements relating to the construction, including 17 expansion, or operation of dry bedded confinement feeding 18 operations, including related dry bedded manure confinement 19 feeding operation buildings and stockpiles. 20 2. Any provision referring generally to compliance with 21 the requirements of this chapter as applied to dry bedded 22 confinement feeding operations also includes compliance with 23 requirements in rules adopted by the environmental protection 24 commission director of the department pursuant to this section , 25 orders issued by the department as authorized under this 26 chapter , and the terms and conditions applicable to manure 27 management plans required under this chapter . 28 Sec. 14. INTENT. It is the intent of the general assembly 29 that upon the effective date of this Act, the director of 30 the department of natural resources shall have the powers 31 and duties and shall assume the sole responsibility for 32 proposing and adopting rules as necessary for the effective 33 administration of the duties of the department of natural 34 resources. All references in statute or rules to the 35 -6- LSB 2017HZ (2) 84 tm/rj 6/ 7

H.F. 661 rulemaking authority of the natural resource commission or 1 the environmental protection commission of the department of 2 natural resources shall upon the effective date of this Act be 3 construed to refer only to the director of the department of 4 natural resources. 5 Sec. 15. APPLICABILITY. This Act applies to all rules 6 noticed or adopted after the effective date of this Act. If a 7 rule with an effective date prior to the effective date of this 8 Act is amended after the effective date of this Act, then the 9 provisions of this Act are applicable to the entire rule being 10 amended and not only to the precise portion of the rules that 11 is being amended. For purposes of applying the provisions of 12 this Act, the effective date of the amendment to a rule shall 13 be the new effective date of the rule as a whole. 14 Sec. 16. EFFECTIVE UPON ENACTMENT. This Act, being deemed 15 of immediate importance, takes effect upon enactment. 16 EXPLANATION 17 This bill relates to rulemaking authority of the department 18 of natural resources. 19 Currently, the environmental protection commission and the 20 natural resources commission both have rulemaking authority 21 for Code chapters administered by the department of natural 22 resources. The bill transfers the rulemaking authority for 23 both commissions to the director of the department of natural 24 resources, in consultation with each of the commissions. The 25 bill makes conforming amendments. The bill prohibits the 26 director from proposing a rule related to a federal regulation 27 until the regulation has received final approval by the 28 applicable federal agency. 29 The bill takes effect upon enactment and applies to rules 30 noticed or adopted after the date of enactment. 31 -7- LSB 2017HZ (2) 84 tm/rj 7/ 7