Senate
File
482
-
Introduced
SENATE
FILE
482
BY
COMMITTEE
ON
NATURAL
RESOURCES
AND
ENVIRONMENT
(SUCCESSOR
TO
SSB
1034)
A
BILL
FOR
An
Act
relating
to
water
quality
by
amending
the
wastewater
1
treatment
financial
assistance
program,
making
2
appropriations
from
the
rebuild
Iowa
infrastructure
fund,
3
creating
a
water
quality
infrastructure
fund,
establishing
4
a
water
quality
financing
program,
providing
for
cost-share
5
programs
for
infrastructure
on
agricultural
and
urban
land
6
under
the
water
quality
initiative,
creating
a
water
service
7
excise
tax
and
a
related
sales
tax
exemption,
and
making
8
appropriations
and
other
changes
properly
related
to
water
9
quality.
10
BE
IT
ENACTED
BY
THE
GENERAL
ASSEMBLY
OF
THE
STATE
OF
IOWA:
11
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482
Section
1.
Section
8.57,
subsection
5,
Code
2017,
is
amended
1
by
adding
the
following
new
paragraph:
2
NEW
PARAGRAPH
.
0h.
(1)
Notwithstanding
paragraph
“c”
of
3
this
subsection,
there
is
appropriated
from
the
rebuild
Iowa
4
infrastructure
fund
to
the
water
quality
infrastructure
fund
5
created
in
section
8.57B
the
following
amounts:
6
(a)
For
the
fiscal
year
beginning
July
1,
2017,
and
ending
7
June
30,
2018,
four
million
three
hundred
thousand
dollars.
8
(b)
For
the
fiscal
year
beginning
July
1,
2018,
and
ending
9
June
30,
2019,
four
million
three
hundred
thousand
dollars.
10
(c)
For
the
fiscal
year
beginning
July
1,
2019,
and
ending
11
June
30,
2020,
eleven
million
five
hundred
thousand
dollars.
12
(d)
For
the
fiscal
year
beginning
July
1,
2020,
and
ending
13
June
30,
2021,
sixteen
million
five
hundred
thousand
dollars.
14
(e)
For
the
fiscal
year
beginning
July
1,
2021,
and
ending
15
June
30,
2022,
sixteen
million
five
hundred
thousand
dollars.
16
(f)
For
the
fiscal
year
beginning
July
1,
2022,
and
ending
17
June
30,
2023,
twenty-two
million
dollars.
18
(g)
For
the
fiscal
year
beginning
July
1,
2023,
and
ending
19
June
30,
2024,
twenty-two
million
dollars.
20
(h)
For
the
fiscal
year
beginning
July
1,
2024,
and
ending
21
June
30,
2025,
twenty-two
million
dollars.
22
(i)
For
the
fiscal
year
beginning
July
1,
2025,
and
ending
23
June
30,
2026,
twenty-two
million
dollars.
24
(j)
For
the
fiscal
year
beginning
July
1,
2026,
and
ending
25
June
30,
2027,
twenty-two
million
dollars.
26
(k)
For
the
fiscal
year
beginning
July
1,
2027,
and
ending
27
June
30,
2028,
twenty-two
million
dollars.
28
(l)
For
the
fiscal
year
beginning
July
1,
2028,
and
ending
29
June
30,
2029,
twenty-two
million
dollars.
30
(m)
For
the
fiscal
year
beginning
July
1,
2029,
and
ending
31
June
30,
2030,
twenty-two
million
dollars.
32
(2)
This
paragraph
“0h”
is
repealed
on
January
1,
2031.
33
Sec.
2.
NEW
SECTION
.
8.57B
Water
quality
infrastructure
34
fund
——
creation
——
appropriations.
35
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1.
A
water
quality
infrastructure
fund
is
created
within
1
the
division
of
soil
conservation
and
water
quality
of
the
2
department
of
agriculture
and
land
stewardship.
The
fund
3
shall
consist
of
moneys
appropriated
from
the
rebuild
Iowa
4
infrastructure
fund
pursuant
to
section
8.57,
subsection
5,
5
paragraph
“0h”
.
6
2.
The
fund
shall
be
separate
from
the
general
fund
of
the
7
state
and
the
balance
in
the
fund
shall
not
be
considered
part
8
of
the
balance
of
the
general
fund
of
the
state.
However,
the
9
fund
shall
be
considered
a
special
account
for
the
purposes
10
of
section
8.53,
relating
to
generally
accepted
accounting
11
principles.
12
3.
Moneys
in
the
fund
are
appropriated
to
the
division
13
of
soil
conservation
and
water
quality
of
the
department
of
14
agriculture
and
land
stewardship
for
the
exclusive
purpose
of
15
supporting
water
quality
agriculture
infrastructure
programs
16
created
in
section
466B.43.
17
4.
Notwithstanding
section
8.33,
moneys
in
the
fund
18
that
remain
unencumbered
or
unobligated
at
the
close
of
a
19
fiscal
year
shall
not
revert
but
shall
remain
available
for
20
expenditure
for
the
purposes
designated.
Notwithstanding
21
section
12C.7,
subsection
2,
interest
or
earnings
on
moneys
in
22
the
fund
shall
be
credited
to
the
fund.
23
5.
This
section
is
repealed
on
the
date
that
all
moneys
24
transferred
to
the
water
quality
infrastructure
fund
from
25
the
rebuild
Iowa
infrastructure
fund
pursuant
to
section
26
8.57,
subsection
5,
paragraph
“0h”
,
including
any
interest
27
or
earnings
on
such
moneys
credited
to
the
water
quality
28
infrastructure
fund,
are
expended
by
the
division
of
soil
29
conservation
and
water
quality
of
the
department
of
agriculture
30
and
land
stewardship,
and
the
balance
of
the
water
quality
31
infrastructure
fund
is
zero.
The
director
of
the
division
32
of
soil
conservation
and
water
quality
of
the
department
of
33
agriculture
and
land
stewardship
shall
notify
the
Code
editor
34
of
this
occurrence.
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482
Sec.
3.
Section
16.134,
Code
2017,
is
amended
to
read
as
1
follows:
2
16.134
Wastewater
and
drinking
water
treatment
financial
3
assistance
program.
4
1.
The
Iowa
finance
authority
shall
establish
and
5
administer
a
wastewater
and
drinking
water
treatment
financial
6
assistance
program.
The
purpose
of
the
program
shall
be
to
7
provide
financial
assistance
to
enhance
water
quality.
The
8
program
shall
be
administered
in
accordance
with
rules
adopted
9
by
the
authority
pursuant
to
chapter
17A
.
For
purposes
of
10
this
section
,
“program”
means
the
wastewater
and
drinking
water
11
treatment
financial
assistance
program
and
“committee”
means
the
12
water
quality
financing
review
committee
created
in
subsection
13
9
.
14
2.
A
wastewater
and
drinking
water
treatment
financial
15
assistance
fund
is
created
and
shall
consist
of
appropriations
16
made
to
the
fund
and
transfers
of
interest,
earnings,
and
17
moneys
from
other
funds
as
provided
by
law.
Moneys
transferred
18
to
the
fund
pursuant
to
section
16.134A
are
appropriated
to
the
19
authority
for
purposes
of
the
program.
Moneys
in
the
fund
are
20
not
subject
to
section
8.33
.
Notwithstanding
section
12C.7,
21
subsection
2
,
interest
or
earnings
on
moneys
in
the
fund
shall
22
be
credited
to
the
fund.
23
3.
Financial
assistance
under
the
program
shall
be
used
24
to
install
or
upgrade
wastewater
treatment
facilities
and
25
systems
and
drinking
water
treatment
facilities
and
systems,
26
including
source
water
protection
projects
,
and
for
engineering
27
or
technical
assistance
for
facility
planning
and
design.
28
4.
The
authority
committee
shall
distribute
approve
29
financial
assistance
in
from
the
fund
in
accordance
with
the
30
following:
31
a.
The
goal
of
the
program
shall
be
to
base
awards
on
the
32
impact
of
the
grant
combined
with
other
sources
of
financing
to
33
ensure
that
sewer
rates
do
not
exceed
one
and
one-half
percent
34
of
a
community’s
median
household
income.
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482
b.
a.
Communities
shall
be
eligible
for
financial
1
assistance
by
qualifying
as
Priority
shall
be
given
for
2
projects
in
which
a
disadvantaged
community
and
is
seeking
3
financial
assistance
for
the
installation
or
upgrade
of
4
wastewater
treatment
facilities
due
to
regulatory
activity
5
by
the
department
of
natural
resources
and
drinking
water
6
treatment
facilities
.
For
purposes
of
this
section
,
the
term
7
“disadvantaged
community”
means
the
same
as
defined
by
the
8
department.
9
c.
b.
Priority
shall
be
given
to
projects
in
which
the
10
meeting
criteria
established
in
section
455B.199B
in
which
the
11
applicant
seeks
financial
assistance
is
to
be
used
to
obtain
12
with
financing
under
the
water
pollution
control
works
and
13
drinking
water
facilities
financing
program
pursuant
to
section
14
16.131
or
other
federal
,
or
state
,
or
private
financing.
15
d.
c.
Priority
shall
also
be
given
to
projects
whose
16
completion
will
provide
significant
improvement
to
water
17
quality
in
the
relevant
watershed.
18
e.
d.
Priority
shall
also
be
given
to
communities
that
19
employ
an
alternative
wastewater
treatment
technology
pursuant
20
to
section
455B.199C
.
21
f.
e.
Priority
shall
be
also
be
given
to
those
communities
22
where
sewer
or
water
rates
are
the
highest
as
a
percentage
of
23
that
community’s
median
household
income.
24
f.
Priority
shall
also
be
given
to
communities
that
employ
25
technology
to
address
the
latest
version
of
the
“Iowa
Nutrient
26
Reduction
Strategy”
initially
presented
in
November
2012
by
the
27
department
of
agriculture
and
land
stewardship,
the
department
28
of
natural
resources,
and
Iowa
state
university
of
science
and
29
technology.
30
g.
Financial
assistance
in
the
form
of
grants
shall
be
31
issued
on
an
annual
basis.
32
h.
An
applicant
shall
not
receive
a
grant
that
exceeds
five
33
hundred
thousand
dollars.
34
4A.
A
utility
management
organization
formed
under
chapter
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482
28E
or
operated
by
a
rural
water
system
organized
under
chapter
1
357A
or
chapter
504
shall
be
considered
eligible
for
financial
2
assistance
under
the
program.
3
5.
The
authority
in
cooperation
with
the
department
of
4
natural
resources
shall
share
provide
information
and
resources
5
to
the
committee
when
the
committee
is
determining
the
6
qualifications
of
a
community
for
financial
assistance
from
the
7
fund.
8
6.
The
authority
shall
enter
into
agreements
with
financial
9
assistance
recipients
and
distribute
moneys
under
the
program
10
pursuant
to
financial
assistance
determinations
made
by
the
11
committee.
The
authority
may
use
an
amount
of
not
more
than
12
four
one
percent
of
any
moneys
appropriated
for
deposit
in
the
13
fund
for
administration
purposes.
14
7.
By
October
1
of
each
year,
the
authority
shall
submit
15
a
report
to
the
governor
and
the
general
assembly
itemizing
16
expenditures
under
the
program
during
the
previous
fiscal
year.
17
8.
a.
Beginning
September
1,
2027,
and
every
ten
years
18
thereafter,
a
program
review
committee
is
established
for
19
purposes
of
reviewing
the
wastewater
and
drinking
water
20
treatment
financial
assistance
program.
By
December
1
of
the
21
same
year,
the
program
review
committee
shall
file
a
report
22
with
the
governor
and
the
general
assembly
that
reviews
the
23
effectiveness
of
the
program
during
the
prior
ten
fiscal
years.
24
b.
The
program
review
committee
shall
consist
of
the
25
following
members:
26
(1)
The
governor
or
the
governor’s
designee.
27
(2)
The
secretary
of
agriculture
or
the
secretary’s
28
designee.
29
(3)
The
executive
director
of
the
authority
or
the
executive
30
director’s
designee.
31
(4)
The
director
of
the
department
of
natural
resources
or
32
the
director’s
designee.
33
(5)
Four
members
of
the
general
assembly,
with
two
from
the
34
senate
and
two
from
the
house
of
representatives
and
not
more
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482
than
one
member
from
each
chamber
being
from
the
same
political
1
party.
The
two
senators
shall
be
designated
one
member
each
2
by
the
president
of
the
senate,
after
consultation
with
the
3
majority
leader
of
the
senate,
and
by
the
minority
leader
of
4
the
senate.
The
two
representatives
shall
be
designated
one
5
member
each
by
the
speaker
of
the
house
of
representatives,
6
after
consultation
with
the
majority
leader
of
the
house
of
7
representatives,
and
by
the
minority
leader
of
the
house
of
8
representatives.
9
c.
Staffing
services
shall
be
provided
by
the
authority.
10
9.
a.
A
water
quality
financing
review
committee
is
11
created
consisting
of
the
secretary
of
agriculture
or
the
12
secretary’s
designee,
the
executive
director
of
the
authority
13
or
the
executive
director’s
designee,
and
the
director
of
the
14
department
of
natural
resources
or
the
director’s
designee.
15
b.
The
committee
shall
review
and
approve
or
deny
16
applications
for
financial
assistance
under
the
wastewater
17
and
drinking
water
treatment
financial
assistance
program
18
established
in
this
section.
19
Sec.
4.
NEW
SECTION
.
16.134A
Water
quality
financial
20
assistance
fund.
21
1.
A
water
quality
financial
assistance
fund
is
created
in
22
the
state
treasury
as
a
revolving
fund.
23
2.
The
fund
shall
consist
of
all
of
the
following:
24
a.
(1)
Moneys
transferred
to
the
fund
pursuant
to
section
25
423G.6.
26
(2)
This
paragraph
“a”
is
repealed
on
January
1,
2030.
27
b.
Appropriations
made
to
the
fund
and
transfers
of
28
interest,
earnings,
and
moneys
from
other
funds
as
provided
by
29
law.
30
3.
For
each
fiscal
year
in
the
fiscal
period
beginning
31
July
1,
2017,
and
ending
June
30,
2029,
there
is
appropriated
32
the
following
percentages
of
the
balance
of
the
fund
for
the
33
following
purposes:
34
a.
Forty
percent
to
the
Iowa
finance
authority
to
support
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the
wastewater
and
drinking
water
treatment
financial
1
assistance
program
created
in
section
16.134.
2
b.
Forty-five
percent
to
the
Iowa
finance
authority
to
be
3
credited
to
the
water
quality
financing
program
fund
created
4
pursuant
to
section
16.144.
5
c.
Fifteen
percent
to
the
division
of
soil
conservation
6
and
water
quality
of
the
department
of
agriculture
and
land
7
stewardship
to
support
the
water
quality
urban
infrastructure
8
program
created
in
section
466B.44.
9
4.
Moneys
in
the
fund
are
not
subject
to
section
8.33.
10
Notwithstanding
section
12C.7,
subsection
2,
interest
or
11
earnings
on
moneys
in
the
fund
shall
be
credited
to
the
fund.
12
Sec.
5.
NEW
SECTION
.
16.142
Definitions.
13
As
used
in
this
part,
unless
the
context
otherwise
requires:
14
1.
“Cost”
means
all
costs,
charges,
expenses,
or
other
15
indebtedness
incurred
by
a
loan
recipient
and
determined
by
16
the
authority
as
reasonable
and
necessary
for
carrying
out
17
all
works
and
undertakings
necessary
or
incidental
to
the
18
accomplishment
of
any
project.
19
2.
“Eligible
entity”
means
a
municipality
or
a
landowner,
20
as
determined
by
the
authority,
a
public
utility
as
defined
21
in
section
476.1,
or
a
rural
water
district
or
rural
water
22
association
as
defined
in
section
357A.1.
23
3.
“Loan
recipient”
means
an
eligible
entity
that
has
24
received
a
loan
under
the
program.
25
4.
“Municipality”
means
a
governmental
body
such
as
a
state
26
agency
or
a
political
subdivision
of
the
state.
Municipality
27
includes
but
is
not
limited
to
a
city,
city
utility,
county,
28
soil
and
water
conservation
district,
sanitary
district,
a
29
subdistrict
of
any
of
the
foregoing
districts,
a
state
agency,
30
or
other
governmental
body
or
corporation
empowered
to
provide
31
sewage
collection
and
treatment
services
or
drinking
water,
or
32
any
entity
jointly
exercising
governmental
powers
pursuant
to
33
chapter
28E
or
28F,
or
any
other
combination
of
two
or
more
34
governmental
bodies
or
corporations
acting
jointly
under
the
35
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laws
of
this
state
in
connection
with
a
project.
1
5.
“Program”
means
the
water
quality
financing
program
2
created
in
this
part.
3
6.
“Project”
means
any
combination
of
improvements,
4
structures,
developments,
tasks,
actions,
constructions,
5
modifications,
operations,
or
practices
designed
to
improve
6
water
quality
that
are
proposed
by
an
eligible
entity
and
7
approved
by
the
authority.
“Project”
includes
but
is
not
8
limited
to
any
of
the
following:
9
a.
A
project
meeting
the
requirements
of
part
2
of
this
10
subchapter.
11
b.
A
project,
operation,
or
practice
undertaken
or
carried
12
out
to
address
watershed
protection,
flood
prevention,
or
water
13
quality
improvement.
14
c.
A
project
meeting
the
requirements
of
a
sponsor
project
15
under
section
455B.199.
16
Sec.
6.
NEW
SECTION
.
16.143
Water
quality
financing
17
program.
18
1.
The
authority,
in
cooperation
with
the
department
of
19
natural
resources
and
the
department
of
agriculture
and
land
20
stewardship,
shall
establish
and
administer
a
water
quality
21
financing
program.
The
purpose
of
the
program
shall
be
to
22
provide
financial
assistance
to
enhance
the
quality
of
surface
23
water
and
groundwater,
particularly
by
providing
financial
24
assistance
for
projects
designed
to
improve
water
quality
25
by
addressing
point
and
nonpoint
sources,
with
a
higher
26
prioritization
provided
to
collaborative
efforts.
27
2.
The
authority
shall
determine
the
interest
rate
28
and
repayment
terms
for
loans
made
under
the
program,
in
29
cooperation
with
the
department
of
natural
resources
and
30
the
department
of
agriculture
and
land
stewardship,
and
the
31
authority
shall
enter
into
loan
agreements
with
eligible
32
entities
in
compliance
with
and
subject
to
the
terms
and
33
conditions
of
the
program
as
described
in
this
part.
34
3.
The
authority
may
charge
loan
recipients
fees
and
assess
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482
costs
against
such
recipients
necessary
for
the
continued
1
operation
of
the
program.
Such
fees
and
costs
shall
not
exceed
2
the
costs
directly
associated
with
the
administration
of
the
3
program.
Fees
and
costs
collected
pursuant
to
this
subsection
4
shall
be
deposited
in
the
appropriate
fund
or
account
created
5
in
section
16.144.
6
4.
The
program
shall
be
administered
by
the
authority
in
7
accordance
with
rules
adopted
by
the
authority
pursuant
to
8
chapter
17A.
9
Sec.
7.
NEW
SECTION
.
16.144
Water
quality
financing
program
10
fund
——
appropriation
——
other
funds.
11
1.
a.
A
water
quality
financing
program
fund
is
created
12
and
shall
consist
of
appropriations
made
to
the
fund,
moneys
13
credited
to
the
fund
pursuant
to
section
16.134A,
and
transfers
14
of
interest,
earnings,
and
moneys
from
other
funds
as
provided
15
by
law.
The
fund
shall
be
administered
by
the
authority
as
16
a
revolving
fund.
Moneys
in
the
fund
are
appropriated
to
17
the
authority
for
purposes
of
the
program.
Notwithstanding
18
section
8.33,
moneys
in
the
fund
that
remain
unencumbered
or
19
unobligated
at
the
close
of
a
fiscal
year
shall
not
revert
20
but
shall
remain
available
for
expenditure
for
the
purposes
21
designated.
Notwithstanding
section
12C.7,
subsection
2,
22
interest
or
earnings
on
moneys
in
the
fund
shall
be
credited
23
to
the
fund.
24
b.
The
authority
shall
use
the
moneys
in
the
fund
to
provide
25
financial
assistance
to
eligible
entities
under
the
program.
26
The
authority
may
provide
financial
assistance
in
the
form
27
deemed
most
convenient
for
the
efficient
financing
of
projects,
28
including
loans,
forgivable
loans,
or
grants.
The
authority
29
shall
administer
the
fund
and
the
program
in
such
a
manner
30
as
to
provide
a
permanent
source
of
water
quality
project
31
financial
assistance
to
eligible
entities.
32
c.
The
authority
may
annually
use
an
amount
of
not
more
33
than
one
percent
of
the
moneys
in
the
fund
for
administrative
34
purposes.
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2.
a.
The
authority
may
establish
and
maintain
other
1
funds
and
accounts
determined
to
be
necessary
to
carry
out
the
2
purposes
of
the
program
and
shall
provide
for
the
funding,
3
administration,
investment,
restrictions,
and
disposition
of
4
the
funds
and
accounts.
5
b.
Moneys
appropriated
to
and
used
by
the
authority
for
6
purposes
of
paying
the
costs
and
expenses
associated
with
7
the
administration
of
the
program
shall
be
administered
as
8
determined
by
the
authority.
9
c.
All
moneys
transferred
to
the
authority
for
purposes
of
10
the
program
shall
be
deposited
and
held
in
a
fund
or
account
11
established
and
maintained
pursuant
to
this
section.
12
3.
The
funds
or
accounts
held
by
the
authority,
or
a
trustee
13
acting
on
behalf
of
the
authority
pursuant
to
a
trust
agreement
14
related
to
the
program,
shall
not
be
considered
part
of
the
15
general
fund
of
the
state,
are
not
subject
to
appropriation
for
16
any
other
purpose
by
the
general
assembly,
and
in
determining
17
a
general
fund
balance
shall
not
be
included
in
the
general
18
fund
of
the
state,
but
shall
remain
in
the
funds
and
accounts
19
maintained
by
the
authority
or
trustee
pursuant
to
a
trust
20
agreement.
Funds
and
accounts
held
by
the
authority,
or
a
21
trustee
acting
on
behalf
of
the
authority
pursuant
to
a
trust
22
agreement
related
to
the
program,
are
separate
dedicated
funds
23
and
accounts
under
the
administration
and
control
of
the
24
authority
and
subject
to
section
16.31.
25
4.
By
October
1,
2018,
and
by
October
1
of
each
year
26
thereafter,
the
authority
shall
submit
a
report
to
the
governor
27
and
the
general
assembly
itemizing
expenditures
from
the
fund
28
during
the
previous
fiscal
year.
29
Sec.
8.
NEW
SECTION
.
16.145
Eligible
entities
——
agreements
30
required.
31
1.
An
eligible
entity
may
apply
to
the
authority
for
32
financial
assistance
under
the
program
by
submitting
a
plan
33
that
meets
the
following
requirements:
34
a.
The
plan
includes
one
or
more
projects
that
improve
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482
water
quality
in
the
local
area
or
watershed.
Projects
shall
1
use
practices
identified
in
the
latest
version
of
the
document
2
entitled
“Iowa
Nutrient
Reduction
Strategy”
initially
presented
3
in
November
2012
by
the
department
of
agriculture
and
land
4
stewardship,
the
department
of
natural
resources,
and
Iowa
5
state
university
of
science
and
technology.
A
drainage
or
6
levee
district
established
under
chapter
468
shall
utilize
the
7
installation
of
edge-of-field
infrastructure
as
described
in
8
section
466B.43.
9
b.
The
plan
describes
in
detail
the
manner
in
which
the
10
projects
will
be
financed
and
undertaken,
including,
as
11
applicable,
the
sources
of
revenue
directed
to
financing
the
12
improvements
as
well
as
the
eligible
entities
that
will
be
13
receiving
the
revenues
and
how
such
revenues
will
be
spent
on
14
the
projects.
15
2.
The
authority
shall
review
and
approve
or
deny
16
applications
for
financial
assistance.
The
provision
of
17
financial
assistance
under
the
program
shall
take
into
account,
18
as
applicable,
the
number
of
municipalities,
landowners,
public
19
utilities,
rural
water
districts,
or
rural
water
associations
20
comprising
an
eligible
entity
and
the
eligible
entity’s
21
financing
capacity.
The
authority
shall
score
applications
22
for
financial
assistance
according
to
rules
adopted
pursuant
23
to
this
part.
The
authority
shall
only
provide
financial
24
assistance
to
eligible
entities
that
have
sufficient
financing
25
capacity
and
that
submit
an
appropriate
plan
designed
to
26
improve
water
quality.
27
3.
An
approved
eligible
entity
shall
enter
into
an
agreement
28
with
the
authority
for
the
provision
of
financial
assistance.
29
The
agreement
shall
include
standard
terms
for
the
receipt
30
of
program
moneys
and
any
other
terms
the
authority
deems
31
necessary
or
convenient
for
the
efficient
administration
of
the
32
program.
33
Sec.
9.
Section
423.3,
Code
2017,
is
amended
by
adding
the
34
following
new
subsection:
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482
NEW
SUBSECTION
.
103.
a.
The
sales
price
from
the
sale
or
1
furnishing
by
a
water
utility
of
a
water
service
in
the
state
2
to
consumers
or
users.
3
b.
For
purposes
of
this
subsection:
4
(1)
“Water
service”
means
the
delivery
of
water
by
piped
5
distribution
system.
6
(2)
“Water
utility”
means
a
public
utility
as
defined
in
7
section
476.1
that
furnishes
water
by
piped
distribution
system
8
to
the
public
for
compensation.
9
Sec.
10.
NEW
SECTION
.
423G.1
Short
title.
10
This
chapter
may
be
cited
as
the
“Water
Service
Tax
Act”
.
11
Sec.
11.
NEW
SECTION
.
423G.2
Definitions.
12
1.
All
words
and
phrases
used
in
this
chapter
and
defined
in
13
section
423.1
have
the
same
meaning
given
them
by
section
423.1
14
for
purposes
of
this
chapter.
15
2.
As
used
in
this
chapter,
“water
service”
and
“water
16
utility”
mean
the
same
as
defined
in
section
423.3,
subsection
17
103.
18
Sec.
12.
NEW
SECTION
.
423G.3
Water
service
tax.
19
An
excise
tax
at
the
rate
of
six
percent
is
imposed
on
the
20
sales
price
from
the
sale
or
furnishing
by
a
water
utility
of
a
21
water
service
in
the
state
to
consumers
or
users.
22
Sec.
13.
NEW
SECTION
.
423G.4
Exemptions.
23
The
sales
price
from
transactions
exempt
from
state
sales
24
tax
under
section
423.3,
except
section
423.3,
subsection
103,
25
is
also
exempt
from
the
tax
imposed
by
this
chapter.
26
Sec.
14.
NEW
SECTION
.
423G.5
Administration
by
director.
27
1.
The
director
of
revenue
shall
administer
the
water
28
service
tax
as
nearly
as
possible
in
conjunction
with
the
29
administration
of
the
state
sales
and
use
tax
law,
except
that
30
portion
of
the
law
that
implements
the
streamlined
sales
and
31
use
tax
agreement.
The
director
shall
provide
appropriate
32
forms,
or
provide
on
the
regular
state
tax
forms,
for
reporting
33
water
service
tax
liability.
34
2.
The
director
may
require
all
persons
who
are
engaged
35
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482
in
the
business
of
deriving
any
sales
price
or
purchase
1
price
subject
to
tax
under
this
chapter
to
register
with
2
the
department.
The
director
may
also
require
a
tax
permit
3
applicable
only
to
this
chapter
for
any
retailer
not
4
collecting,
or
any
user
not
paying,
taxes
under
chapter
423.
5
3.
Section
422.25,
subsection
4,
sections
422.30,
422.67,
6
and
422.68,
section
422.69,
subsection
1,
sections
422.70,
7
422.71,
422.72,
422.74,
and
422.75,
section
423.14,
subsection
8
1,
and
sections
423.23,
423.24,
423.25,
423.31
through
9
423.35,
423.37
through
423.42,
and
423.47,
consistent
with
the
10
provisions
of
this
chapter,
shall
apply
with
respect
to
the
tax
11
authorized
under
this
chapter,
in
the
same
manner
and
with
the
12
same
effect
as
if
the
excise
taxes
on
the
sale
or
furnishing
of
13
a
water
service
were
retail
sales
taxes
within
the
meaning
of
14
those
statutes.
Notwithstanding
this
subsection,
the
director
15
shall
provide
for
quarterly
filing
of
returns
and
for
other
16
than
quarterly
filing
of
returns
both
as
prescribed
in
section
17
423.31.
All
taxes
collected
under
this
chapter
by
a
retailer
18
or
any
user
are
deemed
to
be
held
in
trust
for
the
state
of
19
Iowa.
20
Sec.
15.
NEW
SECTION
.
423G.6
Deposit
of
revenues.
21
1.
All
moneys
received
and
all
refunds
shall
be
deposited
in
22
or
withdrawn
from
the
general
fund
of
the
state.
23
2.
Subsequent
to
the
deposit
in
the
general
fund
of
the
24
state,
the
department
shall
transfer
the
following
amounts
to
25
the
water
quality
financial
assistance
fund
created
in
section
26
16.134A:
27
a.
For
revenues
collected
on
or
after
July
1,
2017,
but
28
before
August
1,
2018,
one-sixth
of
the
revenues.
29
b.
For
revenues
collected
on
or
after
August
1,
2018,
but
30
before
August
1,
2019,
one-third
of
the
revenues.
31
c.
For
revenues
collected
on
or
after
August
1,
2019,
but
32
before
August
1,
2020,
one-half
of
the
revenues.
33
d.
For
revenues
collected
on
or
after
August
1,
2020,
but
34
before
August
1,
2021,
two-thirds
of
the
revenues.
35
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482
e.
For
revenues
collected
on
or
after
August
1,
2021,
but
1
before
August
1,
2022,
five-sixths
of
the
revenues.
2
f.
For
revenues
collected
on
or
after
August
1,
2022,
one
3
hundred
percent
of
the
revenues.
4
Sec.
16.
NEW
SECTION
.
423G.7
Future
repeal.
5
This
chapter
is
repealed
upon
the
occurrence
of
one
of
the
6
following,
whichever
is
earlier:
7
1.
The
enactment
date
that
the
tax
rate
for
the
sales
8
tax
imposed
upon
the
retail
sales
price
of
tangible
personal
9
property
and
the
furnishing
of
enumerated
services
sold
in
this
10
state
in
effect
on
July
1,
2016,
is
increased.
11
2.
July
1,
2029.
12
Sec.
17.
Section
455B.171,
Code
2017,
is
amended
by
adding
13
the
following
new
subsections:
14
NEW
SUBSECTION
.
10A.
“Iowa
nutrient
reduction
strategy”
15
means
a
water
quality
initiative
developed
and
updated
by
the
16
department
of
agriculture
and
land
stewardship,
the
department
17
of
natural
resources,
and
the
college
of
agriculture
and
life
18
sciences
at
Iowa
state
university
of
science
and
technology
in
19
order
to
assess
and
reduce
nutrients
in
this
state’s
watersheds
20
that
utilize
a
pragmatic,
strategic,
and
coordinated
approach
21
with
the
goal
of
accomplishing
reductions
over
time.
22
NEW
SUBSECTION
.
15A.
“Nutrient”
means
total
nitrogen
and
23
total
phosphorus.
24
Sec.
18.
Section
455B.171,
subsection
19,
Code
2017,
is
25
amended
to
read
as
follows:
26
19.
“Point
source”
means
any
discernible,
confined,
and
27
discrete
conveyance,
including
but
not
limited
to
any
pipe,
28
ditch,
channel,
tunnel,
conduit,
well,
discrete
fissure,
29
container,
rolling
stock,
concentrated
animal
feeding
30
operation,
or
vessel
or
other
floating
craft,
from
which
31
pollutants
are
or
may
be
discharged.
“Point
source”
does
not
32
include
agricultural
storm
water
discharge
and
return
flows
33
from
irrigated
agriculture.
34
Sec.
19.
Section
455B.177,
Code
2017,
is
amended
by
adding
35
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the
following
new
subsection:
1
NEW
SUBSECTION
.
3.
The
general
assembly
further
finds
2
and
declares
that
it
is
in
the
interest
of
the
people
of
Iowa
3
to
assess
and
reduce
nutrients
in
surface
waters
over
time
by
4
implementing
the
Iowa
nutrient
reduction
strategy.
To
evaluate
5
the
progress
achieved
over
time
toward
the
goals
of
the
Iowa
6
nutrient
reduction
strategy
and
the
United
States
environmental
7
protection
agency
gulf
hypoxia
action
plan,
the
baseline
8
condition
shall
be
calculated
for
the
time
period
from
1980
to
9
1996.
10
Sec.
20.
Section
466B.3,
subsection
3,
paragraph
c,
Code
11
2017,
is
amended
to
read
as
follows:
12
c.
Whether
the
funds,
programs,
and
regulatory
efforts
13
coordinated
by
the
council
eventually
result
in
a
long-term
14
improvement
to
the
quality
of
surface
water
in
Iowa.
To
15
evaluate
the
progress
achieved
over
time
toward
the
goals
of
16
the
Iowa
nutrient
reduction
strategy,
as
defined
in
section
17
455B.171,
and
the
United
States
environmental
protection
agency
18
gulf
hypoxia
action
plan,
the
baseline
condition
shall
be
19
calculated
for
the
time
period
from
1980
to
1996.
20
Sec.
21.
Section
466B.42,
Code
2017,
is
amended
to
read
as
21
follows:
22
466B.42
Water
quality
initiative.
23
The
division
shall
establish
a
water
quality
initiative
24
in
order
to
assess
and
reduce
nutrients
in
this
state’s
25
watersheds,
including
subwatersheds
,
and
regional
watersheds
,
26
and
for
implementing
its
responsibilities
under
the
Iowa
27
nutrient
reduction
strategy
as
defined
in
section
455B.171
.
28
The
division
shall
establish
and
administer
projects
to
29
reduce
nutrients
in
surface
waters
from
nonpoint
sources
in
30
a
scientific,
reasonable,
and
cost-effective
manner.
The
31
division
shall
utilize
a
pragmatic,
strategic,
and
coordinated
32
approach
with
the
goal
of
accomplishing
reductions
over
time.
33
To
evaluate
the
progress
achieved
over
time
toward
the
goals
34
of
the
Iowa
nutrient
reduction
strategy
and
the
United
States
35
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environmental
protection
agency
gulf
hypoxia
action
plan,
the
1
baseline
condition
shall
be
calculated
for
the
time
period
from
2
1980
to
1996.
3
Sec.
22.
NEW
SECTION
.
466B.43
Water
quality
agriculture
4
infrastructure
programs.
5
1.
As
part
of
the
water
quality
initiative
established
6
pursuant
to
section
466B.42,
the
division
shall
administer
7
water
quality
agriculture
infrastructure
programs
created
in
8
this
section.
9
2.
The
purpose
of
the
programs
is
to
support
projects
for
10
the
installation
of
infrastructure,
including
conservation
11
structures,
practices,
or
other
measures
that
reduce
12
contributing
nutrient
loads,
associated
sediment,
or
13
contaminants
from
sources
to
surface
waters.
The
programs
14
shall
be
administered
in
a
manner
that
is
consistent
with
15
the
latest
version
of
the
“Iowa
Nutrient
Reduction
Strategy”
16
initially
presented
in
November
2012
by
the
department
of
17
agriculture
and
land
stewardship,
the
department
of
natural
18
resources,
and
Iowa
state
university
of
science
and
technology.
19
3.
An
edge-of-field
infrastructure
program
is
created.
20
The
program
shall
support
projects
located
on
agricultural
21
land,
which
may
include
demonstration
projects,
that
capture
22
or
filter
nutrients
entering
into
a
surface
water.
The
23
program’s
projects
shall
be
limited
to
infrastructure
designed
24
and
installed
for
use
over
multiple
years,
including
but
not
25
limited
to
wetlands,
bioreactor
systems,
saturated
buffers,
26
or
land
use
changes.
The
program
shall
be
financed
on
a
27
cost-share
basis.
28
4.
An
in-field
infrastructure
program
is
created.
The
29
program
shall
support
projects
located
on
agricultural
land,
30
which
may
include
demonstration
projects,
that
decrease
erosion
31
and
precipitation-induced
surface
runoff,
increase
water
32
infiltration
rates,
and
increase
soil
sustainability.
The
33
program’s
projects
shall
be
limited
to
infrastructure
designed
34
and
installed
for
use
over
multiple
years,
including
but
not
35
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limited
to
structures,
terraces,
and
waterways
located
on
1
cropland
or
pastureland,
and
including
but
not
limited
to
soil
2
conservation
or
erosion
control
structures
or
managed
drainage
3
systems.
The
program
shall
be
financed
on
a
cost-share
basis.
4
5.
Any
state
moneys
used
to
finance
a
project
under
a
5
water
quality
agriculture
infrastructure
program
shall
be
6
administered
according
to
an
agreement
entered
into
by
the
7
division
and
the
owner
of
the
land
where
the
infrastructure
8
is
to
be
installed.
The
agreement
shall
include
standard
9
terms
and
conditions
for
the
receipt
of
program
moneys
and
10
any
other
terms
and
conditions
the
division
deems
necessary
11
or
convenient
for
the
efficient
administration
of
the
project
12
or
program.
The
division
may
support
multiple
installations
13
of
infrastructure
on
a
single
parcel
of
land.
The
division
14
may
also
combine
programs
if
cost
effective.
The
division
15
may
annually
use
an
amount
of
not
more
than
four
percent
of
16
the
moneys
used
to
support
each
program
for
administrative
17
purposes.
18
6.
By
October
1,
2018,
and
each
October
1,
thereafter,
the
19
division
shall
submit
a
report
to
the
governor
and
the
general
20
assembly
itemizing
expenditures,
by
hydrologic
unit
code
8
21
watershed,
under
the
programs
during
the
previous
fiscal
year.
22
7.
Any
information
obtained
by
the
division
identifying
23
a
person
holding
a
legal
interest
in
agricultural
land
or
24
specific
agricultural
land
shall
be
a
confidential
record
under
25
section
22.7.
26
Sec.
23.
NEW
SECTION
.
466B.44
Water
quality
urban
27
infrastructure
program.
28
1.
As
part
of
the
water
quality
initiative
established
29
pursuant
to
section
466B.42,
the
division
shall
administer
a
30
water
quality
urban
infrastructure
program.
31
2.
The
purpose
of
the
program
is
to
support
watershed
32
projects
and
advance
implementation
of
the
latest
version
of
33
the
“Iowa
Nutrient
Reduction
Strategy”
initially
presented
34
in
November
2012
by
the
department
of
agriculture
and
land
35
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stewardship,
the
department
of
natural
resources,
and
Iowa
1
state
university
of
science
and
technology,
which
program
2
support
may
include
demonstration
projects
that
decrease
3
erosion,
precipitation-induced
surface
runoff,
and
storm
4
water
discharges
and
that
increase
water
infiltration
rates.
5
The
program’s
projects
shall
be
based
on
Iowa’s
storm
water
6
management
manual
published
by
the
department
of
natural
7
resources.
8
3.
The
program
shall
be
financed
on
a
cost-share
basis
or
9
through
cooperative
agreements
with
watershed
projects
funded
10
through
section
455B.199
whose
project
activities
fall
outside
11
the
territorial
boundaries
of
a
city.
12
4.
Any
state
moneys
used
to
finance
a
project
under
a
water
13
quality
urban
infrastructure
program
shall
be
administered
14
according
to
an
agreement
entered
into
by
the
division
and
the
15
owner
of
the
land
where
the
infrastructure
is
to
be
installed.
16
The
agreement
shall
include
standard
terms
and
conditions
17
for
the
receipt
of
program
moneys
and
any
other
terms
and
18
conditions
the
division
deems
necessary
or
convenient
for
19
the
efficient
administration
of
the
project
or
program.
The
20
division
may
support
multiple
installations
of
infrastructure
21
on
a
single
parcel
of
land.
The
division
may
annually
use
an
22
amount
of
not
more
than
four
percent
of
the
moneys
used
to
23
support
the
program
for
administrative
purposes.
24
5.
Notwithstanding
any
other
provision
in
this
section
25
to
the
contrary,
beginning
on
July
1,
2019,
the
division
may
26
use
any
amount
available
to
support
the
water
quality
urban
27
infrastructure
program
to
instead
support
the
three-year
data
28
collection
of
in-field
agricultural
practices
project
as
29
enacted
in
2015
Iowa
Acts,
ch.
132,
§18.
30
6.
Notwithstanding
any
other
provision
of
this
section
31
to
the
contrary,
the
division
may
use
any
amount
available
32
to
support
the
water
quality
urban
infrastructure
program
to
33
develop
and
maintain
an
online
resource
displaying
measurable
34
indicators
of
desirable
change
in
water
quality
within
the
35
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state’s
watersheds.
These
measurable
indicators
may
include
1
but
are
not
limited
to
public
and
private
funding
inputs,
2
involvement
in
water
quality
projects,
and
improvements,
land
3
use,
practice
adoption,
calculated
load
reduction,
and
measured
4
loads
at
existing
monitoring
stations.
5
7.
By
October
1,
2018,
and
by
October
1
of
each
year
6
thereafter,
the
division
shall
submit
a
report
to
the
governor
7
and
the
general
assembly
itemizing
expenditures
under
the
8
program
during
the
previous
fiscal
year.
9
8.
Any
information
obtained
by
the
division
identifying
a
10
person
holding
a
legal
interest
in
land
or
specific
land
shall
11
be
a
confidential
record
under
section
22.7.
12
Sec.
24.
LEGISLATIVE
INTENT.
It
is
the
intent
of
the
13
general
assembly
that
the
amendment
in
this
Act
to
the
14
definition
of
point
source
in
section
455B.171,
subsection
15
19,
is
a
conforming
amendment
consistent
with
current
state
16
and
federal
law,
and
that
the
amendment
does
not
change
the
17
application
of
current
law
but
instead
reflects
current
law
18
both
before
and
after
the
enactment
of
this
Act.
19
EXPLANATION
20
The
inclusion
of
this
explanation
does
not
constitute
agreement
with
21
the
explanation’s
substance
by
the
members
of
the
general
assembly.
22
This
bill
relates
to
water
quality
by
modifying
an
existing
23
wastewater
treatment
program,
establishing
new
water
quality
24
programs,
providing
for
appropriations
from
the
rebuild
Iowa
25
infrastructure
fund
and
making
other
appropriations
and
changes
26
related
to
water
quality,
and
creating
a
water
service
excise
27
tax
and
related
sales
tax
exemption.
28
REBUILD
IOWA
INFRASTRUCTURE
FUND
APPROPRIATIONS
FOR
WATER
29
QUALITY
AGRICULTURE
INFRASTRUCTURE
PROGRAMS.
30
RIIF
appropriations
——
The
bill
provides
for
a
total
of
31
$229.1
million
of
appropriations
over
13
fiscal
years
from
32
the
rebuild
Iowa
infrastructure
fund
in
Code
section
8.57
to
33
a
water
quality
infrastructure
fund
created
in
the
bill
(Code
34
section
8.57B)
to
be
used
by
the
division
of
soil
conservation
35
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and
water
quality
of
the
department
of
agriculture
and
land
1
stewardship
(soil
and
water
division)
in
administering
2
two
new
water
quality
agriculture
infrastructure
programs,
3
described
below.
The
appropriations
shall
be
as
follows:
$4.3
4
million
for
fiscal
year
2017-2018;
$4.3
million
for
fiscal
5
year
2018-2019;
$11.5
million
for
fiscal
year
2019-2020;
6
$16.5
million
per
fiscal
year
for
the
two-year
fiscal
period
7
beginning
July
1,
2020,
and
ending
June
30,
2022;
and
$22
8
million
per
fiscal
year
for
the
eight-year
fiscal
period
9
beginning
July
1,
2022,
and
ending
June
30,
2030.
The
water
10
quality
infrastructure
fund
is
repealed
on
the
date
that
11
all
moneys
transferred
to
the
fund
from
the
rebuild
Iowa
12
infrastructure
fund
as
provided
in
the
bill,
including
any
13
interest
or
earnings
on
such
moneys
credited
to
the
fund,
are
14
expended
by
the
soil
and
water
division,
and
the
balance
of
the
15
fund
is
zero.
16
Water
quality
agriculture
infrastructure
programs
——
As
17
part
of
the
existing
water
quality
initiative
of
the
soil
and
18
water
division
in
Code
section
466B.42,
the
bill
establishes
19
two
water
quality
agriculture
infrastructure
programs
(Code
20
section
466B.43),
consisting
of
an
edge-of-field
infrastructure
21
program
and
an
in-field
infrastructure
program,
that
will
22
provide
financing
on
a
cost-share
basis
to
certain
agriculture
23
infrastructure
projects,
including
demonstration
projects.
24
The
edge-of-field
program
will
support
projects
that
capture
25
or
filter
nutrients
entering
into
surface
water.
The
bill
26
includes
wetlands,
bioreactor
systems,
saturated
buffers,
and
27
land
use
changes
as
examples
of
projects
that
may
qualify.
28
The
in-field
infrastructure
program
will
support
projects
29
that
decrease
erosion
and
precipitation-induced
surface
30
runoff,
increase
water
infiltration
rates,
and
increase
soil
31
sustainability.
The
bill
includes
structures,
terraces,
32
waterways
located
on
cropland
or
pastureland,
and
soil
33
conservation
or
erosion
control
structures
or
managed
drainage
34
systems
as
examples
of
projects
that
may
qualify.
35
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26
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482
The
bill
provides
for
the
purpose
of
the
programs
and
1
requires
that
the
programs
be
administered
in
a
manner
that
2
is
consistent
with
the
latest
version
of
the
Iowa
nutrient
3
reduction
strategy
initially
presented
in
November
2012
by
the
4
department
of
agriculture
and
land
stewardship,
the
department
5
of
natural
resources,
and
Iowa
state
university
of
science
6
and
technology
(nutrient
reduction
strategy).
Both
programs
7
require
that
projects
be
located
on
agricultural
land
and
limit
8
projects
to
infrastructure
designed
and
installed
for
use
over
9
multiple
years.
The
bill
requires
that
the
soil
and
water
10
division
and
landowners
enter
into
agreements
for
financing
11
projects
under
the
programs,
provides
that
the
soil
and
water
12
division
may
support
multiple
installations
of
infrastructure
13
on
a
single
parcel
of
land,
and
provides
that
the
two
programs
14
may
be
combined
by
the
soil
and
water
division
if
it
is
cost
15
effective
to
do
so.
The
soil
and
water
division
is
allowed
16
to
annually
use
up
to
4
percent
of
the
programs’
moneys
for
17
administrative
purposes.
Beginning
in
2018,
the
soil
and
18
water
division
is
required
to
submit
a
report
by
October
1
of
19
each
year
to
the
general
assembly
and
the
governor
detailing
20
expenditures
for
the
previous
fiscal
year
under
the
programs
21
by
hydrologic
unit
code
8
watershed.
The
bill
provides
that
22
certain
information
related
to
agricultural
land
and
obtained
23
by
the
soil
and
water
division
under
the
programs
shall
be
24
considered
a
confidential
record
under
Code
section
22.7.
25
WATER
SERVICE
EXCISE
TAX
FOR
CERTAIN
WATER
QUALITY
PROGRAMS.
26
Water
service
excise
tax
and
related
sales
tax
exemption
——
27
The
bill
exempts
from
the
state
sales
tax
the
sales
price
from
28
the
sale
or
furnishing
by
a
water
utility
of
a
water
service
in
29
the
state
to
consumers
or
users.
“Water
service”
and
“water
30
utility”
are
defined
in
the
bill.
31
By
operation
of
Code
section
423.6,
an
item
exempt
from
the
32
imposition
of
the
sales
tax
is
also
exempt
from
the
use
tax
33
imposed
in
Code
section
423.5.
34
The
bill
creates
an
excise
tax
at
the
rate
of
6
percent
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on
the
sales
price
from
the
sale
or
furnishing
by
a
water
1
utility
of
a
water
service
in
the
state
to
consumers
or
users
2
(Code
chapter
423G).
The
director
of
revenue
is
required
3
to
administer
the
water
service
tax
as
nearly
as
possible
4
in
conjunction
with
the
administration
of
the
state
sales
5
and
use
tax
laws,
and,
to
that
end,
the
bill
incorporates
by
6
reference
numerous
Code
sections
that
relate
to
general
tax
7
administration
and
the
sales
and
use
tax
laws.
8
Water
service
tax
revenues
are
deposited
in
the
general
9
fund
of
the
state,
and
the
bill
then
requires
an
increasing
10
portion
of
the
water
service
tax
revenues
collected
each
year
11
to
be
transferred
to
a
water
quality
financial
assistance
fund
12
created
in
the
bill
(Code
section
16.134A)
to
support
various
13
water
quality
programs,
described
below.
Transfers
to
the
14
water
quality
financial
assistance
fund
equal
one-sixth
of
15
the
water
service
tax
revenues
collected
on
or
after
July
1,
16
2017,
but
before
August
1,
2018,
and
increases
to
one-third,
17
one-half,
two-thirds,
and
five-sixths
over
the
next
four
years.
18
All
water
service
tax
revenues
collected
on
or
after
August
19
1,
2022,
will
be
transferred
to
the
water
quality
financial
20
assistance
fund.
21
The
water
service
tax
is
repealed
on
the
enactment
date
22
that
the
state
sales
tax
rate
in
effect
on
July
1,
2016,
is
23
increased,
or
on
July
1,
2029,
whichever
occurs
earlier.
24
Water
service
tax
revenues
transferred
to
the
water
quality
25
financial
assistance
fund
are
then
appropriated
from
the
26
fund
as
follows:
40
percent
is
appropriated
to
the
Iowa
27
finance
authority
(IFA)
to
support
the
wastewater
and
drinking
28
water
treatment
financial
assistance
program
in
Code
section
29
16.134,
45
percent
is
appropriated
to
IFA
to
support
the
water
30
quality
financing
program
created
in
the
bill
(Code
sections
31
16.142
through
16.145),
and
15
percent
is
appropriated
to
the
32
soil
and
water
division
to
support
the
water
quality
urban
33
infrastructure
program
created
in
the
bill
(Code
section
34
466B.44).
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Wastewater
and
drinking
water
treatment
financial
assistance
1
program
——
The
bill
amends
the
wastewater
treatment
financial
2
assistance
program
administered
by
IFA
in
Code
section
16.134.
3
Currently,
the
program
provides
financial
assistance
in
the
4
form
of
grants
from
IFA
to
disadvantaged
communities
to
install
5
or
upgrade
wastewater
treatment
facilities
and
systems,
and
6
for
engineering
or
technical
assistance
for
facility
planning
7
and
design.
The
bill
adds
drinking
water
treatment
facilities
8
and
systems,
including
source
water
protection
projects,
to
9
the
program.
The
bill
also
removes
the
requirement
that
a
10
community
qualify
as
a
disadvantaged
community
in
order
to
11
receive
financial
assistance,
instead
providing
that
such
12
disadvantaged
communities
shall
receive
priority
under
the
13
program.
The
bill
also
modifies
other
priority
designations
14
under
the
program
and
modifies
goals
of
the
program,
and
15
provides
that
a
utility
management
organization
formed
under
16
Code
chapter
28E
or
operated
by
a
rural
water
system
organized
17
under
Code
chapter
357A
or
504
shall
be
considered
eligible
for
18
financial
assistance
under
the
program.
The
bill
also
adds
19
reporting
and
review
requirements
to
the
program,
modifies
the
20
permitted
use
of
fund
moneys
for
administrative
purposes,
and
21
creates
a
water
quality
financing
review
committee
consisting
22
of
three
members,
as
provided
in
the
bill,
to
review
and
23
approve
applications
for
financial
assistance
under
the
24
program.
Finally,
the
bill
requires
IFA
to
submit
a
report
by
25
October
1
of
each
year
to
the
governor
and
general
assembly
26
detailing
expenditures
for
the
previous
year
under
the
program,
27
and
creates
a
program
review
committee
consisting
of
eight
28
members,
as
provided
in
the
bill,
to
review
the
effectiveness
29
of
the
program
every
10
years,
beginning
in
2027.
30
Water
quality
financing
program
(Code
sections
16.142
31
through
16.145)
——
This
program
provides
financial
assistance
32
in
the
form
of
loans,
forgivable
loans,
and
grants
to
enhance
33
the
quality
of
surface
water
and
groundwater,
particularly
34
by
providing
financial
assistance
for
projects
designed
35
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to
improve
water
quality
by
addressing
point
and
nonpoint
1
sources.
The
program
is
administered
by
IFA
in
cooperation
2
with
the
department
of
natural
resources
and
the
department
of
3
agriculture
and
land
stewardship.
The
bill
creates
a
water
4
quality
financing
program
fund
administered
by
IFA
to
provide
5
financial
assistance
under
the
program.
The
bill
allows
IFA
6
to
establish
and
maintain
other
funds
and
accounts
necessary
7
to
carry
out
the
purposes
of
the
program.
Under
the
program,
8
an
eligible
entity
is
a
municipality,
as
defined
in
the
bill,
9
or
a
landowner,
public
utility,
or
rural
water
district
or
10
rural
water
association.
The
bill
provides
certain
application
11
requirements
regarding
a
plan
for
water
quality
improvement
and
12
financing
and
requires
loan
recipients
to
enter
into
agreements
13
with
IFA
for
terms
of
the
financial
assistance.
14
In
order
to
be
eligible
for
financial
assistance,
a
proposed
15
project
must
improve
water
quality
in
the
local
area
or
16
watershed
using
practices
identified
in
the
Iowa
nutrient
17
reduction
strategy.
Drainage
and
levee
districts
are
required
18
to
utilize
installations
described
in
the
edge-of-field
19
infrastructure
program
(Code
section
466B.43),
discussed
above.
20
IFA
reviews
proposed
projects,
negotiates
project
details,
and
21
approves
or
denies
applications.
22
Beginning
in
2018,
IFA
is
required
to
submit
a
report
by
23
October
1
of
each
year
to
the
general
assembly
and
the
governor
24
detailing
expenditures
from
the
fund
for
the
previous
fiscal
25
year.
26
Water
quality
urban
infrastructure
program
(Code
section
27
466B.44)
——
As
part
of
the
existing
water
quality
initiative
28
of
the
soil
and
water
division
in
Code
section
466B.42,
the
29
bill
creates
a
water
quality
urban
infrastructure
program
30
to
support
watershed
projects
and
advance
implementation
31
of
the
Iowa
nutrient
reduction
strategy.
Program
support
32
may
include
demonstration
projects
that
decrease
erosion,
33
precipitation-induced
surface
runoff,
and
storm
water
34
discharges
and
that
increase
water
infiltration
rates.
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Projects
shall
be
based
on
Iowa’s
storm
water
management
manual
1
published
by
the
department
of
natural
resources.
Financial
2
assistance
is
provided
on
a
cost-share
basis
or
through
3
cooperative
agreements
with
certain
watersheds
as
described
4
in
the
bill.
The
bill
requires
the
soil
and
water
division
5
and
landowners
to
enter
into
agreements
for
financing
projects
6
under
the
program,
and
provides
that
the
soil
and
water
7
division
may
support
multiple
installations
of
infrastructure
8
on
a
single
parcel
of
land.
The
soil
and
water
division
is
9
allowed
to
annually
use
up
to
4
percent
of
the
program’s
moneys
10
for
administrative
purposes.
11
The
soil
and
water
division
may
use
any
amount
available
12
under
the
program
to
develop
and
maintain
an
online
resource
13
displaying
measurable
indicators
of
desirable
change
in
water
14
quality
within
the
state’s
watersheds,
and
beginning
July
1,
15
2019,
may
use
any
amount
available
under
the
program
to
support
16
the
three-year
data
collection
of
the
in-field
agricultural
17
practices
project
as
enacted
in
2015
Iowa
Acts,
ch.
132,
§18.
18
Beginning
in
2018,
the
soil
and
water
division
is
required
19
to
submit
a
report
by
October
1
of
each
year
to
the
general
20
assembly
and
the
governor
detailing
expenditures
for
the
21
previous
fiscal
year
under
the
program.
The
bill
provides
that
22
certain
information
related
to
the
land
and
obtained
by
the
23
soil
and
water
division
under
the
program
shall
be
considered
a
24
confidential
record
under
Code
section
22.7.
25
MISCELLANEOUS
CHANGES.
The
bill
defines
“Iowa
nutrient
26
reduction
strategy”
and
“nutrient”
in
Code
section
455B.171,
27
which
contains
definitions
for
terms
used
in
provisions
of
28
the
Code
that
concern
the
jurisdiction
of
the
department
of
29
natural
resources
related
to
water
quality,
and
also
amends
30
the
definition
of
“point
source”
in
that
Code
section
to
31
exclude
agricultural
storm
water
discharges
and
return
flows
32
from
irrigated
agriculture.
The
bill
provides
that
it
is
the
33
legislative
intent
of
the
general
assembly
that
this
amendment
34
to
the
definition
of
“point
source”
is
a
conforming
amendment
35
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consistent
with
current
state
and
federal
law,
and
that
the
1
amendment
does
not
change
the
application
of
current
law
but
2
instead
reflects
current
law
both
before
and
after
enactment
3
of
the
bill.
4
The
bill
amends
the
declaration
of
policy
for
the
department
5
of
natural
resources’
water
quality
jurisdiction
in
Code
6
section
455B.177
to
include
in
such
policy
the
assessment
7
and
reduction
of
nutrients
in
surface
waters
over
time
by
8
implementing
the
Iowa
nutrient
reduction
strategy,
and
further
9
adds
that
progress
under
the
Iowa
nutrient
reduction
strategy
10
and
the
United
States
environmental
protection
agency
gulf
11
hypoxia
action
plan
shall
be
evaluated
using
a
baseline
12
condition
calculated
for
the
time
period
between
1980
and
1996.
13
The
bill
amends
Code
section
466B.3,
relating
to
the
water
14
resources
coordinating
council,
to
provide
that
when
the
15
council
is
measuring
the
success
of
its
efforts,
progress
under
16
the
Iowa
nutrient
reduction
strategy
and
the
United
States
17
environmental
protection
agency
gulf
hypoxia
action
plan
shall
18
be
evaluated
using
a
baseline
condition
calculated
for
the
time
19
period
between
1980
and
1996.
20
The
bill
amends
Code
section
466B.42,
relating
to
the
water
21
quality
initiative
of
the
soil
and
water
division,
to
provide
22
that
the
goal
of
the
water
quality
initiative
is
to
implement
23
the
soil
and
water
division’s
responsibilities
under
the
Iowa
24
nutrient
reduction
strategy,
and
to
provide
that
progress
under
25
the
Iowa
nutrient
reduction
strategy
and
the
United
States
26
environmental
protection
agency
gulf
hypoxia
action
plan
shall
27
be
evaluated
using
a
baseline
condition
calculated
for
the
time
28
period
between
1980
and
1996.
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