S.F. 409 DIVISION I 1 ADMINISTRATIVE APPEALS TIMELINE 2 Section 1. NEW SECTION . 455B.110 Administrative appeal 3 orders —— deadline. 4 1. An order issued by the director or the department 5 pursuant to authority granted in this chapter may be appealed, 6 resulting in the scheduling of a contested case hearing as 7 provided for in chapter 17A. The appeal must be received 8 by the director within the applicable timeframe established 9 in this section. If the appeal is not received within the 10 applicable timeframe, the appeal is not timely and the order 11 is final agency action. 12 2. For a person that holds a permit issued by the 13 department, an appeal must be received by the director within 14 sixty days of the issuance of the order to the address of 15 the person identified in the permit and the address of the 16 responsible party listed in the permit, if any. 17 3. For a person that is required to maintain a registered 18 agent or a registered office in the state and does not hold a 19 permit issued by the department, an appeal must be received by 20 the director within sixty days of the issuance of the order 21 to the official registered agent address on file with the 22 secretary of state. 23 4. For any other person, an appeal must be received by 24 the director within sixty days of issuance to the last known 25 address. 26 5. The director or the department shall provide a copy of 27 the order by ordinary mail or electronic mail to the person’s 28 attorney if the attorney has been identified to the department 29 as representing the person. 30 6. a. For the purposes of this section, the date of 31 issuance of an order by the director or the department is the 32 postmarked date that the order is sent by the department to the 33 registered agent or party by certified mail. For the purposes 34 of this section, the date of receipt by the director is the 35 -1- LSB 2265SV (3) 88 js/tm 1/ 7

S.F. 409 postmarked date that the appeal was sent to the director. 1 Sec. 2. Section 455B.138, subsection 1, Code 2019, is 2 amended to read as follows: 3 1. When the director has evidence that a violation of 4 any provision of division II of this chapter or chapter 459, 5 subchapter II , or rule, standard or permit established or 6 issued under division II or chapter 459, subchapter II , has 7 occurred, the director shall notify the alleged violator and, 8 by informal negotiation, attempt to resolve the problem. 9 If the negotiations fail to resolve the problem within a 10 reasonable period of time, the director shall issue an order 11 directing the violator to prevent, abate or control the 12 emissions or air pollution involved. The order shall prescribe 13 the date by which the violation shall cease and may prescribe 14 timetables for necessary action to prevent, abate or control 15 the emissions of air pollution. The order may be appealed to 16 the commission. The applicable timeframes for the issuance and 17 appeal of the order are defined in section 455B.110. 18 Sec. 3. Section 455B.175, subsection 1, paragraph a, Code 19 2019, is amended to read as follows: 20 a. The director may issue an order directing the person 21 to desist in the practice which constitutes the violation or 22 to take such corrective action as may be necessary to ensure 23 that the violation will cease. The person to whom such order 24 is issued may cause to be commenced a contested case within 25 the meaning of the Iowa administrative procedure Act, chapter 26 17A , by filing with the director within thirty days a notice 27 of appeal to the commission. The applicable timeframes for 28 the issuance and appeal of the order are defined in section 29 455B.110. On appeal the commission may affirm, modify or 30 vacate the order of the director; or 31 Sec. 4. Section 455B.183, Code 2019, is amended by adding 32 the following new subsection: 33 NEW SUBSECTION . 9. A rural water association organized 34 under chapter 357A or chapter 504 that employs or retains 35 -2- LSB 2265SV (3) 88 js/tm 2/ 7

S.F. 409 a licensed engineer shall be considered to have met the 1 permitting requirements of this section for the purposes 2 of sewer extensions and water supply distribution system 3 extensions. The department shall not disqualify a rural 4 water system if the system’s hydraulic modeling complies with 5 standards for water supply distribution systems adopted by the 6 commission pursuant to this chapter. 7 Sec. 5. Section 455B.279, subsection 1, Code 2019, is 8 amended to read as follows: 9 1. The director may issue any order necessary to secure 10 compliance with or prevent a violation of this part or the 11 rules adopted pursuant to this part. Within thirty days of 12 issuance, the The order may be appealed to the commission by 13 filing a notice of appeal with the director. The appeal shall 14 be conducted as a contested case pursuant to chapter 17A and 15 the commission may affirm, modify, or revoke the order. The 16 department may request legal services as required from the 17 attorney general, including any legal proceeding necessary to 18 obtain compliance with this part and rules and orders issued 19 under this part. The applicable timeframes for the issuance 20 and appeal of an order are defined in section 455B.110. 21 Sec. 6. Section 455B.308, Code 2019, is amended to read as 22 follows: 23 455B.308 Appeal from order. 24 Any person aggrieved by an order of the director may appeal 25 the order by filing a written notice of appeal with the 26 director within thirty days of the issuance of the order in 27 accordance with section 455B.110 . The director shall schedule 28 a hearing for the purpose of hearing the arguments of the 29 aggrieved person within thirty days of the filing of the notice 30 of appeal. The hearing may be held before the commission 31 or its designee. A complete record shall be made of the 32 proceedings. The director shall issue the findings in writing 33 to the aggrieved person within thirty days of the conclusion 34 of the hearing. Judicial review may be sought of actions 35 -3- LSB 2265SV (3) 88 js/tm 3/ 7

S.F. 409 of the commission in accordance with the terms of the Iowa 1 administrative procedure Act, chapter 17A . Notwithstanding the 2 terms of the Act, petitions for judicial review may be filed 3 in the district court of the county where the acts in issue 4 occurred. 5 Sec. 7. Section 455B.476, subsection 1, Code 2019, is 6 amended to read as follows: 7 1. If there is substantial evidence that a person has 8 violated or is violating a provision of this part or a 9 rule adopted under this part the director may issue an 10 order directing the person to desist in the practice which 11 constitutes the violation, and to take corrective action as 12 necessary to ensure that the violation will cease, and may 13 impose appropriate administrative penalties pursuant to section 14 455B.109 . The person to whom the order is issued may appeal 15 the order to the commission as provided in chapter 17A . On 16 appeal, the commission may affirm, modify or vacate the order 17 of the director. The applicable timeframes for the issuance 18 and appeal of the order are defined in section 455B.110. 19 Sec. 8. Section 455D.23, Code 2019, is amended to read as 20 follows: 21 455D.23 Administrative enforcement —— compliance orders. 22 The director may issue any order necessary to secure 23 compliance with or prevent a violation of the provisions of 24 this chapter or any rule adopted or permit or order issued 25 pursuant to this chapter . Any order issued to enforce section 26 455D.4A may include a requirement to remove and properly 27 dispose of materials being accumulated speculatively from a 28 property and impose costs and penalties as determined by the 29 department by rule. The person to whom such compliance order 30 is issued may cause to be commenced a contested case within the 31 meaning of chapter 17A by filing within thirty days a notice 32 of appeal to the commission. On appeal, the commission may 33 affirm, modify, or vacate the order of the director. The 34 applicable timeframes for the issuance and appeal of the order 35 -4- LSB 2265SV (3) 88 js/tm 4/ 7

S.F. 409 are defined in section 455B.110. 1 Sec. 9. Section 458A.11, subsection 2, Code 2019, is amended 2 to read as follows: 3 2. An order or amendment of an order, except in an 4 emergency, shall not be made by the department without a 5 public hearing upon at least ten days’ notice. The public 6 hearing shall be held at the time and place prescribed by the 7 department, and any interested person is entitled to be heard. 8 The applicable timeframes for the issuance and appeal of the 9 order are defined in section 455B.110. 10 DIVISION II 11 ADMINISTRATIVE CHANGES FOR WASTE DISPOSAL SYSTEMS AND PUBLIC 12 WATER SUPPLY SYSTEMS 13 Sec. 10. Section 455B.183, subsection 1, paragraph c, Code 14 2019, is amended to read as follows: 15 c. The operation of any waste disposal system or public 16 water supply system or any part of or extension or addition 17 to the system. This provision paragraph does not apply to a 18 pretreatment system, the effluent of which is to be discharged 19 directly to another disposal system for final treatment and 20 disposal; a semipublic sewage disposal system, the construction 21 of which has been approved by the department and which that 22 does not discharge into a water of the state; or a private 23 sewage disposal system which that does not discharge into 24 a water of the state. The commission may adopt additional 25 exemptions for a class of disposal systems that do not 26 discharge into a water of the state or the director may waive 27 the permit requirement for an individual system that does 28 not discharge into a water of the state. The commission or 29 director shall consider the volume, location, frequency, and 30 nature of disposal from a system or class of systems before 31 granting a waiver or exemption. Sludge from a semipublic 32 or private sewage disposal system shall be disposed of in 33 accordance with the rules adopted by the department pursuant to 34 chapter 17A . The exemption of this paragraph shall not apply 35 -5- LSB 2265SV (3) 88 js/tm 5/ 7

S.F. 409 to any industrial waste discharges. 1 Sec. 11. Section 455B.265, subsection 5, Code 2019, is 2 amended to read as follows: 3 5. Prior to the issuance of a new permit or modification 4 of a permit under this section to a community public water 5 supply, the department shall publish a notice of recommendation 6 to grant a permit. The notice shall include a brief summary 7 of the proposed permit and shall be published in a newspaper 8 of general circulation within the county of the proposed 9 water source as provided in section 618.3 . If the newspaper 10 of general circulation is not the newspaper of the nearest 11 locality to the proposed water source that publishes a 12 newspaper, the notice shall also be published in the newspaper 13 of the nearest locality to the proposed water source that 14 publishes a newspaper and the department may charge the 15 applicant for the expenses associated with publishing the 16 notice in the second newspaper . 17 Sec. 12. Section 455B.265, subsection 6, paragraphs a and c, 18 Code 2019, are amended to read as follows: 19 a. The amount of a fee shall be based on the department’s 20 reasonable cost of reviewing applications, issuing permits, 21 ensuring compliance with the terms of the permits, and 22 resolving water interference complaints. The commission shall 23 calculate the fees to produce total revenues of not more than 24 five hundred thousand dollars for each fiscal year , commencing 25 with the fiscal year beginning July 1, 2009, and ending June 26 30, 2010 . 27 c. The commission shall annually review the amount of moneys 28 generated by the fees, the balance in the water use permit 29 fund, and the anticipated expenses for the succeeding fiscal 30 year years . 31 EXPLANATION 32 The inclusion of this explanation does not constitute agreement with 33 the explanation’s substance by the members of the general assembly. 34 This bill affects administrative procedures within the 35 -6- LSB 2265SV (3) 88 js/tm 6/ 7

S.F. 409 department of natural resources. 1 Division I of the bill creates a 60-day period during which 2 an entity may appeal an order issued by the director or the 3 department pursuant to the department’s authority in Code 4 chapter 455B. The start of the 60-day period is contingent 5 on what type of entity seeks an appeal. Division I makes 6 conforming changes throughout Code chapter 455B. The issuance 7 and appeal of an order pursuant to Code chapters 455D (waste 8 volume reduction and recycling) and 458A (oil, gas, and other 9 minerals) also conform to the new 60-day period. 10 Division I of the bill also provides that a rural water 11 association organized under Code chapter 357A or 504 shall 12 be considered to have met permitting requirements for sewer 13 extensions and water supply distribution systems if the rural 14 water association employs or retains a licensed engineer. 15 Division II of the bill allows the environmental protection 16 commission to exempt from permit requirements a class of waste 17 disposal systems that do not discharge into water of the state 18 and are not currently exempt. Division II also allows the 19 director to waive the permit requirement of an individual 20 system that does not discharge into a water of the state. To 21 issue such an exemption or waiver, the commission or director 22 must first consider the volume, location, frequency, and nature 23 of the system or class of systems. Finally, Division II 24 eliminates the requirement that notice of a recommendation to 25 grant a permit to a community public water supply be published 26 in a newspaper of general circulation within the county and 27 removes out-of-date language. 28 -7- LSB 2265SV (3) 88 js/tm 7/ 7