House File 2642 - Introduced HOUSE FILE 2642 BY COMMITTEE ON NATURAL RESOURCES (SUCCESSOR TO HSB 713) A BILL FOR An Act relating to the use of certain liquids, including 1 beneficial use in the context of water allocation and the 2 disposal of liquid waste from distillery operations. 3 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 4 TLSB 6696HV (2) 91 sb/js

H.F. 2642 Section 1. Section 455B.171, Code 2026, is amended by adding 1 the following new subsection: 2 NEW SUBSECTION . 18A. “On-site native distillery operation” 3 means land where there is located an operating native 4 distillery issued a class “A” native distilled spirits license 5 by the department of revenue pursuant to section 123.43A. 6 Sec. 2. NEW SECTION . 455B.172B On-site native distillery 7 operations. 8 The department shall adopt by rule standards for the 9 disposal of liquid waste originating from an on-site native 10 distillery operation produced during the manufacture of native 11 distilled spirits. The standards shall account for the volume 12 of liquid waste produced, the manner of disposal by land 13 application, and the per acre application rate per day. 14 Sec. 3. Section 455B.261, subsection 4, Code 2026, is 15 amended by striking the subsection. 16 Sec. 4. Section 455B.265, subsection 1, Code 2026, is 17 amended to read as follows: 18 1. In its consideration of applications for permits, the 19 department shall give priority in processing to persons in 20 the order that the applications are received, except where 21 when the application of this processing priority system 22 prevents the prompt approval of routine applications or 23 where when the public health, safety, or welfare will be 24 threatened by delay. If the department determines after 25 investigation that the diversion, storage, or withdrawal is 26 consistent with the principles and policies of beneficial 27 use and ensuring conservation, the department shall grant a 28 permit. The determination of beneficial use shall be made on 29 a case-by-case basis, and shall not be based on categories 30 of uses. An application for a permit shall be approved or 31 denied within ninety days from the date that the department 32 receives the complete application. A renewal permit shall be 33 approved or denied by the department within thirty days from 34 the date that the department receives a complete application 35 -1- LSB 6696HV (2) 91 sb/js 1/ 2

H.F. 2642 for renewal. If the applicant requests an extension of the 1 time allotted, the department may approve the request to allow 2 the applicant more time to submit additional information to 3 resolve a contested or complex application. Regardless of the 4 request in the application, and subject to appeal, the director 5 or the department may determine the duration and frequency 6 of withdrawal and the quantity of water to be diverted, 7 stored, or withdrawn pursuant to the permit. Each permit 8 granted after July 1, 1986, shall include conditions requiring 9 routine conservation practices, and requiring implementation 10 of emergency conservation measures after notification by the 11 department. 12 EXPLANATION 13 The inclusion of this explanation does not constitute agreement with 14 the explanation’s substance by the members of the general assembly. 15 This bill relates to the use of certain liquids, including 16 beneficial use in the context of water allocation and the 17 disposal of liquid waste from distillery operations. 18 The bill requires the department of natural resources 19 (department) to adopt by rule standards for the disposal of 20 liquid waste originating from an on-site native distillery 21 operation produced during the manufacture of native distilled 22 spirits. The bill requires the standards to account for the 23 volume of liquid waste produced, the manner of disposal by land 24 application, and the per acre application rate per day. 25 Under current law, for the purposes of Code chapter 455B, 26 subchapter III, part 4, “beneficial use” is defined as the 27 application of water to a useful purpose that inures to the 28 benefit of the water user and subject to the user’s dominion 29 and control but does not include the waste or pollution 30 of water. The bill strikes the definition and provides 31 that beneficial use is determined by the department on a 32 case-by-case basis when determining whether to grant a permit 33 for the diversion, storage, or withdrawal of water, and must 34 not be based on the category of use. 35 -2- LSB 6696HV (2) 91 sb/js 2/ 2