HF 2642 (LSB 6696HV (2) 91)

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 beneficial use in the context of water allocation and the disposal of liquid waste from distillery operations.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:

    Section 1.  Section 455B.171, Code 2026, is amended by adding the following new subsection:
   NEW SUBSECTION.  18A.  “On-site native distillery operation” means land where there is located an operating native distillery issued a class “A” native distilled spirits license by the department of revenue pursuant to section 123.43A.
    Sec. 2.  NEW SECTION.  455B.172B  On-site native distillery operations.
   The department shall adopt by rule standards for the disposal of liquid waste originating from an on-site native distillery operation produced during the manufacture of native distilled spirits. The standards shall account for the volume of liquid waste produced, the manner of disposal by land application, and the per acre application rate per day.
    Sec. 3.  Section 455B.261, subsection 4, Code 2026, is amended by striking the subsection.
    Sec. 4.  Section 455B.265, subsection 1, Code 2026, is amended to read as follows:
   1.  In its consideration of applications for permits, the department shall give priority in processing to persons in the order that the applications are received, except where when the application of this processing priority system prevents the prompt approval of routine applications or where when the public health, safety, or welfare will be threatened by delay. If the department determines after investigation that the diversion, storage, or withdrawal is consistent with the principles and policies of beneficial use and ensuring conservation, the department shall grant a permit.  The determination of beneficial use shall be made on a case-by-case basis, and shall not be based on categories of uses. An application for a permit shall be approved or denied within ninety days from the date that the department receives the complete application. A renewal permit shall be approved or denied by the department within thirty days from the date that the department receives a complete application for renewal. If the applicant requests an extension of the time allotted, the department may approve the request to allow the applicant more time to submit additional information to resolve a contested or complex application. Regardless of the request in the application, and subject to appeal, the director or the department may determine the duration and frequency of withdrawal and the quantity of water to be diverted, stored, or withdrawn pursuant to the permit. Each permit granted after July 1, 1986, shall include conditions requiring routine conservation practices, and requiring implementation of emergency conservation measures after notification by the department.
EXPLANATION
The inclusion of this explanation does not constitute agreement with
the explanation’s substance by the members of the general assembly.
   This bill relates to the use of certain liquids, including beneficial use in the context of water allocation and the disposal of liquid waste from distillery operations.
   The bill requires the department of natural resources (department) to adopt by rule standards for the disposal of liquid waste originating from an on-site native distillery operation produced during the manufacture of native distilled spirits. The bill requires the standards to account for the volume of liquid waste produced, the manner of disposal by land application, and the per acre application rate per day.
   Under current law, for the purposes of Code chapter 455B, subchapter III, part 4, “beneficial use” is defined as the application of water to a useful purpose that inures to the benefit of the water user and subject to the user’s dominion and control but does not include the waste or pollution of water. The bill strikes the definition and provides that beneficial use is determined by the department on a case-by-case basis when determining whether to grant a permit for the diversion, storage, or withdrawal of water, and must not be based on the category of use.