H.F. _____ Section 1. Section 455B.172, subsection 7, paragraph a, 1 subparagraph (2), Code 2026, is amended to read as follows: 2 (2) Those used for the withdrawal of water for which a 3 permit is required pursuant to section 455B.268, subsection 1 4 455B.264, subsection 2 . 5 Sec. 2. Section 455B.261, subsection 4, Code 2026, is 6 amended to read as follows: 7 4. “Beneficial use” means the application of water to a 8 lawful and useful purpose that inures to the benefit of the 9 water user and subject to the user’s dominion and control but 10 does not include the waste or pollution of water , in such 11 reasonable quantities as are necessary for the economical and 12 efficient utilization of that water, consistent with the public 13 interest of the state. Beneficial uses shall include but are 14 not limited to purposes related to or involving domestic, 15 municipal, agricultural, industrial, fish and wildlife, or 16 recreational activities . 17 Sec. 3. Section 455B.261, subsection 16, Code 2026, is 18 amended by striking the subsection. 19 Sec. 4. Section 455B.262, Code 2026, is amended to read as 20 follows: 21 455B.262 Declaration of policy and planning requirements. 22 1. It is recognized that the protection of life and 23 property from floods, the prevention of damage to lands from 24 floods, and the orderly development, wise use, protection, 25 and conservation of the water resources of the state by their 26 considered and proper use is of paramount importance to the 27 welfare and prosperity of the people of the state, and to 28 realize these objectives, it is the policy of the state to 29 correlate and vest the powers of the state in a single agency, 30 the department , with the duty and authority to assess the 31 water needs of all water users at five-year intervals for the 32 twenty years beginning January 1, 1985, and ending December 33 31, 2004, utilizing a database developed and managed by the 34 Iowa geological survey, and to prepare a general plan of water 35 -1- LSB 6696YC (3) 91 sb/js 1/ 6

H.F. _____ allocation in this state considering the quantity and quality 1 of water resources available in this state designed to meet 2 the specific needs of the water users . The department shall 3 also develop and the department shall adopt no later than June 4 30, 1986, a plan for delineation of floodplain and floodway 5 boundaries for selected stream reaches in the various river 6 basins of the state. Selection of the stream reaches and 7 assignment of priorities for mapping of the selected reaches 8 shall be based on consideration of flooding characteristics, 9 the type and extent of existing and anticipated floodplain 10 development in particular stream reaches, and the needs 11 of local governmental bodies for assistance in delineating 12 floodplain and floodway boundaries. The plan of floodplain 13 mapping shall be for the period from June 30, 1986, to December 14 31, 2004. After the department adopts a plan of floodplain 15 mapping, the department shall submit a progress report and 16 proposed implementation schedule to the general assembly 17 biennially. The department may modify the floodplain mapping 18 plan as needed in response to changing circumstances. 19 2. The general welfare of the people of the state requires 20 that the water resources of the state be put to beneficial use 21 which includes ensuring that the waste or unreasonable use, or 22 unreasonable methods of use of water be prevented, and that 23 the conservation and protection of water resources be required 24 with the view to their reasonable and beneficial use in the 25 interest of the people, and that the public and private funds 26 for the promotion and expansion of the beneficial use of water 27 resources be invested to the end that the best interests and 28 welfare of the people are served. 29 3. 2. Water occurring in a basin or watercourse, or other 30 body of water of the state, is public water and public wealth 31 of the people of the state and subject to use in accordance 32 with this chapter , and the control and development and use of 33 water for all beneficial purposes is vested in the state, which 34 shall take measures to ensure the conservation and protection 35 -2- LSB 6696YC (3) 91 sb/js 2/ 6

H.F. _____ of the water resources of the state. These measures shall 1 include the protection of specific surface and groundwater 2 sources as necessary to ensure long-term availability in terms 3 of quantity and quality to preserve the public health and 4 welfare of the state’s water resources . 5 Sec. 5. Section 455B.264, subsection 2, Code 2026, is 6 amended to read as follows: 7 2. a. Except for a nonregulated use, a person withdrawing 8 water from any surface or groundwater source, or a person who 9 diverts water or any material from the surface directly into 10 an underground watercourse or basin, must first apply for and 11 obtain a permit from the department. Except for nonregulated 12 uses, it is unlawful to withdraw water from any surface or 13 groundwater source, or to take treated water from a permitted 14 aquifer storage and recovery site, except in compliance 15 with this section. However, existing permitted uses may be 16 continued during the department’s review period when applicants 17 apply for a permit renewal. 18 b. Upon application by any person for permission to 19 divert, pump, or otherwise take waters withdraw water from 20 any watercourse, underground basin or watercourse, drainage 21 ditch, or settling basin surface or groundwater source within 22 this state for any purpose other than a nonregulated use, 23 the director shall investigate the effect of the use upon 24 the natural flow of the watercourse, the effect of the use 25 upon the owners of any land which that might be affected by 26 the use, the effect of the use upon prior users of the water 27 source and contracts made under section 455B.263 , and whether 28 the use is consistent with the principles and policies of a 29 beneficial use. If the director determines that the withdrawal 30 or proposed use will have an adverse impact on a surface or 31 groundwater source, the natural flow of the watercourse, or 32 the owners of any land that might be affected by the use, 33 then appropriate conditions shall be included in the permit 34 to mitigate the adverse impact. If permit conditions cannot 35 -3- LSB 6696YC (3) 91 sb/js 3/ 6

H.F. _____ mitigate the adverse impact, the department may deny the 1 application. 2 c. A permit shall not be issued if any of the following 3 apply: 4 (1) The use proposed on the application is not a beneficial 5 use. 6 (2) The established average minimum water flow in the 7 watercourse is not preserved. 8 (3) The proposed use will impair the navigability of any 9 navigable watercourse. 10 (4) The proposed use will threaten the long-term 11 availability of water in any surface or groundwater source. 12 Sec. 6. Section 455B.265, subsection 1, Code 2026, is 13 amended to read as follows: 14 1. a. In its consideration of applications for permits, 15 the department shall give priority in processing to persons in 16 the order that the applications are received, except where when 17 the application of this processing priority system prevents 18 the prompt approval of routine applications or where when 19 the public health, safety, or welfare will be threatened by 20 delay. If the department determines after investigation that 21 the diversion, storage, or withdrawal is consistent with 22 the principles and policies of beneficial use and ensuring 23 conservation complies with section 455B.254, subsection 2 , the 24 department shall grant a permit. 25 b. An application for a permit shall be approved or 26 denied within ninety days from the date that the department 27 receives the complete application. A renewal permit shall be 28 approved or denied by the department within thirty days from 29 the date that the department receives a complete application 30 for renewal. If the applicant requests an extension of the 31 time allotted, the department may approve the request to allow 32 the applicant more time to submit additional information to 33 resolve a contested or complex application. Regardless of the 34 request in the application, and subject to appeal, the director 35 -4- LSB 6696YC (3) 91 sb/js 4/ 6

H.F. _____ or the department may determine the duration and frequency 1 of withdrawal and the quantity of water to be diverted, 2 stored, or withdrawn pursuant to the permit. Each permit 3 granted after July 1, 1986, shall include conditions requiring 4 routine conservation practices, and requiring implementation 5 of emergency conservation measures after notification by the 6 department. 7 Sec. 7. Section 455B.265, subsection 2, Code 2026, is 8 amended by striking the subsection. 9 Sec. 8. Section 455B.265, subsection 6, unnumbered 10 paragraph 1, Code 2026, is amended to read as follows: 11 The department may charge a fee to a person who has been 12 granted a permit pursuant to this section or is required to 13 have a permit pursuant to section 455B.268 455B.264, subsection 14 2 . The commission shall adopt by rule the fee amounts. 15 Sec. 9. Section 460.302, subsection 8, unnumbered paragraph 16 1, Code 2026, is amended to read as follows: 17 Notwithstanding the prohibitions of section 455B.267, 18 subsection 4 455B.264, subsection 2 , an owner of an 19 agricultural drainage well may make emergency repairs 20 necessitated by damage to the drainage well to minimize surface 21 runoff into the agricultural drainage well, upon the approval 22 of the county board of supervisors or the board’s designee of 23 the county in which the agricultural drainage well is located. 24 The approval shall be based upon the following conditions: 25 Sec. 10. REPEAL. Sections 455B.267, 455B.268, and 26 455B.269, Code 2026, are repealed. 27 EXPLANATION 28 The inclusion of this explanation does not constitute agreement with 29 the explanation’s substance by the members of the general assembly. 30 This bill relates to the use and withdrawal of Iowa’s surface 31 and groundwater resources, including permitting requirements. 32 The bill amends the definition of “beneficial use” to mean 33 the application of water to a lawful and useful purpose in 34 reasonable quantities necessary for economical and efficient 35 -5- LSB 6696YC (3) 91 sb/js 5/ 6

H.F. _____ utilization, consistent with the public interest. 1 The bill strikes the definition of “waste” for purposes of 2 Code chapter 455B, subchapter III, part 4. 3 The bill enhances the readability of the declaration of 4 policy and planning requirements, by removing certain planning 5 language, time-limited requirements, and declarations. Under 6 current law, the department of natural resources (department) 7 is required to submit a progress report and proposed 8 implementation schedule of the floodplain mapping plan every 9 two years to the general assembly, and is authorized to modify 10 the floodplain mapping plan as needed. The bill removes the 11 provision requiring submission and authorizing modification 12 related to the floodplain mapping plan. 13 Under current law, the department is directed to take 14 measures to protect water resources to ensure long-term 15 availability in terms of quantity and quality to preserve 16 public health and welfare. The bill amends the language to 17 ensure long-term availability of the state’s water resources. 18 The bill requires any person withdrawing water from surface 19 or groundwater sources or diverting water into underground 20 watercourses or basins to first be issued a permit, except for 21 nonregulated uses. The bill allows for existing permitted uses 22 during the department’s review period. 23 The bill prohibits the director from approving a permit 24 application if the director determines that the withdrawal 25 or proposed use will adversely impact water sources, natural 26 flows, or landowners, if permit conditions cannot mitigate 27 the adverse effects. The bill requires denial of a permit 28 when the proposed use is not a beneficial use, would fail to 29 preserve established average minimum water flows, would impair 30 navigability, or would threaten the long-term availability of 31 water in any surface or groundwater source. 32 The bill makes changes to align with the amended provisions 33 in the bill, including repealing certain Code sections relating 34 to water permitting and administration. 35 -6- LSB 6696YC (3) 91 sb/js 6/ 6