House File 2642 - Reprinted HOUSE FILE 2642 BY COMMITTEE ON NATURAL RESOURCES (SUCCESSOR TO HSB 713) (As Amended and Passed by the House March 12, 2026 ) A BILL FOR An Act relating to the use of water, including beneficial use 1 in the context of water allocation and the disposal of 2 wastewater from distillery operations. 3 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 4 HF 2642 (3) 91 sb/js/md

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 1. The department shall adopt by rule pursuant to chapter 9 17A standards for the disposal of wastewater from an on-site 10 native distillery operation. These standards shall provide for 11 but are not limited to disposal by all of the following: 12 a. By land application if all of the following apply: 13 (1) The volume of wastewater produced by the on-site native 14 distillery operation is less than one thousand five hundred 15 gallons per day. 16 (2) The application rate does not exceed thirty thousand 17 gallons per acre per year. 18 (3) The application rate does not exceed one thousand five 19 hundred gallons per acre per day. 20 (4) The standards for land application are consistent with 21 the rules for land application of septage adopted to implement 22 section 455B.172. 23 b. At a publicly owned treatment works or other wastewater 24 treatment system with the permission of the owner of the 25 treatment works. 26 c. Through a subsurface absorption system in conformance 27 with applicable regulations of the United States environmental 28 protection agency. 29 d. Through a disposal system that meets all of the following 30 requirements: 31 (1) The disposal system is located on the same site as the 32 on-site native distillery operation. 33 (2) The disposal system is constructed in conformance with a 34 permit issued by the department. 35 -1- HF 2642 (3) 91 sb/js/md 1/ 3

H.F. 2642 (3) For a disposal system that discharges wastewater 1 into a water of the United States, the system is operated in 2 conformance with a national pollutant discharge elimination 3 system permit issued by the department under section 455B.197. 4 Sec. 3. Section 455B.261, subsection 4, Code 2026, is 5 amended by striking the subsection. 6 Sec. 4. Section 455B.265, subsection 1, Code 2026, is 7 amended to read as follows: 8 1. In its consideration of applications for permits, the 9 department shall give priority in processing to persons in 10 the order that the applications are received, except where 11 when the application of this processing priority system 12 prevents the prompt approval of routine applications or 13 where when the public health, safety, or welfare will be 14 threatened by delay. If the department determines after 15 investigation that the diversion, storage, or withdrawal is 16 consistent with the principles and policies of beneficial 17 use and ensuring conservation, the department shall grant a 18 permit. The determination of beneficial use shall not be 19 based on categories of uses. An application for a permit 20 shall be approved or denied within ninety days from the date 21 that the department receives the complete application. A 22 renewal permit shall be approved or denied by the department 23 within thirty days from the date that the department receives a 24 complete application for renewal. If the applicant requests an 25 extension of the time allotted, the department may approve the 26 request to allow the applicant more time to submit additional 27 information to resolve a contested or complex application. 28 Regardless of the request in the application, and subject 29 to appeal, the director or the department may determine the 30 duration and frequency of withdrawal and the quantity of 31 water to be diverted, stored, or withdrawn pursuant to the 32 permit. Each permit granted after July 1, 1986, shall include 33 conditions requiring routine conservation practices, and 34 requiring implementation of emergency conservation measures 35 -2- HF 2642 (3) 91 sb/js/md 2/ 3

H.F. 2642 after notification by the department. 1 -3- HF 2642 (3) 91 sb/js/md 3/ 3