House File 2771 - Reprinted HOUSE FILE 2771 BY COMMITTEE ON APPROPRIATIONS (SUCCESSOR TO HSB 772) (As Amended and Passed by the House May 1, 2026 ) A BILL FOR An Act relating to and making appropriations involving state 1 government entities associated with agriculture, natural 2 resources, and environmental protection, and including 3 contingent effective date provisions. 4 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 5 HF 2771 (4) 91 sb/js/md
H.F. 2771 DIVISION I 1 DEPARTMENT OF AGRICULTURE AND LAND STEWARDSHIP 2 PART A 3 GENERAL APPROPRIATIONS 4 Section 1. GENERAL FUND. 5 1. There is appropriated from the general fund of the state 6 to the department of agriculture and land stewardship for the 7 fiscal year beginning July 1, 2026, and ending June 30, 2027, 8 the following amount, or so much thereof as is necessary, to be 9 used for the purposes designated: 10 For purposes of supporting the department, including its 11 divisions, for administration, regulation, and programs; for 12 salaries, support, maintenance, and miscellaneous purposes; and 13 for not more than the following full-time equivalent positions: 14 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 20,733,294 15 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . FTEs 420.00 16 2. Of the amount appropriated in subsection 1, the following 17 amount is transferred to Iowa state university of science and 18 technology to be used for the university’s midwest grape and 19 wine industry institute: 20 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 325,000 21 3. The department shall submit a report each quarter of 22 the fiscal year to the general assembly and the department 23 of management. The report must describe in detail the 24 expenditure of moneys appropriated in this section to support 25 the department’s administration, regulation, and programs. 26 Sec. 2. UNCLAIMED PARI-MUTUEL WAGERING WINNINGS —— 27 HORSE AND DOG RACING. There is appropriated from the moneys 28 available under section 99D.13 to the department of agriculture 29 and land stewardship for the fiscal year beginning July 1, 30 2026, and ending June 30, 2027, the following amount, or so 31 much thereof as is necessary, to be used for the purposes 32 designated: 33 For purposes of supporting the department’s administration 34 and enforcement of horse and dog racing law pursuant to section 35 -1- HF 2771 (4) 91 sb/js/md 1/ 27
H.F. 2771 99D.22 , including for salaries, support, maintenance, and 1 miscellaneous purposes: 2 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 305,516 3 Sec. 3. RENEWABLE FUEL INFRASTRUCTURE FUND —— MOTOR 4 FUEL INSPECTION. There is appropriated from the renewable 5 fuel infrastructure fund created in section 159A.16 to the 6 department of agriculture and land stewardship for the fiscal 7 year beginning July 1, 2026, and ending June 30, 2027, the 8 following amount, or so much thereof as is necessary, to be 9 used for the purposes designated: 10 For purposes of the inspection of motor fuel, including 11 salaries, support, maintenance, and miscellaneous purposes: 12 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 500,000 13 Sec. 4. SPECIAL APPROPRIATIONS FROM GENERAL FUND. There 14 is appropriated from the general fund of the state to the 15 department of agriculture and land stewardship for the fiscal 16 year beginning July 1, 2026, and ending June 30, 2027, the 17 following amounts, or so much thereof as is necessary, to be 18 used for the purposes designated: 19 1. DAIRY REGULATION 20 a. For purposes of performing functions pursuant to section 21 192.109 , including conducting a survey of grade “A” milk and 22 certifying the results to the secretary of agriculture: 23 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 189,196 24 b. Notwithstanding section 8.33 , moneys appropriated in 25 this subsection that remain unencumbered or unobligated at the 26 close of the fiscal year shall not revert but shall remain 27 available for expenditure for the purposes designated until the 28 close of the succeeding fiscal year. 29 2. LOCAL FOOD AND FARM PROGRAM 30 a. For purposes of supporting the local food and farm 31 program pursuant to chapter 267A : 32 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 125,000 33 b. The department shall enter into a cost-sharing agreement 34 with Iowa state university of science and technology to support 35 -2- HF 2771 (4) 91 sb/js/md 2/ 27
H.F. 2771 the local food and farm program coordinator position as part of 1 the university’s cooperative extension service in agriculture 2 and home economics pursuant to chapter 267A . 3 c. Notwithstanding section 8.33 , moneys appropriated in 4 this subsection that remain unencumbered or unobligated at the 5 close of the fiscal year shall not revert but shall remain 6 available for expenditure for the purposes designated until the 7 close of the succeeding fiscal year. 8 3. AGRICULTURAL EDUCATION 9 a. For purposes of allocating moneys to an Iowa association 10 affiliated with a national organization that promotes 11 agricultural education providing for future farmers: 12 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 150,000 13 b. Notwithstanding section 8.33 , moneys appropriated in 14 this subsection that remain unencumbered or unobligated at the 15 close of the fiscal year shall not revert but shall remain 16 available for expenditure for the purposes designated until the 17 close of the succeeding fiscal year. 18 4. FOREIGN ANIMAL DISEASES AFFLICTING LIVESTOCK 19 For deposit in the foreign animal disease preparedness and 20 response fund created in section 163.3B : 21 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 1,050,000 22 5. FARMERS WITH DISABILITIES PROGRAM 23 a. For purposes of supporting a program for farmers with 24 disabilities: 25 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 230,000 26 b. The moneys appropriated in this subsection shall be 27 used for the public purpose of providing a grant to a national 28 nonprofit organization with over 80 years of experience in 29 assisting children and adults with disabilities and special 30 needs. The moneys shall be used to support a nationally 31 recognized program that began in 1986 and has been replicated 32 in at least 30 other states, but is not available through 33 any other entity in this state, and that provides assistance 34 to farmers with disabilities in all 99 counties to allow the 35 -3- HF 2771 (4) 91 sb/js/md 3/ 27
H.F. 2771 farmers to remain in their own homes and be gainfully engaged 1 in farming through provision of agricultural worksite and home 2 modification consultations, peer support services, services 3 to families, information and referral, and equipment loan 4 services. 5 c. Notwithstanding section 8.33 , moneys appropriated in 6 this subsection that remain unencumbered or unobligated at the 7 close of the fiscal year shall not revert but shall remain 8 available for expenditure for the purposes designated until the 9 close of the succeeding fiscal year. 10 6. LOESS HILLS DEVELOPMENT AND CONSERVATION FUND 11 a. For deposit in the loess hills development and 12 conservation fund created pursuant to section 161D.2 : 13 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 300,000 14 b. (1) Of the amount appropriated in this subsection, 15 $260,000 shall be allocated to the fund’s hungry canyons 16 account. 17 (2) Not more than 10 percent of the moneys allocated in this 18 paragraph may be used for administrative costs. 19 c. (1) Of the amount appropriated in this subsection, 20 $40,000 shall be allocated to the fund’s loess hills alliance 21 account. 22 (2) Not more than 10 percent of the moneys allocated in this 23 paragraph may be used for administrative costs. 24 7. SOUTHERN IOWA DEVELOPMENT AND CONSERVATION FUND 25 a. For deposit in the southern Iowa development and 26 conservation fund created pursuant to section 161D.12 : 27 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 100,000 28 b. Not more than 10 percent of the moneys appropriated in 29 this subsection may be used for administrative costs. 30 8. GRAIN REGULATION 31 For the administration and enforcement of chapters 203 32 and 203C , including salaries, support, maintenance, and 33 miscellaneous purposes: 34 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 350,000 35 -4- HF 2771 (4) 91 sb/js/md 4/ 27
H.F. 2771 9. CHOOSE IOWA FUND 1 a. For deposit in the choose Iowa fund created in section 2 187.201 : 3 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 2,113,000 4 b. (1) Of the amount appropriated in this subsection, 5 the department shall use at least $500,000 to support the 6 value-added agricultural grant program created in section 7 187.321 . 8 (2) Of the amount appropriated in this subsection, the 9 department may use up to $813,000 to support the choose Iowa 10 promotional program as provided in chapter 187, subchapter III, 11 part 1 . 12 (3) Of the amount appropriated in this subsection, the 13 department shall use at least $500,000 to support the dairy 14 innovation and revitalization program created in section 15 187.311 . 16 c. The department may increase or decrease the amount of 17 moneys used to support a program described in paragraph “b” 18 based on the amount of moneys awarded to persons participating 19 in the program. The department shall publish a notice of the 20 department’s action to increase or decrease the amount on the 21 department’s internet site where the programs are advertised at 22 least thirty days prior to the day that the department takes 23 such action. 24 10. CHOOSE IOWA FOOD BANK PURCHASING PROGRAM 25 a. For purposes of supporting the choose Iowa food 26 bank purchasing program to assist eligible participants in 27 purchasing qualified food products pursuant to section 187.331 : 28 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 200,000 29 b. Notwithstanding section 8.33 , moneys appropriated in 30 this subsection that remain unencumbered or unobligated at the 31 close of the fiscal year shall not revert but shall remain 32 available for expenditure for the purposes designated until the 33 close of the succeeding fiscal year. 34 PART B 35 -5- HF 2771 (4) 91 sb/js/md 5/ 27
H.F. 2771 CONTINGENT APPROPRIATIONS 1 Sec. 5. CHOOSE IOWA SCHOOL PURCHASING PROGRAM. 2 1. There is appropriated from the general fund of the state 3 to the department of agriculture and land stewardship for the 4 fiscal year beginning July 1, 2026, and ending June 30, 2027, 5 the following amount, or so much thereof as is necessary, to be 6 used for the purposes designated: 7 For purposes of supporting the choose Iowa school purchasing 8 program to assist eligible schools and school districts in 9 purchasing qualified food products pursuant to section 187.307: 10 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 200,000 11 2. Notwithstanding section 8.33, moneys appropriated in 12 this section that remain unencumbered or unobligated at the 13 close of the fiscal year shall not revert but shall remain 14 available for expenditure for the purposes designated until the 15 close of the succeeding fiscal year. 16 Sec. 6. CONTINGENT EFFECTIVE DATE. This part of this 17 division of this Act takes effect July 1, 2026, if 2026 Iowa 18 Acts, House File 2748, or successor legislation, is enacted. 19 DIVISION II 20 DEPARTMENT OF NATURAL RESOURCES 21 Sec. 7. GENERAL FUND. 22 1. There is appropriated from the general fund of the state 23 to the department of natural resources for the fiscal year 24 beginning July 1, 2026, and ending June 30, 2027, the following 25 amount, or so much thereof as is necessary, to be used for the 26 purposes designated: 27 For purposes of supporting the department, including its 28 divisions, for administration, regulation, and programs; for 29 salaries, support, maintenance, and miscellaneous purposes; and 30 for not more than the following full-time equivalent positions: 31 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 12,816,738 32 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . FTEs 1,145.95 33 2. Of the number of full-time equivalent positions 34 authorized to the department pursuant to subsection 1, 50.00 35 -6- HF 2771 (4) 91 sb/js/md 6/ 27
H.F. 2771 full-time equivalent positions shall be allocated by the 1 department for seasonal employees for purposes of providing 2 maintenance, upkeep, and sanitary services at state parks. 3 This subsection shall not impact conservation officer, park 4 ranger, or park manager positions within the department. 5 3. The department shall submit a report each quarter of 6 the fiscal year to the general assembly and the department of 7 management. The report must describe in detail the expenditure 8 of moneys appropriated under this section to support the 9 department’s administration, regulation, and programs. 10 Sec. 8. STATE FISH AND GAME PROTECTION FUND —— REGULATION 11 AND ADVANCEMENT OF OUTDOOR ACTIVITIES. 12 1. There is appropriated from the state fish and game 13 protection fund created pursuant to section 456A.17 to the 14 department of natural resources for the fiscal year beginning 15 July 1, 2026, and ending June 30, 2027, the following amount, 16 or so much thereof as is necessary, to be used for the purposes 17 designated: 18 For purposes of supporting the regulation or advancement of 19 hunting, fishing, or trapping, or the protection, propagation, 20 restoration, management, or harvest of fish or wildlife, 21 including for administration, regulation, law enforcement, and 22 programs; and for salaries, support, maintenance, equipment, 23 and miscellaneous purposes: 24 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 53,095,606 25 2. Notwithstanding section 455A.10 , the department may use 26 the unappropriated balance remaining in the state fish and game 27 protection fund to provide for the funding of health and life 28 insurance premium payments from unused sick leave balances 29 of conservation peace officers employed in a protection 30 occupation, as described in section 97B.49B , who retire. 31 3. Notwithstanding section 455A.10 , the department may 32 use the unappropriated balance remaining in the state fish 33 and game protection fund for the fiscal year beginning July 34 1, 2026, and ending June 30, 2027, as is necessary to fund 35 -7- HF 2771 (4) 91 sb/js/md 7/ 27
H.F. 2771 salary adjustments for departmental employees for which the 1 general assembly has made an operating budget appropriation in 2 subsection 1. 3 Sec. 9. GROUNDWATER PROTECTION FUND —— WATER QUALITY. There 4 is appropriated from the groundwater protection fund created 5 in section 455E.11 to the department of natural resources for 6 the fiscal year beginning July 1, 2026, and ending June 30, 7 2027, from those moneys that are not allocated pursuant to 8 that section, the following amount, or so much thereof as is 9 necessary, to be used for the purposes designated: 10 For purposes of supporting the department’s protection 11 of the state’s groundwater, including for administration, 12 regulation, and programs, and for salaries, support, 13 maintenance, equipment, and miscellaneous purposes: 14 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 3,455,850 15 Sec. 10. GROUNDWATER PROTECTION FUND —— INTEREST AND 16 EARNINGS —— WATER QUALITY. 17 1. There is appropriated from interest and earnings on 18 moneys in the groundwater protection fund created in section 19 455E.11 and accounts therein, as described in section 455E.11, 20 subsection 1, paragraph “a”, to the department of natural 21 resources for the fiscal year beginning July 1, 2026, and 22 ending June 30, 2027, the following amount, or so much thereof 23 as is necessary, to be used for the purposes designated: 24 For purposes of supporting the department’s protection 25 of the state’s groundwater, including for administration, 26 regulation, and programs, and for salaries, support, 27 maintenance, equipment, and miscellaneous purposes: 28 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 176,150 29 2. Notwithstanding subsection 1, the amount appropriated 30 in this section shall not exceed the total amount of interest 31 and earnings on moneys in the groundwater protection fund and 32 accounts therein accrued during the fiscal year beginning July 33 1, 2026. In addition, the amount appropriated in this section 34 shall only be made available after the maximum amount of such 35 -8- HF 2771 (4) 91 sb/js/md 8/ 27
H.F. 2771 interest and earnings appropriated in this Act to the state 1 university of Iowa is made available to the university. 2 Sec. 11. SPECIAL SNOWMOBILE FUND —— SNOWMOBILE 3 PROGRAM. There is appropriated from the special snowmobile 4 fund created under section 321G.7 to the department of natural 5 resources for the fiscal year beginning July 1, 2026, and 6 ending June 30, 2027, the following amount, or so much thereof 7 as is necessary, to be used for the purposes designated: 8 For purposes of administering and enforcing the state 9 snowmobile programs: 10 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 100,000 11 Sec. 12. SPECIAL APPROPRIATIONS FROM GENERAL FUND. There 12 is appropriated from the general fund of the state to the 13 department of natural resources for the fiscal year beginning 14 July 1, 2026, and ending June 30, 2027, the following amounts, 15 or so much thereof as is necessary, to be used for the purposes 16 designated: 17 1. FLOODPLAIN MANAGEMENT AND DAM SAFETY 18 a. For purposes of supporting floodplain management and dam 19 safety: 20 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 1,510,000 21 b. Of the amount appropriated in this subsection, up to 22 $400,000 may be used by the department to acquire or install 23 stream gages for purposes of tracking and predicting flood 24 events and for compiling necessary data to improve flood 25 frequency analysis. 26 c. Notwithstanding section 8.33 , moneys appropriated in 27 this subsection that remain unencumbered or unobligated at the 28 close of the fiscal year shall not revert but shall remain 29 available for expenditure for the purposes designated until the 30 close of the succeeding fiscal year. 31 2. FORESTRY HEALTH MANAGEMENT 32 a. For purposes of providing for forestry health management 33 programs: 34 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 525,000 35 -9- HF 2771 (4) 91 sb/js/md 9/ 27
H.F. 2771 b. Notwithstanding section 8.33 , moneys appropriated in 1 this subsection that remain unencumbered or unobligated at the 2 close of the fiscal year shall not revert but shall remain 3 available for expenditure for the purposes designated until the 4 close of the succeeding fiscal year. 5 3. STATE PARK OPERATIONS 6 For supporting operations at state parks, including 7 maintenance and repair of grounds and facilities: 8 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 1,000,000 9 4. STATE PARK MAINTENANCE 10 For structural and infrastructural repairs in state parks: 11 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 300,000 12 DIVISION III 13 IOWA STATE UNIVERSITY 14 Sec. 13. SPECIAL APPROPRIATIONS FROM GENERAL FUND. There 15 is appropriated from the general fund of the state to Iowa 16 state university of science and technology for the fiscal year 17 beginning July 1, 2026, and ending June 30, 2027, the following 18 amounts, or so much thereof as is necessary, to be used for the 19 purposes designated: 20 1. VETERINARY DIAGNOSTIC LABORATORY —— OPERATION 21 a. For purposes of supporting the college of veterinary 22 medicine for the operation of the veterinary diagnostic 23 laboratory, and for not more than the following full-time 24 equivalent positions: 25 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 4,799,898 26 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . FTEs 51.00 27 b. (1) Iowa state university of science and technology 28 shall not reduce the amount that it allocates to support the 29 college of veterinary medicine from any other source due to the 30 appropriation made in this subsection. 31 (2) Subparagraph (1) does not apply to a reduction made 32 to support the college of veterinary medicine if the same 33 percentage of reduction imposed on the college of veterinary 34 medicine is also imposed on all of Iowa state university of 35 -10- HF 2771 (4) 91 sb/js/md 10/ 27
H.F. 2771 science and technology’s budget units. 1 2. VETERINARY DIAGNOSTIC LABORATORY —— TRANSITION TO 2 REFURBISHED FACILITY. 3 To assist the college of veterinary medicine veterinary 4 diagnostic laboratory in installing and moving equipment into 5 its refurbished facility: 6 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 122,000 7 3. MANAGEMENT OF PRIVATE FORESTS 8 a. For purposes of supporting the Iowa cooperative 9 extension service in agriculture and home economics in 10 providing technical support to landowners and loggers regarding 11 the management of private forests in northeast Iowa, and for 12 not more than the following full-time equivalent positions: 13 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 150,000 14 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . FTEs 1.00 15 b. The department of natural resources shall cooperate with 16 the Iowa cooperative extension service in agriculture and home 17 economics in administering this subsection. 18 4. LIVESTOCK DISEASE RESEARCH 19 a. For deposit in the livestock disease research fund 20 created in section 267.8 : 21 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 291,390 22 b. Moneys appropriated under this subsection shall be used 23 by Iowa state university of science and technology to support 24 animal disease research in areas of importance to livestock 25 producers. 26 Sec. 14. IOWA NUTRIENT RESEARCH FUND —— VETERINARY 27 DIAGNOSTIC LABORATORY. Notwithstanding section 466B.46 , there 28 is appropriated from the Iowa nutrient research fund created 29 in section 466B.46 to Iowa state university of science and 30 technology for the fiscal year beginning July 1, 2026, and 31 ending June 30, 2027, the following amount, or so much thereof 32 as is necessary, to be used for the purposes designated: 33 For purposes of supporting the college of veterinary 34 medicine for the operation of the veterinary diagnostic 35 -11- HF 2771 (4) 91 sb/js/md 11/ 27
H.F. 2771 laboratory: 1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 120,000 2 DIVISION IV 3 STATE UNIVERSITY OF IOWA 4 Sec. 15. IOWA’S CENTER FOR AGRICULTURAL SAFETY AND HEALTH 5 (I-CASH). 6 1. There is appropriated from the general fund of the state 7 to the state university of Iowa for the fiscal year beginning 8 July 1, 2026, and ending June 30, 2027, the following amount, 9 or so much thereof as is necessary, to be used for the purposes 10 designated: 11 For supporting the operations of Iowa’s center for 12 agricultural safety and health, as part of the university’s 13 college of public health, and in cooperation with the 14 department of agriculture and land stewardship, to anticipate, 15 recognize, and prevent occupational illness and injury among 16 members of the agricultural community: 17 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 128,154 18 2. a. As a condition of the appropriation made in 19 subsection 1, the state university of Iowa shall retain the 20 director of Iowa’s center for agricultural safety and health 21 employed on the effective date of this division of this Act for 22 at least the same number of hours for the fiscal year beginning 23 July 1, 2026, as worked by the director during the fiscal year 24 beginning July 1, 2025. 25 b. As a condition of the appropriation made in subsection 26 1, the state university of Iowa shall not reduce the amount 27 allocated to support Iowa’s center for agricultural safety and 28 health from any other source due to the appropriation made in 29 subsection 1. 30 3. If moneys appropriated in subsection 1 revert as required 31 pursuant to section 8.33 , the state university of Iowa shall 32 transfer to the general fund of the state from any otherwise 33 unencumbered or unobligated moneys from any other general 34 fund appropriation or from any moneys available from other 35 -12- HF 2771 (4) 91 sb/js/md 12/ 27
H.F. 2771 funding sources an amount equal to the amount appropriated in 1 subsection 1 less any amount that reverted to the general fund 2 of the state pursuant to section 8.33 . 3 Sec. 16. IOWA GEOLOGICAL SURVEY —— GROUNDWATER PLANNING AND 4 RESOURCE ASSESSMENT PROJECT. 5 1. There is appropriated from the general fund of the state 6 to the state university of Iowa for the fiscal year beginning 7 July 1, 2026, and ending June 30, 2027, the following amount, 8 or so much thereof as is necessary, to be used for the purposes 9 designated: 10 For purposes of supporting a groundwater planning and 11 resource assessment project to be administered by the Iowa 12 geological survey of the state created pursuant to section 13 456.1 : 14 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 122,000 15 2. The moneys appropriated in subsection 1 shall be used 16 by the Iowa geological survey to map and assess the condition 17 of this state’s aquifers. The Iowa geological survey may 18 measure the volume of groundwater that is available for various 19 uses, the current and predicted allocations of groundwater to 20 support those uses, the recharge rate for the aquifers, and 21 the development of models for budgeting this state’s water 22 resources. 23 3. Notwithstanding section 8.33 , moneys appropriated in 24 subsection 1 that remain unencumbered or unobligated at the 25 close of the fiscal year shall not revert but shall remain 26 available for expenditure for the purposes designated in 27 subsection 1. 28 Sec. 17. GROUNDWATER PROTECTION FUND —— IIHR —— 29 HYDROSCIENCE AND ENGINEERING —— IOWA WATER QUALITY INFORMATION 30 SYSTEM (IWQIS) —— IOWA GEOLOGICAL SURVEY. 31 1. There is appropriated from interest and earnings on 32 moneys in the groundwater protection fund created in section 33 455E.11 and accounts therein, as described in section 455E.11, 34 subsection 1, paragraph “a”, to the state university of Iowa 35 -13- HF 2771 (4) 91 sb/js/md 13/ 27
H.F. 2771 for the fiscal year beginning July 1, 2026, and ending June 1 30, 2027, the following amounts, or so much thereof as is 2 necessary, to be used for the purposes designated, in the 3 following order of priority: 4 a. To support the Iowa water quality information system as 5 administered by the IIHR —— hydroscience and engineering within 6 the college of engineering of the state university of Iowa: 7 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 300,000 8 b. (1) To support a groundwater planning and resource 9 assessment project to be administered by the Iowa geological 10 survey of the state: 11 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 78,000 12 (2) Moneys appropriated in this paragraph shall be used 13 by the Iowa geological survey to map and assess the condition 14 of this state’s aquifers. The Iowa geological survey may 15 measure the volume of groundwater that is available for various 16 uses, the current and predicted allocations of groundwater to 17 support these uses, the recharge rate for the aquifers, and 18 the development of models for budgeting this state’s water 19 resources. 20 2. Notwithstanding subsection 1, the amount appropriated 21 in this section shall not exceed the total amount of interest 22 and earnings on moneys in the groundwater protection fund and 23 accounts therein accrued during the fiscal year beginning July 24 1, 2026. 25 DIVISION V 26 ENVIRONMENT FIRST FUND —— GENERAL APPROPRIATIONS 27 Sec. 18. DEPARTMENT OF AGRICULTURE AND LAND 28 STEWARDSHIP. There is appropriated from the environment first 29 fund created in section 8.57A to the department of agriculture 30 and land stewardship for the fiscal year beginning July 1, 31 2026, and ending June 30, 2027, the following amounts, or so 32 much thereof as is necessary, to be used for the purposes 33 designated: 34 1. CONSERVATION RESERVE ENHANCEMENT PROGRAM (CREP) 35 -14- HF 2771 (4) 91 sb/js/md 14/ 27
H.F. 2771 a. For the conservation reserve enhancement program to 1 restore and construct wetlands for the purposes of intercepting 2 tile line runoff, reducing nutrient loss, improving water 3 quality, and enhancing agricultural production practices: 4 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 1,000,000 5 b. Not more than 10 percent of the moneys appropriated 6 in paragraph “a” may be used for costs of administration and 7 implementation of soil and water conservation practices. 8 c. Notwithstanding section 8.57A, subsection 3, or any 9 other provision of law to the contrary, the department may use 10 moneys appropriated in this subsection, in combination with 11 other appropriate environment first fund appropriations, for 12 cost sharing to match United States department of agriculture, 13 natural resources conservation service, wetlands reserve 14 enhancement program (WREP) funding available to Iowa. 15 2. WATERSHED PROTECTION 16 a. For continuation of a program that provides 17 multiobjective resource protections for flood control, water 18 quality, erosion control, and natural resource conservation: 19 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 900,000 20 b. Not more than 10 percent of the moneys appropriated 21 in paragraph “a” may be used for costs of administration and 22 implementation of soil and water conservation practices. 23 3. CONSERVATION BUFFER STRIP PROGRAM 24 a. To encourage and assist farmers to establish and maintain 25 conservation buffer strip practices and to work with them to 26 enhance their revegetation efforts to improve water quality and 27 habitat: 28 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 900,000 29 b. Not more than 10 percent of the moneys appropriated 30 in paragraph “a” may be used for costs of administration and 31 implementation of soil and water conservation practices. 32 4. SOIL AND WATER CONSERVATION 33 a. For use by the department in providing for soil and water 34 conservation: 35 -15- HF 2771 (4) 91 sb/js/md 15/ 27
H.F. 2771 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 8,325,000 1 b. (1) Of the amount appropriated in paragraph “a”, for 2 transfer to the hungry canyons account of the loess hills 3 development and conservation fund created in section 161D.2 : 4 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 140,000 5 (2) Not more than 10 percent of the moneys transferred in 6 subparagraph (1) may be used for administrative costs. 7 c. Of the remaining amount appropriated in paragraph “a”, 8 for use by the department in providing for soil and water 9 conservation administration, the conservation of soil and 10 water resources, or the support of soil and water conservation 11 districts: 12 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 8,185,000 13 d. Of the amount appropriated in paragraph “c” that the 14 department allocates to a soil and water conservation district, 15 the first $15,000 may be expended by the district for the 16 purpose of providing financial incentives under section 161A.73 17 to establish management practices for the control of soil 18 erosion on land that is row-cropped, including but not limited 19 to nontill planting, ridge-till planting, and contouring 20 strip-cropping. Of any remaining amount of that appropriation 21 allocated by the department to a district, 30 percent may be 22 expended by the district for that same purpose. 23 e. Not more than 5 percent of the moneys appropriated in 24 paragraph “c” may be allocated for cost sharing to address 25 complaints filed under section 161A.47 . 26 f. Of the moneys appropriated in paragraph “c”, 5 percent 27 shall be allocated for financial incentives to establish 28 practices to protect watersheds above publicly owned lakes of 29 the state from soil erosion and sediment as provided in section 30 161A.73 . 31 g. The department’s division of soil conservation and 32 water quality may allocate moneys appropriated in paragraph 33 “c” to conduct research and demonstration projects to promote 34 conservation tillage and nonpoint source pollution control 35 -16- HF 2771 (4) 91 sb/js/md 16/ 27
H.F. 2771 practices. 1 h. The allocation of moneys as financial incentives as 2 provided in section 161A.73 may be used in combination with 3 moneys allocated by the department of natural resources. 4 i. Not more than 15 percent of the moneys appropriated 5 in paragraph “c” may be used for costs of administration and 6 implementation of soil and water conservation practices. 7 5. SOIL AND WATER CONSERVATION —— ADMINISTRATION 8 a. For use by the department for costs of administration and 9 implementation of soil and water conservation practices: 10 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 3,800,000 11 b. Of the moneys appropriated in paragraph “a”, $150,000 12 is allocated to support field staff providing technical 13 assistance. 14 Sec. 19. DEPARTMENT OF NATURAL RESOURCES. There is 15 appropriated from the environment first fund created in section 16 8.57A to the department of natural resources for the fiscal 17 year beginning July 1, 2026, and ending June 30, 2027, the 18 following amounts, or so much thereof as is necessary, to be 19 used for the purposes designated: 20 1. STATE PARK MAINTENANCE AND OPERATIONS 21 For regular maintenance and operations of state parks and 22 staff time associated with these activities: 23 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 6,235,000 24 2. GEOGRAPHIC INFORMATION SYSTEM (GIS) 25 To provide local watershed managers with geographic 26 information system data for their use in developing, 27 monitoring, and displaying results of their watershed work: 28 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 195,000 29 3. WATER QUALITY MONITORING 30 For continuing the establishment and operation of water 31 quality monitoring stations: 32 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 2,955,000 33 4. PUBLIC WATER SUPPLY SYSTEM ACCOUNT 34 For deposit in the public water supply system account of the 35 -17- HF 2771 (4) 91 sb/js/md 17/ 27
H.F. 2771 water quality protection fund created in section 455B.183A : 1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 500,000 2 5. REGULATION OF ANIMAL FEEDING OPERATIONS 3 For the regulation of animal feeding operations, including 4 as provided for in chapters 459 , 459A , and 459B : 5 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 1,320,000 6 6. FLOODPLAIN MANAGEMENT AND DAM SAFETY 7 For supporting floodplain management and dam safety: 8 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 375,000 9 7. AMBIENT AIR QUALITY 10 For the abatement, control, and prevention of ambient 11 air pollution in this state, including measures as necessary 12 to assure attainment and maintenance of ambient air quality 13 standards from particulate matter: 14 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 425,000 15 Sec. 20. STATE UNIVERSITY OF IOWA —— IOWA GEOLOGICAL 16 SURVEY. There is appropriated from the environment first 17 fund created in section 8.57A to the state university of Iowa 18 for the fiscal year beginning July 1, 2026, and ending June 19 30, 2027, the following amounts, or so much thereof as is 20 necessary, to be used for the purposes designated: 21 1. IOWA GEOLOGICAL SURVEY OPERATIONS 22 For purposes of supporting the operations of the Iowa 23 geological survey of the state, including but not limited 24 to providing analysis; data maintenance, collection, and 25 compilation; investigative programs; and information for water 26 supply development and protection: 27 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 200,000 28 2. WATER RESOURCE MANAGEMENT 29 For purposes of supporting the Iowa geological survey in 30 measuring, assessing, and evaluating the quantity of water 31 sources in this state and assisting the department of natural 32 resources in regulating water quantity as provided in chapter 33 455B, subchapter III, part 4 , pursuant to sections 455B.262B 34 and 456.14 : 35 -18- HF 2771 (4) 91 sb/js/md 18/ 27
H.F. 2771 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 495,000 1 Sec. 21. REVERSION. 2 1. a. Except as provided in paragraph “b”, and 3 notwithstanding section 8.33 , moneys appropriated for the 4 fiscal year beginning July 1, 2026, in this division of this 5 Act that remain unencumbered or unobligated at the close of 6 the fiscal year shall not revert but shall remain available 7 for expenditure for the purposes designated until the close of 8 the succeeding fiscal year, or until the project for which the 9 appropriation was made is completed, whichever is earlier. 10 b. Notwithstanding section 8.33 , moneys appropriated for 11 the fiscal year beginning July 1, 2026, in this division of 12 this Act to the department of agriculture and land stewardship 13 to provide financial assistance for the establishment of 14 permanent soil and water conservation practices that remain 15 unencumbered or unobligated at the close of the fiscal year 16 shall not revert but shall remain available for expenditure 17 for the purposes designated until the close of the fiscal year 18 beginning July 1, 2029. 19 2. Subsection 1 does not apply to moneys transferred 20 pursuant to this division of this Act to the loess hills 21 development and conservation fund created in section 161D.2 , 22 which shall not revert as provided in that section. 23 DIVISION VI 24 ENVIRONMENT FIRST FUND —— SPECIAL APPROPRIATIONS 25 Sec. 22. WATER QUALITY INITIATIVE —— DEPARTMENT OF 26 AGRICULTURE AND LAND STEWARDSHIP. 27 1. There is appropriated from the environment first fund 28 created in section 8.57A to the department of agriculture 29 and land stewardship for the fiscal year beginning July 1, 30 2026, and ending June 30, 2027, the following amount, or so 31 much thereof as is necessary, to be used for the purposes 32 designated: 33 For deposit in the water quality initiative fund created in 34 section 466B.45 , for purposes of supporting the water quality 35 -19- HF 2771 (4) 91 sb/js/md 19/ 27
H.F. 2771 initiative administered by the division of soil conservation 1 and water quality as provided in section 466B.42 , including 2 salaries, support, maintenance, and miscellaneous purposes: 3 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 2,375,000 4 2. a. The moneys appropriated in subsection 1 shall be 5 used to support projects in subwatersheds as designated by the 6 division that are part of high-priority watersheds identified 7 by the water resources coordinating council established 8 pursuant to section 466B.3 . 9 b. The moneys appropriated in subsection 1 shall be used to 10 support projects in watersheds generally, including regional 11 watersheds, as designated by the division and high-priority 12 watersheds identified by the water resources coordinating 13 council established pursuant to section 466B.3 . 14 3. In supporting projects in subwatersheds and watersheds 15 as provided in subsection 2, all of the following apply: 16 a. The demonstration projects shall utilize water quality 17 practices as described in the Iowa nutrient reduction strategy 18 as defined in section 455B.171 . 19 b. The division shall implement demonstration projects as 20 provided in paragraph “a” by providing for participation by 21 persons who hold a legal interest in agricultural land used in 22 farming. To every extent practical, the division shall provide 23 for collaborative participation by such persons who hold a 24 legal interest in agricultural land located within the same 25 subwatershed. 26 c. The division shall implement a demonstration project on 27 a cost-share basis as determined by the division. However, 28 except for edge-of-field practices, the state’s share of the 29 amount shall not exceed 50 percent of the estimated cost of 30 establishing the practice as determined by the division or 31 50 percent of the actual cost of establishing the practice, 32 whichever is less. 33 d. The demonstration projects shall be used to educate other 34 persons about the feasibility and value of establishing similar 35 -20- HF 2771 (4) 91 sb/js/md 20/ 27
H.F. 2771 water quality practices. The division shall promote field day 1 events for purposes of allowing interested persons to establish 2 water quality practices on their agricultural land. 3 e. The division shall conduct water quality evaluations 4 within supported subwatersheds. Within a reasonable period 5 after accumulating information from such evaluations, the 6 division shall create an aggregated database of water quality 7 practices. Any information identifying a person holding a 8 legal interest in agricultural land or specific agricultural 9 land shall be a confidential record under section 22.7 . 10 4. The moneys appropriated in subsection 1 shall be used 11 to support education and outreach in a manner that encourages 12 persons who hold a legal interest in agricultural land used for 13 farming to implement water quality practices, including the 14 establishment of such practices in watersheds generally, and 15 not limited to subwatersheds or high-priority watersheds. 16 5. The moneys appropriated in subsection 1 may be used 17 to contract with persons to coordinate the implementation of 18 efforts provided in this section. 19 6. The moneys appropriated in subsection 1 may be used by 20 the department to support urban soil and water conservation 21 efforts, which may include but are not limited to management 22 practices related to bioretention, landscaping, the use of 23 permeable or pervious pavement, and soil quality restoration. 24 The moneys shall be allocated on a cost-share basis as provided 25 in chapter 161A . 26 7. Notwithstanding any other provision of law to the 27 contrary, the department may use moneys appropriated in 28 subsection 1 to carry out the provisions of this section on a 29 cost-share basis in combination with other moneys available to 30 the department from a state or federal source. 31 8. Not more than 10 percent of the moneys appropriated in 32 this section may be used to pay for the costs of administering 33 and implementing the water quality initiative by the 34 department’s division of soil conservation and water quality as 35 -21- HF 2771 (4) 91 sb/js/md 21/ 27
H.F. 2771 provided in section 466B.42 and this section. 1 DIVISION VII 2 RESOURCES ENHANCEMENT AND PROTECTION —— OPEN SPACES 3 Sec. 23. REAP —— IN LIEU OF GENERAL FUND APPROPRIATION. In 4 lieu of the standing appropriation in section 455A.18 , there is 5 appropriated from the environment first fund created in section 6 8.57A to the Iowa resources enhancement and protection fund 7 for the fiscal year beginning July 1, 2026, and ending June 8 30, 2027, the following amount, to be allocated as provided in 9 section 455A.19 : 10 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 12,000,000 11 Sec. 24. REAP —— OPEN SPACES ACCOUNT —— STATE PARK 12 MAINTENANCE, OPERATIONS, AND FACILITY REFURBISHMENT. 13 Notwithstanding section 455A.19, subsection 1, paragraph “a”, 14 subparagraph (1), of the moneys allocated to the open spaces 15 account of the Iowa resources enhancement and protection fund, 16 up to $1,000,000 may be used by the department of natural 17 resources for state park maintenance, development, operations, 18 and facility refurbishment for the fiscal year beginning July 19 1, 2026, and ending June 30, 2027. 20 DIVISION VIII 21 ANIMAL DISEASE PREPAREDNESS AND RESPONSE 22 Sec. 25. IOWA ANIMAL DISEASE PREVENTION FUND —— DEPARTMENT 23 OF AGRICULTURE AND LAND STEWARDSHIP. 24 1. There is appropriated from the Iowa animal disease 25 prevention fund created in section 165.18 to the department of 26 agriculture and land stewardship for the fiscal year beginning 27 July 1, 2026, and ending June 30, 2027, the following amounts, 28 or so much thereof as is necessary, to be used for the purposes 29 designated: 30 a. For purposes of purchasing and maintaining equipment 31 to further the implementation of the foreign animal disease 32 preparedness and response strategy developed under section 33 163.3C : 34 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 150,000 35 -22- HF 2771 (4) 91 sb/js/md 22/ 27
H.F. 2771 b. For purposes of assisting in the development of vaccines 1 against foreign animal diseases by a company based in Iowa that 2 develops livestock and other animal vaccines: 3 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 100,000 4 c. For deposit in the foreign animal disease preparedness 5 and response fund created in section 163.3B : 6 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 200,000 7 d. For purposes of upgrading information technology 8 resources used by the department: 9 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 160,000 10 2. Notwithstanding section 8.33 , moneys appropriated in 11 this section that remain unencumbered or unobligated at the 12 close of the fiscal year shall not revert but shall remain 13 available for expenditure for the purposes designated until the 14 close of the succeeding fiscal year. 15 DIVISION IX 16 WATER QUALITY FUNDING 17 Sec. 26. REBUILD IOWA INFRASTRUCTURE FUND —— SPECIAL 18 APPROPRIATIONS. There is appropriated from the rebuild Iowa 19 infrastructure fund created in section 8.57 to the Iowa finance 20 authority for the fiscal year beginning July 1, 2026, and 21 ending June 30, 2027, the following amounts, or so much thereof 22 as is necessary, to be used for the purposes designated: 23 1. a. For deposit in the water quality financial assistance 24 fund created in section 16.134A for the purposes of supporting 25 the wastewater and drinking water treatment financial 26 assistance program created in section 16.134: 27 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 8,000,000 28 b. The moneys appropriated in paragraph “a” shall be used to 29 provide financial assistance, including grants, for projects 30 designed to improve water quality by addressing point and 31 nonpoint sources, with a higher prioritization provided to 32 collaborative effort. 33 2. For deposit in the rural Iowa infrastructure bank program 34 fund created in section 16.240, as enacted in this division of 35 -23- HF 2771 (4) 91 sb/js/md 23/ 27
H.F. 2771 this Act: 1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 10,000,000 2 Sec. 27. Section 16.134, subsection 4, paragraph i, Code 3 2026, is amended to read as follows: 4 i. An applicant shall not receive a grant that exceeds five 5 hundred thousand one million dollars. 6 Sec. 28. Section 16.134A, subsection 3, Code 2026, is 7 amended to read as follows: 8 3. For Except for moneys deposited in the fund for 9 a specified purpose, for each fiscal year in the period 10 beginning July 1, 2018 2026 , and ending June 30, 2039, there 11 is appropriated the following percentages of amounts from the 12 balance of the fund for all of the following purposes: 13 a. Forty percent to the Iowa finance authority to support 14 the wastewater and drinking water treatment financial 15 assistance program created in section 16.134 Five hundred 16 thousand dollars to the department of natural resources for 17 the purposes of water quality monitoring, including, at the 18 department’s discretion, continuous monitoring . 19 b. Forty-five percent to the Iowa finance authority to be 20 credited to the water quality financing program fund created 21 pursuant to section 16.153 . The following percentages of moneys 22 remaining in the fund for the following purposes: 23 (1) Sixty-five percent to the Iowa finance authority to 24 support the wastewater and drinking water treatment financial 25 assistance program created in section 16.134. 26 c. (2) Fifteen percent to the division of soil conservation 27 and water quality of the department of agriculture and land 28 stewardship to support the water quality urban infrastructure 29 program created in section 466B.44 . 30 (3) Twenty percent to the division of soil conservation 31 and water quality of the department of agriculture and land 32 stewardship for deposit in the water quality initiative fund 33 created in section 466B.45 to provide technical assistance 34 and support conservation practices, including but not limited 35 -24- HF 2771 (4) 91 sb/js/md 24/ 27
H.F. 2771 to buffers, cover crops, edge-of-field structures, grazing 1 systems, and working lands, in counties located in the 2 following United States geological survey hydrologic unit code 3 8 watersheds: 4 (a) Boone. 5 (b) East fork Des Moines. 6 (c) Middle Des Moines. 7 (d) North Raccoon. 8 (e) South Raccoon. 9 (f) Upper Des Moines. 10 Sec. 29. Section 16.152, Code 2026, is amended by adding the 11 following new subsections: 12 NEW SUBSECTION . 5. The authority shall not initiate any 13 new loans under this part after June 30, 2026. Any loan or 14 interest payments received by the authority on or after July 15 1, 2026, shall be deposited in the water quality financial 16 assistance fund created pursuant to section 16.134A for the 17 purposes of supporting the wastewater and drinking water 18 treatment financial assistance program created in section 19 16.134. 20 NEW SUBSECTION . 6. For the fiscal year beginning July 1, 21 2026, and ending June 30, 2027, the authority shall allocate 22 a sum not to exceed twenty-five million dollars from any 23 unencumbered or unobligated moneys in the water quality 24 financing program fund to a regional water authority, with 25 membership consisting of public utilities, as defined in 26 section 476.1, rural water districts organized and existing 27 under chapter 357A, and other governmental entities, which 28 serves a population of at least six hundred thousand and 29 is headquartered in the most populous county in the state 30 based on the 2020 federal decennial census, for the purpose 31 of constructing and installing additional nutrient removal 32 technology. These moneys shall remain available for 33 expenditure until June 30, 2029. 34 NEW SUBSECTION . 7. Any unencumbered or unobligated moneys 35 -25- HF 2771 (4) 91 sb/js/md 25/ 27
H.F. 2771 in the water quality financing program fund created pursuant to 1 section 16.153 remaining after July 31, 2026, are transferred 2 to the water quality financial assistance fund created pursuant 3 to section 16.134A, to be used for purposes specified in 4 section 16.134A, subsection 3, paragraph “b” , subparagraph 5 (3). An amount equal to the amount of moneys obligated by the 6 authority prior to July 1, 2026, shall remain in the water 7 quality financing program fund. 8 NEW SUBSECTION . 8. This part is repealed on the date that 9 all loans made pursuant to this part are paid in full. The 10 authority shall notify the Iowa Code editor of this occurrence. 11 Sec. 30. NEW SECTION . 16.240 Rural Iowa infrastructure bank 12 revolving loan program —— fund. 13 1. As used in this section, “small or medium sized 14 community” means a city with a population of eleven thousand or 15 less. 16 2. The authority shall establish and administer a rural 17 Iowa infrastructure bank revolving loan program. The purpose 18 of the program is to provide loans to small or medium sized 19 communities to upgrade water or wastewater infrastructure. 20 3. a. A small or medium size community shall apply to the 21 authority for a loan under the program in a manner approved by 22 the authority. 23 b. Loan agreements may contain terms and conditions the 24 authority deems advisable, but the interest rate on any loan 25 shall not exceed one percent. 26 4. A rural Iowa infrastructure bank program fund is created 27 in the state treasury under the control of the authority and 28 consisting of moneys appropriated by the general assembly and 29 any other moneys available to and obtained or accepted by the 30 authority for placement in the fund. Moneys in the fund are 31 appropriated to the authority for the purpose of providing 32 loans to small or medium sized communities under the program 33 established in this section. Repayments of moneys loaned and 34 recaptures of loans shall be deposited in the fund. Moneys 35 -26- HF 2771 (4) 91 sb/js/md 26/ 27
H.F. 2771 in the fund are not subject to section 8.33. Notwithstanding 1 section 12C.7, interest or earnings on moneys in the fund shall 2 be credited to the fund. 3 5. The authority may adopt rules pursuant to chapter 17A to 4 administer this section. 5 Sec. 31. CODE EDITOR DIRECTIVE. The Code editor is directed 6 to designate section 16.240, as enacted by this division of 7 this Act, as chapter 16, subchapter X, part 12, entitled “Rural 8 Iowa Infrastructure Bank Revolving Loan Program”. 9 -27- HF 2771 (4) 91 sb/js/md 27/ 27