Bulletin 02-15-2017

Front matter not included
ARC 2938CEconomic Development Authority[261]Notice of Intended Action

Twenty-five interested persons, a governmental subdivision, an agency or association of 25 or more persons may demand an oral presentation hereon as provided in Iowa Code section 17A.4(1)“b.”

Notice is also given to the public that the Administrative Rules Review Committee may, on its own motion or on written request by any individual or group, review this proposed action under section 17A.8(6) at a regular or special meeting where the public or interested persons may be heard.

    Pursuant to the authority of Iowa Code sections 15.106A and 15.411, the Economic Development Authority hereby gives Notice of Intended Action to amend Chapter 106, “Small Business Innovation Research and Technology Transfer Outreach Program,” Iowa Administrative Code.     The proposed rule making amends the rules governing the Small Business Innovation Research and Small Business Technology Transfer Programs (SBIR/STTR). The amendments are based on changes made to Iowa Code section 15.411 by 2016 Iowa Acts, House File 2443, division III. The amendments primarily do four things: first, as required by House File 2443, raise the maximum award amount from $25,000 to $100,000 and allow the same applicant to receive more than one award; second, define the term “award”; third, strike paragraph 106.4(2)“b” to remove the requirement that the Iowa innovation corporation must develop an online platform; and fourth, revise paragraph 106.4(2)“c” to remove the requirement that the corporation must work with the program administrator at the office of intellectual property and technology transfer at Iowa State University in providing technical assistance. The proposed amendments also clarify language in the rules.     The Economic Development Authority Board approved this rule making at its meeting held on October 21, 2016.     Interested persons may submit comments on or before March 7, 2017. Comments may be submitted to Jennifer Klein, Economic Development Authority, 200 East Grand Avenue, Des Moines, Iowa 50309; telephone (515)725-3124; e-mail Jennifer.Klein@iowaeda.com.     This rule making does not have any fiscal impact to the state of Iowa.     After analysis and review of this rule making, no impact on jobs has been found.     These amendments are intended to implement Iowa Code section 15.411.     The following amendments are proposed.

    ITEM 1.    Amend subrule 106.2(2) as follows:    106.2(2)   The goals of providing this assistance are to increase the number of successful phase II small business innovation research grantand contract proposals in the state, increase the amount of such grant funds awarded in the state, stimulate subsequent investment by industry, venture capital, and other sources, and encourage businesses to commercialize promising technologies.

    ITEM 2.    Amend rule 261—106.3(15) as follows:

261—106.3(15) Definitions.  As used in this chapter, unless the context otherwise requires:        "Applicant" means a business applying to the authority for assistance under the program.        "Assistance" means technical and financial assistance available under the program.        "Authority" means the economic development authority created in Iowa Code section 15.105.        "Award" means SBIR/STTR grant and contract funds awarded by federal agencies.        "Board" means the members of the economic development authority appointed by the governor and in whom the powers of the authority are vested pursuant to Iowa Code section 15.105.        "Committee" means the technology commercialization committee established by the board pursuant to 261—Chapter 1.        "Corporation" means the Iowa innovation corporation created pursuant to Iowa Code section 15.107.        "Financial assistance" means assistance provided only from the funds, rights, and assets legally available to the authority and includes but is not limited to assistance in the form of grants, loans, forgivable loans, and royalty agreements.        "Innovative business" means the same as defined in Iowa Code section 15E.52(1)“c.”        "Program" means the small business innovation research and technology transfer outreach program established pursuant to Iowa Code section 15.411.        "SBIR/STTR" means the federal Small Business Innovation Research and Small Business Technology Transfer Programs.

    ITEM 3.    Amend rule 261—106.4(15) as follows:

261—106.4(15) Program description, application procedures, and delegation of functions.      106.4(1) General description.  The program provides technical assistance and financial assistance to businessesapplicants seeking SBIR/STTR funding. All awards of financial assistance must ultimately be approved by the board, after a recommendation by the committee, and a contractan agreement must be entered into with the authority before moneys will be disbursed.    106.4(2) Program components and activities.  The program has two primary components, a technical assistance component and a financial assistance component, both of which are intended to win moreincrease the number of phase I,and phase II, and fast track SBIR/STTR awards and fast track grants for Iowa businesses. The corporation shall be the primary provider of technical assistance to businessesapplicants and shall also work with the authority to provide financial assistance.    a.    In providing technical assistance, the corporation shall develop a pre-proposal submission component that facilitates expert peer reviews from commercial reviewers with in-depth market knowledge. The resulting reviews should provide the businessapplicant with a set of recommendations and tips for troubleshooting SBIR/STTR proposals. The corporation shall ensure that such businessesthe applicants develop and implement recommendations for their proposals based on industry best practices.    b.    The corporation shall also develop a service component that includes an online platform to provide information to regional SBIR/STTR applicants, researchers, and entrepreneurs. In connection with this platform, the corporation shall identify, promote, and assist all highly qualified commercially relevant companies that are discovered through the platform and shall connect them to other investment programs and investors in the region.    c.    b.    In providing the technical assistance described in this subrule, the corporation shall work in conjunction with the program administrator of the office of intellectual property and technology transfer at Iowa State University. The following services shall be provided as a result of this collaborationThe corporation shall provide services that include the following:    (1)   Detailed outlines and other tools to make the drafting of a proposal and other accompanying documentation less daunting.    (2)   Reviews and critiques of iterative drafts to improve the structure and narrative of both the research and the commercialization plans.    (3)   Evaluation of budgets and budget justifications to produce stronger applications and avoid “leaving money on the table.”    (4)   Assistance with the electronic registrations and the application submission process.    d.    c.    In working with the authority to provide financial assistance, the corporation shall perform the functions delegated pursuant to subrule 106.4(4).    106.4(3) Application and award procedures.  Eligible businessesapplicants may submit applications to the authority for financial assistance. To be eligible, a businessan applicant must meet the requirements in rule 261—106.6(15). The applications will receive an initial review to confirm program eligibility before being sent to the committee for a recommendation on funding. The committee will provide its recommendation to the board for a final determination on the provision of financial assistance. The board may approve, deny, or defer each application for financial assistance under the program. The board will consider applications for financial assistance on a first-come, first-served basis. If the board approves funding for a businessan applicant, the authority will prepare a required contractagreement specifying the terms and conditions under which the financial assistance is to be provided to the businessapplicant.    106.4(4) Delegation of certain administrative functions to the corporation.  The authority will delegate certain administrative functions of the program to the corporation. The functions that will be delegated are:    a.    The initial application review process, including an analysis of whether the businessapplicant meets all requirements of eligibility under the program and a recommendation on the amount of financial assistance to be provided and under what terms and conditions.    b.    The tracking and monitoring of the business’sapplicant’s SBIR/STTR application progress as well as the eventual outcome. The corporation shall report annually to the authority on the results of the program.    c.    The tracking and monitoring of contractagreement terms and conditions for applicants receiving financial assistance under the program.    d.    The provision of technical assistance as described in subrule 106.4(2).    106.4(5) Administrative functions not delegated.  The authority will retain, and not delegate, the performance of the following functions: (1) the final determination as to whether to approve, deny, or defer an award of financial assistance; (2) the disbursal of moneys provided for in an award of financial assistance; (3) the final determination as to whether there is a default in the terms of a contractan agreement entered into under the program, including all decisions regarding appropriate remedies for such a default; and (4) any other function not clearly delegated to the corporation pursuant to subrule 106.4(4).

    ITEM 4.    Amend subrule 106.5(2) as follows:    106.5(2) Individual applicant limitation.  The authority will not award more than $25,000$100,000 in financial assistance to any applicantfor any individual federal SBIR/STTR award. A business shall not receive more than one award of financial assistance under the program.

    ITEM 5.    Amend subrule 106.6(1) as follows:    106.6(1)   The businessapplicant must be an innovative business.

    ITEM 6.    Amend subrule 106.6(2) as follows:    106.6(2)   The businessapplicant must have a reasonable likelihood of receiving SBIR/STTR grant funds, must be likely to stimulate subsequent investment by industry, venture capital, and other sources, and must be likely to commercialize some promising technology.

    ITEM 7.    Amend rule 261—106.7(15) as follows:

261—106.7(15) ContractAgreement and report information required.      106.7(1) ContractAgreement required.  An applicant awarded financial assistance under the program shall enter into a contractan agreement with the authority for the receipt of such funds. The authority will include in the contractagreement all terms and conditions for receipt of the funds, including any terms recommended by the corporation. The tracking and monitoring of the contractagreement terms will be delegated to the corporation. The corporation shall provide regular reports to the authority on the progress of the applicant and on the results of the tracking and monitoring. The authority will make the final determination as to compliance with the terms of the contractagreement and as to whether and when to disburse funds to the applicant.    106.7(2) Reporting information required.  An applicant may be required to submit all information necessary for the authority to compile a report on the results of the program. The authority will include terms in the required contractagreement effectuating this requirement.
ARC 2939CEducation Department[281]Notice of Intended Action

Twenty-five interested persons, a governmental subdivision, an agency or association of 25 or more persons may demand an oral presentation hereon as provided in Iowa Code section 17A.4(1)

Notice is also given to the public that the Administrative Rules Review Committee may, on its own motion or on written request by any individual or group, review this proposed action under section 17A.8(6) at a regular or special meeting where the public or interested persons may be heard.

    Pursuant to the authority of Iowa Code section 256.7(21), the State Board of Education hereby proposes to rescind Chapter 65, “Innovative Programs for At-Risk Early Elementary Students,” and to adopt a new Chapter 65, “Programs for At-Risk Early Elementary Students,” Iowa Administrative Code.    The proposed new Chapter 65 will simplify the grant application and award process, distribute grant funds to school districts on a timeline that will allow for timely hiring and budgeting, and allow recipient school districts to spend more time on instruction and less time on preparing grant applications. New Chapter 65 will allow greater flexibility to local school districts in determining how best to provide grant-funded services at elementary school buildings with large numbers of at-risk students.    An agencywide waiver provision is provided in 281—Chapter 4.    Interested individuals may make written comments on the proposed amendment until March 7, 2017, at 4:30 p.m. Comments on the proposed amendment should be directed to Phil Wise, Administrative Rules Co-Coordinator, Iowa Department of Education, Second Floor, Grimes State Office Building, Des Moines, Iowa 50319-0146; telephone (515)281-4835; e-mail phil.wise@iowa.gov; or fax (515)242-5988.    A public hearing will be held on March 7, 2017, from 1 to 2 p.m. in the State Board Room, Second Floor, Grimes State Office Building, East 14th Street and Grand Avenue, Des Moines, Iowa, at which time persons may present their views either orally or in writing.    Any persons who intend to attend the public hearing and have special requirements, such as those related to hearing or mobility impairments, should contact the Department and advise of specific needs by calling (515)281-5295.    After analysis and review of this rule making, no impact on jobs has been found.    This amendment is intended to implement Iowa Code sections 256.7(21) and 279.51(1)“c.”    The following amendment is proposed.

    ITEM 1.    Rescind 281—Chapter 65 and adopt the following new chapter in lieu thereof: CHAPTER 65PROGRAMS FOR AT-RISK EARLY ELEMENTARY STUDENTS

281—65.1(279) Purpose.  These rules set forth procedures and conditions under which state funds shall be granted to public school districts that have elementary schools that demonstrate the greatest need for programs for at-risk students in early elementary grades.

281—65.2(279) Definitions.          "Applicant" means a public school district that applies for the at-risk early elementary school award funds.        "At-risk elementary school" means a public school attendance center serving early elementary grades that has a defined percentage of at-risk students as reported in the statewide Basic Educational Data Survey (BEDS). This is also referred to in this chapter as a “building.”        "Awardee" means an applicant designated to receive the at-risk early elementary school award funds.        "Department" means the department of education.        "Early elementary grades" means kindergarten through grade three.

281—65.3(279) Eligibility identification procedures.  In a year in which funds are made available by the Iowa legislature, the department shall grant awards to applicants for buildings serving early elementary grades with a high percentage of at-risk students.

281—65.4(279) Award allocation procedure.  Using a formula determined by the department, the department will distribute awards based on the percentage of at-risk students in buildings serving early elementary grades.    65.4(1)   As specified in Iowa Code section 279.51(1)“c,” $75,000 will be distributed to districts with an actual student population of less than 10,000 and an actual non-English speaking student population of greater than 5 percent. These funds must be directed by the awardee to the building(s) serving the highest percentage of at-risk early elementary students.    65.4(2)   Remaining funds will be allocated to school districts not meeting the threshold stated in subrule 65.4(1) for buildings serving the highest percentage of at-risk early elementary students. The department shall have final discretion regarding awarding of funds.

281—65.5(279) Award acceptance process.  The department shall notify eligible applicants of the opportunity to be granted an award for a three-year cycle. An applicant shall make formal acceptance using forms issued and procedures established by the department. Districts shall verify that an official with vested authority has approved the application.

281—65.6(279) Awardee responsibilities.  Each year the awardee shall complete reports on forms provided by the department, including the following:
  1. An initial report including a proposed budget and expected outcomes.
  2. A midyear report including expenditures through the end of the calendar year.
  3. An end-of-the-year report including total expenditures and a statement of impact on expected outcomes.

281—65.7(279) Allowable expenditures.  As set forth in Iowa Code section 279.51(1)“c,” school districts receiving awards shall, at a minimum, provide activities and materials designed to encourage children’s self-esteem, provide role modeling and mentoring techniques in social competence and social skills, and discourage inappropriate drug use. Other allowable and unallowable expenditures are described in rule 281—98.21(257), subrules 98.21(2) and 98.21(3), respectively.

281—65.8(279) Evaluation.  The awardee shall cooperate with the department and provide requested information to determine how well the outcomes in rule 281—65.6(279) are being met. Statewide leadership teams will review final reports and provide useful feedback about buildings to awardees. This feedback will include information about innovative components to building programs. Buildings demonstrating innovation will be given preference the following grant cycle.

281—65.9(279) Budget revisions.  The awardee shall obtain the approval of the department for any revisions in the proposed budget in excess of 10 percent of a line item, provided the revisions do not increase the total amount of the award.

281—65.10(279) Termination for convenience.  The award may be terminated, in whole or in part, upon agreement of both parties. The parties shall agree upon the termination conditions, including the effective date, and in the case of partial termination, the portion to be terminated. The awardee shall not incur new obligations for the terminated portion after the effective date of termination and shall cancel as many outstanding obligations as possible.

281—65.11(279) Termination for cause.  The award may be terminated, in whole or in part, at any time before the date of completion, whenever it is determined by the department that the awardee has failed to comply substantially with the conditions of the application. The awardee shall be notified in writing by the department of the reasons for the termination and the effective date. The awardee shall not incur new obligations for the terminated portion after the effective date of termination and shall cancel as many outstanding obligations as possible.The department shall administer the at-risk early elementary school awards contingent upon the availability of state funds. If there is a lack of funds necessary to fulfill the fiscal responsibility of the awards, the awards shall be terminated or renegotiated. The department may terminate or renegotiate an award upon 30 days’ notice when there is a reduction of funds by executive order.

281—65.12(279) Responsibility of awardee at termination.  Within 45 days of the effective date of award termination, the awardee shall supply the department with a financial statement detailing all program expenditures up to the effective date of the termination. The awardee shall be solely responsible for all expenditures after the effective date of termination.

281—65.13(279) Appeals from terminations.  Any awardee aggrieved by a unilateral termination of an award pursuant to rule 281—65.11(279) may appeal the decision to the director of the department in writing within 30 days of the decision to terminate.    65.13(1) Form of appeal.  In the notice of appeal, the awardee shall give a short and plain statement of the reason for the appeal.    65.13(2) Appeal procedures.  The hearing procedures found at 281—Chapter 6 shall be applicable to appeals of terminated awards. The director shall issue a decision within a reasonable time, not to exceed 120 days from the date of hearing.    65.13(3) Grounds for reversal.  Termination of an award under this chapter shall be reversed only if the awardee proves the process was conducted outside of statutory authority; violated state or federal law, policy, or rule; did not provide adequate public notice; was altered without adequate public notice; or involved conflict of interest by staff or committee members.    65.13(4) Mandatory denial of appeal.  In lieu of a decision on the merits of an appeal, the director of the department shall deny an appeal if the director finds any of the following:    a.    The appeal is untimely;    b.    The appellant lacks standing to appeal;    c.    The appeal is not in the required form or is based upon frivolous grounds;    d.    The appeal is moot because the issues raised in the notice of appeal or at the hearing have been settled by the parties; or     e.    The termination of the award was beyond the control of the department due to lack of available funds.       These rules are intended to implement Iowa Code section 279.51.
ARC 2941CLandscape Architectural Examining Board[193D]Notice of Intended Action

Twenty-five interested persons, a governmental subdivision, an agency or association of 25 or more persons may demand an oral presentation hereon as provided in Iowa Code section 17A.4(1)“b.”

Notice is also given to the public that the Administrative Rules Review Committee may, on its own motion or on written request by any individual or group, review this proposed action under section 17A.8(6) at a regular or special meeting where the public or interested persons may be heard.

    Pursuant to the authority of Iowa Code sections 544B.10 and 546.10(8), the Landscape Architectural Examining Board hereby gives Notice of Intended Action to amend Chapter 1, “Description of Organization,” Chapter 2, “Examinations and Licensing,” and Chapter 4, “Rules of Professional Conduct,” Iowa Administrative Code.    These proposed amendments are a result of the five-year rolling review of administrative rules as outlined in Iowa Code section 17A.7(2). A committee of the Board, including Board members and staff, with the assistance of legal counsel, reviewed Chapters 1, 2, and 4 to identify outdated or redundant references, inconsistencies with statutes, and methods of enhancing efficiencies. The amendments update citations and make general updates. The amendments to Chapter 1 update definitions and rescind rules that are in the uniform rules of the Bureau of Professional Licensing and Regulation. The amendments to Chapter 2 update the rules to reflect the current examination and licensing protocols, including an update of the reinstatement and fee process. The amendments to Chapter 4 update the rules of professional conduct and discipline procedures. Throughout the chapters, the word “registration” in the phrase “certificate of registration” is changed to “licensure” as that is the current term used in the Iowa Code.    Consideration will be given to all written suggestions or comments received on or before March 7, 2017. Comments should be directed to Jill Simbro, Iowa Landscape Architectural Examining Board, 200 E. Grand Avenue, Suite 350, Des Moines, Iowa 50309. E-mail may be sent to jill.simbro@iowa.gov.     A public hearing will be held on March 7, 2017, at 10 a.m. in the Board Office, 200 E. Grand Avenue, Suite 350, Des Moines, Iowa, at which time persons may present their views on the proposed amendments either orally or in writing. At the hearing, any person who wishes to speak will be asked to give the person’s name and address for the record and to confine remarks to the subject of the proposed amendments. Any persons who intend to attend the public hearing and have special requirements, such as those relating to hearing or mobility impairments, should contact the Board and advise of specific needs.    These proposed amendments were approved by the Board on October 11, 2016.    These proposed amendments are subject to waiver or variance pursuant to 193—Chapter 5.    After analysis and review of this rule making, the Bureau determined that there will be no impact on jobs and no fiscal impact to the state.     These amendments are intended to implement Iowa Code chapter 544B.    The following amendments are proposed.

    ITEM 1.    Amend rule 193D—1.1(544B,17A) as follows:

193D—1.1(544B,17A) Definitions.  As used in these rules, the following definitions of words and terms shall apply:        "Board" means the Iowa landscape architectural examining board.        "CLARB" means the Council of Landscape Architectural Registration Boards.        "Evidence" means any document or record of any kind of drawings, specifications, photographs, diplomas, licensee statements, published data and certified personal statements as may be required as a part of any action on the part of the board. Each item of evidence shall be clearly marked to ensure positive and certain identification. It shall be the entire responsibility of the applicant to satisfy the board as to the sufficiency of the record and the evidence.        "Intern landscape architect" means an individual who is not licensed and has a degree in landscape architecture and is employed under the direct supervision of a professional landscape architect. The initials “I.L.A.” should not be used.        "LandscapeProfessional landscape architect" means a person who obtains a license and engages in the practice of landscape architecture under the authority of Iowa Code chapter 544B. For the purpose of these rules, a “professional landscape architect” may be referred to as a “landscape architect.and may use the initials “P.L.A.”        "LandscapeProfessional landscape architect, retired" means a person who has retired from working as a landscape architect in all states of registration,licensure and who has requested “landscape architect, retired” status on the licensure renewal form, and whose request for “landscape architect, retired” status has been approved by the board.The retired status would become effective on the first scheduled licensure renewal date. For the purpose of these rules, a “professional landscape architect, retired” may be referred to as a “landscape architect, retired.”        "LARE" means the landscape architecture registration examination.        "PLA" means professional landscape architect.        "P.L.A., retired" means the same as “professional landscape architect, retired.”        "Practice of landscape architecture" means the renderingperformance of professional service or offering to render professional serviceservices to clients, including any one or any combination of the professional services defined in Iowa Code section 544B.1 and 193D—subrule 2.2(1)544B.1(2).        "Years of practical experience" means, for each year of practical experience the applicant has worked performing landscape architectural services, a minimum of 2,080 hours per year.

    ITEM 2.    Amend rule 193D—1.2(544B,17A), introductory paragraph, as follows:

193D—1.2(544B,17A) Organization and duties.  The board consists of five members who are licensed professional landscape architects and two members who are not licensed professional landscape architects and who represent the general public. The board elects annually from its members a chairperson and a vice chairperson. A quorum of the board shall be four members, and all final motions and actions must receivea vote by a majority of a quorum votethe members of the board. The board enforces the provisions of Iowa Code chapter 544B and maintains a roster of all licensed professional landscape architects in the state.

    ITEM 3.    Amend rule 193D—1.4(544B,17A) as follows:

193D—1.4(544B,17A) Order of business.  The chairperson or the chairperson’s designeeboard administrator shall prepare an agenda listing all matters to be discussed at meetings. A copy of this agenda shall be available to each member of the board. Procedures shall be in accordance with Robert’s Rules of Order.

    ITEM 4.    Rescind and reserve rules 193D—1.5(22) to 193D—1.9(252J,261).

    ITEM 5.    Amend rule 193D—1.10(17A) as follows:

193D—1.10(17A) WaiversInterim waivers and variances.      1.10(1)   Persons who wish to seek waivers or variances from board rules should consult the uniform rules for the division of professional licensing and regulation at 193—Chapter 5.In addition to the provisions of 193—Chapter 5, the following shall apply for interim rulings:    1.() 1.10(1)   a.    The board chairperson, or vice chairperson if the chairperson is not available, may rule on a petition for waiver or variance when it would not be timely to wait for the next regularly scheduled board meeting for a ruling from the board.    1.() 1.10(2)   b.    The executive officer shall, upon receipt of a petition that meets all applicable criteria established in 193—Chapter 5, present the request to the board chairperson or vice chairperson along with all pertinent information regarding established precedent for granting or denying such requests.    1.() 1.10(3)   c.    The chairperson or vice chairperson shall reserve the right to hold an electronic meeting of the board when prior board precedent does not clearly resolve the request, input of the board is deemed required and the practical result of waiting until the next regularly scheduled meeting would be a denial of the request due to timing issues.    1.() 1.10(4)   d.    A waiver report shall be placed on the agenda of the next regularly scheduled board meeting and recorded in the minutes of the meeting.    1.() 1.10(5)   e.    This subrulerule on interim rulings does not apply if the waiver or variance was filed in a contested case.

    ITEM 6.    Rescind and reserve rules 193D—1.11(544B,17A,272C) to 193D—1.13(272C).

    ITEM 7.    Amend 193D—Chapter 1, implementation sentence, as follows:       These rules are intended to implement Iowa Code sections 544B.3, 544B.5, and 544B.15 and chapters 252J, 261, and 272C.

    ITEM 8.    Rescind and reserve rule 193D—2.1(544B,17A).

    ITEM 9.    Amend rule 193D—2.3(544B,17A) as follows:

193D—2.3(544B,17A) Procedure for processing applications.  Each application shall be considered individually by the board.The board authorizes the chairperson to review applications between board meetings. The chairperson will determine if the applications meet the requirements for approval or will need full board review. A personal appearance before the board, if required, shall be at the time and place designated by the board. Failure to supply additional evidence or information within 30 days from the date of the written request from the board, or failure to appear before the board when an appearance is requested, may be considered cause for disapproval of the application. Unless otherwise provided by law, a request for a rehearing before the board shall be filed with the board in accordance with 193—7.39(543,272C). A judicial review can be filed in accordance with Iowa Code section 17A.19.

    ITEM 10.    Amend rule 193D—2.7(544B,17A) as follows:

193D—2.7(544B,17A) Certificate of licensure.  Applicants will be notified by the board of their eligibility or ineligibility.When an applicant has qualified for licensure under this chapter and has paid the required license fee, the secretary shall enroll the applicant’s name in the roster of professional landscape architects and issue to the applicant a certificate of licensure signed by the chairperson and vice chairperson of the board.    2.7(1) Payment.  Upon payment of the license fee, the board will issue the certificate of licensure to an eligible professional landscape architect.    2.(2) 2.7(1) License number.  The certificate will indicate the license number of the landscape architect which must appear on the professional landscape architect’s seal and on all works signed by the professional landscape architect.    2.(3) 2.7(2) Certificate.  Only one certificate of licensure shall be issued to a professional landscape architect. The certificate shall be displayed in a conspicuous place at the place of employment.

    ITEM 11.    Amend rule 193D—2.8(17A,272C,544B) as follows:

193D—2.8(17A,272C,544B) Renewal of certificates of registrationlicensure.  Certificates of registrationlicensure expire biennially on June 30. In order to maintain authorization to practice in Iowa, a registrantlicensee is required to renew the certificate of registrationlicensure prior to the expiration date. A registrantlicensee who fails to renew by the expiration date is not authorized to practice landscape architecture in Iowa until the certificate is reinstated as provided in rule 193D—2.9(544B,17A).    2.8(1)   It is the policy of the board to e-mail to each registrantlicensee a notice of the pending expiration date at the registrant’slicensee’s last-known address approximately one month prior to the date the certificate of registrationlicensure is scheduled to expire. Failure to receive this notice does not relieve the registrantlicensee of the responsibility to timely renew the certificate and pay the renewal fee. A registrantlicensee should contact the board office if the registrantlicensee does not receive a renewal notice prior to the date of expiration.    2.8(2)   If grounds exist to deny a timely and sufficient application to renew, the board shall send written notification to the applicant by restricted certified mail, return receipt requested. Grounds may exist to deny an application to renew if, for instance, the registrantlicensee failed to satisfy the continuing education as required as a condition for registrationlicensure. If the basis for denial is pending disciplinary action or disciplinary investigation that is reasonably expected to culminate in disciplinary action, the board shall proceed as provided in 193—Chapter 7. If the basis for denial is not related to a pending or imminent disciplinary action, the applicant may contest the board’s decision as provided in 193—subrule 7.40(1).    2.8(3)   When a registrantlicensee appears to be in violation of mandatory continuing education requirements, the board may, in lieu of proceeding to a contested case hearing on the denial of a renewal application as provided in rule 193—7.40(546,272C), offer a registrantthe licensee the opportunity to sign a consent order. While the terms of the consent order will be tailored to the specific circumstances at issue, the consent order will typically impose a penalty between $50 and $250, depending on the severity of the violation; establish deadlines for compliance; and require that the registrantlicensee complete hours equal to double the deficiency in addition to the required hours; and may impose additional educational requirements on the registrantlicensee. Any additional hours completed in compliance with the consent order cannot again be claimed at the next renewal. The board will address subsequent offenses on a case-by-case basis. A registrantlicensee is free to accept or reject the offer. If the offer of settlement is accepted, the registrantlicensee will be issued a renewed certificate of registrationlicensure and will be subject to disciplinary action if the terms of the consent order are not complied with. If the offer of settlement is rejected, the matter will be set for hearing, if timely requested by the registrantlicensee pursuant to 193—subrule 7.40(1).    2.8(4)   The board may notify registrantslicensees whose certificates of registrationlicensure have expired. The failure of the board to providedprovide this courtesy notification or the failure of the registrantlicensee to receive the notification shall not extend the date of expiration.    2.8(5)   A registrantlicensee who continues to practice landscape architecture in Iowa after registrationlicensure has expired shall be subject to disciplinary action. Such unauthorized activity may also be grounds to deny a registrant’slicensee’s application for reinstatement.    2.8(6)   Licensees shall notify the board within 30 days of any change of address or business connection.    2.8(7)   Retired status. A person who held a registrationlicense as a professional landscape architect, who is retired from the practice of landscape architecture in all states of registrationlicensure, and who has applied for and has been granted retired status from the board may use the title “professional landscape architect, retired” or “PLAP.L.A., retired.” If the board determines an applicant is eligible, theThe retired status would become effective on the first scheduled registrationlicense renewal date. Applicants do not need to reinstate an expired registrationlicense to be eligible for retired status. Applicants may apply for retired status onthe renewal forms provided by the board. The board will not provide a refund of biennial registrationlicensure fees if an application for retired status is granted in a biennium in which the applicant has previously paid the biennial fees for either active or inactive status. Licensees with retired status are exempt from the renewal requirement.    a.    Permitted practices.Persons registeredA person whose license is in retired status may engage in the practices identified in paragraph 2.8(8)“c.” Such personsperson may also provide services asa technical expertsexpert before a court, including pre-litigation preparation, discovery, and testimony, on matters directly related to landscape architectural services provided by such personsperson prior to registering with the board in retired status.    b.    Exemption.A person whose registrationlicense as a landscape architect has been placed on probation, suspended, revoked, or voluntarily surrendered in connection with a disciplinary investigation or proceeding shall not be eligible for retired status unless the board, upon appropriate application, first reinstates the registrationlicense to good standing.    2.8(8)   Inactive status. This subrule establishes a procedure under which a person issued a certificate of registrationlicensure as a landscape architect may apply to the board to register as inactive. RegistrationLicensure under this subrule is available to a registrantlicensee residing within or outside the state of Iowa who is not using the title “landscape architect” while offering services as a landscape architect. A person eligible to register as inactive may, as an alternative to such registrationlicensure, allow the certificate of registrationlicensure to lapse. During any period of inactive status, a person shall not engage in the practice of landscape architecture while using the title “landscape architect” or any other title that might imply that the person is offering services as a landscape architect in violation of Iowa Code section 544B.18. The board will continue to maintain a database of persons registered as inactive, including information which is not routinely maintained after a certificate of registrationlicensure has lapsed through the person’s failure to renew. A person who registers as inactive will accordingly receive a renewal notice if the notice is sent by the board, board newsletters, and other mass communications from the board.    a.    Affirmation.The renewal application shall contain a statement in which the applicant affirms that the applicant will not engage in the practice of landscape architecture while using the title “landscape architect” in violation of Iowa Code section 544B.18, without first complying with all rules governing reinstatement to active status. A person in inactive status may reinstate to active status at any time pursuant to rule 193D—2.9(544B,17A).    b.    Renewal.A person registered as inactive may renew the person’s certificate of registrationlicensure on the biennial schedule described in 193D—2.8(544B,272C,17A). This person shall be exempt from the continuing education requirements and will be charged a reduced renewal fee as provided in 193D—2.10(544B,17A). An inactive certificate of registrationlicensure shall lapse if not timely renewed.    c.    Permitted practices.A person may, while registered as inactive or retired, perform for a client, business, employer, government body, or other entity those services which may lawfully be provided by a person to whom a certificate of registrationlicensure has never been issued. For an “inactive” registrantlicensee, such services may be performed as long as the person does not in connection with such services use the title “landscape architect” or any other title restricted for use only by landscape architects pursuant to Iowa Code section 544B.18 (with or without additional designations such as “inactive”). Restricted titles may be used only by active landscape architects who are subject to continuing education requirements to ensure that the use of such titles is consistently associated with the maintenance of competency through continuing education. A “professionallandscape architect, retired” may use the “professionallandscape architect, retired” title; however, the person shall inform anyone to whom the person is providing services that the person once held an active landscape architect license but is no longer actively licensed or permitted to practice landscape architecture.    d.    Prohibited practices.A person who, while registered as inactive, engages in any of the practices described in Iowa Code section 544B.18 is subject to disciplinary action.

    ITEM 12.    Amend rule 193D—2.9(544B,17A) as follows:

193D—2.9(544B,17A) Reinstatement.      2.9(1)   Reinstatement to active status from lapsed status.    a.     An individual may reinstate an expired certificate of registration to active status within two years of expiration by:    (1)   Paying the reinstatement fee of $25 per month of expired registration;    (2)   Paying the current renewal fee;    (3)   Providing a written statement outlining the professional activities of the applicant during the period of nonregistration defined as the practice of landscape architecture in Iowa Code section 544B.1; and    (4)   Submitting documented evidence of completion of 12 contact hours of continuing education in health, safety, welfare subjects for each year or portion of a year of expired registration in compliance with requirements in 193D—Chapter 3. The hours reported shall be in addition to the 24 hours in health, safety, welfare subjects which should have been reported on the June 30 renewal date on which the registrant failed to renew. The continuing education hours used for reinstatement to active status may not be used again at the next renewal.Out-of-state residents may submit a statement from their resident state’s licensing board as documented evidence of compliance with their resident state’s mandatory continuing education requirements during the period of nonregistration. The statement shall bear the seal of the licensing board. Out-of-state residents whose resident state has no mandatory continuing education shall comply with the documented evidence requirements outlined in this subrule.    b.    An individual may reinstate to active status a certificate of registration which has been expired for more than two years by:    (1)   Paying the reinstatement fee of $25 per month of expired registration up to a maximum of $750;    (2)   Paying the current renewal fee;    (3)   Providing a written statement outlining the professional activities of the applicant during the period of nonregistration defined as the practice of landscape architecture in Iowa Code section 544B.1; and    (4)   Submitting documented evidence of completion of continuing education as determined by the board. The board shall require no more than 48 hours in health, safety, welfare subjects; however, the hours reported shall not have been earned more than four years prior to the date of the application to reinstate to active status.Out-of-state residents may submit a statement from their resident state’s licensing board as documented evidence of compliance with their resident state’s mandatory continuing education requirements during the period of nonregistration. The statement shall bear the seal of the licensing board. Out-of-state residents whose resident state has no mandatory continuing education shall comply with the documented evidence requirements outlined in this subrule.The board shall review reinstatement applications on a case-by-case basis and may, at its discretion, require that the applicant take the L.A.R.E. as a prerequisite to reinstatement to active status.    2.9(1)   An individual may reinstate a lapsed certificate of licensure to active status as follows:    a.    Pay the current renewal fee;    b.    Pay the reinstatement fee of $100 plus $25 per month or partial month of expired licensure up to a maximum of $750. All applicants for reinstatement shall be assessed the $100 reinstatement fee. The $25-per-month fee shall not be assessed if the applicant for reinstatement did not, during the period of lapse, engage in any acts or practices for which an active landscape architect license is required in Iowa. Falsely claiming an exemption from the monthly fee is a ground for discipline; in addition, other grounds for discipline may arise from practicing on a lapsed certificate, license or permit to practice;    c.    Provide a written statement outlining the professional activities that the applicant performed in Iowa during the period of nonlicensure. The statement shall include a list of all projects with which the applicant had involvement and shall explain the service provided by the applicant; and    d.    Submit documented evidence of completion of continuing education based on the licensee’s date of licensure.    (1)   A professional landscape architect who holds a license in Iowa for less than 12 months from the date of initial licensure shall not be required to report continuing education on the June 30 renewal on which the applicant failed to renew and 12 continuing education hours for each year or portion of a year of expired licensure up to a maximum of 48 continuing education hours; however, the hours reported shall not have been earned more than four years prior to the date of the application to reinstate to active status.     (2)   A professional landscape architect who holds a license in Iowa for more than 12 months, but less than 24 months from the date of initial licensure, shall be required to report 12 contact hours which should have been reported on the June 30 renewal on which the applicant failed to renew and 12 continuing education hours for each year or portion of a year of expired licensure up to a maximum of 48 continuing education hours; however, the hours reported shall not have been earned more than four years prior to the date of the application to reinstate to active status.     (3)   A professional landscape architect who holds a license in Iowa for 24 months or more from the date of initial licensure shall be required to report 24 contact hours which should have been reported on the June 30 renewal on which the applicant failed to renew and 12 continuing education hours for each year or portion of a year of expired licensure up to a maximum of 48 continuing education hours; however, the hours reported shall not have been earned more than four years prior to the date of the application to reinstate to active status.    (4)   All continuing education hours must be completed in health, safety, and welfare subjects acquired in structured educational activities and be in compliance with requirements in 193D—Chapter 3. The continuing education hours used for reinstatement may not be used again at the next renewal.     (5)   Out-of-state residents may submit a statement from their resident state’s licensing board as documented evidence of compliance with their resident state’s mandatory continuing education requirements during the period of nonlicensure. The statement shall bear the seal of the licensing board. Out-of-state residents whose resident state has no mandatory continuing education shall comply with the documented evidence requirements outlined in this subrule.    2.9(2)   Reinstatement to inactive status from lapsed status. An individual may reinstate a lapsed certificate of registration to inactive status as follows:    a.     Reinstatement fees. The individual shall:    (1)   Pay the reinstatement fee of $25 per month of expired registration up to a maximum of $100 if the application for reinstatement is filed on or before June 30, 2009.    (2)   Pay the reinstatement fee of $25 per month of expired registration up to a maximum of $750 if the application for reinstatement is filed on or after July 1, 2009.    b.     The individual shall pay the current renewal fee.    c.     The individual shall provide a written statement in which the individual affirms that the individual has not engaged in any of the practices in Iowa that are listed in Iowa Code section 544B.18 during the period of lapsed registration.    2.(3) 2.9(2)   Reinstatement to active status from inactive status or retired status. An individual may reinstate an inactive registrationlicense or retired registrationlicense toan active registrationlicense as follows:    a.     The individual shall pay the current active registrationlicensure fee. If the individual is reinstating to active status at a date that is less than 12 months from the next biennial renewal date, one-half of the current active registrationlicensure fee shall be paid.    b.     The individual shall submit documented evidence of completion of 24 contact hours (16 contact hours in public protection subjects) of continuing educationin health, safety, and welfare subjects in compliance with requirements in 193D—Chapter 3. The continuing education hours used for reinstatement to active status may not be used again at the next renewal.    c.     Continuing education for subsequent renewals.    (1)   At the first biennial renewal date of July 1 that is less than 12 months from the date of the filing of the application to restore the certificate of registrationlicensure to active status, the individual shall not be required to report continuing education.    (2)   At the first biennial renewal date of July 1 that is more than 12 months, but less than 24 months, from the date of the filing of the application to restore the certificate of registrationlicensure to active status, the individual shall report 12 hours of previously unreported continuing education.    d.    Provide a written statement in which the applicant affirms that the applicant has not engaged in any of the practices in Iowa that are listed in Iowa Code section 544B.1(2) during the period of inactive licensure.    2.(4) 2.9(3)   An individual shall not be allowed to reinstate to inactive status from retired status.    2.9(4)   The board shall review reinstatement applications on a case-by-case basis and may, at its discretion, require that the applicant take the LARE as a prerequisite to reinstatement to active status.

    ITEM 13.    Amend rule 193D—2.10(544B,17A) as follows:

193D—2.10(544B,17A) Fee schedule.   The appropriate examination fee or examination exemption filing fee shall accompany the application. Filing fees are not refundable.Examination feenot to exceed $1000Initial examination filing fee$50Proctoring fee Fees for examination subjects shall be paid directly to the testing service selected by CLARB.$50Examination exemptionExemption fee$300    (This certificate of registrationlicensure is to be effective to the June 30 which is at least12 months beyond the date of the application.)Wall certificate fee$50Wall certificate replacement fee$25Certificate of registrationlicensure fee$15/month    (This certificate of registrationlicensure is to be effective the day of board action until June 30.)Biennial registrationlicensure fee (active)$350Biennial registrationlicensure fee (inactive)    $100Reinstatement of lapsed registration    not to exceed $750LandscapeProfessional landscape architect, retired” status$0 (No fee)Reinstatement of lapsed licensure to active status$100 + renewal fee + $25 per month or partial month of lapsed licensure; not to exceed $750Reinstatement of inactive or retired status to active status$350    (If less than 12 months from the next biennial renewal, one-half of the current active licensure fee shall be paid.)

    ITEM 14.    Amend 193D—Chapter 4, title, as follows:RULES OF PROFESSIONAL CONDUCTAND DISCIPLINE PROCEDURES

    ITEM 15.    Amend paragraph 4.1(5)"c" as follows:    c.    A professional landscape architect shall comply with the registrationlicensure laws and regulations governing the landscape architect’s professional practice in any United States jurisdiction.

    ITEM 16.    Amend paragraph 4.1(6)"b" as follows:    b.    A professional landscape architect shall not sign or seal drawings, specifications, reports or other professional work for which the landscape architect does not have direct professional knowledge and direct supervisory control; provided, however, that in the case of the portions of professional work prepared by the landscape architect’s consultants, registeredlicensed under this or another professional registrationlicensure law of this jurisdiction, the professional landscape architect may sign or seal that portion of the professional work if the landscape architect has reviewed that portion, has coordinated its preparation and intends to be responsible for its adequacy.

    ITEM 17.    Amend paragraph 4.1(6)"d" as follows:    d.    A professional landscape architect shall not engage in conduct involving fraud or wanton disregard of the rights of others. Failure by a licensee to adhere to these rules of conduct shall cause the license to be reviewed by the board and shall, at the discretion of the board, be cause for a reprimand or suspension or revocation of the license.

    ITEM 18.    Amend paragraph 4.1(7)"d" as follows:    d.    Each technical submission to a building officialclient or any public agency, hereinafter referred to as the official copy, shall contain an information block on its first page or on an attached cover sheet with application of a seal by the professional landscape architect in responsible charge and an information block with application of a seal by each professional consultant contributing to the technical submission. The seal and original signature shall be applied only to a final technical submission. Each official copy of a technical submission shall be stapled, bound or otherwise attached together so as to clearly establish the complete extent of the technical submission. Each information block shall display the seal of the individual responsible for that portion of the technical submission. The area of responsibility for each sealing professional shall be designated in the area provided in the information block, so that responsibility for the entire technical submission is clearly established by the combination of the stated seal responsibilities. The information block shall substantially conform to the sample shown below:    SEAL    I hereby certify that the portion of this technical submission described below was prepared by me or under my direct supervision and responsible charge. I am a duly licensed professional landscape architect under the laws of the state of Iowa.Printed or typed nameor secure electronic signatureSignaturePages or sheets covered by this seal:    License Expires:    

    ITEM 19.    Amend paragraph 4.1(7)"e" as follows:    e.    The information requested in each information block must be typed or legibly printed in permanent ink or digital signature as defined in or governed by Iowa Code chapter 554D on each official copy.An electronic signature as defined in or governed by Iowa Code chapter 554D meets the signature requirements of this rule if it is protected by a security procedure, as defined in Iowa Code section 554D.103(14), such as digital signature technology. It is the licensee’s responsibility to ensure, prior to affixing an electronic signature to a landscape architecture document, that security procedures are adequate to (1) verify that the signature is that of a specific person and (2) detect any changes that may be made or attempted after the signature of the specific person is affixed. The seal implies responsibility for the entire technical submission unless the area of responsibility is clearly identified in the information accompanying the seal.

    ITEM 20.    Amend subrule 4.2(1) as follows:    4.2(1) Complaints.  Any person may file a complaint with the board charging that a licensee may have committed an act that is in violation of applicable law or rules. The complaint shall be written and signed by the complainant and accompanied with substantial evidence indicating when, where, and how the licensee committed the violation. All complaints filed with the board shall be privileged and held confidentialpursuant to Iowa Code section 272C.6(4) by all board members, peer review committee members and staff. A person filing a complaint shall receive immunities in accordance with Iowa Code chapter 272Csection 272C.8.

    ITEM 21.    Amend subrule 4.2(2) as follows:    4.2(2) Board-instigated complaints.  Upon presentation of evidence by a board member, the board’s staff, or other state agency, the board may determine that a complaint should be formulated to charge thatopened and an investigation begun to determine if a licensee may have committed an act that is in violation of applicable law or rules. A majority vote of the board approving a written motion stating the charges and containing evidence as to when, where, and how the violation might have occurred shall constitute a complaint to be processed by the complaint procedure.

    ITEM 22.    Amend rule 193D—4.4(544B,272C) as follows:

193D—4.4(544B,272C) Investigation reportof complaints.      4.4(1) Board consideration of report to determine further action.  Upon completion of the investigation, the investigator(s) shall prepare for the board’s consideration a report containing the position or defense of the licensee so the board may determine what further action is necessary. The board may:    1a.    Order the matter be further investigated.    2b.    Allow the licensee who is the subject of the complaint an opportunity to appear before thedesignated discipline committee for an informal discussion regarding the circumstances of the alleged violation.    3c.    Determine there is no probable cause to believe that a violation has occurred and close the case.    4d.    Determine there is probable cause to believe that a violation has occurred.    4.4(2) Informal discussion.      a.    An informal discussion is intended to provide a licensee an opportunity to share the licensee’s account of a complaint in an informal setting before the board determines whether probable cause exists to initiate a disciplinary proceeding. A licensee is not required to attend an informal discussion. Because disciplinary investigations are confidential, the licensee may not bring other persons to an informal discussion, but licensees may be represented by legal counsel.    b.    Unless disqualification is waived by the licensee, board members or staff who personally investigate a disciplinary complaint are disqualified from making decisions or assisting the decision makers at a later formal hearing. Because board members generally rely upon investigators, peer review committees, or expert consultants to conduct investigations, the issue rarely arises. An informal discussion, however, is a form of investigation because it is conducted in a question-and-answer format. In order to preserve the ability of all board members to participate in board decision making and to receive the advice of staff, a licensee who desires to attend an informal discussion must therefore waive the right to seek disqualification of a board member or staff based solely on the board member’s or staff’s participation in an informal discussion. A licensee would not waive the right to seek disqualification on any other ground. By electing to attend an informal discussion, a licensee accordingly agrees that participating board members or staff are not disqualified from acting as a presiding officer in a later contested case proceeding or from advising the decision maker.    c.    Because an informal discussion constitutes a part of the board’s investigation of a pending disciplinary case, the facts discussed at the informal discussion may be considered by the board in the event the matter proceeds to a contested case hearing and those facts are independently introduced into evidence.

    ITEM 23.    Amend rule 193D—4.5(544B,272C) as follows:

193D—4.5(544B,272C) Dispensation.  The board shall make findings of fact and conclusions of law and may take one or more of the following actions:
  1. Dismiss the charges.
  2. Revoke the professional landscape architect’s license.
  3. Suspend the professional landscape architect’s license as authorized by law.
  4. Impose civil penalties, the amount of which shall be set at the discretion of the board but shall not exceed $1000. Civil penalties may be imposed for any of the disciplinary violations of Iowa Code section 544B.15 and Iowa Code sections 272C.9(2),and272C.9(3), and 272C.10, and these rules or for repeated offenses.
  5. Impose a period of probation, either with or without conditions.
  6. Require reexamination, using one or more parts of the examination given to professional landscape architectural licensee candidates.
  7. Require additional professional education, reeducation, or continuing education.
  8. Issue a citation or warning.
  9. Issue a consent order.
  10. Accept voluntary surrender of license. Voluntary surrender of a license is considered a disciplinary action.
ARC 2937CNatural Resource Commission[571]Notice of Intended Action

Twenty-five interested persons, a governmental subdivision, an agency or association of 25 or more persons may demand an oral presentation hereon as provided in Iowa Code section 17A.4(1)“b.”

Notice is also given to the public that the Administrative Rules Review Committee may, on its own motion or on written request by any individual or group, review this proposed action under section 17A.8(6) at a regular or special meeting where the public or interested persons may be heard.

    Pursuant to the authority of Iowa Code sections 455A.5(6)“a,” 481A.38, 481A.39, and 481A.48, the Natural Resource Commission (Commission) hereby gives Notice of Intended Action to amend Chapter 91, “Waterfowl and Coot Hunting Seasons,” Chapter 97, “Common Snipe, Virginia Rail and Sora, Woodcock, Ruffed Grouse, and Dove Hunting Seasons,” and Chapter 102, “Falconry Regulations for Hunting Game,” Iowa Administrative Code.     Chapter 91 contains the regulations for hunting waterfowl and coot and includes season dates, bag limits, possession limits, shooting hours, and areas open to hunting. The proposed amendments make the annual adjustment to the season dates for the 2017-2018 waterfowl seasons so that they comply with what the Department of Natural Resources (Department) anticipates the corresponding federal regulations will be after meeting with the United States Fish and Wildlife Service (USFWS) this year at the Mississippi Flyway Council and after reviewing the preliminary and supplemental frameworks contained in 81 Fed. Reg. 38,050-38,057 (June 10, 2016) and 81 Fed. Reg. 53,391-53,393 (August 12, 2016). The proposed amendments also ensure that the seasons open on different weekends to maximize hunter opportunity and continue for a fourth year an experimental special September teal season. The continuation of the special teal season will not adversely impact teal numbers and will allow Iowa hunters additional days of recreational hunting opportunity during the peak migration period for teal. The federal regulations will likely authorize up to 16 days for the special teal season. Last year, hunters requested, and the Commission implemented, a two-week period of calm and hunter inactivity between the end of the teal season and the start of the regular duck season. The proposed amendments repeat this period again for the 2017-2018 seasons.     The Commission proposes three other changes to Chapter 91 in this rule making. Subrule 91.4(1) is being amended to accurately reflect the posted boundary of a waterfowl refuge located in the Upper Iowa Wildlife Unit. The current subrule states that waterfowl and coot hunting is not allowed within 300 feet of the center of the Army Road from New Albin to the boat ramp on the Mississippi River within sections 11 and 12, but the refuge is actually marked at a distance of 150 feet. This is an editorial change for accuracy and does not change the refuge’s actual boundary. The daily bag limit for black ducks is increasing from one to two, as allowed by the federal regulations. Finally, the Commission is removing all language addressing the old 2016-2017 zone structure.    Chapter 97 contains the regulations for dove hunting. The USFWS now allows 90 days of dove hunting, up from 70 days, and the Commission is amending rule 571—97.6(481A) to reflect that change. This 20-day extension is not expected to result in a significant increase in harvest due to federal constraints on the opening date of the dove season, but it will allow hunters the maximum opportunity in season length to harvest doves.     Chapter 102 contains the regulations for falconry seasons. USFWS allows duck hunting by falconry during the conventional gun hunting seasons and afterwards, too, in a special “extended” falconry-only season. This special season cannot extend beyond the duck hunting season length of 107 days and is calculated as follows: 107 days minus 16 teal days, minus 2 youth days, minus 60 gun days, equals 29 days for exclusive falconry duck hunting. The later duck hunting dates implemented in the 2016-2017 seasons (and proposed again for 2017-2018) resulted in the loss of several days for exclusive falconry hunting because the conventional gun season went until December 18 in one zone and December 15 in another, which is the same day under subrule 102.2(1) that the “extended” falconry season started statewide. This four-day overlap between the gun season and the extended falconry season arguably “wasted” four of the falconry-only days because those falconers were already able to hunt. In other words, removing this overlap in the 2017-2018 seasons will allow for 29 days of exclusive falconry hunting, whereas last year there were only 25 days. Additionally, the Commission is changing the opening date of the extended falconry season from a specific calendar date (December 15) to a rotating weekend opener (i.e., “the first Saturday in January”), which will guarantee an annual weekend start and eliminate the need to amend the rule in the future solely to adjust a specific calendar date. Finally, the Commission updated the falconry regulations to amend the possession limit to three times the daily bag limit, per updated federal regulations, and removed incorrect language regarding the dark goose falconry season.    Any interested person may make written suggestions or comments on the proposed amendments on or before March 7, 2017. Written comments may be directed to Orrin Jones, Waterfowl Biologist, Department of Natural Resources, 1203 North Shore Drive, Clear Lake, Iowa 50428; by e-mail at Orrin.Jones@dnr.iowa.gov; or by fax at (641)357-5523. Persons who wish to convey their comments orally may contact Orrin Jones by telephone at (641)357-3517 or by visiting the Clear Lake Fish Hatchery during regular business hours.    There will be a public hearing on March 7, 2017, at 11:30 a.m. in the Fourth Floor Conference Room of the Wallace State Office Building Des Moines, Iowa. At the public hearing, persons may present their views either orally or in writing. Participants will be asked to give their names and addresses for the record and to confine their remarks to the subject of the amendments.    Any persons who intend to attend the public hearing and have special requirements, such as those related to hearing or mobility impairments, should contact the Department and request specific accommodations.    After analysis and review of this rule making, it was determined that there will not be an impact on jobs in the state.     These amendments are intended to implement Iowa Code sections 481A.38, 481A.39, and 481A.48.     The following amendments are proposed.

    ITEM 1.    Amend subrules 91.1(1) to 91.1(5) as follows:    .(1) Zone boundaries.  The following zone boundaries apply in the time frames noted:    a.    For the 2016-2017 season, the north duck hunting zone is that part of Iowa north of a line beginning on the South Dakota-Iowa border at Interstate 29, southeast along Interstate 29 to State Highway 175, east to State Highway 37, southeast to State Highway 183, northeast to State Highway 141, east to U.S. Highway 30, and along U.S. Highway 30 to the Iowa-Illinois border. The Missouri River duck hunting zone is that part of Iowa west of Interstate 29 and north of State Highway 175. The south duck hunting zone is the remainder of the state.b.    For the 2017-2021 seasons, theThe north duck hunting zone is that part of Iowa north of a line beginning on the South Dakota-Iowa border at Interstate 29, southeast along Interstate 29 to State Highway 175, east to State Highway 37, southeast to State Highway 183, northeast to State Highway 141, east to U.S. Highway 30, and along U.S. Highway 30 to the Iowa-Illinois border. The Missouri River duck hunting zone is that part of Iowa west of Interstate 29 and south to the Iowa-Missouri border. The south duck hunting zone is the remainder of the state.    .(2) Season dates - north zone.  Special September teal season: September 32 through September 1110. For all ducks: September 2423 through October 21 and October 1514 through December 43.    .(3) Season dates - south zone.  Special September teal season: September 32 through September 1110. For all ducks: October 1September 30 through October 54 and October 2221 through December 1514.    .(4) Season dates - Missouri River zone.  Special September teal season: September 32 through September 1817. For all ducks: October 87 and October 98 and October 2221 through December 1817.    .(5) Bag limit.  Special September teal season: The daily bag limit is 6 teal of any species. For all ducks: The daily bag limit of ducks is 6, and may include no more than 4 mallards (no more than 2 of which may be females), 12 black duckducks, 3 wood ducks, 2 pintails, 1 mottled duck, 2 canvasback, 2 redheads, and 3 scaup. The daily bag limit of mergansers is 5, only 2 of which may be hooded mergansers.

    ITEM 2.    Amend subrules 91.3(1) to 91.3(5) as follows:    .(1) Zone boundaries.  The following zone boundaries apply in the time frames noted:    a.    For the 2016-2017 season, the north goose hunting zone is that part of Iowa north of a line beginning on the South Dakota-Iowa border at Interstate 29, southeast along Interstate 29 to State Highway 175, east to State Highway 37, southeast to State Highway 183, northeast to State Highway 141, east to U.S. Highway 30, and along U.S. Highway 30 to the Iowa-Illinois border. The Missouri River goose hunting zone is that part of Iowa west of Interstate 29 and north of State Highway 175. The south goose hunting zone is the remainder of the state.b.    For the 2017-2021 seasons, theThe north goose hunting zone is that part of Iowa north of a line beginning on the South Dakota-Iowa border at Interstate 29, southeast along Interstate 29 to State Highway 175, east to State Highway 37, southeast to State Highway 183, northeast to State Highway 141, east to U.S. Highway 30, and along U.S. Highway 30 to the Iowa-Illinois border. The Missouri River goose hunting zone is that part of Iowa west of Interstate 29 and south to the Iowa-Missouri border. The south goose hunting zone is the remainder of the state.    .(2) Season dates - north zone.  Dark geese (Canada geese, white-fronted geese, brant and any other geese that are not light geese): September 2423 through October 98 and October 1514 through January 4, 20171, 2018. Light geese (white and blue-phase snow geese and Ross’ geese): September 2423 through October 98 and October 1514 through January 13, 201710, 2018.    .(3) Season dates - south zone.  Dark geese (Canada geese, white-fronted geese, brant and any other geese that are not light geese): October 1September 30 through October 98 and October 2221 through January 18, 201715, 2018. Light geese (white and blue-phase snow geese and Ross’ geese): October 1September 30 through October 98 and October 2221 through January 27, 201724, 2018.    .(4) Season dates - Missouri River zone.  Dark geese (Canada geese, white-fronted geese, brant and any other geese that are not light geese): October 87 through October 1615 and October 2221 through January 18, 201715, 2018. Light geese (white and blue-phase snow geese and Ross’ geese): October 87 through October 1615 and October 2221 through January 27, 201724, 2018.    .(5) Bag limit.  The daily bag limit for dark geese (Canada geese, white-fronted geese, brant and any other geese that are not light geese) is 5 and may include no more than 2 Canada geese from September 2423 through October 31 and no more than 3 Canada geese from November 1 through the end of the season. The daily bag limit for light geese (white and blue-phase snow geese and Ross’ geese) is 20.

    ITEM 3.    Amend subrules 91.3(8) to 91.3(11) as follows:    .(8) Light goose conservation order season.  Only light geese (white and blue-phase snow geese and Ross’ geese) may be taken under a conservation order from the U.S. Fish and Wildlife Service from January 28, 201725, 2018, through April 15, 20172018.    a.    Zone boundaries.Statewide.    b.    Shooting hours.One-half hour before sunrise to one-half hour after sunset.    c.    Bag limit.No bag limit.    d.    Possession limit.No possession limit.    e.    Other regulations.Methods of take approved by the U.S. Fish and Wildlife Service for hunting light geese during the conservation order season shall be permitted.    .(9) Cedar Rapids/Iowa City goose hunting zone.      a.    Season dates.September 32 through September 1110.    b.    Bag limit.Daily bag limit is 5 Canada geese.    c.    Possession limit.Three times the daily bag limit.    d.    Zone boundary.The Cedar Rapids/Iowa City goose hunting zone includes portions of Linn and Johnson Counties bounded as follows: Beginning at the intersection of the west border of Linn County and Linn County Road E2W; thence south and east along County Road E2W to Highway 920; thence north along Highway 920 to County Road E16; thence east along County Road E16 to County Road W58; thence south along County Road W58 to County Road E34; thence east along County Road E34 to Highway 13; thence south along Highway 13 to Highway 30; thence east along Highway 30 to Highway 1; thence south along Highway 1 to Morse Road in Johnson County; thence east along Morse Road to Wapsi Avenue; thence south along Wapsi Avenue to Lower West Branch Road; thence west along Lower West Branch Road to Taft Avenue; thence south along Taft Avenue to County Road F62; thence west along County Road F62 to Kansas Avenue; thence north along Kansas Avenue to Black Diamond Road; thence west on Black Diamond Road to Jasper Avenue; thence north along Jasper Avenue to Rohert Road; thence west along Rohert Road to Ivy Avenue; thence north along Ivy Avenue to 340th Street; thence west along 340th Street to Half Moon Avenue; thence north along Half Moon Avenue to Highway 6; thence west along Highway 6 to Echo Avenue; thence north along Echo Avenue to 250th Street; thence east on 250th Street to Green Castle Avenue; thence north along Green Castle Avenue to County Road F12; thence west along County Road F12 to County Road W30; thence north along County Road W30 to Highway 151; thence north along the Linn-Benton County line to the point of beginning.    .(10) Des Moines goose hunting zone.      a.    Season dates.September 32 through September 1110.    b.    Bag limit.Daily bag limit is 5 Canada geese.    c.    Possession limit.Three times the daily bag limit.    d.    Zone boundary.The Des Moines goose hunting zone includes those portions of Polk, Warren, Madison and Dallas Counties bounded as follows: Beginning at the intersection of Northwest 158th Avenue and County Road R38 in Polk County; thence south along County Road R38 to Northwest 142nd Avenue; thence east along Northwest 142nd Avenue to Northeast 126th Avenue; thence east along Northeast 126th Avenue to Northeast 46th Street; thence south along Northeast 46th Street to Highway 931; thence east along Highway 931 to Northeast 80th Street; thence south along Northeast 80th Street to Southeast 6th Avenue; thence west along Southeast 6th Avenue to Highway 65; thence south and west along Highway 65 to Highway 69 in Warren County; thence south along Highway 69 to County Road G24; thence west along County Road G24 to Highway 28; thence southwest along Highway 28 to 43rd Avenue; thence north along 43rd Avenue to Ford Street; thence west along Ford Street to Filmore Street; thence west along Filmore Street to 10th Avenue; thence south along 10th Avenue to 155th Street in Madison County; thence west along 155th Street to Cumming Road; thence north along Cumming Road to Badger Creek Avenue; thence north along Badger Creek Avenue to County Road F90 in Dallas County; thence east along County Road F90 to County Road R22; thence north along County Road R22 to Highway 44; thence east along Highway 44 to County Road R30; thence north along County Road R30 to County Road F31; thence east along County Road F31 to Highway 17; thence north along Highway 17 to Highway 415 in Polk County; thence east along Highway 415 to Northwest 158th Avenue; thence east along Northwest 158th Avenue to the point of beginning.    .(11) Cedar Falls/Waterloo goose hunting zone.      a.    Season dates.September 32 through September 1110.    b.    Bag limit.Daily bag limit is 5 Canada geese.    c.    Possession limit.Three times the daily bag limit.    d.    Zone boundary.The Cedar Falls/Waterloo goose hunting zone includes those portions of Black Hawk County bounded as follows: Beginning at the intersection of County Roads C66 and V49 in Black Hawk County, thence south along County Road V49 to County Road D38, thence west along County Road D38 to State Highway 21, thence south along State Highway 21 to County Road D35, thence west along County Road D35 to Grundy Road, thence north along Grundy Road to County Road D19, thence west along County Road D19 to Butler Road, thence north along Butler Road to County Road C57, thence north and east along County Road C57 to U.S. Highway 63, thence south along U.S. Highway 63 to County Road C66, thence east along County Road C66 to the point of beginning.

    ITEM 4.    Amend subrule 91.4(1) as follows:    91.4(1) Waterfowl and coots.  There shall be no open season for ducks, coots and geese on the east and west county road running through sections 21 and 22, township 70 north, range 43 west, Fremont County; three miles of U.S. Highway 30, located on the south section lines of sections 14, 15, and 16, township 78 north, range 45 west, Harrison County; on the county roads immediately adjacent to, or through, Union Slough National Wildlife Refuge, Kossuth County; Louisa County Road X61 from the E-W centerline of section 29, township 74 north, range 2 west, on the south, to the point where it crosses Michael Creek in section 6, township 74 north, range 2 west, on the north, and also all roads through or adjacent to sections 7, 18, and 19 of this same township and roads through or adjacent to sections 12 and 13, township 74 north, range 3 west; the levee protecting the Green Island Wildlife Area from the Mississippi River in Jackson County wherever the levee is on property owned by the United States or the state of Iowa; certain dikes at Otter Creek Marsh, Tama County, where posted as such; and the NE¼, section 23, and the N½, section 24, all in township 70 north, range 19 west, Appanoose County, including county roads immediately adjacent thereto; and all privately owned lands in the S½, section 30, township 71 north, range 20 west, Lucas County, including the county road immediately adjacent thereto; Cerro Gordo County Road S14 and its right-of-way, between its junction with U.S. Highway 18 and County Road B-35, and portions of Clear Lake and Ventura Marsh, where posted as such in Cerro Gordo County; that portion of Summit Lake located south of State Highway 25 in the west half of the NW¼ of section 2 (22 acres), and the west half of section 3 (100 acres), T72N, R31W in Union County; and within 300150 feet of the center of the Army Road from New Albin to the boat ramp on the Mississippi River in sections 11 and 12, T100N, R4W, and sections 7 and 8, T100N, R3W, as posted.

    ITEM 5.    Amend rule 571—91.6(481A) as follows:

571—91.6(481A) Youth waterfowl hunt.  A special youth waterfowl hunt will be held on September16 and 17 and 18 in the north duck hunting zone, September23 and 24 and 25 in the south duck hunting zone, andSeptember 30 and October 1 and 2 in the Missouri River duck hunting zone. Youth hunters must be residents of Iowa as defined in Iowa Code section 483A.1A and less than 16 years old. Each youth hunter must be accompanied by an adult 18 years old or older. The youth hunter does not need to have a hunting license or stamps. The adult must have a valid hunting license and habitat stamp if normally required to have them to hunt and a state waterfowl stamp. Only the youth hunter may shoot ducks, geese and coots. The adult may hunt for any other game birds for which the season is open. The daily bag and possession limits are the same as for the regular waterfowl season, as defined in rule 571—91.1(481A). All other hunting regulations in effect for the regular waterfowl season apply to the youth hunt.

    ITEM 6.    Amend rule 571—97.6(481A) as follows:

571—97.6(481A) Dove season.  Open season for hunting mourning doves and Eurasian collared-doves shall begin on September 1 and continue for 7090 consecutive days. Shooting hours shall be from one-half hour before sunrise to sunset each day. Daily bag limit is 15; possession limit is 45. The entire state is open.

    ITEM 7.    Amend rule 571—102.2(481A) as follows:

571—102.2(481A) Migratory bird regulations.  Seasons and limits for taking migratory birds by means of falconry shall be as follows:    102.2(1) Ducks and coots.  The season for taking ducks and coots statewide by means of falconry may vary among duck hunting zones. Falconry seasons for ducks and coots shall be open whenever the conventional (gun) duck and coot hunting season is open in each zone, as described in rules 571—91.1(481A) and 571—91.2(481A), and shall also be open beginning December 15the first Saturday in January in each zone and remain open until the combined total of the conventional hunting season days plus falconry hunting season days reaches 107 for the zone or February 28, whichever occurs first.    102.2(2) Geese.  The season for taking geese by means of falconry may vary among goose hunting zones. Falconry seasons for white-fronted geese and light geese (white and blue-phase snow geese and Ross’ geese) shall begin each year on the first day of the conventional (gun) hunting season for these geese in each zone, as described in rule 571—91.3(481A), and continue in each zone for 107 consecutive days. Falconry seasons for Canada geese and brant shall be open concurrently with the conventional (gun) hunting season for these geese as well as any days between the first, second, or third segments of the conventional (gun) hunting season for Canada geese and brant.    102.2(3) Rails, snipe and woodcock.  The seasons for taking rails, snipe and woodcock by means of falconry shall begin each year on the first day of the conventional (gun) hunting seasons for these species, as described in rules 571—97.1(481A), 571—97.2(481A), and 571—97.3(481A), and continue for 107 consecutive days. The entire state is open for these species.    102.2(4) Hawking hours and limits.  Hawking hours for migratory game birds are one-half hour before sunrise to sunset. The daily bag limit shall include no more than three migratory game birds, singly or in aggregate. The possession limit is twicethree times the daily bag limit. There are no hawking hour restrictions for nonmigratory game during the legal season.
ARC 2942CRevenue Department[701]Notice of Intended Action

Twenty-five interested persons, a governmental subdivision, an agency or association of 25 or more persons may demand an oral presentation hereon as provided in Iowa Code section 17A.4(1)“b.”

Notice is also given to the public that the Administrative Rules Review Committee may, on its own motion or on written request by any individual or group, review this proposed action under section 17A.8(6) at a regular or special meeting where the public or interested persons may be heard.

    Pursuant to the authority of Iowa Code sections 422.8, 422.13, 422.14, 422.16, 422.33, 422.36, 422.37, 422.68, 423.6, 423.33, 423.58, 423D.3, and 427.1, the Department of Revenue hereby gives Notice of Intended Action to amend Chapter 12, “Filing Returns, Payment of Tax, Penalty and Interest,” Chapter 32, “Receipts Exempt from Use Tax,” Chapter 39, “Filing Return and Payment of Tax,” Chapter 40, “Determination of Net Income,” Chapter 46, “Withholding,” Chapter 52, “Filing Returns, Payment of Tax, Penalty and Interest, and Tax Credits,” Chapter 53, “Determination of Net Income,” Chapter 54, “Allocation and Apportionment,” Chapter 80, “Property Tax Credits and Exemptions,” and Chapter 241, “Excise Taxes Not Governed by the Streamlined Sales and Use Tax Agreement,” and to adopt a new Chapter 242, “Facilitating Business Rapid Response to State-Declared Disasters,” Iowa Administrative Code.    These amendments are proposed as a result of 2016 Iowa Acts, Senate File 2306.    New Chapter 242 and the other proposed amendments facilitate the rapid response of businesses and workers to a disaster by providing that, notwithstanding any law to the contrary, an out-of-state business or an out-of-state employee that performs disaster and emergency-related work on critical infrastructure during a disaster response period due to a state-declared disaster is not subject to income tax, corporate income tax, use tax, equipment tax, property tax or tax filing, or permit or return requirements.    Interested persons may make written comments on the proposed amendments on or before March 7, 2017. Written comments on the proposed amendments should be directed by mail to the Policy Section, Policy and Communications Division, Department of Revenue, Hoover State Office Building, P.O. Box 10457, Des Moines, Iowa 50306-0457; or by e-mail to theresa.dvorak@iowa.gov. Persons who want to convey their views orally should contact the Policy Section, Policy and Communications Division, Department of Revenue by telephone at (515)281-3194 or in person at the Department of Revenue offices on the fourth floor of the Hoover State Office Building.    Requests for a public hearing must be received by March 7, 2017.    After analysis and review of this rule making, these rules do not have a fiscal impact, but the statutes that they implement do have a fiscal impact. The fiscal note for 2016 Iowa Acts, Senate File 2306, dated March 28, 2016, provides a projected impact on the General Fund of a revenue reduction of $189,000 in FY 2017 and $324,000 in FY 2018 and future fiscal years (https://www.legis.iowa.gov/docs/publications/FN/782026.pdf).    Any person who believes that the application of the discretionary provisions of these rules would result in hardship or injustice to that person may petition the Department for a waiver of the discretionary provisions, if any, pursuant to rule 701—7.28(17A).    After analysis and review of this rule making, the Department finds that these amendments are not likely to have a significant impact on jobs.    These amendments are intended to implement Iowa Code chapters 422, 423, 423D, and 427.    The following amendments are proposed.

    ITEM 1.    Amend rule 701—12.17(422) as follows:

701—12.17(422423) Purchaser liability for unpaid sales tax.  For sales occurring on and after March 13, 1986, if a purchaser fails to pay sales tax to a retailer required to collect the tax, the tax is payable by the purchaser directly to the department. The general rule is that the department may proceed against either the retailer or the purchaser for the entire amount of tax which the purchaser is, initially, obligated to pay the retailer. However, see 701—subrule 15.3(2) for a situation in which the obligation to pay the tax is imposed upon the purchaser alone.On or after January 1, 2016, see 701—Chapter 242 for a situation in which the obligation to pay the tax is not imposed on an out-of-state business operating within Iowa solely for the purpose of performing disaster or emergency-related work during a disaster response period as those terms are defined in Iowa Code section 29C.24.       This rule is intended to implement Iowa Code section 422.52423.33.

    ITEM 2.    Adopt the following new rule 701—12.20(423):

701—12.20(423) Collection, permit, and tax return exemption for certain out-of-state businesses.  On or after January 1, 2016, see 701—Chapter 242 for the requirement of an out-of-state business to obtain a sales or use tax permit, collect and remit sales and use tax, or make and file applicable sales or use tax returns when operating in Iowa solely for the purpose of performing disaster or emergency-related work during a disaster response period as those terms are defined in Iowa Code section 29C.24.       This rule is intended to implement Iowa Code section 423.58.

    ITEM 3.    Adopt the following new rule 701—32.14(423):

701—32.14(423) Exemption for tangible personal property brought into Iowa under Iowa Code section 29C.24.  On or after January 1, 2016, see 701—Chapter 242 for an exemption from use tax on tangible personal property purchased outside Iowa and brought into Iowa or used in Iowa to aid in the performance of disaster or emergency-related work during a disaster response period as those terms are defined in Iowa Code section 29C.24.       This rule is intended to implement Iowa Code section 423.6(17).

    ITEM 4.    Adopt the following new subrule 39.1(8):    39.1(8) Returns filed by out-of-state business or out-of-state employee performing disaster and emergency-related work during a disaster response period.  On or after January 1, 2016, see 701—Chapter 242 for filing requirements of an out-of-state business or out-of-state employee as defined in Iowa Code section 29C.24 who enter Iowa to perform disaster and emergency-related work during a disaster response period as those terms are defined in Iowa Code section 29C.24.

    ITEM 5.    Adopt the following new paragraph 40.16(4)"e":    e.    On or after January 1, 2016, see 701—Chapter 242 for allocation and apportionment of net income to Iowa by an out-of-state business or out-of-state employee who enters Iowa to perform disaster and emergency-related work during a disaster response period as those terms are defined in Iowa Code section 29C.24.

    ITEM 6.    Adopt the following new subrule 46.4(9):    46.4(9) Exemption from withholding of payments made to an out-of-state business or out-of-state employee due to state-declared disaster.  On or after January 1, 2016, see 701—Chapter 242 for withholding requirements of an out-of-state business or out-of-state employee who enters Iowa to perform disaster and emergency-related work during a disaster response period as those terms are defined in Iowa Code section 29C.24.

    ITEM 7.    Adopt the following new paragraph 52.1(6)"f":    f.    Out-of-state business performing work in Iowa due to state-declared disaster.On or after January 1, 2016, see 701—Chapter 242 for filing requirements for an out-of-state business who enters Iowa to perform disaster and emergency-related work during a disaster response period as those terms are defined in Iowa Code section 29C.24.

    ITEM 8.    Adopt the following new paragraph 53.15(4)"d":    d.    On or after January 1, 2016, see 701—Chapter 242 for requirements of an out-of-state business to be a part of an affiliated group filing an Iowa consolidated return that enters Iowa to perform disaster and emergency-related work during a disaster response period as those terms are defined in Iowa Code section 29C.24.

    ITEM 9.    Adopt the following new subrule 54.6(7):    54.6(7)   Allocation and apportionment of out-of-state business due to state-declared disaster. On or after January 1, 2016, see 701—Chapter 242 for allocation and apportionment of income derived from an out-of-state business that enters Iowa to perform disaster and emergency-related work during a disaster response period as those terms are defined in Iowa Code section 29C.24.

    ITEM 10.    Adopt the following new rule 701—80.32(427,428,433,434,435,437,438):

701—80.32(427,428,433,434,435,437,438) Property aiding in disaster or emergency-related work.  On or after January 1, 2016, see 701—Chapter 242 for assessment of property taxes by the department under Iowa Code sections 428.24 through 428.26, 428.28, and 428.29, or Iowa Code chapters 433, 434, 435, and 437 through 438, or by a local assessor, on property brought into Iowa to aid in the performance of disaster or emergency-related work during a disaster response period as those terms are defined in Iowa Code section 29C.24.This rule is intended to implement Iowa Code section 427.1(41).

    ITEM 11.    Amend rule 701—241.8(423D) as follows:

701—241.8(423D) Exemption.      241.8(1)   The sales price on the lease or rental of equipment to contractors for direct and primary use in construction is exempt from the tax imposed by this chapter.    241.8(2)   On or after January 1, 2016, see 701—Chapter 242 for an exemption on the sales price or purchase price of equipment purchased outside Iowa and brought into Iowa to aid in the performance of disaster or emergency-related work during a disaster response period as those terms are defined in Iowa Code section 29C.24.

    ITEM 12.    Adopt the following new 701—Chapter 242: CHAPTER 242FACILITATING BUSINESS RAPID RESPONSE TO STATE-DECLARED DISASTERS

701—242.1(29C) Purpose.  The Iowa department of revenue, the Iowa department of homeland security and emergency management and the secretary of state are authorized and tasked by the legislature to jointly administer and oversee mutual aid among the political subdivisions of Iowa, other states and the federal government and to ensure the state government and its departments and agencies facilitate the rapid response of businesses and workers in the state and other states to a disaster.

701—242.2(29C) Definitions.  For purposes of this chapter, the definitions from Iowa Code section 29C.24 are adopted by reference.

701—242.3(29C) Disaster or emergency-related work.      242.3(1) Out-of-state business.  On or after January 1, 2016, an out-of-state business conducting operations within the state solely for the purpose of performing disaster or emergency-related work during a disaster response period does not establish a level of presence that would subject the out-of-state business to any of the following:    a.    The requirement to collect and remit any tax imposed on another person.    b.    The requirement to file any related tax return or obtain any related tax permit.    c.    Income taxes imposed under Iowa Code chapter 422, divisions II and III, including the requirement to withhold and remit income tax from out-of-state employees under Iowa Code section 422.16 or to be included in a consolidated return under Iowa Code section 422.37.     d.    Allocation and apportionment of net income of the out-of-state business under Iowa Code section 422.8 or 422.33 to Iowa.    e.    Use tax under Iowa Code chapter 423 on tangible personal property purchased outside Iowa and brought into Iowa pursuant to this subrule if the tangible personal property does not remain in Iowa after the disaster response period ends.    f.    Equipment tax under Iowa Code chapter 423D on equipment purchased outside Iowa and brought into Iowa pursuant to this subrule if the equipment does not stay in Iowa after the disaster response period ends.    g.    Assessment of property taxes by the department under Iowa Code sections 428.1 through 428.26 and 428.29, or Iowa Code chapters 433, 434, 435, and 437 through 438, or by a local assessor under another provision of law, on property brought into the state pursuant to this subrule if the property does not remain in Iowa after the disaster response period ends.    242.3(2) Out-of-state employee.  On or after January 1, 2016, the performance of disaster or emergency-related work during a disaster response period by an out-of-state employee is not a basis to determine that the out-of-state employee has established residency or a level of presence in Iowa that would subject the out-of-state employee to any of the following:    a.    The requirement to complete or obtain any state or local registration, license, or similar authorization as a condition of doing business in Iowa or engaging in an occupation in Iowa, or to pay any related fee.    b.    The income tax imposed under Iowa Code chapter 422, division II, the requirement to file tax returns under Iowa Code section 422.13 and the requirement to be subject to withholding under Iowa Code section 422.16. The requirement to file any related tax return or obtain any related tax permit.    c.    Allocation and apportionment of net income of the out-of-state employee under Iowa Code section 422.8 to Iowa shall not increase due to work performed by the out-of-state employee under this subrule.    d.    Use tax under Iowa Code chapter 423 on tangible personal property purchased outside Iowa and used in Iowa pursuant to this subrule if the tangible personal property does not remain in Iowa after the disaster response period ends.    e.    Equipment tax under Iowa Code chapter 423D on equipment purchased outside Iowa and used in Iowa pursuant to this subrule if the equipment does not stay in Iowa after the disaster response period ends.    f.    Assessment of property taxes by the department under Iowa Code sections 428.1 through 428.26 and 428.29, or Iowa Code chapters 433, 434, 435, and 437 through 438, or by a local assessor under another provision of law, on property brought into the state pursuant to this subrule if the property does not remain in Iowa after the disaster response period ends.    242.3(3) After the disaster response period ends.  On or after January 1, 2016, an out-of-state business or out-of-state employee remaining in Iowa after the disaster response period for which the disaster or emergency-related work was performed is responsible for all taxes, fees, registration, filing or other requirements the out-of-state business or out-of-state employee would have been subject to but for Iowa Code section 29C.24.       These rules are intended to implement Iowa Code sections 29C.24, 422.16, 422.37, 422.8, 422.36, 422.33, 422.13, 423.58, 423.33, 423.6, and 427.1.
ARC 2940CWorkers’ Compensation Division[876]Notice of Intended Action

Twenty-five interested persons, a governmental subdivision, an agency or association of 25 or more persons may demand an oral presentation hereon as provided in Iowa Code section 17A.4(1)“b.”

Notice is also given to the public that the Administrative Rules Review Committee may, on its own motion or on written request by any individual or group, review this proposed action under section 17A.8(6) at a regular or special meeting where the public or interested persons may be heard.

    Pursuant to the authority of Iowa Code section 86.8, the Workers’ Compensation Commissioner hereby gives Notice of Intended Action to amend Chapter 8, “Substantive and Interpretive Rules,” Iowa Administrative Code.    This proposed amendment updates references to the tables which determine payroll taxes, as required by Iowa Code section 85.61(6).    Any interested person may make written or oral suggestions or comments on the proposed amendment on or before March 7, 2017, to Heather Palmer, Division of Workers’ Compensation, 1000 East Grand Avenue, Des Moines, Iowa 50319; telephone (515)725–4120. Comments may be sent electronically to heather.palmer@iwd.iowa.gov.    The Division has determined that this amendment will have no fiscal impact. Therefore, no fiscal impact statement accompanies this rule making.    The Division has determined that this amendment will have no impact on small business within the meaning of Iowa Code section 17A.4A.    This amendment does not include a waiver provision because rule 876—12.4(17A) provides the specified situations for waiver of Workers’ Compensation Division rules.    After analysis and review of this rule making, no impact on jobs has been found.    This amendment is intended to implement Iowa Code section 85.61(6).    The following amendment is proposed.

    ITEM 1.    Amend rule 876—8.8(85,17A) as follows:

876—8.8(85,17A) Payroll tax tables.  Tables for determining payroll taxes to be used for the period July 1, 20162017, through June 30, 20172018, are the tables in effect on July 1, 20162017, for computation of:
  1. Federal income tax withholding according to the percentage method of withholding for weekly payroll period. (Internal Revenue Service, Employer’s Supplemental Tax Guide, Publication 15-A [20152016].)
  2. Iowa Withholding Tax Guide. (Iowa Department of Revenue Iowa Withholding Tax Rate Tables [Effective April 1, 2006].)
  3. Social Security and Medicare withholding (FICA) at the rate of 7.65 percent. (Internal Revenue Service, Circular E, Employer’s Tax Guide, Publication 15 [20152016].)
       This rule is intended to implement Iowa Code section 85.61(6).
ARC 2943CCollege Student Aid Commission[283]Adopted and Filed

    Pursuant to the authority of Iowa Code section 261.3, the Iowa College Student Aid Commission hereby adopts amendments to Chapter 8, “All Iowa Opportunity Scholarship Program,” and Chapter 35, “Iowa Teacher Shortage Loan Forgiveness Program,” Iowa Administrative Code.    The amendment to Chapter 8 corrects an Iowa Administrative Code reference.    The amendments to Chapter 35 provide a definition of “eligible school or agency” and strengthen and update the definition of “teacher.” In addition, for technical purposes, numbered paragraphs “1” to “4” are renumbered as subrules 35.3(1) to 35.3(4) in Item 3.    Notice of Intended Action was published in the Iowa Administrative Bulletin on August 17, 2016, as ARC 2677C. To address comments received, the Commission has not adopted original Item 1 from the Notice of Intended Action, which proposed to amend 8.3(1)“a” concerning the strengthening of the definition of “high school.” The Commission will review those comments and, if necessary, submit a new Notice of Intended Action to address further changes to Chapter 8.    The Commission does not intend to grant waivers under the provisions of these rules.    After analysis and review of this rule making, the Commission finds that there is no impact on jobs.    These amendments are intended to implement Iowa Code chapter 261.    These amendments will become effective on March 22, 2017.    The following amendments are adopted.

    ITEM 1.    Amend subrule 8.4(6) as follows:    8.4(6) Renewal.  Applicants must complete and file annual applications (FAFSAs) for the all Iowa opportunity scholarship program by the deadline established by the commission. If funds remain available after the application deadline, the commission will continue to accept applications. To be eligible for renewal, a recipient must maintain satisfactory academic progress as defined by the eligible college or university and must not have exceeded the funding limit as described in 8.4(6)8.4(3).

    ITEM 2.    Amend rule 283—35.2(261) as follows:

283—35.2(261) Definitions.  As used in this chapter:        "Eligible school or agency" means a public school district, area education agency, charter school, or accredited nonpublic school recognized and approved by the Iowa department of education.        "Shortage area" means a geographic or subject area in which there existsa teacher shortagesshortage as determined annually by the director of the Iowa department of education.        "Teacher" means an individual holding a practitioner’s licenseor a statement of professional recognition issued by the Iowa board of educational examiners,under Iowa Code chapter 272 and who is employed in a nonadministrative position in a designated shortage area by a school district or area education agencypursuant to a contract issued by a board of directors under Iowa Code section 279.13.“Teacher” also includes a preschool teacher who is licensed by the board of educational examiners under Iowa Code chapter 272 and is employed by an eligible school or agency.Further, a teacher is a licensed member of a school’s instructional staff who diagnoses, prescribes, evaluates, and directs student learning in a manner consistent with professional practice and school objectives, shares responsibility for the development of an instructional program and any coordinating activities, evaluates or assesses student progress before and after instruction, and uses student evaluation or assessment information to promote additional student learning.

    ITEM 3.    Amend rule 283—35.3(261) as follows:

283—35.3(261) Eligibility requirements.      35.() 35.3(1)   1Applicants must be teaching in approved shortage areas at Iowa kindergarten through twelfth grade schools recognized and approved by the Iowa department of educationan eligible school or agency.    35.() 35.3(2)   2Applicants must complete and file annual applications for the Iowa teacher shortage loan forgiveness program by the deadline established by the commission. If funds remain available after the application deadline, the commission will continue to accept applications.    35.() 35.3(3)   3Applicants must annually complete and return to the commission affidavits of practice verifying that they are teaching in eligible teacher shortage areas.    35.() 35.3(4)   4Applicants must begin their first teaching jobs in Iowa on or after July 1, 2007.
    [Filed 1/26/17, effective 3/22/17][Published 2/15/17]Editor’s Note: For replacement pages for IAC, see IAC Supplement 2/15/17.
ARC 2944CEconomic Development Authority[261]Adopted and Filed

    Pursuant to the authority of Iowa Code sections 15.106A and 404A.6, the Economic Development Authority adopts a new Chapter 49, “Historic Preservation and Cultural and Entertainment District Tax Credits,” Iowa Administrative Code.    These rules govern the administration of the Historic Preservation and Cultural and Entertainment District Tax Credit program. The program was previously administered by the Department of Cultural Affairs (DCA) and the Department of Revenue. 2016 Iowa Acts, chapter 1109 (House File 2443), division V, passed by the General Assembly, brought the program under the administration of the Iowa Economic Development Authority (Authority) in consultation with DCA, effective August 15, 2016. The Authority will administer the tax credit portion of the program, while DCA will review the historic components of the project applications. The new rules are based on DCA’s existing rules, but with several changes, including: (1) changes required by 2016 Iowa Acts, House File 2443; (2) limits to developer fees that qualify for the credit; and (3) expansion of rules governing the CPA examination required for projects with final qualified rehabilitation expenditures over $100,000.    Notice of Intended Action was published in the Iowa Administrative Bulletin as ARC 2774C on October 12, 2016. The Authority received two comments. The first commenter requested that the term “implied notice” in subrule 49.17(3) be further defined or clarified. The Authority has reviewed this comment and determined that any further definition or clarification of this term may conflict with the same statutory language found in Iowa Code section 404A.3(4)“c”(3)(c).    The second commenter requested that the phrase “in all material respects” be added to the end of the first sentence in subparagraph 49.15(2)“d”(2). The Authority has reviewed this comment and determined that the addition of “in all material respects” appropriately clarifies the CPA examination requirement. For this reason, the Authority has decided to make this requested change.    The Authority made additional changes from the Notice in order to update references to Department of Revenue rules that were adopted in ARC 2928C (IAB 1/18/17) and in order to update the chapter implementation sentence to reflect the codification of 2016 Iowa Acts, House File 2443.     The Economic Development Authority Board adopted this amendment at its meeting held on January 20, 2017.     This rule making does not have any fiscal impact to the state of Iowa.    After analysis and review of this rule making, no impact on jobs has been found.    These rules are intended to implement Iowa Code chapter 404A.    These rules will become effective on March 22, 2017.    The following amendment is adopted.

    ITEM 1.    Adopt the following new 261—Chapter 49: CHAPTER 49HISTORIC PRESERVATION AND CULTURAL AND ENTERTAINMENT DISTRICT TAX CREDITS FOR PROJECTS REGISTERED ON OR AFTER AUGUST 15, 2016

261—49.1(303,404A) Purpose.  A historic preservation and cultural and entertainment district tax credit may be applied against the income tax imposed under Iowa Code chapter 422, division II, III, or V, or Iowa Code chapter 432 for qualified rehabilitation projects that have entered into and complied with an agreement with the economic development authority (hereinafter referred to as “the authority”) and complied with all applicable terms, laws, and rules. The program is administered by the authority with the assistance of the department of cultural affairs and the department of revenue. The general assembly has mandated that the authority, the department of cultural affairs and the department of revenue adopt rules to jointly administer Iowa Code chapter 404A. In general, the department of cultural affairs reviews historic preservation issues and evaluates whether projects comply with the prescribed historic standards for rehabilitation. Once the historical significance and description of rehabilitation have been approved, the authority enters into an agreement with the eligible taxpayer and issues a tax credit upon completion of all program requirements and verification of qualified rehabilitation expenditures. The department of revenue is responsible for administering tax credit transfers and processing tax credit claims. This chapter sets forth the administration of the program by the authority. The administrative rules for the department of cultural affairs’ administration of the program can be found in rules 223—48.22(404A) through 223—48.37(303,404A). The administrative rules for the department of revenue’s administration of the program may be found in rules 701—42.19(404A), 701—42.55(404A,422), 701—52.48(404A,422), and 701—58.10(404A,422).

261—49.2(404A) Program transition.  The 2016 general assembly made several changes to the historic tax credit program, including transferring the primary responsibility for the program’s administration to the authority in consultation with the department of cultural affairs. For projects registered prior to August 15, 2016, the program is administered by the department of cultural affairs and the department of revenue pursuant to the statutes and rules that apply to projects registered prior to August 15, 2016. On or after August 15, 2016, the program is administered by the economic development authority in consultation with the department of cultural affairs pursuant to Iowa Code chapter 404A. Chapter 49 applies to projects that are registered on or after August 15, 2016.

261—49.3(404A) Definitions.  The definitions listed in rules 223—1.2(17A,303) and 223—35.2(303) shall apply to terms as they are used throughout this chapter. In addition, for purposes of this chapter, unless the context otherwise requires:        "Agreement" means an agreement between an eligible taxpayer and the authority concerning a qualified rehabilitation project as provided in Iowa Code section 404A.3(3) and rule 261—49.14(404A).        "Applicant" means an eligible taxpayer described in rule 261—49.9(404A).        "Assessed value" means the value of the eligible property on the most current property tax assessment at the time that the relevant application or agreement is submitted or the agreement is signed, as applicable.        "Authority" means the economic development authority.        "Barn" means an agricultural building or structure, in whatever shape or design, which was originally used for the storage of farm products or feed or for the housing of farm animals, poultry, or farm equipment.        "Certificate" means a historic preservation and cultural and entertainment district tax credit certificate issued pursuant to Iowa Code section 404A.3(5).        "Commencement date" means the date set forth in the agreement, which date shall not be later than the end of the fiscal year in which the agreement is entered into.        "Commercial property" means property classified as commercial, industrial, railroad, utility, or multiresidential for property tax purposes under rules 701—71.1(405,427A,428,441,499B), 701—76.1(434), and 701—77.1(428,433,437,438).        "Completion date" means the date on which property that is the subject of a qualified rehabilitation project is placed in service, as that term is used in Section 47 of the Internal Revenue Code.        "Department" means the department of cultural affairs.        "Director" means the director of the economic development authority.        "Eligible taxpayer" means the fee simple owner of the property that is the subject of a qualified rehabilitation project, or another person who will qualify for the federal rehabilitation credit allowed under Section 47 of the Internal Revenue Code with respect to the property that is the subject of a qualified rehabilitation project.        "Federal rehabilitation credit" "federal credit" means the tax credit allowed under Section 47 of the Internal Revenue Code.        "Federal standards" means the U.S. Secretary of the Interior’s standards for rehabilitation set forth in 36 CFR Section 67.7.        "Government funding" "funding originating from a government" includes but is not limited to:
  1. Any funding the applicant received from a government; or
  2. Funding from a third party or a series of third parties where those funds originally came from a government or were derived from a government payment, grant, loan, tax credit or rebate or other government incentive; or
  3. Funding from a third party or a series of third parties where those funds are derived from, secured by, or otherwise received in anticipation of a government payment, grant, loan, tax credit or rebate or other government incentive.
        "Historically significant" means a property that is at least one of the following:
  1. Property listed on the National Register of Historic Places or eligible for such listing.
  2. Property designated as contributing to a district listed in the National Register of Historic Places or eligible for such designation.
  3. Property or district designated a local landmark by a city or county ordinance.
  4. A barn constructed prior to 1937.
        "Large project" means a qualified rehabilitation project with estimated final qualified rehabilitation expenditures of more than $750,000.        "Noncommercial property" means property other than “commercial property” as defined in this rule. “Noncommercial property” includes barns constructed prior to 1937.        "Nonprofit organization" means an organization described in Section 501 of the Internal Revenue Code unless the exemption is denied under Section 501, 502, 503, or 504 of the Internal Revenue Code. “Nonprofit organization” does not include a governmental body, as that term is defined in Iowa Code section 362.2.        "Placed in service" means the same as used in Section 47 of the Internal Revenue Code.        "Program" means the historic preservation and cultural and entertainment district tax credit program set forth in this chapter.        "Property" means the real property that is the subject of a “qualified rehabilitation project” or that is the subject of an application to become a qualified rehabilitation project.        "Qualified rehabilitation expenditures" "QREs" means expenditures that meet the definition of “qualified rehabilitation expenditures” in Section 47 of the Internal Revenue Code and as described in rule 261—49.4(404A).         "Qualified rehabilitation project" "project" means a project for the rehabilitation of property in this state that meets all of the following criteria:
  1. The property is historically significant as defined in this rule.
  2. The property meets the federal standards as defined in this rule.
  3. The project is a substantial rehabilitation as defined in this rule.
        "Related entities" means any entity owned or controlled in whole or in part by the applicant; any person or entity that owns or controls in whole or in part the applicant; or any entity owned or controlled in whole or in part by any current or prospective officer, principal, director, or owner of the applicant.        "Related persons" means any current or prospective officer, principal, director, member, shareholder, partner, or owner of the applicant.        "SHPO" means the state historic preservation office at the department of cultural affairs.        "Small project" means a qualified rehabilitation project with estimated final qualified rehabilitation expenditures of $750,000 or less.        "Substantial rehabilitation" means qualified rehabilitation costs that meet or exceed the following:
  1. In the case of commercial property, costs totaling at least 50 percent of the assessed value of the property, excluding the land, prior to the rehabilitation or at least $50,000, whichever is less; or
  2. In the case of noncommercial property, costs totaling at least $25,000 or 25 percent of the assessed value, excluding the land, prior to rehabilitation, whichever is less.
        "Tax credit" "historic tax credit" means the historic preservation and cultural and entertainment district tax credit established in Iowa Code chapter 404A.

261—49.4(404A) Qualified rehabilitation expenditures.      49.4(1) Definition.  "Qualified rehabilitation expenditures" or "QREs" means expenditures that meet the definition of “qualified rehabilitation expenditures” in Section 47 of the Internal Revenue Code and are specified in the agreement.    49.4(2) Expenditures incurred by nonprofit organizations.  Notwithstanding the foregoing subrule, expenditures incurred by an eligible taxpayer that is a nonprofit organization shall be considered “qualified rehabilitation expenditures” if they are any of the following:    a.    Expenditures made for structural components, as that term is defined in Treasury Regulation §1.48-1(e)(2).    b.    Expenditures made for architectural and engineering fees, site survey fees, legal expenses, insurance premiums, and development fees.    49.4(3) What expenditures qualify.  “Qualified rehabilitation expenditures” may include:     a.    Expenditures incurred prior to the date an agreement is entered into under Iowa Code section 404A.3(3). The amount of the historic tax credit is a maximum of 25 percent of the qualified rehabilitation expenditures verified by the authority following project completion, up to the amount specified in the agreement between the eligible taxpayer and the authority.     b.    Reasonable developer fees. The authority may establish limits on developer fees and may adjust those limits. Any adjustment made to the established limit shall take effect 24 months after the adjustment is published on the authority’s Web site. Developer fees that are qualified rehabilitation expenditures and that meet the limits effective at the time the registration application is submitted shall be deemed reasonable by the authority.    49.4(4) Government financing.  “Qualified rehabilitation expenditures” does not include those expenditures financed by federal, state, or local government grants or forgivable loans unless otherwise allowed under Section 47 of the Internal Revenue Code. For an eligible taxpayer that is not eligible for the federal rehabilitation credit, expenditures financed with federal, state, or local government grants or forgivable loans are not qualified rehabilitation expenditures.

261—49.5(404A) Historic preservation and cultural and entertainment district tax credit.       49.5(1) Tax credit.   An eligible taxpayer who has entered into and complied with an agreement under Iowa Code section 404A.3(3) and has complied with the program statutes and rules is eligible to claim a historic tax credit of 25 percent of the qualified rehabilitation expenditures of a qualified rehabilitation project that are specified in the agreement. Notwithstanding any other provision in Iowa Code chapter 404A, this chapter, or any provision in the agreement to the contrary, the amount of the tax credit shall not exceed 25 percent of the final qualified rehabilitation expenditures verified by the authority pursuant to Iowa Code section 404A.3(5)“c.”    49.5(2) Who may claim the credit.   The tax credit shall be allowed against the taxes imposed in Iowa Code chapter 422, divisions II, III, and V, and in Iowa Code chapter 432. An individual may claim a tax credit under this rule of a partnership, limited liability company, S corporation, estate, or trust electing to have income taxed directly to the individual. For an individual claiming a tax credit of an estate or trust, the amount claimed by the individual shall be based upon the pro rata share of the individual’s earnings from the estate or trust. For an individual claiming a tax credit of a partnership, limited liability company, or S corporation, the amount claimed by the partner, member, or shareholder, respectively, shall be based upon the amounts designated by the eligible partnership, S corporation, or limited liability company, as applicable.    49.5(3) Transferability.   Tax credit certificates issued under Iowa Code section 404A.3 may be transferred to any person. For information on transfer of tax credits under this program, see department of revenue rules 701—42.55(404A,422), 701—52.48(404A,422), and 701—58.10(404A,422).    49.5(4) Refundability and carryforward.   An eligible taxpayer or a transferee may elect to receive either a refundable or a nonrefundable tax credit. For information on refundable and nonrefundable tax credits, including the carryforward of nonrefundable tax credits, see department of revenue rules 701—42.55(404A,422), 701—52.48(404A,422), and 701—58.10(404A,422).    49.5(5) How to claim the tax credit.   For information on how to claim the tax credit, see department of revenue rules 701—42.55(404A,422), 701—52.48(404A,422), and 701—58.10(404A,422).

261—49.6(404A) Management of annual aggregate tax credit award limit.   The authority shall not register, as described in rule 261—49.13(404A), more projects in a given fiscal year for tentative awards than there are tax credits available for that fiscal year under Iowa Code section 404A.4. The authority will determine the projects for which sufficient tax credits are available based on the estimated qualified rehabilitation expenditures identified in the registration application, plus allowable cost overruns as described in paragraph 49.14(1)“c.”    49.6(1) Registration scoring.  If applicants’ total tax credit requests from a fiscal year allocation exceed the tax credit allocation for that fiscal year, the authority will prioritize its determinations based on the applicants’ registration scores. All registered projects must meet the minimum score as described in rule 261—49.13(404A). If there are no more projects that meet the minimum score as described in rule 261—49.13(404A), the authority may make the remaining tax credits available for small projects or allow the remaining tax credits for the fiscal year to carry forward to the succeeding fiscal year to the extent permitted by Iowa Code section 404A.4.    49.6(2) Registrations for future tax credit allocations.   Registrations for future tax credit allocations require a new application. When registering projects for a particular fiscal year, the authority shall not award, reserve, or register tax credits from future fiscal years’ tax credit allocations. An applicant whose project is not registered due to an insufficient score or noncompliance with the application or the program statute or rules may submit future applications for future fiscal year tax credit allocations.    49.6(3) Reallocation or rollover of available tax credit awards.   Tax credits may be reallocated or rolled over into future fiscal years to the extent permitted by Iowa Code section 404A.4.

261—49.7(404A) Application and agreement process, generally.      49.7(1)   All applications and other filings related to the program shall be on such forms and in accordance with such instructions as may be established by the authority. Information about the program and a link to the online application and instructions may be obtained by contacting the authority or by visiting the authority’s Web site: Iowa Economic Development AuthorityCommunity Development Division200 East Grand Avenue, Des Moines, Iowa 50309(515)725-3000http://iowaeconomicdevelopment.com/    49.7(2)   An application shall not be considered submitted for review until the application is completed and all required supporting documentation and information are provided.    49.7(3)   The application and agreement process consists of six steps:    a.    The applicant submits a Part 1 application to the authority, which is used to evaluate the property’s integrity and significance. The authority will consult with SHPO when reviewing the Part 1 application.     b.    Unless the Part 1 application is denied by the authority, the applicant participates in a preapplication meeting with SHPO and the authority to discuss what to expect for the remainder of the application process.    c.    If the Part 1 application is approved and the preapplication meeting is completed, the applicant submits a Part 2 application to the authority, which is used to evaluate the proposed rehabilitation work. The authority will consult with SHPO when reviewing the Part 2 application.    d.    If the Part 2 application is approved, the applicant submits a registration application to the authority, which is used to score the applicant’s rehabilitation plan and financial readiness. If the project is awarded a sufficient registration score, satisfies other requirements of the application and program, and sufficient tax credits are available, the authority may register the project.    e.    If the project is registered, the applicant may enter into an agreement with the authority that establishes the maximum amount of the tax credit award and the terms and conditions that must be met to receive the tax credits. An applicant must enter into and comply with an agreement in order to participate in the program and claim any tax credits.    f.    Once the project is completed and the property is placed in service, the applicant submits a Part 3 application to the authority, which is used to evaluate whether the completed work meets the federal standards and the other requirements of the agreement, laws, and regulations of the program. The authority will consult with SHPO when reviewing the Part 3 application.A more detailed description of each step is provided in rules 261—49.10(404A) through 261—49.15(404A).

261—49.8(404A) Small projects.   Projects with anticipated final qualified rehabilitation expenditures of more than $750,000 will be evaluated as large projects. Projects with $750,000 or less in anticipated final rehabilitation expenditures will be evaluated as small projects. If an applicant anticipates that the final qualified rehabilitation expenditures will exceed $750,000, the applicant may only submit its application as a large project. The authority will not permit a small project applicant to submit additional or amended applications that would cause the final qualified expenditures to exceed $750,000.    49.8(1) Small project fund.   The authority shall allocate at least 5 percent of its annual fiscal year tax credit award limit to small projects.    49.8(2) Aggregate award limit.   For applicants that receive credits from the small project allocation, the cumulative total award for multiple applications for a single property shall not exceed $750,000 in qualified rehabilitation expenditures plus any allowable cost overruns as described in paragraph 49.14(1)“c,” regardless of the final qualified rehabilitation expenditures. The authority will not accept an application by the same owner for a property for which credits were previously received through the small project fund if the application causes the cumulative total to exceed $750,000, plus any allowable cost overruns as described in paragraph 49.14(1)“c.”    49.8(3) Application and agreement process.   The Part 1, Part 2, and Part 3 application process and the agreement requirements are the same for small projects as for large projects. The registration process for small projects differs from that for large projects. See subrule 49.13(8) for more information on the registration process for small projects.

261—49.9(404A) Who may apply for the tax credit.   Only an eligible taxpayer may apply for the tax credit. To be an eligible taxpayer, the applicant must be either (1) the fee simple owner or (2) a person that will ultimately qualify for the federal rehabilitation credit with respect to the qualified rehabilitation project. A nonprofit organization as defined in rule 261—49.3(404A) may apply for the tax credit if the nonprofit organization is the fee simple owner of the property.    49.9(1) Applicants that are fee simple owners.   If the applicant qualifies as an eligible taxpayer on the basis that the applicant is the fee simple owner of the property, the applicant will be expected to provide proof of title as described in subrule 49.10(2).    49.9(2) Applicants that will qualify for the federal credit.   If the applicant qualifies as an eligible taxpayer on the basis that the applicant will qualify for the federal rehabilitation credit with regard to the property, the applicant will be asked to provide increasingly substantial evidence as described in subrules 49.10(2) and 49.12(1) that the applicant will qualify for the federal credit, culminating with proof of actual fee simple ownership or a long-term lease that meets the requirements of the federal rehabilitation credit before the agreement is entered into with the authority. Applicants that are eligible to apply under this subrule must obtain from the fee simple owner of the property a written statement which indicates that the owner is aware of the application and has no objection and include the statement with the application.    49.9(3) Who may not apply.   Government bodies as defined in Iowa Code section 362.2 may not apply. Additionally, an applicant may not initiate the application process to apply for tax credits by submitting a Part 1 application on a project if all of the work has been completed and the qualified rehabilitation project has already been placed in service.

261—49.10(404A) Part 1 application—evaluation of significance.   The Part 1 application is used to determine whether the property is eligible to be a qualified rehabilitation project.    49.10(1) Types of property that are eligible.   The property must meet the federal standards for historical significance.    49.10(2) Proof of status as eligible taxpayer.   The Part 1 application may be submitted to the authority by an eligible taxpayer as described in rule 261—49.9(404A).    a.    To prove the applicant is the fee simple owner, the applicant will be expected to provide title documentation. If the title is held in the name of an entity, the application must be accompanied by documentation which indicates that the signatory is the authorized representative of the entity.    b.    If the applicant is not the fee simple owner but plans to apply for the federal rehabilitation credit, the applicant must provide a copy of the approved federal Part 1 application, unless the property is individually listed on the National Register of Historic Places. The applicant must also certify that the applicant plans to apply and expects to qualify for the federal credit, and the applicant must provide proof of permission from the fee simple owner as described in subrule 49.9(2).    49.10(3) Submission period.   Part 1 applications may be submitted year-round.    49.10(4) Required information.   Applicants must provide the authority a site plan, pre-rehabilitation photographs of the property, a copy of the county assessor’s statement for the property, and such other information as the authority may require.    49.10(5) Review process.   The authority, in consultation with SHPO, will evaluate the appearance and condition of the building and verify the information provided by the applicant. The authority will notify the applicant if the Part 1 application is incomplete. Generally, the authority will review fully completed Part 1 applications within 90 calendar days of receipt. The 90-day review period will be adhered to as closely as possible; however, it is not mandatory. If the application is incomplete when submitted or if for any other reason the authority must request additional information, the 90-day review period will restart when the requested information is received by the authority. The application may be rejected if any requested information is not provided.    49.10(6) Response from the authority.   Upon completion of the review, the authority shall issue a determination regarding whether the property meets the requirements to be considered historically significant.    49.10(7) Period of validity.   A determination that the property meets the requirements to be considered historically significant shall be valid for five years from the issuance of the determination, provided that the property is maintained in a manner consistent with the federal standards and that the fee simple owner of the property remains the same during such period. Changes to the property that are not approved by the authority shall automatically invalidate the determination of historical significance, and reestablishment of the historical significance of the property as well as submittal of a new Part 1 application for a determination that the property is eligible shall be required.    49.10(8) Amendments.   An applicant shall amend an approved Part 1 application if the property changes ownership or if the applicant’s name or address changes prior to submission of a Part 2 application.

261—49.11(404A) Preapplication meeting.   The purpose of the preapplication meeting is to provide feedback to the applicant and other interested parties that will enable the applicant to better plan and prepare for submission of the Part 2 and registration applications.    49.11(1) Meeting requests.   Once the completed Part 1 application is submitted, the applicant may request a preapplication meeting by using the preapplication form, which may be obtained by contacting the authority or by visiting the authority’s Web site.    49.11(2) Timing of the preapplication meeting.   The meeting must take place no fewer than 30 days after the submission of the Part 1 application and prior to submission of the Part 2 application. Meetings may be held by telephone at the authority’s discretion.    49.11(3) Required information.   The applicant must bring at least the following items to the meeting: preliminary drawings, photographs of the exterior (all elevations) and interior, a preliminary list of character-defining features and treatments or a draft Part 2 application, and a list of questions for which specific guidance is needed. The authority may request additional information. If the preapplication meeting will be held by telephone, the required documents must be submitted electronically at least one week prior to the meeting date.

261—49.12(404A) Part 2 application—description of rehabilitation.   The purpose of the Part 2 application is to determine whether the proposed rehabilitation work meets the federal standards. The applicant must describe the rehabilitation work to be undertaken on the property. The review of the Part 2 application is a preliminary determination only and is not binding upon the authority. A formal certification of rehabilitation shall be issued only after the rehabilitation work is completed.    49.12(1) Proof of status as eligible taxpayer.   The Part 2 application must be submitted by an eligible taxpayer as described in rule 261—49.9(404A).    a.    An applicant that is the fee simple owner does not need to provide any additional information regarding ownership unless there has been a change in ownership since the Part 1 application was approved.     b.    If the applicant is not the fee simple owner but plans to apply for the federal rehabilitation credit, the applicant must provide a copy of the signature page of the approved federal Part 2 application signed by the National Park Service. The applicant must also certify that the applicant plans to apply and expects to qualify for the federal credit and must provide proof of permission from the fee simple owner as described in subrule 49.9(2).    49.12(2) Submission period.   Part 2 applications may be submitted at any time after the project has received an approved Part 1 and the applicant has participated in the preapplication meeting.    49.12(3) Required information.      a.    The applicant must provide any information requested by the authority, including but not limited to:    (1)   A detailed description of the rehabilitation;    (2)   An estimate of the total costs related to the rehabilitation and other work to be completed on the property, regardless of whether the costs will ultimately be qualified rehabilitation costs;    (3)   An estimate of the qualified rehabilitation expenditures; and    (4)   Photographs.    b.    The applicant must also identify whether the applicant plans to submit a registration application as a small project or a large project. For more information on the differences in the registration application process for large projects and small projects, see rule 261—49.8(404A).    49.12(4) Review process.   The authority, in consultation with SHPO, will evaluate the proposed work to determine whether the proposed project, including any new construction, is consistent with the federal standards, the historic character of the property and, where applicable, the registered or potential district in which the property is located. The authority will notify the applicant if the Part 2 application is incomplete. Generally, the authority will review fully completed Part 2 applications within 60 calendar days of receipt. The 60-day review period will be adhered to as closely as possible; however, it is not mandatory. If the application is incomplete when submitted or if for any other reason the authority must request additional information, the 60-day review period will restart when the requested information is received by the authority. The application may be rejected if any requested information is not provided.    49.12(5) Response from the authority.   The review of the complete Part 2 application shall result in one of three responses:    a.    Approval.The project is eligible to submit a registration application because the proposed rehabilitation described in the application is consistent with the historic character of the property or of the district in which the property is located and the project, as proposed, appears to meet the federal standards;    b.    Approval with conditions.The project is eligible to submit a registration application because the proposed rehabilitation described in the application will likely meet the federal standards if the stipulated conditions are met; or    c.    Denial.The rehabilitation described in Part 2 of the application is not consistent with the historic character of the property or of the district in which the property is located and the project does not meet the federal standards. The project is ineligible for registration. The project may amend its Part 2 application or submit a new Part 2 application for the property.    49.12(6) Amendments.   Deviation from the original rehabilitation proposal could result in the denial of final project approval and revocation of the tax credit award. An applicant shall amend an approved Part 2 application to notify the authority of, and to request review of, modifications to or deviations from the original rehabilitation proposal. Applicants that undertake any work not in the original approved Part 2 application without approval of the authority do so at their own risk. Amendments to the Part 2 application shall not result in the awarding of additional tax credits for the project and may result in a reduction in the tax credit award specified in the agreement if the authority determines that the work is not consistent with the federal standards or does not otherwise comply with the requirements of the agreement. Amendments to the Part 2 application will not be accepted after the authority has approved the Part 3 application pursuant to rule 261—49.15(404A). Amendments must be submitted on forms approved by the authority and may be obtained by contacting the authority or by visiting the authority’s Web site.

261—49.13(404A) Registration application.   If the authority has approved Part 1 and Part 2 applications for a project, the applicant may submit a historic tax credit registration application to the authority during the applicable registration period. The registration application is used to determine whether the project is ready to proceed both financially and logistically. The registration application is also used to confirm whether the proposed work will meet the substantial rehabilitation test and whether the project is a small project or a large project. The registration application is also used to obtain background information, including information that may disqualify an applicant from participating in the program, as well as other information about the applicant, related persons, and related entities. Though the application process is largely the same for small projects as it is for large projects, there are some differences. For details on those differences, see rule 261—49.8(404A).    49.13(1) Proof of status as eligible taxpayer.   An eligible taxpayer as defined in rule 261—49.3(404A) may submit a registration application.    a.    An applicant that is the fee simple owner must notify the authority of any changes in ownership status since the Part 2 application was filed.    b.    If the applicant is not the fee simple owner but plans to apply for the federal rehabilitation credit, the applicant’s application will be scored based on the steps taken toward ownership as described in subrule 49.13(6). The applicant must certify that the applicant understands that the applicant will not qualify for any state historic tax credit if the applicant is not the fee simple owner or not otherwise an eligible taxpayer. The applicant must also provide proof of permission from the fee simple owner as described in subrule 49.9(2).    49.13(2) Submission period.   In general, applications for registration will only be accepted during the established application period, or periods, as identified by the authority on its Web site. However, applications for small project registration will be accepted year-round.    49.13(3) Required information.   The registration application must include the following information as well as any additional information the authority may request: total project cost, an estimated schedule of qualified rehabilitation expenditures and a schedule of all funding sources received or anticipated to be received that will be used to fund the project, including those funding sources used or that will be used to finance or reimburse both qualified rehabilitation expenditures and those expenditures not being claimed as qualified rehabilitation expenditures, along with supporting documentation. The schedule must identify all government funding as defined in rule 261—49.3(404A), including any funding that originated or will originate from any government, whether federal, state, or local.     49.13(4) Certification and release of information.   The applicant must identify and list all related persons and related entities, as those terms are defined in rule 261—49.3(404A). The applicant must release information requested by the authority regarding the applicant, related persons, and related entities. The applicant must also certify that all representations, warranties, documents, or statements made or furnished in connection with the registration application are true and accurate. The certification and release of information are intended to identify information that will disqualify an applicant from participating in the program or that may have an adverse impact on the project. The certification and release of information are also intended to provide the authority with information regarding the economic, ownership, and management realities related to the project by providing information about the actual persons and businesses affiliated with the applicant, the actual persons and businesses that will derive financial benefits from the project, and other businesses affiliated with the individuals involved with the project.    a.    The authority shall reject an application for registration if any of the following occurs or exists:    (1)   The applicant fails to answer the questions and provide all requested information and documents in a timely manner as required by the rules or the application or in a timely manner as otherwise requested by the authority.    (2)   The applicant provides false or inaccurate information or documents to the authority.    (3)   The applicant, a related person, or a related entity has not filed any local, state, or federal tax returns that are due. This provision shall not apply to an applicant, related person, or related entity that has timely filed an extension to file a local, state or federal tax return.    (4)   The applicant, a related person, or a related entity has any overdue local, state, or federal tax liability, including any tax, interest, or penalty.    (5)   The applicant, a related person, or a related entity is currently in default, has an uncured breach, or is otherwise not in compliance with any contract, grant award, or tax credit program with the state of Iowa, any agency of the state of Iowa, or any other entity or instrumentality of the state of Iowa.    (6)   The applicant, a related person, or a related entity has any overdue amounts owed to the state of Iowa, any agency of the state of Iowa, any other entity or instrumentality of the state of Iowa, or any person or entity that is eligible to submit claims to the state offset system under Iowa Code section 8A.504.    (7)   The authority determines that registering the project, entering into an agreement with the authority, or permitting the applicant’s tax credit claim would cause the applicant or another person to default on, breach, or otherwise not comply with any contract, grant award, or tax credit program with the state of Iowa, any agency of the state of Iowa, or any other entity or instrumentality of the state of Iowa.    (8)   The authority determines that the applicant will not be able to provide representations, warranties, conditions, or other terms of an agreement that would be acceptable to the authority.    (9)   Information is disclosed to the authority that would cause the authority to decline to enter into an agreement with the applicant.    b.    Scope of inquiry. The authority may ask the applicant to disclose information and documents about other entities affiliated with the applicant, a related person, or a related entity if the authority determines that the information regarding the applicant, related persons, and related entities does not adequately disclose to the authority the economic, ownership, and management structure and realities related to a project.    49.13(5) Review period.   In general, the authority will review fully completed registration applications within 30 calendar days of receipt. The 30-day review period will be adhered to as closely as possible; however, it is not mandatory. If any answers, responses, explanations, documents, or other information submitted in connection with the certification and release of information changes after the applicant has submitted this information to the authority, the applicant must supplement its response to the certification and release of information in writing within 10 business days of the change. If the application is incomplete when submitted or if for any other reason the authority must request additional information, the 30-day review period will restart when the requested information is received by the authority. The authority may reject an application if any requested information is not provided.    49.13(6) Scoring process.   All completed applications will be reviewed and scored. In order for a project to be considered for registration, the application must meet a minimum score as established by the authority and set forth in the current registration application. Scoring of the application will take into account readiness criteria, which may include the following:    a.    Rehabilitation planning and project readiness. Projects will be scored based on whether the Part 2 application was approved with or without conditions.    b.    Secured financing. Weighted preference will be given to projects that have financing or equity or both in place.    c.    Steps taken towards ownership. Weighted preference will be given to the projects of applicants that are currently fee simple owners of the property.    d.    Local government support. Weighted preference will be given to projects that have received support from their local jurisdiction.    e.    Rehabilitation timeline. Weighted preference will be given to projects that will be completed in the shortest amount of time.    f.    Zoning and code review. Weighted preference will be given to the projects of applicants that can demonstrate a determination by the authority having jurisdiction that the project complies with the guidelines for construction permitting.    g.    Such other information as the authority may find relevant and request on the registration application.    49.13(7) Registration.   Upon reviewing and scoring all applications that are part of the application period, the authority may register the qualified rehabilitation projects to the extent sufficient tax credits are available based on the estimated qualified rehabilitation costs identified in the registration applications. Only projects that meet the minimum score established by the authority may be registered. As described in rule 261—49.6(404A), in the case of insufficient funding, preference will be given to the projects with the highest registration score based on the criteria in subrule 49.13(6). At the time the project is registered, the authority shall make a preliminary determination as to the amount of tax credits for which the project qualifies. The authority shall make best efforts to notify the applicant within 45 calendar days after the close of the registration period as to whether the applicant’s project has been registered. The registration notice shall include the amount of the applicant’s tentative tax credit award, along with a notice that the amount is a preliminary, nonbinding determination only. The authority will notify applicants whose projects were not registered and state whether the failure to register the project was due to the failure of the project to meet the minimum score, the lack of available tax credits, or another reason. A list of registered applicants will be posted by the authority on the authority’s Web site.     49.13(8) Small project registration application.   The authority may establish for small projects a registration application form and process that differ from the application form and process used for large projects. Small project application forms may be obtained by contacting the authority or by visiting the authority’s Web site. Small projects may submit registration applications year-round; however, the registration application must be submitted no later than 180 calendar days after receipt of approval of the Part 2 application from the authority. Small project registration applications will be evaluated on a first-come, first-served basis, subject to the availability of tax credits.

261—49.14(404A) Agreement.   Upon successful registration of the project as described in subrule 49.13(7) or 49.13(8), the eligible taxpayer shall have 120 calendar days or until the end of the fiscal year, whichever is less, to purchase or lease the property, if applicable, and enter into an agreement with the authority. Nothing in these rules shall affect the authority’s ability to comply with the annual award limitations described in Iowa Code section 404A.4. A condition precedent to any agreement will be proof that the eligible taxpayer is the actual fee simple owner or has a binding qualified long-term lease that meets the requirements of the federal rehabilitation credit. An eligible taxpayer shall not be eligible for historic tax credits unless the eligible taxpayer enters into an agreement with the authority concerning the qualifying rehabilitation project and satisfies the terms and conditions that must be met to receive the tax credit award.    49.14(1) Terms and conditions.   The agreement shall contain mutually agreeable terms and conditions, which shall, at a minimum, provide for the following:    a.    The maximum amount of the tax credit award. Notwithstanding anything in this chapter to the contrary, no tax credit certificate shall be issued until the authority verifies the amount of final qualified rehabilitation expenditures and compliance with all other requirements of the agreement, Iowa Code chapter 404A, and the applicable rules.    b.    The rehabilitation work to be performed. An eligible taxpayer shall perform the rehabilitation work consistent with the U.S. Secretary of the Interior’s standards for rehabilitation, as determined by the department.     c.    The budget of the qualified rehabilitation project, including the projected qualified rehabilitation expenditures, and those expenditures not qualified, and allowable cost overruns. The amount of allowable cost overruns provided for in the agreement shall not exceed the following amounts:    (1)   For a qualified rehabilitation project with estimated final qualified rehabilitation expenditures of not more than $750,000, 15 percent of the projected qualified rehabilitation expenditures provided for in the agreement.    (2)   For a qualified rehabilitation project with estimated final qualified rehabilitation expenditures of more than $750,000 but not more than $6 million, 10 percent of the projected qualified rehabilitation expenditures provided for in the agreement.    (3)   For a qualified rehabilitation project with estimated final qualified rehabilitation expenditures of more than $6 million, 5 percent of the projected qualified rehabilitation expenditures provided for in the agreement.    d.    A schedule of all funding sources received or anticipated to be received that will be used to fund the project, including those funding sources used or that will be used to finance or reimburse both qualified rehabilitation expenditures and those expenditures not being claimed as qualified rehabilitation expenditures, along with supporting documentation. The schedule must identify all government funding as defined in rule 261—49.3(404A), including any funding that originated or will originate from any government, whether federal, state, or local.    e.    The commencement date.    f.    The completion date.    g.    The agreement termination date, which shall not be earlier than five years from the date on which the tax credit certificate is issued.    h.    Such other terms, conditions, representations, and warranties as the authority may determine are necessary or desirable to protect the interests of the state.    49.14(2) Amendments.   The authority may for good cause amend an agreement. However, the authority may not amend an agreement to allow cost overruns in excess of the amount described in paragraph 49.14(1)“c.” In addition, the commencement date, completion date, and agreement termination date may not be amended if such an amendment would violate the statutorily prescribed time limits as described in Iowa Code section 404A.3(3). Any amendment approved by the authority shall be signed by both parties.    49.14(3) Authority.   Only the director or chief operating officer may enter into agreements on behalf of the authority. Any agreement entered into on behalf of the authority by a person other than the director or chief operating officer shall be void.

261—49.15(404A) Part 3 application—request for certification of completed work and verification of qualified rehabilitation expenditures.   Part 3 of the application is used to determine whether the project has complied with the terms of the agreement as well as with applicable laws, rules and regulations.    49.15(1) Submission period.   The fully completed Part 3 application must be submitted no more than 180 calendar days after the project completion date as defined in the agreement.    49.15(2) Required information.   The Part 3 application must include the following information:    a.    Certification that the eligible taxpayer is the fee simple owner or is qualified for the federal rehabilitation credit and has a binding qualified long-term lease that meets the requirements of the federal rehabilitation credit.    b.    Using the qualified rehabilitation expenditures schedule form provided by the authority, a schedule of total expenditures for the project, which shall identify in detail the final qualified rehabilitation expenditures and those expenditures that are not qualified. The qualified rehabilitation expenditures schedules form may be obtained by contacting the authority or by visiting the authority’s Web site.     c.    A schedule of all funding sources used to finance the project, including those funding sources used to finance or reimburse both qualified rehabilitation expenditures and expenditures not being claimed as qualified rehabilitation expenditures, along with supporting documentation. The schedule must identify all government funding as defined in rule 261—49.3(404A), including any funding that originated from any government, whether federal, state, or local.    d.    CPA examination.     (1)   An eligible taxpayer shall engage a certified public accountant authorized to practice in this state to conduct an examination of the project in accordance with the American Institute of Certified Public Accountants’ statements on standards for attestation engagements. The attestation applicable to this examination is SSAE No. 10 (as amended by SSAE Nos. 11, 12, 14), AT section 101 and AT section 601. Upon completion of the qualified rehabilitation project, the eligible taxpayer shall submit the examination to the authority, along with a statement of the amount of final qualified rehabilitation expenditures and any other information deemed necessary by the authority in order to verify that all requirements of the agreement, Iowa Code chapter 404A, and all rules adopted pursuant to Iowa Code chapter 404A have been satisfied.    (2)   The procedures used by the CPA to conduct the examination should allow the CPA to conclude that, in the CPA’s professional judgment, the qualified rehabilitation expenditures claimed are eligible pursuant to the agreement, Iowa Code chapter 404A, and all rules adopted pursuant to Iowa Code chapter 404A in all material respects. The documents reviewed by the CPA should be readily available to the authority upon request. The applicant should generally be able to provide the requested documents within 10 business days of a request from the authority.    (3)   The examination requirement is waived for an eligible taxpayer if the final qualified rehabilitation expenditures of the qualified rehabilitation project, as verified by the authority, do not exceed $100,000 and the qualified rehabilitation project is funded exclusively by private funding sources. The authority reserves the right to request any additional information necessary to verify the final qualified rehabilitation expenditures and, if deemed necessary by the authority, to require that such an eligible taxpayer engage a CPA to conduct an examination of the project pursuant to 49.15(23)“d.”    e.    Any other information deemed necessary by the authority in order to verify that all requirements of the agreement, Iowa Code chapter 404A, and all rules adopted pursuant to Iowa Code chapter 404A have been satisfied.     f.    Election to receive either a refundable or a nonrefundable tax credit. The taxpayer’s election does not impact a transferee’s ability to make its own election upon transfer. For information on transferring tax credits, see department of revenue rules 701—42.55(404A,422) and 701—52.48(404A,422).     g.    Any information the authority may require for program evaluation.    49.15(3) Review period.   The authority will make best efforts to review Part 3 applications within 60 calendar days after the application is filed. However, this time frame is not binding upon the authority. The authority shall review the information submitted by the eligible taxpayer and determine whether a tax credit certificate may be issued. See rule 261—49.17(404A) for more information on certificate issuance.

261—49.16(404A) Fees.  Applicants must pay a nonrefundable fee for the processing of Parts 2 and 3 of an application. The review fee for Part 2 will be due with the filing of the Part 2 application and will be based on the estimated qualified rehabilitation costs. The fee for review of Part 3 will be due with the filing of the Part 3 application and will be based on the final qualified rehabilitation expenditures. The fee schedule is as follows:For projects with qualified rehabilitation expenditures of:Part 2 Processing FeePart 3 Processing Fee$50,000 or lessNo costNo cost$50,001 to $100,000$250$250$100,001 to $750,000$500$500$750,001 to $6,000,000$1,0000.5 percent of final qualified rehabilitation expendituresOver $6,000,000$1,500$30,000

261—49.17(404A) Compliance.       49.17(1) Annual reports.   The eligible taxpayer shall, for the length of the agreement, annually certify to the authority compliance with the requirements of the agreement. The certification shall be due each year on the anniversary of the date upon which the agreement was entered into. Instructions and forms may be obtained by contacting the authority or by visiting the authority’s Web site.     49.17(2) Burden of proof.   The eligible taxpayer shall have the burden of proof to demonstrate to the authority that all requirements of the agreement, Iowa Code chapter 404A, and the applicable rules are satisfied. The taxpayer shall notify the authority in a timely manner of any changes in the qualification of the rehabilitation project or in the eligibility of the taxpayer to claim the tax credit provided under this chapter, or of any other change that may have a negative impact on the eligible taxpayer’s ability to successfully complete any requirement under the agreement.    49.17(3) Events of default, revocation, recapture.   If, after entering into the agreement but before a tax credit certificate is issued, the eligible taxpayer or the qualified rehabilitation project no longer meets the requirements of the agreement, Iowa Code chapter 404A, and the applicable rules, the authority may find the taxpayer in default and may revoke the tax credit award.    a.    Voluntary abandonment. An applicant may choose to irrevocably decline the tax credit that is the subject of the agreement at any time after the agreement is entered into. To irrevocably decline the tax credit, the applicant shall send a letter to the authority stating the applicant’s decision to irrevocably decline the tax credit. The authority shall notify the applicant by certified U.S. mail or courier that the tax credit has been irrevocably declined. The tax credit shall be reallocated to the extent permitted by Iowa Code section 404A.4. If the applicant wishes to apply for a tax credit on the same qualified rehabilitation project at a later date, the applicant must complete the application process as though the project is a new project.    b.    Revocation and recapture for prohibited activity; liability of certain transferees. If an eligible taxpayer obtains a tax credit certificate from the authority by way of a prohibited activity, the eligible taxpayer and any transferee shall be jointly and severally liable to the state for the amount of the tax credits so issued, interest and penalties allowed under Iowa Code chapter 422, and reasonable attorney fees and litigation costs, except that the liability of the transferee shall not exceed an amount equal to the amount of the tax credits acquired by the transferee. The department of revenue, upon notification or discovery that a tax credit certificate was issued to an eligible taxpayer by way of a prohibited activity, shall revoke any outstanding tax credit and seek repayment of the value of any tax credit already claimed, and the failure to make such a repayment may be treated by the department of revenue in the same manner as a failure to pay the tax shown due or required to be shown due with the filing of a return or deposit form. A qualifying transferee is not subject to the liability, revocation, and repayment imposed under this paragraph. For purposes of this paragraph:    (1)   "Control" means when a person, directly or indirectly or acting through or together with one or more persons, satisfies any of the following:
  1. Owns, controls, or has the power to vote 50 percent or more of any class of voting securities or voting membership interests of another person.
  2. Controls, in any manner, the election of a majority of the directors, managers, trustees, or other persons exercising similar functions of another person.
  3. Has the power to exercise a controlling influence over the management or policies of another person.
    (2)   "Prohibited activity" means a breach or default under the agreement with the authority, the violation of any warranty provided by the eligible taxpayer to SHPO or the authority, the claiming of a tax credit issued under this chapter for expenditures that are not qualified rehabilitation expenditures, the violation of any requirements of Iowa Code chapter 404A or rules adopted pursuant to Iowa Code chapter 404A, misrepresentation, fraud, or any other unlawful act or omission.    (3)   "Qualifying transferee" means a transferee who acquires a tax credit certificate issued under this chapter for value, in good faith, without express or implied notice of a prohibited activity of the eligible taxpayer who was originally issued the tax credit, and without express or implied notice of any other claim to or defense against the tax credit, and which transferee is not associated with the eligible taxpayer by being one or more of the following:
  1. An owner, member, shareholder, or partner of the eligible taxpayer who directly or indirectly owns and controls, in whole or in part, the eligible taxpayer.
  2. A director, officer, or employee of the eligible taxpayer.
  3. A relative of the eligible taxpayer or a person listed in paragraph “1” or “2” of this subparagraph or, if the eligible taxpayer or an owner, member, shareholder, or partner of the eligible taxpayer is a legal entity, the natural persons who ultimately own such legal entity.
  4. A person who is owned or controlled, in whole or in part, by a person listed in paragraph “1” or “2” of this subparagraph.
    (4)   "Relative" means an individual related by consanguinity within the second degree as determined by common law, a spouse, or an individual related to a spouse within the second degree as so determined, and includes an individual in an adoptive relationship within the second degree.

261—49.18(404A) Certificate issuance; claiming the tax credit.   After determining whether the terms of the agreement, Iowa Code chapter 404A, and the applicable rules have been met, the authority shall issue a tax credit certificate to the eligible taxpayer stating the amount of tax credit under Iowa Code section 404A.2 the eligible taxpayer may claim, or the authority shall issue a notice that the eligible taxpayer is not eligible to receive a tax credit certificate. The authority shall issue the tax credit certificate or the notice not later than 60 days following the completion of the examination review, if applicable, and the verifications required under this rule. Notwithstanding the foregoing, the eligibility of the tax credit remains subject to audit by the department of revenue in accordance with Iowa Code chapters 421 and 422. For information on how to claim the tax credit, see department of revenue rules 701—42.55(404A,422), 701—52.48(404A,422), and 701—58.10(404A,422).

261—49.19(303,404A) Appeals.  Any person wishing to contest an application denial, the amount of the tax credit award, award revocation, or any authority action that entitles the person to a contested case proceeding shall file an appeal, in writing, within 30 days of the action giving rise to the appeal. Any person who does not seek an appeal within 30 days of the action that gives rise to a right to a contested case proceeding shall be precluded from challenging the action. Appeals will be governed by the procedures set forth in this rule, together with the process set out in Iowa Code sections 17A.10 to 17A.19. Challenges to an action by the department of revenue related to tax credit transfers, claiming of tax credits, tax credit revocation, or repayment or recovery of tax credits must be brought pursuant to department of revenue 701—Chapter 7.    49.19(1) Contents.  The appeal shall contain the following in separate numbered paragraphs:    a.    A statement of the authority action giving rise to the appeal.    b.    The date of the authority action giving rise to the appeal.    c.    Each error alleged to have been committed, listed as a separate paragraph. For each error listed, an explanation of the error and all relevant facts related to the error shall be provided.    d.    Reference to the particular statutes, rules, or agreement terms involved, if known.    e.    A statement setting forth the relief sought.    f.    The signature of the person or that person’s representative and the mailing addresses, telephone numbers, and e-mail addresses of the person and the person’s representative.    49.19(2) Contested case proceedings.   The presiding officer in any contested case proceeding shall be an administrative law judge who specializes in tax matters.       These rules are intended to implement Iowa Code chapter 404A.
    [Filed 1/27/17, effective 3/22/17][Published 2/15/17]Editor’s Note: For replacement pages for IAC, see IAC Supplement 2/15/17.
ARC 2945CEducation Department[281]Adopted and Filed

    Pursuant to the authority of Iowa Code section 256.7(5), the State Board of Education hereby amends Chapter 24, “Community College Accreditation,” Iowa Administrative Code.    These amendments to Chapter 24 incorporate changes to the Department’s administrative rules that establish accreditation standards for Iowa’s community colleges. Several definitions are added to or amended under rule 281—24.3(260C). Several subrules and paragraphs in rule 281—24.5(260C) are revised, including those in which additional state standards pertaining to faculty qualifications, faculty load, and special needs are added. The amendments to subrule 24.5(1) align the Department’s standards for faculty with those of the Higher Learning Commission (HLC) (formerly the North Central Association of Colleges and Schools), the regional accrediting body for Iowa’s community colleges, whose standards have recently been revised and are effective September 1, 2017. New paragraph 24.5(1)“c” establishes a statewide task force to develop procedures, guidelines and documentation and ensures ongoing compliance with HLC standards. The amendment to paragraph 24.5(2)“b” lifts the daily restriction on the career and technical education faculty load (maximum 6 hours) and simply maintains the aggregate 30 contact hours per week. The amendments to subrule 24.5(3) change the catchwords of the subrule from “special needs” to “special needs and protected classes” to align with Office for Civil Rights language; the amendments also expand the standard by incorporating other categories protected by state or federal civil rights legislation. These amendments align the Iowa Department of Education’s accreditation processes with those of the HLC, the regional accrediting body.    An agencywide waiver provision is provided in 281—Chapter 4.    Notice of Intended Action was published in the December 7, 2016, Iowa Administrative Bulletin as ARC 2853C. Public comments were allowed until 4:30 p.m. on January 6, 2017. A public hearing was held on January 6, 2017. No one attended the public hearing. No comments were received. These amendments are nearly identical to those published under Notice. One change was made in subrule 24.5(4) to change the word “educational” to “education” for consistency.    After analysis and review of this rule making, no impact on jobs has been found.    These amendments are intended to implement Iowa Code sections 260C.47 and 260C.48.     These rules will become effective March 22, 2017.    The following amendments are adopted.

    ITEM 1.    Amend rule 281—24.3(260C) as follows:

281—24.3(260C) Definitions.  For purposes of interpreting rule 281—24.5(260C), the following definitions shall apply:        "Applied liberal arts and sciences course." An applied liberal arts and sciences course is a course that is classified as arts and sciences in Iowa’s common course numbering system and that primarily consists of hands-on or occupational skill development, including but not limited to accounting, ceramics, criminal investigation, dance, drama, music, photography, and physical education.        "Department." Department refers to the Iowa department of education.        "Director." Director refers to the director of the department.        "Field of instruction." The determination of what constitutes each fieldField of instruction should be based on accepted practices of regionally accredited two- and four-year institutions of higher educationindicates the discipline or occupational area within which an instructor teaches, which aligns with the content of the course being taught as indicated by the course prefix, title, or description.        "Full-time instructor." An instructor is considered to be full-time if the community college board of directors designates the instructor as full-time. Consideration of determiningDetermination of full-time status shall be based on local board-approved contracts.        "Higher Learning Commission." The Higher Learning Commission is theregional accrediting authority within the North Central Association of Colleges and Schoolsrecognized by the U.S. Department of Education. Iowa Code sections 260C.47 and 260C.48 require that the state accreditation process be integrated with that of the North Central Association of Colleges and SchoolsHigher Learning Commission.        "Instructors meeting minimum requirements." A community college instructor meeting the minimum requirements of Iowa Code Supplement section 260C.48(1) as amended by 2008 Iowa Acts, House File 2679, is an instructor under contract for at least half-time or more teaching college credit courses. Beginning July 1, 2011, a community college instructor meeting the minimum requirements is an instructor teaching college credit courses. Credit courses shall meet requirements as specified in rule 281—21.2(260C), and meet program requirements for college parallel, career and technical education, and career-option programs as specified in rule 281—21.4(260C) and Iowa Code chapter 260C.        "Joint enrollment." Joint enrollment refers to any community college credit course offered to students enrolled in a secondary school. Courses offered for joint enrollment include courses delivered through contractual agreements between school districts and community colleges, courses delivered through the postsecondary enrollment options program, and college credit courses taken independently by tuition-paying secondary school students.        "Minimum of 12 graduate hours." Full-time arts and sciences instructors must possess a master’s degree and complete a minimum of 12 graduate hours in their field of instruction. The 12 graduate hours may be within the master’s degree requirements or independent of the master’s degree, but all hours must be in the instructor’s field of instruction.        "Organization." Organization is synonymous with community college and is used in this chapter to align with accreditation terminology used by the Higher Learning Commission.        "Qualifying graduate field or major." A qualifying graduate field or major represents an academic discipline in which an instructor must have earned credit in order to teach courses in specified fields of instruction.        "Recent and relevant workRelevant tested experience." An hour of recent and relevant workRelevant tested experience is equal to 60 minutes. The community college shall determine what constitutes recent and relevantrefers to the breadth, depth, and currency of work experience that relates to the instructor’s occupational and teaching area. The college shall maintain documentation of the instructor’s educational and work experienceoutside of the classroom in real-world situations relevant to the field of instruction.

    ITEM 2.    Amend rule 281—24.5(260C), introductory paragraph, as follows:

281—24.5(260C) Accreditation components and criteria—additional state standards.  To be granted accreditation by the state board of education, an Iowa community college shall also meet additional standards pertaining to minimum or quality assurance standards for faculty (Iowa Code section 260C.48(1)); faculty load (Iowa Code section 260C.48(2)); special needsand protected classes (Iowa Code section 260C.48(3)); career and technical education program evaluation (Iowa Code section 258.4(7));facilities, parking lots and roads; strategic planning; quality faculty plan (Iowa Code section 260C.36); and senior year plus programs (Iowa Code chapter 261E).

    ITEM 3.    Amend subrule 24.5(1) as follows:    24.5(1) Faculty.      a.    Community college-employed instructors who are under contract for at least half-time or more, and by July 1, 2011, all instructors who teach in career and technical education or arts and sciencescollege credit courses shall meet minimum standardsand institutional quality faculty plan requirements. In accordance with Iowa Code Supplement section 260C.48(1) as amended by 2008 Iowa Acts, House File 2679, standardsStandards shall at a minimum require thatall community college instructors who are under contract for at least half-time or more, and by July 1, 2011, all instructors meet the following requirements:    a.    (1)   Instructorsteaching courses in the subject area of career and technical education shall be registered, certified, or licensed in the occupational area in which the state requires registration, certification, or licensure, and shall hold the appropriate registration, certificate, or license for the occupational area in which the instructor is teaching, and shall meet either of the following qualifications:
  1. (1)   APossess a baccalaureate or graduate degreeor higher in the area or a related area of study or occupational areafield of instruction in which the instructor is teaching classes.
  2. (2)   SpecialPossess a combination of education, training, and at least 6,000 hours of recent and relevant worktested experience in the occupational area or related occupational areafield of instruction in which the instructor teaches classes if. If the instructor possesses less than a baccalaureate degreeis a licensed practitioner who holds a career and technical endorsement under Iowa Code chapter 272, relevant work experience in the occupational area includes, but is not limited to, classroom instruction in a career and technical education subject area offered by a school district or accredited nonpublic school.
    b.    (2)   Instructors in the subject area of arts and sciences shall meet eitherone of the following qualifications:
  1. (1)   Possess a master’s degreeor higher from a regionally accredited graduate school, and have successfully completed a minimum of 12 credit hours of graduate level courses in each field of instruction in which the instructor is teaching classes.
  2. (2)   Have two or more years of successful experiencePossess a master’s degree or higher from a regionally accredited graduate school and have completed a minimum of 18 graduate semester hours in a professional field or areacombination of the qualifying graduate fields identified as related to the field of instruction in which the instructor is teaching classes and in which postbaccalaureate recognition or professional licensure is necessary for practice, including but not limited to the fields or areas of accounting, engineering, law, law enforcement, and medicine.These 18 graduate semester hours must include at least 6 credits in the specific course content being taught, with at least 12 credits required for courses that serve as prerequisites for junior-level courses at transfer institutions.For the transition period ending September 1, 2017, an instructor deemed qualified to teach with a master’s degree and 12 graduate semester hours within a field of instruction and who demonstrates adequate progress toward meeting the goals of the instructor’s individual quality faculty plan shall remain qualified to teach until the date specified in the quality faculty plan or September 1, 2017, whichever comes first.
  3.     For courses identified as applied liberal arts and sciences, possess at least a bachelor’s degree and a combination of formal training and professional tested experience equivalent to 6,000 hours. The instructor shall hold the appropriate registration, certification, or licensure in occupational areas in which such credential is necessary for practice.
    c.    b.    Developmental education and adult educationnoncredit instructors employed half-time or more may or may not meet minimum requirements depending on their teaching assignments and the relevancy ofare not subject to standards to the courses they are teaching and the transferability of such coursesunder this subrule. If instructors are teaching credit courses reported in arts and sciences or career and technical education, it is recommended that theseAdult education instructorsshall meet minimum standards set forth in 281—subrule 21.3(1), paragraph “a” or “b.”rule 281—23.6(260C). By July 1, 2011, all instructors teaching credit courses shall meet minimum standards.    c.    A faculty standards council shall be convened by the department to review procedures for establishing and reviewing minimum instructor qualifications and definitions for “field of instruction,” “applied liberal arts and sciences courses,” “qualifying graduate field or major,” and “relevant tested experience.” Definitions shall be based on accepted practices of regionally accredited two- and four-year institutions of higher education.    (1)   The council shall include faculty and academic administrators and meet at least annually. The council shall make recommendations to a committee consisting of the chief academic officers of Iowa’s 15 community colleges. The committee shall adopt definitions and minimum faculty qualification standards to be utilized for the state accreditation process. Each community college shall adhere to the adopted definitions and minimum faculty qualification standards.    (2)   When utilizing relevant tested experience to qualify an instructor to teach classes within a specific field of instruction, each community college shall maintain well-defined policies, procedures, and documentation in alignment with the adopted definitions and minimum faculty qualification standards. This documentation shall demonstrate that the instructor possesses the experience and expertise necessary to teach in the specified field of instruction and is current in the instructor’s discipline. When tested experience is assessed, an hour of relevant work is equal to 60 minutes and one full-time year of relevant work is equal to 2,000 hours.

    ITEM 4.    Amend paragraph 24.5(2)"b" as follows:    b.    Career and technical education.The full-time teaching load of an instructor in career and technical education programs shall not exceed 6 hours per day, and an aggregate of 30 hours per week or the equivalent. An instructor may also teach the equivalent of an additional 3 credit hours, provided the instructor consents to this additional assignment. When the teaching assignment includes classroom subjects (nonlaboratory), consideration shall be given to establishing the teaching load more in conformity with that of paragraph 24.5(2)“a.”

    ITEM 5.    Amend subrule 24.5(3) as follows:    24.5(3) Special needsand protected classes.  Community colleges shall provide equal access into the full range of program offerings and services including, but not limited to, recruitment, enrollment, and placement activities for students with disabilitiesspecial education needs or protected by state or federal civil rights regulations. Students with disabilities shall be given access to the full range of courseprogram offerings at a college through reasonable accommodations.

    ITEM 6.    Amend subrule 24.5(4), introductory paragraph, as follows:    24.5(4) Career and technical education evaluation.  The director of the department shallensure that Iowa’s community colleges annually review at least 20 percent of the approved career and technicaleducation programs as a basis for continuing approval. The community college career and technical program review and evaluation system must ensure that the programs:

    ITEM 7.    Amend paragraph 24.5(4)"c" as follows:    c.    Meet educational needs of the students and employment community, including students with disabilities, both male and female students, and students from diverse racial and ethnic groupsspecial education needs or protected by state or federal civil rights regulations.

    ITEM 8.    Amend paragraph 24.5(4)"g" as follows:    g.    Provide students with support services and eliminate access barriers to education and employment for both traditional and nontraditional students, men and women, persons from diverse racial and ethnic groups, and persons with disabilitiesstudents with special education needs or protected by state or federal civil rights regulations.

    ITEM 9.    Amend subparagraph 24.5(7)"b" as follows:    (9)   Compliance with the faculty accreditation standards of the North Central Association of Colleges and SchoolsHigher Learning Commission and with faculty standards required under specific programs offered by the community college that are accredited by other accrediting agencies. It is recommended that the plan provide for the uniform reports with substantiating data currently required for North Central Association of Colleges and SchoolsHigher Learning Commission accreditation.

    ITEM 10.    Amend subparagraph 24.5(7)"c" as follows:    (3)   Documentation submitted by the college that the college is implementing the approved plan, including, but not limited to, evidence of plan monitoring, evaluation and updating; evidence that the faculty has attained, or is progressing toward attaining, minimum competencies and standards contained in Iowa Code section 260C.48 as amended by 2008 Iowa Acts, House File 2679, and 2007 Iowa Acts, Senate File 588; evidence that faculty members have been notified of their progress toward attaining minimum competencies and standards; and evidence that the college meets the minimum accreditation requirements for faculty required by the North Central Association of Colleges and SchoolsHigher Learning Commission.    [Filed 1/20/17, effective 3/22/17][Published 2/15/17]Editor’s Note: For replacement pages for IAC, see IAC Supplement 2/15/17.
ARC 2946CEducation Department[281]Adopted and Filed

    Pursuant to the authority of Iowa Code section 256.7(21), the State Board of Education hereby adopts new Chapter 35, “Educational Standards and Program Requirements for Children’s Residential Facilities,” Iowa Administrative Code.    New Chapter 35 outlines the educational standards and program requirements for children’s residential facilities. 2016 Iowa Acts, chapter 1114 (Senate File 2304), addresses standards for and certification and inspection of children’s residential facilities. This legislation requires the Board to adopt rules governing educational programs and educational services provided by children’s residential facilities pursuant to 2016 Iowa Acts, chapter 1114, section 11. This rule making follows that directive.    An agencywide waiver provision is provided in 281—Chapter 4.    Notice of Intended Action was published in the December 7, 2016, Iowa Administrative Bulletin as ARC 2852C. Public comments were allowed until 4:30 p.m. on January 6, 2017. A public hearing was held on December 27, 2016, and on January 6, 2017. Four persons attended the public hearings. Three public comments were received. From those comments, a few minor changes from the Notice were made. The Department also sua sponte removed references to juvenile homes and included the statute’s list of exclusions after reviewing the enabling statute. The persons attending the first public hearing asserted that the legislation’s exemption from regulating religious curricula should, in effect, create a blanket exemption from this chapter for faith-based private entities. That assertion is incompatible with the language of 2016 Iowa Acts, chapter 1114, and no change has been made to the rules.    After analysis and review of this rule making, no impact on jobs has been found.     These rules are intended to implement 2016 Iowa Acts, chapter 1114.     These rules will become effective on March 22, 2017.    The following amendment is adopted.

    ITEM 1.    Adopt the following new 281—Chapter 35: CHAPTER 35EDUCATIONAL STANDARDS AND PROGRAM REQUIREMENTS FOR CHILDREN’S RESIDENTIAL FACILITIES

281—35.1(282) Scope.  These rules apply to the provision of educational programs and educational services in children’s private residential facilities.

281—35.2(282) Intent.  It is the intent of this chapter that all school-age children, including children younger than 5 years of age and older than 18 years of age, who are eligible children to receive special education, who are living in any children’s residential facility operated by a private entity providing residential care to children within the state of Iowa, which is not otherwise exempted by the Iowa Code, shall be provided an appropriate education.

281—35.3(282) Definitions.  For purposes of this chapter, the following definitions shall apply:        "Child" or "children" means an individual or individuals under 18 years of age. A child is “school-age” if the child is at least 5 years of age on September 15 but not more than 21 years of age or if the child is younger than 5 years of age or older than 18 years of age and is an eligible child to receive special education.        "Children’s residential facility" means a facility operated by a private entity and designed to serve children who have been voluntarily placed for reasons other than an exclusively recreational activity outside of their homes by a parent or legal guardian and who are not under the custody or authority of the department of human services, juvenile court, or another governmental agency as defined by Iowa Code section 237C.1. “Children’s residential facility” shall also be referred to as a “private facility,” but does not include an entity providing any of the following:
  1. Care furnished by an individual who receives the child of a personal friend as an occasional and personal guest in the individual’s home, free of charge and not as a business.
  2. Care furnished by an individual with whom a child has been placed for lawful adoption, unless that adoption is not completed within two years after placement.
  3. Child care furnished by a child care facility as defined in Iowa Code section 237A.1.
  4. Care furnished in a hospital licensed under Iowa Code chapter 135B or care furnished in a health care facility as defined in Iowa Code section 135C.1.
  5. Care furnished by a juvenile detention home or juvenile shelter care home approved under Iowa Code section 232.142.
  6. Care furnished by a child foster care facility licensed under Iowa Code chapter 237.
  7. Care furnished by an institution listed in Iowa Code section 218.1.
  8. Care furnished by a facility licensed under Iowa Code chapter 125.
  9. Care furnished by a psychiatric medical institution for children licensed under Iowa Code chapter 135H.
        "Private entity" means any residential entity that is not a public entity as defined below.        "Public entity" means any facility that houses school-age children and children eligible to receive special education who are under the jurisdiction of the department of corrections, department of human services, board of regents, or other governmental agency and that has current authority to offer direct instruction to children from funding available to one of the above agencies. A public entity shall not bill any Iowa school district or area education agency for educational costs.

281—35.4(282) Establishing an appropriate educational program.  A private entity operating a children’s residential facility shall not accept any child of school age or a child who is eligible to receive special education services until the entity has been issued a certificate of approval by the department of human services and has established an appropriate educational program under this rule and appropriate educational services under rule 281—35.6(282).    35.4(1)   A private entity operating a children’s residential facility may establish an appropriate educational program in one of three ways:    a.    Becoming an accredited nonpublic school through the standards and accreditation process described in Iowa Code section 256.11 and adopted by rule by the state board of education.    b.    Utilizing a written contract stating that the public school district in which the private facility is located will provide the educational program and educational services, either directly or by supervision of appropriately licensed staff of the public entity.     c.    Utilizing a written contract stating that an accredited nonpublic school which is located within the same school district boundaries in which the private facility is located will provide the educational program and educational services, either directly or by supervision of appropriately licensed staff of the accredited nonpublic school. This contract may require that some services related to federal programs and special education be provided by the school district which is otherwise the requirement for the accredited nonpublic school.    35.4(2)   The educational program and educational services delivered through a contract established between a private entity and the school district or accredited nonpublic school shall meet, at a minimum, the standards established by rule 281—12.10(256).    35.4(3)   Any contract established by the private entity with a school district or accredited nonpublic school shall, at a minimum, include, but not be limited to, the physical location of the educational program and educational services; the parties involved; the purpose of the contract; the program description in detail; the powers, duties and authority of each party to the contract; the jurisdiction of each party to the contract; the dispute resolution procedure; specifications of the services that are contracted, if any, and how costs are to be calculated; billing procedures; how each legal, testing, and reporting requirement will be met; ownership of property belonging to the party that paid the cost or contributed the item; contract amendment procedures; contract approval procedures; contract renewal and termination procedures; duration of the contract; cross indemnification; application of laws, rules and regulations; binding effect; severability; assurances; and signature of the school board with legal power to authorize the terms of the contract. Any contract developed under this rule shall be submitted to the department of education for review and approval by the director of the department of education prior to enactment. A contract that fails to comply with any of the requirements of this chapter is void.    35.4(4)   Children residing in a private facility operated by a private entity who require treatment or security throughout the day shall have classrooms made available at the site of the private facility at no cost to the school district providing the instructional program or instructional supervision. The classroom must meet the requirements for educational space for children in accordance with the Iowa Code, administrative rules, and state fire marshal regulations.    35.4(5)   Nothing included in this chapter shall be interpreted to regulate religious education curricula at the private entity.

281—35.5(282) Display of notices; fees.      35.5(1)   A private entity operating a private facility under this chapter shall display prominently in all of the private entity’s major publications and on its Internet site a notice accurately describing the educational program and educational services provided by the private entity and who is providing the program and services.    35.5(2)   The private entity operating a private facility shall include in any promotional, advertising, or marketing materials available by print, broadcast, or via the Internet or any other means all fees charged by the private entity for the educational program and educational services offered or provided and the entity’s refund policy for the return of refundable portions of any fees. This subrule shall not apply to sponsorship by a private entity of public radio or public television broadcasts.    35.5(3)   If the educational programs and educational services are provided by or through the public school district of location, all fees related to the educational programs and educational services shall be authorized by the Iowa Code, including but not limited to Iowa Code chapter 282, and shall be the same fees as charged to other enrolled students. The public school district cannot charge nonresident students a higher fee than resident students.

281—35.6(282) Provision of appropriate educational services.      35.6(1)   Private entities shall fully cooperate with the area education agency and school district in which the facility is located to fulfill the area education agency’s responsibilities for child find under 281—Chapter 41. A child shall be made available for evaluation and provision of services for which the child is eligible.    35.6(2)   If a child does not require treatment or security by the private entity in such a time or manner as is required to remain on the campus of the private facility, a child with an individual education plan shall be provided special education instruction and related services with other nondisabled children within the least restrictive environment to the maximum extent appropriate.    35.6(3)   The area education agency in which the private facility is located, the school district of residence, and other appropriate public or private agencies or private individuals involved with the care or placement of a child shall cooperate with the school district in which the private facility is located in sharing educational information, textbooks, curriculum, assignments, and materials in order to plan and to provide for the appropriate education of the child living in a private facility and to ensure academic credit is granted to the child for instructional time earned upon discharge from the private residential facility.    35.6(4)   A private facility that houses eligible children who are 4 years of age by September 15 of the school year shall notify the parents or legal guardians of these eligible children about the opportunities to access quality preschool programs. Children whose parents are Iowa residents may access the statewide voluntary preschool program under 281—Chapter 16 at no cost to the parents, and transportation will be provided by the public school district in which the statewide voluntary preschool provider is located from its statewide voluntary preschool programs funding. Children whose parents are not Iowa residents may access the statewide voluntary preschool programs, if space is available, through a tuition and transportation agreement with the public school district in which the statewide voluntary preschool program provider is located.

281—35.7(282) Reporting.  A private entity shall comply with requests by the Iowa department of education for basic educational and financial information.       These rules are intended to implement 2016 Iowa Acts, chapter 1114.
    [Filed 1/19/17, effective 3/22/17][Published 2/15/17]Editor’s Note: For replacement pages for IAC, see IAC Supplement 2/15/17.
ARC 2947CEducation Department[281]Adopted and Filed

    Pursuant to the authority of Iowa Code section 256.7(5), the State Board of Education hereby rescinds Chapter 46, “Vocational Education Programs,” and adopts a new Chapter 46, “Career and Technical Education,” and rescinds Chapter 47, “Career Academies,” Iowa Administrative Code.    New Chapter 46 implements the provisions of 2016 Iowa Acts, chapter 1108, (House File 2392), division II. 2016 Iowa Acts, chapter 1108, grants the State Board of Education authority to adopt standards for career and technical education service areas, regional secondary career and technical education planning partnerships, career academies, regional centers, and more. Accordingly, Chapter 46 establishes the revised career and technical education services areas and aligns national career clusters to each service area. A process for establishing standards for the career and technical education service areas is also adopted. The chapter establishes the secondary program approval and regular review process through which all secondary career and technical education programs will be approved and reviewed. The chapter clarifies the duties, requirements, and membership of local program advisory councils and establishes alternative council structures which programs may utilize in meeting statutory requirements. Standards for regional career and technical education planning partnerships are established, including standards related to partnership approval, compliance, duties, and permissible uses of funds. Standards are also established for career academies and regional centers. Because rules for career academies are included in new Chapter 46, existing Chapter 47 pertaining to career academies is rescinded and reserved.    An agencywide waiver provision is provided in 281—Chapter 4.    Notice of Intended Action was published in the December 7, 2016, Iowa Administrative Bulletin as ARC 2855C. Public comments were allowed until 4:30 p.m. on January 6, 2017. A public hearing was held on January 6, 2017. Thirteen people attended the public hearing. Fifteen public comments were received. Almost all of the public comments spoke to the underlying statute, 2016 Iowa Acts, chapter 1108, or to future implementation of that statute. Because the Department and the State Board of Education lack authority to modify the statute, these rules are identical to those published under Notice of Intended Action.    After analysis and review of this rule making, no impact on jobs has been found.    These amendments are intended to implement Iowa Code chapter 258 and 2016 Iowa Acts, chapter 1108.    These rules will become effective on March 22, 2017.    The following amendments are adopted.

    ITEM 1.    Rescind 281—Chapter 46 and adopt the following new chapter in lieu thereof: CHAPTER 46CAREER AND TECHNICAL EDUCATION

281—46.1(258) Federal Act accepted.  The provisions of the Act of Congress known as the Carl D. Perkins Career and Technical Education Improvement Act of 2006, codified at 20 U.S.C. §2301 et seq., as amended, and the benefit of all funds appropriated under said Act and all other Acts pertaining to career and technical education, are accepted.

281—46.2(258) Definitions.  As used in this chapter:        "Approved career and technical education program" means a career and technical education program offered by a school district or community college and approved by the department which meets the requirements for career and technical education programs established under this chapter.         "Approved practitioner preparation school, department, or class" means a school, department, or class approved by the board as entitled under this chapter to federal moneys for the training of teachers of career and technical education subjects.        "Approved regional career and technical education planning partnership" means a regional entity that meets the requirements for regional career and technical education planning partnerships pursuant to rule 281—46.10(258).        "Board" means the board for career and technical education as provided in rule 281—46.3(258).        "Career academy" means a career academy established under rule 281—46.11(258).        "Career and technical education service area" means any one of the service areas specified in rule 281—46.4(258).        "Career cluster" means a nationally recognized framework for organizing and classifying career and technical education programs.        "Community college" means an institution as defined under Iowa Code section 260C.2(1).        "Department" means the department of education.        "Director" means the director of the department of education.        "District" means a public school district.        "Partnership" means a regional career and technical education planning partnership as established under rule 281—46.10(258).        "Program" means a minimum of three sequential units of career and technical education coursework.        "Sector partnership" means a regional industry sector partnership as defined in rule 281—25.18(260H).        "Shared program" means a program or portion of a program offered through an agreement pursuant to Iowa Code section 256.13.        "Work-based learning" means opportunities and experiences that include but are not limited to tours, job shadowing, rotations, mentoring, entrepreneurship, service learning, internships, and apprenticeships.        "Work-based learning intermediary network" means the statewide work-based learning intermediary network established pursuant to 281—Chapter 48.

281—46.3(258) State board for career and technical education.  The state board of education shall constitute the board for career and technical education. In that capacity, the board shall approve the multiyear state plan developed by the director in accordance with applicable federal laws and regulations governing career and technical education.

281—46.4(258) Career and technical education service areas.  Districts shall comply with the requirements of rule 281—46.5(258) in offering programming pursuant to this rule. Instructors teaching courses pursuant to this rule shall hold and maintain appropriate board of educational examiners licensure pursuant to Iowa Code chapter 272.    46.4(1) Grades 7-8.  Pursuant to 281—subrule 12.5(4), districts shall offer career exploration and development in grades 7 and 8. Career exploration and development shall be designed so that students are appropriately prepared to create an individual career and academic plan pursuant to 281—Chapter 49, incorporate foundational career and technical education concepts aligned with the six career and technical education service areas as defined in subrule 46.4(2), and incorporate relevant twenty-first century skills.    46.4(2) Grades 9-12.  Pursuant to 281—subrule 12.5(5), districts shall offer career and technical education programming in the following service areas:    a.    Agriculture, food, and natural resources, including the career cluster of agriculture, food, and natural resources.    b.    Information solutions, including the career clusters of arts, audio and video technology, and communications; and information technology.     c.    Applied sciences, technology, engineering, and manufacturing, including the career clusters of architecture and construction; manufacturing; science, technology, engineering, and mathematics; and transportation, distribution, and logistics.    d.    Health sciences, including the career cluster of health science.    e.    Human services, including the career clusters of education and training; human services; hospitality and tourism; government and public administration; and law, public safety, corrections, and security.     f.    Business, finance, marketing, and management, including the career clusters of business, management, and administration; finance; and marketing.

281—46.5(258) Standards for career and technical education.  The board shall adopt content standards for the career and technical education service areas. Districts shall include, at a minimum, the content standards for career and technical education service areas adopted pursuant to this rule in career and technical education programs as the standards are adopted by the board.

281—46.6(258) Career and technical education program approval and review.  The purpose of the career and technical education program approval and review process is to promote the establishment and maintenance of high-quality secondary and postsecondary career and technical education programs that implement best practices resulting in effective teaching and learning. The program approval and review process will ensure that all career and technical education programs are compatible with educational reform efforts, are capable of responding to technological change and innovation, and meet the educational needs of students and the employment community.    46.6(1) Secondary program approval.  All career and technical education programs offered by a district shall be approved by the department. As a condition for approval, a district shall comply with the following requirements for career and technical education program approval.    a.    Data collection and analysis.A district shall, for each program, conduct an analysis of appropriate data and information related to the program and occupational fields applicable to the program. For purposes of this subrule, data shall include, at a minimum, program enrollment numbers and trends by high school, course completion rates and trends, data required under federal statute governing career and technical education, and labor market information and socioeconomic and demographic data elements as provided by the partnership.    b.    Program report and self-study.A district shall create a program report and self-study for each offered program. The program report and self-study shall include narrative on the following criteria:    (1)   Program overview. This section shall include an overview of the program’s purpose, a summary of data and information as described under paragraph 46.6(1)“a” and any conclusions drawn from this data and information, and an analysis of future trends in occupations associated with the program.    (2)   Statement of program goals, objectives, and outcomes. This section shall include clear statements of the program’s goals, objectives, and outcomes, including a justification of the program’s goal(s), objective(s), and outcome(s) based on the review conducted under subparagraph 46.6(1)“b”(1), and describe methods which will be used to measure the program’s stated outcomes.     (3)   Competencies. This section shall describe the established program competencies aligned with state standards pursuant to rule 281—46.5(258) and the program’s goals, objectives, and outcomes; include evidence of advisory committee approval of competencies, technical skill assessment tool(s), and proficiency benchmarks; include evidence of postsecondary approval of competencies and technical skill assessment tool(s); outline and describe the coherent sequence of coursework which constitutes the program, including any related foundational and concurrent enrollment coursework, depicted in a plan of study template; describe processes utilized to employ contextualized and effective work-based, project-based, and problem-based learning approaches; describe efforts to integrate career and technical education student organization(s) into the program, if applicable; and describe processes utilized to review and update the curriculum, ensuring continued relevancy to the occupational field.     (4)   Student assessment. This section shall describe how the program will assess student outcomes established under subparagraph 46.6(1)“b”(2) and program competencies established under subparagraph 46.6(1)“b”(3) and the established technical skill assessment tool(s) to measure competencies, utilizing industry-approved technical skill assessments, where available and appropriate.    (5)   Educational resources. This section shall describe key equipment and materials currently used in instruction; processes to determine whether the equipment is relevant and up to date; processes to maintain the equipment; and new equipment needs, with a description of how the proposed new equipment would improve the program.     (6)   Advisory council. This section shall describe how the program engages with the business community to recruit members for the advisory council pursuant to rule 281—46.8(258) and include a current member list with titles and company; describe advisory committee meeting logistics including, but not limited to, meeting frequency, agendas, and minutes; detail and describe the advice the advisory council has suggested for the program and any actions or results taken by the program which stem from this advice as well as any advice not acted upon by the program; and include, as an appendix to the narrative, advisory council minutes from the prior year.    (7)   Partnerships. This section shall describe how the program’s curriculum is integrated with other curricular offerings required of all students; describe the articulation, contractual agreements for shared courses with community colleges, and other agreements with community colleges and other postsecondary institutions; and describe how the program partners with counselors at various levels to assist all students and stakeholders in the exploration of pathway opportunities within the service area.    (8)   Removing barriers. This section shall describe how the program removes barriers for all students to access education opportunities both while in and beyond high school.    c.    Feedback.The district shall submit the program report and self-study completed under paragraph 46.6(1)“b” to the partnership for peer review and feedback. The partnership shall complete a review of the program report and self-study and provide the district with recommendations and feedback based on that review. The partnership’s recommendations shall be documented and submitted to the department and the district. The partnership shall include in the recommendations a determination of whether the program should or should not receive department approval. A program must be recommended for approval by the partnership for the program to receive approval by the department. The district will modify the program report and self-study based on the partnership’s recommendations. The partnership’s recommendations shall be included as an appendix to the program report and self-study submitted to the department. The final program report and self-study shall be submitted by the district to the department.     d.    Department approval.Final approval of programs will be reserved for the department. Approval shall be awarded to a program if clear evidence of compliance with the criteria established in this rule is provided in the program report and self-study as required under paragraph 46.6(1)“b.” A program which fails to be approved by the department will have one year to address identified deficiencies and resubmit for approval of the program. The department will provide a summary of the deficiencies in need of addressing.     46.6(2) Postsecondary program approval.  All community college career and technical education programs shall be approved through the process established in 281—subrule 21.4(3).     46.6(3) Secondary program review.  The program review process will ensure that 20 percent of secondary career and technical education programs are reviewed on an annual basis and that career and technical education programs meet standards adopted by the board. The review shall include an assessment of the extent to which the competencies in the program are being mastered by the students enrolled, the costs are proportionate to educational benefits received, the career and technical education curriculum is articulated and integrated with other curricular offerings required of all students, the programs would permit students with career and technical education backgrounds to pursue other educational interests in a postsecondary institutional setting, and the programs remove barriers for all students to access educational and employment opportunities.    a.    Secondary program review.As a condition of continuing approval, districts shall comply with the following requirements for career and technical education program review. Units of instruction required under rule 281—46.4(258) must have students from each participating high school enrolled. Each district that sends students to a shared program with another district which is used by the sending district to fulfill the requirements of rule 281—46.4(258) must have students from the sending district enrolled in the shared program.    (1)   Conclusions drawn from annual program measurement. A district shall, for each program, annually review and evaluate program outcomes and student assessment data. The district shall describe any conclusions drawn from the review and evaluation of program outcomes and student assessment data, and how those conclusions impact the future direction of the program. In addition to and as a result of this review, the district shall identify program strengths, in order of importance, and describe how these strengths will be maintained; perceived barriers to accomplishing the program’s goal(s) and objective(s); and primary opportunities for improvement, in order of importance, and how these opportunities for improvement will be addressed. The district shall also review program enrollment and participation data by high school to determine if students from each participating high school have access to the program. The district shall describe how the district is ensuring access to the program for all students from each participating high school.    (2)   Revision of program goals, objectives, and outcomes. The district shall update and make appropriate revisions to the program, including goals, objectives, and outcomes, as outlined in the program report and self-study based on the results of the activities prescribed under subparagraph 46.6(3)“a”(1).    b.    Feedback.The district shall submit the program report and self-study completed under subparagraph 46.6(3)“a”(2) to the partnership for peer review and feedback. The partnership shall complete a review of the program report and self-study and provide the district with recommendations and feedback based on the review. The partnership’s recommendations shall be documented and submitted to the department and the district. The partnership shall include in the recommendations a determination of whether the program should or should not receive department approval. A program must be recommended for approval by the partnership for the program to receive approval by the department. The district will modify the program report and self-study based on the partnership’s recommendations. The partnership’s recommendations shall be included as an appendix to the program report and self-study submitted to the department. The final program report and self-study shall be submitted by the district to the department.    c.    Department approval.Final approval of programs will be reserved for the department. Approval shall be awarded to a program if clear evidence of compliance with the criteria established in this rule is provided in the program report and self-study as required under this rule. A program which fails to be approved by the department will have one year to address identified deficiencies and resubmit for approval of the program. The department will provide a summary of the deficiencies in need of addressing.     46.6(4) Postsecondary program review.  The postsecondary program review process shall ensure career and technical education programs meet standards adopted by the board. The review shall include an assessment of the extent to which the competencies in the program are being mastered by the students enrolled, the program costs are proportionate to educational benefits received, the curriculum is articulated and integrated with other curricular offerings required of all students, the program provides opportunities for students to pursue other educational interests in a postsecondary institutional setting, and the program removes barriers for all students to access educational and employment opportunities.    a.    Process.Each community college shall establish a process which ensures at least 20 percent of career and technical education programs are reviewed on an annual basis. The department will ensure compliance with the requirements of this paragraph through the community college accreditation process established in 281—Chapter 24.    b.    Components.The following minimum components will be addressed through the process outlined in paragraph 46.6(4)“a.”    (1)   Industry or professional standards. Community colleges shall utilize standards established and recognized by industry or professional organizations when available and appropriate. In lieu of these standards, community colleges shall develop program standards through a structured group interview process, which involves committees of incumbent workers within an occupational cluster analyzing standards which include new and emerging technologies, job seeking, leadership, entrepreneurial, and occupational competencies. This analysis includes identifying standards that ensure program participants have access to instruction which leads to employment and further training. All standards will be analyzed for the reinforcement of academic skills.     (2)   Program standards. Additional standards which shall be addressed during the program review include currency of curriculum; faculty qualifications; professional development; adequacy of equipment and facilities; student outcomes, in terms of student demographics to include gender, race and ethnicity, national origin, and disability; enrollment retention, completion, and replacement rates; articulation; and employment rates and wages.     (3)   Advisory council. The community college shall document how the program engages with the business community to recruit members for the advisory council required under rule 281—46.8(258). Program review documentation shall include a current member list with titles and employer; advisory committee meeting logistics including, but not limited to, meeting frequency, agendas, and minutes; advice the advisory council has suggested for the program; and any actions or results taken by the program which stem from this advice.    (4)   Articulation. Teachers and administrators from both secondary and postsecondary instructional levels shall (when applicable) meet to identify competencies required at each level and to jointly prepare agreements of articulation between secondary and postsecondary levels for specific occupational areas. Such joint articulation efforts will facilitate the secondary-postsecondary transition and help reduce duplication between the two levels.    46.6(5) Program modification.  Any modifications to a program must be approved by the department. Modification includes, but is not limited to, a change to the courses in the program, a change to the description of a program, discontinuing a program or option, a change to instructional or occupational classification, or changes in program entrance requirements.

281—46.7(258) Accreditation standards not met.  Reserved.

281—46.8(258) Advisory council.      46.8(1) Appointment.  The board of directors of a school district or community college that maintains a career and technical education program receiving federal or state funds under this chapter shall, as a condition of approval by the board, appoint a program-oriented and program-specific advisory council for each career and technical education program offered by the school district or community college. The local advisory council shall give advice and assistance to the board of directors, administrators, and instructors in the establishment and maintenance of the career and technical education program. An advisory council established under this rule shall meet at least twice annually.     46.8(2) Joint advisory council.  A school district and a community college that maintain a career and technical education program receiving federal or state funds may create a joint local advisory council which may serve in place of an advisory council required under subrule 46.8(1).     46.8(3) Regional advisory council.  A regional advisory council established by a regional career and technical education planning partnership approved by the department pursuant to rule 281—46.10(258) may serve in place of an advisory council required under subrule 46.8(1).    46.8(4) Membership.  The membership of each advisory council established under this rule shall consist of public members from multiple businesses within the occupation or occupational field related to the career and technical education program and of other stakeholders with expertise in the occupation or occupational field related to the career and technical education program. There shall be a good-faith effort to include secondary and postsecondary career and technical education teachers from related secondary and postsecondary programs on the advisory council. Members of an advisory council shall serve without compensation. Local advisory councils are not subject to the requirements of Iowa Code section 69.16.

281—46.9(258) Distribution of career and technical education funds.      46.9(1)   An approved regional career and technical education planning partnership is eligible to receive from state funds reimbursement for expenditures made during the fiscal year for purposes allowed under subrule 46.10(6). If federal and state funds are not sufficient to make the reimbursement to the extent provided in this rule, the director shall prorate the respective amounts available to the regional career and technical education planning partnerships entitled to reimbursement.    a.    At the beginning of a fiscal year, the department shall assign to each partnership a portion of the total career and technical education funds from which the partnership may claim reimbursement from the department.    b.    Each partnership shall be assigned a portion of the total career and technical education funds based on the following formula:    (1)   Half of the total career and technical education funds shall be disbursed equally between the approved partnerships.    (2)   Half of the total career and technical education funds shall be disbursed based on the number of students enrolled in approved career and technical education programs.    46.9(2)   All federal funds shall be spent pursuant to the state plan required under the federal Carl D. Perkins Career and Technical Education Improvement Act of 2006, codified at 20 U.S.C. §2301 et seq., as amended.

281—46.10(258) Regional career and technical education planning partnerships.  Regional career and technical education planning partnerships are established to assist school districts in providing an effective, efficient, and economical means of delivering high-quality secondary career and technical education programs.    46.10(1) Establishment.  Partnerships shall be established to serve all school districts in the state no later than June 30, 2017.    a.    There shall be established in the state no fewer than 12 and no greater than 15 regions in which partnerships may operate.    b.    A partnership shall be considered established if approved pursuant to subrule 46.10(2).    c.    Convening the regional career and technical education planning partnership shall be the joint responsibility of the area education agency and community college located within the region. In convening the partnership, the area education agency and community college shall secure the participation of interim members of the partnership. When selecting interim members, the area education agency and community college shall ensure the membership requirements of subrule 46.10(3) are satisfied.    46.10(2) Approval.  All partnerships shall be approved by the department. As a condition of approval, each partnership shall meet the following requirements:    a.    Approval.By June 30, 2017, each partnership shall have adopted bylaws in a manner and format prescribed by the department. The partnership shall submit to the department by June 30, 2017, the partnership’s bylaws, a membership list which clearly denotes the required membership under subrule 46.10(3) and the chair, vice-chair, and secretary, the designated fiscal agent for the partnership, minutes from all meetings held prior to June 30, 2017, and a schedule of future meetings.    b.    Continuing approval.By June 30, 2018, each partnership shall have adopted a multiyear plan meeting the requirements of subrule 46.10(5). The multiyear plan shall be reviewed and, as necessary, revised on an annual basis by the partnership and submitted to the department. To maintain approval, the partnership shall maintain evidence that the duties assigned to the partnership under subrule 46.10(4) are performed on a continuing basis.    c.    Failure to maintain approval.If the department denies or grants conditional approval of a partnership, the director, in consultation with the partnership, shall establish a plan detailing all areas of deficiency and prescribing the procedures that must be taken to achieve approval and a timeline for completion of the prescribed procedures. A final plan shall be submitted to the director within 45 days following notice of the department denying or granting conditional approval of a partnership. The partnership shall continue to perform the duties assigned to the partnership under subrule 46.10(4) for the duration of the timeline established in the plan. If at the end of the timeline established in the plan the noted deficiencies have not been adequately addressed, the partnership will be denied approval. Within one year of the action to deny approval of the partnership, the director will establish a plan which details how the partnership will be merged or restructured.    d.    Resolution of disputes.In the event of a dispute regarding the assignment of a district to a partnership under this rule, the director shall first attempt to mediate the dispute. If mediation is unsuccessful, the director shall schedule a hearing to obtain testimony. At the sole discretion of the director, the hearing may be held electronically or in person. The director shall issue within ten days after the hearing a written decision which shall be a final administrative decision.    46.10(3) Membership.  The membership of each partnership shall consist of stakeholders in a position to contribute to the development and successful implementation of high-quality career and technical education programs. Each district which falls within the boundaries of the partnership shall be represented on the partnership. Once established pursuant to subrule 46.10(1), the partnership shall be responsible for identifying and maintaining appropriate membership. Membership of the partnership shall include but not be limited to the following:    a.    The superintendent of a school district within the regional planning partnership, or the superintendent’s designee.    b.    The president of a community college within the regional planning partnership, or the president’s designee.    c.    The chief administrator of an area education agency within the regional planning partnership, or the chief administrator’s designee.    d.    Representatives of a regional work-based learning intermediary network.    e.    Representatives of regional economic and workforce entities including regional advisory boards established under Iowa Code section 84A.4.    f.    Representatives of business and industry, including representatives of regional industry sector partnerships.    g.    Career and technical education teachers and faculty.    46.10(4) Duties.  The partnership shall perform the following duties on a continuing basis.    a.    Develop a multiyear plan which meets the requirements of subrule 46.10(5). The plan shall be updated annually.     b.    Collect and review all relevant plans required by the federal Carl D. Perkins Career and Technical Education Improvement Act of 2006, codified at 20 U.S.C. §2301 et seq., as amended; career and academic plans required under 281—Chapter 49; and regional labor market, socioeconomic, and demographic information.    c.    Ensure compliance with standards adopted by the board for regional career and technical education planning partnerships.    d.    Appropriately expend career and technical education funds in accordance with subrule 46.10(6) assigned to the partnership pursuant to rule 281—46.9(258).    e.    Collect, review, and make available to districts appropriate labor market, socioeconomic, and other state, regional, or national information necessary for completing the program approval and review process pursuant to rule 281—46.6(258).    f.    Review career and technical education programs of school districts within the region and recommend to the department career and technical education programs for approval in accordance with subrules 46.6(1) and 46.6(3).    g.    Coordinate and facilitate advisory councils for career and technical education programs and, as necessary, establish regional advisory councils to serve in the same capacity as local advisory councils.    h.    Plan for regional centers with the purpose of achieving equitable access to high-quality career and technical education programming and concurrent enrollment opportunities for all students.    46.10(5) Multiyear plan.  The multiyear plan developed by the partnership shall outline the partnership’s goals, objectives, and outcomes; how the partnership will execute the authority and duties assigned to the partnership; how the partnership will secure collaboration with secondary schools, postsecondary educational institutions, and employers to ensure students have access to high-quality career and technical education programming, including career academies, that aligns career guidance, twenty-first century career and technical education and academic curricula, and work-based learning opportunities that empower students to be successful learners and practitioners; and how the partnership will ensure compliance with standards established under this rule. In addition, the multiyear state plan shall include, but not be limited to, the following components:    a.    Goals, objectives, and outcomes.The plan shall detail the partnership’s goals, objectives, and outcomes, which shall include, but not be limited to, the following goals:    (1)   Promote career and college readiness through thoughtful career guidance and purposeful academic and technical planning practices.    (2)   Promote high-quality, integrated career and technical education programming, including career academies and the delivery of quality career and technical education programs by school districts in fulfillment of the requirements of rule 281—46.4(258) comprised of secondary exploratory and transitory coursework to prepare students for higher-level, specialized academic and technical training aligned with labor market needs.     (3)   Afford students the opportunity to access a spectrum of high-quality work-based learning experiences through collaboration with a work-based learning intermediary network.    (4)   Afford all students equitable access to programs and encourage the participation of underrepresented student populations in career and technical education programming.    b.    Process to measure goals, objectives, and outcomes.The plan shall outline the processes to be used by the partnership to measure all goals, objectives, and outcomes established pursuant to paragraph 46.10(5)“a.”    c.    Program approval and review process.The plan shall outline the process the partnership will utilize in reviewing career and technical education programs of school districts within the region based on standards established in rule 281—46.6(258). The process shall detail how 20 percent of programs will be reviewed on an annual basis. The partnership shall provide a written five-year program review schedule which clearly indicates the specific year in which a program is to be reviewed within the five-year cycle.    d.    Advisory councils.The plan shall outline the process that the partnership will utilize in coordinating and facilitating local advisory councils for career and technical education programs as required under rule 281—46.8(258) and establishing regional advisory councils to serve in the same capacity as local advisory councils, as necessary.    e.    Use of funds.The plan shall detail the partnership’s budget including intended use of funds designated to the partnership pursuant to rule 281—46.9(258). The intended use of funds shall comply with the requirements of subrule 46.10(6) and be clearly connected to the goals, objectives, and outcomes of the partnership established under paragraph 46.10(5)“a” and the needs of career and technical education programs and teachers as identified through the program approval and review process under rule 281—46.6(258).    f.    Planning for regional centers.The plan shall outline the process that the partnership will utilize in planning for regional centers, consistent with the requirements of rule 281—46.12(258), with the purpose of achieving equitable access to high-quality career and technical education programming and concurrent enrollment opportunities for all students.    g.    Meeting regularly.The plan shall outline the intended schedule of partnership meetings for a five-year period. The partnership shall meet at least twice per academic year.    h.    Annual review of multiyear plan.The plan shall outline the process to be utilized by the partnership to annually review and, as necessary, revise the plan. This process shall ensure that all members and stakeholders are included in the review and revision of the plan. The partnership shall maintain a written record of all reviews of and revisions to the plan.    i.    Assurance statement.The plan shall include, in a format prescribed by the department, an assurance that in all operations of and matters related to the partnership, the partnership does not discriminate against individuals protected under federal and state civil rights statutes.    46.10(6) Secondary career and technical education funds.  An approved regional career and technical education partnership may use funds received from state and federal sources for the following:    a.    To convene, lead, and staff the regional career and technical education planning partnership. A partnership may use state career and technical education funds allocated to the partnership pursuant to rule 281—46.9(258) for no more than one full-time equivalent staff position.    b.    To offer regional career and technical education professional development opportunities, coordinate and maintain a career guidance system pursuant to 281—Chapter 49, and purchase equipment on behalf of school districts and community colleges participating in the regional career and technical education planning partnership. All expenditures on allowable uses specified under this paragraph must conform to the requirements of the federal Carl D. Perkins Career and Technical Education Improvement Act of 2006, codified at 20 U.S.C. §2301 et seq., as amended.

281—46.11(258) Career academies.      46.11(1) Establishment and responsibilities.  A career academy may be established under an agreement between a single school district and a community college, or by multiple school districts and a community college organized into a regional career and technical education planning partnership pursuant to rule 281—46.10(258). A career academy established under this rule shall be a career-oriented or occupation-oriented program of study that includes a minimum of two years of secondary education, which may fulfill the sequential unit requirement in one of the four service areas required under 281—subrule 12.5(5), includes concurrent enrollment programming aligned with a postsecondary education program which meets the requirements of 281—Chapter 22, and is approved by the director. A career academy shall do all of the following:    a.    Utilize regional career and technical education planning partnerships outlined in rule 281—46.10(258) in an advisory capacity to inform the selection and design of the career academy and establishment of industry standards.    b.    Establish a program of study that meets all of the following criteria:    (1)   Is designed to meet industry standards and prepare students for success in postsecondary education and the workforce.    (2)   Integrates academic coursework; includes foundational and transitory career and technical education coursework; includes work-based learning; and utilizes the individual career and academic planning process established under 281—Chapter 49.    (3)   Integrates as a portion of the career academy a hands-on, contextualized learning component.     (4)   Allows students enrolled in the academy an opportunity to continue on to an associate degree and, if applicable, a postsecondary baccalaureate degree program.    46.11(2) Contract or agreement.  A career academy must receive approval from district and community college boards participating in the career academy. A contract or 28E agreement must set forth the purposes, powers, rights, objectives, and responsibilities of the contracting parties and be signed by all participating parties and be in effect prior to initiation of a career academy. An assurance form, as defined by the department, which specifies that the career academy includes all the components required under this rule shall be sent to the director.    46.11(3) Faculty requirements.  Faculty providing college credit instruction in a career academy program of study must meet community college faculty minimum standards as specified in 281—subrule 24.5(1) and the requirements of the quality faculty plan as approved by the community college board pursuant to 281—subrule 24.5(7). Instructors teaching courses that provide only secondary level credit must have appropriate secondary licensure pursuant to Iowa Code chapter 272.    46.11(4) Compliance.  Districts and community colleges shall maintain compliance with the federal Carl D. Perkins Career and Technical Education Improvement Act of 2006, 20 U.S.C. §2301 et seq., as amended, in implementing career academies.    46.11(5) Data collection.  Data collection and enrollment reporting must follow specified requirements as determined by the department.

281—46.12(258) Regional centers.  The state board shall adopt standards pertaining to regional centers. The standards shall include, but not be limited to, those which provide for increased and equitable access to high-quality career and technical education programs and require that regional centers incorporate appropriate educational programs, meet appropriate state and federal regulations for safety and access, maintain adequate participation, and are located within an appropriate distance of participating high schools, and that transportation is provided to all students.    46.12(1) Minimum requirements.  As a condition for approval, a regional center shall comply with standards adopted by the board and shall consist of a minimum of four career academies on site. A regional center shall be compatible with the development of a statewide system of regional centers serving all students. A regional center shall serve either of the following:    a.    A combined minimum of 120 students from no fewer than two school districts.    b.    A minimum of four school districts.    46.12(2)   Reserved.    46.12(3)   Reserved.    46.12(4)   Reserved.    46.12(5) Approval.  The director shall approve all facilities meeting the definition and requirements for regional centers under this rule.       These rules are intended to implement Iowa Code chapter 258 and 2016 Iowa Acts, chapter 1108.

    ITEM 2.    Rescind and reserve 281—Chapter 47.    [Filed 1/19/17, effective 3/22/17][Published 2/15/17]Editor’s Note: For replacement pages for IAC, see IAC Supplement 2/15/17.
ARC 2948CEducation Department[281]Adopted and Filed

    Pursuant to the authority of Iowa Code section 256.7(5), the State Board of Education hereby amends Chapter 79, “Standards for Practitioner and Administrator Preparation Programs,” Iowa Administrative Code.    Chapter 79 outlines the standards and program requirements that all traditional educator preparation programs must meet in order to be accredited to prepare educators in Iowa. Compliance with these standards is required and evaluated during each educator preparation program’s accreditation review. The standards are also applied in an annual reporting system. These amendments update the current standards because of pertinent changes to the Iowa Code made during the 2016 Legislative Session and keep the rules current with national standards for educator preparation.     Pursuant to Iowa Code section 256.7(3), no waiver of these rules is permitted.    Notice of Intended Action was published in the October 12, 2016, Iowa Administrative Bulletin as ARC 2761C. Public comments were allowed until 4:30 p.m. on November 1, 2016. A public hearing was held on November 1, 2016, from 9 to 10 a.m. One person spoke at this hearing. Written comments regarding these amendments were received through over 75 e-mails. The comments expressed concern that Chapter 79 does not contain requirements for curriculum specific to dyslexia. Fifteen interested stakeholders met on January 5, 2017, and made changes to the proposed amendments to address the comments received. These amendments reflect changes made by consensus during this meeting.    After analysis and review of this rule making, no impact on jobs has been found.    These amendments are intended to implement Iowa Code section 256.7(3).    These amendments will become effective March 22, 2017.    The following amendments are adopted.

    ITEM 1.    Amend subrule 79.13(4) as follows:    79.13(4)   Candidate assessment includes clear criteria for:    a.    Entrance into the program (for teacher education, this includes testing described in Iowa Code section 256.16)a preprofessional skills test offered by a nationally recognized testing service. Institutions must deny admission to any candidate who does not successfully meet the institution’s passing score requirement).    b.    Continuation in the program with clearly defined checkpoints/gates.    c.    Admission to clinical experiences (for teacher education, this includes specific criteria for admission to student teaching).    d.    Program completion (for teacher education, this includes testing described in Iowa Code section 256.16; see subrule 79.15(5) for required teacher candidate assessment).

    ITEM 2.    Amend subrule 79.15(2) as follows:    79.15(2)   Each teacher candidate receives dedicated coursework related to the study of human relations, cultural competency, and diverse learners, such that the candidate is prepared to work with students from diverse groups, as defined in rule 281—79.2(256). The unit shall provide evidence that teacher candidates develop the ability toidentify and meet the needs of all learners, including:    a.    Students from diverse ethnic, racial and socioeconomic backgrounds.    b.    Students with disabilities.    c.    Students who are struggling with literacy, including those with dyslexia.    c.    d.    Students who are gifted and talented.    d.    e.    English language learners.    e.    f.    Students who may be at risk of not succeeding in school.This preparation will include classroom management addressing high-risk behaviors including, but not limited to, behaviors related to substance abuse.

    ITEM 3.    Amend subrule 79.15(3) as follows:    79.15(3)   Each teacher candidate demonstrates knowledge about literacy and receives preparation in literacy. Each candidate also develops and demonstrates the ability to integrate reading strategies into content area coursework. Each teacher candidate in elementary education demonstrates knowledge related to the acquisition of literacy skills and receives preparation in a variety of instructional approaches to reading programs, including but not limited to reading recovery.Each teacher candidate demonstrates competency in literacy, to include reading theory, knowledge, strategies, and approaches; and integrating literacy instruction into content areas. The teacher candidate demonstrates competency in making appropriate accommodations for students who struggle with literacy. Demonstrated competency shall address the needs of all students, including but not limited to, students with disabilities; students who are at risk of academic failure; students who have been identified as gifted and talented or limited English proficient; and students with dyslexia, whether or not such students have been identified as children requiring special education under Iowa Code chapter 256B. Literacy instruction shall include evidence-based best practices, determined by research, including that identified by the Iowa reading research center.

    ITEM 4.    Amend subrule 79.15(5) as follows:    79.15(5)   Each teacher candidate exhibitsdemonstrates competency in all of the following professional core curricula:    a.    Content/subject matter specialization.The teacher candidate demonstrates an understanding of the central concepts, tools of inquiry, and structure of the discipline(s) the candidate teaches and creates learning experiences that make these aspects of the subject matter meaningful for students. This specialization is evidenced by a completion of a 30-semester-hour teaching major which must minimally include the requirements for at least one of the basic endorsement areas, special education teaching endorsements, or secondary level occupational endorsements. The teacher candidate must either meet or exceed a score above the 25th percentile nationally on subject assessments designed by a nationally recognized testing service that measure pedagogy and knowledge of at least one subject area as approved by the director of the department of education, or the teacher candidate must meet or exceed the equivalent of a score above the 25th percentile nationally on an alternate assessment also approved by the director. The alternate assessment must be a valid and reliable subject-area-specific, performance-based assessment for preservice teacher candidates that is centered on student learning. Additionally, each elementary teacher candidate must also complete a field of specialization in a single discipline or a formal interdisciplinary program of at least 12 semester hours.    b.    Student learning.The teacher candidate demonstrates an understanding of human growth and development and of how students learn and participates in learning opportunities that support intellectual, career, social and personal development.    c.    Diverse learners.The teacher candidate demonstrates an understanding of how students differ in their approaches to learning and creates instructional opportunities that are equitable and adaptable to diverse learners.    d.    Instructional planning.The teacher candidate plans instruction based upon knowledge of subject matter, students, the community, curriculum goals, and state curriculum models.    e.    Instructional strategies.The teacher candidate demonstrates an understanding of and an ability to use a variety of instructional strategies to encourage student development of critical and creative thinking, problem-solving, and performance skills.    f.    Learning environment/classroom management.The teacher candidate uses an understanding of individual and group motivation and behavior; creates a learning environment that encourages positive social interaction, active engagement in learning, and self-motivation; maintains effective classroom management; and is prepared to address behaviors related to substance abuse and other high-risk behaviors.    g.    Communication.The teacher candidate uses knowledge of effective verbal, nonverbal, and media communication techniques, and other forms of symbolic representation, to foster active inquiry and collaboration and to support interaction in the classroom.    h.    Assessment.The teacher candidate understands and uses formal and informal assessment strategies to evaluate the continuous intellectual, social, and physical development of the student, and effectively uses both formative and summative assessment of students, including student achievement data, to determine appropriate instruction.    i.    Foundations, reflective practice and professional development.The teacher candidate develops knowledge of the social, historical, and philosophical foundations of education. The teacher candidate continually evaluates the effects of the candidate’s choices and actions on students, parents, and other professionals in the learning community; actively seeks out opportunities to grow professionally; and demonstrates an understanding of teachers as consumers of research and as researchers in the classroom.    j.    Collaboration, ethics and relationships.The teacher candidate fosters relationships with parents, school colleagues, and organizations in the larger community to support student learning and development; demonstrates an understanding of educational law and policy, ethics, and the profession of teaching, including the role of boards of education and education agencies; and demonstrates knowledge of and dispositions for cooperation with other educators, especially in collaborative/co-teaching as well as in other educational team situations.    a.    Learner development.The teacher understands how learners grow and develop, recognizing that patterns of learning and development vary individually within and across the cognitive, linguistic, social, emotional, and physical areas, and designs and implements developmentally appropriate and challenging learning experiences.     b.    Learning differences.The teacher uses understanding of individual differences and diverse cultures and communities to ensure inclusive learning environments that enable each learner to meet high standards.    c.    Learning environments.The teacher works with others to create environments that support individual and collaborative learning, and that encourage positive social interaction, active engagement in learning, and self-motivation.    d.    Content knowledge.The teacher understands the central concepts, tools of inquiry, and structures of the discipline(s) he or she teaches and creates learning experiences that make the discipline accessible and meaningful for learners to assure mastery of the content.    e.    Application of content. The teacher understands how to connect concepts and use differing perspectives to engage learners in critical thinking, creativity, and collaborative problem solving related to authentic local and global issues.    f.    Assessment.The teacher understands and uses multiple methods of assessment to engage learners in their own growth, to monitor learner progress, and to guide the teacher’s and learner’s decision making.    g.    Planning for instruction.The teacher plans instruction that supports every student in meeting rigorous learning goals by drawing upon knowledge of content areas, curriculum, cross-disciplinary skills, and pedagogy, as well as knowledge of learners and the community context.    h.    Instructional strategies.The teacher understands and uses a variety of instructional strategies to encourage learners to develop deep understanding of content areas and their connections, and to build skills to apply knowledge in meaningful ways.    i.    Professional learning and ethical practice.The teacher engages in ongoing professional learning and uses evidence to continually evaluate his/her practice, particularly the effects of his/her choices and actions on others (learners, families, other professionals, and the community), and adapts practice to meet the needs of each learner.     j.    Leadership and collaboration.The teacher seeks appropriate leadership roles and opportunities to take responsibility for student learning, to collaborate with learners, families, colleagues, other school professionals, and community members to ensure learner growth, and to advance the profession.    k.    Technology.The teacher candidate effectively integrates technology into instruction to support student learning.    l.    Methods of teaching.MethodsThe teacher candidate understands and uses methods of teachingthat have an emphasis on the subject and grade-level endorsement desired.

    ITEM 5.    Rescind subrule 79.15(6) and adopt the following new subrule in lieu thereof:    79.15(6)   Each teacher candidate must either meet or exceed a score above the 25th percentile nationally on subject assessments designed by a nationally recognized testing service that measure pedagogy and knowledge of at least one subject area as approved by the director of the department of education, or the teacher candidate must meet or exceed the equivalent of a score above the 25th percentile nationally on an alternate assessment also approved by the director. That alternate assessment must be a valid and reliable subject-area-specific, performance-based assessment for preservice teacher candidates that is centered on student learning.

    ITEM 6.    Rescind subrule 79.15(7) and adopt the following new subrule in lieu thereof:    79.15(7)   Each teacher candidate must complete a 30-semester-hour teaching major which must minimally include the requirements for at least one of the basic endorsement areas, special education teaching endorsements, or secondary level occupational endorsements. Additionally, each elementary teacher candidate must also complete a field of specialization in a single discipline or a formal interdisciplinary program of at least 12 semester hours. Each teacher candidate meets all requirements established by the board of educational examiners for any endorsement for which the teacher candidate is recommended.

    ITEM 7.    Renumber subrule 79.15(8) as 79.15(9).

    ITEM 8.    Adopt the following new subrule 79.15(8):    79.15(8)   Each teacher candidate demonstrates competency in content coursework directly related to the Iowa Core.    [Filed 1/19/17, effective 3/22/17][Published 2/15/17]Editor’s Note: For replacement pages for IAC, see IAC Supplement 2/15/17.
ARC 2949CEnvironmental Protection Commission[567]Adopted and Filed

    Pursuant to the authority of Iowa Code section 455B.133, the Environmental Protection Commission (Commission) hereby amends Chapter 20, “Scope of Title—Definitions—Forms—Rules of Practice,” Chapter 21, “Compliance,” Chapter 22, “Controlling Pollution,” Chapter 23, “Emission Standards for Contaminants,” Chapter 25, “Measurement of Emissions,” Chapter 26, “Prevention of Air Pollution Emergency Episodes,” Chapter 27, “Certificate of Acceptance,” Chapter 28, “Ambient Air Quality Standards,” Chapter 31, “Nonattainment Areas,” and Chapter 33, “Special Regulations and Construction Permit Requirements for Major Stationary Sources—Prevention of Significant Deterioration (PSD) of Air Quality,” Iowa Administrative Code.    The purpose of the rule making is to:    1. Rescind unnecessary rules and update other rules to provide regulatory certainty and flexibility. The amendments implement a portion of the Department of Natural Resources’ (Department) five-year review of rules plan to accomplish the requirements of Iowa Code section 17A.7(2).    2. Offer uniform rules by making changes that match federal regulations and eliminate inconsistencies between federal and state rules. By adopting federal updates into state administrative rules, the Commission is ensuring that Iowa’s air quality rules are no more stringent than federal regulations. Additionally, the updates allow the Department, rather than the United States Environmental Protection Agency (EPA), to be the primary agency to implement the air quality requirements in Iowa, thereby allowing the Department and its partners to provide compliance assistance and outreach to affected facilities.    Notice of Intended Action was published in the Iowa Administrative Bulletin on November 9, 2016, as ARC 2799C, and a public hearing was held on December 12, 2016, in Windsor Heights, Iowa. The Department received no comments at the public hearing. The Department received one written comment prior to the December 12, 2016, deadline for public comments. In response to the public comment, the Commission made clarifying changes to the adopted amendment in Item 8, as described below, from the amendment published under Notice of Intended Action. The Commission did not make any other changes from the amendments published under Notice of Intended Action. The Department’s public participation responsiveness summary is available from the Department upon request.    Item 1 amends the title of Chapter 20 to shorten and correct the title so that it better describes what is included in the chapter.    Item 2 amends rule 567—20.1(455B,17A) to update the summaries that describe each chapter of the air quality rules. The amendments in Items 1 and 2 implement a portion of the Department’s five-year review of rules plan.    Item 3 amends rule 567—20.2(455B), the definition of “EPA reference method,” to adopt the most current EPA methods for measuring air pollutant emissions (stack testing and continuous monitoring). On September 13, 2010, February 27, 2014, and April 2, 2014, EPA revised the reference methods in 40 Code of Federal Regulations (CFR) Parts 51, 60, 61, and 63 to eliminate outdated procedures, add alternative testing methods, and restructure the audit program. EPA’s changes to the audit program allow providers to supply audit samples and require facilities to obtain and use samples from either EPA or the accredited providers. On January 18, 2012, EPA also made administrative changes to the continuous monitoring methods in 40 CFR Part 75 for the acid rain program. Adopting EPA’s updates ensures that state reference methods match current federal reference methods and are not more stringent than the federal methods. Further, the alternative test methods and restructured audit program offer regulatory flexibility to affected facilities. The amendments in Items 10, 17, 20, 21, 22, 25, and 26 are adopted concurrently with this amendment to similarly reflect updates to EPA testing and monitoring methods as the methods apply to specific air quality programs.    Item 4 rescinds subrule 21.1(4), which specifies the emissions inventory requirements for the Clean Air Interstate Rule (CAIR). EPA rescinded the referenced federal CAIR requirements, so the provisions in subrule 21.1(4) are no longer necessary and are being removed.    Item 5 amends paragraph 22.1(1)“b” to remove the federal amendment date for the referenced federal regulation and adds language to instead refer to the state rule in which the federal regulation is adopted by reference. The provisions of 40 CFR Part 63 are adopted by reference in Chapter 23 (specifically, subrule 23.1(4)). This amendment implements a portion of the Department’s five-year review of rules plan by eliminating repetition of federal reference dates.    Item 6 amends subparagraph 22.1(1)“c”(2) to adopt the two most recent changes made by EPA to the federal air quality control strategies for lead. EPA made changes to 40 CFR Part 51, Subpart G, on November 12, 2008, and February 19, 2015. This amendment ensures that this subparagraph references all federal control requirements for lead nonattainment areas and that state control strategy requirements are not more stringent than federal requirements. Iowa currently has one area of the state, in Council Bluffs, that is not meeting the air quality standards for lead and is a nonattainment area to which these control strategies apply.    Item 7 amends subrule 22.1(2) to make updates to the exemptions from construction permitting, as described below.    The introductory paragraphs are updated to clarify that facilities applying for plantwide applicability limitations (PALs), as specified in rule 567—33.9(455B), are eligible to use the construction permitting exemptions.    Paragraph 22.1(2)“b” is updated to revise the reference to federal regulations. EPA amended the specifications for burning used oil set forth in 40 CFR 279.11 on July 14, 2006, to correct typographical errors, spelling errors, and incorrect citations. EPA’s amendments did not create any new regulatory requirements. This update ensures the exemption from the requirement for a construction permit for equipment burning used oil references the current federal requirements.    Paragraph 22.1(2)“x” is updated to remove a misplaced comma.    Paragraph 22.1(2)“ff” is updated to correct an error in a technical equation.    Paragraph 22.1(2)“oo” is updated to revise the reference to federal regulations. On April 30, 2010, EPA updated 40 CFR 1068.30 to clarify the definition of “engine.” This amendment ensures the exemption from a requirement for a construction permit for non-road diesel engines references current federal regulations.    Item 8 amends subrule 22.1(3) to reduce the number of copies of a construction permit application required to be submitted to the Department. Except for projects subject to prevention of significant deterioration (PSD) or nonattainment new source review (NSR), only one hard copy of the application (instead of two copies) needs to be submitted. For PSD or nonattainment NSR projects, the Department may request an additional hard copy or electronic copy. These changes reduce the regulatory burden on affected facilities and implement a portion of the Department’s five-year review of rules plan.    The Department received a public comment on the Notice of Intended Action requesting additional changes to subrule 22.1(3). Specifically, the commenter requested that the subrule better clarify that the provisions for submitting a construction permit for an anaerobic lagoon at an animal feeding operation are set forth in 567—Chapter 65. The Commission agrees with the commenter’s suggestion and has included clarifying revisions in the adopted amendment.    Item 9 amends paragraph 22.1(3)“b” to replace the outdated form title, “Air Construction Permit Application,” with the current instructions for submitting an application on forms available on the Department’s Web site. This change fulfills a portion of the Department’s five-year review of rules plan.    Item 10 amends rule 567—22.100(455B) to update specific definitions applicable to the Title V Operating Permit (Title V) program, as described below.    The definition of “designated representative” is revised to update the reference to federal regulations to reflect administrative changes to 40 CFR Part 72.    The definition of “EPA reference method” is updated to adopt the most current federal reference methods for stack tests and continuous emissions monitoring, as described above for Item 3.    The definition of “existing hazardous air pollutant source” is revised to remove federal amendment dates and add the cross references to the state rules in which the federal regulations are adopted by reference. The federal definitions applicable to this Title V definition are adopted by reference in subrules 23.1(3) and 23.1(4).    The definition of “high-risk pollutant” is updated to remove the federal amendment date and to add the cross reference to the state rule in which the federal regulation is adopted by reference (subrule 23.1(4)).    The definition of “major source” is revised to reflect the March 6, 2015, changes EPA made to that definition as it applies in nonattainment areas.    The updates in this amendment make certain that the state rules for the Title V program are consistent with federal requirements and are no more stringent than federal requirements. Additionally, the amendment implements a portion of the Department’s five-year review of rules plan by making clear which federal standards are already adopted into state rules and by eliminating unnecessary federal reference dates.    Item 11 amends the definition of “subject to regulation” to adopt the updated federal methods for estimating and reporting greenhouse gas emissions.    Item 12 amends subrule 22.102(3) to update the Title V exemptions. Facilities affected by specific federal New Source Performance Standards (NSPS) and National Emission Standards for Hazardous Air Pollutants (NESHAP) are exempt from the Title V program if being subject to these standards is the only reason a facility would be required to obtain a Title V permit. This amendment specifies which NSPS and NESHAP are adopted by reference in Chapter 23, as explained in Items 19, 20, and 21. The changes made in this amendment ensure that the Title V exemptions are up to date and include all exempt equipment and processes.    Item 13 amends subrule 22.103(1) to adopt the October 6, 2009, changes that EPA made to 40 CFR 70.5. Making this change ensures that state rules for Title V insignificant activities include up-to-date references to federal regulations.    Item 14 amends paragraph 22.103(2)“b” to add indirect cooling to the description of fuel-burning equipment that may be classified as an insignificant activity for the Title V program. This update provides regulatory relief for Title V facilities with indirect cooling devices. Additionally, this amendment updates the reference to federal regulations for burning used oil, as explained above for Item 7. These changes also achieve consistency in the air quality rules by making the requirements for this Title V insignificant activity identical to the construction permitting exemption for the same equipment.    Item 15 amends rule 567—22.105(455B) to update the mailing address for the EPA Region VII offices and to provide regulatory relief to facilities that are submitting a Title V application and have previously submitted an annual emissions inventory.    Currently, all facilities submitting a Title V initial application or renewal application must also submit all of the emissions inventory forms and calculations. Many times, however, a facility has already submitted this information with the annual emissions inventory, which is typically due before the Title V application. The amendment allows the Department to notify a facility that, if the required emissions inventory information has already been submitted, the facility does not need to provide the same information with the Title V application.    These two changes eliminate redundant information, reduce the regulatory burden on affected facilities and implement a portion of the Department’s five-year review of rules plan.    Item 16 amends subparagraph 22.108(17)“a”(2) to update the reference to federal regulations in 40 CFR 70.4. The amendment ensures that state Title V provisions reference the most current federal regulations.    Item 17 amends the introductory paragraph of rule 567—22.120(455B) to update the adoption by reference of definitions in 40 CFR Part 72 to match the current federal regulations for the acid rain program.    Item 18 amends rule 567—22.120(455B) to update definitions applicable to 40 CFR Parts 72, 75, and 78 to ensure that state rules for the acid rain program reference the most current federal regulations.    Item 19 amends subrule 22.128(4) to reduce the number of submittals required for the acid rain program to two copies of the application. This change reduces the regulatory burden for affected facilities and implements a portion of the Department’s five-year review of rules plan.    New Source Performance Standards and Air Toxics Standards (Items 20, 21, and 22)    The U.S. Clean Air Act (CAA) obligates the EPA to issue standards to control air pollution. Two categories of standards, the New Source Performance Standards (NSPS) and National Emission Standards for Hazardous Air Pollutants (NESHAP), set standards and deadlines for industrial, commercial or institutional facilities to meet uniform standards for equipment operation and air pollutant emissions.    NESHAP regulations differ depending on whether a facility is a “major source” or an “area source.” Major sources are typically larger facilities and have potential emissions of 10 tons or more per year of any single hazardous air pollutant (also known as “HAP” or “air toxics”) or 25 tons or more of any combination of HAPs. Area sources have potential air toxics emissions at less than the major source thresholds. Although area sources generally emit less air toxics than major sources, area sources are more numerous and may collectively cause adverse impacts to public health.    Because the NSPS and NESHAP proposed for adoption are federal regulations, affected sources are subject to the federal requirements regardless of whether the Commission adopts the standards into state rules. However, the CAA allows a state or local agency to implement NSPS and NESHAP as a “delegated authority.” Upon state adoption, the Department becomes the delegated authority for the specific NSPS or NESHAP and is the primary implementation agency in Iowa. Two local agencies, Polk County and Linn County, implement these standards within their counties. Iowa’s rules, including all compliance deadlines, are identical to the federal NSPS and NESHAP as of a specific date.    Stakeholders affected by NSPS and NESHAP typically prefer for the Department, rather than the EPA, to be the primary implementation authority. Upon adoption of the new and amended NSPS and NESHAP, the Department will work with affected facilities to provide compliance assistance, as needed. Additionally, affected area sources that are small businesses are eligible for free assistance from the Iowa Air Emissions Assistance Program through the University of Northern Iowa.    NSPS Amendments    Item 20 amends subrule 23.1(2) to adopt new and revised NSPS, as described below.    The text in parentheses in each section heading below indicates the applicable subpart(s) in 40 CFR Part 60 and the corresponding paragraph(s) in subrule 23.1(2).    Fossil Fuel-Fired Steam Generators (Subpart D; paragraph 23.1(2)“a”)    These changes make clear that recent EPA revisions to the standards for fossil fuel-fired steam generators are not adopted into state rules. EPA finalized amendments to the NSPS in conjunction with finalizing NESHAP standards commonly known as the Mercury Air Toxics Standards (MATS). Because of current litigation affecting the MATS and the NSPS amendments, the NSPS amendments that EPA finalized on and after February 16, 2012, are not adopted in this rule making. Rather, only the federal amendments as published through January 20, 2011, are adopted (these are the NSPS amendments currently adopted in paragraph 23.1(2)“a”). The same changes are made for other, similar NSPS affecting fossil fuel-fired units, as described below.    Portland Cement Plants (Subpart F; paragraph 23.1(2)“c”)    The amendment adopts the revisions to the NSPS that EPA published on September 11, 2015, July 27, 2015, and February 12, 2013, that resolve litigation and reconsiderations of the NSPS amendments that EPA issued in 2010. The revisions apply only to sources that commenced construction, reconstruction or modification after May 6, 2009. Because the 2015 changes to the Portland cement NSPS are the most recent changes of all the NSPS amendments being adopted in subrule 23.1(2), September 11, 2015, is the overall NSPS amendment date indicated in the introductory paragraph of subrule 23.1(2).    Existing Nitric Acid Plants (Subpart G; paragraph 23.1(2)“d”)    The amendment specifies that Subpart G now applies only to nitric acid production units that commenced construction or modification after August 17, 1971, and on or before October 14, 2011. Any facility that commenced construction or modification after October 14, 2011, is subject to Subpart Ga, as noted for the description of paragraph “bbbb” below.    Hot Mix Asphalt Plants (Subpart I; paragraph 23.1(2)“f”)    The Commission is revising outdated and incomplete descriptions of the NSPS for hot mix asphalt plants. EPA did not make any changes to the NSPS. However, modernizing the descriptions of the NSPS provides clarity to regulated entities and the public and assists in implementing the Department’s five-year review of rules plan.    Electric Utility Steam Generating Units (Subpart Da; paragraph 23.1(2)“z”)    Because of current litigation as described above for paragraph 23.1(2)“a,” the NSPS amendments that EPA finalized on and after February 16, 2012, are not adopted in this rule making. Rather, only the federal amendments as published through January 20, 2011, are adopted.    Industrial-Commercial-Institutional Steam Generating Units (Subpart Db; paragraph 23.1(2)“ccc”)    Because of current litigation as described above for paragraph 23.1(2)“a,” the NSPS amendments that EPA finalized on and after February 16, 2012, are not adopted in this rule making. Rather, only the federal amendments as published through January 20, 2011, are adopted.    Small Industrial-Commercial-Institutional Steam Generating Units (Subpart Dc; paragraph 23.1(2)“lll”)    Because of current litigation as described above for paragraph 23.1(2)“a,” the NSPS amendments that EPA finalized on and after February 16, 2012, are not adopted in this rule making. Rather, only the federal amendments as published through January 20, 2011, are adopted.    Commercial and Industrial Solid Waste Incineration (Subpart CCCC; paragraph 23.1(2)“vvv”)    This paragraph is being updated to make clear that recent EPA amendments to the NSPS for commercial and industrial solid waste incinerators (CISWI) are not adopted. EPA revised the NSPS in 2011 and again in 2013, but the EPA amendments were still under active EPA reconsideration and current litigation when the Notice of Intended Action for this rule making was approved by the Commission. The adopted amendment specifies that only the federal amendments as published through December 1, 2000, are adopted (these are the NSPS amendments that were previously adopted in paragraph 23.1(2)“vvv”).    New Nitric Acid Plants (Subpart Ga; paragraph 23.1(2)“bbbb”)    On August 14, 2012, EPA published the NSPS for new, reconstructed, and modified nitric acid plants. Adoption of this standard allows the Department to provide additional regulatory assistance to fertilizer plants permitted for construction or modification after October 14, 2011.    Test Methods (Amendments throughout Part 60)    The amendment adopts the changes EPA made to the NSPS test methods, as explained in the description above for Item 3.    NESHAP Amendments    Item 21 amends subrule 23.1(3) to adopt revisions to the NESHAP standards in 40 CFR Part 61 for EPA’s updates to test methods, as explained above for Item 3.    Item 22 amends subrule 23.1(4) to adopt federal amendments to the NESHAP for source categories, as described below.    The text in parentheses in each section heading below indicates the applicable subpart(s) in 40 CFR Part 63 and the corresponding paragraph(s) in subrule 23.1(4). With the exceptions of the amendments described below for paragraphs 23.1(4)“bl” and “cz,” the amendments to the other NESHAP are adopted through updating the overall NESHAP amendment date in the introductory paragraph of subrule 23.1(4); thus, the paragraphs themselves are not being revised. This amendment also rescinds the adoption of a NESHAP affecting petroleum refineries and removes outdated references to two NESHAP affecting brick and structural clay manufacturing and clay ceramics manufacturing, as explained below.    Chromium Electroplating (Subpart N; paragraph 23.1(4)“n”)    The amendment adopts revisions to the NESHAP for chromium electroplating facilities that EPA published on September 19, 2012. The NESHAP affects both major sources and area sources. EPA’s updates establish new work practice and emission standards that will lower chromium emissions from some facilities and equipment.    Facilities were required to comply with the work practice standards specified in the NESHAP by March 19, 2013. Facilities subject to new emissions or control requirements were required to comply with the new provisions by September 19, 2014. The Department estimates 11 existing facilities are subject to this NESHAP.    Pulp and Paper Industry (Subpart S; paragraph 23.1(4)“s”)    The amendment adopts EPA’s revisions to the pulp and paper NESHAP that were published on September 11, 2012. At this time, no facilities in Iowa are affected by this NESHAP. However, the Department is aware of one facility that could become subject to the standards in the future should the facility expand or make changes to its production process.    Offsite Waste and Recovery Operations (Subpart DD; paragraph 23.1(4)“ad”)    The amendment adopts changes to the standards for offsite waste and recovery operations published on March 18, 2015. At this time, no facilities in Iowa are affected by this NESHAP. New facilities, or existing facilities that change their production lines, could become subject to this NESHAP in the future.    Wood Furniture Manufacturing (Subpart JJ; paragraph 23.1(4)“aj”)    The amendment adopts changes to the standards for wood furniture manufacturing published on November 21, 2011. This NESHAP affects only major sources. EPA’s revisions establish a work practice limit to reduce formaldehyde emissions from affected facilities. Facilities were required to comply with the new requirements by November 21, 2014. The Department estimates that nine existing facilities are currently subject to the NESHAP.    Generic MACT (Subpart YY; paragraph 23.1(4)“ay”)    The amendment adopts EPA’s recent changes to the “generic MACT” standards, published on October 8, 2014. EPA developed the generic MACT in 1999 as a consolidated rule for source categories consisting of five or fewer major sources. Through the generic MACT, EPA sets the Maximum Achievable Control Technology (MACT) for the specific source categories by referring to previously finalized MACT for similar sources in other categories. EPA’s stated goal in the generic MACT is to promote regulatory consistency and predictability.    Currently, one facility in Iowa is affected by the generic MACT. EPA’s recent revisions, however, do not apply to this facility.    Mineral Wool Production (Subpart DDD; paragraph 23.1(4)“bd”)    The amendment adopts changes to the standards for mineral wool production published on July 29, 2015. This standard affects only major facilities. At this time, no facilities in Iowa are affected by this NESHAP. New facilities, or existing facilities in Iowa that change their production lines, could become subject to this NESHAP in the future.    Natural Gas Transmission and Storage (Subpart HHH; paragraph 23.1(4)“bh”)    The amendment adopts EPA’s August 16, 2012, updates to the standards for natural gas transmission and storage. Facilities were required to comply with the new requirements by October 15, 2015. One facility has notified the Department that the facility is subject to the new NESHAP requirements.    Flexible Polyurethane Foam Production (Subpart III; paragraph 23.1(4)“bi”)    This update adopts the August 15, 2014, amendments to the standards for flexible polyurethane foam production. These standards apply only to major sources. New facilities, or existing facilities in Iowa that change their production lines, could become subject to this NESHAP in the future.    Portland Cement Plants (Subpart LLL; paragraph 23.1(4)“bl”)    The amendment adopts the revisions to the NESHAP that EPA published on July 25, 2016, September 11, 2015, July 27, 2015, and February 12, 2013, which resolve litigation and reconsiderations of the NESHAP that EPA issued in 2010. Because the 2016 revisions to the Portland cement NESHAP are the most recent changes of all the NESHAP amendments being adopted in subrule 23.1(4), July 25, 2016, is the overall NESHAP amendment date indicated in the introductory paragraph of subrule 23.1(4).    EPA’s amendments establish emission limits and monitoring methods for emissions of particulate matter, mercury, and air toxics from kilns. The amendments also establish work practices to reduce particulate emissions from open clinker storage piles. Additionally, EPA provides a temporary compliance alternative and extends the compliance date for affected facilities to meet the emission standards for kilns.    One facility has notified the Department that it is subject to NESHAP. One facility has notified the Department that it is not subject to the NESHAP requirements for kilns but is affected by the NESHAP requirements for clinker storage piles and other non-kiln-related requirements.    The amendments to Subpart LLL are adopted through updating the overall NESHAP amendment date in the introductory paragraph of subrule 23.1(4). The revision to paragraph 23.1(4)“bl” removes the older amendment date that is now obsolete with the adoption of the current NESHAP amendments.    Pesticide Active Ingredient Production (Subpart MMM; paragraph 23.1(4)“bm”)    This revision adopts EPA’s amendments to the standards for pesticide active ingredient production, published on March 27, 2014. This NESHAP affects only major sources. The updated NESHAP required compliance with some new requirements starting on March 27, 2014, and requires compliance with other new requirements by March 27, 2017. One facility has notified the Department that the facility is subject to the NESHAP.    Manufacture of Amino/Phenolic Resins (Subpart OOO; paragraph 23.1(4)“bo”)    This amendment adopts EPA’s October 8, 2014, updates to the standards for manufacture of amino/phenolic resins. This NESHAP applies only to major sources. New facilities, or existing facilities in Iowa that change their production lines, could become subject to this NESHAP in the future.    Petroleum Refineries: Catalytic Cracking Units, Catalytic Reforming Units, and Sulfur Recovery Units (Subpart UUU; paragraph 23.1(4)“bu”)    The Department identified that this previously adopted NESHAP does not affect any facilities in Iowa and is unlikely to affect any Iowa facilities in the future. The Commission is striking and removing the paragraph that adopts by reference this NESHAP. The removal accomplishes the Department’s goal of eliminating obsolete rules and meets the requirements in Iowa Code section 17A.7(2). If an affected facility should plan to locate in Iowa, the Department will evaluate whether to request adoption of the standards at that time. Removing the unnecessary provisions makes the rules more accessible and understandable for regulated entities and the public.    Emission Standards for Stationary Reciprocating Internal Combustion Engines (RICE NESHAP) (Subpart ZZZZ; paragraph 23.1(4)“cz”)    The Commission previously adopted the RICE NESHAP amendments that EPA finalized on January 30, 2013 (see ARC 1014C, IAB 9/18/13). Paragraph 23.1(4)“cz” is now being amended to remove the January 30, 2013, amendment date that is no longer needed because the introductory paragraph for subrule 23.1(4) now accurately reflects the current amendment date for all NESHAP adopted by reference in subrule 23.1(4), including the RICE NESHAP.    Brick and Structural Clay Products Manufacturing (Subpart JJJJJ; paragraph 23.1(4)“dj”)    This amendment removes an obsolete reference to the NESHAP for brick and structural clay manufacturing. The Commission had previously adopted the NESHAP. However, the NESHAP was subsequently vacated by the United States Court of Appeals for the District of Columbia Circuit (D.C. Circuit Court). The Commission consequently rescinded adoption by reference of the NESHAP, but retained the NESHAP description with a notation explaining the vacatur and rescission.    EPA finalized a new NESHAP on September 24, 2015, to replace the vacated standards. However, the new federal standards are currently under active litigation. At such time as the litigation is resolved, the Commission will consider whether to include adoption of the new standards in a future rule making.    The adoption by reference of the previous NESHAP is being removed because the reference is outdated and could cause confusion now that EPA has issued a new NESHAP.    Clay Ceramics Manufacturing (Subpart KKKKK; paragraph 23.1(4)“dk”)    This amendment removes an obsolete reference to the NESHAP for clay ceramics manufacturing. The Commission had previously adopted the NESHAP. However, the NESHAP was subsequently vacated by the D.C. Circuit Court concurrently with the vacating of the NESHAP for brick and structural clay manufacturing. The Commission did not rescind adoption of the NESHAP for clay ceramics manufacturing at that time because the NESHAP did not affect any Iowa facilities and was unlikely to affect any Iowa facilities in the future.    EPA finalized a new NESHAP on September 24, 2015, to replace the vacated standards. The Commission will consider whether to include adoption of the new standards in a future rule making.    The paragraph adopting the previous, vacated NESHAP is being removed because the paragraph is outdated and could cause confusion now that EPA has issued a new NESHAP.    Test Methods (Amendments throughout Part 63)    The amendment also adopts the changes EPA made to the NESHAP test methods, as explained in the description above for Item 3.    Item 23 amends subparagraph 23.1(5)“a”(3) to correct an error in the emission guidelines for municipal solid waste landfills. This update clarifies that landfills must meet both the size and weight requirements indicated in the subparagraph, rather than only one of these requirements, to be subject to the emission guidelines. The amendment makes the requirements consistent with the regulatory flexibility specified elsewhere in the emission guidelines.    Item 24 amends subrule 23.3(1) to clarify that facility operations subject to performance standards under subrule 23.1(2) (NSPS) are not also subject to the emission standards specified in rule 567—23.3(455B).    Item 25 amends subrule 25.1(9) to adopt the revised federal methods for emissions testing and monitoring as described above for Item 3. The updates will make certain that only current federal test methods are used to demonstrate compliance with permit conditions and that required test methods are no more stringent than federal methods.    Item 26 amends rule 567—25.2(455B) to adopt federal updates for monitoring methods under the acid rain program, as noted above for Item 3. This update ensures that state air quality rules for testing and monitoring are consistent and match federal regulations.    Item 27 amends subrule 26.2(2) to reflect the current federal levels and terminology for air pollution emergency episodes for ozone and particulate matter to be used in making determinations for the declaration of an emergency episode condition.    Item 28 amends rule 567—27.1(455B) to correct a reference to the Iowa Code from section 455B.145 to 455B.139.    Item 29 amends paragraph 27.3(4)“c” to revise the variance procedures for local programs to be consistent with the Department’s variance procedures and rules specified in Chapter 21. This change provides regulatory certainty for affected facilities and additional flexibility for approved local air quality programs.    Item 30 amends rule 567—28.1(455B) to adopt by reference EPA’s revisions to the National Ambient Air Quality Standards (NAAQS) for fine particulate matter (PM 2.5 ). On January 15, 2013, EPA published amendments to the primary (health-based) annual PM 2.5 standard by lowering the level from 15.0 micrograms per cubic meter (mg/m 3 ) to 12.0 mg/m 3 to provide increased protection against health effects associated with long-term exposures. The Department has determined that no other changes to air quality rules are needed to implement the revised NAAQS for PM 2.5 .    Item 31 rescinds and reserves rule 567—31.2(455B) to remove the adoption by reference of federal “general conformity” requirements specified in 40 CFR Part 93, Subpart B. The general conformity provisions require federal agencies to meet criteria for federal actions conducted in nonattainment areas. Prior to 2005, the CAA required states to include general conformity requirements in any State Implementation Plan (SIP) submitted for a nonattainment area. The CAA was revised in 2005 to eliminate this requirement, and EPA subsequently updated regulations in 40 CFR 51.851 to make a general conformity SIP optional for states. The federal general conformity requirements in 40 CFR Part 93 continue to apply to federal agencies without the need for identical state rules or SIPs. Consistent with the Department’s five-year review of rules plan, Iowa’s general conformity provisions are no longer necessary and are being rescinded.    Item 32 amends rule 567—33.1(455B) to reflect EPA’s revisions to the PSD program. The specific revisions are adopted in Items 33, 34, 35, 36, and 37 and are described below.    Item 33 amends subrule 33.3(1) by defining “subject to regulation” in the same manner as described above for Item 11 to adopt the updated federal methods for estimating and reporting greenhouse gas emissions. Item 33 also revises the definition of “subject to regulation” to remove thresholds related to greenhouse gases. The revision is identical to the changes EPA made to federal PSD regulations on August 19, 2015.    Item 34 amends subrule 33.3(9) to adopt by reference EPA’s revision to 40 CFR 52.21(i). On December 9, 2013, EPA rescinded the significant monitoring concentration for PM 2.5 . On March 6, 2015, EPA added provisions explaining that areas designated as nonattainment for a NAAQS, and for which the NAAQS have since been revoked, are not considered to be current nonattainment areas. Specific PSD requirements may apply to facilities in those areas. This amendment makes certain that the state PSD requirements are identical to current federal regulations and are not more stringent than federal regulations.    Item 35 amends subrule 33.3(11) to adopt EPA’s updates to 40 CFR 52.21(k), published on December 9, 2013, to remove the Significant Impact Levels for PM 2.5 . This change ensures that state PSD provisions match federal regulations.    Item 36 amends subrule 33.3(20) by correcting the table that lists the federal significance levels for PSD major source or major modification to remove the inaccurate title, “Significant Impact Levels (SILs).” This change should improve clarity for regulated facilities referring to these provisions.    Item 37 amends subrule 33.3(22) to allow for rescission of PSD permits that are no longer required for a source classified as major for PSD solely because of the source’s greenhouse gas emissions or for a source emitting major levels of other pollutants that underwent a modification resulting in an increase of only greenhouse gas emissions above the levels specified for a major modification. This update matches changes EPA made to the federal PSD regulations in 40 CFR 52.21(w), published on May 7, 2015, and August 19, 2015.    Jobs Impact Statement    The following is a summary of the jobs impact statement. The complete jobs impact statement is available from the Department upon request.    After analysis and review, the Commission has determined that the amendments adopted in Items 1 through 19 and Items 23 through 37 will have no impact on private sector jobs or will have a positive impact on private sector jobs. These amendments rescind unnecessary rules, update other rules, and streamline the rules to provide regulatory certainty and, in some cases, regulatory relief. These amendments also implement a portion of the Department’s five-year review of rules plan as required under Iowa Code section 17A.7(2). Additionally, most of these amendments make changes that match federal regulations and eliminate inconsistencies between federal regulations and state rules. By adopting federal updates into state rules, the Commission is ensuring that Iowa’s air quality rules are no more stringent than federal regulations.    For the amendments adopted for Items 20, 21, and 22 (adoption of new and amended NSPS and NESHAP), the Commission has determined that jobs could be impacted. However, the amendments are only implementing federally mandated regulations. The amendments are identical to the federal regulations and would not impose any regulations on Iowa businesses not already required by federal law. In some cases, the revised federal standards being adopted provide more flexibility and potential cost savings for affected businesses, offering a positive impact on private sector jobs. Further, the amendments allow the Department, rather than EPA, to be the primary agency to implement the standards in Iowa, thereby allowing the Department and its partners to provide compliance assistance to affected facilities. The amendment in Item 22 also removes the adoption by reference of two NESHAP and removes an obsolete reference to one NESHAP. Eliminating unnecessary rules implements a portion of the Department’s five-year review of rules plan as required under Iowa Code section 17A.7(2).    These amendments are intended to implement Iowa Code sections 455B.133, 455B.139 and 455B.145.    These amendments will become effective on March 22, 2017.     The following amendments are adopted.

    ITEM 1.    Amend 567—Chapter 20, title, as follows:SCOPE OF TITLE—DEFINITIONS—FORMS—RULES OF PRACTICE

    ITEM 2.    Amend rule 567—20.1(455B,17A) as follows:

567—20.1(455B,17A) Scope of title.  The department has jurisdiction over the atmosphere of the state to prevent, abate and control air pollution, by establishing standards for air quality and by regulating potential sources of air pollution through a system of general rules or specific permits. The construction and operation of any new or existing stationary source which emits or may emit any air pollutant requires a specific permit from the department, unless exempted by the department.This chapter provides general definitions applicable to this title and rules of practice, including forms, applicable to the public in the department’s administration of the subject matter of this title.Chapter 21 contains the provisions requiring compliance schedules, allowing for variances, and setting forth the emission reduction program. Chapter 22 contains the standards and procedures for the permitting of emission sources. Chapter 23 contains the air emission standards for contaminants. Chapter 24 provides for the reporting of excess emissions and the equipment maintenance and repair requirements. Chapter 25 contains the testing and sampling requirements for new and existing sources. Chapter 26 identifies air pollution emergency episodes and the preplanned abatement strategies. Chapter 27 sets forth the conditions political subdivisions must meet in order to secure acceptance of a local air pollution control program. Chapter 28 identifies the state ambient air quality standards. Chapter 29 sets forth the qualifications for an observer for reading visible emissions. Chapter 30 sets forth requirements to pay fees for specified activities. Chapter 31 contains the conformity of general federal actions to the Iowa state implementation plan or federal implementation plan and requirements for areas designated nonattainmentrules for the nonattainment major new source review (NSR) program and general conformity. Chapter 32 specifies requirements for conducting the animal feeding operations field study. Chapter 33 contains special regulations and construction permit requirements for major stationary sources and includes the requirements for prevention of significant deterioration (PSD). Chapter 34 contains provisions for air quality emissions trading programs.Chapter 35 specifies the requirements for the department to provide financial assistance to eligible applicants for the purpose of reducing air pollution emissions.All dates specified in reference to the Code of Federal Regulations (CFR) are the dates of publication of the last amendments to the portion of the CFR being cited.

    ITEM 3.    Amend rule 567—20.2(455B), definition of “EPA reference method,” as follows:        "EPA reference method" means the following methods used for performance tests and continuous monitoring systems:
  1. Performance test (stack test). A stack test shall be conducted according to EPA reference methods specified in 40 CFR 51, Appendix M (as amended through December 21, 2010April 2, 2014); 40 CFR 60, Appendix A (as amended through September 9, 2010February 27, 2014); 40 CFR 61, Appendix B (as amended through October 17, 2000February 27, 2014); and 40 CFR 63, Appendix A (as amended through August 20, 2010February 27, 2014).
  2. Continuous monitoring systems. Minimum performance specifications and quality assurance procedures for performance evaluations of continuous monitoring systems are as specified in 40 CFR 60, Appendix B (as amended through September 9, 2010February 27, 2014); 40 CFR 60, Appendix F (as amended through September 9, 2010February 27, 2014); 40 CFR 75, Appendix A (as amended through March 28, 2011January 18, 2012); 40 CFR 75, Appendix B (as amended through March 28, 2011); and 40 CFR 75, Appendix F (as amended through March 28, 2011January 18, 2012).

    ITEM 4.    Rescind and reserve subrule 21.1(4).

    ITEM 5.    Amend paragraph 22.1(1)"b" as follows:    b.    New or reconstructed major sources of hazardous air pollutants. No person shall construct or reconstruct a major source of hazardous air pollutants, as defined in 40 CFR 63.2 and 40 CFR 63.41 as amended through April 22, 2004as adopted by reference in 567—subrule 23.1(4), unless a construction permit has been obtained from the department, which requires maximum achievable control technology for new sources to be applied. The permit shall be obtained prior to the initiation of construction or reconstruction of the major source.

    ITEM 6.    Amend subparagraph 22.1(1)"c" as follows:    (2)   The applicant must cease construction if the department’s evaluation demonstrates that the construction, reconstruction or modification of the source will interfere with the attainment or maintenance of the national ambient air quality standards or will result in a violation of a control strategy required by 40 CFR Part 51, Subpart G, as amended through August 12, 1996February 19, 2015.

    ITEM 7.    Amend subrule 22.1(2) as follows:    22.1(2) Exemptions.  The requirement to obtain a permit in subrule 22.1(1) is not required for the equipment, control equipment, and processes listed in this subrule. The permitting exemptions in this subrule do not relieve the owner or operator of any source from any obligation to comply with any other applicable requirements. Equipment, control equipment, or processes subject to rule 567—22.4(455B) and 567—Chapter 33(except rule 567—33.9(455B)), prevention of significant deterioration requirements, or rule 567—22.5(455B) or 567—31.3(455B), requirements for nonattainment areas, may not use the exemptions from construction permitting listed in this subrule. Equipment, control equipment, or processes subject to 567—subrule 23.1(2), new source performance standards (40 CFR Part 60 NSPS); 567—subrule 23.1(3), emission standards for hazardous air pollutants (40 CFR Part 61 NESHAP); 567—subrule 23.1(4), emission standards for hazardous air pollutants for source categories (40 CFR Part 63 NESHAP); or 567—subrule 23.1(5), emission guidelines, may still use the exemptions from construction permitting listed in this subrule provided that a permit is not needed to create federally enforceable limits that restrict potential to emit. If equipment is permitted under the provisions of rule 567—22.8(455B), then no other exemptions shall apply to that equipment.Records shall be kept at the facility for exemptions that have been claimed under the following paragraphs: 22.1(2)“a” (for equipment > 1 million Btu per hour input), 22.1(2)“b,”22.1(2)“e,”22.1(2)“r” or 22.1(2)“s.” The records shall contain the following information: the specific exemption claimed and a description of the associated equipment. These records shall be made available to the department upon request.The following paragraphs are applicable to paragraphs 22.1(2)“g” and “i.” A facility claiming to be exempt under the provisions of paragraph 22.1(2)“g” or “i” shall provide to the department the information listed below. If the exemption is claimed for a source not yet constructed or modified, the information shall be provided to the department at least 30 days in advance of the beginning of construction on the project. If the exemption is claimed for a source that has already been constructed or modified and that does not have a construction permit for that construction or modification, the information listed below shall be provided to the department within 60 days of March 20, 1996. After that date, if the exemption is claimed by a source that has already been constructed or modified and that does not have a construction permit for that construction or modification, the source shall not operate until the information listed below is provided to the department:
  • A detailed emissions estimate of the actual and potential emissions, specifically noting increases or decreases, for the project for all regulated pollutants (as defined in rule 567—22.100(455B)), accompanied by documentation of the basis for the emissions estimate;
  • A detailed description of each change being made;
  • The name and location of the facility;
  • The height of the emission point or stack and the height of the highest building within 50 feet;
  • The date for beginning actual construction and the date that operation will begin after the changes are made;
  • A statement that the provisions of rules 567—22.4(455B), 567—22.5(455B), and 567—31.3(455B) and 567—Chapter 33(except rule 567—33.9(455B)) do not apply; and
  • A statement that the accumulated emissions increases associated with each change under paragraph 22.1(2)“i,” when totaled with other net emissions increases at the facility contemporaneous with the proposed change (occurring within five years before construction on the particular change commences), have not exceeded significant levels, as defined in 40 CFR 52.21(b)(23) as amended through October 20, 2010, and adopted in rules 567—22.4(455B) and 567—33.3(455B), and will not prevent the attainment or maintenance of the ambient air quality standards specified in 567—Chapter 28. This statement shall be accompanied by documentation for the basis of these statements.
  • The written statement shall contain certification by a responsible official as defined in rule 567—22.100(455B) of truth, accuracy, and completeness. This certification shall state that, based on information and belief formed after reasonable inquiry, the statements and information in the document are true, accurate, and complete.    a.    Fuel-burning equipment for indirect heating and reheating furnaces or cooling units using natural gas or liquefied petroleum gas with a capacity of less than ten million Btu per hour input per combustion unit.    b.    Fuel-burning equipment for indirect heating orindirect cooling with a capacity of less than 1 million Btu per hour input per combustion unit when burning untreated wood, untreated seeds or pellets, other untreated vegetative materials, or fuel oil, provided that the equipment and the fuel meet the conditions specified in this paragraph. Used oils meeting the specification from 40 CFR 279.11 as amended through May 3, 1993July 14, 2006, are acceptable fuels for this exemption. When combusting used oils, the equipment must have a maximum rated capacity of 50,000 Btu or less per hour of heat input or a maximum throughput of 3,600 gallons or less of used oils per year. When combusting untreated wood, untreated seeds or pellets, or other untreated vegetative materials, the equipment must have a maximum rated capacity of 265,600 Btu or less per hour or a maximum throughput of 378,000 pounds or less per year of each fuel or any combination of fuels. Records shall be maintained on site by the owner or operator for at least two calendar years to demonstrate that fuel usage is less than the exemption thresholds. Owners or operators initiating construction, installation, reconstruction, or alteration of equipment (as defined in rule 567—20.2(455B)) on or before October 23, 2013, burning coal, used oils, untreated wood, untreated seeds or pellets, or other untreated vegetative materials that qualified for this exemption may continue to claim this exemption after October 23, 2013, without being restricted to the maximum heat input or throughput specified in this paragraph.    c.    Mobile internal combustion and jet engines, marine vessels and locomotives.    d.    Equipment used for cultivating land, harvesting crops, or raising livestock other than anaerobic lagoons. This exemption is not applicable if the equipment is used to remove substances from grain which were applied to the grain by another person. This exemption is also not applicable to equipment used by a person to manufacture commercial feed, as defined in Iowa Code section 198.3, which is normally not fed to livestock, owned by the person or another person, in a feedlot, as defined in Iowa Code section 172D.1(6), or a confinement building owned or operated by that person and located in this state.    e.    Incinerators and pyrolysis cleaning furnaces with a rated refuse burning capacity of less than 25 pounds per hour for which initiation of construction, installation, reconstruction, or alteration (as defined in rule 567—20.2(455B)) occurred on or before October 23, 2013. Pyrolysis cleaning furnace exemption is limited to those units that use only natural gas or propane. Salt bath units are not included in this exemption. Incinerators or pyrolysis cleaning furnaces for which initiation of construction, installation, reconstruction, or alteration (as defined in rule 567—20.2(455B)) occurred after October 23, 2013, shall not qualify for this exemption. After October 23, 2013, only paint clean-off ovens with a maximum rated capacity of less than 25 pounds per hour that do not combust lead-containing materials shall qualify for this exemption.    f.    Fugitive dust controls unless a control efficiency can be assigned to the equipment or control equipment.    g.    Equipment or control equipment which reduces or eliminates all emission to the atmosphere. If a source wishes to obtain credit for emission reductions, a permit must be obtained for the reduction prior to the time the reduction is made. If a construction permit has been previously issued for the equipment or control equipment, all other conditions of the construction permit remain in effect.    h.    Equipment (other than anaerobic lagoons) or control equipment which emits odors unless such equipment or control equipment also emits particulate matter, or any other regulated air contaminant (as defined in rule 567—22.100(455B)).    i.    Initiation of construction, installation, reconstruction, or alteration (modification) to equipment (as defined in rule 567—20.2(455B)) on or before October 23, 2013, which will not result in a net emissions increase (as defined in paragraph 22.5(1)“f”) of more than 1.0 lb/hr of any regulated air pollutant (as defined in rule 567—22.100(455B)). Emission reduction achieved through the installation of control equipment, for which a construction permit has not been obtained, does not establish a limit to potential emissions.Hazardous air pollutants (as defined in rule 567—22.100(455B)) are not included in this exemption except for those listed in Table 1. Further, the net emissions rate INCREASE must not equal or exceed the values listed in Table 1.Table 1PollutantTon/yearLead0.6Asbestos0.007Beryllium0.0004Vinyl Chloride1Fluorides3This exemption is ONLY applicable to vertical discharges with the exhaust stack height 10 or more feet above the highest building within 50 feet. If a construction permit has been previously issued for the equipment or control equipment, the conditions of the construction permit remain in effect. In order to use this exemption, the facility must comply with the information submission to the department as described above.The department reserves the right to require proof that the expected emissions from the source which is being exempted from the air quality construction permit requirement, in conjunction with all other emissions, will not prevent the attainment or maintenance of the ambient air quality standards specified in 567—Chapter 28. If the department finds, at any time after a change has been made pursuant to this exemption, evidence of violations of any of the department’s rules, the department may require the source to submit to the department sufficient information to determine whether enforcement action should be taken. This information may include, but is not limited to, any information that would have been submitted in an application for a construction permit for any changes made by the source under this exemption, and air quality dispersion modeling.Equipment for which initiation of construction, installation, reconstruction, or alteration (as defined in rule 567—20.2(455B)) occurred after October 23, 2013, shall not qualify for this exemption.    j.    Residential heaters, cookstoves, or fireplaces, which burn untreated wood, untreated seeds or pellets, or other untreated vegetative materials.    k.    Asbestos demolition and renovation projects subject to 40 CFR 61.145 as amended through January 16, 1991.    l.    The equipment in laboratories used exclusively for nonproduction chemical and physical analyses. Nonproduction analyses means analyses incidental to the production of a good or service and includes analyses conducted for quality assurance or quality control activities, or for the assessment of environmental impact.    m.    Storage tanks with a capacity of less than 19,812 gallons and an annual throughput of less than 200,000 gallons.    n.    Stack or vents to prevent escape of sewer gases through plumbing traps. Systems which include any industrial waste are not exempt.    o.    A nonproduction surface coating process that uses only hand-held aerosol spray cans.    p.    Brazing, soldering or welding equipment or portable cutting torches used only for nonproduction activities.    q.    Cooling and ventilating equipment: Comfort air conditioning not designed or used to remove air contaminants generated by, or released from, specific units of equipment.    r.    An internal combustion engine with a brake horsepower rating of less than 400 measured at the shaft, provided that the owner or operator meets all of the conditions in this paragraph. For the purposes of this exemption, the manufacturer’s nameplate rated capacity at full load shall be defined as the brake horsepower output at the shaft. The owner or operator of an engine that was manufactured, ordered, modified or reconstructed after March 18, 2009, may use this exemption only if the owner or operator, prior to installing, modifying or reconstructing the engine, submits to the department a completed registration, on forms provided by the department, certifying that the engine is in compliance with the following federal regulations:    (1)   New source performance standards (NSPS) for stationary compression ignition internal combustion engines (40 CFR Part 60, Subpart IIII); or    (2)   New source performance standards (NSPS) for stationary spark ignition internal combustion engines (40 CFR Part 60, Subpart JJJJ); and    (3)   National emission standards for hazardous air pollutants (NESHAP) for reciprocating internal combustion engines (40 CFR Part 63, Subpart ZZZZ).Use of this exemption does not relieve an owner or operator from any obligation to comply with NSPS or NESHAP requirements.    s.    Equipment that is not related to the production of goods or services and used exclusively for academic purposes, located at educational institutions (as defined in Iowa Code section 455B.161). The equipment covered under this exemption is limited to: lab hoods, art class equipment, wood shop equipment in classrooms, wood fired pottery kilns, and fuel-burning units with a capacity of less than one million Btu per hour fuel capacity. This exemption does not apply to incinerators.    t.    Any container, storage tank, or vessel that contains a fluid having a maximum true vapor pressure of less than 0.75 psia. “Maximum true vapor pressure” means the equilibrium partial pressure of the material considering:
  • For material stored at ambient temperature, the maximum monthly average temperature as reported by the National Weather Service, or
  • For material stored above or below the ambient temperature, the temperature equal to the highest calendar-month average of the material storage temperature.
  •     u.    Equipment for carving, cutting, routing, turning, drilling, machining, sawing, surface grinding, sanding, planing, buffing, sandblast cleaning, shot blasting, shot peening, or polishing ceramic artwork, leather, metals (other than beryllium), plastics, concrete, rubber, paper stock, and wood or wood products, where such equipment is either used for nonproduction activities or exhausted inside a building.    v.    Manually operated equipment, as defined in rule 567—22.100(455B), used for buffing, polishing, carving, cutting, drilling, machining, routing, sanding, sawing, scarfing, surface grinding, or turning.    w.    Small unit exemption.    (1)   “Small unit” means any emission unit and associated control (if applicable) that emits less than the following:
    1. 2 pounds per year of lead and lead compounds expressed as lead (40 pounds per year of lead or lead compounds for equipment for which initiation of construction, installation, reconstruction, or alteration (as defined in rule 567—20.2(455B)) occurred on or before October 23, 2013);
    2. 5 tons per year of sulfur dioxide;
    3. 5 tons per year of nitrogen oxides;
    4. 5 tons per year of volatile organic compounds;
    5. 5 tons per year of carbon monoxide;
    6. 5 tons per year of particulate matter (particulate matter as defined in 40 CFR Part 51.100(pp));
    7. 2.5 tons per year of PM 10 ;
    8. 0.52 tons per year of PM 2.5 (does not apply to equipment for which initation of construction, installation, reconstruction, or alteration (as defined in rule 567—20.2(455B)) occurred on or before October 23, 2013); or
    9. 5 tons per year of hazardous air pollutants (as defined in rule 567—22.100(455B)).
    For the purposes of this exemption, “emission unit” means any part or activity of a stationary source that emits or has the potential to emit any pollutant subject to regulation under the Act. This exemption applies to existing and new or modified “small units.”An emission unit that emits hazardous air pollutants (as defined in rule 567—22.100(455B)) is not eligible for this exemption if the emission unit is required to be reviewed for compliance with 567—subrule 23.1(3), emission standards for hazardous air pollutants (40 CFR 61, NESHAP), or 567—subrule 23.1(4), emission standards for hazardous air pollutants for source categories (40 CFR 63, NESHAP).An emission unit that emits air pollutants that are not regulated air pollutants as defined in rule 567—22.100(455B) shall not be eligible to use this exemption.
        (2)   Permit requested. If requested in writing by the owner or operator of a small unit, the director may issue a construction permit for the emission point associated with that emission unit.    (3)   An owner or operator that utilizes the small unit exemption must maintain on site an “exemption justification document.” The exemption justification document must document conformance and compliance with the emission rate limits contained in the definition of “small unit” for the particular emission unit or group of similar emission units obtaining the exemption. Controls which may be part of the exemption justification document include, but are not limited to, the following: emission control devices, such as cyclones, filters, or baghouses; restricted hours of operation or fuel; and raw material or solvent substitution. The exemption justification document for an emission unit or group of similar emission units must be made available for review during normal business hours and for state or EPA on-site inspections, and shall be provided to the director or the director’s representative upon request. If an exemption justification document does not exist, the applicability of the small unit exemption is voided for that particular emission unit or group of similar emission units. The controls described in the exemption justification document establish a limit on the potential emissions. An exemption justification document shall include the following for each applicable emission unit or group of similar emission units:
    1. A narrative description of how the emissions from the emission unit or group of similar emission units were determined and maintained at or below the annual small unit exemption levels.
    2. If air pollution control equipment is used, a description of the air pollution control equipment used on the emission unit or group of similar emission units and a statement that the emission unit or group of similar emission units will not be operated without the pollution control equipment operating.
    3. If air pollution control equipment is used, applicant shall maintain a copy of any report of manufacturer’s testing results of any emissions test, if available. The department may require a test if it believes that a test is necessary for the exemption claim.
    4. A description of all production limits required for the emission unit or group of similar emission units to comply with the exemption levels.
    5. Detailed calculations of emissions reflecting the use of any air pollution control devices or production or throughput limitations, or both, for applicable emission unit or group of similar emission units.
    6. Records of actual operation that demonstrate that the annual emissions from the emission unit or group of similar emission units were maintained below the exemption levels.
    7. Facilities designated as major sources with respect to rules 567—22.4(455B) and 567—22.101(455B), or subject to any applicable federal requirements, shall retain all records demonstrating compliance with the exemption justification document for five years. The record retention requirements supersede any retention conditions of an individual exemption.
    8. A certification from the responsible official that the emission unit or group of similar emission units have complied with the exemption levels specified in 22.1(2)“w”(1).
        (4)   Requirement to apply for a construction permit. An owner or operator of a small unit will be required to obtain a construction permit or take the unit out of service if the emission unit exceeds the small unit emission levels.
    1. If, during an inspection or other investigation of a facility, the department believes that the emission unit exceeds the emission levels that define a “small unit,” then the department will submit calculations and detailed information in a letter to the owner or operator. The owner or operator shall have 60 days to respond with detailed calculations and information to substantiate a claim that the small unit does not exceed the emission levels that define a small unit.
    2. If the owner or operator is unable to substantiate a claim to the satisfaction of the department, then the owner or operator that has been using the small unit exemption must cease operation of that small unit or apply for a construction permit for that unit within 90 days after receiving a letter of notice from the department. The emission unit and control equipment may continue operation during this period and the associated initial application review period.
    3. If the notification of nonqualification as a small unit is made by the department following the process described above, the owner or operator will be deemed to have constructed an emission unit without the required permit and may be subject to applicable penalties.
        (5)   Required notice for construction or modification of a “substantial small unit.” The owner or operator shall notify the department in writing at least 10 days prior to commencing construction of any new or modified “substantial small unit” as defined in 22.1(2)“w”(6). The owner or operator shall notify the department within 30 days after determining an existing small unit meets the criteria of the “substantial small unit” as defined in 22.1(2)“w”(6). Notification shall include the name of the business, the location where the unit will be installed, and information describing the unit and quantifying its emissions. The owner or operator shall notify the department within 90 days of the end of the calendar year for which the aggregate emissions from substantial small units at the facility have reached any of the cumulative notice thresholds listed below.    (6)   For the purposes of this paragraph, “substantial small unit” means a small unit which emits more than the following amounts, as documented in the exemption justification document:
    1. 2 pounds per year of lead and lead compounds expressed as lead (30 pounds per year of lead or lead compounds for equipment for which initiation of construction, installation, reconstruction, or alteration (as defined in rule 567—20.2(455B)) occurred on or before October 23, 2013);
    2. 3.75 tons per year of sulfur dioxide;
    3. 3.75 tons per year of nitrogen oxides;
    4. 3.75 tons per year of volatile organic compounds;
    5. 3.75 tons per year of carbon monoxide;
    6. 3.75 tons per year of particulate matter (particulate matter as defined in 40 CFR Part 51.100(pp));
    7. 1.875 tons per year of PM 10 ;
    8. 0.4 tons per year of PM 2.5 (does not apply to equipment for which initiation of construction, installation, reconstruction, or alteration (as defined in rule 567—20.2(455B)) occurred on or before October 23, 2013); or
    9. 3.75 tons per year of any hazardous air pollutant or 3.75 tons per year of any combination of hazardous air pollutants.
    An emission unit is a “substantial small unit” only for those substances for which annual emissions exceed the above-indicated amounts.
        (7)   Required notice that a cumulative notice threshold has been reached. Once a “cumulative notice threshold,” as defined in 22.1(2)“w”(8), has been reached for any of the listed pollutants, the owner or operator at the facility must apply for air construction permits for all substantial small units for which the cumulative notice threshold for the pollutant(s) in question has been reached. The owner or operator shall have 90 days from the date it determines that the cumulative notice threshold has been reached in which to apply for construction permit(s). The owner or operator shall submit a letter to the department, within 5 working days of making this determination, establishing the date the owner or operator determined that the cumulative notice threshold had been reached.    (8)   “Cumulative notice threshold” means the total combined emissions from all substantial small units using the small unit exemption which emit at the facility the following amounts, as documented in the exemption justification document:
    1. 0.6 tons per year of lead and lead compounds expressed as lead;
    2. 40 tons per year of sulfur dioxide;
    3. 40 tons per year of nitrogen oxides;
    4. 40 tons per year of volatile organic compounds;
    5. 100 tons per year of carbon monoxide;
    6. 25 tons per year of particulate matter (particulate matter as defined in 40 CFR Part 51.100(pp));
    7. 15 tons per year of PM 10 ;
    8. 10 tons per year of PM 2.5 (does not apply to equipment for which initiation of construction, installation, reconstruction, or alteration (as defined in rule 567—20.2(455B)) occurred on or before October 23, 2013); or
    9. 10 tons per year of any hazardous air pollutant or 25 tons per year of any combination of hazardous air pollutants.
        x.    The following equipment, processes, and activities:    (1)   Cafeterias, kitchens, and other facilities used for preparing food or beverages primarily for consumption at the source.    (2)   Consumer use of office equipment and products, not including printers or businesses primarily involved in photographic reproduction.    (3)   Janitorial services and consumer use of janitorial products.    (4)   Internal combustion engines used for lawn care, landscaping, and groundskeeping purposes.    (5)   Laundry activities located at a stationary source that uses washers and dryers to clean, with water solutions of bleach or detergents, or to dry clothing, bedding, and other fabric items used on site. This exemption does not include laundry activities that use dry cleaning equipment or steam boilers.    (6)   Bathroom vent emissions, including toilet vent emissions.    (7)   Blacksmith forges.    (8)   Plant maintenance and upkeep activities and repair or maintenance shop activities (e.g., groundskeeping, general repairs, cleaning, painting, welding, plumbing, retarring roofs, installing insulation, and paving parking lots), provided that these activities are not conducted as part of manufacturing process, are not related to the source’s primary business activity, and do not otherwise trigger a permit modification. Cleaning and painting activities qualify if they are not subject to control requirements for volatile organic compounds or hazardous air pollutants as defined in rule 567—22.100(455B).    (9)   Air compressors and vacuum, pumps, including hand tools.    (10)   Batteries and battery charging stations, except at battery manufacturing plants.    (11)   Equipment used to store, mix, pump, handle or package soaps, detergents, surfactants, waxes, glycerin, vegetable oils, greases, animal fats, sweetener, corn syrup, and aqueous salt or caustic solutions, provided that appropriate lids and covers are utilized and that no organic solvent has been mixed with such materials.    (12)   Equipment used exclusively to slaughter animals, but not including other equipment at slaughterhouses, such as rendering cookers, boilers, heating plants, incinerators, and electrical power generating equipment.    (13)   Vents from continuous emissions monitors and other analyzers.    (14)   Natural gas pressure regulator vents, excluding venting at oil and gas production facilities.    (15)   Equipment used by surface coating operations that apply the coating by brush, roller, or dipping, except equipment that emits volatile organic compounds or hazardous air pollutants as defined in rule 567—22.100(455B).    (16)   Hydraulic and hydrostatic testing equipment.    (17)   Environmental chambers not using gases which are hazardous air pollutants as defined in rule 567—22.100(455B).    (18)   Shock chambers, humidity chambers, and solar simulators.    (19)   Fugitive dust emissions related to movement of passenger vehicles on unpaved road surfaces, provided that the emissions are not counted for applicability purposes and that any fugitive dust control plan or its equivalent is submitted as required by the department.    (20)   Process water filtration systems and demineralizers, demineralized water tanks, and demineralizer vents.    (21)   Boiler water treatment operations, not including cooling towers or lime silos.    (22)   Oxygen scavenging (deaeration) of water.    (23)   Fire suppression systems.    (24)   Emergency road flares.    (25)   Steam vents, safety relief valves, and steam leaks.    (26)   Steam sterilizers.    (27)   Application of hot melt adhesives from closed-pot systems using polyolefin compounds, polyamides, acrylics, ethylene vinyl acetate and urethane material when stored and applied at the manufacturer’s recommended temperatures. Equipment used to apply hot melt adhesives shall have a safety device that automatically shuts down the equipment if the hot melt temperature exceeds the manufacturer’s recommended application temperature.    y.    Direct-fired equipment burning natural gas, propane, or liquefied propane with a capacity of less than 10 million Btu per hour input, and direct-fired equipment burning fuel oil with a capacity of less than 1 million Btu per hour input, with emissions that are attributable only to the products of combustion. Emissions other than those attributable to the products of combustion shall be accounted for in an enforceable permit condition or shall otherwise be exempt under this subrule.    z.    Closed refrigeration systems, including storage tanks used in refrigeration systems, but excluding any combustion equipment associated with such systems.    aa.    Pretreatment application processes that use aqueous-based chemistries designed to clean a substrate, provided that the chemical concentrate contains no more than 5 percent organic solvents by weight. This exemption includes pretreatment processes that use aqueous-based cleaners, cleaner-phosphatizers, and phosphate conversion coating chemistries.    bb.    Indoor-vented powder coating operations with filters or powder recovery systems.    cc.    Electric curing ovens or curing ovens that run on natural gas or propane with a maximum heat input of less than 10 million Btu per hour and that are used for powder coating operations, provided that the total cured powder usage is less than 75 tons of powder per year at the stationary source. Records shall be maintained on site by the owner or operator for a period of at least two calendar years to demonstrate that cured powder usage is less than the exemption threshold.    dd.    Each production painting, adhesive or coating unit using an application method other than a spray system and associated cleaning operations that use 1,000 gallons or less of coating and solvents annually, unless the production painting, adhesive or coating unit and associated cleaning operations are subject to work practice, process limits, emissions limits, stack testing, record-keeping or reporting requirements under 567—subrule 23.1(2), 567—subrule 23.1(3), or 567—subrule 23.1(4). Records shall be maintained on site by the owner or operator for a period of at least two calendar years to demonstrate that paint, adhesive, or solvent usage is at or below the exemption threshold.    ee.    Any production surface coating activity that uses only nonrefillable hand-held aerosol cans, where the total volatile organic compound emissions from all these activities at a stationary source do not exceed 5.0 tons per year.    ff.    Production welding.    (1)   Consumable electrode.
    1. Welding operations for which initiation of construction, installation, reconstruction, or alteration (as defined in rule 567—20.2(455B)) occurred on or before October 23, 2013, using a consumable electrode, provided that the consumable electrode used falls within American Welding Society specification A5.18/A5.18M for Gas Metal Arc Welding (GMAW), A5.1 or A5.5 for Shielded Metal Arc Welding (SMAW), and A5.20 for Flux Core Arc Welding (FCAW), and provided that the quantity of all electrodes used at the stationary source of the acceptable specifications is below 200,000 pounds per year for GMAW and 28,000 pounds per year for SMAW or FCAW. Records that identify the type and annual amount of welding electrode used shall be maintained on site by the owner or operator for a period of at least two calendar years.For stationary sources where electrode usage exceeds these levels, the welding activity at the stationary source may be exempted if the amount of electrode used (Y) is less than:Y = the greater of 1380x - 19,200 or 200,000 for GMAW, orY = the greater of 187x - 2,600 or 28,000 for SMAW or FCAWWhere “x” is the minimum distance to the property line in feet and “Y” is the annual electrode usage in pounds per year.If the stationary source has welding processes that fit into both of the specified exemptions, the most stringent limits must be applied.
    2. Welding operations for which initiation of construction, installation, reconstruction, or alteration (as defined in rule 567—20.2(455B)) occurred after October 23, 2013, using a consumable electrode, provided that the consumable electrode used falls within American Welding Society specification A5.18/A5.18M for Gas Metal Arc Welding (GMAW), A5.1 or A5.5 for Shielded Metal Arc Welding (SMAW), and A5.20 for Flux Core Arc Welding (FCAW), and provided that the quantity of all electrodes used at the stationary source of the acceptable specifications is below 1,60012,500 pounds per year for GMAW and 12,5001,600 pounds per year for SMAW or FCAW. Records that identify the type and annual amount of welding electrode used shall be maintained on site by the owner or operator for a period of at least two calendar years.For stationary sources where electrode usage exceeds these levels, the welding activity at the stationary source may be exempted if the amount of electrode used (Y) is less than:Y = the greater of 84x - 1,200 or 1,60012,500 for GMAW, orY = the greater of 11x - 160 or 12,5001,600 for SMAW or FCAWWhere “x” is the minimum distance to the property line in feet and “Y” is the annual electrode usage in pounds per year.If the stationary source has welding processes that fit into both of the specified exemptions, the most stringent limits must be applied.
        (2)   Resistance welding, submerged arc welding, or arc welding that does not use a consumable electrode, provided that the base metals do not include stainless steel, alloys of lead, alloys of arsenic, or alloys of beryllium and provided that the base metals are uncoated, excluding manufacturing process lubricants.
        gg.    Electric hand soldering, wave soldering, and electric solder paste reflow ovens for which initiation of construction, installation, reconstruction, or alteration (as defined in rule 567—20.2(455B)) occurred on or before October 23, 2013. Electric hand soldering, wave soldering, and electric solder paste reflow ovens for which initiation of construction, installation, reconstruction, or alteration (as defined in rule 567—20.2(455B)) occurred after October 23, 2013, shall be limited to 37,000 pounds or less per year of lead-containing solder. Records shall be maintained on site by the owner or operator for at least two calendar years to demonstrate that use of lead-containing solder is less than the exemption thresholds.    hh.    Pressurized piping and storage systems for natural gas, propane, liquefied petroleum gas (LPG), and refrigerants, where emissions could only result from an upset condition.    ii.    Emissions from the storage and mixing of paints and solvents associated with the painting operations, provided that the emissions from the storage and mixing are accounted for in an enforceable permit condition or are otherwise exempt.    jj.    Product labeling using laser and ink-jet printers with target distances less than or equal to six inches and an annual material throughput of less than 1,000 gallons per year as calculated on a stationary sourcewide basis.    kk.    Equipment related to research and development activities at a stationary source, provided that:    (1)   Actual emissions from all research and development activities at the stationary source based on a 12-month rolling total are less than the following levels:2 pounds per year of lead and lead compounds expressed as lead (40 pounds per year for research and development activities that commenced on or before October 23, 2013);5 tons per year of sulfur dioxide;5 tons per year of nitrogen oxides;5 tons per year of volatile organic compounds;5 tons per year of carbon monoxide;5 tons per year of particulate matter (particulate matter as defined in 40 CFR Part 51.100(pp) as amended through November 29, 2004);2.5 tons per year of PM 10 ;0.52 tons per year of PM 2.5 (does not apply to research and development activities that commenced on or before October 23, 2013); and5 tons per year of hazardous pollutants (as defined in rule 567—22.100(455B)); and    (2)   The owner or operator maintains records of actual operations demonstrating that the annual emissions from all research and development activities conducted under this exemption are below the levels listed in subparagraph (1) above. These records shall:
    1. Include a list of equipment that is included under the exemption;
    2. Include records of actual operation and detailed calculations of actual annual emissions, reflecting the use of any control equipment and demonstrating that the emissions are below the levels specified in the exemption;
    3. Include, if air pollution equipment is used in the calculation of emissions, a copy of any report of manufacturer’s testing, if available. The department may require a test if it believes that a test is necessary for the exemption claim; and
    4. Be maintained on site for a minimum of two years, be made available for review during normal business hours and for state and EPA on-site inspections, and be provided to the director or the director’s designee upon request. Facilities designated as major sources pursuant to rules 567—22.4(455B) and 567—22.101(455B), or subject to any applicable federal requirements, shall retain all records demonstrating compliance with this exemption for five years.
        (3)   An owner or operator using this exemption obtains a construction permit or ceases operation of equipment if operation of the equipment would cause the emission levels listed in this exemption to be exceeded.For the purposes of this exemption, “research and development activities” shall be defined as activities:
    1. That are operated under the close supervision of technically trained personnel; and
    2. That are conducted for the primary purpose of theoretical research or research and development into new or improved processes and products; and
    3. That do not manufacture more than de minimis amounts of commercial products; and
    4. That do not contribute to the manufacture of commercial products by collocated sources in more than a de minimis manner.
        ll.    A regional collection center (RCC), as defined in 567—Chapter 211, involved in the processing of permitted hazardous materials from households and conditionally exempt small quantity generators (CESQG), not to exceed 1,200,000 pounds of VOC containing material in a 12-month rolling period. Latex paint drying may not exceed 120,000 pounds per year on a 12-month rolling total. Other nonprocessing emission units (e.g., standby generators and waste oil heaters) shall not be eligible to use this exemption.    mm.    Cold solvent cleaning machines that are not in-line cleaning machines, where the maximum vapor pressure of the solvents used shall not exceed 0.7 kPa (5 mmHg or 0.1 psi) at 20oC (68oF). The machine must be equipped with a tightly fitted cover or lid that shall be closed at all times except during parts entry and removal. This exemption cannot be used for cold solvent cleaning machines that use solvent containing methylene chloride (CAS # 75-09-2), perchloroethylene (CAS # 127-18-4), trichloroethylene (CAS # 79-01-6), 1,1,1-trichloroethane (CAS # 71-55-6), carbon tetrachloride (CAS # 56-23-5) or chloroform (CAS # 67-66-3), or any combination of these halogenated HAP solvents in a total concentration greater than 5 percent by weight.    nn.    Emissions from mobile over-the-road trucks, and mobile agricultural and construction internal combustion engines that are operated only for repair or maintenance purposes at equipment repair shops or equipment dealerships, and only when the repair shops or equipment dealerships are not major sources as defined in rule 567—22.100(455B).    oo.    A non-road diesel fueled engine, as defined in 40 CFR 1068.30 and as amended through October 8, 2008April 30, 2010, with a brake horsepower rating of less than 1,100 at full load measured at the shaft, used to conduct periodic testing and maintenance on natural gas pipelines. For the purposes of this exemption, the manufacturer’s nameplate rating shall be defined as the brake horsepower output at the shaft at full load.    (1)   To qualify for the exemption, the engine must:
    1. Be used for periodic testing and maintenance on natural gas pipelines outside the compressor station, which shall not exceed 330 hours in any 12-month consecutive period at a single location; or
    2. Be used for periodic testing and maintenance on natural gas pipelines within the compressor station, which shall not exceed 330 hours in any 12-month consecutive period.
        (2)   The owner or operator shall maintain a monthly record of the number of hours the engine operated and a record of the rolling 12-month total of the number of hours the engine operated for each location outside the compressor station and within the compressor station. These records shall be maintained for two years. Records shall be made available to the department upon request.    (3)   This exemption shall not apply to the replacement or substitution of engines for backup power generation at a pipeline compressor station.

        ITEM 8.    Amend subrule 22.1(3), introductory paragraph, as follows:    22.1(3) Construction permits.  The owner or operator of a new or modified stationary source shall apply for a construction permit. Two copiesOne copy of a construction permit application for a new or modified stationary source shall be presented or mailed to Department of Natural Resources, Air Quality Bureau, 7900 Hickman Road, Suite 1, Windsor Heights, Iowa 50324. Alternatively, the owner or operator may apply for a construction permit for a new or modified stationary source through the electronic submittal format specified by the department. The owner or operator of any new or modified industrial anaerobic lagoon or a new or modified anaerobic lagoon for an animal feeding operation other than a small operation as defined in rule 567—65.1(455B) shall apply for a construction permit. Two copies of a construction permit application for an anaerobic lagoon shall be presented or mailed to Department of Natural Resources, Water Quality Bureau, Henry A. Wallace Building, 502 East Ninth Street, Des Moines, Iowa 50319.An owner or operator applying for a permit as required pursuant to rule 567—31.3(455B) (nonattainment new source review) or 567—33.3(455B) (prevention of significant deterioration (PSD)) shall present or mail to the department one hard copy of a construction permit application to the address specified above and, upon request from the department, shall also submit one electronic copy and one additional hard copy of the application. The owner or operator of any new or modified industrial anaerobic lagoon shall apply for a construction permit as specified in this subrule and as provided in 567—Chapter 22. The owner or operator of a new or modified anaerobic lagoon for an animal feeding operation shall apply for a construction permit as provided in 567—Chapter 65.

        ITEM 9.    Amend paragraph 22.1(3)"b", introductory paragraph, as follows:    b.    Construction permit applications.Each application for a construction permit shall be submitted to the department on the form “Air Construction Permit Application.”permit application forms available on the department’s Web site. Final plans and specifications for the proposed equipment or related control equipment shall be submitted with the application for a permit and shall be prepared by or under the direct supervision of a professional engineer licensed in the state of Iowa in conformance with Iowa Code section 542B.1, or consistent with the provisions of Iowa Code section 542B.26 for any full-time employee of any corporation whilethe employee is doing work for that corporation. The application for a permit to construct shall include the following information:

        ITEM 10.    Amend rule 567—22.100(455B), definitions of “Designated representative,” “EPA reference method,” “Existing hazardous air pollutant source,” “High-risk pollutant” and “Major source,” as follows:        "Designated representative" means a responsible natural person authorized by the owner(s) or operator(s) of an affected source and of all affected units at the source, as evidenced by a certificate of representation submitted in accordance with Subpart B of 40 CFR Part 72 as amended to October 24, 1997through April 28, 2006, to represent and legally bind each owner and operator, as a matter of federal law, in matters pertaining to the acid rain program. Whenever the term “responsible official” is used in 567—Chapter 22, it shall be deemed to refer to the designated representative with regard to all matters under the acid rain program.        "EPA reference method" means the following methods used for performance tests and continuous monitoring systems:
    1. Performance test (stack test). A stack test shall be conducted according to EPA reference methods specified in 40 CFR 51, Appendix M (as amended through December 21, 2010April 2, 2014); 40 CFR 60, Appendix A (as amended through September 9, 2010February 27, 2014); 40 CFR 61, Appendix B (as amended through October 17, 2000February 27, 2014); and 40 CFR 63, Appendix A (as amended through August 20, 2010February 27, 2014).
    2. Continuous monitoring systems. Minimum performance specifications and quality assurance procedures for performance evaluations of continuous monitoring systems are as specified in 40 CFR 60, Appendix B (as amended through September 9, 2010February 27, 2014); 40 CFR 60, Appendix F (as amended through September 9, 2010February 27, 2014); 40 CFR 75, Appendix A (as amended through March 28, 2011January 18, 2012); 40 CFR 75, Appendix B (as amended through March 28, 2011); and 40 CFR 75, Appendix F (as amended through March 28, 2011January 18, 2012).
            "Existing hazardous air pollutant source" means any source as defined in 40 CFR 61 (as amended through July 20, 2004)as adopted by reference in 567—subrule 23.1(3) and 40 CFR 63.72 (as amended through December 29, 1992)as adopted by reference in 567—subrule 23.1(4) with respect to Section 112(i)(5) of the Act, the construction or reconstruction of which commenced prior to proposal of an applicable Section 112(d) standard.        "High-risk pollutant" means one of the following hazardous air pollutants listed in Table 1 in 40 CFR 63.74 as amended through October 21, 1994as adopted by reference in 567—subrule 23.1(4).cas # chemical name weighting factor53963 2-Acetylaminofluorene 100107028 Acrolein 10079061 Acrylamide 10107131 Acrylonitrile 100 Arsenic compounds 1001332214 Asbestos 10071432 Benzene 1092875 Benzidine 10000 Beryllium compounds 10542881 Bis(chloromethyl) ether 1000106990 1,3-Butadiene 100 Cadmium compounds 1057749 Chlordane 100532274 2-Chloroacetophenone 1000 Chromium compounds 100107302 Chloromethyl methyl ether 100 Coke oven emissions 10334883 Diazomethane 10132649 Dibenzofuran 1096128 1,2-Dibromo-3-chloropropane 10111444 Dichloroethyl ether(Bis(2-chloroethyl) ether)1079447 Dimethylcarbamoyl chloride 100122667 1,2-Diphenylhydrazine 10106934 Ethylene dibromide 10151564 Ethylenimine (Aziridine) 10075218 Ethylene oxide 1076448 Heptachlor 100118741 Hexachlorobenzene 10077474 Hexachlorocyclopentadiene 100302012 Hydrazine 1000 Manganese compounds 100 Mercury compounds 10060344 Methyl hydrazine 10624839 Methyl isocyanate 100 Nickel compounds 1062759 N-Nitrosodimethylamine 100684935 N-Nitroso-N-methylurea 100056382 Parathion 1075445 Phosgene 107803512 Phosphine 107723140 Phosphorus 1075558 1,2-Propylenimine 1001746016 2,3,7,8-Tetrachlorodibenzo-p-dioxin 100,0008001352 Toxaphene (chlorinated camphene) 10075014 Vinyl chloride 10        "Major source" means any stationary source (or any group of stationary sources located on one or more contiguous or adjacent properties and under common control of the same person or of persons under common control) belonging to a single major industrial grouping that is any of the following:
    1. A major stationary source of air pollutants, as defined in Section 302 of the Act, that directly emits or has the potential to emit 100 tons per year (tpy) or more of any air pollutant subject to regulation (including any major source of fugitive emissions of any such pollutant). The fugitive emissions of a stationary source shall not be considered in determining whether it is a major stationary source for the purposes of Section 302(j) of the Act, unless the source belongs to one of the stationary source categories listed in this chapter.
    2. A major source of hazardous air pollutants according to Section 112 of the Act as follows:For pollutants other than radionuclides, any stationary source or group of stationary sources located within a contiguous area and under common control that emits or has the potential to emit, in the aggregate, 10 tpy or more of any hazardous air pollutant which has been listed pursuant to Section 112(b) of the Act and these rules or 25 tpy or more of any combination of such hazardous air pollutants. Notwithstanding the previous sentence, emissions from any oil or gas exploration or production well (with its associated equipment) and emission from any pipeline compressor or pump station shall not be aggregated with emissions from other similar units, whether or not such units are in a contiguous area or under common control, to determine whether such units or stations are major sources.For Title V purposes, all fugitive emissions of hazardous air pollutants are to be considered in determining whether a stationary source is a major source.For radionuclides, “major source” shall have the meaning specified by the administrator by rule.
    3. A major stationary source as defined in Part D of Title I of the Act, including:For ozone nonattainment areas, sources with the potential to emit 100 tpy or more of volatile organic compounds or oxides of nitrogen in areas classifiedor treated as classified as “marginal” or “moderate,” 50 tpy or more in areas classifiedor treated as classified as “serious,” 25 tpy or more in areas classifiedor treated as classified as “severe” and 10 tpy or more in areas classifiedor treated as classified as “extreme”; except that the references in this paragraph to 100, 50, 25, and 10 tpy of nitrogen oxides shall not apply with respect to any source for which the administrator has made a finding, under Section 182(f)(1) or (2) of the Act, that requirements under Section 182(f) of the Act do not apply;For ozone transport regions established pursuant to Section 184 of the Act, sources with potential to emit 50 tpy or more of volatile organic compounds;For carbon monoxide nonattainment areas (1) that are classifiedor treated as classified as “serious” and (2) in which stationary sources contribute significantly to carbon monoxide levels, and sources with the potential to emit 50 tpy or more of carbon monoxide;For particulate matter (PM-10PM10), nonattainment areas classifiedor treated as classified as “serious,” sources with the potential to emit 70 tpy or more of PM-10PM10.For the purposes of defining “major source,” a stationary source or group of stationary sources shall be considered part of a single industrial grouping if all of the pollutant emitting activities at such source or group of sources on contiguous or adjacent properties belong to the same major group (i.e., all have the same two-digit code) as described in the Standard Industrial Classification Manual, 1987.

        ITEM 11.    Amend rule 567—22.100(455B), definition of “Subject to regulation,”numbered paragraph “2,” as follows:
    1. The term “tpy CO 2 equivalent emissions (CO 2 e)” shall represent an amount of GHGs emitted and shall be computed by multiplying the mass amount of emissions (tpy) for each of the six greenhouse gases in the pollutant GHGs by the associated global warming potential of the gas published at 40 CFR Part 98, Subpart A, Table A-1, “Global Warming Potentials,” (as amended on October 30, 2009through December 24, 2014) and summing the resultant value for each to compute a tpy CO 2 e.

        ITEM 12.    Amend subrule 22.102(3) as follows:    22.102(3)   The following source categories are exempt from the obligation to obtain a Title V permit:    a.    All sources and source categories that would be required to obtain a Title V permit solely because they are subject to 40 CFR 60, Subpart AAA, Standards of Performance for New Residential Wood Heaters, as amended through December 14, 2000March 16, 2015;    b.    All sources and source categories that would be required to obtain a Title V permit solely because they are subject to 40 CFR 61, Subpart M, National Emission Standard for Hazardous Air Pollutants for Asbestos, Section 61.145, Standard for Demolition and Renovation, as amended through July 20, 2004as adopted by reference in 567—subrule 23.1(3);    c.    All sources and source categories that would be required to obtain a Title V permit solely because they are subject to any of the following subparts from 40 CFR 63:    (1)   Subpart M, National Perchloroethylene Air Emission Standards for Dry Cleaning Facilities, as amended through December 19, 2005as adopted by reference in 567—subrule 23.1(4).    (2)   Subpart N, National Emission Standards for Chromium Emissions from Hard and Decorative Chromium Electroplating and Chromium Anodizing Tanks, as amended through December 19, 2005as adopted by reference in 567—subrule 23.1(4).    (3)   Subpart O, Ethylene Oxide Emissions Standards for Sterilization Facilities, as amended through December 19, 2005as adopted by reference in 567—subrule 23.1(4).    (4)   Subpart T, National Emission Standards for Halogenated Solvent Cleaning, as amended through December 19, 2005as adopted by reference in 567—subrule 23.1(4).    (5)   Subpart RRR, National Emission Standards for Hazardous Air Pollutants for Secondary Aluminum Production, as amended through December 19, 2005as adopted by reference in 567—subrule 23.1(4).    (6)   Subpart VVV, National Emission Standards for Hazardous Air Pollutants: Publicly Owned Treatment Works, as amended through June 23, 2003as adopted by reference in 567—subrule 23.1(4).

        ITEM 13.    Amend subrule 22.103(1), introductory paragraph, as follows:    22.103(1) Insignificant activities excluded from Title V operating permit application.  In accordance with 40 CFR 70.5 (as amended through July 21, 1992October 6, 2009), these activities need not be included in the Title V permit application.

        ITEM 14.    Amend paragraph 22.103(2)"b" as follows:    b.    The following are insignificant activities:    (1)   Fuel-burning equipment for indirect heating and reheating furnacesor indirect cooling units using natural or liquefied petroleum gas with a capacity of less than 10 million Btu per hour input per combustion unit.    (2)   Fuel-burning equipment for indirect heatingor indirect cooling for which initiation of construction, installation, reconstruction, or alteration (as defined in rule 567—20.2(455B)) occurred on or before October 23, 2013, with a capacity of less than 1 million Btu per hour input per combustion unit when burning coal, untreated wood, or fuel oil.Fuel-burning equipment for indirect heatingor indirect cooling for which initiation of construction, installation, reconstruction, or alteration (as defined in rule 567—20.2(455B)) occurred after October 23, 2013, with a capacity of less than 1 million Btu per hour input per combustion unit when burning untreated wood, untreated seeds or pellets, other untreated vegetative materials, or fuel oil provided that the equipment and the fuel meet the condition specified in this subparagraph (22.103(2)“b”(2)). Used oils meeting the specification from 40 CFR 279.11 as amended through May 3, 1993July 14, 2006, are acceptable fuels. When combusting used oils, the equipment must have a maximum rated capacity of 50,000 Btu or less per hour of heat input or a maximum throughput of 3600 gallons or less of used oils per year. When combusting untreated wood, untreated seeds or pellets, or other untreated vegetative materials, the equipment must have a maximum rated capacity of 265,600 Btu or less per hour or a maximum throughput of 378,000 pounds or less per year of each fuel or any combination of fuels.    (3)   Incinerators with a rated refuse burning capacity of less than 25 pounds per hour for which initiation of construction, installation, reconstruction, or alteration (as defined in rule 567—20.2(455B)) occurred on or before October 23, 2013. Incinerators for which initiation of construction, installation, reconstruction, or alteration (as defined in rule 567—20.2(455B)) occurred after October 23, 2013, shall not qualify as an insignificant activity. After October 23, 2013, only paint clean-off ovens with a maximum rated capacity of less than 25 pounds per hour that do not combust lead-containing materials shall qualify as an insignificant activity.    (4)   Gasoline, diesel fuel, or oil storage tanks with a capacity of 1,000 gallons or less and an annual throughput of less than 40,000 gallons.    (5)   A storage tank which contains no volatile organic compounds above a vapor pressure of 0.75 pounds per square inch at the normal operating temperature of the tank when other emissions from the tank do not exceed the levels in paragraph 22.103(2)“a.”    (6)   Internal combustion engines that are used for emergency response purposes with a brake horsepower rating of less than 400 measured at the shaft. The manufacturer’s nameplate rating at full load shall be defined as the brake horsepower output at the shaft.

        ITEM 15.    Amend rule 567—22.105(455B) as follows:

    567—22.105(455B) Title V permit applications.      22.105(1) Duty to apply.  For each source required to obtain a Title V permit, the owner or operator or designated representative, where applicable, shall present or mail a complete and timely permit application in accordance with this rule to the following locations: Iowa Department of Natural Resources, Air Quality Bureau, 7900 Hickman Road, Suite 1, Windsor Heights, Iowa 50324 (two copies); and U.S. EPA Region VII, 901 North 5th Street, Kansas City, Kansas 6610111201 Renner Boulevard, Lenexa, Kansas 66219 (one copy); and, if applicable, the local permitting authority, which is either Linn County Public Health Department, Air Quality Division, 501 13th Street NW, Cedar Rapids, Iowa 52405 (one copy); or Polk County Public Works, Air Quality Division, 5885 NE 14th Street, Des Moines, Iowa 50313 (one copy). Alternatively, an owner or operator may submit a complete and timely application through the electronic submittal format specified by the department. An owner or operator of a source required to obtain a Title V permit pursuant to subrule 22.101(1) shall submit all required fees as required in 567—Chapter 30.    a.    Timely application.Each owner or operator applying for a Title V permit shall submit an application as follows:    (1)   Initial application for an existing source. The owner or operator of a stationary source that was existing on or before April 20, 1994, shall make the first time submittals of a Title V permit application to the department by November 15, 1994. However, the owner or operator may choose to defer submittal of Part 2 of the permit application until December 31, 1995. The department will mail notice of the deadline for Part 2 of the permit application to all applicants who have filed Part 1 of the application by October 17, 1995.    (2)   Initial application for a new source. The owner or operator of a stationary source that commenced construction or reconstruction after April 20, 1994, or that otherwise became subject to the requirement to obtain a Title V permit after April 20, 1994, shall submit an application to the department within 12 months of becoming subject to the Title V permit requirements.    (3)   Application related to 112(g), PSD or nonattainment. The owner or operator of a stationary source that is subject to Section 112(g) of the Act, that is subject to rule 567—22.4(455B) or 567—33.3(455B) (prevention of significant deterioration (PSD)), or that is subject to rule 567—22.5(455B) or 567—31.3(455B) (nonattainment area permitting) shall submit an application to the department within 12 months of commencing operation. In cases in which an existing Title V permit would prohibit such construction or change in operation, the owner or operator must obtain a Title V permit revision before commencing operation.    (4)   Renewal application. The owner or operator of a stationary source with a Title V permit shall submit an application to the department for a permit renewal at least 6 months prior to, but not more than 18 months prior to, the date of permit expiration.    (5)   Changes allowed without a permit revision (off-permit revision). The owner or operator of a stationary source with a Title V permit who is proposing a change that is allowed without a Title V permit revision (an off-permit revision) as specified in rule 567—22.110(455B) shall submit to the department a written notification as specified in rule 567—22.110(455B) at least 30 days prior to the proposed change.    (6)   Application for an administrative permit amendment. Prior to implementing a change that satisfies the requirements for an administrative permit amendment as set forth in rule 567—22.111(455B), the owner or operator shall submit to the department an application for an administrative amendment as specified in rule 567—22.111(455B).    (7)   Application for a minor permit modification. Prior to implementing a change that satisfies the requirements for a minor permit modification as set forth in rule 567—22.112(455B), the owner or operator shall submit to the department an application for a minor permit modification as specified in rule 567—22.112(455B).    (8)   Application for a significant permit modification. The owner or operator of a source that satisfies the requirements for a significant permit modification as set forth in rule 567—22.113(455B) shall submit to the department an application for a significant permit modification as specified in rule 567—22.113(455B) within three months after the commencing operation of the changed source. However, if the existing Title V permit would prohibit such construction or change in operation, the owner or operator shall not commence operation of the changed source until the department issues a revised Title V permit that allows the change.    (9)   Application for an acid rain permit. The owner or operator of a source subject to the acid rain program, as set forth in rules 567—22.120(455B) through 567—22.148(455B), shall submit an application for an initial Phase II acid rain permit by January 1, 1996 (for sulfur dioxide), or by January 1, 1998 (for nitrogen oxides).    b.    Complete application.To be deemed complete, an application must provide all information required pursuant to subrule 22.105(2), except that applications for permit revision need supply such information only if it is related to the proposed change.    22.105(2) Standard application form and required information.  To apply for a Title V permit, applicants shall complete the standard permit application form available only from the department and supply all information required by the filing instructions found on that form. The information submitted must be sufficient to evaluate the source and its application and to determine all applicable requirements and to evaluate the fee amount required by rule 567—30.4(455B). If a source is not a major source and is applying for a Title V operating permit solely because of a requirement imposed by paragraphs 22.101(1)“c” and “d,” then the information provided in the operating permit application may cover only the emissions units that trigger Title V applicability. The applicant shall submit the information called for by the application form for each emissions unit to be permitted, except for activities which are insignificant according to the provisions of rule 567—22.103(455B). The applicant shall provide a list of all insignificant activities and specify the basis for the determination of insignificance for each activity. Nationally standardized forms shall be used for the acid rain portions of permit applications and compliance plans, as required by regulations promulgated under Title IV of the Act. The standard application form and any attachments shall require that the following information be provided:    a.    Identifying information, including company name and address (or plant or source name if different from the company name), owner’s name and agent, and telephone number and names of plant site manager/contact.    b.    A description of the source’s processes and products (by two-digit Standard Industrial Classification Code) including any associated with each alternate scenario identified by the applicant.    c.    The following emissions-related information shall be submitted to the department on the emissions inventory portion of the application, unless the department notifies the applicant that the emissions-related information is not required because it has already been submitted:    (1)   All emissions of pollutants for which the source is major, and all emissions of regulated air pollutants. The permit application shall describe all emissions of regulated air pollutants emitted from any emissions unit except where such units are exempted. The source shall submit additional information related to the emissions of air pollutants sufficient to verify which requirements are applicable to the source, and other information necessary to collect any permit fees owed under the approved fee schedule.    (2)   Identification and description of all points of emissions in sufficient detail to establish the basis for fees and the applicability of any and all requirements.    (3)   Emissions rates in tons per year and in such terms as are necessary to establish compliance consistent with the applicable standard reference test method, if any.    (4)   The following information to the extent it is needed to determine or regulate emissions: fuels, fuel use, raw materials, production rates, and operating schedules.    (5)   Identification and description of air pollution control equipment.    (6)   Identification and description of compliance monitoring devices or activities.    (7)   Limitations on source operations affecting emissions or any work practice standards, where applicable, for all regulated pollutants.    (8)   Other information required by any applicable requirement (including information related to stack height limitations developed pursuant to Section 123 of the Act).    (9)   Calculations on which the information in subparagraphs (1) to (8) above is based.    (10)   Fugitive emissions from a source shall be included in the permit application in the same manner as stack emissions, regardless of whether the source category in question is included in the list of sources contained in the definition of major source.    d.    The following air pollution control requirements:    (1)   Citation and description of all applicable requirements, and    (2)   Description of or reference to any applicable test method for determining compliance with each applicable requirement.    e.    Other specific information that may be necessary to implement and enforce other applicable requirements of the Act or of these rules or to determine the applicability of such requirements.    f.    An explanation of any proposed exemptions from otherwise applicable requirements.    g.    Additional information as determined to be necessary by the director to define alternative operating scenarios identified by the source pursuant to subrule 22.108(12) or to define permit terms and conditions relating to operational flexibility and emissions trading pursuant to subrule 22.108(11) and rule 567—22.112(455B).    h.    A compliance plan that contains the following:    (1)   A description of the compliance status of the source with respect to all applicable requirements.    (2)   The following statements regarding compliance status: For applicable requirements with which the stationary source is in compliance, a statement that the stationary source will continue to comply with such requirements. For applicable requirements that will become effective during the permit term, a statement that the stationary source will meet such requirements on a timely basis. For requirements for which the stationary source is not in compliance at the time of permit issuance, a narrative description of how the stationary source will achieve compliance with such requirements.    (3)   A compliance schedule that contains the following:
    1. For applicable requirements with which the stationary source is in compliance, a statement that the stationary source will continue to comply with such requirements. For applicable requirements that will become effective during the permit term, a statement that the stationary source will meet such requirements on a timely basis. A statement that the stationary source will meet in a timely manner applicable requirements that become effective during the permit term shall satisfy this provision, unless a more detailed schedule is expressly required by the applicable requirement.
    2. A compliance schedule for sources that are not in compliance with all applicable requirements at the time of permit issuance. Such a schedule shall include a schedule of remedial measures, including an enforceable sequence of actions with milestones, leading to compliance with any applicable requirements for which the stationary source will be in noncompliance at the time of permit issuance.
    3. This compliance schedule shall resemble and be at least as stringent as any compliance schedule contained in any judicial consent decree or administrative order to which the source is subject. Any compliance schedule shall be supplemental to, and shall not sanction noncompliance with, the applicable requirements on which it is based.
        (4)   A schedule for submission of certified progress reports no less frequently than every six months for sources required to have a compliance schedule in the permit.
        i.    Requirements for compliance certification, including the following:    (1)   A certification of compliance for the prior year with all applicable requirements certified by a responsible official consistent with subrule 22.107(4) and Section 114(a)(3) of the Act.    (2)   A statement of methods used for determining compliance, including a description of monitoring, record keeping, and reporting requirements and test methods.    (3)   A schedule for submission of compliance certifications for each compliance period (one year unless required for a shorter time period by an applicable requirement) during the permit term, which shall be submitted annually, or more frequently if required by an underlying applicable requirement or by the director.    (4)   A statement indicating the source’s compliance status with any applicable enhanced monitoring and compliance certification requirements of the Act.    (5)   Notwithstanding any other provisions of these rules, for the purposes of submission of compliance certifications, an owner or operator is not prohibited from using monitoring as required by subrules 22.108(3), 22.108(4) or 22.108(5) and incorporated into a Title V operating permit in addition to any specified compliance methods.    j.    The compliance plan content requirements specified in these rules shall apply and be included in the acid rain portion of a compliance plan for a Title IV affected source, except as specifically superseded by regulations promulgated under Title IV of the Act, with regard to the schedule and method(s) the source shall use to achieve compliance with the acid rain emissions limitations.
        22.105(3) Hazardous air pollutant early reduction application.  Anyone requesting a compliance extension from a standard issued under Section 112(d) of the Act must submit with its Title V permit application information that complies with the requirements established in 567—paragraph 23.1(4)“d.”    22.105(4) Acid rain application content.  The acid rain application content shall be as prescribed in the acid rain rules found at rules 567—22.128(455B) and 567—22.129(455B).    22.105(5) More than one Title V operating permit for a stationary source.  Following application made pursuant to subrule 22.105(1), the department may, at its discretion, issue more than one Title V operating permit for a stationary source, provided that the owner or operator does not have, and does not propose to have, a sourcewide emission limit or a sourcewide alternative operating scenario.

        ITEM 16.    Amend subparagraph 22.108(17)"a" as follows:    (2)   The reopening and revision on this ground is not required if the effective date of the requirement is later than the date on which the permit is due to expire, unless the original permit or any of its terms and conditions have been extended pursuant to 40 CFR 70.4(b)(10)(i) or (ii) as amended to May 15, 2001through October 6, 2009; or

        ITEM 17.    Amend rule 567—22.120(455B), introductory paragraph, as follows:

    567—22.120(455B) Acid rain program—definitions.  The terms used in rules 567—22.120(455B) through 567—22.147(455B) shall have the meanings set forth in Title IV of the Clean Air Act, 42 U.S.C. 7401, et seq., as amended through November 15, 1990, and in this rule. The definitions set forth in 40 CFR Part 72 as amended through January 24, 2008March 28, 2011, and 40 CFR Part 76 as amended through October 15, 1999, are adopted by reference.

        ITEM 18.    Amend rule 567—22.120(455B), definitions of “40 CFR Part 72,” “40 CFR Part 75,” and “40 CFR Part 78,” as follows:        "40 CFR Part 72," or any cited provision therein, shall mean 40 Code of Federal Regulations Part 72, or the cited provision therein, as amended through January 24, 2008March 28, 2011.        "40 CFR Part 75," or any cited provision therein, shall mean 40 Code of Federal Regulations Part 75, or the cited provision therein, as amended through February 13, 2008January 18, 2012.        "40 CFR Part 78," or any cited provision therein, shall mean 40 Code of Federal Regulations Part 78, or the cited provision therein, as amended through April 28, 2006August 8, 2011.

        ITEM 19.    Amend subrule 22.128(4) as follows:    22.128(4) Submission of copies.  The original and threeTwo copies of all permit applications shall be presented or mailed to the Air Quality Bureau, Iowa Department of Natural Resources, 7900 Hickman Road, Suite 1, Windsor Heights, Iowa 50324.

        ITEM 20.    Amend subrule 23.1(2) as follows:    23.1(2) New source performance standards.  The federal standards of performance for new stationary sources, as defined in 40 Code of Federal Regulations Part 60 as amended or corrected through June 28, 2011September 11, 2015, are adopted by reference, except § 60.530 through § 60.539b (Part 60, Subpart AAA), and shall apply to the following affected facilities. The corresponding 40 CFR Part 60 subpart designation is in parentheses. An earlier date for adoption by reference may be included with the subpart designation in parentheses. Reference test methods (Appendix A), performance specifications (Appendix B), determination of emission rate change (Appendix C), quality assurance procedures (Appendix F) and the general provisions (Subpart A) of 40 CFR Part 60 also apply to the affected facilities.    a.    Fossil fuel-fired steam generators.A fossil fuel-fired steam generating unit of more than 250 million Btu heat input for which construction, reconstruction, or modification is commenced after August 17, 1971. Any facility covered under paragraph “z” is not covered under this paragraph. (Subpart Das amended through January 20, 2011)    b.    Incinerators.An incinerator of more than 50 tons per day charging rate. (Subpart E)    c.    Portland cement plants.Any of the following in a Portland cement plant: kiln; clinker cooler; raw mill system; finish mill system; raw mill dryer; raw material storage; clinker storage; finished product storage; conveyor transfer points; bagging and bulk loading and unloading systems. (Subpart F as amended through October 17, 2000)    d.    Nitric acid plants.A nitric acid production unit.Unless otherwise exempted, these standards apply to any nitric acid production unit that commences construction or modification after August 17, 1971, and on or before October 14, 2011. (Subpart G)    e.    Sulfuric acid plants.A sulfuric acid production unit. (Subpart H)    f.    Asphalt concreteHot mix asphalt plants.An asphalt concrete plant.Each hot mix asphalt facility that commenced construction or modification after June 11, 1973. For the purpose of this paragraph, a hot mix asphalt facility is comprised only of any combination of the following: dryers; systems for screening, handling, storing, and weighing hot aggregate; systems for loading, transferring, and storing mineral filler; systems for mixing hot mix asphalt; and the loading, transfer, and storage systems associated with emission control systems. (Subpart I)    g.    Petroleum refineries.Rescinded IAB 3/18/15, effective 4/22/15.    h.    Secondary lead smelters.Rescinded IAB 3/18/15, effective 4/22/15.    i.    Secondary brass and bronze ingot production plants.Any of the following at a secondary brass and bronze ingot production plant; reverberatory and electric furnaces of 1000/kilograms (2205 pounds) or greater production capacity and blast (cupola) furnaces of 250 kilograms per hour (550 pounds per hour) or greater production capacity. (Subpart M)    j.    Iron and steel plants.A basic oxygen process furnace. (Subpart N)    k.    Sewage treatment plants.An incinerator which burns the sludge produced by municipal sewage treatment plants. (Subpart O of 40 CFR 60 and Subpart E of 40 CFR 503.)    l.    Steel plants.Either of the following at a steel plant: electric arc furnaces and dust-handling equipment, the construction, modification, or reconstruction of which commenced after October 21, 1974, and on or before August 17, 1983. (Subpart AA)    m.    Primary copper smelters.Rescinded IAB 3/18/15, effective 4/22/15.    n.    Primary zinc smelters.Rescinded IAB 3/18/15, effective 4/22/15.    o.    Primary lead smelter.Rescinded IAB 3/18/15, effective 4/22/15.    p.    Primary aluminum reduction plants.Rescinded IAB 3/18/15, effective 4/22/15.    q.    Wet process phosphoric acid plants in the phosphate fertilizer industry.A wet process phosphoric acid plant, which includes any combination of the following: reactors, filters, evaporators and hotwells. (Subpart T)    r.    Superphosphoric acid plants in the phosphate fertilizer industry.A superphosphoric acid plant which includes any combination of the following: evaporators, hotwells, acid sumps, and cooling tanks. (Subpart U)    s.    Diammonium phosphate plants in the phosphate fertilizer industry.A granular diammonium phosphate plant which includes any combination of the following: reactors, granulators, dryers, coolers, screens and mills. (Subpart V)    t.    Triple super phosphate plants in the phosphate fertilizer industry.A triple super phosphate plant which includes any combination of the following: mixers, curing belts (dens), reactors, granulators, dryers, cookers, screens, mills and facilities which store run-of-pile triple superphosphate. (Subpart W)    u.    Granular triple superphosphate storage facilities in the phosphate fertilizer industry.A granular triple superphosphate storage facility which includes any combination of the following: storage or curing piles, conveyors, elevators, screens and mills. (Subpart X)    v.    Coal preparation plants.Any of the following at a coal preparation plant which processes more than 200 tons per day: thermal dryers; pneumatic coal cleaning equipment (air tables); coal processing and conveying equipment (including breakers and crushers); coal storage systems; and coal transfer and loading systems. (Subpart Y)    w.    Ferroalloy production.Any of the following: electric submerged arc furnaces which produce silicon metal, ferrosilicon, calcium silicon, silicomanganese zirconium, ferrochrome silicon, silvery iron, high-carbon ferrochrome, charge chrome, standard ferromanganese, silicomanganese, ferromanganese silicon, or calcium carbide; and dust-handling equipment. (Subpart Z)    x.    Kraft pulp mills.Any of the following in a kraft pulp mill: digester system; brown stock washer system; multiple effect evaporator system; black liquor oxidation system; recovery furnace; smelt dissolving tank; lime kiln; and condensate stripper system. In pulp mills where kraft pulping is combined with neutral sulfite semichemical pulping, the provisions of the standard of performance are applicable when any portion of the material charged to an affected facility is produced by the kraft pulping operation. (Subpart BB)    y.    Lime manufacturing plants.A rotary lime kiln or a lime hydrator used in the manufacture of lime at other than a kraft pulp mill. (Subpart HH)    z.    Electric utility steam generating units.An electric utility steam generating unit that is capable of combusting more than 250 million Btus per hour (73 megawatts) heat input of fossil fuel for which construction or modification or reconstruction is commenced after September 18, 1978, or an electric utility combined cycle gas turbine that is capable of combusting more than 250 million Btus per hour (73 megawatts) heat input. “Electric utility steam generating unit” means any steam electric generating unit that is constructed for the purpose of supplying more than one-third of its potential electric output capacity and more than 25 MW net-electrical output to any utility power distribution system for sale. Also, any steam supplied to a steam distribution system for the purpose of providing steam to a steam electric generator that would produce electrical energy for sale is considered in determining the electrical energy output capacity of the affected facility. (Subpart Daas amended through January 20, 2011)    aa.    Stationary gas turbines.Any simple cycle gas turbine, regenerative cycle gas turbine or any gas turbine portion of a combined cycle steam/electric generating system that is not self-propelled. It may, however, be mounted on a vehicle for portability. (Subpart GG)    bb.    Petroleum storage vessels.Unless exempted, any storage vessel for petroleum liquids for which the construction, reconstruction, or modification commenced after June 11, 1973, and prior to May 19, 1978, having a storage capacity greater than 151,412 liters (40,000 gallons). (Subpart K)    cc.    Petroleum storage vessels.Unless exempted, any storage vessel for petroleum liquids for which the construction, reconstruction, or modification commenced after May 18, 1978, and prior to July 23, 1984, having a storage capacity greater than 151,416 liters (40,000 gallons). (Subpart Ka)    dd.    Glass manufacturing plants.Any glass melting furnace. (Subpart CC)    ee.    Automobile and light-duty truck surface coating operations at assembly plants.Any of the following in an automobile or light-duty truck assembly plant: prime coat operations, guide coat operations, and topcoat operations. (Subpart MM)    ff.    Ammonium sulfate manufacture.Any of the following in the ammonium sulfate industry: ammonium sulfate dryers in the caprolactam by-product, synthetic, and coke oven by-product sectors of the industry. (Subpart PP)    gg.    Surface coating of metal furniture.Any metal furniture surface coating operation in which organic coatings are applied. (Subpart EE)    hh.    Lead-acid battery manufacturing plants.Any lead-acid battery manufacturing plant which uses any of the following: grid casting, paste mixing, three-process operation, lead oxide manufacturing, lead reclamation, other lead-emitting operations. (Subpart KK)    ii.    Phosphate rock plants.Any phosphate rock plant which has a maximum plant production capacity greater than four tons per hour including the following: dryers, calciners, grinders, and ground rock handling and storage facilities, except those facilities producing or preparing phosphate rock solely for consumption in elemental phosphorus production. (Subpart NN)    jj.    Graphic arts industry.Publication rotogravure printing. Any publication rotogravure printing press except proof presses. (Subpart QQ)    kk.    Industrial surface coating — large appliances.Any surface coating operation in a large appliance surface coating line. (Subpart SS)    ll.    Metal coil surface coating.Any of the following at a metal coil surface coating operation: prime coat operation, finish coat operation, and each prime and finish coat operation combined when the finish coat is applied wet-on-wet over the prime coat and both coatings are cured simultaneously. (Subpart TT)    mm.    Asphalt processing and asphalt roofing manufacturing.Any saturator, mineral handling and storage facility at asphalt roofing plants; and any asphalt storage tank and any blowing still at asphalt processing plants, petroleum refineries, and asphalt roofing plants. (Subpart UU)    nn.    Equipment leaks of volatile organic compounds (VOC) in the synthetic organic chemicals manufacturing industry.Standards for affected facilities in the synthetic organic chemicals manufacturing industry (SOCMI) that commenced construction, reconstruction, or modification after January 5, 1981, and on or before November 7, 2006, are set forth in Subpart VV. Standards for affected SOCMI facilities that commenced construction, reconstruction or modification after November 7, 2006, are set forth in Subpart VVa. The standards apply to pumps, compressors, pressure relief devices, sampling systems, open-ended valves or lines (OEL), valves, and flanges or other connectors which handle VOC. (Subpart VV and Subpart VVa)    oo.    Beverage can surface coating.Any beverage can surface coating lines for two-piece steel or aluminum containers in which soft drinks or beer are sold. (Subpart WW)    pp.    Bulk gasoline terminals.The total of all loading racks at bulk gasoline terminals which deliver liquid product into gasoline tank trucks. (Subpart XX)    qq.    Pressure sensitive tape and label surface coating operations.Any coating line used in the tape manufacture of pressure sensitive tape and label materials. (Subpart RR)    rr.    Metallic mineral processing plants.Any ore processing and handling equipment. (Subpart LL)    ss.    Synthetic fiber production facilities.Any solvent-spun synthetic fiber process that produces more than 500 megagrams of fiber per year. (Subpart HHH)    tt.    Equipment leaks of VOC in petroleum refineries.A compressor and all equipment (defined in 40 CFR, Part 60.591) within a process unit for which the construction, reconstruction, or modification commenced after January 4, 1983. (Subpart GGG)    uu.    Flexible vinyl and urethane coating and printing.Each rotogravure printing line used to print or coat flexible vinyl or urethane products. (Subpart FFF)    vv.    Petroleum dry cleaners.Petroleum dry-cleaning plant with a total manufacturer’s rated dryer capacity equal to or greater than 38 kilograms (84 pounds): petroleum solvent dry-cleaning dryers, washers, filters, stills, and settling tanks. (Subpart JJJ)    ww.    Electric arc furnaces and argon-oxygen decarburization vessels constructed after August 17, 1983.Steel plants that produce carbon, alloy, or specialty steels: electric arc furnaces, argon-oxygen decarburization vessels, and dust-handling systems. (Subpart AAa)    xx.    Wool fiberglass insulation manufacturing plants.Rotary spin wool fiberglass manufacturing line. (Subpart PPP)    yy.    Iron and steel plants.Secondary emissions from basic oxygen process steelmaking facilities for which construction, reconstruction, or modification commenced after January 20, 1983. (Subpart Na)    zz.    Equipment leaks of VOC from on-shore natural gas processing plants.A compressor and all equipment defined in 40 CFR, Part 60.631, unless exempted, for which construction, reconstruction, or modification commenced after January 20, 1984. (Subpart KKK)    aaa.    On-shore natural gas processing: SO2 emissions.Unless exempted, each sweetening unit and each sweetening unit followed by a sulfur recovery unit for which construction, reconstruction, or modification commenced after January 20, 1984. (Subpart LLL)    bbb.    Nonmetallic mineral processing plants.Unless exempted, each crusher, grinding mill, screening operation, bucket elevator, belt conveyor, bagging operation, storage bin, enclosed truck or rail car loading station in fixed or portable nonmetallic mineral processing plants for which construction, reconstruction, or modification commenced after August 31, 1983. (Subpart OOO)    ccc.    Industrial-commercial-institutional steam generating units.Unless exempted, each steam generating unit for which construction, reconstruction, or modification commenced after June 19, 1984, and which has a heat input capacity of more than 100 million Btu/hour. (Subpart Dbas amended through January 20, 2011)    ddd.    Volatile organic liquid storage vessels.Unless exempted, volatile organic liquid storage vessels for which construction, reconstruction, or modification commenced after July 23, 1984. (Subpart Kb)    eee.    Rubber tire manufacturing plants.Unless exempted, each undertread cementing operation, each sidewall cementing operation, each tread end cementing operation, each bead cementing operation, each green tire spraying operation, each Michelin-A operation, each Michelin-B operation, and each Michelin-C automatic operation that commences construction or modification after January 20, 1983. (Subpart BBB)    fff.    Industrial surface coating: surface coating of plastic parts for business machines.Each spray booth in which plastic parts for use in the manufacture of business machines receive prime coats, color coats, texture coats, or touch-up coats for which construction, modification, or reconstruction begins after January 8, 1986. (Subpart TTT)    ggg.    VOC emissions from petroleum refinery wastewater systems.Each individual drain system, each oil-water separator, and each aggregate facility for which construction, modification or reconstruction is commenced after May 4, 1987. (Subpart QQQ)    hhh.    Magnetic tape coating facilities.Unless exempted, each coating operation and each piece of coating mix preparation equipment for which construction, modification, or reconstruction is commenced after January 22, 1986. (Subpart SSS)    iii.    Polymeric coating of supporting substrates.Unless exempted, each coating operation and any on-site coating mix preparation equipment used to prepare coatings for the polymeric coating of supporting substrates for which construction, modification, or reconstruction begins after April 30, 1987. (Subpart VVV)    jjj.    VOC emissions from synthetic organic chemical manufacturing industry air oxidation unit processes.Unless exempted, any air oxidation reactor, air oxidation reactor and recovery system or combination of two or more reactors and the common recovery system used in the production of any of the chemicals listed in 40 CFR §60.617 for which construction, modification or reconstruction commenced after October 21, 1983. (Subpart III)    kkk.    VOC emissions from synthetic organic chemical manufacturing industry distillation operations.Unless exempted, any distillation unit, distillation unit and recovery system or combination of two or more distillation units and the common recovery system used in the production of any of the chemicals listed in 40 CFR §60.667 for which construction, modification or reconstruction commenced after December 30, 1983. (Subpart NNN)    lll.    Small industrial-commercial-institutional steam generating units.Each steam generating unit for which construction, modification, or reconstruction is commenced after June 9, 1989, and that has a maximum design heat input capacity of 100 million Btu per hour or less, but greater than or equal to 10 million Btu per hour. (Subpart Dcas amended through January 20, 2011)    mmm.     VOC emissions from the polymer manufacturing industry.Each of the following process sections in the manufacture of polypropylene and polyethylene—raw materials preparation, polymerization reaction, material recovery, product finishing, and product storage; each material recovery section of polystyrene manufacturing using a continuous process; each polymerization reaction section of poly(ethylene terephthalate) manufacturing using a continuous process; each material recovery section of poly(ethylene terephthalate) manufacturing using a continuous process that uses dimethyl terephthalate; each raw material section of poly(ethylene terephthalate) manufacturing using a continuous process that uses terephthalic acid; and each group of fugitive emissions equipment within any process unit in the manufacturing of polypropylene, polyethylene, or polystyrene (including expandable polystyrene). The applicability date for construction, modification or reconstruction for polystyrene and poly(ethylene terephthalate) affected facilities and some polypropylene and polyethylene affected facilities is September 30, 1987. For the other polypropylene and polyethylene affected facilities the applicability date for these regulations is January 10, 1989. (Subpart DDD)    nnn.    Municipal waste combustors.Unless exempted, a municipal waste combustor with a capacity greater than 225 megagrams per day of municipal solid waste for which construction is commenced after December 20, 1989, and on or before September 20, 1994, and modification or reconstruction is commenced after December 20, 1989, and on or before June 19, 1996. (Subpart Ea)    ooo.    Grain elevators.A grain terminal elevator or any grain storage elevator except as provided under 40 CFR 60.304(b), August 31, 1993. A grain terminal elevator means any grain elevator which has a permanent storage capacity of more than 2.5 million U.S. bushels except those located at animal food manufacturers, pet food manufacturers, cereal manufacturers, breweries, and livestock feedlots. A grain storage elevator means any grain elevator located at any wheat flour mill, wet corn mill, dry corn mill (human consumption), rice mill, or soybean oil extraction plant which has a permanent grain storage capacity of 1 million bushels. Any construction, modification, or reconstruction after August 3, 1978, is subject to this paragraph. (Subpart DD)    ppp.    Mineral processing plants.Each calciner and dryer at a mineral processing plant unless excluded for which construction, modification, or reconstruction is commenced after April 23, 1986. (Subpart UUU)    qqq.    VOC emissions from synthetic organic chemical manufacturing industry reactor processes.Unless exempted, each affected facility that is part of a process unit that produces any of the chemicals listed in 40 CFR §60.707 as a product, coproduct, by-product, or intermediate for which construction, modification, or reconstruction commenced after June 29, 1990. Affected facility is each reactor process not discharging its vent stream into a recovery system, each combination of a reactor process and the recovery system into which its vent stream is discharged, or each combination of two or more reactor processes and the common recovery system into which their vent streams are discharged. (Subpart RRR)    rrr.    Municipal solid waste landfills, as defined by 40 CFR 60.751.Each municipal solid waste landfill that commenced construction, reconstruction or modification or began accepting waste on or after May 30, 1991, must comply. (Subpart WWW)    sss.    Municipal waste combustors.Unless exempted, a municipal waste combustor with a combustion capacity greater than 250 tons per day of municipal solid waste for which construction, modification or reconstruction is commenced after September 20, 1994, or for which modification or reconstruction is commenced after June 19, 1996. (Subpart Eb)    ttt.    Hospital/medical/infectious waste incinerators.Unless exempted, a hospital/medical/ infectious waste incinerator for which construction is commenced after June 20, 1996, or for which modification is commenced after March 16, 1998. (Subpart Ec)**As of November 24, 2010, the adoption by reference of Part 60 Subpart Ec is rescinded.    uuu.    New small municipal waste combustion units.Unless exempted, this standard applies to a small municipal waste combustion unit that commenced construction after August 30, 1999, or small municipal waste combustion units that commenced reconstruction or modification after June 6, 2001. (Part 60, Subpart AAAA)    vvv.    Commercial and industrial solid waste incineration.Unless exempted, this standard applies to units for which construction is commenced after November 30, 1999, or for which modification or reconstruction is commenced on or after June 1, 2001. (Part 60, Subpart CCCC, as amended through December 1, 2000)    www.     Other solid waste incineration (OSWI) units.Unless exempted, this standard applies to other solid waste incineration (OSWI) units for which construction is commenced after December 9, 2004, or for which modification or reconstruction is commenced on or after June 16, 2006. (Part 60, Subpart EEEE)    xxx.    Reserved.    yyy.    Stationary compression ignition internal combustion engines.Unless otherwise exempted, these standards apply to each stationary compression ignition internal combustion engine whose construction, modification or reconstruction commenced after July 11, 2005. (Part 60, Subpart IIII)    zzz.    Stationary spark ignition internal combustion engines.These standards apply to each stationary spark ignition internal combustion engine whose construction, modification or reconstruction commenced after June 12, 2006. (Part 60, Subpart JJJJ)    aaaa.     Stationary combustion turbines.Unless otherwise exempted, these standards apply to stationary combustion turbines with a heat input at peak load equal to or greater than 10 MMBtu per hour, based on the higher heating value of the fuel, that commence construction, modification, or reconstruction after February 18, 2005. (Part 60, Subpart KKKK)    bbbb.     Nitric acid plants.Unless otherwise exempted, these standards apply to any nitric acid production unit that commenced construction, reconstruction or modification after October 14, 2011. (Subpart Ga)

        ITEM 21.    Amend subrule 23.1(3), introductory paragraph, as follows:    23.1(3) Emission standards for hazardous air pollutants.  The federal standards for emissions of hazardous air pollutants, 40 Code of Federal Regulations Part 61 as amended or corrected through May 16, 2007February 27, 2014, and 40 CFR Part 503 as adopted on August 4, 1999, are adopted by reference, except 40 CFR §61.20 to §61.26, §61.90 to §61.97, §61.100 to §61.108, §61.120 to §61.127, §61.190 to §61.193, §61.200 to §61.205, §61.220 to §61.225, and §61.250 to §61.256, and shall apply to the following affected pollutants and facilities and activities listed below. The corresponding 40 CFR Part 61 subpart designation is in parentheses. Reference test methods (Appendix B), compliance status information requirements (Appendix A), quality assurance procedures (Appendix C) and the general provisions (Subpart A) of Part 61 also apply to the affected activities or facilities.

        ITEM 22.    Amend subrule 23.1(4) as follows:    23.1(4) Emission standards for hazardous air pollutants for source categories.  The federal standards for emissions of hazardous air pollutants for source categories, 40 Code of Federal Regulations Part 63 as amended or corrected through December 21, 2012July 25, 2016, are adopted by reference, except those provisions which cannot be delegated to the states. The corresponding 40 CFR Part 63 subpart designation is in parentheses. An earlier date for adoption by reference may be included with the subpart designation in parentheses (except for paragraph 23.1(4)“cz,” which specifies a later date for adoption by reference). 40 CFR Part 63, Subpart B, incorporates the requirements of Clean Air Act Sections 112(g) and 112(j) and does not adopt standards for a specific affected facility. Test methods (Appendix A), sources defined for early reduction provisions (Appendix B), and determination of the fraction biodegraded (Fbio) in the biological treatment unit (Appendix C) of Part 63 also apply to the affected activities or facilities. For the purposes of this subrule, “hazardous air pollutant” has the same meaning found in 567—22.100(455B). For the purposes of this subrule, a “major source” means any stationary source or group of stationary sources located within a contiguous area and under common control that emits or has the potential to emit, considering controls, in the aggregate, 10 tons per year or more of any hazardous air pollutant or 25 tons per year or more of any combination of hazardous air pollutants, unless a lesser quantity is established, or in the case of radionuclides, where different criteria are employed. For the purposes of this subrule, an “area source” means any stationary source of hazardous air pollutants that is not a “major source” as defined in this subrule. Paragraph 23.1(4)“a,” general provisions (Subpart A) of Part 63, shall apply to owners or operators who are subject to subsequent subparts of 40 CFR Part 63 (except when otherwise specified in a particular subpart or in a relevant standard) as adopted by reference below.    a.    General provisions.General provisions apply to owners or operators of affected activities or facilities except when otherwise specified in a particular subpart or in a relevant standard. (Subpart A)    b.    Requirements for control technology determinations for major sources in accordance with Clean Air Act Sections 112(g) and 112(j).(40 CFR Part 63, Subpart B)    (1)   Section 112(g) requirements. For the purposes of this subparagraph, the definitions shall be the same as the definitions found in 40 CFR 63.2 and 40 CFR 63.41 as amended through December 27, 1996. The owner or operator of a new or reconstructed major source of hazardous air pollutants must apply maximum achievable control technology (MACT) for new sources to the new or reconstructed major source. If the major source in question has been specifically regulated or exempted from regulation under a standard issued pursuant to Section 112(d), Section 112(h), or Section 112(j) of the Clean Air Act and incorporated in another subpart of 40 CFR Part 63, excluded in 40 CFR 63.40(e) and (f), or the owner or operator of such major source has received all necessary air quality permits for such construction or reconstruction project before June 29, 1998, then the major source in question is not subject to the requirements of this subparagraph. The owner or operator of an affected source shall apply for a construction permit as required in 567—paragraph 22.1(1)“b.” The construction permit application shall contain an application for a case-by-case MACT determination for the major source.    (2)   Section 112(j) requirements. The owner or operator of a new or existing major source of hazardous air pollutants which includes one or more stationary sources included in a source category or subcategory for which the U.S. Environmental Protection Agency has failed to promulgate an emission standard within 18 months of the deadline established under CAA 112(d) must submit a MACT application (Parts 1 and 2) in accordance with the provisions of 40 CFR 63.52, as amended through April 5, 2002, by the CAA Section 112(j) deadline. In addition, the owner or operator of a new emission unit may submit an application for a Notice of MACT Approval before construction, as defined in 40 CFR 63.41, in accordance with the provisions of 567—paragraph 22.1(3)“a.”    c.    Reserved.    d.    Compliance extensions for early reductions of hazardous air pollutants.Compliance extensions for early reductions of hazardous air pollutants are available to certain owners or operators of an existing source who wish to obtain a compliance extension from a standard issued under Section 112(d) of the Act. (Subpart D)    e.    Reserved.    f.    Emission standards for organic hazardous air pollutants from the synthetic chemical manufacturing industry.These standards apply to chemical manufacturing process units that are part of a major source. These standards include applicability provisions, definitions and other general provisions that are applicable to Subparts F, G, and H of 40 CFR 63. (Subpart F)    g.    Emission standards for organic hazardous air pollutants from the synthetic organic chemical manufacturing industry for process vents, storage vessels, transfer operations, and wastewater.These standards apply to all process vents, storage vessels, transfer racks, and wastewater streams within a source subject to Subpart F of 40 CFR 63. (Subpart G)    h.    Emission standards for organic hazardous air pollutants for equipment leaks.These standards apply to emissions of designated organic hazardous air pollutants from specified processes that are located at a plant site that is a major source. Affected equipment includes: pumps, compressors, agitators, pressure relief devices, sampling connection systems, open-ended valves or lines, valves, connectors, surge control vessels, bottoms receivers, instrumentation systems and control devices or systems required by this subpart that are intended to operate in organic hazardous air pollutant service 300 hours or more during the calendar year within a source subject to the provisions of a specific subpart in 40 CFR Part 63. In organic hazardous air pollutant or in organic HAP service means that a piece of equipment either contains or contacts a fluid (liquid or gas) that is at least 5 percent by weight of total organic HAPs as determined according to the provisions of 40 CFR Part 63.161. The provisions of 40 CFR Part 63.161 also specify how to determine that a piece of equipment is not in organic HAP service. (Subpart H)    i.    Emission standards for organic hazardous air pollutants for certain processes subject to negotiated regulation for equipment leaks.These standards apply to emissions of designated organic hazardous air pollutants from specified processes (defined in 40 CFR 63.190) that are located at a plant site that is a major source. Subject equipment includes pumps, compressors, agitators, pressure relief devices, sampling connection systems, open-ended valves or lines, valves, connectors, and instrumentation systems at certain source categories. These standards establish the applicability of Subpart H for sources that are not classified as synthetic organic chemical manufacturing industries. (Subpart I)    j.    Emission standards for hazardous air pollutants for polyvinyl chloride and copolymers production.Rescinded IAB 3/18/15, effective 4/22/15.    k.    Reserved.    l.    Emission standards for coke oven batteries.These standards apply to existing coke oven batteries, including by-product and nonrecovery coke oven batteries and to new coke oven batteries, or as defined in the subpart. (Subpart L)    m.    Perchloroethylene air emission standards for dry cleaning facilities (40 CFR Part 63, Subpart M).These standards apply to the owner or operator of each dry cleaning facility that uses perchloroethylene (also known as perc). The specific standards applicable to dry cleaning facilities, including the compliance deadlines, are set out in the federal regulations contained in Subpart M. In general, dry cleaning facilities must meet the following requirements, which are set out in greater detail in Subpart M:    (1)   New and existing major source dry cleaning facilities are required to control emissions to the level of the maximum achievable control technology (MACT).    (2)   New and existing area source dry cleaning facilities are required to control emissions to the level achieved by generally available control technologies (GACT) or management practices.    (3)   New area sources that are located in residential buildings and that commence operation after July 13, 2006, are prohibited from using perc.    (4)   New area sources located in residential buildings that commenced operation between December 21, 2005, and July 13, 2006, must eliminate all use of perc by July 27, 2009.    (5)   Existing area sources located in residential buildings must eliminate all use of perc by December 21, 2020.    (6)   New area sources that are not located in residential buildings are prohibited from operating transfer machines.    (7)   Existing area sources that are not located in residential buildings are prohibited from operating transfer machines after July 27, 2008.    (8)   All sources must comply with the requirements in Subpart M for emissions control, equipment specifications, leak detection and repair, work practice standards, record keeping and reporting.    n.    Emission standards for chromium emissions from hard and decorative chromium electroplating and chromium anodizing tanks.These standards limit the discharge of chromium compound air emissions from existing and new hard chromium electroplating, decorative chromium electroplating, and chromium anodizing tanks at major and area sources. (Subpart N)    o.    Emission standards for hazardous air pollutants for ethylene oxide commercial sterilization and fumigation operations.New and existing major source ethylene oxide commercial sterilization and fumigation operations are required to control emissions to the level of the maximum achievable control technology (MACT). New and existing area source ethylene oxide commercial sterilization and fumigation operations are required to control emissions to the level achieved by generally available control technologies (GACT). Certain sources are exempt as described in 40 CFR 63.360. (Subpart O)    p.    Emission standards for primary aluminum reduction plants.Rescinded IAB 3/18/15, effective 4/22/15.    q.    Emission standards for hazardous air pollutants for industrial process cooling towers.These standards apply to all new and existing industrial process cooling towers that are operated with chromium-based water treatment chemicals on or after September 8, 1994, and are either major sources or are integral parts of facilities that are major sources. (Subpart Q)    r.    Emission standards for hazardous air pollutants for sources categories: gasoline distribution: (Stage 1).These standards apply to all existing and new bulk gasoline terminals and pipeline breakout stations that are major sources of hazardous air pollutants or are located at plant sites that are major sources. Bulk gasoline terminals and pipeline breakout stations located within a contiguous area or under common control with a refinery complying with 40 CFR Subpart CC are not subject to 40 CFR Subpart R standards. (Subpart R)    s.    Emission standards for hazardous air pollutants for pulp and paper (noncombustion).These standards apply to pulping and bleaching process sources at kraft, soda, sulfite, and stand-alone semichemical pulp mills. Affected sources include pulp mills and integrated mills (mills that manufacture pulp and paper/paperboard) that chemically pulp wood fiber (using kraft, sulfite, soda, or semichemical methods); pulp secondary fiber; pulp nonwood fiber; and mechanically pulp wood fiber. (Subpart S)    t.    Emission standards for hazardous air pollutants: halogenated solvent cleaning.These standards require batch vapor solvent cleaning machines and in-line solvent cleaning machines to meet emission standards reflecting the application of maximum achievable control technology (MACT) for major and area sources; area source batch cold cleaning machines are required to achieve generally available control technology (GACT). The subpart regulates the emissions of the following halogenated hazardous air pollutant solvents: methylene chloride, perchloroethylene, trichloroethylene, 1,1,1-trichloroethane, carbon tetrachloride, and chloroform. (Subpart T)    u.    Emission standards for hazardous air pollutants: Group I polymers and resins.Applicable to existing and new major sources that emit organic HAP during the manufacture of one or more elastomers including but not limited to producers of butyl rubber, halobutyl rubber, epichlorohydrin elastomers, ethylene propylene rubber, Hypalon™, neoprene, nitrile butadiene rubber, nitrile butadiene latex, polybutadiene rubber/styrene butadiene rubber by solution, polysulfide rubber, styrene butadiene rubber by emulsion, and styrene butadiene latex. MACT is required for major sources. (Subpart U)    v.    Reserved.    w.    Emission standards for hazardous air pollutants for epoxy resins production and nonnylon polyamides production.These standards apply to all existing, new and reconstructed manufacturers of basic liquid epoxy resins and manufacturers of wet strength resins that are located at a plant site that is a major source. (Subpart W)    x.    National emission standards for hazardous air pollutants from secondary lead smelting.Rescinded IAB 3/18/15, effective 4/22/15.    y.    Emission standards for marine tank vessel loading operations.This standard requires existing and new major sources to control emissions using maximum achievable control technology (MACT) to control hazardous air pollutants (HAP). (Subpart Y)    z.    Reserved.    aa.    Emission standards for hazardous air pollutants for phosphoric acid manufacturing.These standards apply to all new and existing major sources of phosphoric acid manufacturing. Affected processes include, but are not limited to, wet process phosphoric acid process lines, superphosphoric acid process lines, phosphate rock dryers, phosphate rock calciners, and purified phosphoric acid process lines. (Subpart AA)    ab.    Emission standards for hazardous air pollutants for phosphate fertilizers production.These standards apply to all new and existing major sources of phosphate fertilizer production plants. Affected processes include, but are not limited to, diammonium and monoammonium phosphate process lines, granular triple superphosphate process lines, and granular triple superphosphate storage buildings. (Subpart BB)    ac.    National emission standards for hazardous air pollutants: petroleum refineries.Rescinded IAB 3/18/15, effective 4/22/15.    ad.    Emission standards for hazardous air pollutants for off-site waste and recovery operations.This rule applies to major sources of HAP emissions which receive certain wastes, used oil, and used solvents from off-site locations for storage, treatment, recovery, or disposal at the facility. Maximum achievable control technology (MACT) is required to reduce HAP emissions from tanks, surface impoundments, containers, oil-water separators, individual drain systems and other material conveyance systems, process vents, and equipment leaks. Regulated entities include but are not limited to businesses that operate any of the following: hazardous waste treatment, storage, and disposal facilities; Resource Conservation and Recovery Act (RCRA) exempt hazardous wastewater treatment facilities other than publicly owned treatment works; used solvent recovery plants; RCRA exempt hazardous waste recycling operations; used oil re-refineries. The regulations also apply to federal agency facilities that operate any of the waste management or recovery operations. (Subpart DD)    ae.    Emission standards for magnetic tape manufacturing operations.These standards apply to major sources performing magnetic tape manufacturing operations. (Subpart EE)    af.    Reserved.    ag.    National emission standards for hazardous air pollutants for source categories: aerospace manufacturing and rework facilities.These standards apply to major sources involved in the manufacture, repair, or rework of aerospace components and assemblies, including but not limited to airplanes, helicopters, missiles, and rockets for civil, commercial, or military purposes. Hazardous air pollutants regulated under this standard include chromium, cadmium, methylene chloride, toluene, xylene, methyl ethyl ketone, ethylene glycol, and glycol ethers. (Subpart GG)    ah.    Emission standards for hazardous air pollutants for oil and natural gas production.These standards apply to all new and existing major sources of oil and natural gas production. Affected sources include, but are not limited to, processing of liquid or gaseous hydrocarbons, such as ethane, propane, butane, pentane, natural gas, and condensate extracted from field natural gas. (Subpart HH)    ai.    Emission standards for hazardous air pollutants for shipbuilding and ship repair (surface coating) operations.Rescinded IAB 3/18/15, effective 4/22/15.    aj.    Emission standards for hazardous air pollutants for hazardous air pollutant (HAP) emissions from wood furniture manufacturing operations.These standards apply to each facility that is engaged, either in part or in whole, in the manufacture of wood furniture or wood furniture components and that is located at a plant site that is a major source. (Subpart JJ)    ak.    Emission standards for hazardous air pollutants for the printing and publishing industry.Existing and new major sources are required to control hazardous air pollutants (HAP) using the maximum achievable control technology (MACT). Affected units are publication rotogravure, product and packaging rotogravure, and wide-web flexographic printing. (Subpart KK)    al.    Emission standards for hazardous air pollutants for primary aluminum reduction plants.Rescinded IAB 3/18/15, effective 4/22/15.    am.    Emission standards for hazardous air pollutants for chemical recovery combustion sources at kraft, soda, sulfite, and stand-alone semichemical pulp mills.(Part 63, Subpart MM)    an.    Reserved.    ao.    Emission standards for tanks – level 1.These provisions apply when another paragraph under this rule references the use of this paragraph for such air emission control. These air emission standards are placed here for administrative convenience and only apply to those owners and operators of facilities subject to the referencing paragraph. The provisions of paragraph 23.1(4)“a,” general provisions (Subpart A), do not apply to this paragraph except as specified in a referencing paragraph. (Part 63, Subpart OO)    ap.    Emission standards for containers.These provisions apply when another paragraph under this rule references the use of this paragraph for such air emission control. These air emission standards are placed here for administrative convenience and only apply to those owners and operators of facilities subject to the referencing paragraph. The provisions of paragraph 23.1(4)“a,” general provisions (Subpart A), do not apply to this paragraph except as specified in a referencing paragraph. (Part 63, Subpart PP)    aq.    Emission standards for surface impoundments.These provisions apply when another paragraph under this rule references the use of this paragraph for such air emission control. These air emission standards are placed here for administrative convenience and only apply to those owners and operators of facilities subject to the referencing paragraph. The provisions of paragraph 23.1(4)“a,” general provisions (Subpart A), do not apply to this paragraph except as specified in a referencing paragraph. (Part 63, Subpart QQ)    ar.    Emission standards for individual drain systems.These provisions apply when another paragraph under this rule references the use of this paragraph for such air emission control. These air emission standards are placed here for administrative convenience and only apply to those owners and operators of facilities subject to the referencing paragraph. The provisions of paragraph 23.1(4)“a,” general provisions (Subpart A), do not apply to this paragraph except as specified in a referencing paragraph. (Part 63, Subpart RR)    as.    Emission standards for closed vent systems, control devices, recovery devices and routing to a fuel gas system or a process.These provisions apply when another paragraph under this rule references the use of this paragraph for such air emission control. These air emission standards are placed here for administrative convenience and only apply to those owners and operators of facilities subject to the referencing paragraph. The provisions of paragraph 23.1(4)“a,” general provisions, (Subpart A), do not apply to this paragraph except as specified in a referencing paragraph. (Subpart SS)    at.    Emission standards for equipment leaks—control level 1.These provisions apply to the control of air emissions from equipment leaks for which another paragraph under this rule references the use of this paragraph for such emission control. These air emission standards for equipment leaks are placed here for administrative convenience and only apply to those owners and operators of facilities subject to the referencing paragraph. The provisions of paragraph 23.1(4)“a,” general provisions, (Subpart A), do not apply to this paragraph except as specified in a referencing paragraph. (Subpart TT)    au.    Emission standards for equipment leaks—control level 2 standards.These provisions apply to the control of air emissions from equipment leaks for which another paragraph under this rule references the use of this paragraph for such air emission control. These air emission standards for equipment leaks are placed here for administrative convenience and only apply to those owners and operators of facilities subject to the referencing paragraph. The provisions of paragraph 23.1(4)“a,” general provisions, (Subpart A), do not apply to this paragraph except as specified in a referencing paragraph. (Subpart UU)    av.    Emission standards for oil-water separators and organic-water separators.These provisions apply when another paragraph under this rule references the use of this paragraph for such air emission control. These air emission standards are placed here for administrative convenience and only apply to those owners and operators of facilities subject to the referencing paragraph. The provisions of paragraph 23.1(4)“a,” general provisions (Subpart A), do not apply to this paragraph except as specified in a referencing paragraph. (Part 63, Subpart VV)    aw.    Emission standards for storage vessels (tanks)—control level 2.These provisions apply to the control of air emissions from storage vessels for which another paragraph under this rule references the use of this paragraph for such air emission control. These air emission standards for storage vessels are placed here for administrative convenience and only apply to those owners and operators of facilities subject to the referencing paragraph. The provisions of paragraph 23.1(4)“a,” general provisions, (Subpart A), do not apply to this paragraph except as specified in a referencing paragraph. (Subpart WW)    ax.    Emission standards for ethylene manufacturing process units: heat exchange systems and waste operations.This standard applies to hazardous air pollutants (HAPs) from heat exchange systems and waste streams at new and existing ethylene production units. (Part 63, Subpart XX)    ay.    Emission standards for hazardous air pollutants: generic maximum achievable control technology (Generic MACT).These standards apply to new and existing major sources of acetal resins (AR) production, acrylic and modacrylic fiber (AMF) production, hydrogen fluoride (HF) production, polycarbonate (PC) production, carbon black production, cyanide chemicals manufacturing, ethylene production, and Spandex production. Affected processes include, but are not limited to, producers of homopolymers and copolymers of alternating oxymethylene units, acrylic fiber, modacrylic fiber synthetics composed of acrylonitrile (AN) units, hydrogen fluoride and polycarbonate. (Subpart YY)    az.    to bb. Reserved.    bc.    Emission standards for hazardous air pollutants for steel pickling—HCL process facilities and hydrochloric acid regeneration plants.Rescinded IAB 3/18/15, effective 4/22/15.    bd.    Emission standards for hazardous air pollutants for mineral wool production.These standards apply to all new and existing major sources of mineral wool production. Affected processes include, but are not limited to, cupolas and curing ovens. (Subpart DDD)    be.    Emission standards for hazardous air pollutants from hazardous waste combustors.These standards apply to all hazardous waste combustors: hazardous waste incinerators, hazardous waste burning cement kilns, hazardous waste burning lightweight aggregate kilns, hazardous waste solid fuel boilers, hazardous waste liquid fuel boilers, and hazardous waste hydrochloric acid production furnaces, except as specified in Subpart EEE. Both area sources and major sources are subject to this subpart as of April 19, 1996, and are subject to the requirement to apply for and obtain a Title V permit. (Part 63, Subpart EEE)    bf.    Reserved.    bg.    Emission standards for hazardous air pollutants for pharmaceutical manufacturing.These standards apply to producers of finished dosage forms of drugs, for example, tablets, capsules, and solutions, that contain an active ingredient generally, but not necessarily, in association with inactive ingredients. Pharmaceuticals include components whose intended primary use is to furnish pharmacological activity or other direct effect in the diagnosis, cure, mitigation, treatment, or prevention of disease, or to affect the structure or any function of the body of humans or other animals. The regulations do not apply to research and development facilities. (Subpart GGG)    bh.    Emission standards for hazardous air pollutants for natural gas transmission and storage.These standards apply to all new and existing major sources of natural gas transmission and storage. Natural gas transmission and storage facilities are those that transport or store natural gas prior to its entering the pipeline to a local distribution company. Affected sources include, but are not limited to, mains, valves, meters, boosters, regulators, storage vessels, dehydrators, compressors and delivery systems. (Subpart HHH)    bi.    Emission standards for hazardous air pollutants for flexible polyurethane foam production.These standards apply to producers of slabstock, molded, and rebond flexible polyurethane foam. The regulations do not apply to processes dedicated exclusively to the fabrication (i.e., gluing or otherwise bonding foam pieces together) of flexible polyurethane foam or to research and development. (Subpart III)    bj.    Emission standards for hazardous air pollutants: Group IV polymers and resins.Applicable to existing and new major sources that emit organic HAP during the manufacture of the following polymers and resins: acrylonitrile butadiene styrene resin (ABS), styrene acrylonitrile resin (SAN), methyl methacrylate acrylonitrile butadiene styrene resin (MABS), methyl methacrylate butadiene styrene resin (MBS), polystyrene resin, poly (ethylene terephthalate) resin (PET), and nitrile resin. MACT is required for major sources. (Subpart JJJ)    bk.    Reserved.    bl.    Emission standards for hazardous air pollutants for Portland cement manufacturing operations.These standards apply to all new and existing major and area sources of Portland cement manufacturing unless exempted. Cement kiln dust (CKD) storage facilities, including CKD piles and landfills, are excluded from this standard. Affected processes include, but are not limited to, all cement kilns and in-line kiln/raw mills, unless they burn hazardous waste. (Subpart LLL as amended through December 20, 2006)    bm.    Emission standards for hazardous air pollutants for pesticide active ingredient production.These standards apply to all new and existing major sources of pesticide active ingredient production that manufacture organic pesticide active ingredients (PAI), including herbicides, insecticides and fungicides. Affected processes include, but are not limited to, processing equipment, connected piping and ducts, associated storage vessels, pumps, compressors, agitators, pressure relief devices, sampling connection systems, open-ended valves or lines, valves and connectors. Exempted sources include research and development facilities, storage vessels already subject to another 40 CFR Part 63 NESHAP, production of ethylene, storm water from segregated sewers, water from fire-fighting and deluge systems (including testing of such systems) and various spills. (Subpart MMM)    bn.    Emission standards for hazardous air pollutants for wool fiberglass manufacturing.These standards apply to all new and existing major sources of wool fiberglass manufacturing. Affected processes include, but are not limited to, all glass-melting furnaces, rotary spin (RS) manufacturing lines that produce bonded building insulation, flame attenuation (FA) manufacturing lines producing bonded pipe insulation and new FA manufacturing lines producing bonded heavy-density products. (Subpart NNN)    bo.    Emission standards for hazardous air pollutants for amino/phenolic resins production.These standards apply to new or existing facilities that own or operate an amino or phenolic resins production unit. (Part 63, Subpart OOO)    bp.    Emission standards for hazardous air pollutants for polyether polyols production.These standards apply to all new and existing major sources of polyether polyols. Polyether polyols are compounds formed through polymerization of ethylene oxide, propylene oxide or other cyclic ethers with compounds having one or more reactive hydrogens to form polyethers. Affected processes include, but are not limited to, storage vessels, process vents, heat exchange systems, equipment leaks and wastewater operations. (Subpart PPP)    bq.    Emission standards for hazardous air pollutants for primary copper smelting.Rescinded IAB 3/18/15, effective 4/22/15.    br.    Emission standards for hazardous air pollutants for secondary aluminum production.(Part 63, Subpart RRR)    bs.    Reserved.    bt.    Emission standards for hazardous air pollutants for primary lead smelting.Rescinded IAB 3/18/15, effective 4/22/15.    bu.    Emission standards for hazardous air pollutants for petroleum refineries: catalytic cracking units, catalytic reforming units, and sulfur recovery units.This standard applies to a new or existing petroleum refinery that is located at a major source of hazardous air pollutants (HAPs) emissions. (Part 63, Subpart UUU)    bv.    Emission standards for hazardous air pollutants publicly owned treatment works (POTW).(Part 63, Subpart VVV)    bw.    Reserved.    bx.    Emission standards for hazardous air pollutants for ferroalloys production: ferromanganese and silicomanganese.These standards apply to all new and existing major sources of ferroalloys production of ferromanganese and silicomanganese. Affected processes include, but are not limited to, submerged arc furnaces, metal oxygen refining (MOR) processes, crushing and screening operations, and fugitive dust sources. (Subpart XXX)    by.    to bz. Reserved.    ca.    Emission standards for hazardous air pollutants: municipal solid waste landfills.This standard applies to existing and new municipal solid waste (MSW) landfills. (Part 63, Subpart AAAA)    cb.    Reserved.    cc.    Emission standards for hazardous air pollutants for the manufacturing of nutritional yeast.(Part 63, Subpart CCCC)    cd.    Emission standards for hazardous air pollutants for plywood and composite wood products (formerly plywood and particle board manufacturing).These standards apply to new and existing major sources with equipment used to manufacture plywood and composite wood products. This equipment includes dryers, refiners, blenders, formers, presses, board coolers, and other process units associated with the manufacturing process. This also includes coating operations, on-site storage and wastewater treatment. However, only certain process units (defined in the federal rule) are subject to control or work practice requirements. (Part 63, Subpart DDDD)    ce.    Emission standards for hazardous air pollutants for organic liquids distribution (non-gasoline).These standards apply to new and existing major source organic liquids distribution (non-gasoline) operations, which are carried out at storage terminals, refineries, crude oil pipeline stations, and various manufacturing facilities. (Part 63, Subpart EEEE)    cf.    Emission standards for hazardous air pollutants for miscellaneous organic chemical manufacturing (MON).These standards establish emission limits and work practice standards for new and existing major sources with miscellaneous organic chemical manufacturing process units, wastewater treatment and conveyance systems, transfer operations, and associated ancillary equipment. (Part 63, Subpart FFFF)    cg.    Emission standards for hazardous air pollutants for solvent extraction for vegetable oil production.(Part 63, Subpart GGGG)    ch.    Emission standards for hazardous air pollutants for wet-formed fiberglass mat production.This standard applies to wet-formed fiberglass mat production plants that are major sources of hazardous air pollutants. These plants may be stand-alone facilities or located with asphalt roofing and processing facilities. (Part 63, Subpart HHHH)    ci.    Emission standards for hazardous air pollutants for surface coating of automobiles and light-duty trucks.These standards apply to new, reconstructed, or existing affected sources, as defined in the standard, that are located at a facility which applies topcoat to new automobile or new light-duty truck bodies or body parts for new automobiles or new light-duty trucks and that is a major source, is located at a major source, or is part of a major source of emissions of hazardous air pollutants. Additional applicability criteria and exemptions from these standards may apply. (Part 63, Subpart IIII)    cj.    Emission standards for hazardous air pollutants: paper and other web coating.This standard applies to a facility that is engaged in the coating of paper, plastic film, metallic foil, and other web surfaces located at a major source of hazardous air pollutant (HAP) emissions. (Part 63, Subpart JJJJ)    ck.    Emission standards for hazardous air pollutants for surface coating of metal cans.These standards apply to a metal can surface coating operation that uses at least 5,700 liters (1,500 gallons (gal)) of coatings per year and is a major source, is located at a major source, or is part of a major source of hazardous air pollutant emissions. Coating operations located at an area source are not subject to this rule. Additional applicability criteria and exemptions from these standards may apply. (Part 63, Subpart KKKK)    cl.    Reserved.    cm.    Emission standards for hazardous air pollutants for surface coating of miscellaneous metal parts and products.These standards apply to miscellaneous metal parts and products surface coating facilities that are a major source, are located at a major source, or are part of a major source of hazardous air pollutant emissions. A miscellaneous metal parts and products surface coating facility that is located at an area source is not subject to this standard. Certain sources are exempt as described in the standard. (Part 63, Subpart MMMM)    cn.    Emission standards for hazardous air pollutants: surface coating of large appliances.This standard applies to a facility that applies coatings to large appliance parts or products, and is a major source, is located at a major source, or is part of a major source of emissions of hazardous air pollutants (HAPs). The large appliances source category includes facilities that apply coatings to large appliance parts or products. Large appliances include “white goods” such as ovens, refrigerators, freezers, dishwashers, laundry equipment, trash compactors, water heaters, comfort furnaces, electric heat pumps and most HVAC equipment intended for any application. (Part 63, Subpart NNNN)    co.    Emission standards for hazardous air pollutants for printing, coating, and dyeing of fabrics and other textiles.These standards apply to new and existing facilities with fabric or other textile coating, printing, slashing, dyeing, or finishing operations, or group of such operations, that are a major source of hazardous air pollutants or are part of a facility that is a major source of hazardous air pollutants. Coating, printing, slashing, dyeing, or finishing operations located at an area source are not subject to this standard. Several exclusions from this source category are listed in the standard. (Part 63, Subpart OOOO)    cp.    Emission standards for surface coating of plastic parts and products.These standards apply to new and existing major sources with equipment used to coat plastic parts and products. The surface coating application process includes drying/curing operations, mixing or thinning operations, and cleaning operations. Coating materials include, but are not limited to, paints, stains, sealers, topcoats, basecoats, primers, inks, and adhesives. (Part 63, Subpart PPPP)    cq.    Emission standards for hazardous air pollutants for surface coating of wood building products.These standards establish emission limitations, operating limits, and work practice requirements for wood building products surface coating facilities that use at least 1,100 gallons of coatings per year and are a major source, are located at a major source, or are part of a major source of hazardous air pollutant emissions. Wood building products surface coating facilities located at an area source are not subject to this standard. Several exclusions from this source category are listed in the standard. (Part 63, Subpart QQQQ)    cr.    Emission standards for hazardous air pollutants: surface coating of metal furniture.This standard applies to a metal furniture surface coating facility that is a major source, is located at a major source, or is part of a major source of HAP emissions. A metal furniture surface coating facility is one that applies coatings to metal furniture or components of metal furniture. Metal furniture means furniture or components that are constructed either entirely or partially from metal. (Part 63, Subpart RRRR)    cs.    Emission standards for hazardous air pollutants: surface coating of metal coil.This standard requires that all new and existing “major” air toxics sources in the metal coil coating industry meet specific emission limits. Metal coil coating is the process of applying a coating (usually protective or decorative) to one or both sides of a continuous strip of sheet metal. Industries using coated metal include: transportation, building products, appliances, can manufacturing, and packaging. Other products using coated metal coil include measuring tapes, ventilation systems for walls and roofs, lighting fixtures, office filing cabinets, cookware, and sign stock material. (Part 63, Subpart SSSS)    ct.    Emission standards for hazardous air pollutants for leather finishing operations.This standard applies to a new or existing leather finishing operation that is a major source of hazardous air pollutants (HAPs) emissions or that is located at, or is part of, a major source of HAP emissions. In general, a leather finishing operation is a single process or group of processes used to adjust and improve the physical and aesthetic characteristics of the leather surface through multistage application of a coating comprised of dyes, pigments, film-forming materials, and performance modifiers dissolved or suspended in liquid carriers. (Part 63, Subpart TTTT)    cu.    Emission standards for hazardous air pollutants for cellulose products manufacturing.This standard applies to a new or existing cellulose products manufacturing operation that is located at a major source of HAP emissions. Cellulose products manufacturing includes both the miscellaneous viscose processes source category and the cellulose ethers production source category. (Part 63, Subpart UUUU)    cv.    Emission standards for hazardous air pollutants for boat manufacturing.(Part 63, Subpart VVVV)    cw.    Emission standards for hazardous air pollutants: reinforced plastic composites production.This standard applies to a new or an existing reinforced plastic composites production facility that is located at a major source of HAP emissions. (Part 63, Subpart WWWW)    cx.    Emission standards for hazardous air pollutants: rubber tire manufacturing.This standard applies to a rubber tire manufacturing facility that is located at, or is a part of, a major source of hazardous air pollutant (HAP) emissions. Rubber tire manufacturing includes the production of rubber tires and/or the production of components integral to rubber tires, the production of tire cord, and the application of puncture sealant. (Part 63, Subpart XXXX)    cy.    Emission standards for hazardous air pollutants for stationary combustion turbines.These standards apply to stationary combustion turbines which are located at a major source of hazardous air pollutant emissions. Several subcategories have been defined within the stationary combustion turbine source category. Each subcategory has distinct requirements as specified in the standards. These standards do not apply to stationary combustion turbines located at an area source of hazardous air pollutant emissions. (Part 63, Subpart YYYY)    cz.    Emission standards for stationary reciprocating internal combustion engines.These standards apply to new and existing major sources and to new and existing area sources with stationary reciprocating internal combustion engines (RICE). For purposes of these standards, stationary RICE means any reciprocating internal combustion engine which uses reciprocating motion to convert heat energy into mechanical work and which is not mobile. (Part 63, Subpart ZZZZ, as amended through January 30, 2013)    da.    Emission standards for hazardous air pollutants for lime manufacturing plants.These standards regulate hazardous air pollutant emissions from new and existing lime manufacturing plants that are major sources, are colocated with major sources, or are part of major sources. Additional applicability criteria and exemptions from these standards may apply. (Part 63, Subpart AAAAA)    db.    Emission standards for hazardous air pollutants: semiconductor manufacturing.These standards apply to new and existing major sources with semiconductor manufacturing. (Part 63, Subpart BBBBB)    dc.    Emission standards for hazardous air pollutants for coke ovens: pushing, quenching, and battery stacks.This standard applies to a new or existing coke oven battery at a plant that is a major source of HAP emissions. (Part 63, Subpart CCCCC)    dd.    Emission standards for industrial, commercial and institutional boilers and process heaters.These standards apply to new and existing major sources with industrial, commercial or institutional boilers and process heaters. (Part 63, Subpart DDDDD)**As of April 15, 2009, the adoption by reference of Part 63, Subpart DDDDD, is rescinded. On July 30, 2007, the United States Court of Appeals for the District of Columbia Circuit issued its mandate vacating 40 CFR Part 63, Subpart DDDDD, in its entirety, and requiring EPA to repromulgate final standards for industrial, commercial or institutional boilers and process heaters at new and existing major sources.    de.    Emission standards for hazardous air pollutants for iron and steel foundaries.These standards apply to each new or existing iron and steel foundary that is a major source of hazardous air pollutant emissions. A new affected source is an iron and steel foundary for which construction or reconstruction began after December 23, 2002. An existing affected source is an iron and steel foundary for which construction or reconstruction began on or before December 23, 2002. (Part 63, Subpart EEEEE)    df.    Emission standards for hazardous air pollutants for integrated iron and steel manufacturing.These standards apply to affected sources at an integrated iron and steel manufacturing facility that is, or is part of, a major source of hazardous air pollutant emissions. The affected sources are each new or existing sinter plant, blast furnace, and basic oxygen process furnace (BOPF) shop at an integrated iron and steel manufacturing facility that is, or is part of, a major source of hazardous air pollutant emissions. (Part 63, Subpart FFFFF)    dg.    Emission standards for hazardous air pollutants: site remediation.These standards apply to new and existing major sources with certain types of site remediation activity on the source’s property or on a contiguous property. These standards control hazardous air pollutant (HAP) emissions at major sources where remediation technologies and practices are used at the site to clean up contaminated environmental media (e.g., soil, groundwater, or surface water) or certain stored or disposed materials that pose a reasonable potential threat to contaminate environmental media.Some site remediations already regulated by rules established under the Comprehensive Environmental Response and Compensation Liability Act (CERCLA) or the Resource Conservation and Recovery Act (RCRA) are not subject to these standards, as specified in Subpart GGGGG. There are also exemptions for short-term remediation and for certain leaking underground storage tanks, as specified in Subpart GGGGG. (Part 63, Subpart GGGGG)    dh.    Emission standards for hazardous air pollutants for miscellaneous coating manufacturing.These standards establish emission limits and work practice requirements for new and existing miscellaneous coating manufacturing operations, including, but not limited to, process vessels, storage tanks, wastewater, transfer operations, equipment leaks, and heat exchange systems. (Part 63, Subpart HHHHH)    di.    Emission standards for mercury emissions from mercury cell chlor-alkali plants.These standards apply to the chlorine production source category. This source category contains the mercury cell chlor-alkali plant subcategory and includes all plants engaged in the manufacture of chlorine and caustic in mercury cells. These standards define two affected sources: mercury cell chlor-alkali production facilities and mercury recovery facilities. (Part 63, Subpart IIIII)    dj.    Emission standards for hazardous air pollutants for brick and structural clay products manufacturing.These standards apply to new and existing brick and structural clay products manufacturing facilities that are, are located at, or are part of a major source of hazardous air pollutant emissions. (Part 63, Subpart JJJJJ)**As of April 15, 2009, the adoption by reference of Part 63, Subpart JJJJJ, is rescinded. On June 18, 2007, the United States Court of Appeals for the District of Columbia Circuit issued its mandate vacating 40 CFR Part 63, Subpart JJJJJ, in its entirety, and requiring EPA to repromulgate final standards for brick and structural clay products manufacturing at new and existing major sources.    dk.    Emission standards for hazardous air pollutants for clay ceramics manufacturing.These standards apply to clay ceramics manufacturing facilities that are, are located at, or are part of a major source of hazardous air pollutant emissions. The clay ceramics manufacturing source category includes those facilities that manufacture pressed floor tile, pressed wall tile, and other pressed tile; or sanitaryware, such as toilets and sinks. (Part 63, Subpart KKKKK)    dl.    Emission standards for hazardous air pollutants: asphalt processing and asphalt roofing manufacturing.This standard applies to an existing or new asphalt processing or asphalt roofing manufacturing facility that is a major source of hazardous air pollutants (HAPs) emissions, or is located at, or is part of a major source of HAP emissions. (Part 63, Subpart LLLLL)    dm.    Emission standards for hazardous air pollutants: flexible polyurethane foam fabrication operations.This standard applies to a new or existing source at a flexible polyurethane foam fabrication facility. The standard defines two affected sources (units or collections of units to which a given standard or limit applies) corresponding to the two subcategories, loop slitter adhesive use or flame lamination. (Part 63, Subpart MMMMM)    dn.    Emission standards for hazardous air pollutants: hydrochloric acid production.This standard applies to a new or existing HCl production facility that produces a liquid HCl product at a concentration of 30 weight percent or greater during its normal operations and is located at, or is part of, a major source of HAP. This does not include HCl production facilities that only occasionally produce liquid HCl product at a concentration of 30 weight percent or greater. (Part 63, Subpart NNNNN)    do.    Reserved.    dp.    Emission standards for hazardous air pollutants: engine test cells/stands.This standard applies to an engine test cell/stand that is located at a major source of HAP emissions. An engine test cell/stand is any apparatus used for testing uninstalled stationary or uninstalled mobile engines. (Part 63, Subpart PPPPP)    dq.    Emission standards for hazardous air pollutants for friction materials manufacturing facilities.This standard applies to a new or existing friction materials manufacturing facility that is (or is part of) a major source of hazardous air pollutants (HAPs) emissions. Friction materials manufacturing facilities produce friction materials for use in brake and clutch assemblies. (Part 63, Subpart QQQQQ)    dr.    Emission standards for hazardous air pollutants: taconite iron ore processing.Rescinded IAB 3/18/15, effective 4/22/15.    ds.    Emission standards for hazardous air pollutants for refractory products manufacturing.This standard applies to a new or existing refractory products manufacturing facility that is, is located at, or is part of, a major source of hazardous air pollutant (HAP) emissions. (Part 63, Subpart SSSSS)    dt.    Emission standards for hazardous air pollutants: primary magnesium refining.Rescinded IAB 3/18/15, effective 4/22/15.    du.    and dv. Reserved.    dw.    Emission standards for hazardous air pollutants for hospital ethylene oxide sterilizer area sources.This standard applies to a hospital that is an area source for hazardous air pollutant emissions and that owns or operates a new or existing ethylene oxide sterilization facility. (Part 63, Subpart WWWWW)    dx.    Reserved.    dy.    Emission standards for hazardous air pollutants for electric arc furnace steelmaking area sources.This standard applies to new or existing electric arc furnace (EAF) steelmaking facilities that are area sources for hazardous air pollutant emissions. (Part 63, Subpart YYYYY)    dz.    Emission standards for hazardous air pollutants for iron and steel foundry area sources.This standard applies to new or existing iron and steel foundries that are area sources for hazardous air pollutant emissions. (Part 63, Subpart ZZZZZ)    ea.    Reserved.    eb.    Emission standards for hazardous air pollutants for gasoline distribution area sources: bulk terminals, bulk plants and pipeline facilities.This standard applies to new and existing bulk gasoline terminals, pipeline breakout stations, pipeline pumping stations and bulk gasoline plants that are area sources for hazardous air pollutant emissions. (Part 63, Subpart BBBBBB)    ec.    Emmission standards for hazardous air pollutants for area sources: gasoline dispensing facilities.This standard applies to new and existing gasoline dispensing facilities (GDF) that are area sources for hazardous air pollutant emissions. The affected equipment includes each gasoline cargo tank during delivery of product to GDF and also includes each storage tank. The equipment used for refueling of motor vehicles is not covered under these standards. (Part 63, Subpart CCCCCC)    ed.    to eg. Reserved.    eh.    Emission standards for hazardous air pollutants for area sources: paint stripping and miscellaneous surface coating operations.This standard applies to new or existing area sources of hazardous air pollutant emissions that engage in any of the following activities: (1) paint stripping operations that use methylene chloride (MeCl)-containing paint stripping formulations; (2) spray application of coatings to motor vehicles or mobile equipment; or (3) spray application of coatings to plastic or metal substrate with coatings that contain compounds of chromium (Cr), lead (Pb), manganese (Mn), nickel (Ni) or cadmium (Cd). (Part 63, Subpart HHHHHH)    ei.    to ek. Reserved.    el.    Emission standards for hazardous air pollutants for acrylic and modacrylic fibers production area sources.This standard applies to acrylic and modacrylic fibers production plants that are area sources for hazardous air pollutant emissions. (Part 63, Subpart LLLLLL)    em.    Emission standards for hazardous air pollutants for carbon black production area sources.This standard applies to carbon black production plants that are area sources for hazardous air pollutants. (Part 63, Subpart MMMMMM)    en.    Emission standards for hazardous air pollutants for chemical manufacturing of chromium compounds area sources.This standard applies to plants that produce chromium compounds and are area sources for hazardous air pollutants. (Part 63, Subpart NNNNNN)    eo.    Emission standards for hazardous air pollutants for flexible polyurethane foam production and fabrication area sources.This standard applies to plants that produce flexible polyurethane foam or rebond foam, and plants that fabricate polyurethane foam, that are area sources for hazardous air pollutants. This standard applies to both new and existing area sources. An affected source is existing if construction or reconstruction commenced on or before April 4, 2007. An affected source is new if construction or reconstruction commenced after April 4, 2007. (Part 63, Subpart OOOOOO)    ep.    Emission standards for hazardous air pollutants for lead acid battery manufacturing area sources.This standard applies to lead acid battery manufacturing plants that are area sources for hazardous air pollutants. Affected sources include all grid casting facilities, paste mixing facilities, three-process operation facilities, lead oxide manufacturing facilities, lead reclamation facilities, and any other lead-emitting operation that is associated with a lead acid battery manufacturing plant. This standard applies to both new and existing area sources. An affected source is existing if construction or reconstruction commenced on or before April 4, 2007. An affected source is new if construction or reconstruction commenced after April 4, 2007. (Part 63, Subpart PPPPPP)    eq.    Emission standards for hazardous air pollutants for wood preserving area sources.This standard applies to wood preserving operations that are area sources for hazardous air pollutants. This standard applies to both new and existing area sources. An affected source is existing if construction or reconstruction commenced on or before April 4, 2007. An affected source is new if construction or reconstruction commenced after April 4, 2007. (Part 63, Subpart QQQQQQ)    er.    Emission standards for hazardous air pollutants for clay ceramics manufacturing area sources.This standard applies to any new or existing clay ceramics manufacturing facility with an atomized glaze spray booth or kiln that fires glazed ceramic ware, that processes more than 50 tons per year of wet clay, and that is an area source for hazardous air pollutant emissions. (Part 63, Subpart RRRRRR)    es.    Emission standards for hazardous air pollutants for glass manufacturing area sources.This standard applies to any new or existing glass manufacturing facility that is an area source for hazardous air pollutant emissions and meets the following criteria: (1) manufactures flat glass, glass containers or pressed and blown glass by melting a mixture of raw materials to produce molten glass and form the molten glass into sheets, containers or other shapes; and (2) uses one or more continuous furnaces to produce glass at a rate of at least 50 tons per year and that contains compounds of one or more “glass manufacturing metal HAP,” as defined in 40 CFR 63.11459, as raw materials in a glass manufacturing batch formulation. (Part 63, Subpart SSSSSS)    et.    Emissions standards for hazardous air pollutants for secondary nonferrous metals processing area sources.This standard applies to any new or existing secondary nonferrous metals processing facility that is an area source for hazardous air pollutant emissions. This standard applies to all crushing and screening operations at a secondary zinc processing facility and to all furnace melting operations located at any secondary nonferrous metals processing facility. (Part 63, Subpart TTTTTT)    eu.    Reserved.    ev.    Emission standards for hazardous air pollutants for area sources: chemical manufacturing.This standard applies to chemical manufacturing at new and existing facilities that are area sources for hazardous air pollutant emissions. (Part 63, Subpart VVVVVV)    ew.    Emission standards for hazardous air pollutants for area sources: plating and polishing.This standard applies to plating and polishing activities at new and existing facilities that are area sources for hazardous air pollutant emissions. (Part 63, Subpart WWWWWW)    ex.    Emission standards for hazardous air pollutants for area sources: metal fabrication and finishing.This standard applies to new and existing facilities in which the primary activity or activities at the facility are metal fabrication and finishing and that are area sources for hazardous air pollutant emissions. (Part 63, Subpart XXXXXX)    ey.    Reserved.    ez.    Emission standards for hazardous air pollutants for area sources: aluminum, copper, and other nonferrous foundries.This standard applies to aluminum, copper, and other nonferrous foundries at new and existing facilities that are area sources for hazardous air pollutant emissions. (Part 63, Subpart ZZZZZZ)    fa.    and fb. Reserved.    fc.    Emission standards for hazardous air pollutants for area sources: paint and allied products manufacturing.This standard applies to paint and allied products manufacturing at new and existing facilities that are area sources for hazardous air pollutant emissions. (Part 63, Subpart CCCCCCC)    fd.    Emission standards for hazardous air pollutants for area sources: prepared feeds manufacturing.This standard applies to prepared feeds manufacturing that produces animal feed products (not including feed for cats or dogs) and uses chromium or manganese compounds at new and existing facilities that are area sources for hazardous air pollutant emissions. (Part 63, Subpart DDDDDDD)

        ITEM 23.    Amend numbered paragraph 23.1(5)“a”(3)“1” as follows:
    1. MSW landfill emissions at each MSW landfill meeting the conditions below shall be controlled. A design capacity report must be submitted to the director by November 18, 1997.
    The landfill has accepted waste at any time since November 8, 1987, or has additional design capacity available for future waste deposition.The landfill has a design capacity greater than or equal to 2.5 million megagrams orand 2.5 million cubic meters. The landfill may calculate design capacity in either megagrams or cubic meters for comparison with the exemption values. Any density conversions shall be documented and submitted with the report. All calculations used to determine the maximum design capacity must be included in the design capacity report.The landfill has a nonmethane organic compound (NMOC) emission rate of 50 megagrams per year or more. If the MSW landfill’s design capacity exceeds the established thresholds in 23.1(5)“a”(3)“1,” the NMOC emission rate calculations must be provided with the design capacity report.

        ITEM 24.    Amend subrule 23.3(1) as follows:    23.3(1) General.  The emission standards contained in this rule shall apply to each source operation unless a specific emissionperformance standard for the process involved is prescribed elsewhere in this chapteris specified in subrule 23.1(2), in which case the specificperformance standard shall apply.

        ITEM 25.    Amend subrule 25.1(9) as follows:    25.1(9) Methods and procedures.  Stack sampling and associated analytical methods used to evaluate compliance with emission limitations of 567—Chapter 23 or a permit condition are as follows:    a.    Performance test (stack test).A stack test shall be conducted according to EPA reference methods as specified in 40 CFR 51, Appendix M (as amended through December 21, 2010April 2, 2014); 40 CFR 60, Appendix A (as amended through September 9, 2010February 27, 2014); 40 CFR 61, Appendix B (as amended through October 17, 2000February 27, 2014); and 40 CFR 63, Appendix A (as amended through August 20, 2010February 27, 2014). The owner of the equipment or the owner’s authorized agent may use an alternative methodology ifthe methodology is approved by the department in writing before testing. Each test shall consist of at least three separate test runs. Unless otherwise specified by the department, compliance shall be assessed on the basis of the arithmetic mean of the emissions measured in the three test runs.    b.    Continuous monitoring systems.Minimum performance specifications and quality assurance procedures for performance evaluations of continuous monitoring systems are as specified in 40 CFR 60, Appendix B (as amended through September 9, 2010February 27, 2014); 40 CFR 60, Appendix F (as amended through September 9, 2010February 27, 2014); 40 CFR 75, Appendix A (as amended through March 28, 2011January 18, 2012); 40 CFR 75, Appendix B (as amended through March 28, 2011); and 40 CFR 75, Appendix F (as amended through March 28, 2011January 18, 2012). The owner of the equipment or the owner’s authorized agent may use an alternative methodology for continuous monitoring systems ifthe methodology is approved by the department in writing prior to conductingbefore the minimum performance specification and quality assurance proceduresprocedure is conducted.    c.    Permit and compliance demonstration requirements.After October 24, 2012, all stack sampling and associated analytical methods used to evaluate compliance with emission limitations of 567—Chapter 23 or required in a permit issued by the department pursuant to 567—Chapter 22 or 33 shall be conducted using the methodology referenced in this rule. If stack sampling was required for a compliance demonstration pursuant to 567—Chapter 23 or for a performance test required in a permit issued by the department pursuant to 567—Chapter 22 or 33 before October 24, 2012, and the demonstration or test was not required to be completed before October 24, 2012, then the methodology referenced in this subrule applies retroactively.

        ITEM 26.    Amend rule 567—25.2(455B) as follows:

    567—25.2(455B) Continuous emission monitoring under the acid rain program.  The continuous emission monitoring requirements for affected units under the acid rain program as provided in 40 CFR Part 75, including Appendices A, B, F and K as amended through January 24, 2008 (Appendix F also was corrected on February 13, 2008)January 18, 2012, are adopted by reference.

        ITEM 27.    Amend subrule 26.2(2) as follows:    26.2(2)  Declaration.  In making determinations for the declaration of an air pollution episode condition, the commission, or the director will be guided by the criteria stated in the following paragraphs.    a.    Air pollution alert.An alert will be declared when any one of the following levels is reached at any monitoring site, and when meteorological conditions are such that the contaminant concentrations can be expected to remain at those levels for 12 or more hours, or increase, unless control actions are taken.    (1)   Sulfur dioxide—800 micrograms per cubic meter (0.3 ppm), 24-hour average.    (2)   Fine particulateParticulate matter (PM-10PM10)—350 micrograms per cubic meter, 24-hour average.    (3)   Carbon monoxide—17 milligrams per cubic meter (15 ppm), eight-hour average.    (4)   Oxidants (ozone)—200 micrograms per cubic meter (0.1 ppm)Ozone—400 micrograms per cubic meter (0.2 ppm), one-hour average.    (5)   Nitrogen dioxide—1,130 micrograms per cubic meter (0.6 ppm), one-hour average, or 282 micrograms per cubic meter (0.15 ppm), 24-hour average.    b.    Air pollution warning.A warning will be declared when any one of the following levels is reached at any monitoring site and when meteorological conditions are such that the contaminant concentrations can be expected to remain at those levels for 12 or more hours or increase, unless control actions are taken.    (1)   Sulfur dioxide—1,600 micrograms per cubic meter (0.6 ppm), 24-hour average.    (2)   Fine particulateParticulate matter (PM-10PM10)—420 micrograms per cubic meter, 24-hour average.    (3)   Carbon monoxide—34 milligrams per cubic meter (30 ppm), eight-hour average.    (4)   Oxidants (ozone)Ozone—800 micrograms per cubic meter (0.4 ppm), one-hour average.    (5)   Nitrogen dioxide—2,260 micrograms per cubic meter (1.2 ppm), one-hour average, or 565 micrograms per cubic meter (0.3 ppm), 24-hour average.    c.    Air pollution emergency.An emergency will be declared when any one of the following levels is reached at any monitoring site, and when meteorological conditions are such that this condition can be expected to continue for 12 or more hours.    (1)   Sulfur dioxide—2,100 micrograms per cubic meter (0.8 ppm), 24-hour average.    (2)   Fine particulateParticulate matter (PM-10PM10)—500 micrograms per cubic meter, 24-hour average.    (3)   Carbon monoxide—46 milligrams per cubic meter (40 ppm), eight-hour average.    (4)   Oxidants (ozone)—1,200 micrograms per cubic meter (0.6 ppm)Ozone—1,000 micrograms per cubic meter (0.5 ppm), one-hour average.    (5)   Nitrogen dioxide—3,000 micrograms per cubic meter (1.6 ppm), one-hour average or 750 micrograms per cubic meter (0.4 ppm), 24-hour average.    d.    Termination.Once declared, any status reached by application of these criteria will remain in effect until the criteria for that level are no longer met. As meteorological factors and air contaminants change, an appropriate change in episode level will be declared.

        ITEM 28.    Amend rule 567—27.1(455B) as follows:

    567—27.1(455B) General.      27.1(1)  Purpose.  Political subdivisions shall meet the conditions specified in this chapter if they intend to secure acceptance of the local air pollution control program and to obtain a certificate of acceptance from the director, as provided in Iowa Code section 455B.145.    27.1(2)  Limitation.  When a certificate of acceptance is issued to a political subdivision, the director retains authority to take emergency action as provided in Iowa Code section 455B.145455B.139.       This rule is intended to implement Iowa Code sections 455B.133, 455B.134, 455B.139, and 455B.143.

        ITEM 29.    Amend paragraph 27.3(4)"c" as follows:    c.    VariancesProcedures for granting variances or extensions of time to attain compliance status.A procedure for granting variances or extensions of time to attain compliance status, providing that the authority to grant such variance or extension of time shall not be allocated to any administrative officer of the local control agency.The local control agency shall maintain on file a record of the names, addresses, sources of emissions, types of emissions, rates of emissions, reason for granting, conditions and length of time specified, relating to all variances or extension of time granted; and shall make such records available to the commission or the department upon request.

        ITEM 30.    Amend rule 567—28.1(455B) as follows:

    567—28.1(455B) Statewide standards.  The state of Iowa ambient air quality standards shall be the National Primary and Secondary Ambient Air Quality Standards as published in 40 Code of Federal Regulations Part 50 (1972) and as amended at 38 Federal Register 22384 (September 14, 1973), 43 Federal Register 46258 (October 5, 1978), 44 Federal Register 8202, 8220 (February 9, 1979), 52 Federal Register 24634-24669 (July 1, 1987), 62 Federal Register 38651-38760, 38855-38896 (July 18, 1997), 71 Federal Register 61144-61233 (October 17, 2006), 73 Federal Register 16436-16514 (March 27, 2008), 73 Federal Register 66964-67062 (November 12, 2008), 75 Federal Register 6474-6537 (February 9, 2010), and 75 Federal Register 35520-35603 (June 22, 2010), and 78 Federal Register 3086-3287 (January 15, 2013). The department shall implement these rules in a time frame and schedule consistent with implementation schedules in federal laws and regulations.       This rule is intended to implement Iowa Code section 455B.133.

        ITEM 31.    Rescind and reserve rule 567—31.2(455B).

        ITEM 32.    Amend rule 567—33.1(455B), introductory paragraph, as follows:

    567—33.1(455B) Purpose.  This chapter implements the major New Source Review (NSR) program contained in Part C of Title I of the federal Clean Air Act as amended on November 15, 1990, and as promulgated under 40 CFR 51.166 and 52.21 as amended through July 20, 2011August 19, 2015. This is a preconstruction review and permitting program applicable to new or modified major stationary sources of air pollutants regulated under Part C of the Clean Air Act as amended on November 15, 1990. In areas that do not meet the national ambient air quality standards (NAAQS), the nonattainment major program applies. The requirements for the nonattainment major NSR program are set forth in 567—22.5(455B), 567—22.6(455B), 567—31.20(455), and 567—31.3(455B). In areas that meet the NAAQS, the PSD program applies. Collectively, the nonattainment major and PSD programs are referred to as the major NSR program. An owner or operator required to apply for a construction permit under 567—Chapter 33 shall submit fees as required in 567—Chapter 30.

        ITEM 33.    Amend subrule 33.3(1), definition of “Subject to regulation,” as follows:        "Subject to regulation" means, for any air pollutant, that the pollutant is subject to either a provision in the Clean Air Act, or a nationally applicable regulation codified by the Administrator in 40 CFR Subchapter C (Air Programs) that requires actual control of the quantity of emissions of that pollutant, and that such a control requirement has taken effect and is operative to control, limit or restrict the quantity of emissions of that pollutant released from the regulated activity, except that:
    1. Greenhouse gases (GHGs), the air pollutant defined in 40 CFR §86.1818-12(a) (as amended through September 15, 2011) as the aggregate group of six greenhouse gases that includes carbon dioxide, nitrous oxide, methane, hydrofluorocarbons, perfluorocarbons, and sulfur hexafluoride, shall not be subject to regulation except as provided in paragraphs “4” and “5,”paragraph “4,” and shall not be subject to regulation if the stationary source maintains its total sourcewide emissions below the GHG PAL level, meets the requirements in rule 567—33.9(455B), and complies with the PAL permit containing the GHG PAL.
    2. For purposes of paragraphs “3,” “4,” and “5,”“3” and “4,” the term “tpy CO 2 equivalent emissions (CO 2 e)” shall represent an amount of GHGs emitted and shall be computed as follows:
      1. Multiply the mass amount of emissions (tpy) for each of the six greenhouse gases in the pollutant GHGs by the associated global warming potential of the gas published at 40 CFR Part 98, Subpart A, Table A-1, “Global Warming Potentials,” (as amended on October 30, 2009through December 24, 2014). For purposes of this definition, prior to July 21, 2014, the mass of the greenhouse gas carbon dioxide shall not include carbon dioxide emissions resulting from the combustion or decomposition of non-fossilized and biodegradable organic material originating from plants, animals, or micro-organisms (including products, by-products, residues and waste from agriculture, forestry and related industries as well as the non-fossilized and biodegradable organic fractions of industrial and municipal wastes, including gases and liquids recovered from the decomposition of non-fossilized and biodegradable organic material).
      2. Sum the resultant value from paragraph (a) for each gas to compute a tpy CO 2 e.
    3. The term “emissions increase,” as used in this paragraph and in paragraphs “4” and “5,”paragraph “4,” shall mean that both a significant emissions increase (as calculated using the procedures specified in 33.3(2)“c” through 33.3(2)“h”) and a significant net emissions increase (as specified in 33.3(1), in the definitions of “net emissions increase” and “significant”) occur. For the pollutant GHGs, an emissions increase shall be based on tpy CO 2 e and shall be calculated assuming the pollutant GHGs are a regulated NSR pollutant, and “significant” is defined as 75,000 tpy CO 2 e rather than calculated by applying the value specified in 33.3(1), in paragraph “2” of the definition of “significant.”
    4. Beginning January 2, 2011, the pollutant GHGs are subject to regulation if:
      1. The stationary source is a new major stationary source for a regulated NSR pollutant that is not a GHG, and also will emit or will have the potential to emit 75,000 tpy CO 2 e or more, or
      2. The stationary source is an existing major stationary source for a regulated NSR pollutant that is not a GHG, and also will have an emissions increase of a regulated NSR pollutant and an emissions increase of 75,000 tpy CO 2 e or more; and.
    5. Beginning July 1, 2011, in addition to the provisions in paragraph “4,” the pollutant GHGs shall also be subject to regulation:
      1. At a new stationary source that will emit or have the potential to emit 100,000 tpy CO 2 e, or
      2. At an existing stationary source that emits or has the potential to emit 100,000 tpy CO 2 2e, when such stationary source undertakes a physical change or change in the method of operation that will result in an emissions increase of 75,000 tpy CO 2 e or more.

        ITEM 34.    Amend subrule 33.3(9) as follows:    33.3(9) Exemptions.  The provisions for allowing exemptions from certain requirements for PSD-subject sources as specified in 40 CFR 52.21(i) as amended through October 20, 2010March 6, 2015, are adopted by reference.

        ITEM 35.    Amend subrule 33.3(11) as follows:    33.3(11) Source impact analysis.  The provisions for a source impact analysis as specified in 40 CFR 52.21(k) as amended through October 20, 2010December 9, 2013, are adopted by reference.

        ITEM 36.    Amend subrule 33.3(20) as follows:    33.3(20) Conditions for permit issuance.  Except as explained below, a permit may not be issued to any new “major stationary source” or “major modification” as defined in subrule 33.3(1) that would locate in any area designated as attainment or unclassifiable for any national ambient air quality standard pursuant to Section 107 of the Act, when the source or modification would cause or contribute to a violation of any national ambient air quality standard. A major stationary source or major modification will be considered to cause or contribute to a violation of a national ambient air quality standard when such source or modification would, at a minimum, exceed the following significance levels at any locality that does not or would not meet the applicable national standard:Significant Impact Levels (SILs)Averaging TimeAnnual24 hrs.8 hrs.3 hrs.1 hr.Pollutant(μg/m3)(μg/m3)(μg/m3)(μg/m3)(μg/m3)SO21.05———25———PM101.05—————————PM2.50.31.2—————————NO21.0————————————CO——————500———2000A permit may be granted to a major stationary source or major modification as identified above if the major stationary source or major modification reduces the impact of its emissions upon air quality by obtaining sufficient emissions reductions to compensate for its adverse ambient air impact where the major stationary source or major modification would otherwise contribute to a violation of any national ambient air quality standard. This subrule shall not apply to a major stationary source or major modification with respect to a particular pollutant if the owner or operator demonstrates that the source is located in an area designated under Section 107 of the Act as nonattainment for that pollutant.

        ITEM 37.    Amend subrule 33.3(22) as follows:    33.3(22) Permit rescission.  Any permit issued under 40 CFR 52.21 or this chapter or any permit issued under rule 567—22.4(455B) shall remain in effect unless and until it is rescinded. The department will consider requests for rescission that meet the conditions specified under paragraphs “a” and “b” of this subrule. If the department rescinds a permit or a condition in a permit issued under 40 CFR 52.21, this chapter, or rule 567—22.4(455B), the public shall be given adequate notice of the proposed rescission. Publication of an announcement of rescission in a newspaper of general circulation in the affected region 60 days prior to the proposed date for rescission shall be considered adequate notice.    a.    The department may rescind a permit or a portion of a permit upon request from an owner or operator of a stationary source who holds a permit for a source or modification that was issued under 40 CFR 52.21 as in effect on July 30, 1987, or earlier, provided the application also meets the provisions in paragraph “b” of this subrule.issued:    (1)   Under 40 CFR 52.21 as in effect on July 30, 1987, or earlier, provided the application also meets the provisions in paragraph 33.3(22)“b”;    (2)   Under this chapter between July 1, 2011, and July 6, 2015, to a source that was classified as a major stationary source under subrule 33.3(1) solely on the basis of potential emissions of greenhouse gases; or    (3)   Under this chapter between July 1, 2011, and July 6, 2015, for a modification that was classified as a major modification under subrule 33.3(1) solely on the basis of an increase in emissions of greenhouse gases.    b.    If the application for rescission meets the provisions in paragraph “a” of this subrule, the department may rescind a permit if the owner or operator shows that the PSD provisions under 40 CFR 52.21or this chapter would not apply to the source or modification.    [Filed 1/19/17, effective 3/22/17][Published 2/15/17]Editor’s Note: For replacement pages for IAC, see IAC Supplement 2/15/17.
    ARC 2950CMedicine Board[653]Adopted and Filed

        Pursuant to the authority of Iowa Code section 147.76, the Board of Medicine hereby amends Chapter 17, “Licensure of Acupuncturists,” Iowa Administrative Code.    The purpose of Chapter 17 is to establish licensure requirements and practice standards for acupuncturists. These amendments update requirements for licensure, renewal and reinstatement; identify diagnostic and treatment modalities performed by acupuncturists; provide definitions of additional terms associated with acupunctural services; recognize a licensee’s maintenance of certification by the National Certification Commission for Acupuncture and Oriental Medicine (NCCAOM) to satisfy continuing education requirements established in Iowa Code section 272C.2; revise requirements for the display, distribution and retention of a disclosure sheet which contains information for patients; establish requirements for the delegation of certain aspects of treatment; and establish a requirement that licensees report changes in their full legal names and provide a personal e-mail address for correspondence between the Board and the licensee or an applicant for a license.    The Board approved the Notice of Intended Action during a regularly scheduled meeting on October 28, 2016. The Notice was published as ARC 2860C in the Iowa Administrative Bulletin on December 7, 2016. A public hearing on ARC 2860C was held on December 27, 2016.    The Board received written comments from Leah J. McWilliams, Iowa Osteopathic Medical Association, and William Terrell, Iowa Association of Oriental Medicine and Acupuncture. Several changes from the Notice were made based on the comments received:    Changes were made to the definitions in rule 653—17.3(148E). The definition of “‘Licensed acupuncturist’ or ‘licensee’” was amended to refer only to “licensee” and to replace the word “granted” with the word “issued” to be consistent with other language in Chapter 17. The definition of “Professional development activity (PDA)” was stricken to reflect additional changes in rule 653—17.9(148E), continuing education requirements, to recognize a licensee’s maintenance of certification by the NCCAOM to satisfy continuing education requirements established in Iowa Code section 272C.2.    In paragraph “b” of subrule 17.5(1), a citation to paragraph 8.2(2)“a” was added to identify the Board’s administrative rules on fees.     In paragraph “a” of subrule 17.5(2), the phrase “and personal e-mail address regularly used by the applicant or licensee for correspondence with the board” was added to acknowledge the Board’s requirement of an e-mail address.    In paragraph “a” of subrule 17.5(4), the period for requesting reactivation of a license application was changed from 90 days to 30 days.    In rule 653—17.7(148E), which pertains to biennial renewal of a license, the phrase “of even-numbered years” was added to identify the Board’s renewal cycle for all licensees in this chapter. A citation to paragraph 8.2(2)“c” was added to identify the Board’s administrative rule on fees, and a change was made to clarify the Board’s requirement of what is acceptable proof of active NCCAOM diplomate status.    In subparagraph 17.8(1)“a”(1), the requirement was added for a personal e-mail address of the applicant for reinstatement of an active license.    In paragraph 17.8(1)“d,” the applicant for reinstatement of an active license must now provide an NCCAOM certificate to demonstrate current active status as a diplomate from NCCAOM.    Proposed paragraph 17.8(1)“e” was not adopted because the diplomate documentation is expressed in paragraph 17.8(1)“d.”     An item was added to amend rule 653—17.9(272C) to clarify that active NCCAOM certification satisfies the requirements for continuing education.    An item was added to amend renumbered subrule 17.10(5). The word “residence” was replaced with the words “contact information” in the catchwords of the subrule, and a description of that information is provided in the subrule.    In new subrule 17.10(8), a change was made to reflect the Board’s acknowledgment that other reliable information may be used in lieu of a death certificate to cause the Board to close a deceased licensee’s file.    Item 14 was added to amend subrule 17.12(10) by striking paragraph “e” to be consistent with recognition of a licensee’s maintenance of certification by the NCCAOM.    At a teleconference meeting on January 19, 2017, the Board voted to adopt and file the Noticed amendments with the afore-listed changes.     After analysis and review of this rule making, no impact on jobs in Iowa has been found.    These amendments are intended to implement Iowa Code chapters 147, 148, 148E, and 272C.    These amendments will become effective on March 22, 2017.    The following amendments are adopted.

        ITEM 1.    Amend rule 653—17.2(148E) as follows:

    653—17.2(148E) Licensure exceptionsScope of chapter.  The rules in this chapter shall only apply to individuals licensed under Iowa Code chapter 148E.In accordance with Iowa Code section 148E.3, the following rules govern those persons engaged in the practice of acupuncture notin this chapter shall not apply to the following:
    1.     A personotherwise licensed by the state to practice medicine and surgery, osteopathic medicine and surgery, chiropractic, podiatry, or dentistrywho is exclusively engaged in the practice of the person’s profession.
    2.     A student practicing acupuncture under the direct supervision of a licensed acupuncturist as part of a course of study approved by the board as one that leads to eligibility for licensure is not required to obtain a license.

        ITEM 2.    Amend rule 653—17.3(148E) as follows:

    653—17.3(148E) Definitions.          "Accreditation Commission for Acupuncture and Oriental Medicine" "ACAOM" means the United States-based accreditation commission that certifies acupuncture and oriental medicine training programs and colleges. The ACAOM oversees all professional oriental medicine and acupuncture degree programs in the United States. The ACAOM was formerly known as the National Accreditation Commission for Schools and Colleges of Acupuncture and Oriental Medicine.        "Acupuncture" means a form of health care developed from traditional and modern oriental medical concepts that employs oriental medical diagnosis and treatment, and adjunctive therapies and diagnostic techniques, for the promotion, maintenance, and restoration of health and the prevention of disease.        "Acupuncture needle" means a solid-core instrument including but not limited to acupuncture needles, dermal needles, intradermal needles, press tacks, plum blossom needles, prismatic needles, and disposable lancets.         "Acupuncture point" means a specific anatomical location on the human body that serves as the treatment site for the use of acupuncture.        "Applicant" means a person not otherwise authorized to practice acupuncture under Iowa Code section 148E.3 who applies to the board for a license.        "Ashi acupuncture point" means an acupuncture point that is located according to tenderness upon palpation. An ashi acupuncture point is also known as a trigger point.        "Board" means the board of medicine established in Iowa Code chapter 147.        "Committee" means the license and examinationlicensure committee of the board with oversight responsibility for administration of the licensure of acupuncturists.        "Department" means the Iowa department of public health.        "Disclosure sheet" means the written information licensed acupuncturists must provide to patients on initial contact.        "Disposable needles" means presterilized needles that are discarded after initial use pursuant to Iowa Code section 148E.5.        "License" means a license issued by the board pursuant to Iowa Code section 148E.2.        "Licensed acupuncturist" "licensee" “Licensee”means a person holding a license to practice acupuncture grantedissued by the board under the provisions ofpursuant to Iowa Code chapter 148E.        "NationalCertification Commission for the Certification of AcupuncturistsAcupuncture and Oriental Medicine” or “NCCAOM" means the National Certification Commission for Acupuncture and Oriental Medicine (NCCAOM)United States-based commission that validates entry-level competency in the practice of acupuncture and oriental medicine through professional certification.        "Practice of acupuncture" means the insertion of acupuncture needles and the application of moxibustion to specific areas of the human body based upon oriental medical diagnosis as a primary mode of therapy. Adjunctive therapies within the scope of acupuncture may include manual, mechanical, thermal, electrical, and electromagnetic treatment, and the recommendation of dietary guidelines and therapeutic exercise based on traditional oriental medicine concepts.        "Professional development activity (PDA)" means any activity for the purpose of continuing a person’s education that is defined and approved by NCCAOM. One PDA point equals one hour of continuing education.        "Service charge" means the amount chargedby the board for making a service available on lineonline and is in addition to the actual fee for a service itself. For example, one who renews a license on lineonline will pay the license renewal fee and a service charge.

        ITEM 3.    Amend paragraph 17.4(1)"d" as follows:    d.    Successfully complete a three-year postsecondary training program or acupuncture college program which is accredited by, in candidacy for accreditation by, or which meets the standards of, the National Accreditation Commission for Schools and Colleges of Acupuncture and Oriental Medicinethe Accreditation Commission for Acupuncture and Oriental Medicine.

        ITEM 4.    Amend rule 653—17.5(147,148E) as follows:

    653—17.5(147,148E) Application requirements.      17.5(1) Application for licensure.  To apply for a license to practice acupuncture, an applicant shall:    a.    Submit the completed application form provided by the board, including required credentials and documents, and a completed fingerprint packetand a sworn statement by the applicant attesting to the truth of all information provided by the applicant; and    b.    Pay athe nonrefundable initial application fee of $300identified in 653—paragraph 8.2(2)“a”; and    c.    Pay the fee identified in 653—paragraph 8.2(2)“f”8.2(2)“e” for the evaluation of the fingerprint packet and the DCI and FBInational criminal history background checksby the Iowa division of criminal investigation (DCI) and the Federal Bureau of Investigation (FBI).    17.5(2) Contents of the application form.  Each applicant shall submit the following information on the application form provided by the board:    a.    The applicant’sfull legal name, date and place of birth, and home address, mailing address,and principal business address, and personal e-mail address regularly used by the applicant or licensee for correspondence with the board;    b.    A photograph of the applicant suitable for positive identification;    c.    A chronology accounting for all time periods from the date the applicant entered an acupuncture and oriental medicine training program or college to the date of the application;    c.    d.    The other jurisdictions in the United States or other nations or territories in which the applicant is authorized to practice acupuncture, including license, certificate of registration or certification numbers,and date of issuance, and an explanation indicating the basis upon which authorization to practice acupuncture was received;    d.    e.    Full disclosure of the applicant’s involvement in civil litigation related to the practice of acupuncture in any jurisdiction of the United States, other nations or territories. Copies of the legal documents may be requested if needed during the review process;    e.    f.    Full disclosure of any disciplinary action taken against the applicant by, but not limited to, a regulatory authority, educational institution, or health facility in any jurisdiction of the United States, other nations or territoriesA statement disclosing and explaining any informal or nonpublic actions, warnings issued, investigations conducted, or disciplinary actions taken, whether by voluntary agreement or formal action, by a medical, acupuncture or professional regulatory authority, an educational institution, a training or research program, or a health facility in any jurisdiction;    g.    A statement disclosing and explaining any charge of a misdemeanor or felony involving the applicant filed in any jurisdiction, whether or not any appeal or other proceeding is pending to have the conviction or plea set aside;    f.    h.    The NCCAOM score report verification form submitted directly to the board by the NCCAOM;    g.    i.    An official statement from NCCAOMcertificate that demonstrates that the applicant holdscurrent active status as a diplomate inacupuncture or oriental medicine from the NCCAOM or, after June 1, 2004, an official statement from NCCAOM that the applicant holds active status as a diplomate in acupuncture or oriental medicine;    h.    j.    An official statement showingProof of successful completion of a course in clean needle technique approved by the NCCAOM;    i.    k.    A statement of the applicant’s physical and mental health, including full disclosure and a written explanation of any dysfunction or impairment which may affect the ability of the applicant to engage in the practice of acupuncture and provide patients with safe and healthful care;    j.    l.    A description of the applicant’s clinical acupuncture training, work experience and, where applicable, supporting documentation;    m.    A copy of the applicant’s acupuncture degree issued by an educational institution. If a copy of the acupuncture degree cannot be provided because of extraordinary circumstances, the board may accept other reliable evidence that the applicant obtained an acupuncture degree from a specific educational institution;    n.    A complete translation of any diploma not written in English. An official transcript, written in English and received directly from the educational institution, showing graduation from an acupuncture training program or an educational institution is a suitable alternative;    o.    A sworn statement from an official of the educational institution certifying the date the applicant received the acupuncture degree and acknowledging what, if any, derogatory comments exist in the institution’s record about the applicant. If a sworn statement from an official of the educational institution cannot be provided because of extraordinary circumstances, the board may accept other reliable evidence that the applicant obtained an acupuncture degree from a specific educational institution;    k.    p.    An official transcript sent directly from the institution of higher education or acupuncture schoolan acupuncture training program or an educational institution attended by the applicant and, if necessaryrequested by the board, an English translation of the official transcript;    l.    q.    Proof of the applicant’s proficiency in the English language, when the applicant has not passed the English version of the NCCAOM written and practical examinations;    m.    A copy of the disclosure sheet to be used in practice, as described in 17.5(3); and    n.    A completed fingerprint packet to facilitate a national criminal history background check. The fee for evaluation of the fingerprint packet and the DCI and FBI criminal history background checks will be assessed to the applicant.    r.    Verification of an applicant’s hospital and clinical staff privileges and other professional experience for the past five years if requested by the board; and    s.    A completed fingerprint packet to facilitate a national criminal history background check. The fee for evaluation of the fingerprint packet and the DCI and FBI criminal history background checks will be assessed to the applicant.    17.5(3) Disclosure sheet.  Pursuant to Iowa Code section 148E.6, applicants shall also provide a copy of the disclosure sheet to be given to each patient that includes the following information:    a.    The name, business address and business telephone number of the acupuncturist;    b.    A fee schedule;    c.    A listing of the acupuncturist’s education, experience, degrees, certificates, or other credentials related to acupuncture awarded by professional acupuncture organizations, the length of time required to obtain degrees or credentials, and experience;    d.    A statement indicating any license, certificate, or registration in a health care occupation which was revoked by any local, state, or national health care agency;    e.    A statement that the acupuncturist is complying with statutes and with rules adopted by the board, including a statement that only presterilized, disposable needles are used by the acupuncturist;    f.    A statement that the practice of acupuncture is regulated by the board; and    g.    A statement indicating that a license to practice acupuncture does not authorize a person to practice medicine and surgery in this state, and that the services of an acupuncturist must not be regarded as diagnosis and treatment by a person licensed to practice medicine and must not be regarded as medical opinion or advice.    17.5(4) Application cycle.  Applications for initial licensure shall be open for 90 days from the date the application form is received in the board’s office.If the applicant does not submit all materials, including a completed fingerprint packet, within 90 days of the board’s initial request for further information, the application shall be considered inactive. The board office shall notify the applicant of this change in status.    a.    After the 90 days, applicants shall update credentials and submit a nonrefundable reactivation of application fee of $100 unless granted an extension in writing by the committee or the board. The period for requesting reactivation of the application is limited to one year from the date the application form is received by the board.To reactivate the application, an applicant shall submit a nonrefundable reactivation of application fee identified in 653—paragraph 8.2(2)“b” and shall update application materials if requested by the board. The period for requesting reactivation is limited to 30 days from the date the applicant is notified that the application is inactive, unless the applicant is granted an extension in writing by the committee or the board.    b.    Once the application reactivation period is expired, applicants must reapply and submit a new, nonrefundable initial application fee of $300and a new application, including required documents and credentials.    17.5(5) Applicant responsibilities.  An applicant for licensure to practice acupuncture bears full responsibility for each of the following:    a.    Paying all fees charged by regulatory authorities, national testing or credentialing organizations, health facilities, and educational institutions providing the information specified in 17.5(2);    b.    Providing accurate, up-to-date, and truthful information on the application form including, but not limited to, that specified under 17.5(2) related to prior professional experience, education, training, examination scores, diplomate status, licensure or registration, and disciplinary history; and    c.    Submitting English translations of documents in foreign languages bearing the affidavit of the translator certifying that the translation is a true and complete translation of the foreign language original. The applicant shall bear the expense of the translation.    17.5(6) Licensure application review process.  The process below shall be utilized to review each application. Priority shall be given to processing a licensure application when a written request is received in the board office from an applicant whose practice will primarily involve provision of services to underserved populations, including but not limited to persons who are minorities or low-income or who live in rural areas.    a.    An application for initial licensure shall be considered open from the date the application form is received in the board office with the nonrefundable initial application fee.    b.    After reviewing each application, staff shall notify the applicant about how to resolve any problems identified by the reviewer.An applicant shall provide additional information when requested by staff or the board.    c.    If the final review indicates no questions or concerns regarding the applicant’s qualifications for licensure, staff may administratively grant the license. The staff may grant the license without having received a report on the applicant from the FBI.    d.    If the final review indicates questions or concerns that cannot be remedied by continued communication with the applicant, the executive director, the director of licensure and administration and the director of legal affairs shall determine if the questions or concerns indicate any uncertainty about the applicant’s current qualifications for licensure.    (1)   If there is no current concern, staff shall administratively grant the license.    (2)   If any concern exists, the application shall be referred to the committee.    e.    Staff shall refer to the committee for review matters which include but are not limited to: falsification of information on the application, criminal record, malpractice, substance abuse, competency, physical or mental illness, or professional disciplinary history.    f.    If the committee is able to eliminate questions or concerns without dissension from staff or a committee member, the committee may direct staff to issue the license administratively.    g.    If the committee is not able to eliminate questions or concerns without dissension from staff or a committee member, the committee shall recommend that the board:    (1)   Request an investigation;    (2)   Request that the applicant appear for an interview;    (3)   Grant a license;If an applicant has not engaged in active practice in the past three years in any jurisdiction of the United States, require an applicant to:
    1. Successfully complete continuing education or retraining programs in areas directly related to the safe and healthful practice of acupuncture deemed appropriate by the board or committee;
    2. Successfully pass a competency evaluation approved by the board;
    3. Successfully pass an examination approved by the board; or
    4. Successfully complete a reentry to practice program or monitoring program approved by the board;
        (4)   Issue a license;    (4)   (5)   GrantIssue a license under certain terms and conditions or with certain restrictions;    (5)   (6)   Request that the applicant withdraw the licensure application; or    (6)   (7)   Deny a license.
        h.    The board shall consider applications and recommendations from the committee and shall:    (1)   Request an investigation;    (2)   Request that the applicant appear for an interview;    (3)   Grant a license;If an applicant has not engaged in active practice in the past three years in any jurisdiction of the United States, require an applicant to:
    1. Successfully complete continuing education or retraining programs in areas directly related to the safe and healthful practice of acupuncture deemed appropriate by the board or committee;
    2. Successfully pass a competency evaluation approved by the board;
    3. Successfully pass an examination approved by the board; or
    4. Successfully complete a reentry to practice program or monitoring program approved by the board;
        (4)   Issue a license;    (4)   (5)   GrantIssue a license under certain terms and conditions or with certain restrictions;    (5)   (6)   Request that the applicant withdraw the licensure application; or    (6)   (7)   Deny a license. The board may deny a license for any grounds on which the board may discipline a license.
        17.5(7) Grounds for denial of licensure.  The board, on the recommendation of the committee, may deny an application for licensure for any of the following reasons:    a.    Failure to meet the requirements for licensure specified in rule 653—17.4(147,148E) as authorized by Iowa Code section 148E.2 or of this chapter of the board’s rules.    b.    Pursuant to Iowa Code section 147.4, upon any of the grounds for which licensure may be revoked or suspended as specified in Iowa Code sections 147.55 and 148E.8 or in rule 653—17.12(147,148E,272C).    17.5(8) Preliminary notice of denial.  Prior to the denial of licensure to an applicant, the board shall issue a preliminary notice of denial that shall be sent to the applicant by regular, first-class mail at the address provided by the applicant. The preliminary notice of denial is a public record and shall cite the factual and legal basis for denying the application, notify the applicant of the appeal process, and specify the date upon which the denial will become final if it is not appealed.    17.5(9) Appeal procedure.  An applicant who has received a preliminary notice of denial may appeal the denial and request a hearing on the issues related to the preliminary notice of denial by serving a request for hearing upon the executive director not more than 30 calendar days following the date when the preliminary notice of denial was mailed. The applicant’s current address shall be provided in the request for hearing. The request is deemed filed on the date it is received in the board office. If the request is received with a USPS nonmetered postmark, the board shall consider the postmark date as the date the request is filed. The request shall specify the factual or legal errors and that the applicant desires an evidentiary hearing and may provide additional written information or documents in support of licensure.    17.5(10) Hearing.  If an applicant appeals the preliminary notice of denial and requests a hearing, the hearing shall be a contested case and subsequent proceedings shall be conducted in accordance with 653—25.30(17A).    a.    License denial hearings are contested cases open to the public.    b.    Either party may request issuance of a protective order in the event privileged or confidential information is submitted into evidence.    c.    Evidence supporting the denial of the license may be presented by an assistant attorney general.    d.    While each party shall have the burden of establishing the affirmative of matters asserted, the applicant shall have the ultimate burden of persuasion as to the applicant’s qualification for licensure.    e.    The board, after a hearing on license denial, may grant or deny the application for licensure. The board shall state the reasons for its decision and may grant the license, grant the license with restrictions, or deny the license. The final decision is a public record.    f.    Judicial review of a final order of the board denying licensure, or issuing a license with restrictions, may be sought in accordance with the provisions of Iowa Code section 17A.19, which are applicable to judicial review of any agency’s final decision in a contested case.    17.5(11) Finality.  If an applicant does not appeal a preliminary notice of denial in accordance with 17.5(9), the preliminary notice of denial automatically becomes final. A final denial of an application for licensure is a public record.    17.5(12) Failure to pursue appeal.  If an applicant appeals a preliminary notice of denial in accordance with 17.5(9) but the applicant fails to pursue that appeal to a final decision within one year from the date of the preliminary notice of denial, the board may dismiss the appeal. The appeal may be dismissed only after the board sends a written notice by first-class mail to the applicant at the applicant’s last-known address. The notice shall state that the appeal will be dismissed and the preliminary notice of denial will become final if the applicant does not contact the board to schedule the appeal hearing within 30 days of the date the letter is mailed from the board office. Upon dismissal of an appeal, the preliminary notice of denial becomes final. A final denial of an application for licensure under this rule is a public record.    17.5(13) Waiver or variance prohibited.  Provisions of this rule are not subject to waiver or variance pursuant to IAC 653—Chapter 3 or any other provision of law.

        ITEM 5.    Amend rule 653—17.6(147,148E) as follows:

    653—17.6(147,148E) Display of license and disclosure of information to patients.      17.6(1) Display of license.  Licensed acupuncturists shall display the license issued by the board in a conspicuous place in their primary place of business.    17.6(2) Approval of the disclosure sheet and time limit for revisions.  Pursuant to Iowa Code section 148E.6, upon issuing a license, the board shall provide notification to the licensee of the approval or rejection of the disclosure sheet to be provided to patients on initial contact submitted subsequent to 17.5(4)“m.”    a.    If rejected, the board shall provide the licensee with a written statement explaining the reasons for rejecting the disclosure sheet submitted and indicating the necessary amendments or revisions.    b.    Upon receiving the rejection, the licensee shall submit within 14 days a revised mandatory disclosure sheet to the board for its approval.    17.(3) 17.6(2) Distribution and retention of disclosure sheet.  ThePursuant to Iowa Code section 148E.6, the licensee shall distribute thea disclosure sheet on initial contact with patients and retain a copy, signed and dated by the patient, for a period of at least five years after termination of the treatment.The disclosure sheet shall include the following:    a.    The name, business address, and business telephone number of the acupuncturist.    b.    A fee schedule.    c.    A listing of the acupuncturist’s education, experience, degrees, certificates, or credentials related to acupuncture awarded by professional acupuncture organizations and the length of time required to obtain the degrees or credentials and experience.    d.    A statement indicating any license, certificate, or registration in a health care occupation that was revoked by any local, state, or national health care agency.    e.    A statement that the acupuncturist is complying with statutes and rules adopted by the board, including a statement that only presterilized, disposable needles are used by the acupuncturist.    f.    A statement indicating that the practice of acupuncture is regulated by the board.    g.    A statement indicating that a license to practice acupuncture does not authorize a person to practice medicine and surgery in this state and that the services of an acupuncturist must not be regarded as diagnosis and treatment by a person licensed to practice medicine and must not be regarded as medical opinion or advice.

        ITEM 6.    Amend rule 653—17.7(147,148E,272C) as follows:

    653—17.7(147,148E,272C) Biennial renewal of license required.  Pursuant to Iowa Code section 148E.2, a license is renewed every two years on November 1expires on October 31 of even-numbered years and can be renewed for athe fee of $300 with documented evidence that the licensee has completed the 30 hours of continuing education required by the board. Beginning June 1, 2004, renewal shall require evidence of the licensee’sidentified in 653—paragraph 8.2(2)“c.” The applicant for renewal shall provide an NCCAOM certificate that demonstrates that the applicant holds current active status as a diplomate in acupuncture or oriental medicine fromthe NCCAOM.    17.7(1) Expiration date.  Certificates of licensure to practice acupuncture shall expire on October 31 in even years.    17.7(2) Prorated fees.  Thefirst renewal fee for a license shall be prorated on a monthly basis according to the date of issue.    17.7(3) Renewal requirements and penalties for late renewal.  Each licensee shall be sent a renewal notice at least 60 days prior to the expiration date.The licensee is responsible for renewing the license prior to its expiration. Failure of the licensee to receive the notice does not relieve the licensee of responsibility for renewing that license.    a.    Pursuant to Iowa Code section 147.10, application for renewal shall be made in writing to the board accompanied by the required fee at least 30 days prior to the expiration date.When online renewal is used, the licensee must complete the online renewal prior to midnight on December 31 in order to ensure that the license will not become inactive. The license becomes inactive and invalid at 12:01 a.m. on January 1.    b.    Upon receipt of the completed renewal application, staff shall administratively issue a license that expires on October 31 of even-numbered years. In the event the board receives adverse information on the renewal application, the board shall issue the renewal license but may refer the adverse information for further consideration.    b.    c.    Every renewal shall be displayed in connection with the original certificate of licensure.    c.    d.    AIf the licensee fails to submit the renewal application and renewal fee prior to the expiration date on the current license, a $50 penalty shall be assessed for renewal in the grace period, a period up until January 1 when the license lapsesbecomes inactive if not renewed.    17.7(4) Inactive license.  Failure of a licensee to renew by January 1 will result in invalidation of the license and the license will become inactive.    a.    Licensees are prohibited from engaging in the practice of acupuncture once the license is lapsed.    b.    Having an acupuncturist license in lapsed status does not preclude the board from taking disciplinary actions authorized in Iowa Code section 147.55 or 148E.8.

        ITEM 7.    Amend rule 653—17.8(147,272C) as follows:

    653—17.8(147,272C) Reinstatement of an inactive license.      17.8(1) Reinstatement requirements.  Licensees who allow their licenses to go inactive by failing to renew may apply for reinstatement of a license. Pursuant to Iowa Code section 147.11, applicants for reinstatement shall:    a.    Submitupon forms provided by the board a completed application for reinstatement of a license to practice acupuncture that includes. The application shall include the following information:    (1)   The applicant’sfull legal name,date and place of birth, home address, mailing address, and principal business address, and personal e-mail address regularly used by the applicant or licensee for correspondence with the board.    (2)   Full disclosure of the applicant’s involvement in civil litigation related to the practice of acupuncture in any jurisdiction of the United States, other nations or territories.Every jurisdiction in which the applicant is or has been authorized to practice, including license numbers and dates of issuance.    (3)   Full disclosure of any disciplinary action taken against the applicant by, but not limited to, a regulatory authority, educational institution, or health facility in any jurisdiction of the United States, other nations or territories.Full disclosure of the applicant’s involvement in civil litigation related to the practice of acupuncture in any jurisdiction of the United States, other nations or territories. Copies of the legal documents may be requested if needed during the review process.    (4)   A practice history for the period of the lapsed license.A statement disclosing and explaining any warnings issued, investigations conducted or disciplinary actions taken, whether by voluntary agreement or formal action, by a medical, acupuncture or professional regulatory authority, an educational institution, a training or research program, or a health facility in any jurisdiction.    (5)   A statement of the applicant’s physical and mental health, including full disclosure and a written explanation of any dysfunction or impairment which may affect the ability of the applicant to engage in practice and provide patients with safe and healthful care.    (6)   Verification of an applicant’s hospital and clinical staff privileges and other professional experience for the past five years if requested by the board.    (7)   A chronology accounting for all time periods from the date of initial licensure.    (8)   A statement disclosing and explaining any charge of a misdemeanor or felony involving the applicant filed in any jurisdiction, whether or not any appeal or other proceeding is pending to have the conviction or plea set aside.    b.    Pay $400.Submit a completed fingerprint packet to facilitate a national criminal history background check. The fee identified in 653—paragraph 8.2(2)“e” for the evaluation of the fingerprint packet and the DCI and FBI criminal history background checks will be assessed to the applicant.    c.    Provide evidence of successful completion of 60 PDA points.Pay the reinstatement fee of $400 plus the fee identified in 653—paragraph 8.2(2)“e” for the evaluation of the fingerprint packet and the DCI and FBI criminal history background checks.    d.    Provide an official statement from NCCAOMcertificate which demonstrates that the applicant holds current active status as a diplomate ofin acupuncture or oriental medicine from the NCCAOM. After June 1, 2004, provide an official statement from NCCAOM that the applicant holds active status as a diplomate in acupuncture or oriental medicine.    e.    Meet any new requirements instituted since the license lapsed.    17.8(2) Reinstatement restrictions.  Pursuant to Iowa Code section 272C.3(2)“d,” the committee may require a licensee who fails to renew for a period of three years from the expiration datean applicant who has not engaged in active practice in the past three years in any jurisdiction of the United States to meet any or all of the following requirements prior to reinstatement of an inactive license:    a.    Provide a written statement explaining the reasons for failing to renew;     b.    a.    Successfully complete continuing education or retraining programs in areas directly related to the safe and healthful practice of acupuncture deemed appropriate by the board or committee;    b.    Successfully pass a competency evaluation approved by the board;    c.    Appear before the committee or board for an interview.Successfully pass an examination approved by the board; or    d.    Successfully complete a reentry to practice program or monitoring program approved by the board.

        ITEM 8.    Amend rule 653—17.9(272C) as follows:

    653—17.9(272C) Continuing education requirements—course approval.  Pursuant to Iowa Code section 272C.2, a person licensed to practice acupuncture shall complete 30 PDA points to qualify for license renewal.Licensees shall demonstrate that they hold current active status as a diplomate from the NCCAOM. The NCCAOM requires 60 points of professional development activity every four years. Active NCCAOM certification satisfies the continuing education requirements established in Iowa Code section 272C.2.
    1. A licensee may earn from 1 to 15 extra PDA points in a license period that may be carried over for credit in the next license period. A licensee desiring to obtain credit for carryover hours shall report the carryover credit on the renewal application when the credit was earned.
    2. It is the responsibility of each licensee to finance the costs of the licensee’s PDA points.

        ITEM 9.    Renumber subrules 17.10(1) to 17.10(5) as 17.10(2) to 17.10(6).

        ITEM 10.    Adopt the following new subrule 17.10(1):    17.10(1) Diagnostic and treatment modalities.  Diagnostic and treatment modalities used by licensees under this chapter may include one or more of the following acupunctural services:    a.    The stimulation or piercing of the skin with an acupuncture needle for any of the following purposes:    (1)   To evoke a therapeutic physiological response, either locally or distally to the area of insertion or stimulation.    (2)   To relieve pain or treat the neuromusculoskeletal system.    (3)   To stimulate ashi acupuncture points to relieve pain and dysfunction.    (4)   To promote, maintain, and restore health and to prevent disease.    (5)   To stimulate the body according to auricular, hand, nose, face, foot or scalp acupuncture therapy.    (6)   To use acupuncture needles with or without the use of herbs, electric current, or application of heat.    b.    The use of oriental medical diagnosis and treatment, including:    (1)   Moxibustion, cupping, thermal methods, magnets, gua sha scraping techniques, acupatches, herbal poultices, hot and cold packs, electromagnetic wave therapy, light and color therapy, sound therapy, or therapy lasers.    (2)   Massage, acupressure, reflexology, shiatsu and tui na massage, or manual stimulation, including stimulation by an instrument or mechanical device that does not pierce the skin.    (3)   Herbal medicine and dietary supplements, including those of plant, mineral, animal, and nutraceutical origin.    c.    Any other adjunctive service or procedure that is clinically appropriate based on the licensee’s training as approved by NCCAOM or ACAOM.

        ITEM 11.    Amend renumbered subrule 17.10(5) as follows:    17.10(5) Change of residencecontact information.  In accordance with Iowa Code section 147.9, licenseesLicensees shall notify the board of changes in residence and place of practicehome address, address of the place of practice, home or practice telephone number, or personal e-mail address regularly used by the applicant or licensee for correspondence with the board within one month of the licensee’s making an address change.

        ITEM 12.    Amend renumbered subrule 17.10(6) as follows:    17.10(6) Delegation of responsibilities prohibited.  TheA licensee shall perform all aspects of acupuncture treatment onthat involve penetration of the skin of a patient. Delegation of responsibility for acupuncture treatment is strictly prohibitedThe licensee may delegate other aspects of treatment to staff and patients who are properly trained by the licensee. It is permissible for appropriately trained staff and patients to remove acupuncture needles from the patient’s body. The licensee is responsible for establishing and maintaining written training standards for staff.

        ITEM 13.    Adopt the following new subrules 17.10(7) and 17.10(8):    17 17.10 10(7) Change of full legal name.  A licensee shall notify the board of any change in the licensee’s full legal name within one month of making the name change. Notification requires a notarized copy of a marriage license or a notarized copy of court documents.    17 17.10 10(8) Deceased.  A licensee’s file shall be closed and labeled “deceased” when the board receives a copy of the licensee’s death certificate or other reliable information of the licensee’s death.

        ITEM 14.    Amend subrule 17.12(10) as follows:    17.12(10) General grounds.  The board may also take disciplinary action against an acupuncturist for any of the following reasons:    a.    Failure to comply with the provisions of Iowa Code chapter 148E or the applicable provisions of Iowa Code chapter 147, or the failure of an acupuncturist to comply with rules adopted by the board pursuant to Iowa Code chapter 148E;    b.    Failure to notify the board of any adverse judgment or settlement of a malpractice claim or action within 30 days of the date of the judgment or settlement;    c.    Failure to report to the board any acts or omissions of another acupuncturist authorized to practice in Iowa that would constitute grounds for discipline under 17.12(147,148E,272C) within 30 days of the date the acupuncturist initially became aware of the information;    d.    Failure to comply with a subpoena issued by the board;    e.    Knowingly submitting a false report of continuing education or failing to submit a required continuing education report;     f.    e.    Failure to adhere to the disciplinary sanctions imposed upon the acupuncturist by the board; or    g.    f.    Violating any of the grounds for revocation or suspension of licensure listed in Iowa Code chapter 147 or 148E.    [Filed 1/26/17, effective 3/22/17][Published 2/15/17]Editor’s Note: For replacement pages for IAC, see IAC Supplement 2/15/17.
    ARC 2951CNatural Resource Commission[571]Adopted and Filed

        Pursuant to the authority of Iowa Code sections 481A.39, 481A.67 and 482.1, the Natural Resource Commission (Commission) hereby amends Chapter 86, “Turtles,” Iowa Administrative Code.     2016 Iowa Acts, House File 2357 (HF 2357), signed by Governor Branstad on March 23, 2016, specifically instructs the Commission to adopt rules establishing commercial and recreational seasons and daily catch limits on turtles. Iowa law requires the Commission, in partnership with the Department of Natural Resources (DNR), to manage the state’s turtle population for posterity.     Many surrounding Midwest states have determined their turtle populations can only be sustainably managed by entirely closing commercial harvest (e.g., North Dakota, South Dakota, Nebraska, Kansas, Illinois, and Indiana). The Commission considered this approach. However, as an interim measure and pending the results of HF 2357’s five-year study, the Commission has instead determined that commercial and recreational harvest can continue so long as egg-laying females are protected during most of their nesting season and with restrictive daily catch and possession limits. These amendments are structured accordingly.    Notice of Intended Action was published in the Iowa Administrative Bulletin on November 9, 2016, as ARC 2802C. The Commission held three public hearings on November 29, 2016. Twenty-six comments were received during the public comment period. Nineteen people spoke in favor of more restrictive turtle harvest regulations, and seven individuals were opposed to the amendments. Comments from those supporting stricter regulations ranged from supporting the proposed amendments to requesting a total ban on commercial harvest. Supporters believe that the science used shows the need for harvest restrictions and that the proposed amendments protect turtles and allow commercial harvest. Opposing comments stated that science does not support the amendments, that the new restrictions will put harvesters out of business or reduce their income, and that only rule changes mandated by HF 2357 should be considered. Opposing comments did not present any information to disclaim the underlying science used in this rule making, nor was specific information on job and income impacts provided. Accordingly, no changes from the Notice have been made.     Although the Commission does not anticipate a significant change in the number of licensed turtle harvesters, buyers, or helpers due to this rule making (or in the sale of recreational fishing licenses generally), there is the possibility of a negative impact on the commercial turtle harvest industry. There may be a loss of jobs and individual harvesters may experience a reduction in income because there will be fewer days to harvest turtles under the new season. The Commission has attempted to mitigate any job or income loss in the rule while still setting seasons and daily catch limits as required by HF 2357. The Commission is amending Chapter 86 so as to protect Iowa’s wild turtle population, held in trust for the public, for posterity; these amendments will ensure the long-term sustainability of Iowa’s commercial turtle harvest industry and protect jobs related to it into the future.    Nothing in this rule making applies to aquaculture operations already regulated pursuant to Iowa Code sections 481A.141 to 481A.145 or 571—Chapter 89. In addition, these amendments do not implement any requirements that may be imposed on commercial harvesters and buyers by the U.S. Department of State or U.S. Fish and Wildlife Service due to the proposed inclusion of wild spiny softshell, smooth softshell, and common snapping turtles in Appendix 3 of the Convention on the International Trade of Endangered Species (CITES).     These amendments are intended to implement Iowa Code sections 481A.38, 481A.39, 481A.67, 482.1, 482.4, and 482.11.    These amendments shall become effective on March 22, 2017.    The following amendments are adopted.

        ITEM 1.    Amend subrule 86.1(1) as follows:    86.1(1) Permissive catchSpecies and season.  It shall be lawful tocommercially and noncommercially (recreationally) take common snapping turtles, softshells,spiny softshell (Apalone spinifera), smooth softshell (Apalone mutica), and painted(Chrysemys picta) turtlesfrom July 16 to May 14. Common snapping turtles (Chelydra serpentina) may be taken commercially from July 16 to May 14, but may be taken recreationally year-round. Possession of alligator snapping turtles is not permitted. The taking of turtle eggs from wild nests is prohibited.Turtles shall not be harvested from gear set prior to midnight on July 15.

        ITEM 2.    Rescind subrule 86.1(3) and adopt the following new subrule in lieu thereof:    86.1(3) Daily catch and possession limits.      a.    The following daily catch limits apply to commercial and recreational harvesters, while the possession limits apply only to commercial harvesters: Turtle SpeciesDaily Catch Limit (commercial and recreational)Possession Limit (commercial only)Common snapping turtle420Spiny softshell and smooth softshell turtle, in aggregate15Painted turtle15    b.    The possession limit for recreational harvesters is a maximum of 100 pounds of live turtles or 50 pounds of dressed turtles pursuant to Iowa Code section 483A.28. A recreational harvester’s daily catch limit shall not exceed this possession limit.

        ITEM 3.    Rescind subrule 86.1(4) and adopt the following new subrule in lieu thereof:    86.1(4) Culling.  It is unlawful to sort, cull, high-grade, or otherwise replace any turtle in possession.

        ITEM 4.    Renumber subrule 86.1(5) as 86.1(7).

        ITEM 5.    Adopt the following new subrule 86.1(5):    86.1(5) Tags.  All harvesters shall affix a weather-resistant gear tag above the waterline to each piece of gear. The gear tag must plainly show the name, address, and license number of the licensee.

        ITEM 6.    Adopt the following new subrule 86.1(6):    86.1(6) Gear attendance.   All turtle traps shall be set with the top of the trap visible above the waterline at all times and shall be checked and completely emptied of catch at least once every 72 hours. When a turtle trap is checked, turtles shall either be taken into possession, up to the daily catch limit, or immediately released.

        ITEM 7.    Amend rule 571—86.1(481A,482), implementation sentence, as follows:       This rule is intended to implement Iowa Code sections 481A.38, 481A.39,481A.67 as amended by 2016 Iowa Acts, House File 2357,482.1, 482.4, and 482.11.    [Filed 1/19/17, effective 3/22/17][Published 2/15/17]Editor’s Note: For replacement pages for IAC, see IAC Supplement 2/15/17.
    ARC 2952CProfessional Licensure Division[645]Adopted and Filed

        Pursuant to the authority of Iowa Code sections 147.76, 151.11 and 272C.3, the Board of Chiropractic hereby amends Chapter 41, “Licensure of Chiropractic Physicians,” Iowa Administrative Code.    This amendment provides clarification in the licensing process and updates legal citations and references to the Board’s Web site.    Notice of Intended Action was published in the Iowa Administrative Bulletin December 7, 2016, as ARC 2857C. A public hearing was held on January 6, 2017, from 9 to 9:30 a.m. in Conference Room 526, Fifth Floor, Lucas State Office Building. No comments were received. Two changes were made from the Notice of Intended Action. In subrule 41.2(4), the word “license” was changed to “licenses,” and in paragraph 41.8(4)“c,” the word “of” was changed to “or.”    A waiver provision is not included in this rule making because all administrative rules of the professional licensure boards in the Division of Professional Licensure are subject to the waiver provisions accorded under 645—Chapter 18.    This amendment was adopted by the Board of Chiropractic on January 11, 2017.    After analysis and review of this rule making, no impact on jobs has been found.    This amendment is intended to implement Iowa Code chapters 147, 151 and 272C.    This amendment will become effective on March 22, 2017.    The following amendment is adopted.

        ITEM 1.    Amend 645—Chapter 41 as follows: CHAPTER 41CHIROPRACTICLICENSURE OF CHIROPRACTIC PHYSICIANS

    645—41.1(151) Definitions.  The following definitions shall be applicable to the rules of the Iowa board of chiropractic:        "Active license" means a license that is current and has not expired.        "Board" means the Iowa board of chiropractic.        "Council on Chiropractic Education" "CCE" means the organization that establishes the Educational Standards of Chiropractic Colleges and Bylaws. A copy of the standards may be requested from the Council on Chiropractic Education. CCE’s address and Web site may be obtained from the board’s Web site at http://www.idph.state.ia.us/licensurehttp://www.idph.iowa.gov/licensure.        "Department" means the Iowa department of public health.        "Grace period" means the 30-day period following expiration of a license when the license is still considered to be active. In order to renew a license during the grace period, a licensee is required to pay a late fee.        "Inactive license" means a license that has expired because it was not renewed by the end of the grace period. The category of “inactive license” may include licenses formerly known as lapsed, inactive, delinquent, closed, or retired.        "License" means license to practice chiropractic in Iowa.        "Licensee" means any person licensed to practice as a chiropractic physician in Iowa.        "License expiration date" means June 30 of even-numbered years.        "Licensure by endorsement" means the issuance of an Iowa license to practice chiropractic to an applicant who is or has been licensed in another state and meets the criteria for licensure in this state.        "Mandatory training" means training on identifying and reporting child abuse or dependent adult abuse required of chiropractic physicians who are mandatory reporters. The full requirements on mandatory reporting of child abuse and the training requirements are found in Iowa Code section 232.69. The full requirements on mandatory reporting of dependent adult abuse and the training requirements are found in Iowa Code section 235B.16.        "NBCE" means the National Board of Chiropractic Examiners. The mailing address and Web site address may be obtained from the board’s Web site at http://www.idph.state.ia.us/licensurehttp://www.idph.iowa.gov/licensure.        "Reactivate" "reactivation" means the process as outlined in rule 645—41.14(17A,147,272C) by which an inactive license is restored to active status.        "Reciprocal license" meansa license issued pursuant to the issuance ofprocess outlined in rule 645—4.7(147) by which an Iowa license to practice chiropracticis issued to an applicant who is currently licensed in another state that has a mutual agreement with the Iowa board of chiropractic to license persons who have the same or similar qualifications to those required in Iowa.        "Reinstatement" means the process as outlined inrule645—11.31(272C) by which a licensee who has had a license suspended or revoked or who has voluntarily surrendered a license may apply to have the license reinstated, with or without conditions. Once the license is reinstated, the licensee may apply for active status.        "SPEC" means Special Purposes Examination for Chiropractic, which is an examination provided by the NBCE that is designed specifically for utilization by state or foreign licensing agencies.

    645—41.2(151) Requirements for licensure.      41.2(1)   The following criteria shall apply to licensureEvery applicant for licensure to practice chiropractic shall do all of the following:    a.    An applicant shall completeComplete a board-approved application form.If the application is not completed according to the instructions, the application will not be reviewed by the board. Application forms may be obtained from the board’s Web site (http://www.idph.state.ia.us/licensure)(http://www.idph.iowa.gov/licensure) or directly from the Board of Chiropractic, Professional Licensure Division, Fifth Floor, Lucas State Office Building, Des Moines, Iowa 50319-0075.    b.    An applicant shall complete the application form according to the instructions contained in the application. If the application is not completed according to the instructions, the application will not be reviewed by the board.    c.    b.    An applicant shall submitSubmit the appropriate fee to the Iowa Board of Chiropracticas stated in 645—subrule 5.4(1). The fee is nonrefundable.    d.    c.    No applicant shall be considered for licensure untilSubmit official copies of academic transcripts are received byto the board directly from a chiropractic school accredited by the CCE and approved by the board. The transcript must display the date of graduation and the degree conferred.    e.    d.    An applicant shall submitSubmit an official certificate of completion of 120 hours of physiotherapy from a board-approved chiropractic college. The physiotherapy course must include a practicum component.    f.    e.    An applicant shall passPass all parts of the NBCE examination as outlined in rule645—41.3(151).    g.    f.    An applicant shall submitSubmit a copy of the chiropractic diploma (no larger than 8 ½ ″ × 11″) from a chiropractic school accredited by the CCE and approved by the board.    41.2(2)   Licensees who were issued their licenses within six months prior to the renewal date shall not be required to renew their licenses until the renewal date two years later.    41.2(3)   Incomplete applications that have been on file in the board office for more than two years shall be:    a.    Considered invalid and shall be destroyed; or    b.    Maintained upon written request of the candidate. The candidate is responsible for requesting that the file be maintained.    41.2(4)   Persons licensed to practice chiropractic shall keep their licenselicenses publicly displayed in the primary place of practice.    41.2(5)   Licensees are required to notify the board of chiropractic of changes in residence or place of practice within 30 days after the change of address occurs.

    645—41.3(151) Examination requirements.      41.3(1)   Applicants shall submit the application for the NBCE examination and the fee directly to the NBCE.    41.3(2)   The following criteria shall apply for the NBCE:    a.    Prior to July 1, 1973, applicants shall provide proof of being issued a basic science certificate.    b.    After July 1, 1973, applicants shall provide proof of successful completion of the required examination from the National Board of Chiropractic ExaminersNBCE. The required examination shall meet the following criteria:    (1)   Examinations completed after July 1, 1973, shall be defined as the successful completion of Parts I and II of the NBCE examination.    (2)   Examinations completed after August 1, 1976, shall be defined as the successful completion of Parts I, II and Physiotherapy of the NBCE examination.    (3)   Examinations completed after January 1, 1987, shall be defined as the successful completion of Parts I, II, III and Physiotherapy of the NBCE examination.    (4)   Examinations completed after January 1, 1996, shall be defined as satisfactory completion of Parts I, II, III, IV and Physiotherapy of the NBCE examination.

    645—41.4(151) Educational qualifications.      41.4(1)   An applicant for licensure to practice as a chiropractic physician shall present an official transcript verifying graduation from aCCE-accredited and board-approved college of chiropractic.    41.4(2)   Foreign-trained chiropractic physicians shall:    a.    Provide an equivalency evaluation of their educational credentials by the International EducationalEducation Research FoundationsFoundation, Inc., Credentials Evaluation Service, P.O. Box 3665, Culver City, California 90231-3665,; telephone (310)258-9451,; Web site www.ierf.org or E-mail at info@ierf.org. The professional curriculum must be equivalent to that stated in these rules. A candidate shall bear the expense of the curriculum evaluation.    b.    Provide a notarized copy of the certificate or diploma awarded to the applicant from a chiropractic program in the country in which the applicant was educated.    c.    Receive a final determination from the board regarding the application for licensure.

    645—41.5(151) Temporary certificate.      41.5(1)   The board may issue a temporary certificate to practice chiropractic if the issuance is in the public interest. A temporary certificate may be issued at the discretion of the board to an applicant who demonstrates a need for the temporary certificate and meets the professional qualifications for licensure.    41.5(2)   Demonstrated need. An applicant must establish that a need exists for the issuance of a temporary licensecertificate and that the need serves the public interest.An applicant must submit information explaining the demonstrated need, the scope of practice requested by the applicant, and why a temporary certificate should be granted. An applicant may only meet the demonstrated need requirement by proving that the need meets one of the following conditions:    a.    The applicant will provide chiropractic services in connection with a special activity, event or program conducted in this state;    b.    The applicant will provide chiropractic services in connection with a state emergency as proclaimed by the governor; or    c.    The applicant previously held an unrestricted license to practice chiropractic in this state and will provide gratuitous chiropractic services as a voluntary public service; or    d.    The applicant will provide chiropractic services in connection with an urgent need.    41.5(3)   Professional qualifications. The applicant shall:    a.    Submit the board-approved application form. Applications may be obtained from the board’s Web site (http://www.idph.state.ia.us/licensurehttp://www.idph.iowa.gov/licensure) or directly from the Board of Chiropractic, Professional Licensure Division, Fifth Floor, Lucas State Office Building, Des Moines, Iowa 50319-0075.    b.    Provide verification of current active licensure in the United States sent directly to the board office from the state in which the applicant is licensed.    c.    Submit proof of two years of full-time chiropractic practice within the immediately preceding two years.    d.    Provide a copy of a chiropractic diploma (no larger than 8 ½ ″ × 11″) from a chiropractic school accredited by the CCE and approved by the board and submit an official certificate of completion of 120 hours of physiotherapy from a board-approved chiropractic college. The physiotherapy course must include a practicum component.    e.    Submit the temporary certificate fee.    f.    Submit information explaining the demonstrated need, the scope of practice requested by the applicant, and why a temporary certificate should be granted.    41.5(4)   If the application is approved by the board,and the applicant submits the temporary certificate fee pursuant to 645—subrule 5.4(2), a temporary certificate shall be issued authorizing the applicant to practice chiropractic for one year to fulfill the demonstrated need for temporary licensure, as stated on the application and described in subrule 41.5(2).    41.5(5)   An applicant or temporary certificate holder who has been denied a temporary certificate may appeal the denial pursuant to rule 645—41.11(17A,151,272C)645—4.10(17A,147,272C). A temporary certificate holder is subject to discipline for any grounds for which licensee discipline may be imposed.    41.5(6)   A temporary licensecertificate holder who meets all licensure conditions as specified in rule 645—41.2(151) may obtain a permanent license in lieu of the temporary certificate. To obtain a permanent license, the applicant shall submit any additional documentation required for permanent licensure that was not submitted as a part of the temporary certificate application. The applicant may receive fee credit toward the permanent licensure fee equivalent to the fee paid for the temporary permitcertificate if the application for the permanent license and all required documentation are received by the board prior to the expiration of the temporary permitcertificate.

    645—41.6(151) Licensure by endorsement.      41.6(1)   An applicant who has been licensed to practice chiropractic under the laws of another jurisdiction shall file an application for licensure by endorsement with the board office.    41.6(2)   The board may receive by endorsement any applicant from the District of Columbia or another state, territory, province or foreign country who:    a.    Submits to the board a completed application;    b.    Pays the licensure fee;    c.    Provides a notarized copy of the diploma (no larger than 8 ½ ″ × 11″) along with an official copy of the transcript from aCCE-accredited and board-approved chiropractic school sent directly from the school to the board office;    d.    Shows evidence of successful completion of theNCBE examination of the National Board of Chiropractic Examiners as outlined inrule645—41.3(151);    e.    Provides verification of license(s) from every jurisdiction in which the applicant has been licensed, sent directly from the jurisdiction(s) to the board office. Web-based verification may be substituted for verification direct from the jurisdiction’s board office if the verification provides:    (1)   Licensee’s name;    (2)   Date of initial licensure;    (3)   Current licensure status; and    (4)   Any disciplinary action taken against the license; and    f.    Holds or has held a current license and provides evidence of one of the following requirements:    (1)   Completion of 60 hours of board-approved continuing education during the immediately preceding two-year period as long as the applicant had an active practice within the last five years; or    (2)   Practice as a licensed chiropractic physician for a minimum of one year during the immediately preceding two-year period; or    (3)   The equivalent of one year as a full-time faculty member teaching chiropractic in an accrediteda CCE-accredited chiropractic college for at least one of the immediately preceding two years; or    (4)   Graduation from a board-approved chiropractic college within the immediately preceding two years from the date the application is received in the board office.    g.    If the applicant does not meet the requirements of paragraph 41.6(2)“f,” the applicant shall submit the following:    (1)   Evidence of satisfactory completion of 60 hours of board-approved continuing education during the immediately preceding two-year period; and    (2)   Evidence of successful completion of the SPEC examination within one year prior to receipt of the application in the board office.

    645—41.7(151) Licensure by reciprocal agreement.  Rescinded IAB 8/13/08, effective 9/17/08.

    645—41.8(151) License renewal.      41.8(1)   The biennial license renewal period for a license to practice as a chiropractic physician shall begin on July 1 of an even-numbered year and end on June 30 of the next even-numbered year. The licensee is responsible for renewing the license prior to its expiration. Failure of the licensee to receive notice from the board does not relieve the licensee of the responsibility for renewing the license.    41.8(2)   An individual who was issued a license within six months of the license renewal date will not be required to renew the license until the subsequent renewal two years later.    41.8(3)   A licensee seeking renewal shall:    a.    Meet the continuing education requirements of rule 645—44.2(272C) and the mandatory reporting requirements of subrule 41.8(4). A licensee whose license was reactivated during the current renewal compliance period may use continuing education credit earned during the compliance period for the first renewal following reactivation; and    b.    Submit the completed renewal application, continuing education report form and renewal fee before the license expiration date.    41.8(4)   Mandatory reporter training requirements.    a.    A licensee who, in the scope of professional practice or in the licensee’s employment responsibilities, examines, attends, counsels or treats children in Iowa shall indicate on the renewal application completion of two hours of training in child abuse identification and reporting in the previous five years or condition(s) for waiver of this requirement as identified in paragraph41.8(4)“e.”    b.    A licensee who, in the course of employment, examines, attends, counsels or treats adults in Iowa shall indicate on the renewal application completion of two hours of training in dependent adult abuse identification and reporting in the previous five years or condition(s) for waiver of this requirement as identified in paragraph41.8(4)“e.”    c.    A licensee who, in the scope of professional practice or in the course of employment, examines, attends, counsels, or treats both adults and children in Iowa shall indicate on the renewal application completion of training in abuse identification and reporting for dependent adults and children in the previous five years ofor condition(s) for waiver of this requirement as identified in paragraph41.8(4)“e.”Training may be completed through separate courses as identified in paragraphs41.8(4)“a” and “b” or in one combined two-hour course that includes curricula for identifying and reporting child abuse and dependent adult abuse. The course shall be a curriculum approved by the Iowa department of public health abuse education review panel.    d.    The licensee shall maintain written documentation for five years after mandatory training as identified in paragraphs41.8(4)“a” to “c,” including program date(s), content, duration, and proof of participation.    e.    The requirement for mandatory training for identifying and reporting child and dependent adult abuse shall be suspended if the board determines that suspension is in the public interest or that a person at the time of license renewal:    (1)   Is engaged in active duty in the military service of this state or the United States.    (2)   Holds a current waiver by the board based on evidence of significant hardship in complying with training requirements, including an exemption of continuing education requirements or extension of time in which to fulfill requirements due to a physical or mental disability or illness as identified inrule645—Chapter 444.14(272C).    f.    The board may select licensees for audit of compliance with the requirements in paragraphs41.8(4)“a” to “e.”    41.8(5)   Upon receiving the information required by this rule and the required fee, board staff shall administratively issue a two-year license and shall send the licensee a wallet card by regular mail. In the event the board receives adverse information on the renewal application, the board shall issue the renewal license but may refer the adverse information for further consideration or disciplinary investigation.    41.8(6)   A person licensed to practice as a chiropractic physician shall keep the license certificate and wallet card(s) displayed in a conspicuous public place at the primary site of practice.    41.8(7)   Late renewal. The license shall become late when the license has not been renewed by the expiration date on the wallet card. The licensee shall be assessed a late fee as specified in 645—subrule 46.1(4)5.4(4). To renew a late license, the licensee shall complete the renewal requirements and submit the late fee within the grace period.    41.8(8)   Inactive license. A licensee who fails to renew the license by the end of the grace period has an inactive license. A licensee whose license is inactive continues to hold the privilege of licensure in Iowa, but may not practice as a chiropractor in Iowa until the license is reactivated. A licensee who practices as a chiropractor in the state of Iowa with an inactive license may be subject to disciplinary action by the board, injunctive action pursuant to Iowa Code section 147.83, criminal sanctions pursuant to Iowa Code section 147.86, and other available legal remedies.

    645—41.9(272C) Exemptions for inactive practitioners.  Rescinded IAB 8/3/05, effective 9/7/05.

    645—41.10(272C) Lapsed licenses.  Rescinded IAB 8/3/05, effective 9/7/05.

    645—41.11(147) Duplicate certificate or wallet card.  Rescinded IAB 8/13/08, effective 9/17/08.

    645—41.12(147) Reissued certificate or wallet card.  Rescinded IAB 8/13/08, effective 9/17/08.

    645—41.13(17A,151,272C) License denial.  Rescinded IAB 8/13/08, effective 9/17/08.

    645—41.14(17A,147,272C) License reactivation.  To apply for reactivation of an inactive license, a licensee shall:    41.14(1)   Submit a reactivation application on a form provided by the board.    41.14(2)   Pay the reactivation fee that is due as specified in 645—Chapter 46subrule 5.4(5).    41.14(3)   Provide verification of current competence to practice as a chiropractic physician by satisfying one of the following criteria:    a.    If the license has been on inactive status for five years or less, an applicant must provide the following:    (1)   Verification of the license(s) from every jurisdiction in which the applicant is or has been licensed and is or has been practicing during the time period the Iowa license was inactive, sent directly from the jurisdiction(s) to the board office. Web-based verification may be substituted for verification from a jurisdiction’s board office if the verification includes:
    1. Licensee’s name;
    2. Date of initial licensure;
    3. Current licensure status; and
    4. Any disciplinary action taken against the license; and
        (2)   Verification of completion of 60 hours of continuing education that comply with standards defined inrule645—44.3(151,272C) within two years of the application for reactivation.
        b.    If the license has been on inactive status for more than five years, an applicant must provide the following:    (1)   Verification of the license(s) from every jurisdiction in which the applicant is or has been licensed and is or has been practicing during the time period the Iowa license was inactive, sent directly from the jurisdiction(s) to the board office. Web-based verification may be substituted for verification from a jurisdiction’s board office if the verification includes:
    1. Licensee’s name;
    2. Date of initial licensure;
    3. Current licensure status; and
    4. Any disciplinary action taken against the license; and
        (2)   Verification of completion of 60 hours of continuing education that comply with standards defined inrule645—44.3(151,272C) within two years of application for reactivation; and    (3)   Verification of passing the Special Purpose Examination for Chiropractic (SPEC)SPEC if the applicant does not have a current license and has not been in active practice in the United States during the past five years.

    645—41.15(17A,147,272C) License reinstatement.  A licensee whose license has been revoked, suspended, or voluntarily surrendered must apply for and receive reinstatement of the license in accordance withrule645—11.31(272C) andthereafter must apply for and be granted reactivation of the license in accordance withrule 645—41.14(17A,147,272C) prior to practicing as a chiropractic physician in this state.       These rules are intended to implement Iowa Code chapters 17A, 147, 151 and 272C.
        [Filed 1/26/17, effective 3/22/17][Published 2/15/17]Editor’s Note: For replacement pages for IAC, see IAC Supplement 2/15/17.
    ARC 2953CSoil Conservation and Water Quality Division[27]Adopted and Filed

        Pursuant to the authority of Iowa Code sections 207.21(5)“a” and 208.17(5), the Division of Soil Conservation and Water Quality hereby amends Chapter 6, “Contracts for Public Improvements and Professional Services,” Iowa Administrative Code.    The minimum estimate for work and maintenance projects requiring public bidding is increased from $25,000 to $100,000 under these amendments. Competitive quotations can be used for work estimated to cost less than $100,000. These amendments require notice to be posted on Web sites instead of published in newspapers, and the minimum number of days for notice is changed from 15 days to 13 days.    Notice of Intended Action was published in the Iowa Administrative Bulletin as ARC 2868C on December 21, 2016. No comments were received from the public. These amendments are identical to those published under Notice.    After analysis and review of this rule making, no adverse impact on jobs has been found.    These amendments are intended to implement Iowa Code section 26.3 and 2016 Iowa Acts, Senate File 2170.    These amendments will become effective March 22, 2017.    The following amendments are adopted.

        ITEM 1.    Amend rule 27—6.2(17A,161A,159,207,208), parenthetical implementation statute, as follows:

    27—6.2(17A,26,161A,159,207,208) Contracts for public improvements.  

        ITEM 2.    Amend subrule 6.2(2) as follows:    6.2(2)  Invitation for bids.  When the total estimated cost of a public improvement project exceeds the sum of $25,000$100,000, the division shall advertise for sealed bids by publishingposting a notice of “Invitation for Bids” in at least one newspaper of statewide circulation, one newspaper published in the county seat of the county in which the work is to be done and such other means as may be appropriate in sufficient time to enable prospective bidders to prepare and submit bids, provided that one of said notices shall beon the department’s Web site, a relevant contractor plan room service with statewide circulation and a relevant construction lead generating service with statewide circulation not less than 1513 days prior to the date set for receiving bids. Where work is to be done under the contract in more than three counties, the requirement of publication in the county seat shall not be required so long as other means of notice to bidders is given, as in trade journals or other such means. Plans, specifications and the contract form shall be provided to all prospective bidders as provided in the invitation for bids.

        ITEM 3.    Amend subrule 6.2(4) as follows:    6.2(4)  Solicitation of quotations.  Competitive quotations may be solicited on public improvement projects estimated by the division to cost less than $25,000$100,000. At least three quotations shall be solicited unless there are an insufficient number of local, qualified contractors interested in the project.

        ITEM 4.    Amend 27—Chapter 6, implementation sentence, as follows:       These rules are intended to implement Iowa Code chapters 17A, 159, 161A, 207 and 208and Iowa Code section 26.3.    [Filed 1/25/17, effective 3/22/17][Published 2/15/17]Editor’s Note: For replacement pages for IAC, see IAC Supplement 2/15/17.
    ARC 2954CUtilities Division[199]Adopted and Filed

        Pursuant to Iowa Code sections 17A.4 and 476.2, the Utilities Board (Board) gives notice that on January 24, 2017, the Board issued an order in Docket No. RMU-2015-0002, In re: Amendments to Telecommunications Service Regulations [199 IAC 22], “Order Adopting Rules,” that updates the Board’s rules regarding the provision of telecommunications services in Iowa and reflects comments and suggestions received from stakeholders. The adopted amendments further the Board’s objective to eliminate obsolete and unnecessary requirements, minimize the regulatory burden on the industry as a whole, and attempt to achieve a neutral regulatory application to local exchange services being provided by varying technologies.    This rule-making proceeding was initiated by an order issued on May 18, 2016, and on June 8, 2016, a Notice of Intended Action was published in the Iowa Administrative Bulletin at IAB Vol. XXXVIII, No. 25 (06/08/2016) p. 2381, as ARC 2569C.    Stakeholder comments were received prior to the initiation of this rule-making proceeding. Comments addressing the Notice of Intended Action were filed on or before July 1, 2016, by the following participants: Voice on the Net Coalition (VON); Mr. Dale Brodt; CenturyLink, Inc. (CenturyLink); T-Mobile Central, L.L.C. (T-Mobile); Sprint Communications Company, L.P., and Virgin Mobile USA LLP (collectively, Sprint); Windstream Iowa Communications, LLC, et al. (Windstream); MCI MCImetro Access Transmission Services LLC, d/b/a Verizon Access Transmission Services, MCI Communications Services, Inc., d/b/a Verizon Business Services, TTI National, Inc., Verizon Long Distance LLC, and Verizon Select Services Inc. (collectively, Verizon); AT&T Corp. and Teleport Communications America, LLC (collectively, AT&T); Dex Media, Inc. (Dex Media); Iowa Communications Alliance (ICA); AARP, Inc. (AARP); Cox Iowa Telecom (Cox Iowa); and the Office of Consumer Advocate (OCA), a division of the Iowa Department of Justice.    An oral presentation was held on August 9, 2016. Additional written comments were filed after the oral presentation by AgriSync, Inc. (AgriSync); Windstream; AT&T; Mr. Michael Arndt; CenturyLink; Cox Iowa; Verizon; T-Mobile; ICA; Dex Media; and OCA. On November 1, 2016, the Board issued an “Order Requesting Additional Comments”; an additional “Order Requesting Comments” was issued on November 15, 2016. Additional written comments were filed by CTIA – The Wireless Association (CTIA); Cox Iowa; Sprint; ICA; Windstream; CenturyLink; AT&T; Verizon; VON; Dex Media; and OCA.    Based on the comments submitted in this proceeding, the Board determined that the proposed amendments to Chapter 22 should be adopted with some modifications, as described below. The Board does not address editorial or nonsubstantive changes that were adopted.

    1.     The Board proposed to amend or remove several terms and definitions in subrule 22.1(3) including “Average busy-season, busy-hour traffic,” “Busy-hour,” “Busy-season,” “Central office,” “Central office access line,” “Channel,” “Demarcation point,” “Extended area service,” “Held order for primary service,” “Held order for secondary service,” “Interexchange service,” “Outside plant,” “Percentage of fill,” “Primary service,” “Protector,” “Secondary service,” “Telephone station,” “Terminal equipment,” “Toll connecting trunks,” “Traffic grade of service,” and “Transitional intrastate access service,” removing the terms wherever they appear throughout this chapter. The Board noted that these definitions are no longer technology-neutral.    Generally, the commenters supported the Board’s proposal to eliminate the terms and definitions from this subrule as proposed, with certain exceptions. After reviewing the comments, the Board adopted the above-described revisions to subrule 22.1(3) as proposed.    As part of the Board’s May 18, 2016, order commencing this rule making, the Board proposed to amend paragraph 22.1(6)“a” by adding telecommunications service provided by Voice over Internet Protocol (VoIP) technology to the list of services that have been deregulated by the Board. The Board issued an additional order on June 8, 2016, seeking comments on a variation to that proposal wherein the Board suggested a change that specified deregulation of retail VoIP services only.    Several commenters asserted that VoIP’s integrated capabilities and features make VoIP an information service under 47 U.S.C. § 153(24) that is not subject to state regulation and as such the Board cannot deregulate a service that it cannot regulate in the first place. These commenters proposed changes to the Board’s definition of “Telephone utility” and the addition of definitions for “Internet protocol-enabled service” and “Voice over Internet protocol service” to reflect that VoIP is an information service and is not subject to the Board’s regulatory authority.    Other commenters asserted that while the Federal Communications Commission (FCC) has identified non-nomadic VoIP as an information service for the application of certain FCC rules, the FCC has not yet issued a comprehensive determination of whether non-nomadic VoIP is considered a telecommunications service or an information service.    The Board agreed with some commenters that it should adopt the suggested VoIP-related changes to the definition of “Telephone utility” and the definition of “Internet protocol-enabled service” on a prospective basis. In addition, the Board adopted the suggested definition of “Voice over Internet protocol service” with modifications intended to avoid technology-specific distinctions and adopted a definition of “Information services.” The Board also modified the definition of “Wholesale services” to provide additional clarification that the Board intends to continue its regulatory authority over all wholesale services, including VoIP services.    Since the Board has revised the definitions as described above, the Board did not adopt the proposed amendment to paragraph 22.1(6)“a” that would have added a subparagraph (15) deregulating telecommunications services provided by VoIP.
    2.     The Board proposed to delete subparagraph 22.2(6)“a”(4) regarding outage information that is to be filed with the Board. Subparagraph 22.2(6)“a”(4) provides that each utility is required to file the name, title, address, and telephone number of the person authorized to respond to communication from the Board in connection with outages, pursuant to paragraph 22.2(8)“d”; however, the outage reporting requirements in subrule 22.2(8) were rescinded in 2010, which makes subparagraph 22.2(6)“a”(4) obsolete.    OCA stated that it has no objection to the elimination of subparagraph 22.2(6)“a”(4), but noted that the Board should undertake a comprehensive review of outage notification requirements to ensure that state and local emergency responders can be alerted if a significant number of Iowa residents in an area lose communication services. The Board has considered a comprehensive review of outages and outage notification in its review of rule 199—22.6(476) and is comfortable eliminating the requirement in 22.2(6)“a”(4) that carriers file information of contact persons for communications regarding outages. The Board adopted the proposed rescission of paragraph 22.2(6)“a”(4).    The Board also proposed to eliminate the requirement in paragraph 22.2(6)“b” that carriers file with the Board a copy of any new directories the carriers distribute to customers. Several comments were received from participants regarding the continued distribution of directories as that issue relates to subrule 22.3(1). However, no comments were received regarding the elimination of this particular requirement.    Since no comments were received regarding the elimination of this requirement, and since a similar issue is addressed in the Board’s discussion of subrule 22.3(1), the Board rescinded paragraph 22.2(6)“b” as proposed.
    3.     The Board proposed to amend rule 199—22.3(476) regarding general service requirements by rescinding subrules 22.3(1), Directories; 22.3(2), Service check; 22.3(5), Pay telephone services and facilities; and 22.3(6), Extension plan; and by amending subrule 22.3(11), Assignment of numbers.    With respect to subrule 22.3(1) regarding directories, the Board received several comments suggesting that the transition to other technologies for local exchange service, namely, wireless technology, has impacted the public’s need for printed directories. However, the Board also recognizes that rescinding subrule 22.3(1), which requires carriers to provide printed directories, may create unintended issues for customers who do not have ready access to broadband or Internet services. The Board attempted to address this problem by adding paragraph 22.4(1)“c” and requiring carriers that eliminate printed directories to develop a plan to help requesting customers transition from printed directories and to file that plan with the Board for information purposes.    The Board agreed with some of the commenters that requiring the development of a transition plan for carriers moving away from printed directories and filing that plan with the Board may not be an appropriate solution to ensuring that each Iowa customer who wants a printed directory can get one. Proposed paragraph 22.4(1)“c” did not make certain that a transition from widespread distribution of printed directories will continue to allow all Iowans to connect to and receive value from the public network. The Board found that since Dex Media is providing printed directories to customers free of charge upon request in other states, a rule requiring that type of transition for Iowa customers is appropriate. This change relieves the mandatory requirement of providing a printed directory to all customers, yet allows for the safety net necessary for some Iowans to obtain beneficial access to the public network.    The Board adopted the proposed rescission of subrule 22.3(1) regarding directories. The Board adopted a revised paragraph 22.4(1)“c” to require carriers transitioning from printed directories to inform customers annually that they can still receive a current printed directory free of charge upon request by calling a toll-free number.    The Board also adopted the other proposed amendments to rule 199—22.3(476), including the requirement in subrule 22.3(11) (renumbered as 22.3(2)) to assign telephone numbers in compliance with FCC rules.
    4.     The Board proposed amending subrule 22.4(1) by modifying the language in subparagraph 22.4(1)“a”(2) and adding subparagraphs 22.4(1)“a”(4) and (5) that correspond to the changes proposed to rule 199—22.6(476). The Board proposed to continue requiring carriers to track service issues as originally required by rule 199—22.6(476), and those tracking requirements have been adopted in the subparagraphs 22.4(1)“a”(4) and (5).    In addition, the Board proposed to amend subrule 22.4(1) by adding a new paragraph 22.4(1)“c,” which was adopted with revisions as described above.
    5.     The Board proposed amending the introductory paragraph of subrule 22.4(2) and paragraph 22.4(2)“a” by adding language to clarify that, pursuant to federal regulations in 47 CFR § 54.401(c), utilities may not collect a deposit in order to initiate Lifeline service to qualifying customers. The Board also proposed a change to paragraph 22.4(2)“b” to reflect an interest rate of 7.5 percent per annum, compounded annually, to maintain consistency across all utility industries, instead of the 4.0 percent in the current paragraph.    Comments were received from CenturyLink and ICA regarding the proposed change to paragraph 22.4(2)“b” regarding interest charged on customer deposits. Both commenters indicated that the Board’s proposal to increase interest charged on customer deposits from 4.0 percent to 7.5 percent is not appropriate. However, CenturyLink argued that the interest rate should remain at 4.0 percent while ICA argued that the rate should be based on market conditions. CenturyLink noted that the established rate is higher than established market rates.    Based upon the written comments and comments made at the oral presentation, the Board found that adopting the proposed 7.5 percent interest rate is not appropriate at this time and did not change the current 4.0 percent interest rate.
    6.     The Board proposed to rescind rule 199—22.5(476), which identifies specific adequacy standards relating to the provision of telecommunications services. These standards relate primarily to legacy landline technologies. The subrules in rule 199—22.5(476) specify technical service requirements like dial tone availability and adequacy of interoffice trunks and do not appear to be necessary or relevant any longer. OCA was the only participant that provided written comments on the proposed rescission of rule 199—22.5(476).    The Board agreed with the majority of participants that these telephone utility standards can be eliminated. Rescinding rule 199—22.5(476) is a move away from the specific requirements associated with legacy landline technologies to general standards that are technology-neutral. The Board rescinded rule 199—22.5(476) as proposed.
    7.     The Board proposed to eliminate certain requirements in rule 199—22.6(476), which is the rule that identifies basic standards of service quality, including standards relating to service connections, held orders, service interruptions, emergency operations, and business offices. Specifically, the Board proposed to amend rule 199—22.6(476) to eliminate the requirement to measure service connection, held order, and service interruption performance. However, the Board also proposed to continue to require carriers providing local exchange voice services to track service connections, service interruptions, out-of-service trouble reports, and held orders, but moved those tracking requirements to subrule 22.4(1).    Subrule 22.6(1) establishes metrics for the connection of voice services after a customer has requested those services. Subrule 22.6(2) establishes record-keeping requirements and an alternative service obligation for held orders. A “held order” is considered to be the time when a local exchange utility that uses its own facilities to provide service cannot supply service to prospective customers within five business days. The Board proposed to eliminate the metrics in subrule 22.6(1) and require companies to make all reasonable efforts to maintain a five-business-day standard for the connection of voice service. The Board also proposed to delete the term “primary service” from the subrules in rule 199—22.6(476) because the term dates back to a time when it was common for residential customers to subscribe to multiple landlines, such as a main voice line, a teen line, a fax line, a dial-up Internet line, and the like. The “primary” and “secondary” service definitions provided a distinction in service obligations that is no longer relevant in today’s changing marketplace. Comments were received from OCA and CenturyLink regarding these proposed changes.    The Board recognizes that the requirements in subrule 22.6(1) regarding service connections and in subrule 22.6(2) regarding held orders are not competitively neutral as they only apply to utilities that use their own facilities to provide service. A reseller of services or a carrier leasing facilities from an incumbent local exchange carrier (ILEC) to provide service is not subject to these requirements. Similarly, the municipal telephone companies in Iowa are exempt from subrule 22.6(1) as they are facilities-based but are not required to extend their facilities to every location in the exchanges where they are certificated. The municipal telephone companies typically extend facilities only in the municipality where they operate, but the ILEC serving an exchange must provide facilities to every premises in the entire exchange where the municipality is located. The proposed amendments to subrules 22.6(1) and 22.6(2) attempted to address that discrepancy by striking references to facilities and making the rule applicable to all local exchange voice service technologies.    CenturyLink suggested that the Board eliminate all rules setting expectations for service connections since the telephone utilities have an incentive in the current competitive market to provide service as quickly as possible or lose those customers to competition. The Board understands CenturyLink’s position but also shares OCA’s concerns that eliminating the metrics may have the unintended consequence of creating less of an incentive to invest necessary resources throughout an exchange and that the Board may not have any measurement tools in place by which to hold companies accountable for excessively long service connections or held orders.    After considering the comments, the Board adopted the proposed amendments to subrules 22.6(1) and 22.6(2) with modifications. The Board modified the amendments to subrule 22.6(1) by retaining the requirement that customers be provided service within 30 business days of a request for service or the customer-requested date, whichever is later, in current paragraph 22.6(1)“c.” The retention of this metric recognizes the marketplace incentives to quickly establish service and also addresses OCA’s concerns that the Board should have a minimum measurement tool in place by which to hold companies accountable for excessively long delays in service connections.    With respect to subrule 22.6(2), the Board’s proposal to amend this subrule was intended to address the competitive disparity among carriers. CenturyLink and OCA provided comments regarding 22.6(1), but not 22.6(2). However, the Board has identified additional grammatical changes that should be made to the rule to make it more competitively neutral. The Board adopted the amendments to 22.6(2) as proposed, with minor grammatical changes.    The Board proposed to rescind the measurements for restoration of service following a service interruption identified in subrules 22.6(3) and 22.6(4). As mentioned above, the Board also proposed to continue requiring carriers to track service interruptions and held orders but moved those tracking requirements to subrule 22.4(1), where additional reporting and tracking requirements are identified. The Board received comments from Mr. Brodt, OCA, AARP, Mr. Arndt, and CenturyLink regarding this proposal.    The proposed amendments to subrules 22.6(3) and 22.6(4) to eliminate the requirements were intended to elicit comments regarding the notion that, in today’s current competitive market, telephone utilities have every incentive to provide good service or they could lose their customers to competition; the penalty of losing customers due to poor service should be enough of an incentive for providers of voice services to aspire to adequately maintain and service their facilities while striving to improve the customer experience.     The commenters, however, raised valid concerns throughout this rule making regarding the significant personal effect of extended telecommunications service outages. The commenters pointed out that there are still some parts of Iowa where local exchange competition is not robust and the availability of other, unregulated voice services may not be so widespread. According to the commenters, customers continue to need some level of protection from extended service outages.    At the August 9, 2016, comment proceeding, a discussion took place between the Board and participants regarding subrule 22.6(3) and the provision of alternative service for extended service interruptions. Based on the discussion and written comments that followed, the Board sought comments in its November 1, 2016, order, regarding additional rule language that added an alternative service requirement for service interruptions exceeding 72 hours. The Board indicated that the proposed language would allow customers to have access to emergency services when voice service could not be restored within 72 hours. Specifically, the Board proposed that customers be provided wireless telephone service as an alternative form of service, unless the customer agrees otherwise, or be provided a company credit to offset the customer’s expense for another alternative.    Generally, the comments received in response to the Board’s November 1, 2016, order indicated that requiring that customers be provided a wireless telephone service as an alternative form of service for extended outages is not a practical solution. Rather, commenters offered the alternative solution of reimbursing customers for extended service outages (exceeding 72 hours) as it can be followed by all providers and will allow customers to use an alternative service of their own choosing.    The Board adopted modifications to the proposed amendments to subrule 22.6(3) by retaining the language in current subparagraph 22.6(3)“a”(3) as a new paragraph 22.6(3)“d.” The Board also modified the proposed amendments by retaining the current language in paragraph 22.6(3)“e” (relettered as paragraph 22.6(3)“b”) but changing the record-keeping requirement to two years from the current six-year requirement.    Paragraph 22.6(3)“i” currently provides requirements regarding bill adjustments for customers who have had service interruptions in excess of 24 hours. The Board proposed to rescind paragraph 22.6(3)“i.” After considering the comments regarding the proposed rescission, the Board retained the paragraph and relettered it as paragraph 22.6(3)“c”; maintaining these requirements will protect Iowa customers from extended service interruptions and provide incentive for the utility to restore service as quickly as possible. In addition, the Board agreed with the suggested reimbursement solution discussed above and adopted language in relettered paragraph 22.6(3)“d” to reflect that proposal.    The Board rescinded the requirements in subrule 22.6(4) as proposed.    Subrule 22.6(5) identifies requirements for carriers to follow in emergency situations. ICA recommended that this subrule be amended to accommodate the FCC’s newly adopted emergency operation rules in 47 CFR § 12.5. The Board proposed to eliminate paragraphs 22.6(5)“b” and “c” and amend paragraph 22.6(5)“d” since the requirements identified in these paragraphs are required by the FCC, among other requirements not identified.    The proposed amendment to paragraph 22.6(5)“d,” which requires local exchange utilities to maintain current plans for emergency operations, would clarify that these plans should be made available for Board inspection upon request. OCA commented on the proposed amendments.    The FCC issued a report on August 5, 2015, which adopted new backup-power rules pertaining to any residential landline customer, including customers served by newer technologies that are not line-powered from the central office. During a power outage, traditional copper-based telephone technology functions using battery power in the central office, but newer voice technologies that are not line-powered will not function during a power outage without other equipment. This affects all services, including access to emergency 911 (E911) services. Under the new FCC rules, service providers must disclose the power outage limitations at the point of sale and offer the subscriber the option to purchase on-site backup-power systems.    The FCC’s rules require the same emergency operations provisions as those identified in subrule 22.6(5) and more. The Board adopted the amendments to subrule 22.6(5) as they were proposed.    Subrule 22.6(6) establishes requirements for local exchange carriers with respect to the location and operation of their business offices. The Board proposed to rescind this subrule. This subrule relates specifically to a “brick and mortar” business model and does not support online business offices or call centers. Under current marketplace conditions, it is unclear whether all of the telecommunications carriers in Iowa can comply with the current rule. OCA’s comment did not provide any specific guidance as to what minimum requirements can be met by all Iowa providers. The Board found that this subrule is no longer applicable under current market conditions. Therefore, the Board adopted the rescission of this subrule as proposed.
    8.     The Board proposed nonsubstantive style changes to subrule 22.7(1), the subject matter of which relates to protective measures. In addition, the Board proposed to rescind subrule 22.7(2), which requires telecommunications utilities to adopt and execute a safety program for employee safety. The Board stated its belief that the requirement in subrule 22.7(2) is no longer necessary given that employee safety is more thoroughly regulated through federal regulations.    Since no comments were received regarding these proposed amendments, the Board adopted the style changes to subrule 22.7(1) and the rescission of subrule 22.7(2) as proposed.
    9.     The Board proposed to rescind rule 199—22.8(476), which establishes procedures for interexchange trunking service surveys for extended area services (EAS). The procedures established in rule 199—22.8(476) allow a utility to expand a local calling area and increase the associated local rates of the customers residing in the service area where the local calling would be expanded. CenturyLink has argued that the EAS procedures rule is no longer necessary due to rate deregulation and competition. Without these EAS procedures, utilities would be free to unilaterally expand local calling areas and adjust rates. The Board agrees that these procedures are out of date and are no longer necessary. The Board rescinded rule 199—22.8(476) as proposed. However, the Board clarifies its intent to grandfather existing EAS and EAS-type arrangements going forward.
    10. Since no comments were received regarding the proposed rescission of rule 199—22.9(476), the Board adopted the rescission as proposed.
    11. Since no comments were received regarding the proposed rescission of rule 199— 22.10(476), the Board adopted the rescission as proposed.
    12. Since no comments were received regarding the proposed rescission of rule 199—22.11(476), the Board adopted the rescission as proposed.
    13.     Subparagraph 22.14(2)“d”(1) requires carriers to incorporate a carrier common line charge (CCLC) in their intrastate access service tariffs. The Board proposed to clarify subparagraph 22.14(2)“d”(1) by adding the term “originating” to numbered paragraph “1.” In addition, the Board proposed to strike numbered paragraph “2” in subparagraph 22.14(2)“d”(1) to further aid in clarifying the Board’s intent regarding the application of an originating CCLC. Comments were received from CenturyLink, Sprint, ICA, Windstream, Verizon, and AT&T.    The Board’s intent with respect to this requirement remains unchanged. While the FCC is phasing out terminating access charges, originating access charges are still permitted. Since the FCC is still reviewing the future of access charges, the Board did not make any substantive changes to the CCLC requirement at this time. However, the Board found that it is appropriate to modify the subparagraph to provide clarification.    The Board considered all of the comments regarding the proposed amendments to this subparagraph and modified the subparagraph in order to make it clear that the Board’s prior actions with respect to this subparagraph were not intended to extend to CLECs that opted to use their own access tariff.    The Board did not strike 22.14(2)“d”(1)“2” and added language to clarify that competitive local exchange carriers concurring in the ICA access tariff shall deduct the originating and any remaining terminating CCLC from their intrastate access service tariffs.
    14. Since no comments were received regarding the proposed amendments to paragraph 22.14(4)“a,” subrule 22.17(1), and subrule 22.20(1), the Board adopted the proposed amendments.
    15.     Subrule 22.20(2) identifies the procedures used when revising exchange maps and modifying certificates. There are several references in this subrule to the requirement of mailing objections to the Board. However, the Board now employs an electronic filing system, the process for which is outlined in Chapter 14. The Board adopted the proposed amendments to subrule 22.20(2) to include the option of electronically filing objections with the Board in addition to mailing those objections.    No comments were received regarding this specific change. However, ICA submitted comments regarding identifying service territories.    With respect to ICA’s comments regarding the identification of a carrier’s service area, the Board acknowledges that additional steps have been added to the process for identifying a specific carrier’s service area since the removal of the requirement to file local exchange tariffs with the Board in 2014. One of the statutory changes was the elimination of retail tariff requirements for local exchange carriers.    While new or updated retail tariffs are no longer filed with the Board, the tariffs associated with certificated carriers prior to the statutory changes are still available through the Board’s electronic filing system. If a carrier has not updated or modified its service area since that time, the last tariff filed by that carrier identifies its current service area. Certificates issued after the statutory changes in 2014 identify the initial service area where a carrier is providing service. To learn if a carrier has modified or expanded its service areas, interested persons now have to search the Board’s electronic filing system for an “ES” docket assigned to a particular carrier, as established in subrule 22.20(4).    This review process does not require a change to the Board’s rules. The rules set forth the certification process and the process for modifying or expanding a service area. Board staff is available to assist interested persons in locating a particular carrier’s authorized service area.
    16.     Paragraph 22.20(3)“a” identifies the appropriate scale for paper boundary maps and boundary maps filed in an electronic format. The Board intends to have all map filings eventually filed electronically, and the proposed amendment to this paragraph requires that revisions to exchange boundary maps be filed in an electronic format.    Since no comments were received regarding this proposed amendment, the Board adopted the amendment to this paragraph as proposed.
    17. Since no comments were received regarding the rescission of rule 199—22.21(476), the Board adopted the rescission as proposed.
    18.     Subrule 22.23(2) prohibits unauthorized changes in telecommunications services, such as slamming or cramming. The subrule also identifies specific procedures that carriers must follow in order to switch services for a customer. The Board proposed to amend this subrule to match a recent FCC update adding references to electronic mail and Web pages.    No comments were received regarding the Board’s proposed amendments to subrule 22.23(2). However, comments regarding other provisions of the subrule were received from Verizon, OCA, and AARP.    In large part, rule 199—22.23(476) mirrors the FCC’s rules prohibiting unauthorized changes in service found in 47 CFR §§ 64.1100, et al. As a general practice, the Board does not adopt rules that restate federal requirements. In the case of this particular rule, however, Iowa Code section 476.103 requires that the Board adopt rules that prohibit unauthorized changes in telecommunications services and requires that the rules be consistent with the FCC regulations.    The Board understands Verizon’s concerns and agrees that in situations where a complaint against a company for an unauthorized change in service dates back ten years, it is difficult for the company to address the complaint. The current rule requires companies to maintain records regarding changes in service for two years. The Board does not believe that a time limit for filing a complaint should exceed the company’s requirement to maintain records. Therefore, the Board will continue to require companies to maintain records for two years but has added an amendment to place a time limit of two years on complaints regarding unauthorized changes in service brought under this rule. While this change extends a company’s duty to maintain records, it also eliminates a situation in which a company is defending against an unauthorized change in service without any records.    The Board has also amended subrule 22.23(2) to include language from 47 CFR § 64.1130(a) that allows carriers to obtain a signed letter of agency to demonstrate authorization or verification of a request for service change.
    19.     The Board proposed to amend paragraph 22.23(5)“c” to change the reference of credits to the state’s general fund to credits to the revolving fund. Since no comments were filed regarding this proposed amendment, the Board adopted the amendment to paragraph 22.23(5)“c” as proposed.    The revisions to the Board rules in Chapter 22 are adopted based upon an analysis of the comments made regarding the amendments that were proposed in the Notice of Intended Action and Board orders. The adopted amendments that will become effective reflect the renumbering of the Board’s rules to address the changes that have been adopted.
        After analysis and review of this rule making, the Board has concluded that the amendments, as adopted, will not have a detrimental effect on jobs in Iowa.    These amendments are intended to implement Iowa Code sections 17A.4 and 476.2.    These amendments will become effective on March 22, 2017.    The following amendments are adopted.

        ITEM 1.    Amend subrule 22.1(3) as follows:    22.1(3) Definitions.  For administration and interpretation of these rules, the following words and terms shall have the meaning indicated below:        "Active account" refers to a customer who is currently receiving telephone service, or one whose service has been temporarily disconnected (vacation, nonpayment, storm damage, etc.).        "Adjacent exchange service" is local telephone service, including extended area service, provided to a customer via direct facility connection to an exchange contiguous to the exchange in which the customer is located.        "Average busy-season, busy-hour traffic" means the average traffic volume for the busy-season, busy-hours.        "Board" means the Iowa utilities board.        "Business service" means the service furnished to customers where the use is substantially of a business, professional, institutional, or occupational nature, rather than a social and domestic nature.        "Busy-hour" means the two consecutive half hours during which the greatest volume of traffic is handled in the office.        "Busy-season" means that period of the year during which the greatest volume of traffic is handled in the office.        "Calls" means telephone messages attempted by customers or users.        "Central office" means a unit in a telephone system which provides service to the general public, having the necessary equipment and operating arrangements for terminating and interconnecting customer lines and trunks or trunks only. There may be more than one central office in a building.        "Central office access line" means a circuit extending from the central office equipment to the demarcation point.        "Channel" means an electrical path suitable for the transmission of communications.        "Check of service" "service check" means an examination, test or other method utilized to determine the condition of customer-provided terminal equipment and existing or new inside station wiring.        "Class of service" means the various categories of service generally available to customers, such as business or residence.        "Competitive Local Exchange Carrierlocal exchange carrier" "CLEC" means a utility, other than an incumbent local exchange carrier, that provides local exchange service pursuant to an authorized certificate of public convenience and necessity.        "Customer" means any person, firm, association, corporation, agency of the federal, state or local government, or legal entity responsible by law for payment for communication service from the telephone utility.        "Customer provision" means customer purchase or lease of terminal equipment or inside station wiring from the telephone utility or from any other supplier.        "Delinquent or delinquency" "delinquency" means an account for which a bill or payment agreement for regulated services or equipment has not been paid in full on or before the last day for timely payment.        "Demarcation point" means the point of connection provided and maintained by the telephone utility to which inside station wiring becomes dedicated to an individual building or facility. For an individual dwelling, this point of connection will generally be immediately adjacent to, or within 12 inches of, the protector or the dwelling side of the protector. The drop and block, including the protector, will continue to be provided by and remain the property of the telephone utility. In the instance where a physical protector does not exist at the point of cable entrance into the building or facility, the demarcation point is defined as the entrance point of the cable into the building or facilitythe physical point at which a utility’s public network ends and the customer’s personal network begins.The demarcation point defines where the utility’s responsibility for maintenance ends and the consumer’s responsibility begins.        "Disconnect" means the disabling of circuitry preventing both outgoing and incoming communications.        "Due date" means the last day for payment without unpaid amounts being subject to a late payment charge or additional collection efforts.        "Exchange" means a unit established by a telephone utility for the administration of communication services.        "Exchange service" means communication service furnished by means of exchange plant and facilities.        "Exchange service area" "exchange area" means the general area in which the telephone utility holds itself out to furnish exchange telephone service.        "Extended area service" means telephone service, furnished at flat rates, between end user customers located within an exchange area and all of the end user customers of an additional exchange area. Extended area service is only for calls both originating and terminating within the defined extended area.        "Foreign exchange service" means exchange service furnished a customer from an exchange other than the exchange regularly serving the area in which the customer is located.        "Former account" refers to a customer whose service has been permanently disconnected, and the final bill either has been paid or has been written off to the reserve for uncollectible accounts.        "Held order for primary service" means an application for establishment of primary service to a local exchange utility using its existing facilities to provide service not filled within five business days of the customer-requested date, or within 15 business days of the customer-requested date, where no facilities are available. During the period a local exchange utility provides equivalent alternative service, the customer’s order for primary service shall not be considered a held order.        "Held order for secondary service" means an application for establishment of secondary service to a local exchange utility using its facilities to provide service not filled within 30 business days or the customer-requested date, whichever is later.        "High-volume access service (HVAS)" "HVAS" is any service that results in an increase in total billings for intrastate exchange access for a local exchange utility in excess of 100 percent in less than six months. By way of illustration and not limitation, HVAS typically results in significant increases in interexchange call volumes and can include chat lines, conference bridges, call center operations, help desk provisioning, or similar operations. These services may be advertised to consumers as being free or for the cost of a long-distance call. The call service operators often provide marketing activities for HVAS in exchange for direct payments, revenue sharing, concessions, or commissions from local service providers.        "Inactive account" refers to a customer whose service has been permanently disconnected and whose account has not been settled either by payment or refund.        "Incumbent Local Exchange Carrierlocal exchange carrier" "ILEC" means a utility, or successor to such utility, that was the historical provider of local exchange service pursuant to an authorized certificate of public convenience and necessity within a specific geographic area described in maps approved by the board as of September 30, 1992.        "Information service" means the offering of a capability for generating, acquiring, storing, transforming, processing, retrieving, utilizing, or making available information via telecommunications, and includes electronic publishing, but does not include any use of any such capability for the management, control, or operation of a telecommunications system or the management of a telecommunications service.        "Interexchange service" is the provision of intrastate telecommunications services and facilities between local exchanges, and does not include EAS.        "Interexchange utility" means a utility, a resale carrier or other entity that provides intrastate telecommunications services and facilities between exchanges within Iowa, without regard to how such traffic is carried. A local exchange utility that provides exchange service may also be considered an interexchange utility.        "InterLATA toll service" means toll service that originates and terminates between local access transport areas.        "Internet protocol-enabled service" means any service, capability, functionality, or application that uses Internet protocol or any successor protocol and enables an end user to send or receive voice, data, or video communication in Internet protocol format or a successor format.        "IntraLATA toll service" means toll service that originates and terminates within the same local access transport area.        "Intrastate access services" are services of telephone utilities which provide the capability to deliver intrastate telecommunications services which originate from end-users to interexchange utilities and the capability to deliver intrastate telecommunications services from interexchange utilities to end-users.        "Local exchange service" means telephone service furnished between customers or users located within an exchange area.        "Local exchange utility" means a telephone utility that provides local exchange service under an authorized certificate of public convenience and necessity. The utility may also provide other services and facilities such as access services.        "Message" means a completed telephone call by a customer or user.        "Outside plant" means the telephone equipment and facilities installed on, along, or under streets, alleys, highways, and private rights-of-way between customer locations, central offices or the central office and customer location.        "Percentage of fill" means the ratio of circuits and equipment in use to the total available multiplied by 100.        "Premises" means the space occupied by an individual customer in a building, in adjoining buildings occupied entirely by that customer, or on contiguous property occupied by the customer separated only by a public thoroughfare, a railroad right-of-way, or a natural barrier.        "Primary service" means the initial access to the public switched network.        "Protector" means a utility-owned electrical device located in the central office, at a customer’s premises or anywhere along any telephone facilities which protects both the telephone utility’s and the customer’s property and facilities from over-voltage and over-current by shunting such excessive voltage and currents to ground.        "Rates" shall mean amounts billed to customers for local exchange service and alternative operator services.        "Retail services" means those communications services furnished by a telephone utility directly to end-user customers. For an alternative operator services companyutility, the terms and conditions of its retail services are addressed in an approved intrastate tariff. For a local exchange utility, the terms and conditions of its retail services are typically addressed in a retail catalog or other format, which is not subject to board approval.        "Secondary service" means services or facilities not classified as primary service.        "SuspendSuspension" means temporary disconnection or impairment of service which shall disable either outgoing or incoming communications, or both.        "Switching service" means switching performed for service lines.        "Tariff" means the entire body of rates, classifications, rules, procedures, policies, etc., adopted and filed with the board by a local exchange utility for wholesale services, not governed by an interconnection agreement or commercial agreement, or by an alternative operator services company for retail services, in fulfilling its role of furnishing communications services.        "Telephone station" means the telephone instrument connected to the network.        "Telephone utility" "utility" means any person, partnership, business association, or corporation, domestic or foreign, owning or operating any facilities for furnishing communications service to the public for compensation, but does not include a provider of Internet protocol-enabled service or voice over Internet protocol service with regard to the provider’s provision of such service to retail customers. The board shall not directly or indirectly regulate the entry, rates, terms, or conditions for Internet protocol-enabled service or voice over Internet protocol service, but voice over Internet protocol service may be subject to fees subsequently established by state or federal statute, rule, or requirement such as 911 or dual party relay service.        "Terminal equipment" means all telephone instruments, including pay telephone equipment, the common equipment of large and small key and PBX systems and other devices and apparatus, and associated wirings, which are intended to be connected electrically, acoustically or inductively to the telecommunication system of the telephone utility.        "Timely payment" is a payment on a customer’s account made on or before the due date shown: (1) Onon a current bill for rates and charges, or (2) by an agreement between the customer and a utility for a series of partial payments to settle a delinquent account.        "Toll connecting trunks" means a general classification of trunks carrying toll traffic and ordinarily extending between a local office and a toll office.        "Toll message" means a message made between different exchange areas for which a charge is made, excluding message rate service charges.        "Traffic" means telephone call volume, based on number and duration of calls.        "Traffic grade of service" means the decimal fraction representing the probability of a call being blocked by an all-trunks-busy condition during the average busy-season, busy-hour.        "Transitional intrastate access service" meansannual reductions affecting terminating end office access service that was subject to intrastate access rates as of December 31, 2011; terminating tandem-switched transport access service subject to intrastate access rates as of December 31, 2011; and originating and terminating dedicated transport access service subject to intrastate access rates as of December 31, 2011.        "Trouble report" means any call or written statement from a customer or user of telephone service relating to a physical defect or to difficulty or dissatisfaction with the operation of telephone facilities.        "Voice over Internet protocol service" means an Internet protocol-enabled service that facilitates real time, two-way voice communication that originates from, or terminates at, a user’s location and permits the user to receive a call that originates from the public switched network and to terminate a call on the public switched telephone network.         "Wholesale services" means those communications services furnished by one telephone utility to another provider of communications services. The terms and conditions of wholesale services may be addressed in a telephone utility’s approved intrastate access tariff, local interconnection tariff, interconnection agreement reached under Sections 251 and 252 of the federal Telecommunications Act, or in a commercial agreement reached between the providers.Nothing in this chapter shall affect, limit, modify, or expand an entity’s obligations under Sections 251 and 252 of the federal Telecommunications Act; any board authority over wholesale telecommunications rates, services, agreements, interconnection, providers, or tariffs; or any board authority addressing or affecting the resolution of disputes regarding intercarrier compensation.

        ITEM 2.    Amend subrule 22.1(4) as follows:    22.1(4) Abbreviations.  AOS—Alternative Operator ServicesEAS—Extended Area ServicePBX—Private Branch Exchange

        ITEM 3.    Amend subrule 22.2(6) as follows:    22.2(6) Information to be filed with the board.  a.    Each utility shall file with the board the name, title, address, and telephone number of the person who is authorized to receive, act upon, and respond to communications from the board in connection with the following:    (1)   a.    General management duties.    (2)   b.    Customer relations (complaints).    (3)   c.    Engineering operations.    (4)   Outages, including those occurring during nonoffice hours, pursuant to paragraph 22.2(8)“d.”    b.    A copy of a new directory being distributed to customers.

        ITEM 4.    Amend rule 199—22.3(476) as follows:

    199—22.3(476) General service requirements.  The requirements of this rule do not apply to intrastate access service.    22.3(1) Directories.  All directories published after the effective date of these rules shall conform to the following:    a.    Telephone directories shall be published not less than annually, except for good cause shown, listing the name, address and telephone number of all customers unless otherwise requested by the customer. A local exchange carrier serving an exchange may choose not to publish a telephone directory if the local exchange carrier makes arrangements for publication in a directory that is commonly available in the local exchange in question.    b.    Upon issuance, a copy of each directory shall be distributed without charge to all of the utility’s customers locally served by that directory.    c.    The year of issue or effective dates shall appear on the front cover and, if space permits, on the binding. Information pertaining to emergency calls, such as for the police and fire departments, for each exchange listed in the directory shall appear conspicuously on the front side of the first page of the directory. The directory shall also show a summary of the names of listed exchanges.    d.    The directory shall contain such instructions concerning placing local and long distance calls, calls to repair and information services, and location of telephone utility business offices as may be appropriate to the area served by the directory. A statement shall be included that the utility will verify the condition of a line if requested by a customer and whether any charge will apply. The directory must indicate how to order 900 and 976 blocking and indicate that the first block is without charge. The directory shall contain descriptions of all current N11 services.    e.    Directory assistance or intercept operators shall maintain records of all telephone numbers (except telephone numbers not listed or published at customer request) in the area for which they are responsible for furnishing information service.    f.    In the event of an error or omission in the name or number listing of a customer, that customer’s correct name and telephone number shall be furnished to the calling party either upon request to or interception by the telephone utility.    g.    When additions or changes in plant, records, or operations which will necessitate a large group of number changes are scheduled, reasonable notice shall be given to all customers so affected even though the additions or changes may be coincident with a directory issue.    h.    For any exchange in which an extended area call can terminate, the terminating exchange telephone utility shall provide all recently compiled directory listings, except listings for nonpublished or nonlisted customers, to the utility from which the extended area call originates. The telephone utility shall provide the directory listing without charge, within 30 days of receipt of a written request for those listings.    i.    In addition to the serving exchange directory listing required under 22.3(1)“a,” upon the customer’s request, an Iowa customer served by an out-of-state exchange shall be included in the directory list of one contiguous Iowa exchange of the customer’s choice. Any charge for such Iowa listing shall be paid by the serving exchange.    22.3(2) Service check.  Upon the individual customer’s request, each telephone utility shall perform a service checkup to the demarcation point, without charge to the customer.    22.3(3) Class of service.  Rescinded IAB 12/21/05, effective 1/25/06.    22.3(4) Compliance.  Rescinded IAB 12/21/05, effective 1/25/06.    22.3(5) Pay telephone services and facilities.  All telephone utilities shall make available to customers provisions for the interconnection of pay telephone equipment. A separate access line shall not be required for pay telephone equipment.    22.3(6) Extension plan.  Each utility shall develop a plan, acceptable to the board, for the extensions of facilities, where they are in excess of those included in the regular rates for service and for which the customer shall be required to pay all or part of the cost. The cost required to be paid by the customer shall be the revenue received by the telephone utility for the extension of plant and shall include a grossed-up amount for the income tax effect of such revenue. The amount of tax shall be reduced by the present value of the tax benefits to be obtained by depreciating the property in determining the tax liability. This plan must be related to the investment that prudently can be made for the probable revenue. No utility shall make or refuse to make any extensions except as permitted by the approved extension plan.    22.3(7)   Reserved.    22.3(8) Traffic rules.  Rescinded IAB 12/21/05, effective 1/25/06.    22.3(9) “Directory assistance.”  Rescinded IAB 12/21/05, effective 1/25/06.    22.(10) 22.3(1) Nonworking numbers.  All nonworking numbers shall be placed upon an adequate intercept where existing equipment allows.    22.(11) 22.3(2) Assignment of numbers.  Numbers shall be assigned in accordance with applicable Federal Communications Commission rules.    a.    No telephone number shall be reassigned to a different customer within 60 days from the date of permanent disconnect.    b.    For customers assigned a new number within the exchange, the former working number intercept shall provide the new number to a calling party for not less than 60 days or until the issuance of a new directory. No new number information shall be provided if the customer so requests.Exception: When a change in number is required by a telephone utility due to nonpayment of yellow page advertising, the intercept is not required to volunteer the new number to callers. The new number shall be provided to callers of the directory assistance operator.    c.    If the number assigned a customer results in wrong number calls sufficient in volume to be a nuisance, the number shall be changed at no charge.    22.(12) 22.3(3) Ordering and transferring of service.  All local exchange utilities shall establish terms and conditions for ordering and transferring local exchange service.    22.3(13) Basic local service.  Rescinded IAB 12/21/05, effective 1/25/06.    22.(14) 22.3(4) Adjacent exchange service.  All local exchange utilities shall allow customers to establish adjacent exchange service.    a.    The customer shall pay the full cost of establishing and maintaining the adjacent exchange service.    b.    In addition, the local exchange utility may include all or part of the following service provisions:    (1)   The customer shall subscribe to local exchange service in the primary exchange in addition to the adjacent exchange service.    (2)   All toll messages shall be placed through the primary exchange, unless there is a service outage in that exchange.    (3)   The primary exchange company shall bill for the adjacent exchange service and make appropriate settlement to the secondary exchange company, unless the primary exchange and the adjacent exchange agree to a different billing arrangement.    (4)   Adjacent exchange service shall be restricted to only the residential class of service, unless a waiver is permitted by the board for a particular customer for good cause shown.    (5)   Failure of the customer to comply with the utility’s provisions related to adjacent exchange service shall subject the customer to discontinuance of service after appropriate notice.    c.    These adjacent exchange service rules shall not affect the terms under which a customer receives adjacent exchange service, if that customer was receiving adjacent exchange service prior to the effective date of these rules.

        ITEM 5.    Amend rule 199—22.4(476) as follows:

    199—22.4(476) Customer relations.      22.4(1) Customer information.      a.    Each utility shall:    (1)   Maintain up-to-date maps, plans, or records of its entire exchange systemssystem. These maps shall be available for board examination at a location within Iowa during regular office hours and will be provided to the board upon request. These are not the same maps as the boundary maps described in subrule 22.20(3).    (2)   Whenever a residential customer or prospective residential customer requests local exchange service from a utility, and the customer indicates a desire to be informed of the lowest priced service alternatives available for local exchange service, the utility shall inform that customer of the lowest priced alternative available from that utility, based only on monthly recurring rates for flat-rated services, at the relevant location.Upon their request, inform residential or prospective residential customers who request local exchange service of the lowest-priced alternative available for local exchange service, based only on monthly recurring rates for flat-rated services at the relevant location.    (3)   Notify customers affected by a change in rates or schedule classification.    (4)   On a monthly basis, track service connection, held order, and service interruption performance by wire centers. Records will be provided upon request of the board and will be retained by the utility for two years.    (5)   Keep records on repair intervals for out-of-service trouble reports on voice services. When interruptions in service occur, service restoration priority shall be given to a residential customer who states that telephone service is essential due to an existing medical emergency of the customer, a member of the customer’s family, or any permanent resident of the premises where service is rendered.    (4)   (6)   Furnish such additional information as the customer may reasonably request.    b.    Inquiries for information or complaints to a utility shall be resolved promptly and courteously. Employees who receive customer telephone calls and office visits shall be qualified and trained in screening and resolving complaints, to avoid a preliminary recitation of the entire complaint to employees without ability and authority to act. The employee shall provide identification to the customer.Unless a customer agrees to an alternative form of notice, local exchange utilities shall notify their customers, by bill insert or notice on the bill form, of the address and telephone number where a utility representative qualified to assist in resolving the complaint can be reached. The bill insert or notice shall also include the following statement: “If (utility name) does not resolve your complaint, the service may be subject to state regulation. You may request assistance from the Iowa Utilities Board by writingto Iowa Utilities Board, 1375 E. Court Avenue, Room 69, Des Moines, Iowa 50319-0069, by calling (515)725-7321 or toll-free 1-877-565-4450, orby E-mail to customer@iub.iowa.gov.”The bill insert or notice on the bill will be provided no less than annually. A telephone utility which provides local exchange service and issues an annual directory shall publish the information set forth above in its directory in addition to a mailing.    c.    A telephone utility that chooses to no longer provide or distribute a printed directory shall annually inform customers of where they can access a current online directory and that they can still receive current printed directories free of charge upon customer request through a toll-free number.    22.4(2) Customer deposits.  Each utility may require from any customer or prospective customer a deposit intended to guarantee payment of bills for service based on the customer’s credit history. No deposit other than for local exchange service is required to obtain local exchange service. The deposit must reflect the limits as to low-income customers in 199—subparagraph 39.3(2)“b”(4).Pursuant to 47 CFR § 54.401(c), utilities may not collect a deposit in order to initiate voice-only Lifeline service to qualifying customers.    a.    Deposits for local exchange service shall not be more in amount than the maximum charge for two months of local exchange service, or as may reasonably be required by the utility in cases involving service for short periods of time or special occasions. The deposit amounts must also reflect the limits as to low-income customers in 199—subparagraph 39.3(2)“b”(4).Pursuant to 47 CFR § 54.401(c), utilities may not collect a deposit in order to initiate voice-only Lifeline service to qualifying customers.    b.    Interest on customer deposits. Interest on such deposits shall be computed at 4.0 percent per annum, compounded annually. Interest shall be paid for the period beginning with the date of deposit to the date of refund or to the date that the deposit is applied to the customer’s account, or to the date the customer’s bill becomes permanently delinquent. The date of refund is that date on which the refund or the notice of deposit refund is forwarded to the customer’s last-known address. The date a customer’s bill becomes permanently delinquent, relative to an account treated as an uncollectible account, is the most recent date the account became delinquent.    c.    Each utility shall keep records to show:    (1)   The name and address of each depositor.    (2)   The amount and date of the deposit.    (3)   Each transaction concerning the deposit.    d.    Each utility shall issue a receipt of deposit to each customer from whom a deposit is received. An itemized statement on the customer’s bill may be considered an appropriate receipt. Each utility shall also provide means whereby a depositor may establish claim if the receipt is lost.    e.    The deposit shall be refunded after not more than 12 consecutive months of prompt payment (which may be 11 timely payments and one automatic forgiveness of late payment). The account shall be reviewed after 12 months of service and if the deposit is retained it shall again be reviewed at the end of the utility’s accounting year or on the anniversary date of the account.    f.    Unclaimed deposits. The utility shall make a reasonable effort to return each unclaimed deposit and accrued interest after the termination of the services for which the deposit was made. The utility shall maintain a record of deposit information for at least two years or until such time as the deposit, together with accrued interest, escheats to the state pursuant to Iowa Code section 556.4, at which time the record and deposit, together with accrued interest less any lawful deductions, shall be sent to the state treasurer pursuant to Iowa Code section 556.11.    g.    Unclaimed deposits, together with accrued interest, shall be credited to an appropriate account.    h.    A new or additional deposit for local exchange service may be required to cover the amount provided in “a” above when a deposit has been refunded or the customer’s payment history demonstrates a deposit is or continues to be appropriate. Written or verbal notice shall be provided advising the customer of any new or additional deposit requirement. The customer shall have no less than 12 days from the date of written or verbal notice to comply. The new or additional deposit may be payable electronically or by cash or check at any of the utility’s business offices or local authorized agents. An appropriate receipt shall be provided. No written notice is required to be given of a deposit required as a prerequisite for commencing initial service.    i.    A customer who fails to pay a new or additional deposit for local exchange service may be disconnected under the provisions of the written notice and 22.4(5).    22.4(3) Customer billing, timely payment, late payment charges, payment and collection efforts.  Each utility shall comply with these minimum standards.    a.    Billing to customers shall be scheduled monthly except upon mutual agreement of the customer and utility. A utility with unusual circumstances may obtain authority from the board for billing at other than monthly intervals.    b.    Rescinded IAB 2/6/91, effective 3/13/91.    c.    Paper bills shall be issued and delivered via U.S. mail unless the customer agrees to electronic or other billing terms specified by customer agreement. Except as otherwise noted, the requirements of this subrule apply to both paper and electronic bills. The bill form or a bill insert shall provide the following information:    (1)   The bill date and the bill due date for local exchange services, service charges, and other telecommunications services.    (2)   The last date for timely payment shall be clearly shown and shall be not less than 20 days after the bill is rendered. For a paper bill, the bill shall be considered rendered to the customer when deposited in the U.S. mail with postage prepaid. For an electronic bill, the bill shall be considered rendered to the customer on the date of transmission to the last-known E-mail address or as otherwise defined in an agreement between the customer and utility. If the delivery of a paper bill is by other than U.S. mail, the bill shall be considered rendered when delivered to the last-known address of the party responsible for payment. If a bill cannot be transmitted electronically, the utility shall issue a paper bill. The utility may charge an appropriate amount for the distribution of a paper bill so long as the same amount is discounted should the customer choose electronic billing. When a customer changes from paper billing to electronic billing, the utility shall be allowed one complete billing cycle to make adjustments for electronic billing credits.    (3)   Bills to customers shall be rendered regularly and shall contain a clear listing of all charges. A written, itemized listing of the services to which the customer subscribes and the monthly rates for those services shall be provided as part of the initial bill or when service is ordered and subsequently upon reasonable request of the customer.    (4)   Each disconnection notice shall state that access to local exchange service shall not be denied for failure to pay for deregulated services.    (5)   The requirements of subparagraph (1) above shall not apply to calls billed by interexchange utilities, including AOS companies.    (6)   The requirements of subparagraphs (2), (3) and (4) above shall not apply to calls billed to a commercial credit card.    d.    Rescinded IAB 6/3/09, effective 7/8/09.    e.    Unless the terms of a multistate customer contract state otherwise, when the customer makes a partial payment in a timely manner, and does not designate the service or product for which payment is made, the payment shall first be applied to the undisputed balance for local exchange service. If an amount remains, it may then be applied to other services.    f.    Each account shall be granted not less than one complete forgiveness of a late payment charge each calendar year. The utility’s rules shall be definitive that on one monthly bill in each period of eligibility, the utility will accept the net amount of such bill as full payment for such month after expiration of the net payment period. The rules shall state how the customer is notified the eligibility has been used. Complete forgiveness prohibits any effect upon the credit rating of the customer or collection of late payment charge.    g.    All residential customers shall be permitted to have a last date for timely payment changeable for cause in writing; such as, but not limited to, 15 days following the approximate date each month upon which income is received by the person responsible for payment.    h.    Maximum payment required for installation and activation of local exchange service shall comply with the total derived in accord with these rules.    (1)   An applicant for local exchange service who is required to make a deposit to guarantee payment of bills may be required to pay the service charges and deposit prior to obtaining services.    (2)   The amounts required must comply with 22.4(2), 22.4(5) and 22.4(7).    i.    Maximum payments required by an active account or inactive account, for restoration of service of the same class and location as existed prior to disconnection, shall be the total of charges derived for reconnection and must comply with 22.4(2), 22.4(5) and 22.4(7).    j.    The utility may initiate collection efforts with the issuance of a final bill when the termination of service is at the customer’s request. For all other bills no collection effort other than rendering of the bill shall be undertaken until the delinquency date.    k.    Undercharges. The time period for which a utility may back bill a customer for undercharges shall not exceed five years unless otherwise ordered by the board.    l.    Overcharges. The time period for which the utility is required to refund or credit the customer’s bill shall not exceed five years unless otherwise ordered by the board. Refunds to current customers may be in the form of bill credits, unless the refund exceeds $50 and the customer requests a refund in the same manner by which the bill was originally paid. Refunds to former customers may be made in the same manner by which the bill was originally paid. Refunds for local exchange service may not be applied to unpaid amounts for unregulated services.    22.4(4) Customer complaints.      a.    Complaints concerning the charges, practices, facilities, or service of the utility shall be investigated promptly and thoroughly. The utility shall keep a record of such complaint showing the name and address of the complainant, the date and nature of the complaint, its disposition, and all other pertinent facts dealing with the complaint, which will enable the utility to review and analyze its procedure and actions. The records maintained by the utility under this rule shall be available for a period of two years for inspection by the board or its staff upon request.    b.    Each utility shall develop a concise, fully informative procedure for the resolution of all customer complaints.    c.    The utility shall take reasonable steps to ensure that customers shall not be denied the right to be heard.    d.    The final step in the resolution of a complaint shall be a filing for board resolution of the complaint issues pursuant to 199—Chapter 6.    22.4(5) Refusal or disconnection of service.  Notice of a pending disconnection shall be rendered and local exchange service shall be refused or disconnected as set forth in these rules. The notice of pending disconnection required by these rules shall be a written notice setting forth the reason for the notice and the final date by which the account is to be settled or specific action taken.The notice shall be considered rendered to the customer when deposited in the U.S. mail with postage prepaid. If delivery is by other than U.S. mail, the notice shall be considered rendered when delivered to the last-known address of the person responsible for payment for the service. The final date shall be not less than five days after the notice is rendered.One written notice, including all reasons for the notice, shall be given where more than one cause exists for refusal or disconnection of service. This notice shall include a toll-free or collect number where a utility representative qualified to provide additional information about the disconnection can be reached. The notice shall also state the final date by which the account is to be settled or other specific action taken. In determining the final date, the days of notice for the causes shall be concurrent.Service may be refused or disconnected for any of the reasons listed below. Unless otherwise stated, the customer shall be provided notice of the pending disconnection and the rule violation which necessitates disconnection. Furthermore, unless otherwise stated, the customer shall be allowed a reasonable time in which to comply with the rule before service is disconnected. Except as provided in 22.4(5)“a,” “b,” “c,” “d,” and “e,” no service shall be disconnected on the day preceding or the day on which the utility’s local business office or local authorized agent is closed. Service may be refused or disconnected:    a.    Without notice in the event of a condition on the customer’s premises determined by the utility to be hazardous.    b.    Without notice in the event of customer’s use in such a manner as to adversely affect the utility’s equipment or the utility’s service to others.    c.    Without notice in the event of tampering with equipment furnished and owned by the utility.    d.    Without notice in the event of unauthorized use.    e.    For violation of or noncompliance with the board’s rules, the requirements of municipal ordinances or law pertaining to the service.    f.    For failure of the customer or prospective customer to furnish service equipment, permits, certificates or rights-of-way specified by the utility as conditions for obtaining service, or for the withdrawal of that same equipment or the termination of those permissions or rights, or for the failure of the customer or prospective customer to fulfill the contractual obligations imposed as conditions of obtaining service.    g.    For failure of the customer to permit the utility reasonable access to its equipment.    h.    For nonpayment of bill or deposit, except as restricted by 22.4(7), provided that the utility has made a reasonable attempt to effect collection and:    (1)   Has provided the customer with 5 days’ prior written notice with respect to an unpaid bill and 12 days’ prior written notice with respect to an unpaid deposit, as required by this rule; disconnection may take place prior to the expiration of the 5-day unpaid bill notice period if the utility determines, from verifiable data, that usage during the 5-day notice period is so abnormally high that a risk of irreparable revenue loss is created.    (2)   Is prepared to reconnect the same day if disconnection is scheduled for a weekend, holiday or after 2 p.m.    (3)   In the event of a dispute concerning the bill, the utility may require the customer to pay a sum of money equal to the amount of the undisputed portion of the bill. Following payment of the undisputed amount, efforts to resolve the complaint shall continue and for not less than 45 days after the rendering of the disputed bill, the service shall not be disconnected for nonpayment of the disputed amount. The 45 days may be extended by up to 60 days if requested of the utility by the board in the event the customer files a written complaint with the board.    22.4(6) Medical emergency.  Disconnection of a residential customer shall be postponed 30 days if an existing medical emergency of the customer, a member of the customer’s family, or any permanent resident of the premises where service is rendered would present an especial danger to the health of any permanent resident of the premises. Indicators of an especial danger to health include, but are not limited to: age; infirmity; mental incapacitation; serious illness; physical disability, including blindness and limited mobility; and any other factual circumstance which may indicate a severe or hazardous health situation. The telephone utility may require written verification of the especial danger to health by a physician or a public health official, including the name of the person endangered, and a statement that the person is a resident of the premises in question. Initial verification may be by telephone, but the telephone utility may require a written verification within 5 days of the verification of the especial health danger by the physician or a public health official, including the name of the person endangered and a statement that the person is a resident of the premises in question. If the service has been disconnected within 14 days prior to verification of illness for a qualifying resident, service shall be restored to that residence if a proper verification is thereafter made in accordance with the foregoing provisions. If the customer does not make payment during the 30-day period, the service is then subject to disconnection pursuant to subrule 22.4(5).    22.4(7) Insufficient reasons for refusal, suspension, or discontinuance of service.  The following shall not constitute sufficient cause for refusal, suspension, or discontinuance of local exchange service to a present or prospective customer:    a.    Delinquency in payment for service by a previous occupant of the premises to be served.    b.    Failure to pay for terminal equipment, inside station wiring or other merchandise purchased from the utility.    c.    Failure to pay for a different type or class of public utility service.    d.    Failure to pay the bill of another customer as guarantor thereof.    e.    Permitting another occupant of the premises access to the telephone utility service when that other occupant owed an uncollectible bill for service rendered at a different location.    f.    Failure to pay for yellow page advertising.    g.    Failure to pay for deregulated services other than local exchange service.    22.4(8) Temporary service.  When the utility renders temporary service to a customer, it may require that the customer bear all the cost of installing and removing the service facilities in excess of any salvage realized.

        ITEM 6.    Rescind and reserve rule 199—22.5(476).

        ITEM 7.    Amend rule 199—22.6(476) as follows:

    199—22.6(476) Standards of quality of service.  The local exchange utility using its facilities to provide primary service will measure its service connection, held order, and service interruption performance monthly according to subrules 22.6(1), 22.6(2), and 22.6(3). Records of the measurements and any summaries thereof, by individual wire centers, will be provided upon request of the board. Records of these measurements will be retained by the utility for two years.    22.6(1) Service connection.  Each local exchange utility using its facilities to provideproviding local exchange service shall make all reasonable efforts to maintain a five-business-day standard for primarythe connectionof voice service or withinby the customer-requestedvoice service connection date. All reasonable efforts to maintain the above standard shall be measured by the following:    a.    Eighty-five percent of all customers provided service within five business days of the request or the customer-requested date, whichever is later. Compliance will be measured based on a three-month rolling average.    b.    Ninety-five percent of all customers provided service within ten business days of the request or the customer-requested date, whichever is later. Compliance will be measured based on a three-month rolling average.c.    Ninety-nine percent of all customersshall be provided service within 30 business days of the request or the customer-requested date, whichever is later. Compliance will be measured based on a three-month rolling average.    22.6(2) Held orders.      a.    During such period of time as a local exchange utility using its facilities to provideproviding local exchange voice service may not be able to supply primary telephone service to prospective customers within five business days after the date applicant desires service, the telephone utility shall keep a record, by exchanges, showing the name and address of each applicant for service, the date of application, the date that service was requested, and the class of service applied for, together with the reason for the inability to provide new service to the applicant.    b.    When, because of a shortage of facilities, a utility is unable to supply primary telephonevoice service on the date requested by applicantsthe applicant, first priority shall be given to furnishing those services which are essential to public health and safety. In cases of prolonged shortage or other emergency, the board may require establishment of a priority plan, subject to its approval for clearing held orders, and may request periodic reports concerning the progress being made.    c.    When the local exchange utility using its facilities to provide service fails to provide primary local exchange service to any customer requesting service within 15 business days, the local exchange utility shall provide the customer with an alternative form of service until primary local exchange service can be provided. The alternative form of service provided shall be wireless telephone service unless the customer agrees otherwise.    d.    If an alternative form of primary service is provided, the local exchange utility is authorized to charge the customer the regular rates (if applicable) for the alternative primary service ordered, if such rates are less than the regulated rate for primary local exchange service. Otherwise, the customer will be charged the regulated rate for primary local exchange service. Where an alternative form of service is impossible to provide, the facilities-based local exchange utility shall waive all usual installation charges and, once primary local exchange service is provided, shall credit the customer’s account in an amount equal to the pro-rata monthly primary local exchange charge for each day service was not provided.    22.6(3) Service interruption.      a.    Each telephone utility using its facilities to provide primaryproviding local exchange voice service shall make all reasonable efforts to prevent interruptions of service. When interruptions are reported or found by the utility to occur, the utility shall reestablish service with the shortest possible delay. Priority shall be givento services which are essential to public health and safety and to a residential customer who states that telephone service is essential due to an existing medical emergency of the customer, a member of the customer’s family, or any permanent resident of the premises where service is rendered. All reasonable efforts shall be measured by the following:Ninety-nine percent of all out-of-service trouble reports shall be cleared within 72 hours.    (1)   Eighty-five percent of all out-of-service trouble reports cleared within 24 hours. Compliance will be measured based on a three-month rolling average.    (2)   Ninety-five percent of all out-of-service trouble reports cleared within 48 hours. Compliance will be measured based on a three-month rolling average.    (3)   One hundred percent of all out-of-service trouble reports cleared within 72 hours.    (4)   The response time for all utilities responsible to test and attempt to correct any interexchange trunk problem, except a total outage, shall be within 24 hours after the problem is reported. If the problem is not corrected within that time, the utility responsible for doing so shall keep all other affected telephone utilities advised as to the current status on a daily basis. For a total outage, the response time shall be immediate.    b.    Arrangements shall be made to have adequate personnel and equipment available to receive and record trouble reports and also to clear trouble of an emergency nature at all times.    c.    Calls directed to the published telephone numbers for service repair or the business offices of the telephone utility shall be acknowledge within 20 seconds for 85 percent of all such calls and within 40 seconds for 100 percent of all such calls.    d.    If a customer’s service must be interrupted due to maintenance, the utility shall notify the affected customer, in advance, if possible. The company shall perform the work to minimize inconvenience to the customer and strive to avoid interruptions when there is conversation on the line.    e.    b.    Each telephone utility shall keep a written record showing all interruptions affecting service in a major portion of an exchange area for a minimum of sixtwo years. This record shall show the date, time, duration, time cleared and extent and cause of the interruption. This record shall be available to the board upon request.    f.    Whenever a trouble report is received, a record shall be made by the company and if repeated within a 30-day period by the same customer, the case shall be referred to an individual for permanent correction.    g.    When a customer’s service is reported or is found to be out of order, it shall be restored as promptly as possible.    h.    Each local exchange utility using its facilities to provide service shall maintain its network to reasonably minimize customer trouble reports. The rate of customer trouble reports on the company side of the demarcation point will not exceed four per 100 access lines per month per wire center.    i.    c.    When a subscriber’s service is interrupted and remains out of service for more than 24 consecutive hours after being reported to the local exchange company or being found by the company to be out of order, whichever occurs first, the company shall make appropriate adjustments to the subscriber’s account. This rulerequirement does not apply if the outage occurs as a result of:    (1)   A negligent or willful act on the part of the subscriber;    (2)   A malfunction of subscriber-owned telephone equipment;    (3)   Disasters or acts of God; or    (4)   The inability of the company to gain access to the subscriber’s premises.The adjustment, either a direct payment or a bill credit, shall be the proportionate part of the monthly charges for all services and facilities rendered inoperative during the interruption. The adjustment shall begin with the hour of the report or discovery of the interruption. Adjustments not in dispute shall be rendered within two billing periods after the billing period in which the interruption occurred.    d.    When the company fails to restore voice service to any customer within 72 hours after the problem is reported or is found by the company to be out of order, the company shall, at the company’s option:    (1)   Credit the customer’s account in an amount equal to the pro rata monthly local exchange service charge for each 24-hour day service was not provided, or    (2)   Directly reimburse the customer in a like amount to be used toward an alternative form of service.    e.    The standards within these rules establish the minimum acceptable quality of service under normal operating conditions. They do not establish a level of performance to be achieved during the periods of emergency or of a catastrophe affecting large numbers of customers, nor do they apply to extraordinary or abnormal conditions of operation, such as those resulting from work stoppage, civil unrest, or other events.    22.6(4) Repair—missed appointments.  When a utility makes an appointment for installation or repair within a given range of time, and misses that appointment by over an hour, the customer will receive one month’s primary local service free of charge. This is applicable to each missed appointment.    22.(5) 22.6(4) Emergency operation.      a.    Each telephone utility shall make reasonable provisions to meet emergencies resulting from failures of power service, climate control, sudden and prolonged increases in traffic, illness of operators, or from fire, explosion, water, storm, or acts of God, and each telephone utility shall inform affected employees, at regular intervals not to exceed one year, of procedures to be followed in the event of emergency in order to prevent or mitigate interruption or impairment of telephone service.    b.    All central offices shall have adequate provision for emergency power. Each central office shall contain a minimum of two hours of battery reserve. For offices without permanently installed emergency power facilities, there shall be access to a mobile power unit with enough capacity to carry the load which can be delivered on reasonably short notice and which can be readily connected.    c.    An auxiliary power unit shall be permanently installed in all toll centers and at all exchanges exceeding 4,000 access lines.    d.    b.    Each local exchange utility shall maintain and make available for board inspection, upon request, its current plans for emergency operations, including the names and telephone numbers of the local exchange utility’s disaster services coordinator and alternates.    22.6(6) Business offices.      a.    Each local exchange utility shall have one or more business offices or customer service centers staffed to provide customer access to qualified personnel, including supervisory personnel where warranted, to provide information relating to services and rates, accept and process applications for service, explain charges on customers’ bills, adjust charges made in error, and, generally, to act as representatives of the local exchange utility. If one business office serves several exchanges, toll-free calling from those exchanges to that office shall be provided.    b.    Upon the closing of any local exchange utility’s public business office, the company must provide to the board, in writing, at least 30 days prior to the closing of the office the following information:    (1)   The exchange(s) and communities affected by the closing;    (2)   The date of the closing;    (3)   A listing of other methods and facility locations available for payment of subscribers’ bills in the affected exchanges; and    (4)   A listing of other methods and locations available for obtaining public business office services.

        ITEM 8.    Amend rule 199—22.7(476) as follows:

    199—22.7(476) SafetyProtective measures.      22.7(1) Protective measures.      22.() 22.7(1)   a.    Each utility shall exercise reasonable care to reduce the hazards to which its employees, its customers or users and the general public may be subjected.    22.() 22.7(2)   b.    The utility shall give reasonable assistance to the board in the investigation of the cause of accidents and in the determination of suitable means of preventing accidents.    22.() 22.7(3)   c.    Each utility shall maintain a summary of all reportable accidents arising from its operations.    22.7(2) Safety program.  Each utility shall adopt and execute a safety program, fitted to the size and type of its operations. As a minimum, the safety program should:    a.    Require employees to use suitable tools and equipment in order that they may perform their work in a safe manner.    b.    Instruct employees in safe methods of performing their work.    c.    Instruct employees who, in the course of their work, are subject to the hazard of electrical shock, asphyxiation or drowning, in accepted methods of artificial respiration.

        ITEM 9.    Rescind and reserve rule 199—22.8(476).

        ITEM 10.    Rescind and reserve rule 199—22.9(476).

        ITEM 11.    Rescind and reserve rule 199—22.10(476).

        ITEM 12.    Rescind and reserve rule 199—22.11(476).

        ITEM 13.    Amend subparagraph 22.14(2)"d" as follows:    (1)   Carrier common line charge. The rate for the intrastate carrier common line charge shall be three cents per access minute or fraction thereof for the originating segments of the communication unless a lower rate is required by the transitional intrastate access service reductions or if numbered paragraphs “1” and “2” are applicable. The carrier common line charge shall be assessed to exchange access made by an interexchange telephone utility, including resale carriers. In lieu of this charge, interconnected private systems shall pay for access as provided in 22.14(1)“b.”
    1. Incumbent local exchange carrier intrastate access service tariffs shall include the carrier common line charges approved by the board.
    2. A competitive local exchange carrierthat concurs in or mirrors the rates in the access services tariff of the Iowa Communications Alliance, or its successor, shall deduct theoriginating and terminating carrier common line chargecharges from its intrastate access service tariff.

        ITEM 14.    Amend subrule 22.14(4) as follows:    22.14(4) Notice of intrastate access service tariffs.      a.    Each telephone utility that files new or changed tariffs relating to access charges,or access service, or the recording function associated with billing and collection for access services shall give written notice of the new or changed tariffs to the utility’s interexchange utility access customers, the board, and the consumer advocate. Notice shall be given on or before the date ofthe filing of the tariff. The notice shall consist of: the file date, the proposed effective date, a description of the proposed changes, and the tariff section number where the service description is located. If two or more local exchange utilities concur in a single tariff filing, the local exchange utilities may send a joint written notice to the board, consumer advocate, and the interexchange utilities.    b.    The board shall not approve any new or changed tariff described in paragraph “a” until after the period for resistance provided in subrule 22.14(5), paragraph “a.”

        ITEM 15.    Amend subrule 22.17(1) as follows:    22.17(1)   Any landlord, owner, tenant association, or otherwise affiliated group shall be permitted to provide communications services within or between one or more buildings with a community of interest. The provision of this service will be treated as a deregulated service, if the following requirements are met:    a.    No person within a building or facility providing resale services shall be denied access to the local exchange carrier. The local exchange carrier shall provide service at normal tariffed rates to the point of demarcation. The end-user shall be responsible for service beyond that point. However, no person shall unreasonably inhibit the end-user’s access to the local exchange carrier.    b.    Telephone rates charged to resale providers of communications services under this rule shall be made on the same basis as business service.    c.    b.    “Community of interest” will normally be indicated by joint or common ownership, but any other relevant factors may be considered.

        ITEM 16.    Amend subrule 22.20(1) as follows:    22.20(1) Issuance of certificates of authority to utilities on or prior to September 30, 1992.  The initial nonexclusive certificate of authority will be issued by the board on or before September 30, 1992, to each land-line telephone utility providing local telecommunications service in Iowa. The certificate will authorize service within the territory as shown by boundary maps in effect on January 1, 1992, but will reference and include modifications approved by the board prior to the issuance of the certificate. The certificate will be in the form of an order issued by the board and may be modified only by subsequent board orders.If a utility disputes the boundary identified in the January 1, 1992, maps or in a certificate, it may file an objection with the board. After notice to interested persons and an opportunity for hearing, the board will determine the boundary.

        ITEM 17.    Amend subrule 22.20(2) as follows:    22.20(2) Procedures to revise maps and modify certificates.  All territory in the state shall be served by a local exchange utility and inappropriate overlaps of service territories are to be avoided.    a.    When the board, after informal investigation, determines a significant gap or overlap exists on the maps on file defining service territories, affected utilities and interested persons, including affected customers, will be notified. The board will direct the affected utilities to file a proposed boundary within 30 days, if the utilities can agree.    b.    The boundary filing must include the name of each affected customer and justification for the proposed boundary, including a detailed statement of why the proposal is in the public interest. Prior to filing with the board, the serving utilities must notify interested persons of a convenient location where they can view the current and proposed maps, or copies of the maps covering their location must be mailed to them. The notice shall state the nature of the boundary filing and that any objections must befiled with the board through its electronic filing system or mailed to the board postmarked within 14 days of the mailing of the notice by the utility. The utility’s filing shall also include a copy of the notice and the date on which the notice was mailed to customers.    c.    Upon board approval of the proposed boundary, the affected utilities shall file revised maps which comply with subrule 22.20(3) and, upon approval of the maps, the board will modify the certificates.    d.    If the utilities cannot agree on the boundary, or if an interested person timelyfiles in the board’s electronic filing system or mails material objections to the proposed boundary, the board will resolve the issues in contested case proceedings to revise the maps and modify the certificates after notice of the proceedings to all affected utilities and interested persons.    e.    A voluntary modification petition filed jointly by all affected utilities pursuant to 1992 Iowa Acts, Senate File 511, shall contain the information required in 22.20(2)“b.” The notice and hearing requirements in 22.20(2)“b” through “d” shall be observed in voluntary modification proceedings.    f.    A post-January 1, 1992, map will not be effective in defining a utility’s service territory until approved by the board.

        ITEM 18.    Amend paragraph 22.20(3)"a" as follows:    a.    If a utility filesThe scale of a paper boundary map, the map shall be on a scale of one inch to the mile. If a utility files a boundary map in an electronic format, the relevant scale shall be noted in the filing.Any revisions to a utility’s boundary map shall be filed in an electronic format. Boundary maps shall include information equivalent to the county maps which are available from the Iowa department of transportation, showing all roads, railroads, waterways, plus township and range lines outside the municipalities. A larger scale shall be used where necessary to clarify areas. All map details shall be clean-cut and readable.    (1)   Each filed map shall clearly show the ultimate utility boundary line; this line shall be periodically marked with the letter “U.” Exchange boundaries where the utility’s own exchanges abut shall be periodically marked with the letter “E.” Ultimate and exchange boundary lines shall be drawn on a section, half-section, or quarter-section line. If not, the distance from a section line or other fixed reference point shall be clearly noted. When using a fixed reference point, measurement shall always be from the center of the fixed point.    (2)   The map shall also identify the utility serving each contiguous exchange. The utility names shall be placed about the exterior of the ultimate boundary. The points at which the adjacent exchange meets the ultimate boundary will be marked with arrows.    (3)   Plant facilities shall not be shown on the boundary map. Approximate service locations may be shown but are not required.    (4)   The name of the utility filing the map shall be placed in the upper right corner of the map. This will be followed by the names of each exchange shown on the map and served by that utility. The last item will be the date the map is filed and the proposed effective date, which will be 30 days after the filing date unless the board sets a different date.

        ITEM 19.    Rescind and reserve rule 199—22.21(476).

        ITEM 20.    Amend subrule 22.23(2) as follows:    22.23(2) Prohibition of unauthorized changes in telecommunications service.  Unauthorized changes in telecommunications service, including but not limited to cramming and slamming, are prohibited.    a.    Verification required.No service provider shall submit a preferred carrier change order or other change in service order to another service provider unless and until the change has first been confirmed in accordance with one of the following procedures:    (1)   The service provider has obtained the customer’s written authorization in a form that meets the requirements of 199 IAC 22.23(2)“b”; or    (2)   The service provider has obtained the customer’s electronic authorization to submit the preferred carrier change order. Such authorization must be placed from the telephone number(s) on which the preferred carrier is to be changed and must confirm the information required in subparagraph (1) above. Service providers electing to confirm sales electronically shall establish one or more toll-free telephone numbers exclusively for that purpose. Calls to the number(s) will connect a customer to a voice response unit, or similar mechanism that records the required information regarding the preferred carrier change, including automatically recording the originating automatic numbering identification; or    (3)   An appropriately qualified independent third party has obtained the customer’s oral authorization to submit the preferred carrier change order that confirms and includes appropriate verification data. The independent third party must not be owned, managed, controlled, or directed by the service provider or the service provider’s marketing agent; must not have any financial incentive to confirm preferred carrier change orders for the service provider or the service provider’s marketing agent; and must operate in a location physically separate from the service provider or the service provider’s marketing agent. The content of the verification must include clear and conspicuous confirmation that the customer has authorized a preferred carrier change; or    (4)   The local service provider may change the preferred service provider, for customer-originated changes to existing accounts only, through maintenance of sufficient internal records to establish a valid customer request for the change in service. At a minimum, any such internal records must include the date and time of the customer’s request and adequate verification of the identification of the person requesting the change in service. The burden will be on the telecommunications carrier to show that its internal records are adequate to verify the customer’s request for the change in service.All verifications shall be maintained for at least two years from the date the change in service is implemented, and all complaints regarding a change in preferred service provider must be brought within two years of the date the change in service is implemented. Verification of service freezes shall be maintained for as long as the preferred carrier freeze is in effect.    (5)   For other changes in service resulting in additional charges to existing accounts only, a service provider shall establish a valid customer request for the change in service through maintenance of sufficient internal records. At a minimum, any such internal records must include the date and time of the customer’s request and adequate verification under the circumstances of the identification of the person requesting the change in service. Any of the three verification methods in 22.23(2)“a”(1) to (3) will also be acceptable. The burden will be on the telecommunications carrier to show that its internal records are adequate to verify the customer’s request for the change in service. Where the additional charge is for one or more specific telephone calls, examples of internal records a carrier may submit include call records showing the origin, date, time, destination, and duration of the calls, and any other data the carrier relies on to show the calls were made or accepted by the customer, along with an explanation of the records and data.    b.    Letter of agency form and content.    (1)   A service provider may use a letter of agency to obtain written authorization or verification of a customer’s request to change the customer’s preferred service provider selection. A letter of agency that does not conform with this subrule is invalid for purposes of this rule.    (2)   The letter of agency shall be a separate document (or an easily separable document) containingor located on a separate screen or Web page and contain only the authorizing language described in subparagraph (5) below having the sole purpose of authorizing a service provider to initiate a preferred service provider change. The letter of agency must be signed and dated by the customer to the telephone line(s) requesting the preferred service provider change.A local exchange carrier may use a written or electronically signed letter of agency to obtain authorization or verification of a subscriber’s request to change service.    (3)   The letter of agency shall not be combined on the same document, screen, or Web page with inducements of any kind.    (4)   Notwithstanding subparagraphs (2) and (3) above, the letter of agency may be combined with checks that contain only the required letter of agency language as prescribed in subparagraph (5) below and the necessary information to make the check a negotiable instrument. The letter of agency check shall not contain any promotional language or material. The letter of agency check shall contain, in easily readable, boldface type on the front of the check, a notice that the customer is authorizing a preferred service provider change by signing the check. The letter of agency language shall be placed near the signature line on the back of the check.    (5)   At a minimum, the letter of agency must be printed with a type of sufficient size and readable type to be clearly legible and must contain clear and unambiguous language that confirms:
    1. The customer’s billing name and address and each telephone number to be covered by the preferred service provider change order;
    2. The decision to change the preferred service provider from the current service provider to the soliciting service provider;
    3. That the customer designates [insert the name of the submitting service provider] to act as the customer’s agent for the preferred service provider change;
    4. That the customer understands that only one service provider may be designated as the customer’s interstate or interLATA preferred interexchange service provider for any one telephone number. To the extent that a jurisdiction allows the selection of additional preferred service providers (e.g., local exchange, intraLATA/intrastate toll, interLATA/interstate toll, or international interexchange), the letter of agency must contain separate statements regarding those choices, although a separate letter of agency for each choice is not necessary; and
    5. That the customer understands that any preferred service provider selection the customer chooses may involve a charge to the customer for changing the customer’s preferred service provider.
        (6)   Any service provider designated in a letter of agency as a preferred service provider must be the service provider directly setting the rates for the customer.    (7)   Letters of agency shall not suggest or require that a customer take some action in order to retain the customer’s current service provider.    (8)   If any portion of a letter of agency is translated into another language, then all portions of the letter of agency must be translated into that language. Every letter of agency must be translated into the same language as any promotional materials, oral descriptions or instructions provided with the letter of agency.
        c.    Customer notification.Every change in service shall be followed by a written notification to the affected customer to inform the customer of the change. Such notice shall be provided within 30 days of the effective date of the change. Such notice may include, but is not limited to, a conspicuous written statement on the customer’s bill, a separate mailing to the customer’s billing address, or a separate written statement included with the customer’s bill. Each such statement shall clearly and conspicuously identify the change in service, any associated charges or fees, the name of the service provider associated with the change, and a toll-free number by which the customer may inquire about or dispute any provision in the statement.    d.    Preferred carrier freezes.    (1)   A preferred service provider freeze (or freeze) prevents a change in a customer’s preferred service provider selection unless the customer gives the service provider from whom the freeze was requested express consent. All local exchange service providers who offer preferred service provider freezes must comply with the provisions of this subrule.    (2)   All local exchange service providers who offer preferred service provider freezes shall offer freezes on a nondiscriminatory basis to all customers, regardless of the customer’s service provider selections.    (3)   Preferred service provider freeze procedures, including any solicitation, must clearly distinguish among telecommunications services (e.g., local exchange, intraLATA/intrastate toll, interLATA/interstate toll, and international toll) subject to a preferred service provider freeze. The service provider offering the freeze must obtain separate authorization for each service for which a preferred service provider freeze is requested.    (4)   Solicitation and imposition of preferred service provider freezes.
    1. All solicitation and other materials provided by a service provider regarding preferred service provider freezes must include:
    2. An explanation, in clear and neutral language, of what a preferred service provider freeze is and what services may be subject to a freeze;
    3. A description of the specific procedures necessary to lift a preferred service provider freeze; an explanation that these steps are in addition to the verification requirements in 22.23(2)“a” and 22.23(2)“b” for changing a customer’s preferred service provider selections; and an explanation that the customer will be unable to make a change in service provider selection unless the freeze is lifted; and
    4. An explanation of any charges associated with the preferred carrier freeze.
    1. No local exchange carrier shall implement a preferred service provider freeze unless the customer’s request to impose a freeze has first been confirmed in accordance with one of the following procedures:
  • The local exchange carrier has obtained the customer’s written andor electronically signed authorization in a form that meets the requirements of 22.23(2)“d”(4)“3”; or
  • The local exchange carrier has obtained the customer’s electronic authorization, placed from the telephone number(s) on which the preferred service provider freeze is to be imposed, to impose a preferred service provider freeze. The electronic authorization shall confirm appropriate verification data and the information required in 22.23(2)“d”(4)“3.” Service providers electing to confirm preferred service provider freeze orders electronically shall establish one or more toll-free telephone numbers exclusively for that purpose. Calls to the number(s) will connect a customer to a voice response unit, or similar mechanism that records the required information regarding the preferred service provider freeze request, including automatically recording the originating automatic numbering identification; or
  • An appropriately qualified independent third party has obtained the customer’s oral authorization to submit the preferred service provider freeze and confirmed the appropriate verification data and the information required in 22.23(2)“d”(4)“3.” The independent third party must not be owned, managed, or directly controlled by the service provider or the service provider’s marketing agent; must not have any financial incentive to confirm preferred service provider freeze requests for the service provider or the service provider’s marketing agent; and must operate in a location physically separate from the service provider or the service provider’s marketing agent. The content of the verification must include clear and conspicuous confirmation that the customer has authorized a preferred service provider freeze.
    1. A local exchange service provider may accept a written and signed authorization to impose a freeze on the customer’s preferred service provider selection. Written authorization that does not conform with this subrule is invalid and may not be used to impose a preferred service provider freeze.
    2. The written authorization shall comply with 22.23(2)“b”(5)“2” and “3” and 22.23(2)“b”(8) concerning the form and content for letters of agency.
    3. At a minimum, the written authorization must be printed with a readable type of sufficient size to be clearly legible and must contain clear and unambiguous language that confirms: (1) the customer’s billing name and address and the telephone number(s) to be covered by the preferred service provider freeze; (2) the decision to place a preferred service provider freeze on the telephone number(s) and particular service(s). To the extent that a jurisdiction allows the imposition of preferred service provider freezes on additional preferred service provider selections (e.g., for local exchange, intraLATA/intrastate toll, interLATA/interstate toll service, and international toll), the authorization must contain separate statements regarding the particular selections to be frozen; (3) that the customer understands that the customer will be unable to make a change in service provider selection unless the preferred service provider freeze is lifted; and (4) that the customer understands that any preferred carrier freeze may involve a charge to the customer.
        (5)   All local exchange service providers who offer preferred service provider freezes must, at a minimum, offer customers the following procedures for lifting a preferred service provider freeze:
    1. A local exchange service provider administering a preferred service provider freeze must accept a customer’s written andor electronically signed authorization stating the intention to lift a preferred service provider freeze; and
    2. A local exchange service provider administering a preferred service provider freeze must accept a customer’s oral authorization stating the intention to lift a preferred carrier freeze and must offer a mechanism that allows a submitting service provider to conduct a three-way conference call with the service provider administering the freeze and the customer in order to lift a freeze. When engaged in oral authorization to lift a preferred service provider freeze, the service provider administering the freeze shall confirm appropriate verification data and the customer’s intent to lift the particular freeze.
        e.    Procedures in the event of sale or transfer of customer base.A telecommunications carrier may acquire, through a sale or transfer, either part or all of another telecommunications carrier’s customer base without obtaining each customer’s authorization in accordance with 199 IAC 22.23(2)“a,” provided that the acquiring carrier complies with the following procedures. A telecommunications carrier may not use these procedures for any fraudulent purpose, including any attempt to avoid liability for violations under 199 IAC 22.23(2)“a.”    (1)   No later than 30 days before the planned transfer of the affected customers from the selling or transferring carrier to the acquiring carrier, the acquiring carrier shall file with the board a letter notifying the board of the transfer and providing the names of the parties to the transaction, the types of telecommunications services to be provided to the affected customers, and the date of the transfer of the customer base to the acquiring carrier. In the letter, the acquiring carrier also shall certify compliance with the requirement to provide advance customer notice in accordance with 199 IAC 22.23(2)“e”(3) and with the obligations specified in that notice. In addition, the acquiring carrier shall attach a copy of the notice sent to the affected customers.    (2)   If, subsequent to the filing of the letter of notification with the board required by 199 IAC 22.23(2)“e”(1), any material changes to the required information develop, the acquiring carrier shall file written notification of these changes with the board no more than 10 days after the transfer date announced in the prior notification. The board may require the acquiring carrier to send an additional notice to the affected customers regarding such material changes.    (3)   Not later than 30 days before the transfer of the affected customers from the selling or transferring carrier to the acquiring carrier, the acquiring carrier shall provide written notice to each affected customer. The acquiring carrier must fulfill the obligations set forth in the written notice. The written notice must inform the customer of the following:
    1. The date on which the acquiring carrier will become the customer’s new provider of telecommunications service;
    2. The rates, terms, and conditions of the service(s) to be provided by the acquiring carrier upon the customer’s transfer to the acquiring carrier, and the means by which the acquiring carrier will notify the customer of any change(s) to these rates, terms, and conditions;
    3. The acquiring carrier will be responsible for any carrier change charges associated with the transfer;
    4. The customer’s right to select a different preferred carrier for the telecommunications service(s) at issue, if an alternative carrier is available;
    5. All customers receiving the notice, even those who have arranged preferred carrier freezes through their local service providers on the service(s) involved in the transfer, will be transferred to the acquiring carrier unless they have selected a different carrier before the transfer date; existing preferred carrier freezes on the service(s) involved in the transfer will be lifted; and the customers must contact their local service providers to arrange a new freeze;
    6. Whether the acquiring carrier will be responsible for handling any complaints filed, or otherwise raised, prior to or during the transfer against the selling or transferring carrier; and
    7. The toll-free customer service telephone number of the acquiring carrier.

        ITEM 21.    Amend paragraph 22.23(5)"c" as follows:    c.    Collection.A civil penalty collected pursuant to this subrule shall be forwarded by the executive secretary of the board to the treasurer of state to be credited to the generalrevolving fund of the state and to be used only for consumer education programs administered by the board.    [Filed 1/19/17, effective 3/22/17][Published 2/15/17]Editor’s Note: For replacement pages for IAC, see IAC Supplement 2/15/17.

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