House Study Bill 645 - IntroducedA Bill ForAn Act 1relating to certain water quality programs and other
2provisions properly related to water quality, making
3appropriations, and including effective date provisions.
4BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
1   Section 1.  Section 16.1, Code 2018, is amended by adding the
2following new subsection:
3   NEW SUBSECTION.  18A.  “Iowa nutrient reduction strategy”
4means the same as defined in section 455B.171, as amended by
52018 Iowa Acts, Senate File 512, section 18.
6   Sec. 2.  Section 16.134, subsection 4, paragraph f, as
7enacted by 2018 Iowa Acts, Senate File 512, section 4, is
8amended to read as follows:
   9f.  Priority shall also be given to communities that employ
10technology to address the latest version goals of the “Iowa
11Nutrient Reduction Strategy” initially presented in November
122012 by the department of agriculture and land stewardship, the
13department of natural resources, and Iowa state university of
14science and technology
 Iowa nutrient reduction strategy.
15   Sec. 3.  Section 16.134, subsection 4, Code 2017, as amended
16by 2018 Iowa Acts, Senate File 512, section 4, is amended by
17adding the following new paragraph:
18   NEW paragraph.  0g.  Priority shall also be given to
19communities whose drinking water facilities and systems use as
20a supply, or to projects whose completion will improve, surface
21waters on the state’s impaired waters list as described in
22section 455B.194 and 455B.195.
23   Sec. 4.  Section 16.142, subsection 2, as enacted by 2018
24Iowa Acts, Senate File 512, section 6, is amended to read as
25follows:
   262.  “Eligible entity” means a municipality or a landowner,
27as determined by the authority, a public utility as defined in
28section 476.1, a specified industry, or a rural water district
29or rural water association as defined in section 357A.1.
30   Sec. 5.  Section 16.142, as enacted by 2018 Iowa Acts, Senate
31File 512, section 6, is amended by adding the following new
32subsection:
33   NEW SUBSECTION.  7.  “Specified industry” means any of the
34following:
   35a.  An entity engaged in an industry identified in the Iowa
-1-1nutrient reduction strategy, as determined by the authority,
2which industry is or will be required pursuant to the Iowa
3nutrient reduction strategy to collect data on the source,
4concentration, and mass of total nitrogen or total phosphorus
5in its effluent, and to evaluate alternatives for reducing the
6amount of nutrients in its discharge.
   7b.  An entity implementing technology or operational
8improvements to reduce nutrients in its discharge.
9   Sec. 6.  Section 16.144, subsection 4, as enacted by 2018
10Iowa Acts, Senate File 512, section 8, is amended to read as
11follows:
   124.  By October 1, 2018 2019, and by October 1 of each year
13thereafter, the authority shall submit a report to the governor
14and the general assembly itemizing expenditures from the fund,
15if any, during the previous fiscal year.
16   Sec. 7.  Section 16.145, subsection 1, paragraph a, as
17enacted by 2018 Iowa Acts, Senate File 512, section 9, is
18amended to read as follows:
   19a.  The plan includes one or more projects that improve
20water quality in the local area or watershed. Projects
21shall use practices identified in the latest version of the
22document entitled “Iowa Nutrient Reduction Strategy” initially
23presented in November 2012 by the department of agriculture
24and land stewardship, the department of natural resources,
25and Iowa state university of science and technology
 Iowa
26nutrient reduction strategy
. A drainage or levee district
27established under chapter 468 shall utilize the installation of
28edge-of-field infrastructure as described in section 466B.43.

29   Sec. 8.  Section 16.145, subsection 2, as enacted by 2018
30Iowa Acts, Senate File 512, section 9, is amended to read as
31follows:
   322.  The authority shall review and approve or deny
33applications for financial assistance. The provision of
34financial assistance under the program shall take into account,
35as applicable, the number of municipalities, landowners,
-2-1public utilities, specified industries, rural water districts,
2or rural water associations comprising an eligible entity
3and the eligible entity’s financing capacity. The authority
4shall score applications for financial assistance according to
5rules adopted pursuant to this part. The authority shall only
6provide financial assistance to eligible entities that have
7sufficient financing capacity and that submit an appropriate
8plan designed to improve water quality.
9   Sec. 9.  Section 466B.2, Code 2018, is amended by adding the
10following new subsection:
11   NEW SUBSECTION.  2A.  “Iowa nutrient reduction strategy”
12means the same as defined in section 455B.171, as amended by
132018 Iowa Acts, Senate File 512, section 18.
14   Sec. 10.  Section 466B.3, subsection 3, paragraph c, Code
152017, as amended by 2018 Iowa Acts, Senate File 512, section
1621, is amended to read as follows:
   17c.  Whether the funds, programs, and regulatory efforts
18coordinated by the council eventually result in a long-term
19improvement to the quality of surface water in Iowa. To
20evaluate the progress achieved over time toward the goals of
21the Iowa nutrient reduction strategy, as defined in section
22455B.171,
and the United States environmental protection agency
23gulf hypoxia action plan, the baseline condition shall be
24calculated for the time period from 1980 to 1996.
25   Sec. 11.  Section 466B.42, Code 2017, as amended by 2018
26Iowa Acts, Senate File 512, section 22, is amended to read as
27follows:
   28466B.42  Water quality initiative.
   29The division shall establish a water quality initiative
30in order to assess and reduce nutrients in this state’s
31watersheds, including subwatersheds and regional watersheds,
32and for implementing its responsibilities under the Iowa
33nutrient reduction strategy as defined in section 455B.171.
34The division shall establish and administer projects to
35reduce nutrients in surface waters from nonpoint sources in
-3-1a scientific, reasonable, and cost-effective manner. The
2division shall utilize a pragmatic, strategic, and coordinated
3approach with the goal of accomplishing reductions over time.
4To evaluate the progress achieved over time toward the goals
5of the Iowa nutrient reduction strategy and the United States
6environmental protection agency gulf hypoxia action plan, the
7baseline condition shall be calculated for the time period from
81980 to 1996.
9   Sec. 12.  Section 466B.43, subsection 2, as enacted by 2018
10Iowa Acts, Senate File 512, section 23, is amended to read as
11follows:
   122.  The purpose of the programs is to support projects for
13the installation of infrastructure, including conservation
14structures, practices, or other measures that reduce
15contributing nutrient loads, associated sediment, or
16contaminants from sources to surface waters including but not
17limited to surface waters on the impaired waters list of the
18state that are used as a drinking water supply
. The programs
19shall be administered in a manner that is consistent with
20the latest version of the “Iowa Nutrient Reduction Strategy”
21initially presented in November 2012 by the department of
22agriculture and land stewardship, the department of natural
23resources, and Iowa state university of science and technology
24
 Iowa nutrient reduction strategy.
25   Sec. 13.  Section 466B.43, subsection 6, as enacted by 2018
26Iowa Acts, Senate File 512, section 23, is amended to read as
27follows:
   286.  By October 1, 2018 2019, and each October 1, thereafter,
29the division shall submit a report to the governor and the
30general assembly itemizing expenditures, by hydrologic unit
31code 8 watershed, under the programs during the previous fiscal
32year, if any.
33   Sec. 14.  Section 466B.44, subsections 2 and 7, as enacted
34by 2018 Iowa Acts, Senate File 512, section 24, are amended to
35read as follows:
-4-   12.  The purpose of the program is to support watershed
2projects and advance implementation of the latest version of
3the “Iowa Nutrient Reduction Strategy” initially presented
4in November 2012 by the department of agriculture and
5land stewardship, the department of natural resources,
6and Iowa state university of science and technology
 Iowa
7nutrient reduction strategy
, which program support may
8include demonstration projects that decrease erosion,
9precipitation-induced surface runoff, and storm water
10discharges and that increase water infiltration rates. The
11program’s projects shall be based on Iowa’s storm water
12management manual published by the department of natural
13resources.
   147.  By October 1, 2018 2019, and by October 1 of each year
15thereafter, the division shall submit a report to the governor
16and the general assembly itemizing expenditures under the
17program, if any, during the previous fiscal year.
18   Sec. 15.  2018 Iowa Acts, Senate File 512, section 25,
19subsections 1 and 3, are amended to read as follows:
   201.  The legislative council is requested to establish a
21study committee for the 2017 2018 interim to identify and
22comprehensively review the financial and other challenges faced
23by small cities in complying with the various state and federal
24clean water standards, and to consider options for addressing
25those challenges.
   263.  The interim committee shall submit its findings and
27recommendations to the general assembly for consideration
28during the 2018 2019 legislative session.
29   Sec. 16.  2015 Iowa Acts, chapter 132, section 18, subsection
301, is amended by adding the following new subsection:
31   NEW SUBSECTION.  0b.  The soil conservation and water quality
32division of the department of agriculture and land stewardship,
33in cooperation with Iowa state university of science and
34technology, shall use moneys appropriated in paragraph “a”
35to administer education and outreach programs that provide
-5-1information regarding in-field agricultural practices, and
2their value, in order to further enhance the rate that such
3practices are adopted.
4   Sec. 17.  2015 Iowa Acts, chapter 132, section 18, subsection
51, paragraph b, is amended to read as follows:
   6b.  Notwithstanding section 8.33, moneys appropriated in
7paragraph “a” that remain unencumbered or unobligated at the
8close of the fiscal year shall not revert but shall remain
9available for expenditure for the purposes designated until the
10close of the fiscal year beginning July 1, 2017 2019.
11   Sec. 18.  EFFECTIVE UPON ENACTMENT.  The sections of this Act
12amending 2015 Iowa Acts, chapter 132, section 18, take effect
13upon enactment.
14EXPLANATION
15The inclusion of this explanation does not constitute agreement with
16the explanation’s substance by the members of the general assembly.
   17BACKGROUND. Senate File 512 (SF 512), as enacted by the
18general assembly in 2018, creates new water quality programs,
19amends an existing water quality program, provides for
20transfers and appropriations related to water quality, creates
21a water service excise tax and related sales tax exemption, and
22provides for other changes properly related to water quality.
   23GENERAL AMENDMENTS TO SF 512. This bill eliminates the
24way in which the Iowa nutrient reduction strategy is cited in
25various provisions.
   26The bill eliminates a provision that requires drainage or
27levee districts to utilize the installation of edge-of-field
28infrastructure.
   29The bill relates to the wastewater treatment financial
30assistance program (Code section 16.134). SF 512 provides
31grants for the installation and upgrade of drinking water
32facilities and by giving priority under that program to various
33communities and projects. The bill provides that priority
34under that program must also be given to communities whose
35drinking water facilities and systems use as a supply, or to
-6-1projects whose completion will improve, surface waters on the
2impaired waters list of the state.
   3The bill amends the water quality financing program by
4providing that a specified industry is eligible to participate
5and receive financial assistance under that program.
   6The bill amends water quality agriculture infrastructure
7programs. SF 512 provides that the purpose of those programs
8is to support certain measures that reduce nutrient loads,
9associated sediment, or contaminants from sources to surface
10waters. The bill provides that surface waters include but are
11not limited to those described as the state’s impaired waters
12list that are used as a drinking water supply.
   13The bill updates the inaugural date that annual reports
14from the economic development authority and the division of
15soil conservation and water quality within the department
16of agriculture and land stewardship are due under the water
17quality financing program and the water quality agriculture
18infrastructure programs, respectively, from October 1, 2018,
19to October 1, 2019.
   20The bill updates the establishment date for the legislative
21interim study committee on small cities and clean water
22standards, from the 2017 legislative interim to the 2018
23legislative interim. The bill also updates from 2018 to 2019
24the legislative session for which that interim committee,
25is required to submit its findings for consideration by the
26general assembly.
   27AMENDMENT TO PRIOR ACT. The bill amends a provision enacted
28in 2015 (2015 Iowa Acts, chapter 132) that appropriated moneys
29from the agriculture management account of the groundwater
30protection fund to Iowa state university of science and
31technology for purposes of supporting the collection and use
32of data associated with in-field practices. The bill provides
33that the remaining moneys may also be used to finance related
34education and outreach programs. The bill provides that the
35moneys may be expended for those purposes until the close of
-7-1the fiscal year beginning July 1, 2019.
   2EFFECTIVE DATE. The bill makes the provision authorizing
3the use of moneys appropriated from the groundwater protection
4fund effective upon enactment.
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