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House File 2440 - 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.2, subsection 3, Code 2018, is amended
15by adding the following new paragraph:
16 NEW PARAGRAPH. e. A rural improvement zone established
17pursuant to chapter 357H.
18 Sec. 11. Section 466B.3, subsection 3, paragraph c, Code
192017, as amended by 2018 Iowa Acts, Senate File 512, section
2021, is amended to read as follows:
21c. Whether the funds, programs, and regulatory efforts
22coordinated by the council eventually result in a long-term
23improvement to the quality of surface water in Iowa. To
24evaluate the progress achieved over time toward the goals of
25the Iowa nutrient reduction strategy, as defined in section
26455B.171, and the United States environmental protection agency
27gulf hypoxia action plan, the baseline condition shall be
28calculated for the time period from 1980 to 1996.
29 Sec. 12. Section 466B.42, Code 2017, as amended by 2018
30Iowa Acts, Senate File 512, section 22, is amended to read as
31follows:
32466B.42 Water quality initiative.
33The division shall establish a water quality initiative
34in order to assess and reduce nutrients in this state’s
35watersheds, including subwatersheds and regional watersheds,
-3-1and for implementing its responsibilities under the Iowa
2nutrient reduction strategy as defined in section 455B.171.
3The division shall establish and administer projects to
4reduce nutrients in surface waters from nonpoint sources in
5a scientific, reasonable, and cost-effective manner. The
6division shall utilize a pragmatic, strategic, and coordinated
7approach with the goal of accomplishing reductions over time.
8To evaluate the progress achieved over time toward the goals
9of the Iowa nutrient reduction strategy and the United States
10environmental protection agency gulf hypoxia action plan, the
11baseline condition shall be calculated for the time period from
121980 to 1996.
13 Sec. 13. Section 466B.43, subsection 2, as enacted by 2018
14Iowa Acts, Senate File 512, section 23, is amended to read as
15follows:
162. The purpose of the programs is to support projects for
17the installation of infrastructure, including conservation
18structures, practices, or other measures that reduce
19contributing nutrient loads, associated sediment, or
20contaminants from sources to surface waters including but not
21limited to surface waters on the impaired waters list of the
22state that are used as a drinking water supply. The programs
23shall be administered in a manner that is consistent with
24the latest version of the “Iowa Nutrient Reduction Strategy”
25initially presented in November 2012 by the department of
26agriculture and land stewardship, the department of natural
27resources, and Iowa state university of science and technology
28 Iowa nutrient reduction strategy.
29 Sec. 14. Section 466B.43, subsection 6, as enacted by 2018
30Iowa Acts, Senate File 512, section 23, is amended to read as
31follows:
326. By October 1, 2018 2019, and each October 1, thereafter,
33the division shall submit a report to the governor and the
34general assembly itemizing expenditures, by hydrologic unit
35code 8 watershed, under the programs during the previous fiscal
-4-1year, if any.
2 Sec. 15. Section 466B.44, subsections 2 and 7, as enacted
3by 2018 Iowa Acts, Senate File 512, section 24, are amended to
4read as follows:
52. The purpose of the program is to support watershed
6projects and advance implementation of the latest version of
7the “Iowa Nutrient Reduction Strategy” initially presented
8in November 2012 by the department of agriculture and
9land stewardship, the department of natural resources,
10and Iowa state university of science and technology Iowa
11nutrient reduction strategy, which program support may
12include demonstration projects that decrease erosion,
13precipitation-induced surface runoff, and storm water
14discharges and that increase water infiltration rates. The
15program’s projects shall be based on Iowa’s storm water
16management manual published by the department of natural
17resources.
187. By October 1, 2018 2019, and by October 1 of each year
19thereafter, the division shall submit a report to the governor
20and the general assembly itemizing expenditures under the
21program, if any, during the previous fiscal year.
22 Sec. 16. 2018 Iowa Acts, Senate File 512, section 25,
23subsections 1 and 3, are amended to read as follows:
241. The legislative council is requested to establish a
25study committee for the 2017 2018 interim to identify and
26comprehensively review the financial and other challenges faced
27by small cities in complying with the various state and federal
28clean water standards, and to consider options for addressing
29those challenges.
303. The interim committee shall submit its findings and
31recommendations to the general assembly for consideration
32during the 2018 2019 legislative session.
33 Sec. 17. 2015 Iowa Acts, chapter 132, section 18, subsection
341, is amended by adding the following new paragraph:
35 NEW PARAGRAPH. 0b. The soil conservation and water quality
-5-1division of the department of agriculture and land stewardship,
2in cooperation with Iowa state university of science and
3technology, shall use moneys appropriated in paragraph “a”
4to administer education and outreach programs that provide
5information regarding in-field agricultural practices, and
6their value, in order to further enhance the rate that such
7practices are adopted.
8 Sec. 18. 2015 Iowa Acts, chapter 132, section 18, subsection
91, paragraph b, is amended to read as follows:
10b. Notwithstanding section 8.33, moneys appropriated in
11paragraph “a” that remain unencumbered or unobligated at the
12close of the fiscal year shall not revert but shall remain
13available for expenditure for the purposes designated until the
14close of the fiscal year beginning July 1, 2017 2019.
15 Sec. 19. EFFECTIVE UPON ENACTMENT. The sections of this Act
16amending 2015 Iowa Acts, chapter 132, section 18, take effect
17upon enactment.
18EXPLANATION
19The inclusion of this explanation does not constitute agreement with
20the explanation’s substance by the members of the general assembly.
21BACKGROUND. Senate File 512 (SF 512), as enacted by the
22general assembly in 2018, creates new water quality programs,
23amends an existing water quality program, provides for
24transfers and appropriations related to water quality, creates
25a water service excise tax and related sales tax exemption, and
26provides for other changes properly related to water quality.
27GENERAL AMENDMENTS TO SF 512. This bill eliminates the
28way in which the Iowa nutrient reduction strategy is cited in
29various provisions.
30The bill eliminates a provision that requires drainage or
31levee districts to utilize the installation of edge-of-field
32infrastructure.
33The bill relates to the wastewater treatment financial
34assistance program (Code section 16.134). SF 512 provides
35grants for the installation and upgrade of drinking water
-6-1facilities and by giving priority under that program to various
2communities and projects. The bill provides that priority
3under that program must also be given to communities whose
4drinking water facilities and systems use as a supply, or to
5projects whose completion will improve, surface waters on the
6impaired waters list of the state.
7The bill amends the water quality financing program by
8providing that a specified industry is eligible to participate
9and receive financial assistance under that program.
10The bill amends water quality agriculture infrastructure
11programs. SF 512 provides that the purpose of those programs
12is to support certain measures that reduce nutrient loads,
13associated sediment, or contaminants from sources to surface
14waters. The bill provides that surface waters include but are
15not limited to those described as the state’s impaired waters
16list that are used as a drinking water supply.
17The bill adds rural improvement zones to the list of
18political subdivisions that are eligible to participate as a
19member of a watershed management authority.
20The bill updates the inaugural date that annual reports
21from the economic development authority and the division of
22soil conservation and water quality within the department
23of agriculture and land stewardship are due under the water
24quality financing program and the water quality agriculture
25infrastructure programs, respectively, from October 1, 2018,
26to October 1, 2019.
27The bill updates the establishment date for the legislative
28interim study committee on small cities and clean water
29standards, from the 2017 legislative interim to the 2018
30legislative interim. The bill also updates from 2018 to 2019
31the legislative session for which that interim committee,
32is required to submit its findings for consideration by the
33general assembly.
34AMENDMENT TO PRIOR ACT. The bill amends a provision enacted
35in 2015 (2015 Iowa Acts, chapter 132) that appropriated moneys
-7-1from the agriculture management account of the groundwater
2protection fund to Iowa state university of science and
3technology for purposes of supporting the collection and use
4of data associated with in-field practices. The bill provides
5that the remaining moneys may also be used to finance related
6education and outreach programs. The bill provides that the
7moneys may be expended for those purposes until the close of
8the fiscal year beginning July 1, 2019.
9EFFECTIVE DATE. The bill makes the provision authorizing
10the use of moneys appropriated from the groundwater protection
11fund effective upon enactment.
-8-da/rj
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.2, subsection 3, Code 2018, is amended
15by adding the following new paragraph:
16 NEW PARAGRAPH. e. A rural improvement zone established
17pursuant to chapter 357H.
18 Sec. 11. Section 466B.3, subsection 3, paragraph c, Code
192017, as amended by 2018 Iowa Acts, Senate File 512, section
2021, is amended to read as follows:
21c. Whether the funds, programs, and regulatory efforts
22coordinated by the council eventually result in a long-term
23improvement to the quality of surface water in Iowa. To
24evaluate the progress achieved over time toward the goals of
25the Iowa nutrient reduction strategy, as defined in section
26455B.171, and the United States environmental protection agency
27gulf hypoxia action plan, the baseline condition shall be
28calculated for the time period from 1980 to 1996.
29 Sec. 12. Section 466B.42, Code 2017, as amended by 2018
30Iowa Acts, Senate File 512, section 22, is amended to read as
31follows:
32466B.42 Water quality initiative.
33The division shall establish a water quality initiative
34in order to assess and reduce nutrients in this state’s
35watersheds, including subwatersheds and regional watersheds,
-3-1and for implementing its responsibilities under the Iowa
2nutrient reduction strategy as defined in section 455B.171.
3The division shall establish and administer projects to
4reduce nutrients in surface waters from nonpoint sources in
5a scientific, reasonable, and cost-effective manner. The
6division shall utilize a pragmatic, strategic, and coordinated
7approach with the goal of accomplishing reductions over time.
8To evaluate the progress achieved over time toward the goals
9of the Iowa nutrient reduction strategy and the United States
10environmental protection agency gulf hypoxia action plan, the
11baseline condition shall be calculated for the time period from
121980 to 1996.
13 Sec. 13. Section 466B.43, subsection 2, as enacted by 2018
14Iowa Acts, Senate File 512, section 23, is amended to read as
15follows:
162. The purpose of the programs is to support projects for
17the installation of infrastructure, including conservation
18structures, practices, or other measures that reduce
19contributing nutrient loads, associated sediment, or
20contaminants from sources to surface waters including but not
21limited to surface waters on the impaired waters list of the
22state that are used as a drinking water supply. The programs
23shall be administered in a manner that is consistent with
24the latest version of the “Iowa Nutrient Reduction Strategy”
25initially presented in November 2012 by the department of
26agriculture and land stewardship, the department of natural
27resources, and Iowa state university of science and technology
28 Iowa nutrient reduction strategy.
29 Sec. 14. Section 466B.43, subsection 6, as enacted by 2018
30Iowa Acts, Senate File 512, section 23, is amended to read as
31follows:
326. By October 1, 2018 2019, and each October 1, thereafter,
33the division shall submit a report to the governor and the
34general assembly itemizing expenditures, by hydrologic unit
35code 8 watershed, under the programs during the previous fiscal
-4-1year, if any.
2 Sec. 15. Section 466B.44, subsections 2 and 7, as enacted
3by 2018 Iowa Acts, Senate File 512, section 24, are amended to
4read as follows:
52. The purpose of the program is to support watershed
6projects and advance implementation of the latest version of
7the “Iowa Nutrient Reduction Strategy” initially presented
8in November 2012 by the department of agriculture and
9land stewardship, the department of natural resources,
10and Iowa state university of science and technology Iowa
11nutrient reduction strategy, which program support may
12include demonstration projects that decrease erosion,
13precipitation-induced surface runoff, and storm water
14discharges and that increase water infiltration rates. The
15program’s projects shall be based on Iowa’s storm water
16management manual published by the department of natural
17resources.
187. By October 1, 2018 2019, and by October 1 of each year
19thereafter, the division shall submit a report to the governor
20and the general assembly itemizing expenditures under the
21program, if any, during the previous fiscal year.
22 Sec. 16. 2018 Iowa Acts, Senate File 512, section 25,
23subsections 1 and 3, are amended to read as follows:
241. The legislative council is requested to establish a
25study committee for the 2017 2018 interim to identify and
26comprehensively review the financial and other challenges faced
27by small cities in complying with the various state and federal
28clean water standards, and to consider options for addressing
29those challenges.
303. The interim committee shall submit its findings and
31recommendations to the general assembly for consideration
32during the 2018 2019 legislative session.
33 Sec. 17. 2015 Iowa Acts, chapter 132, section 18, subsection
341, is amended by adding the following new paragraph:
35 NEW PARAGRAPH. 0b. The soil conservation and water quality
-5-1division of the department of agriculture and land stewardship,
2in cooperation with Iowa state university of science and
3technology, shall use moneys appropriated in paragraph “a”
4to administer education and outreach programs that provide
5information regarding in-field agricultural practices, and
6their value, in order to further enhance the rate that such
7practices are adopted.
8 Sec. 18. 2015 Iowa Acts, chapter 132, section 18, subsection
91, paragraph b, is amended to read as follows:
10b. Notwithstanding section 8.33, moneys appropriated in
11paragraph “a” that remain unencumbered or unobligated at the
12close of the fiscal year shall not revert but shall remain
13available for expenditure for the purposes designated until the
14close of the fiscal year beginning July 1, 2017 2019.
15 Sec. 19. EFFECTIVE UPON ENACTMENT. The sections of this Act
16amending 2015 Iowa Acts, chapter 132, section 18, take effect
17upon enactment.
18EXPLANATION
19The inclusion of this explanation does not constitute agreement with
20the explanation’s substance by the members of the general assembly.
21BACKGROUND. Senate File 512 (SF 512), as enacted by the
22general assembly in 2018, creates new water quality programs,
23amends an existing water quality program, provides for
24transfers and appropriations related to water quality, creates
25a water service excise tax and related sales tax exemption, and
26provides for other changes properly related to water quality.
27GENERAL AMENDMENTS TO SF 512. This bill eliminates the
28way in which the Iowa nutrient reduction strategy is cited in
29various provisions.
30The bill eliminates a provision that requires drainage or
31levee districts to utilize the installation of edge-of-field
32infrastructure.
33The bill relates to the wastewater treatment financial
34assistance program (Code section 16.134). SF 512 provides
35grants for the installation and upgrade of drinking water
-6-1facilities and by giving priority under that program to various
2communities and projects. The bill provides that priority
3under that program must also be given to communities whose
4drinking water facilities and systems use as a supply, or to
5projects whose completion will improve, surface waters on the
6impaired waters list of the state.
7The bill amends the water quality financing program by
8providing that a specified industry is eligible to participate
9and receive financial assistance under that program.
10The bill amends water quality agriculture infrastructure
11programs. SF 512 provides that the purpose of those programs
12is to support certain measures that reduce nutrient loads,
13associated sediment, or contaminants from sources to surface
14waters. The bill provides that surface waters include but are
15not limited to those described as the state’s impaired waters
16list that are used as a drinking water supply.
17The bill adds rural improvement zones to the list of
18political subdivisions that are eligible to participate as a
19member of a watershed management authority.
20The bill updates the inaugural date that annual reports
21from the economic development authority and the division of
22soil conservation and water quality within the department
23of agriculture and land stewardship are due under the water
24quality financing program and the water quality agriculture
25infrastructure programs, respectively, from October 1, 2018,
26to October 1, 2019.
27The bill updates the establishment date for the legislative
28interim study committee on small cities and clean water
29standards, from the 2017 legislative interim to the 2018
30legislative interim. The bill also updates from 2018 to 2019
31the legislative session for which that interim committee,
32is required to submit its findings for consideration by the
33general assembly.
34AMENDMENT TO PRIOR ACT. The bill amends a provision enacted
35in 2015 (2015 Iowa Acts, chapter 132) that appropriated moneys
-7-1from the agriculture management account of the groundwater
2protection fund to Iowa state university of science and
3technology for purposes of supporting the collection and use
4of data associated with in-field practices. The bill provides
5that the remaining moneys may also be used to finance related
6education and outreach programs. The bill provides that the
7moneys may be expended for those purposes until the close of
8the fiscal year beginning July 1, 2019.
9EFFECTIVE DATE. The bill makes the provision authorizing
10the use of moneys appropriated from the groundwater protection
11fund effective upon enactment.
-8-da/rj