Iowa-2019-HF677-Introduced

H.F. 677 DIVISION I 1 ADMINISTRATIVE APPEALS TIMELINE 2 Section 1. NEW SECTION . 455B.110 Administrative appeal 3 orders —— deadline. 4 1. An order issued by the director or the department 5 pursuant to authority granted in this chapter may be appealed, 6 resulting in the scheduling of a contested case hearing as 7 provided for in chapter 17A. The appeal must be received 8 by the director within the applicable timeframe established 9 in this section. If the appeal is not received within the 10 applicable timeframe, the appeal is not timely and the order 11 is final agency action. 12 2. For a person that holds a permit issued by the 13 department, an appeal must be received by the director within 14 sixty days of the issuance of the order to the address of 15 the person identified in the permit and the address of the 16 responsible party listed in the permit, if any. 17 3. For a person that is required to maintain a registered 18 agent or a registered office in the state and does not hold a 19 permit issued by the department, an appeal must be received by 20 the director within sixty days of the issuance of the order 21 to the official registered agent address on file with the 22 secretary of state. 23 4. For any other person, an appeal must be received by 24 the director within sixty days of issuance to the last known 25 address. 26 5. The director or the department shall provide a copy of 27 the order by ordinary mail or electronic mail to the person’s 28 attorney if the attorney has been identified to the department 29 as representing the person. 30 6. a. For the purposes of this section, the date of 31 issuance of an order by the director or the department is the 32 postmarked date that the order is sent by the department to the 33 registered agent or person. 34 b. For the purposes of this section, the date of receipt by 35 -1- LSB 1247HV (2) 88 js/tm 1/ 7

H.F. 677 the director is the postmarked date that the appeal was sent 1 to the director or the date the appeal was hand-delivered and 2 filed and stamped by the department during its regular business 3 hours. 4 Sec. 2. Section 455B.138, subsection 1, Code 2019, is 5 amended to read as follows: 6 1. When the director has evidence that a violation of 7 any provision of division II of this chapter or chapter 459, 8 subchapter II , or rule, standard or permit established or 9 issued under division II or chapter 459, subchapter II , has 10 occurred, the director shall notify the alleged violator and, 11 by informal negotiation, attempt to resolve the problem. 12 If the negotiations fail to resolve the problem within a 13 reasonable period of time, the director shall issue an order 14 directing the violator to prevent, abate or control the 15 emissions or air pollution involved. The order shall prescribe 16 the date by which the violation shall cease and may prescribe 17 timetables for necessary action to prevent, abate or control 18 the emissions of air pollution. The order may be appealed to 19 the commission. The applicable timeframes for the issuance and 20 appeal of the order are defined in section 455B.110. 21 Sec. 3. Section 455B.175, subsection 1, paragraph a, Code 22 2019, is amended to read as follows: 23 a. The director may issue an order directing the person 24 to desist in the practice which constitutes the violation or 25 to take such corrective action as may be necessary to ensure 26 that the violation will cease. The person to whom such order 27 is issued may cause to be commenced a contested case within 28 the meaning of the Iowa administrative procedure Act, chapter 29 17A , by filing with the director within thirty days a notice 30 of appeal to the commission. The applicable timeframes for 31 the issuance and appeal of the order are defined in section 32 455B.110. On appeal the commission may affirm, modify or 33 vacate the order of the director; or 34 Sec. 4. Section 455B.279, subsection 1, Code 2019, is 35 -2- LSB 1247HV (2) 88 js/tm 2/ 7

H.F. 677 amended to read as follows: 1 1. The director may issue any order necessary to secure 2 compliance with or prevent a violation of this part or the 3 rules adopted pursuant to this part. Within thirty days of 4 issuance, the The order may be appealed to the commission by 5 filing a notice of appeal with the director. The appeal shall 6 be conducted as a contested case pursuant to chapter 17A and 7 the commission may affirm, modify, or revoke the order. The 8 department may request legal services as required from the 9 attorney general, including any legal proceeding necessary to 10 obtain compliance with this part and rules and orders issued 11 under this part. The applicable timeframes for the issuance 12 and appeal of an order are defined in section 455B.110. 13 Sec. 5. Section 455B.308, Code 2019, is amended to read as 14 follows: 15 455B.308 Appeal from order. 16 Any person aggrieved by an order of the director may appeal 17 the order by filing a written notice of appeal with the 18 director within thirty days of the issuance of the order in 19 accordance with section 455B.110 . The director shall schedule 20 a hearing for the purpose of hearing the arguments of the 21 aggrieved person within thirty days of the filing of the notice 22 of appeal. The hearing may be held before the commission 23 or its designee. A complete record shall be made of the 24 proceedings. The director shall issue the findings in writing 25 to the aggrieved person within thirty days of the conclusion 26 of the hearing. Judicial review may be sought of actions 27 of the commission in accordance with the terms of the Iowa 28 administrative procedure Act, chapter 17A . Notwithstanding the 29 terms of the Act, petitions for judicial review may be filed 30 in the district court of the county where the acts in issue 31 occurred. 32 Sec. 6. Section 455B.476, subsection 1, Code 2019, is 33 amended to read as follows: 34 1. If there is substantial evidence that a person has 35 -3- LSB 1247HV (2) 88 js/tm 3/ 7

H.F. 677 violated or is violating a provision of this part or a 1 rule adopted under this part the director may issue an 2 order directing the person to desist in the practice which 3 constitutes the violation, and to take corrective action as 4 necessary to ensure that the violation will cease, and may 5 impose appropriate administrative penalties pursuant to section 6 455B.109 . The person to whom the order is issued may appeal 7 the order to the commission as provided in chapter 17A . On 8 appeal, the commission may affirm, modify or vacate the order 9 of the director. The applicable timeframes for the issuance 10 and appeal of the order are defined in section 455B.110. 11 Sec. 7. Section 455D.23, Code 2019, is amended to read as 12 follows: 13 455D.23 Administrative enforcement —— compliance orders. 14 The director may issue any order necessary to secure 15 compliance with or prevent a violation of the provisions of 16 this chapter or any rule adopted or permit or order issued 17 pursuant to this chapter . Any order issued to enforce section 18 455D.4A may include a requirement to remove and properly 19 dispose of materials being accumulated speculatively from a 20 property and impose costs and penalties as determined by the 21 department by rule. The person to whom such compliance order 22 is issued may cause to be commenced a contested case within the 23 meaning of chapter 17A by filing within thirty days a notice 24 of appeal to the commission. On appeal, the commission may 25 affirm, modify, or vacate the order of the director. The 26 applicable timeframes for the issuance and appeal of the order 27 are defined in section 455B.110. 28 Sec. 8. Section 458A.11, subsection 2, Code 2019, is amended 29 to read as follows: 30 2. An order or amendment of an order, except in an 31 emergency, shall not be made by the department without a 32 public hearing upon at least ten days’ notice. The public 33 hearing shall be held at the time and place prescribed by the 34 department, and any interested person is entitled to be heard. 35 -4- LSB 1247HV (2) 88 js/tm 4/ 7

H.F. 677 The applicable timeframes for the issuance and appeal of the 1 order are defined in section 455B.110. 2 DIVISION II 3 ADMINISTRATIVE CHANGES FOR WASTE DISPOSAL SYSTEMS AND PUBLIC 4 WATER SUPPLY SYSTEMS 5 Sec. 9. Section 455B.183, subsection 1, paragraph c, Code 6 2019, is amended to read as follows: 7 c. The operation of any waste disposal system or public 8 water supply system or any part of or extension or addition 9 to the system. This provision paragraph does not apply to a 10 pretreatment system, the effluent of which is to be discharged 11 directly to another disposal system for final treatment and 12 disposal; a semipublic sewage disposal system, the construction 13 of which has been approved by the department and which that 14 does not discharge into a water of the state; or a private 15 sewage disposal system which that does not discharge into 16 a water of the state. The commission may adopt additional 17 exemptions for a class of disposal systems that do not 18 discharge into a water of the state or the director may waive 19 the permit requirement for an individual system that does 20 not discharge into a water of the state. The commission or 21 director shall consider the volume, location, frequency, and 22 nature of disposal from a system or class of systems before 23 granting a waiver or exemption. Sludge from a semipublic 24 or private sewage disposal system shall be disposed of in 25 accordance with the rules adopted by the department pursuant to 26 chapter 17A . The exemption of this paragraph shall not apply 27 to any industrial waste discharges. 28 Sec. 10. Section 455B.183, Code 2019, is amended by adding 29 the following new subsection: 30 NEW SUBSECTION . 9. A rural water association organized 31 under chapter 357A or chapter 504 that employs or retains 32 a licensed engineer shall be considered to have met the 33 permitting requirements of this section for the purposes 34 of sewer extensions and water supply distribution system 35 -5- LSB 1247HV (2) 88 js/tm 5/ 7

H.F. 677 extensions. The department shall not disqualify a rural 1 water system if the system’s hydraulic modeling complies with 2 standards for water supply distribution systems adopted by the 3 commission pursuant to this chapter. 4 Sec. 11. Section 455B.265, subsection 6, paragraphs a and c, 5 Code 2019, are amended to read as follows: 6 a. The amount of a fee shall be based on the department’s 7 reasonable cost of reviewing applications, issuing permits, 8 ensuring compliance with the terms of the permits, and 9 resolving water interference complaints. The commission shall 10 calculate the fees to produce total revenues of not more than 11 five hundred thousand dollars for each fiscal year , commencing 12 with the fiscal year beginning July 1, 2009, and ending June 13 30, 2010 . 14 c. The commission shall annually review the amount of moneys 15 generated by the fees, the balance in the water use permit 16 fund, and the anticipated expenses for the succeeding fiscal 17 year years . 18 EXPLANATION 19 The inclusion of this explanation does not constitute agreement with 20 the explanation’s substance by the members of the general assembly. 21 This bill affects administrative procedures within the 22 department of natural resources. 23 Division I of the bill creates a 60-day period during which 24 an entity may appeal an order issued by the director or the 25 department pursuant to the department’s authority in Code 26 chapter 455B. The start of the 60-day period is contingent 27 on what type of entity seeks an appeal. Division I makes 28 conforming changes throughout Code chapter 455B. The issuance 29 and appeal of an order pursuant to Code chapters 455D (waste 30 volume reduction and recycling) and 458A (oil, gas, and other 31 minerals) also conform to the new 60-day period. 32 Division II of the bill allows the department to exempt from 33 permit requirements a class of waste disposal systems that do 34 not discharge into water of the state and are not currently 35 -6- LSB 1247HV (2) 88 js/tm 6/ 7

H.F. 677 exempt. Division II also allows the director of the department 1 to waive the permit requirement of an individual system that 2 does not discharge into a water of the state. To issue such an 3 exemption or waiver, the environmental protection commission 4 or the director must first consider the volume, location, 5 frequency, and nature of the system or class of systems. 6 Division II provides that a rural water association organized 7 under Code chapter 357A or 504 shall be considered to have met 8 permitting requirements for sewer extensions and water supply 9 distribution systems if the rural water association employs or 10 retains a licensed engineer. 11 -7- LSB 1247HV (2) 88 js/tm 7/ 7