Bill Text: IA SF512 | 2017-2018 | 87th General Assembly | Enrolled

Iowa Senate Bill 512 (Prior Session Legislation)

Bill Title: A bill for an act relating to water quality by amending the wastewater treatment financial assistance program, creating a water quality infrastructure fund, establishing a water quality financing program, providing for cost-share programs for infrastructure on agricultural and urban land under the water quality initiative, creating a water service excise tax and a related sales tax exemption, making transfers and appropriations and other changes properly related to water quality, and including effective date provisions. (Formerly SSB 1034 and SF 482.) Various effective dates; see section 27 of bill.

Spectrum: Committee Bill

Status: (Passed) 2018-01-31 - Signed by Governor. S.J. 338. [SF512 Detail]

Download: Iowa-2017-SF512-Enrolled.html

Senate File 512 - Enrolled

SENATE FILE
BY COMMITTEE ON
APPROPRIATIONS

(SUCCESSOR TO SF 482)
(SUCCESSOR TO SSB
1034)
\5
A BILL FOR
\1
Senate File 512

AN ACT
RELATING TO WATER QUALITY BY AMENDING THE WASTEWATER
TREATMENT FINANCIAL ASSISTANCE PROGRAM, CREATING A WATER
QUALITY INFRASTRUCTURE FUND, ESTABLISHING A WATER QUALITY
FINANCING PROGRAM, PROVIDING FOR COST=SHARE PROGRAMS FOR
INFRASTRUCTURE ON AGRICULTURAL AND URBAN LAND UNDER THE
WATER QUALITY INITIATIVE, CREATING A WATER SERVICE EXCISE
TAX AND A RELATED SALES TAX EXEMPTION, MAKING TRANSFERS AND
APPROPRIATIONS AND OTHER CHANGES PROPERLY RELATED TO WATER
QUALITY, AND INCLUDING EFFECTIVE DATE PROVISIONS.

BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
Section 1. Section 8.57, subsection 5, paragraph f,
subparagraph (1), Code 2017, is amended by adding the following
new subparagraph division:
NEW SUBPARAGRAPH DIVISION. (0c) (i) For each fiscal year
of the period beginning July 1, 2020, and ending June 30, 2029,
of the wagering tax receipts received pursuant to sections
99D.17 and 99F.11, the next fifteen million dollars shall be
deposited in the water quality infrastructure fund created in
section 8.57B.
(ii) Notwithstanding subparagraph subdivision (i), this
subparagraph division (0c) is repealed on one of the following
dates, whichever is earlier:
(A) On July 1 following the enactment date that the tax
rate for the sales tax imposed upon the retail sales price of
tangible personal property and the furnishing of enumerated
services sold in this state in effect on July 1, 2016, is
increased.
(B) On July 1, 2029.
Sec. 2. Section 8.57, subsection 5, paragraph f,
subparagraph (1), subparagraph division (d), Code 2017, is
amended to read as follows:
(d) For the fiscal year beginning July 1, 2013, and for
each fiscal year thereafter, the total moneys in excess of the
moneys deposited under this paragraph "f" in the revenue bonds
debt service fund, the revenue bonds federal subsidy holdback
fund, the vision Iowa fund, the water quality infrastructure
fund, and the Iowa skilled worker and job creation fund shall
be deposited in the rebuild Iowa infrastructure fund and shall
be used as provided in this section, notwithstanding section
8.60.
Sec. 3. NEW SECTION. 8.57B Water quality infrastructure
fund ==== creation ==== appropriations.
1. A water quality infrastructure fund is created within
the division of soil conservation and water quality of the
department of agriculture and land stewardship. The fund
shall consist of moneys transferred pursuant to section 8.57,
subsection 5, paragraph "f", subparagraph (1), subparagraph
division (0c), moneys transferred to the fund pursuant to
section 423G.6, and appropriations made to the fund and
transfers of interest, earnings, and moneys from other funds
as provided by law.
2. The fund shall be separate from the general fund of the
state and the balance in the fund shall not be considered part
of the balance of the general fund of the state. However, the
fund shall be considered a special account for the purposes
of section 8.53, relating to generally accepted accounting
principles.
3. Moneys in the fund are appropriated to the division
of soil conservation and water quality of the department of
agriculture and land stewardship for the exclusive purpose of
supporting water quality agriculture infrastructure programs
created in section 466B.43.
4. Notwithstanding section 8.33, moneys in the fund
that remain unencumbered or unobligated at the close of a
fiscal year shall not revert but shall remain available for
expenditure for the purposes designated. Notwithstanding
section 12C.7, subsection 2, interest or earnings on moneys in
the fund shall be credited to the fund.
Sec. 4. Section 16.134, Code 2017, is amended to read as
follows:
16.134 Wastewater and drinking water treatment financial
assistance program.
1. The Iowa finance authority shall establish and
administer a wastewater and drinking water treatment financial
assistance program. The purpose of the program shall be to
provide financial assistance to enhance water quality. The
program shall be administered in accordance with rules adopted
by the authority pursuant to chapter 17A. For purposes of
this section, "program" means the wastewater and drinking water
treatment financial assistance program and "committee" means the
water quality financing review committee created in subsection
9.
2. A wastewater and drinking water treatment financial
assistance fund is created and shall consist of appropriations
made to the fund and transfers of interest, earnings, and
moneys from other funds as provided by law. Moneys transferred
to the fund pursuant to section 16.134A are appropriated to the
authority for purposes of the program. Moneys in the fund are
not subject to section 8.33. Notwithstanding section 12C.7,
subsection 2, interest or earnings on moneys in the fund shall
be credited to the fund.
3. Financial assistance under the program shall be used
to install or upgrade wastewater treatment facilities and
systems and drinking water treatment facilities and systems,
including source water protection projects, and for engineering
or technical assistance for facility planning and design.
4. The authority committee shall distribute approve
financial assistance in from the fund in accordance with the
following:
a. The goal of the program shall be to base awards on the
impact of the grant combined with other sources of financing to
ensure that sewer rates do not exceed one and one=half percent
of a community's median household income.
b. a. Communities shall be eligible for financial
assistance by qualifying as Priority shall be given for
projects in which a disadvantaged community and is seeking
financial assistance for the installation or upgrade of
wastewater treatment facilities due to regulatory activity
by the department of natural resources and drinking water
treatment facilities. For purposes of this section, the term
"disadvantaged community" means the same as defined by the
department.
c. b. Priority shall be given to projects in which the
meeting criteria established in section 455B.199B in which the
applicant seeks financial assistance is to be used to obtain
with financing under the water pollution control works and
drinking water facilities financing program pursuant to section
16.131 or other federal, or state, or private financing.
d. c. Priority shall also be given to projects whose
completion will provide significant improvement to water
quality in the relevant watershed.
e. d. Priority shall also be given to communities that
employ an alternative wastewater treatment technology pursuant
to section 455B.199C.
f. e. Priority shall be also be given to those communities
where sewer or water rates are the highest as a percentage of
that community's median household income.
f. Priority shall also be given to communities that employ
technology to address the latest version of the "Iowa Nutrient
Reduction Strategy" initially presented in November 2012 by the
department of agriculture and land stewardship, the department
of natural resources, and Iowa state university of science and
technology.
g. Financial assistance in the form of grants shall be
issued on an annual basis.
h. An applicant shall not receive a grant that exceeds five
hundred thousand dollars.
4A. A utility management organization formed under chapter
28E or operated by a rural water system organized under chapter
357A or chapter 504 shall be considered eligible for financial
assistance under the program.
5. The authority in cooperation with the department of
natural resources shall share provide information and resources
to the committee when the committee is determining the
qualifications of a community for financial assistance from the
fund.
6. The authority shall enter into agreements with financial
assistance recipients and distribute moneys under the program
pursuant to financial assistance determinations made by the
committee. The authority may use an amount of not more than
four one percent of any moneys appropriated for deposit in the
fund for administration purposes.
7. By October 1 of each year, the authority shall submit
a report to the governor and the general assembly itemizing
expenditures under the program during the previous fiscal year,
if any.
8. a. Beginning September 1, 2027, and every ten years
thereafter, a program review committee is established for
purposes of reviewing the wastewater and drinking water
treatment financial assistance program. By December 1 of the
same year, the program review committee shall file a report
with the governor and the general assembly that reviews the
effectiveness of the program during the prior ten fiscal years.
b. The program review committee shall consist of the
following members:
(1) The governor or the governor's designee.
(2) The secretary of agriculture or the secretary's
designee.
(3) The executive director of the authority or the executive
director's designee.
(4) The director of the department of natural resources or
the director's designee.
(5) Four members of the general assembly, with two from the
senate and two from the house of representatives and not more
than one member from each chamber being from the same political
party. The two senators shall be designated one member each
by the president of the senate, after consultation with the
majority leader of the senate, and by the minority leader of
the senate. The two representatives shall be designated one
member each by the speaker of the house of representatives,
after consultation with the majority leader of the house of
representatives, and by the minority leader of the house of
representatives.
c. Staffing services shall be provided by the authority.
9. a. A water quality financing review committee is
created consisting of the secretary of agriculture or the
secretary's designee, the executive director of the authority
or the executive director's designee, and the director of the
department of natural resources or the director's designee.
b. The committee shall review and approve or deny
applications for financial assistance under the wastewater
and drinking water treatment financial assistance program
established in this section.
Sec. 5. NEW SECTION. 16.134A Water quality financial
assistance fund.
1. A water quality financial assistance fund is created in
the state treasury as a revolving fund.
2. The fund shall consist of all of the following:
a. (1) Moneys transferred to the fund pursuant to section
423G.6.
(2) This paragraph "a" is repealed on January 1, 2030.
b. Appropriations made to the fund and transfers of
interest, earnings, and moneys from other funds as provided by
law.
3. For each fiscal year in the fiscal period beginning
July 1, 2018, and ending June 30, 2029, there is appropriated
the following percentages of the balance of the fund for the
following purposes:
a. Forty percent to the Iowa finance authority to support
the wastewater and drinking water treatment financial
assistance program created in section 16.134.
b. Forty=five percent to the Iowa finance authority to be
credited to the water quality financing program fund created
pursuant to section 16.144.
c. Fifteen percent to the division of soil conservation
and water quality of the department of agriculture and land
stewardship to support the water quality urban infrastructure
program created in section 466B.44.
4. Moneys in the fund are not subject to section 8.33.
Notwithstanding section 12C.7, subsection 2, interest or
earnings on moneys in the fund shall be credited to the fund.
Sec. 6. NEW SECTION. 16.142 Definitions.
As used in this part, unless the context otherwise requires:
1. "Cost" means all costs, charges, expenses, or other
indebtedness incurred by a loan recipient and determined by
the authority as reasonable and necessary for carrying out
all works and undertakings necessary or incidental to the
accomplishment of any project.
2. "Eligible entity" means a municipality or a landowner,
as determined by the authority, a public utility as defined
in section 476.1, or a rural water district or rural water
association as defined in section 357A.1.
3. "Loan recipient" means an eligible entity that has
received a loan under the program.
4. "Municipality" means a governmental body such as a state
agency or a political subdivision of the state. Municipality
includes but is not limited to a city, city utility, county,
soil and water conservation district, sanitary district, a
subdistrict of any of the foregoing districts, a state agency,
or other governmental body or corporation empowered to provide
sewage collection and treatment services or drinking water, or
any entity jointly exercising governmental powers pursuant to
chapter 28E or 28F, or any other combination of two or more
governmental bodies or corporations acting jointly under the
laws of this state in connection with a project.
5. "Program" means the water quality financing program
created in this part.
6. "Project" means any combination of improvements,
structures, developments, tasks, actions, constructions,
modifications, operations, or practices designed to improve
water quality that are proposed by an eligible entity and
approved by the authority. "Project" includes but is not
limited to any of the following:
a. A project meeting the requirements of part 2 of this
subchapter.
b. A project, operation, or practice undertaken or carried
out to address watershed protection, flood prevention, or water
quality improvement.
c. A project meeting the requirements of a sponsor project
under section 455B.199.
Sec. 7. NEW SECTION. 16.143 Water quality financing
program.
1. The authority, in cooperation with the department of
natural resources and the department of agriculture and land
stewardship, shall establish and administer a water quality
financing program. The purpose of the program shall be to
provide financial assistance to enhance the quality of surface
water and groundwater, particularly by providing financial
assistance for projects designed to improve water quality
by addressing point and nonpoint sources, with a higher
prioritization provided to collaborative efforts.
2. The authority shall determine the interest rate
and repayment terms for loans made under the program, in
cooperation with the department of natural resources and
the department of agriculture and land stewardship, and the
authority shall enter into loan agreements with eligible
entities in compliance with and subject to the terms and
conditions of the program as described in this part.
3. The authority may charge loan recipients fees and assess
costs against such recipients necessary for the continued
operation of the program. Such fees and costs shall not exceed
the costs directly associated with the administration of the
program. Fees and costs collected pursuant to this subsection
shall be deposited in the appropriate fund or account created
in section 16.144.
4. The program shall be administered by the authority in
accordance with rules adopted by the authority pursuant to
chapter 17A.
Sec. 8. NEW SECTION. 16.144 Water quality financing program
fund ==== appropriation ==== other funds.
1. a. A water quality financing program fund is created
and shall consist of appropriations made to the fund, moneys
credited to the fund pursuant to section 16.134A, and transfers
of interest, earnings, and moneys from other funds as provided
by law. The fund shall be administered by the authority as
a revolving fund. Moneys in the fund are appropriated to
the authority for purposes of the program. Notwithstanding
section 8.33, moneys in the fund that remain unencumbered or
unobligated at the close of a fiscal year shall not revert
but shall remain available for expenditure for the purposes
designated. Notwithstanding section 12C.7, subsection 2,
interest or earnings on moneys in the fund shall be credited
to the fund.
b. The authority shall use the moneys in the fund to provide
financial assistance to eligible entities under the program.
The authority may provide financial assistance in the form
deemed most convenient for the efficient financing of projects,
including loans, forgivable loans, or grants. The authority
shall administer the fund and the program in such a manner
as to provide a permanent source of water quality project
financial assistance to eligible entities.
c. The authority may annually use an amount of not more
than one percent of the moneys in the fund for administrative
purposes.
2. a. The authority may establish and maintain other
funds and accounts determined to be necessary to carry out the
purposes of the program and shall provide for the funding,
administration, investment, restrictions, and disposition of
the funds and accounts.
b. Moneys appropriated to and used by the authority for
purposes of paying the costs and expenses associated with
the administration of the program shall be administered as
determined by the authority.
c. All moneys transferred to the authority for purposes of
the program shall be deposited and held in a fund or account
established and maintained pursuant to this section.
3. The funds or accounts held by the authority, or a trustee
acting on behalf of the authority pursuant to a trust agreement
related to the program, shall not be considered part of the
general fund of the state, are not subject to appropriation for
any other purpose by the general assembly, and in determining
a general fund balance shall not be included in the general
fund of the state, but shall remain in the funds and accounts
maintained by the authority or trustee pursuant to a trust
agreement. Funds and accounts held by the authority, or a
trustee acting on behalf of the authority pursuant to a trust
agreement related to the program, are separate dedicated funds
and accounts under the administration and control of the
authority and subject to section 16.31.
4. By October 1, 2018, and by October 1 of each year
thereafter, the authority shall submit a report to the governor
and the general assembly itemizing expenditures from the fund,
if any, during the previous fiscal year.
Sec. 9. NEW SECTION. 16.145 Eligible entities ==== agreements
required.
1. An eligible entity may apply to the authority for
financial assistance under the program by submitting a plan
that meets the following requirements:
a. The plan includes one or more projects that improve
water quality in the local area or watershed. Projects shall
use practices identified in the latest version of the document
entitled "Iowa Nutrient Reduction Strategy" initially presented
in November 2012 by the department of agriculture and land
stewardship, the department of natural resources, and Iowa
state university of science and technology. A drainage or
levee district established under chapter 468 shall utilize the
installation of edge=of=field infrastructure as described in
section 466B.43.
b. The plan describes in detail the manner in which the
projects will be financed and undertaken, including, as
applicable, the sources of revenue directed to financing the
improvements as well as the eligible entities that will be
receiving the revenues and how such revenues will be spent on
the projects.
2. The authority shall review and approve or deny
applications for financial assistance. The provision of
financial assistance under the program shall take into account,
as applicable, the number of municipalities, landowners, public
utilities, rural water districts, or rural water associations
comprising an eligible entity and the eligible entity's
financing capacity. The authority shall score applications
for financial assistance according to rules adopted pursuant
to this part. The authority shall only provide financial
assistance to eligible entities that have sufficient financing
capacity and that submit an appropriate plan designed to
improve water quality.
3. An approved eligible entity shall enter into an agreement
with the authority for the provision of financial assistance.
The agreement shall include standard terms for the receipt
of program moneys and any other terms the authority deems
necessary or convenient for the efficient administration of the
program.
Sec. 10. Section 423.3, Code 2017, is amended by adding the
following new subsection:
NEW SUBSECTION. 103. a. The sales price from the sale or
furnishing by a water utility of a water service in the state
to consumers or users.
b. For purposes of this subsection:
(1) "Water service" means the delivery of water by piped
distribution system.
(2) "Water utility" means a public utility as defined in
section 476.1 that furnishes water by piped distribution system
to the public for compensation.
Sec. 11. NEW SECTION. 423G.1 Short title.
This chapter may be cited as the "Water Service Tax Act".
Sec. 12. NEW SECTION. 423G.2 Definitions.
1. All words and phrases used in this chapter and defined in
section 423.1 have the same meaning given them by section 423.1
for purposes of this chapter.
2. As used in this chapter, "water service" and "water
utility" mean the same as defined in section 423.3, subsection
103.
Sec. 13. NEW SECTION. 423G.3 Water service tax.
An excise tax at the rate of six percent is imposed on the
sales price from the sale or furnishing by a water utility of a
water service in the state to consumers or users.
Sec. 14. NEW SECTION. 423G.4 Exemptions.
The sales price from transactions exempt from state sales
tax under section 423.3, except section 423.3, subsection 103,
is also exempt from the tax imposed by this chapter.
Sec. 15. NEW SECTION. 423G.5 Administration by director.
1. The director of revenue shall administer the water
service tax as nearly as possible in conjunction with the
administration of the state sales and use tax law, except that
portion of the law that implements the streamlined sales and
use tax agreement. The director shall provide appropriate
forms, or provide on the regular state tax forms, for reporting
water service tax liability.
2. The director may require all persons who are engaged
in the business of deriving any sales price or purchase
price subject to tax under this chapter to register with
the department. The director may also require a tax permit
applicable only to this chapter for any retailer not
collecting, or any user not paying, taxes under chapter 423.
3. Section 422.25, subsection 4, sections 422.30, 422.67,
and 422.68, section 422.69, subsection 1, sections 422.70,
422.71, 422.72, 422.74, and 422.75, section 423.14, subsection
1, and sections 423.23, 423.24, 423.25, 423.31 through
423.35, 423.37 through 423.42, and 423.47, consistent with the
provisions of this chapter, shall apply with respect to the tax
authorized under this chapter, in the same manner and with the
same effect as if the excise taxes on the sale or furnishing of
a water service were retail sales taxes within the meaning of
those statutes. Notwithstanding this subsection, the director
shall provide for quarterly filing of returns and for other
than quarterly filing of returns both as prescribed in section
423.31. All taxes collected under this chapter by a retailer
or any user are deemed to be held in trust for the state of
Iowa.
Sec. 16. NEW SECTION. 423G.6 Deposit of revenues.
1. All moneys received and all refunds shall be deposited in
or withdrawn from the general fund of the state.
2. Subsequent to the deposit in the general fund of the
state, the department shall transfer the following amounts to
the following funds:
a. For revenues collected on or after July 1, 2018, but
before August 1, 2019, one=twelfth of the revenues to the
water quality infrastructure fund created in section 8.57B,
and one=twelfth of the revenues to the water quality financial
assistance fund created in section 16.134A.
b. For revenues collected on or after August 1, 2019,
but before August 1, 2020, one=sixth of the revenues to the
water quality infrastructure fund created in section 8.57B,
and one=sixth of the revenues to the water quality financial
assistance fund created in section 16.134A.
c. For revenues collected on or after August 1, 2020,
one=half of the revenues to the water quality financial
assistance fund created in section 16.134A.
Sec. 17. NEW SECTION. 423G.7 Future repeal.
This chapter is repealed upon the occurrence of one of the
following, whichever is earlier:
1. The enactment date that the tax rate for the sales
tax imposed upon the retail sales price of tangible personal
property and the furnishing of enumerated services sold in this
state in effect on July 1, 2016, is increased.
2. July 1, 2029.
Sec. 18. Section 455B.171, Code 2017, is amended by adding
the following new subsections:
NEW SUBSECTION. 10A. "Iowa nutrient reduction strategy"
means a water quality initiative developed and updated by the
department of agriculture and land stewardship, the department
of natural resources, and the college of agriculture and life
sciences at Iowa state university of science and technology in
order to assess and reduce nutrients in this state's watersheds
that utilize a pragmatic, strategic, and coordinated approach
with the goal of accomplishing reductions over time.
NEW SUBSECTION. 15A. "Nutrient" means total nitrogen and
total phosphorus.
Sec. 19. Section 455B.171, subsection 19, Code 2017, is
amended to read as follows:
19. "Point source" means any discernible, confined, and
discrete conveyance, including but not limited to any pipe,
ditch, channel, tunnel, conduit, well, discrete fissure,
container, rolling stock, concentrated animal feeding
operation, or vessel or other floating craft, from which
pollutants are or may be discharged. "Point source" does not
include agricultural storm water discharge and return flows
from irrigated agriculture.
Sec. 20. Section 455B.177, Code 2017, is amended by adding
the following new subsection:
NEW SUBSECTION. 3. The general assembly further finds
and declares that it is in the interest of the people of Iowa
to assess and reduce nutrients in surface waters over time by
implementing the Iowa nutrient reduction strategy. To evaluate
the progress achieved over time toward the goals of the Iowa
nutrient reduction strategy and the United States environmental
protection agency gulf hypoxia action plan, the baseline
condition shall be calculated for the time period from 1980 to
1996.
Sec. 21. Section 466B.3, subsection 3, paragraph c, Code
2017, is amended to read as follows:
c. Whether the funds, programs, and regulatory efforts
coordinated by the council eventually result in a long=term
improvement to the quality of surface water in Iowa. To
evaluate the progress achieved over time toward the goals of
the Iowa nutrient reduction strategy, as defined in section
455B.171, and the United States environmental protection agency
gulf hypoxia action plan, the baseline condition shall be
calculated for the time period from 1980 to 1996.
Sec. 22. Section 466B.42, Code 2017, is amended to read as
follows:
466B.42 Water quality initiative.
The division shall establish a water quality initiative
in order to assess and reduce nutrients in this state's
watersheds, including subwatersheds, and regional watersheds,
and for implementing its responsibilities under the Iowa
nutrient reduction strategy as defined in section 455B.171.
The division shall establish and administer projects to
reduce nutrients in surface waters from nonpoint sources in
a scientific, reasonable, and cost=effective manner. The
division shall utilize a pragmatic, strategic, and coordinated
approach with the goal of accomplishing reductions over time.
To evaluate the progress achieved over time toward the goals
of the Iowa nutrient reduction strategy and the United States
environmental protection agency gulf hypoxia action plan, the
baseline condition shall be calculated for the time period from
1980 to 1996.
Sec. 23. NEW SECTION. 466B.43 Water quality agriculture
infrastructure programs.
1. As part of the water quality initiative established
pursuant to section 466B.42, the division shall administer
water quality agriculture infrastructure programs created in
this section.
2. The purpose of the programs is to support projects for
the installation of infrastructure, including conservation
structures, practices, or other measures that reduce
contributing nutrient loads, associated sediment, or
contaminants from sources to surface waters. The programs
shall be administered in a manner that is consistent with
the latest version of the "Iowa Nutrient Reduction Strategy"
initially presented in November 2012 by the department of
agriculture and land stewardship, the department of natural
resources, and Iowa state university of science and technology.
3. An edge=of=field infrastructure program is created.
The program shall support projects located on agricultural
land, which may include demonstration projects, that capture
or filter nutrients entering into a surface water. The
program's projects shall be limited to infrastructure designed
and installed for use over multiple years, including but not
limited to wetlands, bioreactor systems, saturated buffers,
or land use changes. The program shall be financed on a
cost=share basis.
4. An in=field infrastructure program is created. The
program shall support projects located on agricultural land,
which may include demonstration projects, that decrease erosion
and precipitation=induced surface runoff, increase water
infiltration rates, and increase soil sustainability. The
program's projects shall be limited to infrastructure designed
and installed for use over multiple years, including but not
limited to structures, terraces, and waterways located on
cropland or pastureland, and including but not limited to soil
conservation or erosion control structures or managed drainage
systems. The program shall be financed on a cost=share basis.
5. Any state moneys used to finance a project under a
water quality agriculture infrastructure program shall be
administered according to an agreement entered into by the
division and the owner of the land where the infrastructure
is to be installed. The agreement shall include standard
terms and conditions for the receipt of program moneys and
any other terms and conditions the division deems necessary
or convenient for the efficient administration of the project
or program. The division may support multiple installations
of infrastructure on a single parcel of land. The division
may also combine programs if cost effective. The division
may annually use an amount of not more than four percent of
the moneys used to support each program for administrative
purposes.
6. By October 1, 2018, and each October 1, thereafter, the
division shall submit a report to the governor and the general
assembly itemizing expenditures, by hydrologic unit code 8
watershed, under the programs during the previous fiscal year,
if any.
7. Any information obtained by the division identifying
a person holding a legal interest in agricultural land or
specific agricultural land shall be a confidential record under
section 22.7.
Sec. 24. NEW SECTION. 466B.44 Water quality urban
infrastructure program.
1. As part of the water quality initiative established
pursuant to section 466B.42, the division shall administer a
water quality urban infrastructure program.
2. The purpose of the program is to support watershed
projects and advance implementation of the latest version of
the "Iowa Nutrient Reduction Strategy" initially presented
in November 2012 by the department of agriculture and land
stewardship, the department of natural resources, and Iowa
state university of science and technology, which program
support may include demonstration projects that decrease
erosion, precipitation=induced surface runoff, and storm
water discharges and that increase water infiltration rates.
The program's projects shall be based on Iowa's storm water
management manual published by the department of natural
resources.
3. The program shall be financed on a cost=share basis or
through cooperative agreements with watershed projects funded
through section 455B.199 whose project activities fall outside
the territorial boundaries of a city.
4. Any state moneys used to finance a project under a water
quality urban infrastructure program shall be administered
according to an agreement entered into by the division and the
owner of the land where the infrastructure is to be installed.
The agreement shall include standard terms and conditions
for the receipt of program moneys and any other terms and
conditions the division deems necessary or convenient for
the efficient administration of the project or program. The
division may support multiple installations of infrastructure
on a single parcel of land. The division may annually use an
amount of not more than four percent of the moneys used to
support the program for administrative purposes.
5. Notwithstanding any other provision in this section
to the contrary, beginning on July 1, 2018, the division may
use any amount available to support the water quality urban
infrastructure program to instead extend and support the
three=year data collection of in=field agricultural practices
project as enacted in 2015 Iowa Acts, ch. 132, {18.
6. Notwithstanding any other provision of this section
to the contrary, the division may use any amount available
to support the water quality urban infrastructure program to
develop and maintain an online resource displaying measurable
indicators of desirable change in water quality within the
state's watersheds. These measurable indicators may include
but are not limited to public and private funding inputs,
involvement in water quality projects, and improvements, land
use, practice adoption, calculated load reduction, and measured
loads at existing monitoring stations.
7. By October 1, 2018, and by October 1 of each year
thereafter, the division shall submit a report to the governor
and the general assembly itemizing expenditures under the
program, if any, during the previous fiscal year.
8. Any information obtained by the division identifying a
person holding a legal interest in land or specific land shall
be a confidential record under section 22.7.
Sec. 25. INTERIM STUDY COMMITTEE ON SMALL CITIES AND CLEAN
WATER STANDARDS.
1. The legislative council is requested to establish a study
committee for the 2017 interim to identify and comprehensively
review the financial and other challenges faced by small
cities in complying with the various state and federal clean
water standards, and to consider options for addressing those
challenges.
2. The interim committee's review shall include an
evaluation of the future effectiveness of the wastewater
and drinking water treatment financial assistance program
created in this Act in section 16.134 and the water quality
financing program created in sections 16.142 through 16.145,
and may include evaluations of other existing or proposed
state programs as desired. The committee shall seek input
and may request information or assistance from public and
private stakeholders and experts, including utility management
organizations, the Iowa association of business and industry,
the department of natural resources, the Iowa finance
authority, the department of agriculture and land stewardship,
the economic development authority, the Iowa chamber alliance,
the Iowa league of cities, and the Iowa state association of
counties.
3. The interim committee shall submit its findings and
recommendations to the general assembly for consideration
during the 2018 legislative session.
Sec. 26. LEGISLATIVE INTENT. It is the intent of the
general assembly that the amendment in this Act to the
definition of point source in section 455B.171, subsection
19, is a conforming amendment consistent with current state
and federal law, and that the amendment does not change the
application of current law but instead reflects current law
both before and after the enactment of this Act.
Sec. 27. EFFECTIVE DATE. The following provision or
provisions of this Act take effect July 1, 2018:
1. The section of this Act enacting section 423.3,
subsection 103.
2. The sections of this Act enacting sections 423G.1,
423G.2, 423G.3, 423G.4, 423G.5, 423G.6, and 423G.7.

JACK WHITVER

LINDA UPMEYER

W. CHARLES SMITH

KIM REYNOLDS

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