Second ABI-supported Water Quality Bill Passes
May 10, 2018
In the waning hours of the legislative session, a water quality bill containing language ABI pushed for from the beginning of the water quality policy discussion passed the Iowa Senate and was sent to the Governor. HF 2440 makes technical and substantive changes to SF 512, the comprehensive water quality bill passed by the Legislature and signed by the Governor early in session.
Key for industry, the bill adds “specified industry” to the definition of “eligible entity” for the revolving loan fund created in SF 512. This means industries that must comply with the nutrient reduction strategy–the statewide plan to reduce the amount of nitrogen and phosphorous in Iowa’s waters–will be able to apply for loans or grants from the fund just like other point and non-point sources for water quality improvement projects.
The new revolving fund, which will be administered by the Iowa Finance Authority, will receive money starting in FY19 from converting the sales tax on water to an excise tax. By FY25 the fund is projected to contain over $6 million annually. This bill gives industry a different way to engage in collaborative water quality projects and a seat at the table on water quality discussions now and as they evolve.