City Officials Role in Water Quality #IowaLeague17 City Officials Role in Water Quality Dustin Miller, Attorney, Nyemaster Goode P.C. Handouts and presentations are available through the event app and at www.iowaleague.org.

Why should you care? www.nyemaster.com September 2017 ©2017 Nyemaster Goode, P.C.

Simple terms REGULATION OF… Water Sewer Storm Sewer Industries www.nyemaster.com September 2017 ©2017 Nyemaster Goode, P.C.

Simpler terms Rates www.nyemaster.com September 2017 ©2017 Nyemaster Goode, P.C.

Simplest terms Unaffordable Utility Rates Not Being Reelected or Being Out of Work www.nyemaster.com September 2017 ©2017 Nyemaster Goode, P.C.

Clean Water Act (CWA) Background Broad Definition of Pollutant Examples: hard metals, ammonia, e coli, nitrogen, phosphorus, etc. National Pollution Discharge Elimination System (NPDES) – Places effluent limitations on what may be discharged by a water source Examples: Drinking water, waste water, storm water and industrial Point Source (PS) - 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. Non-Point Source (NPS) www.nyemaster.com September 2017 ©2017 Nyemaster Goode, P.C.

Iowa nutrient reduction strategy Focused on Nitrogen and Phosphorus to the Mississippi River Final Draft Released in January 2013 Total Reduction Goal: 45% for Non-Point Source (NPS) and Point Source (PS) Integrated Strategy Non-Point Source: Science Assessment for NPS agricultural producers with voluntary implementation of conservation practices Point Source: Technology Assessment for major wastewater treatment facilities Estimated Cost NPS: Initial Investment Costs range from $1.2 to $4 billion PS: Capital and operation costs over 20 years of approximately $1.5 billion Water Quality Trading Included in Final Draft and Annual Updates www.nyemaster.com September 2017 ©2017 Nyemaster Goode, P.C.

Nitrogen Makeup www.nyemaster.com September 2017 Source: Iowa Nutrient Reduction Strategy and Libra, R.D.,Wolter, C.F., and Langel, R.J. 2004. Nitrogen and Phosphorus Budgets for Iowa and Iowa Watersheds. Iowa Geological Survey Technical Information Series 47, 43p www.nyemaster.com September 2017 ©2017 Nyemaster Goode, P.C.

Water Quality Trading 2003 EPA Water Quality Trading Policy Allows a Point Source to Purchase "Credits" to Reduce Pollutants More Cost Effective Than with Technology at the Plant Previously Solely Compliance Driven with Numeric Nutrient Criteria or TMDL Too Restrictive and Limited Success Updated Language in 2016 INRS with Iowa League of Cities' 2014 USDA NRCS Conservation Innovation Grant www.nyemaster.com September 2017 ©2017 Nyemaster Goode, P.C.

Iowa Nutrient Reduction exchange Utilize Motivations Environmental benefits, flood mitigation, source water protection, economic development, habitat development, nutrient reduction, increased production Track Multi-Benefit Investments Provide Incentives for Investment Improved ratios, environmental excellence, longer term schedules, etc. www.nyemaster.com September 2017 ©2017 Nyemaster Goode, P.C.

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Resources for Investment www.nyemaster.com September 2017 ©2017 Nyemaster Goode, P.C.

Iowa SRF – sponsored Project Program Overview Borrowing from the Clean Water SRF from the Iowa Finance Authority (IFA) for an infrastructure project + a nonpoint source watershed project that is financed through an interest rate reduction on the original loan Cities Dubuque $70 million wastewater upgrade allowed for projects in Bee Branch and Catfish Creek Watersheds Fort Dodge $30 million water and wastewater projects created three phase project with stream stabilization, lake watershed practices and practices along Des Moines River Northwood $9 million wastewater uprade allowed for nearly $900,000 CREP Wetland with Drainage District 21 and includes partnership with IDALS www.nyemaster.com September 2017 ©2017 Nyemaster Goode, P.C.

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USDA NRCS – Regional Conservation Partnership Program (RCPP) Overview USDA Program through the Natural Resources Conservation Service (NRCS) that utilizes multiple funding authorities to connect partners with producers and private land owners to design and implement voluntary conservation solutions Cities Cedar Rapids The Middle Cedar Partnership Project (MCPP) received $2.1 million in grant in 2015 and leveraged an additional $2 million in match Charles City City along with the Upper Cedar Watershed Urban- Rural Partnership received $1.6 million in 2016 www.nyemaster.com September 2017 ©2017 Nyemaster Goode, P.C.

HUD Flood Resilience Grant Overview The Iowa Flood Center was part of a multidisciplinary team that brought the new $96.9M HUD grant to Iowa. The Iowa Watersheds Approach will address issues associated with the devastating and dangerous floods Iowa communities experience year after year. Through a holistic approach, the IWA will seek to reduce flood risk, improve water quality, increase resilience, engage stakeholders, improve the quality of life for vulnerable populations, and develop a program that is scalable and replicable in other areas. Watersheds Dubuque West Nishnabotna (Mills, Fremont) East Nishnabotna (Fremont) North Raccoon (Buena Vista, Pocahontas) Middle Cedar (Tama, Benton) Clear Creek (Iowa, Johnson) English (Iowa) Upper Wapsipinicon (Buchanan, Delaware) Upper Iowa (Allamakee, Winneshiek). www.nyemaster.com September 2017 ©2017 Nyemaster Goode, P.C.

Iowa Water Quality Initiative Overview Portion of Iowa Water Quality Initiative through the Iowa Department of Agriculture and Land Stewardship is focused on urban conservation projects with annual request for proposals Cities Storm Lake Rural/Urban interface bioreactor project Des Moines Easter Lake stormwater project Davenport Urban bioreactor project www.nyemaster.com September 2017 ©2017 Nyemaster Goode, P.C.

Iowa Water Quality Legislation Overview Priority legislation for both Chambers and the Governor that will include a state-money only Revolving Loan Fund and a PS grant program www.nyemaster.com September 2017 ©2017 Nyemaster Goode, P.C.

What Next? www.nyemaster.com September 2017 ©2017 Nyemaster Goode, P.C.

2015 Conservation innovation grant Technical Advisory Committee Storm Lake and Dubuque Pilot Trades Early Adoption Letter Incentives List Housing of NRE www.nyemaster.com September 2017 ©2017 Nyemaster Goode, P.C.

Questions and Contact Information Dustin Miller dmiller@nyemaster.com (515) 883-0925 Robert Palmer Director of Government Affairs and Legislative Counsel robertpalmer@iowaleague.org (515) 244-7282 www.nyemaster.com September 2017 ©2017 Nyemaster Goode, P.C.