SF 2304: Relating to certain public utilities, including the development of ratemaking principles permitted for recovery costs of certain investments in infrastructure by water and wastewater utilities and cost considerations for acquisitions of water, sanitary sewer, or storm water utilities

What it does

This bill establishes procedures for system enhancement of infrastructure, including the development of ratemaking principles permitted for the recovery costs of certain investments in infrastructure by water and wastewater utilities. The bill states the intent of the general assembly that these mechanisms be available to support the development and sustainability of adequate and resilient water and wastewater treatment facilities, and provides that the commission is not bound by traditional ratemaking principles when evaluating system enhancement infrastructure.

Senate subcommittee · named January 22, 2026

• Sen. Scott Webster (R) · scott.webster@legis.iowa.gov
• Sen. Kerry Gruenhagen (R) · kerry.gruenhagen@legis.iowa.gov
• Sen. Izaah Knox (D) · izaah.knox@legis.iowa.gov

Lobbying · 3 for, 2 against

For: Iowa American Water Co.; Iowa Association of Business and Industry (ABI); Iowa Utility Association

Against: AARP Iowa; Iowa Association of Municipal Utilities

In plain words

1. January 22, 2026Filed in the Senate and sent to the Commerce committee · as SSB 3068
2. January 22, 2026Senate subcommittee named: Webster, Gruenhagen and Knox · as SSB 3068
3. February 4, 2026Subcommittee recommended passing it · as SSB 3068
4. February 11, 2026Approved by the Senate committee, and given a new number: SF 2304 · as SSB 3068
5. February 12, 2026Filed in the Senate
6. February 12, 2026Approved by the Senate committee
7. March 31, 2026Passed the Senate, 46–0
8. April 6, 2026Took the place of HF 2581 on the House floor (the same legislation)
9. April 6, 2026Passed the House, 92–0
10. May 5, 2026Sent to the Governor
11. June 1, 2026Signed into law