A bill for an act establishing procedures for system enhancement of infrastructure, including for development of ratemaking principles permitted for recovery costs of certain investments in infrastructure by water and wastewater utilities.

HF 2581 allows Iowa water and wastewater utilities to recover costs for specific infrastructure upgrades through a new "system enhancement charge," directly affecting investor-owned utilities regulated by the Iowa Utilities Commission. Utilities must first get commission approval for a detailed multiyear plan showing how projects comply with federal/state environmental regulations (like the Safe Drinking Water Act), including cost estimates and alternatives. The charge, calculated as a monthly fixed fee based on meter size, covers eligible costs like new infrastructure installation or relocation for compliance, but excludes fines or costs already recovered through other means. The commission must review plans within 10 months and ensure charges are "just and reasonable" before utilities can implement them.