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PAG LIN 1 1 DIVISION I 1 2 Section 1. Section 172D.2, Code 1995, is amended to read 1 3 as follows: 1 4 172D.2 COMPLIANCE &endash; A DEFENSE TO NUISANCE ACTIONS. 1 5In any nuisance action or proceeding against a feedlot1 6brought by or on behalf of a person whose date of ownership of1 7realty is subsequent to the established date of operation of1 8that feedlot, proof of complianceCompliance with sections 1 9 172D.3 and 172D.4 shall be an absolute defense, provided that1 10theto any nuisance action or proceeding against a person 1 11 relating to the operation of a feedlot, including but not 1 12 limited to, the care or feeding of animals, the handling or 1 13 transportation of animals, the treatment or disposal of manure 1 14 resulting from the animals, the transportation and application 1 15 of the animal manure, and the creation of noise, odor, dust, 1 16 flies, or fumes arising from the feedlot. However, the 1 17 conditions or circumstances alleged to constitute a nuisance 1 18 are subject to regulatory jurisdiction in accordance with 1 19 either section 172D.3 or 172D.4. 1 20 Sec. 2. NEW SECTION. 204.1 DEFINITIONS. 1 21 1. "Confinement feeding operation" means a confinement 1 22 feeding operation as defined in section 455B.161. 1 23 2. "Construction fee" means the fee referred to in section 1 24 204.3. 1 25 3. "Department" means the department of agriculture and 1 26 land stewardship. 1 27 4. "Fund" means the manure storage indemnity fund created 1 28 in section 204.2. 1 29 5. "Manure" means animal excreta or other commonly 1 30 associated wastes of animals, including but not limited to 1 31 bedding, litter, or feed losses. 1 32 6. "Manure storage structure" means a structure used to 1 33 store manure as part of a confinement feeding operation 1 34 required to be constructed pursuant to a permit issued by the 1 35 department of natural resources pursuant to section 455B.173. 2 1 7. "Permittee" means a person who obtains a permit for the 2 2 construction of a confinement feeding operation, if a manure 2 3 storage structure is connected to the confinement feeding 2 4 operation. 2 5 Sec. 3. NEW SECTION. 204.2 MANURE STORAGE INDEMNITY 2 6 FUND. 2 7 1. A manure storage indemnity fund is created as a 2 8 separate fund in the state treasury under the control of the 2 9 department. The general fund of the state is not liable for 2 10 claims presented against the fund. 2 11 2. The fund consists of moneys from construction fees 2 12 remitted by manure storage permittees referred to in section 2 13 204.3; delinquency penalties; sums collected on behalf of the 2 14 fund by the department through legal action or settlement; 2 15 moneys required to be repaid to the department by a county 2 16 pursuant to this chapter; civil penalties assessed and 2 17 collected by the department of natural resources pursuant to 2 18 section 455B.191, against persons required to obtain a permit 2 19 for the construction of a confinement feeding operation; 2 20 moneys paid as a settlement involving an enforcement action 2 21 for a civil penalty subject to assessment and collection by 2 22 the department of natural resources pursuant to section 2 23 455B.191; interest, property, and securities acquired through 2 24 the use of moneys in the fund; or moneys contributed to the 2 25 fund from other sources. 2 26 3. The moneys collected under this section and deposited 2 27 in the fund shall be used exclusively to indemnify a county 2 28 for expenses related to removing and disposing of manure from 2 29 a manure storage structure, and to pay the administrative 2 30 costs of this chapter. The moneys in the fund are 2 31 appropriated to and for this purpose. Moneys in the fund 2 32 shall not be subject to appropriation for any other purpose. 2 33 4. The treasurer of state shall act as custodian of the 2 34 fund and disburse amounts contained in the fund as directed by 2 35 the department. The treasurer of state is authorized to 3 1 invest the moneys deposited in the fund. The income from such 3 2 investment shall be credited to and deposited in the fund. 3 3 Notwithstanding section 8.33, moneys in the fund are not 3 4 subject to reversion to the general fund of the state. The 3 5 fund shall be administered by the department which shall make 3 6 expenditures from the fund consistent with the purposes set 3 7 out in this chapter. The moneys in the fund shall be 3 8 disbursed upon warrants drawn by the director of revenue and 3 9 finance pursuant to the order of the department. The fiscal 3 10 year of the fund begins July 1. The finances of the fund 3 11 shall be calculated on an accrual basis in accordance with 3 12 generally accepted accounting principles. The auditor of 3 13 state shall regularly perform audits of the fund. 3 14 Sec. 4. NEW SECTION. 204.3 FEES. 3 15 1. The department of natural resources shall deposit into 3 16 the fund fees collected for the issuance of permits for the 3 17 construction of confinement feeding operations as provided in 3 18 section 455B.173. 3 19 2. A permittee is delinquent if the permittee fails to 3 20 submit the full fee when due, or if upon examination, an 3 21 underpayment of the fee is found by the department. The 3 22 permittee is subject to a penalty of ten dollars or an amount 3 23 equal to the amount of the deficiency for each day the 3 24 permittee is delinquent, whichever is less. 3 25 3. On August 31 following the close of each fiscal year, 3 26 moneys which are not obligated or encumbered on June 30 of the 3 27 past fiscal year, less the department's estimate of the cost 3 28 to the fund for pending or unsettled claims, and which are in 3 29 excess of three hundred thousand dollars, shall be deposited 3 30 in the organic nutrient management fund as created in section 3 31 161C.5 for purposes of supporting the organic nutrient 3 32 management program. 3 33 Sec. 5. NEW SECTION. 204.4 CLAIMS AGAINST THE FUND. 3 34 1. A county that has acquired real estate containing a 3 35 manure storage structure following nonpayment of taxes 4 1 pursuant to section 446.19, may make a claim against the fund 4 2 to pay the costs of removing and disposing of the manure 4 3 located in a manure storage structure on the real estate. 4 4 Each claim shall include a bid by a qualified person, other 4 5 than a governmental entity, to remove and dispose of the 4 6 manure for a fixed amount specified in the bid. 4 7 2. The department shall determine if a claim is eligible 4 8 to be satisfied under this section, and do one of the 4 9 following: 4 10 a. Pay the fixed amount specified in the bid submitted by 4 11 the county upon completion of the work. 4 12 b. Obtain a lower fixed amount bid for the work from 4 13 another qualified person, other than a governmental entity, 4 14 and pay the fixed amount in this bid upon completion of the 4 15 work. The department is not required to comply with section 4 16 18.6 in implementing this section. 4 17 3. Upon a determination that the claim is eligible for 4 18 payment, the department shall provide for payment of one 4 19 hundred percent of the claim, as provided in this section, but 4 20 not more than one hundred fifty thousand dollars per claimant. 4 21 If at any time the department determines that there are 4 22 insufficient moneys to make payment of all claims, the 4 23 department shall pay claims according to the date that the 4 24 claims are received by the department. To the extent that a 4 25 claim cannot be fully satisfied, the department shall order 4 26 that the unpaid portion of the payment be deferred until the 4 27 claim can be satisfied. However, the department shall not 4 28 satisfy claims from moneys dedicated for the administration of 4 29 the fund. 4 30 4. In the event of payment of a claim under this section, 4 31 the fund is subrogated to the extent of the amount of the 4 32 payment to all rights, powers, privileges, and remedies of the 4 33 county regarding the payment amount. The county shall render 4 34 all necessary assistance to the department in securing the 4 35 rights granted in this section. A case or proceeding 5 1 initiated by a political subdivision which involves a claim 5 2 submitted to the department shall not be compromised or 5 3 settled without the consent of the department. A county shall 5 4 not be eligible to submit a claim to the department if the 5 5 county has compromised or settled a case or proceeding, 5 6 without the consent of the department. 5 7 5. If upon disposition of the real estate the county 5 8 realizes an amount which exceeds the total amount of the 5 9 delinquent real estate taxes, the county shall forward to the 5 10 fund any excess amount which is not more than the amount 5 11 expended by the fund. 5 12 6. The department of agriculture and land stewardship 5 13 shall adopt administrative rules pursuant to chapter 17A to 5 14 administer this section. 5 15 Sec. 6. NEW SECTION. 204.5 NO STATE OBLIGATION. 5 16 This chapter does not imply any guarantee or obligation on 5 17 the part of this state, or any of its agencies, employees, or 5 18 officials, either elective or appointive, with respect to any 5 19 agreement or undertaking to which this chapter relates. 5 20 Sec. 7. NEW SECTION. 331.302A LIVESTOCK CONFINEMENT 5 21 FEEDING OPERATIONS. 5 22 If the department of natural resources adopts rules 5 23 affecting livestock confinement feeding operations, the board 5 24 of supervisors in the county where the operation is located 5 25 may enforce the rules, pursuant to this section. The board 5 26 must deliver a notice to the department, stating that an 5 27 operation may be in violation of chapter 455B, or rules 5 28 adopted by the department pursuant to that chapter. The board 5 29 shall deliver the notice only after approval of the action by 5 30 resolution. The notice shall be in writing and shall state 5 31 the location of the operation, the name and address of the 5 32 owner, and an explanation of the possible violation. The 5 33 board may inform the department that the board reserves its 5 34 right to enforce the rules as provided in this section, if the 5 35 department fails to initiate an investigation or enforcement 6 1 action or continue an enforcement action which results in an 6 2 administrative hearing or a settlement of the case. The 6 3 county may begin enforcement proceedings after thirty calendar 6 4 days following delivery of the notice, unless the department 6 5 commences and maintains active enforcement of its rules. The 6 6 county shall not initiate or continue an enforcement action if 6 7 the county receives notice and results of the investigation by 6 8 the department that the department has conducted an 6 9 investigation and has determined that the operation is not in 6 10 violation of departmental rules. Once the county begins an 6 11 enforcement action, it shall be the party in interest in the 6 12 case and have sole authority and responsibility to carry out 6 13 the action. The county may refer any case to the attorney 6 14 general. The department of natural resources may assume the 6 15 enforcement action from the county. However, if the 6 16 department assumes the enforcement action, the department 6 17 shall be required to resolve the action. The county shall 6 18 bring the enforcement action according to the same procedures 6 19 used for a county infraction as provided in section 331.307. 6 20 However, the civil penalty may be for any amount that could be 6 21 assessed by the department. 6 22 Sec. 8. Section 455B.134, subsection 3, paragraph f, 6 23 subparagraph (1), unnumbered paragraph 2, Code 1995, is 6 24 amended to read as follows: 6 25 Anaerobic lagoons, constructed or expanded on or after June 6 26 20, 1979, but prior to the effective date of this Act, or 6 27 earthen waste slurry storage basins, constructed or expanded 6 28 on or after July 1, 1990, but prior to the effective date of 6 29 this Act, which are used in connection with animal feeding 6 30 operations containing less than six hundred twenty-five 6 31 thousand pounds live animal weight capacity of animal species 6 32 other than beef cattle or containing less than one million six 6 33 hundred thousand pounds live animal weight capacity of beef 6 34 cattle, shall be located at least one thousand two hundred 6 35 fifty feet from a residence not owned by the owner of the 7 1 feeding operation or from a public use area other than a 7 2 public road. Anaerobic lagoons or earthen waste slurry 7 3 storage basins, which are used in connection with animal 7 4 feeding operations containing six hundred twenty-five thousand 7 5 pounds or more live animal weight capacity of animal species 7 6 other than beef cattle or containing one million six hundred 7 7 thousand pounds or more live animal weight capacity of beef 7 8 cattle, shall be located at least one thousand eight hundred 7 9 seventy-five feet from a residence not owned by the owner of 7 10 the feeding operation or from a public use area other than a 7 11 public road. For the purpose of this paragraph the 7 12 determination of live animal weight capacity shall be based on 7 13 the average animal weight capacity during a production cycle 7 14 and the maximum animal capacity of the animal feeding 7 15 operation.These separation distances apply to the7 16construction of new facilities and the expansion of existing7 17facilities.7 18 SITING REQUIREMENTS &endash; NEW PART 7 19 Sec. 9. NEW SECTION. 455B.161 DEFINITIONS. 7 20 As used in this part, unless the context otherwise 7 21 requires: 7 22 1. "Anaerobic lagoon" means an impoundment used in 7 23 conjunction with an animal feeding operation, if the primary 7 24 function of the impoundment is to store and partially 7 25 stabilize organic wastes, the impoundment is designed to 7 26 receive wastes on a regular basis, and the impoundment's 7 27 design waste loading rates provide that the predominant 7 28 biological activity is anaerobic. An anaerobic lagoon does 7 29 not include any of the following: 7 30 a. A confinement feeding operation structure. 7 31 b. A runoff control basin which collects and stores only 7 32 precipitation induced runoff from an animal feeding operation 7 33 in which animals are confined to areas which are unroofed or 7 34 partially roofed and in which no crop, vegetation, or forage 7 35 growth or residue cover is maintained during the period in 8 1 which animals are confined in the operation. 8 2 c. An anaerobic treatment system which includes collection 8 3 and treatment facilities for all off gases. 8 4 2. "Animal" means an animal belonging to the bovine, 8 5 porcine, ovine, caprine, equine, or avian species. 8 6 3. "Animal feeding operation" means a lot, yard, corral, 8 7 building, or other area in which animals are confined and fed 8 8 and maintained for forty-five days or more in any twelve-month 8 9 period, and all structures used for the storage of manure from 8 10 animals in the animal feeding operation. Two or more animal 8 11 feeding operations under common ownership or management are 8 12 deemed to be a single animal feeding operation if they are 8 13 adjacent or utilize a common system for manure storage. 8 14 4. "Animal feeding operation structure" means an anaerobic 8 15 lagoon or confinement feeding operation structure. 8 16 5. "Animal weight capacity" means the product of 8 17 multiplying the maximum number of animals which the owner or 8 18 operator confines in an animal feeding operation at any one 8 19 time by the average weight during a production cycle. 8 20 6. "Confinement building" means a building used in 8 21 conjunction with a confinement feeding operation to house 8 22 animals. 8 23 7. "Confinement feeding operation" means an animal feeding 8 24 operation in which animals are confined to areas which are 8 25 totally roofed. 8 26 8. "Confinement feeding operation structure" means a 8 27 formed manure storage structure, egg washwater storage 8 28 structure, earthen manure storage basin, or confinement 8 29 building. A confinement feeding operation structure does not 8 30 include an anaerobic lagoon. 8 31 9. "Earthen manure storage basin" means an earthen cavity, 8 32 either covered or uncovered, which, on a regular basis, 8 33 receives waste discharges from a confinement feeding operation 8 34 if accumulated wastes from the basin are completely removed at 8 35 least twice each year. 9 1 10. "Egg washwater storage structure" means an aerobic or 9 2 anaerobic structure used to store the wastewater resulting 9 3 from the washing and in-shell packaging of eggs. 9 4 11. "Formed manure storage structure" means a structure, 9 5 either covered or uncovered, used to store manure, which has 9 6 walls and a floor constructed of concrete, concrete block, 9 7 wood, steel, or similar materials. 9 8 12. "Manure" means animal excreta or other commonly 9 9 associated wastes of animals, including, but not limited to, 9 10 bedding, litter, or feed losses. 9 11 13. "Public use area" means that portion of public land 9 12 where persons customarily congregate, as provided by rules 9 13 which shall be adopted by the department. 9 14 Sec. 10. NEW SECTION. 455B.162 ANIMAL FEEDING OPERATIONS 9 15 &endash; NEW CONSTRUCTION AND EXPANSION. 9 16 The following shall apply to animal feeding operation 9 17 structures constructed on or after the effective date of this 9 18 Act or to the expansion of structures constructed on or after 9 19 the effective date of this Act: 9 20 1. The following table represents the minimum separation 9 21 distance in feet required between animal feeding operation 9 22 structures and residences not owned by owners of the animal 9 23 feeding operation: 9 24 Minimum Minimum 9 25 separation separation 9 26 distance distance 9 27 in feet in feet 9 28 for opera- for opera- 9 29 tions hav- tions hav- 9 30 ing an ing an 9 31 animal animal 9 32 weight ca- weight ca- 9 33 pacity of pacity of 9 34 less than 625,000 9 35 625,000 or more 10 1 Type of structure pounds pounds 10 2 Anaerobic lagoon 1,250 1,875 10 3 Earthen manure 10 4 storage basin 1,250 1,875 10 5 Uncovered formed 10 6 manure storage 10 7 structure 1,000 1,500 10 8 Covered formed 10 9 manure storage 10 10 structure 750 1,000 10 11 Confinement 10 12 building 750 1,000 10 13 Egg washwater 10 14 storage structure 750 1,000 10 15 2. The following table represents the minimum separation 10 16 distance in feet required between animal feeding operation 10 17 structures and a public use area or the corporate limits of a 10 18 city: 10 19 Minimum Minimum 10 20 separation separation 10 21 distance distance 10 22 in feet in feet 10 23 for opera- for opera- 10 24 tions hav- tions hav- 10 25 ing an ing an 10 26 animal animal 10 27 weight ca- weight ca- 10 28 pacity of pacity of 10 29 less than 625,000 10 30 625,000 or more 10 31 Type of structure pounds pounds 10 32 Animal feeding 10 33 operation structure 1,250 1,875 10 34 Sec. 11. NEW SECTION. 455B.163 DISTANCE SEPARATION 10 35 REQUIREMENTS FOR ANIMAL FEEDING OPERATIONS &endash; EXPANSION OF 11 1 STRUCTURES CONSTRUCTED PRIOR TO THE EFFECTIVE DATE OF THIS 11 2 ACT. 11 3 An animal feeding operation, utilizing an animal feeding 11 4 operation structure which is constructed before the effective 11 5 date of this Act, may be expanded on or after the effective 11 6 date of this Act, notwithstanding section 455B.162, if all of 11 7 the following apply: 11 8 1. The portion of the animal feeding operation structure 11 9 which is closest to a location or object subject to the 11 10 distance requirement shall not be expanded closer than 11 11 permitted under the distance separation requirements of 11 12 section 455B.162. 11 13 2. The animal weight capacity of the animal feeding 11 14 operation as expanded is not more than the lesser of the 11 15 following: 11 16 a. Double its capacity on the effective date of this Act. 11 17 b. Six hundred twenty-five thousand pounds animal weight 11 18 capacity for animals other than beef cattle. 11 19 Sec. 12. NEW SECTION. 455B.164 DISTANCE MEASUREMENTS. 11 20 All distances between locations or objects provided in this 11 21 part shall be measured from their closest points as provided 11 22 by rules adopted by the department. 11 23 Sec. 13. NEW SECTION. 455B.165 DISTANCE SEPARATION 11 24 REQUIREMENTS &endash; EXEMPTION. 11 25 A separation distance requirement provided in this part 11 26 shall not apply to an animal feeding operation structure which 11 27 is constructed or expanded, if the titleholder of the land 11 28 benefiting from the distance separation requirement executes a 11 29 written waiver with the titleholder of the land where the 11 30 structure is located, under such terms and conditions that the 11 31 parties negotiate. The written waiver becomes effective only 11 32 upon the recording of the waiver in the office of the recorder 11 33 of deeds of the county in which the benefited land is located. 11 34 The filed waiver shall preclude enforcement by the state of 11 35 this part as it relates to the confinement feeding operation 12 1 structure. 12 2 Sec. 14. Section 455B.171, Code 1995, is amended by adding 12 3 the following new subsections: 12 4 NEW SUBSECTION. 1A. "Animal feeding operation" means a 12 5 lot, yard, corral, building, or other area in which animals 12 6 are confined and fed and maintained for forty-five days or 12 7 more in any twelve-month period, and all structures used for 12 8 storage of manure from animals in the animal feeding 12 9 operation. Two or more animal feeding operations under common 12 10 ownership or management are deemed to be a single animal 12 11 feeding operation if they are adjacent or utilize a common 12 12 area or system for manure disposal. 12 13 NEW SUBSECTION. 1B. "Confinement feeding operation" means 12 14 the same as defined in section 455B.161. 12 15 NEW SUBSECTION. 7A. "Manure" means the same as defined in 12 16 section 455B.161. 12 17 NEW SUBSECTION. 7B. "Manure sludge" means the solid or 12 18 semisolid residue produced during the treatment of manure in 12 19 an anaerobic lagoon. 12 20 Sec. 15. Section 455B.173, subsection 3, unnumbered 12 21 paragraph 1, Code 1995, is amended to read as follows: 12 22 Establish, modify, or repeal rules relating to the 12 23 location, construction, operation, and maintenance of disposal 12 24 systems and public water supply systems and specifying the 12 25 conditions, including the viability of a system pursuant to 12 26 section 455B.174, under which the director shall issue, 12 27 revoke, suspend, modify, or deny permits for the operation, 12 28 installation, construction, addition to, or modification of 12 29 any disposal system or public water supply system, or for the 12 30 discharge of any pollutantor for the disposal of water wastes12 31resulting from poultry and livestock operations. The rules 12 32 specifying the conditions under which the director shall issue 12 33 permits for the construction of an electric power generating 12 34 facility subject to chapter 476A shall provide for issuing a 12 35 conditional permit upon the submission of engineering 13 1 descriptions, flow diagrams and schematics that qualitatively 13 2 and quantitatively identify effluent streams and alternative 13 3 disposal systems that will provide compliance with effluent 13 4 standards or limitations. 13 5 Sec. 16. Section 455B.173, Code 1995, is amended by adding 13 6 the following new subsection: 13 7 NEW SUBSECTION. 12. a. Adopt, modify, or repeal rules 13 8 relating to the construction or operation of animal feeding 13 9 operations. The rules shall include, but are not limited to, 13 10 minimum manure control requirements, requirements for 13 11 obtaining permits, and departmental evaluations of animal 13 12 feeding operations. 13 13 b. A person shall be required to obtain a construction 13 14 permit for an animal feeding operation structure which is an 13 15 anaerobic lagoon, earthen manure storage basin, or egg 13 16 washwater lagoon. If an operation has an animal weight 13 17 capacity of six hundred twenty-five thousand or more pounds, a 13 18 person shall be required to obtain a construction permit for 13 19 an animal feeding operation structure which is a formed manure 13 20 storage structure. 13 21 c. The department shall collect fees for the issuance of 13 22 permits. The fee for a construction permit shall be fifty 13 23 dollars. The fees paid for the issuance of construction 13 24 permits shall be deposited in the manure storage indemnity 13 25 fund created in section 204.2. The department shall issue a 13 26 permit for the construction of an animal feeding operation, if 13 27 an application is submitted according to procedures required 13 28 by the department, and the application meets standards 13 29 established by the department. 13 30 d. A permit shall not be issued to any person for the 13 31 construction of a confinement feeding operation, unless the 13 32 person develops a manure management plan as provided in 13 33 section 455B.204. The department shall not issue a permit to 13 34 a person under this subsection if the department has begun an 13 35 enforcement action which is not resolved, relating to an 14 1 alleged violation of this chapter concerning a confinement 14 2 feeding operation in which the person has an interest. 14 3 Sec. 17. Section 455B.191, Code 1995, is amended by adding 14 4 the following new subsection: 14 5 NEW SUBSECTION. 7. Moneys assessed and collected in civil 14 6 penalties imposed pursuant to this section on a person 14 7 required to obtain a permit for the construction of a 14 8 confinement feeding operation shall be deposited in the manure 14 9 storage indemnity fund as created in section 204.2. 14 10 CONFINEMENT FEEDING OPERATIONS 14 11 Sec. 18. NEW SECTION. 455B.202 MANURE MANAGEMENT PLAN 14 12 CERTIFICATION &endash; TRAINING PROGRAM. 14 13 1. The department shall establish and administer a program 14 14 to certify that persons have been trained to carry out the 14 15 terms and conditions of a manure management plan as provided 14 16 in section 455B.204. 14 17 2. The person must complete not more than four hours of 14 18 training in the administration of the terms and conditions of 14 19 the manure management plans. 14 20 3. A certification shall expire five years following the 14 21 date that the person was last certified. In order to be 14 22 recertified, the person must complete not more than four 14 23 additional hours of training as provided in this section. 14 24 4. The Iowa cooperative extension service at Iowa state 14 25 university shall develop and administer the training program 14 26 after consultation with the department, agricultural 14 27 organizations, and the state office of the natural resources 14 28 conservation service of the United States department of 14 29 agriculture. The training shall be conducted by the Iowa 14 30 cooperative extension service. 14 31 Sec. 19. NEW SECTION. 455B.203 MANURE MANAGEMENT 14 32 PRACTICES. 14 33 1. The department shall adopt rules for manure management 14 34 practices by persons required to obtain a permit for the 14 35 construction of a confinement feeding operation which shall 15 1 include the following: 15 2 a. Requirements for the submission and approval of a 15 3 manure management plan as provided in section 455B.204. 15 4 b. Manure application methods, including all of the 15 5 following requirements: 15 6 (1) Manure shall not be applied within two hundred feet of 15 7 water of the state, an agricultural drainage well, a sinkhole, 15 8 or a surface intake for an agricultural drainage system, 15 9 unless the application is by injection or incorporation. 15 10 (2) Manure shall not be applied by means of spray 15 11 irrigation within seven hundred fifty feet from an occupied 15 12 residence not owned or leased by the owner of the animal 15 13 feeding operation, unless otherwise agreed to by the parties. 15 14 The agreement shall be in writing and filed with the county 15 15 recorder in the county where the land is located. Manure 15 16 shall not be applied by use of spray irrigation equipment from 15 17 May 15 to September 15, unless the material being applied is 15 18 effluent from the second stage of a two-stage anaerobic lagoon 15 19 or from an open feedlot runoff catch basin, or the department 15 20 approves a different schedule based on a manure management 15 21 plan that identifies specific practices designed to 15 22 significantly reduce the odor potential from an irrigation 15 23 system. 15 24 (3) The application of manure on land with greater than a 15 25 ten percent slope shall be limited to areas where erosion is 15 26 adequately controlled. The department may require that the 15 27 application be by injection or incorporation into the soil. 15 28 Manure shall not be applied to frozen or snow-covered ground 15 29 where slopes are greater than five percent except for land 15 30 with adequate erosion control practices such as terraces, 15 31 conservation tillage, cover crops, or contoured land. Manure 15 32 which is spread on land that floods more than once in ten 15 33 years shall be injected or incorporated within twenty-four 15 34 hours of application. Manure shall not be applied to land 15 35 that floods more than once in ten years during periods when 16 1 the land is frozen or snow-covered. 16 2 c. Manure application practices, including manure 16 3 application rates on land based on the production of 16 4 designated crops and according to crop schedules. The 16 5 application rates shall be based on nitrogen use levels of 16 6 designated crops, if the land where the manure is applied does 16 7 not exceed soil loss limits. The department shall establish 16 8 manure application rates based on phosphorus use levels of 16 9 designated crops, and phosporus levels in the soil if the land 16 10 where the manure is applied exceeds soil loss limits. 16 11 d. The testing and management of manure sludge contained 16 12 in an anaerobic lagoon. The application of manure sludge to 16 13 land based on the phosphorus content of the sludge, the 16 14 phosphorus needs of the crops, and the phosphorus levels in 16 15 the soil. 16 16 2. The department shall adopt rules based on 16 17 recommendations submitted by Iowa state university and the 16 18 division of soil conservation of the department of agriculture 16 19 and land stewardship. 16 20 Sec. 20. NEW SECTION. 455B.204 MANURE MANAGEMENT PLAN 16 21 REQUIREMENTS. 16 22 1. a. A person shall not receive a permit for the 16 23 construction of a confinement feeding operation as provided in 16 24 section 455B.173, unless the person submits and complies with 16 25 a manure management plan in accordance with rules which shall 16 26 be adopted by the department pursuant to chapter 17A. The 16 27 plan shall provide for the application of manure in a manner 16 28 that is consistent with manure management practices provided 16 29 in section 455B.203. The applicant may develop the plan in 16 30 cooperation with the extension service of agriculture and home 16 31 economics at Iowa state university, the natural resources 16 32 conservation service of the United States department of 16 33 agriculture, a registered engineer, or a private consultant. 16 34 The department shall adopt all rules required to implement 16 35 this section not later than six months following the effective 17 1 date of this Act. 17 2 b. A person issued a permit for the construction of a 17 3 confinement feeding operation before January 1, 1994, shall 17 4 submit a manure management plan to the department not later 17 5 than one year after the effective date of this Act. A person 17 6 issued a permit for the construction of a confinement feeding 17 7 operation between January 1, 1994, and the effective date of 17 8 this Act shall submit a manure management plan to the 17 9 department not later than nine months after the effective date 17 10 of this Act according to a schedule adopted by the department. 17 11 If a person required to submit a delayed plan pursuant to this 17 12 paragraph violates section 455B.203, the person shall be 17 13 required to submit the plan to the department not later than 17 14 one hundred twenty days following notice by the department. 17 15 2. Compliance with the plan shall be a continuing 17 16 condition of the operation. 17 17 3. The manure plan manager shall administer the 17 18 implementation of and compliance with the plan, including 17 19 manure sludge management. The manure plan manager shall be 17 20 certified within six months after the department issues a 17 21 permit for the confinement feeding operation. However, a 17 22 person is not required to obtain a certification until nine 17 23 months after the effective date of this Act according to a 17 24 schedule adopted by the department. 17 25 4. A manure management plan shall include, but is not 17 26 limited to, the following: 17 27 a. A legal description of the land on which the manure 17 28 will be applied. 17 29 b. The names of the owner and operator of the land on 17 30 which the manure will be applied. 17 31 c. Permission of the owner of property through whose 17 32 property the manure will be transported. 17 33 d. Calculations to determine the land area required for 17 34 application of manure from the confinement feeding operation 17 35 for the crop schedule specified in the plan. 18 1 e. The rate of manure application which shall be 18 2 consistent with the requirements of section 455B.203. 18 3 f. A crop schedule for land subject to application. 18 4 g. Manure sludge practices as required pursuant to 18 5 subsection 5. 18 6 5. A person operating a confinement feeding operation 18 7 which utilizes an anaerobic lagoon shall include a provision 18 8 for manure sludge management. The department shall adopt 18 9 rules for manure sludge management. The rules shall include a 18 10 requirement that following approval of the plan by the 18 11 department, the depth of sludge be measured each five years, 18 12 the manure sludge tested for phosphorus content, and the 18 13 results of the test submitted to the department. The 18 14 department shall determine whether the person shall be 18 15 required to remove the manure sludge. If applied to land, the 18 16 department shall determine application practices pursuant to 18 17 section 455B.203, subsection 1, paragraphs "c" and "d", based 18 18 on the information submitted by the person and standards 18 19 recommended by Iowa state university. 18 20 6. A person receiving a permit for the construction of a 18 21 confinement feeding operation shall maintain a current manure 18 22 management plan and maintain records sufficient to demonstrate 18 23 compliance with the manure management plan. The person shall 18 24 report any significant changes in the plan within fourteen 18 25 days to the department. To the extent allowed by the 18 26 department, the person may submit the changes to the extension 18 27 service of agriculture and home economics at Iowa state 18 28 university, a private consultant, or the natural resources 18 29 conservation service of the United States department of 18 30 agriculture. The department shall provide to every extent 18 31 possible, that the extension service, private consultant, or 18 32 natural resources conservation service submit the changes with 18 33 recommendations to the department. 18 34 7. The department may inspect the confinement feeding 18 35 operation at any time during normal working hours, and may 19 1 inspect records required to be maintained as part of the 19 2 manure management plan. The environmental protection 19 3 commission shall adopt rules providing for limited 19 4 circumstances which require that the records be filed with the 19 5 department. 19 6 Sec. 21. NEW SECTION. 455B.205 DISTANCE REQUIREMENTS. 19 7 1. An animal feeding operation structure shall be located 19 8 at least two hundred feet away from the surface intake of an 19 9 agricultural drainage well, or a lake, river, or stream 19 10 located within the territorial limits of the state, any 19 11 marginal river area adjacent to the state, which can support a 19 12 floating vessel capable of carrying one or more persons during 19 13 a total of a six-month period in one out of ten years, 19 14 excluding periods of flooding. 19 15 2. All distances between locations or objects shall be 19 16 measured from their closest points, as provided by rule 19 17 adopted by the department. 19 18 Sec. 22. CONSULTATION WITH INTERESTED ORGANIZATIONS. The 19 19 department of natural resources shall request that the Iowa 19 20 pork producers association, the Iowa cattlemen's association, 19 21 the Iowa poultry association, the Iowa dairy association, Iowa 19 22 state university, and the natural resources conservation 19 23 service of the United States department of agriculture each 19 24 appoint one member to consult with the department regarding 19 25 this Act, rules adopted pursuant to this Act, and the Act's 19 26 implementation. If the natural resources conservation service 19 27 refuses to consult with the department, the department shall 19 28 consult with a person designated by the soil conservation 19 29 division of the department of agriculture and land 19 30 stewardship. The department shall consult with 19 31 representatives in meetings which shall be conducted by the 19 32 department at least once each three months. The department 19 33 shall request that the representatives provide the department 19 34 with recommendations regarding the adoption of rules required 19 35 to administer this Act. This section is repealed on March 31, 20 1 1997. 20 2 DIVISION II 20 3 Sec. 23. NEW SECTION. 425B.1 PRODUCTION TAX CREDIT FUND. 20 4 The production tax credit fund is created in the office of 20 5 the treasurer of state. There shall be appropriated annually 20 6 from the general fund of the state to the fund ten million 20 7 dollars. Any balance in the fund on June 30 shall revert to 20 8 the general fund of the state. 20 9 Sec. 24. NEW SECTION. 425B.2 DEFINITIONS. 20 10 As used in this chapter: 20 11 1. "Production facility" means only the physical structure 20 12 and equipment within the structure that is used to house 20 13 livestock or poultry. "Production facility" does not include 20 14 granaries, silos, grain augers, if outside the physical 20 15 structure, machine sheds, and similar items. If part of the 20 16 production facility is also used for other purposes, such as 20 17 storage of farm implements, the amount of property taxes 20 18 eligible for the credit must be prorated. 20 19 2. "Value added" means: 20 20 a. In the case of purchased livestock or poultry sold to a 20 21 processor or to a person who will add further value, the 20 22 difference between the amount received upon sale and the 20 23 purchase price. 20 24 b. In the case of livestock or poultry raised from birth 20 25 or hatching, as the case may be, the amount received upon the 20 26 sale to a processor or to a person who will add further value 20 27 less any breeding fees paid. 20 28 c. In the case of the sale of milk or eggs, the amount 20 29 received upon sale. 20 30 Sec. 25. NEW SECTION. 425B.3 CLAIM FOR CREDIT. 20 31 1. To apply for the credit, a person or business 20 32 enterprise shall each year prior to October 1 deliver to the 20 33 county assessor a verified statement of the value added to 20 34 livestock or poultry during the previous calendar year and 20 35 designation of the production facilities for which the credit 21 1 is claimed. The assessor shall return the statement and 21 2 designation on or before November 1 of each year to the county 21 3 board of supervisors with a recommendation for allowance or 21 4 disallowance. 21 5 2. The county board of supervisors in each county shall 21 6 examine all claims delivered by the county assessor, and shall 21 7 either allow or disallow the claims, and if disallowed shall 21 8 send notice of disallowance by regular mail to the claimant at 21 9 the claimant's last known address. The claimant may appeal 21 10 the decision of the board to the district court in the county 21 11 in which the production facility for which the credit is 21 12 claimed is situated, by giving written notice of the appeal to 21 13 the county board of supervisors within twenty days from the 21 14 date of the mailing of the notice of the decision of the board 21 15 of supervisors. 21 16 Sec. 26. NEW SECTION. 425B.4 AMOUNT OF CREDIT. 21 17 The amount of the production tax credit is equal to one 21 18 percent of the value added in the previous calendar year not 21 19 to exceed two thousand five hundred dollars per producer. The 21 20 county auditor and the assessor shall determine that the 21 21 credit does not exceed the amount of property taxes levied on 21 22 the production facilities. If part of the production facility 21 23 is also used for other purposes, such as storage of farm 21 24 implements, the amount of property taxes eligible for the 21 25 credit must be prorated. The auditor shall on or before 21 26 January 1, certify the total amount of credits to the 21 27 department of revenue and finance. 21 28 Sec. 27. NEW SECTION. 425B.5 WARRANTS DRAWN BY DIRECTOR 21 29 &endash; PRORATION. 21 30 After receiving from the county auditors the certifications 21 31 provided for in section 425B.4, and during the following 21 32 fiscal year, the director of revenue and finance shall draw 21 33 warrants on the production facility tax credit fund created in 21 34 section 425B.1, payable to the county treasurers in the amount 21 35 certified by the county auditors of the respective counties 22 1 and mail the warrants to the county auditors on March 1 of 22 2 each year taking into consideration the relative budget and 22 3 cash position of the state resources. However, if the 22 4 production facility tax credit fund is insufficient to pay in 22 5 full the total of the amounts certified to the director of 22 6 revenue and finance, the director shall prorate the fund to 22 7 the county treasurers and shall notify the county auditors of 22 8 the pro rata percentage on or before March 1. 22 9 Sec. 28. NEW SECTION. 425B.6 APPORTIONMENT BY AUDITOR. 22 10 Upon receiving the pro rata percentage from the director of 22 11 revenue and finance, the county auditor shall determine the 22 12 amount to be credited to each production facility, and shall 22 13 enter upon tax lists as a credit against the tax levied on 22 14 each production facility on which there has been made an 22 15 allowance of credit before delivering the tax lists to the 22 16 county treasurer. Upon receipt of the director's warrant by 22 17 the county auditor, the auditor shall deliver the warrant to 22 18 the county treasurer for apportionment. The county treasurer 22 19 shall show on each tax receipt the amount of tax credit for 22 20 each production facility. In case of change of ownership the 22 21 credit shall follow the title. 22 22 Sec. 29. NEW SECTION. 425B.7 LIMIT OF CREDIT. 22 23 A person or business enterprise in the state shall not be 22 24 allowed a production tax credit in excess of two thousand five 22 25 hundred dollars. If the person or business enterprise owns 22 26 production facilities located in more than one county, the 22 27 person or business enterprise may claim the entire credit in 22 28 one county or a proportionate part of the maximum credit in 22 29 each county where the production facilities are located. 22 30 However, the person or business enterprise shall not claim 22 31 more than two thousand five hundred dollars in production 22 32 credit in all counties. 22 33 Sec. 30. NEW SECTION. 425B.8 JOINTLY OWNED PROPERTY &endash; 22 34 DIVISION OF CREDIT. 22 35 If production facilities are owned separately by a husband 23 1 and wife, they may divide the credit among themselves or one 23 2 spouse may take the entire credit, but in no case may a 23 3 husband and wife together receive a total credit of more than 23 4 two thousand five hundred dollars unless husband and wife own 23 5 farm units separately. If production facilities are owned by 23 6 separate business enterprises and the business enterprises are 23 7 controlled or owned by the same person, the separate business 23 8 enterprises may divide the credit amount themselves or one 23 9 business enterprise may take the entire credit, but in no case 23 10 may separate business enterprises which are controlled or 23 11 owned by the same person receive a total credit of more than 23 12 two thousand five hundred dollars. 23 13 Business enterprises are controlled or owned by the same 23 14 person if over fifty percent of the assets or shares of stock 23 15 in each business enterprise is controlled or owned by the same 23 16 person or if the business enterprises are in fact controlled 23 17 and managed by the same person regardless of how actual title 23 18 to the assets or shares of stock are held. 23 19 Sec. 31. NEW SECTION. 425B.9 FALSE CLAIM &endash; PENALTY. 23 20 A person making a false claim or affidavit with fraudulent 23 21 intent to obtain the credit under section 425B.3, is guilty of 23 22 a fraudulent practice and the claim shall be disallowed in 23 23 full. If the credit has been paid, the amount of the credit 23 24 plus a penalty equal to twenty-five percent of the amount of 23 25 credit plus interest, at the rate in effect under section 23 26 421.7, from the time of payment shall be collected by the 23 27 county treasurer in the same manner as other property taxes, 23 28 penalty, and interest are collected and when collected shall 23 29 be paid to the director of revenue and finance. 23 30 EXPLANATION 23 31 Division I of this bill provides for the regulation of 23 32 animal feeding operations. It amends section 172D.2 which 23 33 provides for a defense against nuisance actions relating to 23 34 feedlot operations. The bill provides specific instances 23 35 where nuisance protection is granted. 24 1 The bill establishes a manure storage indemnity fund. 24 2 Moneys in the fund are appropriated to and for the purposes of 24 3 indemnifying a county for expenses related to removing and 24 4 disposing of manure from a manure storage structure, and to 24 5 pay the administrative costs of the department. The 24 6 department of agriculture and land stewardship controls the 24 7 fund and administers the program. The fund is composed of a 24 8 confinement feeding operation construction fee paid before a 24 9 construction permit is issued by the department of natural 24 10 resources. If the moneys of the fund less the department's 24 11 estimate of the costs to the fund for pending or unsettled 24 12 claims exceeds $300,000, then the excess is deposited in the 24 13 organic nutrient management fund. The bill provides for the 24 14 collection of the fees. The bill provides that a county that 24 15 has acquired real estate containing a manure storage structure 24 16 following nonpayment of taxes may make a claim against the 24 17 fund to pay the costs of removing and disposing of the manure 24 18 located in a manure storage structure on the real estate. The 24 19 department must determine if a claim is eligible, and either 24 20 pay the fixed amount specified in the bid submitted by the 24 21 county upon completion of the work or obtain a lower fixed 24 22 amount bid for the work from another qualified person, other 24 23 than a governmental entity, and pay the fixed amount in this 24 24 bid upon completion of the work. The department is not 24 25 required to comply with certain established bidding 24 26 procedures. Upon a determination that the claim is eligible 24 27 for payment, the department must provide for payment of 100 24 28 percent of the claim. If at any time the department 24 29 determines that there are insufficient moneys to make payment 24 30 of all claims, the department may order that payment be 24 31 deferred on specified claims. 24 32 The bill rewrites and reorganizes existing provisions 24 33 relating to distance requirements that must exist between 24 34 anaerobic lagoons or earthen manure storage basins and 24 35 residences and public use areas. The bill provides a number 25 1 of new distance requirements which are applicable to animal 25 2 feeding operations, anaerobic lagoons, earthen manure storage 25 3 basins, formed manure storage structures, confinement 25 4 buildings, and egg washwater storage structures. The bill 25 5 limits the expansion of an animal feeding operation, if the 25 6 operation was constructed or expanded prior to the effective 25 7 date of the bill. 25 8 The bill provides that the department may adopt rules 25 9 relating to the construction or operation of animal feeding 25 10 operations. The rules must include, but are not limited to, 25 11 minimum manure control requirements, requirements for 25 12 obtaining permits, and departmental evaluations of animal 25 13 feeding operations. The bill requires that a person cannot 25 14 obtain a permit for the construction of a confinement feeding 25 15 operation, unless the person develops a manure management 25 16 plan. 25 17 The bill provides that the department is required to 25 18 establish and administer a program to certify that persons are 25 19 manure plan managers qualified to apply manure as required 25 20 under the plan. In order to become certified, the person must 25 21 receive not more than four hours of training. A certification 25 22 expires five years following the date that the person was last 25 23 certified. In order to be recertified, the person must 25 24 complete four additional hours of training. The bill requires 25 25 Iowa state university to develop and administer the training 25 26 program. 25 27 The bill requires the department to adopt rules relating to 25 28 manure application practices by persons required to obtain a 25 29 permit for the construction of confinement feeding operations. 25 30 The department must adopt rules based on recommendations 25 31 submitted by Iowa state university and the department of 25 32 agriculture and land stewardship. 25 33 The bill provides for manure management plans. A person 25 34 cannot receive a permit for the construction of a confinement 25 35 feeding operation unless the person develops and complies with 26 1 a manure management plan as provided by rules which shall be 26 2 adopted by the department. The plan shall provide for the 26 3 application of manure in a manner that is consistent with 26 4 manure management practices required in the bill. The bill 26 5 provides for delayed implementation of the requirement. 26 6 The bill provides that a person operating a confinement 26 7 feeding operation which utilizes an anaerobic lagoon must 26 8 provide for manure sludge management as part of the plan. The 26 9 bill provides that a person required to maintain the plan must 26 10 keep records sufficient to demonstrate compliance with the 26 11 manure management plan. The person must submit changes in the 26 12 plan to the department of natural resources. 26 13 Division II of this bill provides for a property tax credit 26 14 for production facilities for the production of meat, milk, 26 15 and eggs of 1 percent of the value added up to a maximum 26 16 credit of $2,500 per producer. 26 17 This bill provides for an appropriation from the state 26 18 general fund of $10 million per fiscal year. Any fund balance 26 19 on June 30 reverts to the state general fund. If the amount 26 20 appropriated is insufficient to pay the total credits claimed, 26 21 the director of revenue and finance shall prorate the fund to 26 22 the county treasurers. 26 23 LSB 1586SV 76 26 24 da/sc/14
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