House Study Bill 180 - Introduced HOUSE FILE _____ BY (PROPOSED COMMITTEE ON ENVIRONMENTAL PROTECTION BILL BY CHAIRPERSON OLSON) A BILL FOR An Act relating to the transfer of certain administrative 1 duties from the department of natural resources to the 2 department of agriculture and land stewardship, making 3 appropriations, and including effective date provisions. 4 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 5 TLSB 2678HC (10) 84 tm/nh

H.F. _____ DIVISION I 1 CLEAN WATER ACT 2 Section 1. Section 161A.4, subsection 2, Code 2011, is 3 amended by adding the following new paragraph: 4 NEW PARAGRAPH . j. To provide state administration of 5 section 319 of the federal Clean Water Act as defined in 6 section 455B.291. The department of natural resources shall 7 provide assistance in the preparation of the report required 8 pursuant to 33 U.S.C. § 1329. 9 Sec. 2. Section 161C.4, subsection 2, Code 2011, is amended 10 to read as follows: 11 2. The fund shall be divided into two three accounts, 12 the water quality protection projects account and , the water 13 protection practices account , and the clean water account . 14 a. The first water quality protection projects account 15 shall be used to carry out water quality protection projects 16 to protect the state’s surface and groundwater from point and 17 nonpoint sources of contamination. 18 b. The second water protection practices account shall be 19 used to establish water protection practices with individual 20 landowners including but not limited to woodland establishment 21 and protection, establishment of native grasses and forbs, 22 sinkhole management, agricultural drainage well management, 23 streambank stabilization, grass waterway establishment, stream 24 buffer strip establishment, and erosion control structure 25 construction. Twenty-five percent of funds appropriated to 26 the water protection practices account shall be used for 27 woodland establishment and protection, and establishment of 28 native grasses and forbs. Soil and water conservation district 29 commissioners shall give priority to applications for practices 30 that implement their soil and water resource conservation plan. 31 c. Any moneys appropriated by the general assembly for 32 purposes of providing state administration of section 319 of 33 the federal Clean Water Act as defined in section 455B.291 and 34 any other moneys available to and obtained or accepted by the 35 -1- LSB 2678HC (10) 84 tm/nh 1/ 25

H.F. _____ division for such purposes shall be credited to the clean water 1 account. Moneys in the clean water account are appropriated to 2 the division for purposes of administering section 319 of the 3 federal Clean Water Act as defined in section 455B.291. 4 Sec. 3. EFFECTIVE DATE. This division of this Act takes 5 effect November 1, 2011. 6 DIVISION II 7 WATER RESOURCES COORDINATING COUNCIL 8 Sec. 4. Section 466B.2, subsection 2, Code 2011, is amended 9 to read as follows: 10 2. “Department” means the department of natural resources 11 agriculture and land stewardship . 12 Sec. 5. Section 466B.3, subsection 1, Code 2011, is amended 13 to read as follows: 14 1. Council established. A water resources coordinating 15 council is established within the office of the governor 16 department of agriculture and land stewardship . 17 Sec. 6. Section 466B.3, subsection 4, paragraphs c and l, 18 Code 2011, are amended to read as follows: 19 c. The secretary of agriculture , who shall be the 20 chairperson, or the secretary’s designee. As the chairperson, 21 and in order to further the coordination efforts of the 22 council, the secretary may invite representatives from 23 any other public agency, private organization, business, 24 citizen group, or nonprofit entity to give public input at 25 council meetings, provided the entity has an interest in the 26 coordinated management of land resources, soil conservation, 27 flood mitigation, or water quality. The secretary shall also 28 invite and solicit advice from the following: 29 (1) The director of the Iowa water science center of the 30 United States geological survey or the director’s designee. 31 (2) The state conservationist from the Iowa office of the 32 United States department of agriculture’s natural resources 33 conservation service or the state conservationist’s designee. 34 (3) The executive director for Iowa from the United States 35 -2- LSB 2678HC (10) 84 tm/nh 2/ 25

H.F. _____ department of agriculture’s farm services agency or the 1 executive director’s designee. 2 (4) The state director for Iowa from the United States 3 department of agriculture’s office of rural development or the 4 state director’s designee. 5 (5) The director of region seven of the United States 6 environmental protection agency or the director’s designee. 7 (6) The corps commander from the United States army corps of 8 engineers’ Rock Island district or the commander’s designee. 9 l. The governor , who shall be the chairperson, or the 10 governor’s designee. As the chairperson, and in order to 11 further the coordination efforts of the council, the governor 12 may invite representatives from any other public agency, 13 private organization, business, citizen group, or nonprofit 14 entity to give public input at council meetings, provided 15 the entity has an interest in the coordinated management of 16 land resources, soil conservation, flood mitigation, or water 17 quality. The governor shall also invite and solicit advice 18 from the following: 19 (1) The director of the Iowa water science center of the 20 United States geological survey or the director’s designee. 21 (2) The state conservationist from the Iowa office of the 22 United States department of agriculture’s natural resources 23 conservation service or the state conservationist’s designee. 24 (3) The executive director for Iowa from the United States 25 department of agriculture’s farm services agency or the 26 executive director’s designee. 27 (4) The state director for Iowa from the United States 28 department of agriculture’s office of rural development or the 29 state director’s designee. 30 (5) The director of region seven of the United States 31 environmental protection agency or the director’s designee. 32 (6) The corps commander from the United States army corps of 33 engineers’ Rock Island district or the commander’s designee. 34 Sec. 7. Section 466B.3, subsection 5, paragraph a, Code 35 -3- LSB 2678HC (10) 84 tm/nh 3/ 25

H.F. _____ 2011, is amended to read as follows: 1 a. The council shall be convened by the office of the 2 governor department at least quarterly. 3 Sec. 8. Section 466B.9, Code 2011, is amended to read as 4 follows: 5 466B.9 Rulemaking authority. 6 The department of natural resources and the department 7 of agriculture and land stewardship shall have the power 8 and authority reasonably necessary to carry out the duties 9 imposed by this chapter . As to the department, this includes 10 rulemaking authority to carry out the regional watershed 11 assessment program described in section 466B.5 . As to the 12 department of agriculture and land stewardship, this includes 13 rulemaking authority to assist in the implementation of 14 community-based subwatershed improvement plans. The department 15 of agriculture and land stewardship shall adopt rules pursuant 16 to chapter 17A necessary for the implementation of this 17 chapter. 18 DIVISION III 19 TOTAL MAXIMUM DAILY LOADS 20 Sec. 9. Section 455B.193, Code 2011, is amended to read as 21 follows: 22 455B.193 Qualifications for collection of credible data. 23 For purposes of this part, all of the following shall apply: 24 1. Data is not credible data unless the data originates 25 from studies and samples collected by the department of 26 natural resources or the department of agriculture and land 27 stewardship , a professional designee of one of the department 28 departments , or a qualified volunteer. For purposes of this 29 subsection , “professional designee” includes governmental 30 agencies other than one of the department departments , and a 31 person hired by, or under contract for compensation with, one 32 of the department departments to collect or study data. 33 2. All information submitted by a qualified volunteer shall 34 be reviewed and approved or disapproved by the department of 35 -4- LSB 2678HC (10) 84 tm/nh 4/ 25

H.F. _____ natural resources or the department of agriculture and land 1 stewardship . The qualified volunteer shall submit a site 2 specific plan with data which includes information used to 3 obtain the data, the sampling and analysis plan, and quality 4 control and quality assurance procedures used in the monitoring 5 process. The qualified volunteer must provide proof to the 6 applicable department that the water monitoring plan was 7 followed. The applicable department shall review all data 8 collected by a qualified volunteer, verify the accuracy of the 9 data collected by a qualified volunteer, and determine that all 10 components of the water monitoring plan were followed. 11 3. The department of natural resources and the department of 12 agriculture and land stewardship shall retain all information 13 submitted by a qualified volunteer submitting the information 14 for a period of not less than ten years from the date of receipt 15 by the department. All information submitted shall be a public 16 record. 17 4. The department of natural resources and the department of 18 agriculture and land stewardship shall adopt rules establishing 19 requirements for a person to become a qualified volunteer. 20 The department of natural resources and the department of 21 agriculture and land stewardship shall develop a methodology 22 for water quality assessments as used in the section 303(d) 23 lists and assess the validity of the data. 24 Sec. 10. Section 455B.194, subsection 1, unnumbered 25 paragraph 1, Code 2011, is amended to read as follows: 26 The department of natural resources and the department of 27 agriculture and land stewardship, as applicable, shall use 28 credible data when doing any of the following: 29 Sec. 11. Section 455B.195, subsection 1, paragraphs e 30 through i, Code 2011, are amended to read as follows: 31 e. If a pollutant causing an impairment is unknown, the 32 water of the state may be placed on a section 303(d) list. 33 However, the department of natural resources or the department 34 of agriculture and land stewardship, as applicable, shall 35 -5- LSB 2678HC (10) 84 tm/nh 5/ 25

H.F. _____ continue to monitor the water of the state to determine the 1 cause of impairment before a total maximum daily load is 2 established for the water of the state and a water of the state 3 listed with an unknown status shall retain a low priority for 4 a total maximum daily load development until the cause of the 5 impairment is determined unless the either department, after 6 taking into consideration the use of the water of the state and 7 the severity of the pollutant, identifies compelling reasons as 8 to why the water of the state should not have a low priority. 9 f. When evaluating the waters of the state, the department 10 of natural resources or the department of agriculture and land 11 stewardship, as applicable, shall develop and maintain three 12 separate listings including a section 303(d) list, a section 13 305(b) report, and a listing for which further investigative 14 monitoring is necessary. The section 305(b) report shall be 15 a summary of all potential impairments for which credible 16 data is not required. If credible data is not required for a 17 section 305(b) report, the placement of a water of the state 18 on any section 305(b) report alone is not sufficient evidence 19 for the water of the state’s placement on any section 303(d) 20 list. When developing a section 303(d) list, the department 21 is departments are not required to use all data, but the 22 department shall assemble and evaluate all existing and readily 23 available water quality-related data and information. The 24 department departments shall provide documentation to the 25 regional administrator of the federal environmental protection 26 agency to support the state’s determination to list or not to 27 list its waters. 28 g. The department of natural resources or the department 29 of agriculture and land stewardship, as applicable, shall take 30 into consideration any naturally occurring condition when 31 placing or removing any water of the state on any section 32 303(d) list, and establishing or allocating responsibility for 33 a total maximum daily load. 34 h. Numerical standards shall have a preference over 35 -6- LSB 2678HC (10) 84 tm/nh 6/ 25

H.F. _____ narrative standards. A narrative standard shall not constitute 1 the basis for determining an impairment unless the department 2 of natural resources or the department of agriculture and land 3 stewardship, as applicable, identifies specific factors as to 4 why a numeric standard is not sufficient to assure adequate 5 water quality. 6 i. If the department of natural resources or the department 7 of agriculture and land stewardship, as applicable, has 8 obtained credible data for a water of the state, the department 9 may also use historical data for that particular water of the 10 state for the purpose of determining whether any trends exist 11 for that water of the state. 12 Sec. 12. Section 455B.195, subsection 2, Code 2011, is 13 amended to read as follows: 14 2. This section shall not be construed to require or 15 authorize the department of natural resources or the department 16 of agriculture and land stewardship to perform any act listed 17 in section 455B.194, subsection 1 , not otherwise required or 18 authorized by applicable law. 19 Sec. 13. Section 455B.195, Code 2011, is amended by adding 20 the following new subsections: 21 NEW SUBSECTION . 3. The division of soil conservation of the 22 department of agriculture and land stewardship shall implement 23 total maximum daily loads assigned to nonpoint sources and 24 agricultural sources through voluntary programs. The division 25 shall implement waste load allocations assigned to agricultural 26 sources or concentrated animal feeding operations if such 27 sources are required to obtain a national pollutant discharge 28 elimination system permit. The department of natural resources 29 shall implement all other waste load allocations. 30 NEW SUBSECTION . 4. The division of soil conservation 31 of the department of agriculture and land stewardship shall 32 develop and implement a water quality management plan required 33 by 33 U.S.C. § 1329 as it relates to total maximum daily 34 loads, nonpoint sources, agricultural sources, and effluent 35 -7- LSB 2678HC (10) 84 tm/nh 7/ 25

H.F. _____ limitations for concentrated animal feeding operations. 1 The department of agriculture and land stewardship and the 2 department of natural resources shall jointly submit water 3 quality management plans to the United States environmental 4 protection agency. 5 Sec. 14. ENVIRONMENT FIRST FUND APPROPRIATION —— FY 6 2012-2013. There is appropriated from the environment first 7 fund to the soil conservation division of the department of 8 agriculture and land stewardship for the fiscal year beginning 9 July 1, 2012, and ending June 30, 2013, the following amount, 10 or so much thereof as is necessary, to be used for the purposes 11 designated: 12 For water quality monitoring, including salaries, support, 13 maintenance, and miscellaneous purposes: 14 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 2,955,000 15 Sec. 15. EFFECTIVE DATE. This division of this Act takes 16 effect November 1, 2012. 17 DIVISION IV 18 MANURE APPLICATION MANAGEMENT 19 Sec. 16. Section 459.102, subsections 18 and 24, Code 2011, 20 are amended to read as follows: 21 18. “Covered” means organic or inorganic material placed 22 upon an animal feeding operation structure used to store manure 23 as provided by rules adopted by the department of agriculture 24 and land stewardship after receiving recommendations which 25 shall be submitted to the department of agriculture and land 26 stewardship by the college of agriculture and life sciences at 27 Iowa state university of science and technology. 28 24. “Document” means any form required to be processed 29 by the department of natural resources or the department of 30 agriculture and land stewardship under this chapter regulating 31 animal feeding operations, including but not limited to 32 applications or related materials for permits as provided in 33 section 459.303 , manure management plans as provided in section 34 459.312 , comment or evaluation by a county board of supervisors 35 -8- LSB 2678HC (10) 84 tm/nh 8/ 25

H.F. _____ considering an application for a construction permit, the 1 applicable department’s analysis of the application including 2 using and responding to a master matrix pursuant to section 3 459.304 , and notices required under those sections. 4 Sec. 17. Section 459.103, subsection 2, Code 2011, is 5 amended to read as follows: 6 2. Any provision referring generally to compliance with 7 the requirements of this chapter as applied to animal feeding 8 operations also includes compliance with requirements in rules 9 adopted by the commission or the department of agriculture 10 and land stewardship pursuant to this section , orders issued 11 by the department of natural resources or the department of 12 agriculture and land stewardship as authorized under this 13 chapter , and the terms and conditions applicable to licenses, 14 certifications, permits, or manure management plans required 15 under subchapter III . However, for purposes of approving 16 or disapproving an application for a construction permit as 17 provided in section 459.304 , conditions for the approval of an 18 application based on results produced by a master matrix are 19 not requirements of this chapter until the department approves 20 or disapproves an application based on those results. 21 Sec. 18. Section 459.103, Code 2011, is amended by adding 22 the following new subsection: 23 NEW SUBSECTION . 3. The department of agriculture and land 24 stewardship shall administer sections 459.310 through 459.319 25 and shall establish by rule adopted pursuant to chapter 17A, 26 requirements related to the administration of sections 459.310 27 through 459.319. 28 Sec. 19. Section 459.302, Code 2011, is amended to read as 29 follows: 30 459.302 Document processing requirements. 31 1. The department of natural resources and the department 32 of agriculture and land stewardship shall adopt and promulgate 33 forms required to be completed in order to comply with this 34 subchapter including forms for documents that the department 35 -9- LSB 2678HC (10) 84 tm/nh 9/ 25

H.F. _____ departments shall make available on the internet. 1 2. a. The department of natural resources and the 2 department of agriculture and land stewardship shall provide 3 for procedures for the receipt, filing, processing, and 4 return of documents in an electronic format, including but not 5 limited to the transmission of documents by the internet. The 6 department departments shall provide for authentication of the 7 documents that may include electronic signatures as provided in 8 chapter 554D . 9 b. The department of natural resources and the department of 10 agriculture and land stewardship shall to every extent feasible 11 provide for the processing of permits and manure management 12 plans required under this subchapter using electronic systems, 13 including programming, necessary to ensure the completeness and 14 accuracy of the documents in accordance with the requirements 15 of this subchapter . 16 Sec. 20. Section 459.303, subsection 7, paragraph a, Code 17 2011, is amended to read as follows: 18 a. The department of natural resources shall not issue a 19 permit to a person under this section if an enforcement action 20 by the department of agriculture and land stewardship , relating 21 to a violation of this chapter concerning a confinement feeding 22 operation in which the person has an interest, is pending, as 23 provided in section 459.317 . 24 Sec. 21. Section 459.305, subsection 1, unnumbered 25 paragraph 1, Code 2011, is amended to read as follows: 26 The department of natural resources, in cooperation with the 27 department of agriculture and land stewardship, shall adopt 28 rules for the development and use of a master matrix. The 29 purpose of the master matrix is to provide a comprehensive 30 assessment mechanism in order to produce a statistically 31 verifiable basis for determining whether to approve or 32 disapprove an application for the construction, including 33 expansion, of a confinement feeding operation structure 34 requiring a permit pursuant to section 459.303 . 35 -10- LSB 2678HC (10) 84 tm/nh 10/ 25

H.F. _____ Sec. 22. Section 459.310, subsection 2, Code 2011, is 1 amended to read as follows: 2 2. Except as provided in subsection 4 , a confinement feeding 3 operation structure shall not be constructed on land that is 4 part of a one hundred year floodplain as designated by rules 5 adopted by the department pursuant to section 459.301 . 6 Sec. 23. Section 459.312, subsection 7, Code 2011, is 7 amended to read as follows: 8 7. a. The department of natural resources shall not 9 approve an application for a permit to construct a confinement 10 feeding operation structure unless the owner of the confinement 11 feeding operation applying for approval submits an original 12 manure management plan together with the application for the 13 construction permit as provided in section 459.303 . 14 b. The department of natural resources shall not file a 15 construction design statement as provided in section 459.306 16 unless the owner of the confinement feeding operation structure 17 submits an original manure management plan together with 18 the construction design statement. The construction design 19 statement and manure management plan may be submitted as part 20 of an application for a construction permit as provided in 21 section 459.303 . 22 Sec. 24. Section 459.313B, subsection 1, Code 2011, is 23 amended to read as follows: 24 1. On or before February 15 of each year, the director of 25 the department secretary of agriculture , or the department’s 26 secretary’s designee, shall appear before and present a 27 report to the standing committees of the senate and house 28 of representatives having jurisdiction over agriculture 29 and environmental protection. The report shall include 30 all instances in which persons have applied liquid manure 31 originating from a manure storage structure, that is part of a 32 confinement feeding operation, on snow covered ground or frozen 33 ground because of an emergency as provided in section 459.313A . 34 The report shall include an assessment of the application’s 35 -11- LSB 2678HC (10) 84 tm/nh 11/ 25

H.F. _____ impact on water quality, including the success of actions taken 1 to prevent or remediate such impact. 2 Sec. 25. Section 459.317, subsections 3 and 4, Code 2011, 3 are amended to read as follows: 4 3. A person who receives a controlling interest in a suspect 5 site pursuant to a suspect transaction must submit a notice of 6 the transaction to the department of natural resources or the 7 department of agriculture and land stewardship, as applicable, 8 within thirty days. If, after notice and opportunity to be 9 heard, pursuant to the contested case provisions of chapter 10 17A , the department of natural resources or the department of 11 agriculture and land stewardship finds that one purpose of the 12 transaction was to avoid the conditions and enhanced penalties 13 imposed upon a habitual violator, the person shall be subject 14 to the same conditions and enhanced penalties as applied to the 15 habitual violator at the time of the transaction. 16 4. The department of natural resources and the department of 17 agriculture and land stewardship shall cooperatively conduct an 18 annual review of each confinement feeding operation which is 19 a habitual violator and each confinement feeding operation in 20 which a habitual violator holds a controlling interest. 21 Sec. 26. Section 459.318, subsection 2, Code 2011, is 22 amended to read as follows: 23 2. The requirements of this subchapter which regulate 24 animal feeding operations, including rules adopted by 25 the department of natural resources and the department of 26 agriculture and land stewardship pursuant to section 459.103 , 27 shall not apply to research activities and experiments 28 performed under the authority and regulations of a research 29 college, if the research activities and experiments relate to 30 animal feeding operations, including but not limited to the 31 confinement of animals and the storage and disposal of manure 32 originating from animal feeding operations. 33 Sec. 27. Section 459.400, Code 2011, is amended to read as 34 follows: 35 -12- LSB 2678HC (10) 84 tm/nh 12/ 25

H.F. _____ 459.400 Compliance fees. 1 1. The department of natural resources and the department 2 of agriculture and land stewardship, as applicable, shall 3 establish, assess, and collect all of the following compliance 4 fees: 5 a. A construction permit application fee that is required to 6 accompany an application submitted to the department of natural 7 resources for approval to construct a confinement feeding 8 operation structure as provided in section 459.303 . The amount 9 of the construction permit application fee shall not exceed two 10 hundred fifty dollars. 11 b. A manure management plan filing fee that is required 12 to accompany an original manure management plan submitted 13 to the department of agriculture and land stewardship for 14 approval as provided in section 459.312 . However, the manure 15 management plan required to be filed as part of an application 16 for a construction permit shall be paid together with the 17 construction permit application fee. The amount of the manure 18 management plan filing fee shall not exceed two hundred fifty 19 dollars. 20 c. An annual compliance fee that is required to accompany 21 an updated manure management plan submitted to the department 22 of agriculture and land stewardship for approval as provided 23 in section 459.312 . The amount of the annual compliance fee 24 shall not exceed a rate of fifteen cents per animal unit 25 based on the animal unit capacity of the confinement feeding 26 operation covered by the manure management plan. If the person 27 submitting the manure management plan is a contract producer, 28 as provided in chapter 202 , the active contractor shall be 29 assessed the annual compliance fee. 30 d. Educational program fees paid by persons required by the 31 department of agriculture and land stewardship to be certified 32 as commercial manure service representatives or confinement 33 site manure applicators pursuant to section 459.315 . The 34 amount of the educational program fees together with commercial 35 -13- LSB 2678HC (10) 84 tm/nh 13/ 25

H.F. _____ manure service licensing fees shall be adjusted annually by the 1 department of agriculture and land stewardship based on the 2 costs of administering section 459.315 and paying the expenses 3 of the department of agriculture and land stewardship relating 4 to certification. 5 (1) The fee for certification of a commercial manure service 6 representative shall not be more than seventy-five dollars. A 7 commercial manure service licensed pursuant to section 459.314A 8 may pay for the annual certification of its employees. If a 9 commercial manure service makes payment for an employee to be 10 certified as a commercial manure service representative and 11 that employee leaves employment, the commercial manure service 12 may substitute a new employee to be certified for the former 13 employee. The department of agriculture and land stewardship 14 shall not charge for the certification of the substituted 15 employee. The department of agriculture and land stewardship 16 may require that the commercial manure service provide the 17 department with documentation that the substitution is valid. 18 The department of agriculture and land stewardship shall not 19 charge the fee to a person who is a manager of a commercial 20 manure service licensed pursuant to section 459.314A . The 21 department of agriculture and land stewardship may require 22 that the commercial manure service provide documentation that 23 a person is a manager. 24 (2) A person who is certified as a confinement site manure 25 applicator as provided in section 459.315 is exempt from paying 26 the certification fee if all of the following apply: 27 (a) The person is certified within one year from the date 28 that a family member has been certified as a confinement site 29 manure applicator. 30 (b) The family member has paid the fee for that family 31 member’s own certification. 32 e. Fees paid by persons required by the department of 33 agriculture and land stewardship to be licensed as a commercial 34 manure service as provided in section 459.314A . The fee for a 35 -14- LSB 2678HC (10) 84 tm/nh 14/ 25

H.F. _____ commercial manure service license shall not be more than two 1 hundred dollars. The amount of the licensing fees together 2 with educational program fees shall be adjusted annually by the 3 department of agriculture and land stewardship based on the 4 costs of administering section 459.315 and paying the expenses 5 of the department of agriculture and land stewardship relating 6 to certification. 7 2. Compliance fees collected by the department of 8 natural resources and the department of agriculture and land 9 stewardship shall be deposited into the animal agriculture 10 compliance fund created in section 459.401 . 11 a. Except as provided in paragraph “b” , moneys collected 12 from all fees shall be deposited into the compliance fund’s 13 general account. 14 b. Moneys collected from the annual compliance fee shall 15 be deposited into the compliance fund’s assessment account. 16 Moneys collected from commercial manure service license fees 17 and educational program fees shall be deposited into the 18 compliance fund’s educational program account. 19 3. At the end of each fiscal year the department of 20 agriculture and land stewardship shall determine the balance of 21 unencumbered and unobligated moneys in the assessment account 22 and the educational program account of the animal agriculture 23 compliance fund created pursuant to section 459.401 . 24 a. If on June 30, the balance of unencumbered and 25 unobligated moneys in the assessment account is one million 26 dollars or more, the department of agriculture and land 27 stewardship shall adjust the rate of the annual compliance 28 fee for the following fiscal year. The adjusted rate for 29 the annual compliance fee shall be based on the department’s 30 estimate of the amount required to ensure that at the end 31 of the following fiscal year the balance of unencumbered and 32 unobligated moneys in the assessment account is not one million 33 dollars or more. 34 b. If on June 30, the balance of unencumbered and 35 -15- LSB 2678HC (10) 84 tm/nh 15/ 25

H.F. _____ unobligated moneys in the educational program account is 1 twenty-five thousand dollars or more, the department of 2 agriculture and land stewardship shall adjust the rate of the 3 commercial manure service license fee and the educational 4 program fee for the following fiscal year. The adjusted rate 5 for the fees shall be based on the department’s estimate of 6 the amount required to ensure that at the end of the following 7 fiscal year the balance of unencumbered and unobligated moneys 8 in the assessment account is not twenty-five thousand dollars 9 or more. 10 Sec. 28. Section 459.401, Code 2011, is amended to read as 11 follows: 12 459.401 Animal agriculture compliance fund. 13 1. An animal agriculture compliance fund is created in 14 the state treasury under the control of the department of 15 management . The compliance fund is separate from the general 16 fund of the state. 17 2. The compliance fund is composed of three accounts, the 18 general account, the assessment account, and the educational 19 program account. 20 a. The general account is composed of moneys appropriated 21 by the general assembly and moneys available to and obtained 22 or accepted by the department of management, the department 23 of natural resources, and the department of agriculture and 24 land stewardship from the United States government or private 25 sources for placement in the compliance fund. Unless otherwise 26 specifically provided in statute, moneys required to be 27 deposited in the compliance fund shall be deposited into the 28 general account. The general account shall include moneys 29 deposited into the account from all of the following: 30 (1) The construction permit application fee required 31 pursuant to section 459.303 . 32 (2) The manure management plan filing fee required pursuant 33 to section 459.312 . 34 (3) Educational program fees required to be paid by 35 -16- LSB 2678HC (10) 84 tm/nh 16/ 25

H.F. _____ commercial manure service representatives or confinement site 1 manure applicators pursuant to section 459.400 . 2 (4) A commercial manure service license fee as provided in 3 section 459.400 . 4 (5) The collection of civil penalties assessed by the 5 department of natural resources and the department of 6 agriculture and land stewardship and interest on civil 7 penalties, arising out of violations involving animal feeding 8 operations as provided in sections 459.602 , 459.603 , 459A.502 , 9 and 459B.402 . 10 b. The assessment account is composed of moneys collected 11 from the annual compliance fee required pursuant to section 12 459.400 . 13 c. The educational program account is composed of moneys 14 collected from the commercial manure service license fee and 15 the educational program fee required pursuant to section 16 459.400 . 17 3. Moneys in the compliance fund are appropriated to the 18 department of management exclusively to pay the expenses of 19 the department of natural resources and the department of 20 agriculture and land stewardship in administering and enforcing 21 the provisions of subchapters II and III as applicable and 22 necessary to ensure that animal feeding operations comply with 23 all applicable requirements of those provisions, including 24 rules adopted or orders issued by the department departments 25 pursuant to those provisions. The moneys shall not be 26 transferred, used, obligated, appropriated, or otherwise 27 encumbered except as provided in this subsection . The 28 department of management shall not transfer moneys from 29 the compliance fund’s assessment account to another fund or 30 account, including but not limited to the fund’s general 31 account. 32 4. Moneys in the fund, which may be subject to warrants 33 written by the director of the department of administrative 34 services, shall be drawn upon the written requisition of the 35 -17- LSB 2678HC (10) 84 tm/nh 17/ 25

H.F. _____ director of the department of natural resources management or 1 an authorized representative of the director. 2 5. Notwithstanding section 8.33 , any unexpended balance in 3 an account of the compliance fund at the end of the fiscal year 4 shall be retained in that account. Notwithstanding section 5 12C.7, subsection 2 , interest, earnings on investments, or time 6 deposits of the moneys in an account of the compliance fund 7 shall be credited to that account. 8 Sec. 29. Section 459.402, Code 2011, is amended to read as 9 follows: 10 459.402 Animal agriculture compliance fees —— delinquencies. 11 If a fee imposed under this chapter for deposit into 12 the animal agriculture compliance fund is delinquent, 13 the department of natural resources or the department of 14 agriculture and land stewardship may charge interest on any 15 amount of the fee that is delinquent. The rate of interest 16 shall not be more than the current rate published in the Iowa 17 administrative bulletin by the department of revenue pursuant 18 to section 421.7 . The interest amount shall be computed from 19 the date that the fee is delinquent, unless the applicable 20 department designates a later date. The interest amount shall 21 accrue for each month in which a delinquency is calculated as 22 provided in section 421.7 , and counting each fraction of a 23 month as an entire month. The interest amount shall become 24 part of the amount of the fee due. 25 Sec. 30. Section 459.604, subsection 1, paragraph e, 26 unnumbered paragraph 1, Code 2011, is amended to read as 27 follows: 28 Failing to submit a manure management plan as required 29 pursuant to section 459.312 , or operating a confinement feeding 30 operation without having a manure management plan approved by 31 the department of agriculture and land stewardship . 32 Sec. 31. AMENDMENT DIRECTIVE. Unless otherwise amended in 33 this division, sections 459.310, 459.311, 459.311C, 459.312, 34 459.313, 459.313A, 459.314, 459.314A, 459.314B, 459.315, 35 -18- LSB 2678HC (10) 84 tm/nh 18/ 25

H.F. _____ and 459.315A are amended by striking from the sections the 1 word “department” and inserting in lieu thereof the words 2 “department of agriculture and land stewardship”. 3 Sec. 32. EFFECTIVE DATES. 4 1. The portion of the amendment directive section of this 5 division of this Act amending section 459.315 takes effect July 6 1, 2011. 7 2. Except as provided in subsection 1, this division takes 8 effect July 1, 2012. 9 DIVISION V 10 NATIONAL POLLUTANT DISCHARGE ELIMINATION SYSTEM PERMITS 11 Sec. 33. NEW SECTION . 161C.8 National pollutant discharge 12 elimination system permits —— fund. 13 1. The department may issue a permit related to the 14 administration of the national pollutant discharge elimination 15 system (NPDES) permit program pursuant to the federal Water 16 Pollution Control Act, 33 U.S.C. ch. 26, as amended, and 17 40 C.F.R. pt. 124. Permits issued by the department shall 18 be limited to permits related to agricultural sources and 19 concentrated animal feeding operations. The department may 20 provide for the receipt of applications and the issuance of 21 permits as provided by rules adopted by the department which 22 are consistent with this section. The department shall assess 23 and collect fees for the processing of applications and the 24 issuance of permits. The department shall deposit the fees 25 into the agricultural-related national pollutant discharge 26 elimination system permit fund created in subsection 2. 27 2. An agricultural-related national pollutant discharge 28 elimination system permit fund is created as a separate fund in 29 the state treasury under the control of the department. The 30 fund is composed of moneys appropriated to the department for 31 deposit into the fund and moneys available to and obtained or 32 accepted by the department from the United States or private 33 sources for placement in the fund. The fund shall include 34 moneys deposited into the fund from fees charged for the 35 -19- LSB 2678HC (10) 84 tm/nh 19/ 25