S.F. 418 Section 1. Section 459.301, subsection 3, Code 2013, is 1 amended to read as follows: 2 3. In calculating the animal unit capacity of a confinement 3 feeding operation, the animal unit capacity shall include the 4 animal unit capacity of all confinement feeding operation 5 buildings which are part of the confinement feeding operation, 6 unless a confinement feeding operation building has been 7 abandoned as provided in section 459.201 . In calculating 8 animal unit capacity for purposes of an election to be a small 9 animal feeding operation as provided in section 459.312A, the 10 animal unit capacity of a confinement feeding operation shall 11 include all confinement feeding operation buildings that are 12 used to house animals. 13 Sec. 2. NEW SECTION . 459.312A Election to be a small animal 14 feeding operation. 15 A person otherwise required to submit an updated manure 16 management plan as required in section 459.312 and pay an 17 annual compliance fee as required in section 459.400 may make 18 a small animal feeding operation election as provided in this 19 section. 20 1. Upon the effective date of the election, the confinement 21 feeding operation covered by the updated manure management 22 plan shall be considered a small animal feeding operation only 23 for purposes of submitting the updated manure management plan 24 and paying the annual compliance fee, during the period of the 25 election. 26 2. A person is eligible to make an election only if all of 27 the following apply: 28 a. Five hundred or fewer animal units are housed at the 29 confinement feeding operation at any one time during the period 30 of election. 31 b. The department is notified of the election in a manner 32 required by the department. The department may require that a 33 person submit a notice of election as part of an updated manure 34 management plan form or as a separate document. 35 -1- LSB 1480SV (2) 85 da/sc 1/ 4

S.F. 418 3. The department shall provide for the period of election, 1 including its effective and expiration dates. However, the 2 period of election shall be at least for the same period 3 covered by the updated manure management plan. An election 4 automatically terminates when more than five hundred animal 5 units are housed at the confinement feeding operation at any 6 one time. 7 4. This section does not affect any of the following: 8 a. A condition associated with a construction permit as 9 provided in this subchapter, including but not limited to a 10 master matrix as provided in section 459.305. 11 b. A requirement unrelated to filing an updated manure 12 management plan or paying an annual compliance fee, including 13 but not limited to the filing of a construction design 14 statement as provided in section 459.306, the application of 15 manure as provided in section 459.313A, or the certification of 16 a person as a confinement site manure applicator as provided 17 in section 459.315. 18 EXPLANATION 19 BACKGROUND. The department of natural resources 20 (department) is required to regulate confinement feeding 21 operations (operations) under Code chapter 459, the “Animal 22 Agriculture Compliance Act”. This bill amends provisions in 23 subchapter III which govern water quality, including how and 24 when manure from such operations is to be applied to land. 25 CURRENT ANIMAL UNIT CAPACITY FORMULA TO DETERMINE AN 26 OPERATION’S SIZE. To some extent, the degree of regulation 27 depends upon an operation’s size which is determined by 28 calculating its animal unit capacity; the maximum number 29 of animal units that may be maintained in all confinement 30 buildings (buildings) at any one time (Code section 459.102). 31 Each of various types of animals are assigned a special 32 equivalency factor. For example, a butcher or breeding swine 33 weighing more than 55 pounds has a factor of 0.4 animal units 34 (Code section 459.102). Generally, when calculating the animal 35 -2- LSB 1480SV (2) 85 da/sc 2/ 4

S.F. 418 unit capacity of an operation, buildings constructed as part 1 of the operation are included regardless of whether they are 2 occupied, except if a building has been abandoned, i.e., has 3 been razed or converted to another use (Code section 459.301). 4 SMALL ANIMAL FEEDING OPERATIONS. The current law provides 5 a special regulatory exemption for small animal feeding 6 operations, which have an animal unit capacity of 500 or 7 fewer animal units (Code section 459.102). For example, a 8 confinement feeding operation with three buildings keeping 9 a maximum of 400 butcher or breeding swine in each of two 10 buildings and no animals in the third empty building would not 11 qualify as a small animal feeding operation if the capacity 12 of the three buildings were 600, 500, and 300 animal units, 13 respectively (1,400 x 0.4 = 560). 14 NEW FORMULA —— RECLASSIFYING CONFINEMENT FEEDING OPERATIONS 15 BASED ON MAXIMUM NUMBER OF ANIMAL UNITS. The bill allows a 16 person to elect to be exempt from filing a manure management 17 plan update (update) with the department and paying an 18 associated annual compliance fee (fee) if the person can 19 reclassify the operation as a small animal feeding operation 20 using a new formula which is based on the maximum number 21 of animal units actually housed at the confinement feeding 22 operation at any one time during the election period. An 23 update is required to be filed by a person who owns a 24 confinement feeding operation or who applies manure from a 25 confinement feeding operation located outside the state (Code 26 section 459.312). Both the original plan and the update must 27 include the latest information regarding manure application. 28 Using the example above, the operation could elect to be exempt 29 as a small animal feeding operation (800 x 0.4 = 320). The 30 bill provides that the department must determine the period 31 of election so long as the minimum election period equals the 32 duration of the updated plan. However, the election period 33 automatically terminates if the operation no longer qualifies 34 as a small animal feeding operation as calculated using the new 35 -3- LSB 1480SV (2) 85 da/sc 3/ 4

S.F. 418 formula. 1 CIVIL PENALTIES. A person who violates Code chapter 459, 2 subchapter III is subject to a civil penalty. The department 3 is authorized to impose a range of civil penalties based 4 on a number of criteria. The general civil penalty cannot 5 exceed $10,000 (Code sections 459.603 and 455B.109). A 6 person violating a provision is also subject to judicial 7 action brought by the attorney general (Code sections 459.603 8 and 455B.191). The general civil penalty applicable for a 9 violation cannot exceed $5,000. 10 -4- LSB 1480SV (2) 85 da/sc 4/ 4