H.F. 2134 Section 1. Section 459.303, subsection 3, paragraph b, Code 1 2018, is amended to read as follows: 2 b. A manure management plan as provided in section 459.312 3 and , a manure management plan filing fee as provided in section 4 459.400 , and evidence that a surety bond has been furnished to 5 the department as provided in section 459.312 . 6 Sec. 2. Section 459.303, subsection 7, Code 2018, is amended 7 by adding the following new paragraph: 8 NEW PARAGRAPH . c. The department shall not issue a 9 permit to a person under this section if a surety bond 10 furnished to the department under section 459.312 has 11 expired, been canceled, been suspended, or been revoked. 12 This paragraph applies to a permit for the construction of a 13 confinement feeding operation structure regardless of whether 14 the confinement feeding operation structure is part of a 15 confinement feeding operation described in the bond. 16 Sec. 3. Section 459.312, Code 2018, is amended by adding the 17 following new subsection: 18 NEW SUBSECTION . 6A. The department shall not approve an 19 original manure management plan or an updated manure management 20 plan, unless it is accompanied with evidence that a surety bond 21 has been furnished to the department by a surety. However, the 22 department may approve an original manure management plan on 23 the condition that the bond be furnished prior to the date that 24 manure is stored in the manure storage structure described in 25 the manure management plan. 26 a. The surety must be a business entity organized or formed 27 in this state or otherwise authorized to do business in this 28 state as a surety company and be approved by the department 29 according to criteria established by the department. The bond 30 shall be in the amount of ten million dollars. 31 b. The bond shall run to the state, and guarantee payment 32 to the state of costs directly attributable to a violation of 33 section 459.311 that causes a discharge of manure from a manure 34 storage structure as described in the manure management plan. 35 -1- LSB 5552YH (4) 87 da/rn 1/ 4

H.F. 2134 The costs shall be limited to any of the following: 1 (1) The reimbursement of moneys expended by the state, a 2 political subdivision, or an agent of the state or a political 3 subdivision, for reasonable costs of providing for containment 4 or cleanup. The reimbursement may cover costs associated with 5 cleaning up the confinement feeding operation and remediating 6 contamination which originates from the confinement feeding 7 operation, pursuant to sections 455B.381 through 455B.399. 8 (2) The restoration of wild animal populations or habitat, 9 to the extent that any payment received under the bond is not 10 duplicative of a restitution payment received by the state 11 under section 481A.151. 12 (3) Payment of a judgment award recovered by a person in a 13 civil action for actual property damages, including reasonable 14 attorney’s fees. The bond shall be open to successive judgment 15 awards caused by the same violation. 16 c. The total and aggregate liability of the surety for all 17 claims by the state arising from the violation shall be limited 18 to the face of the bond. 19 d. The bond shall not expire until sixty days after 20 expiration of the manure management plan. The surety shall 21 not cancel the bond without providing for at least forty-five 22 days’ notice by certified mail to the department and the 23 owner required to submit the manure management plan. When 24 the department receives a notice of cancellation, and a bond 25 is still required, the department shall automatically suspend 26 the manure management plan if the department does not receive 27 a replacement bond within thirty days of the delivery of the 28 notice of cancellation. If a replacement bond is not furnished 29 to the department within ten days following the suspension, the 30 department shall automatically revoke the manure management 31 plan. In addition, the department shall disapprove all pending 32 permit applications for the construction of a confinement 33 feeding operation structure filed with the department by the 34 owner as provided in section 459.303. 35 -2- LSB 5552YH (4) 87 da/rn 2/ 4

H.F. 2134 Sec. 4. Section 481A.151, subsection 1, Code 2018, is 1 amended to read as follows: 2 1. a. A person who is liable for polluting a water of this 3 state in violation of state law, including this chapter , shall 4 also be liable to pay restitution to the department for injury 5 caused to a wild animal by the pollution. The amount of the 6 restitution shall also include the department’s administrative 7 costs for investigating the incident. 8 b. The administration of this section shall not result in 9 a duplication of damages collected by the department under 10 section 455B.392, subsection 1 , paragraph “a” , subparagraph (3) 11 or section 459.312, subsection 6A . 12 Sec. 5. EFFECTIVE DATE. This Act, being deemed of immediate 13 importance, takes effect upon enactment. 14 EXPLANATION 15 The inclusion of this explanation does not constitute agreement with 16 the explanation’s substance by the members of the general assembly. 17 GENERAL. This bill amends Code chapter 459, referred to as 18 the “Animal Agriculture Compliance Act”, which is administered 19 and enforced by the department of natural resources (DNR). 20 The Code chapter in part regulates the housing of animals in 21 a building and the storage and application of animal manure 22 originating from a confinement feeding operation (operation), 23 including a manure storage structure (structure). The bill 24 addresses two documents filed by the owner of an operation 25 with DNR when it administers water quality regulations: (1) 26 an application for a construction permit (permit) issued by 27 DNR that authorizes the construction, including expansion, of 28 a structure (Code section 459.303) and a manure management 29 plan (MMP) governing the storage and application of manure 30 originating from the operation (Code section 459.312). 31 BILL’S PROVISIONS. The bill provides that DNR cannot 32 approve an MMP unless the owner furnishes a surety bond for 33 $10 million for the purpose of paying costs resulting from the 34 discharge of manure from the owner’s operation. Moneys payable 35 -3- LSB 5552YH (4) 87 da/rn 3/ 4

H.F. 2134 under the bond must be used in cases in which the discharge 1 has caused property damage. The moneys must be used to: (1) 2 reimburse the state or a political subdivision, or an agent 3 of the state or political subdivision, for costs associated 4 with containment or cleanup; (2) the restoration of wild animal 5 populations or habitat; and (3) the payment of a judgment 6 award recovered by a plaintiff in a civil action. The bill 7 provides for the expiration or cancellation of the bond. DNR 8 is authorized to suspend or revoke an MMP if a replacement bond 9 is not filed. The bill also provides that DNR is prohibited 10 from issuing a permit to the owner authorizing the construction 11 of any structure if a bond covering an operation has expired, 12 been canceled, been suspended, or been revoked. 13 BACKGROUND —— OPERATIONS AND MMPS. An operation is a 14 location in which certain confined agricultural animals are 15 housed in one or more buildings for at least 45 days during 16 any 12-month period (Code section 459.102). Generally, an 17 operation must retain manure that is produced at the location 18 until the manure is transported and used according to water 19 quality requirements (e.g., via application on farmland) (see 20 Code section 459.311). An MMP refers to both an original 21 document and a document which updates the original plan. 22 An updated plan must be filed with DNR on an annual basis 23 (Code section 459.312). A permit is required to construct a 24 structure including a confinement building or associated manure 25 storage structure (either formed or unformed) (Code section 26 459.102). As part of the application for a permit, the owner 27 must have filed an MMP. 28 EFFECTIVE DATE. The bill, if enacted, would take effect upon 29 enactment. 30 -4- LSB 5552YH (4) 87 da/rn 4/ 4