S.F. 2151 Section 1. Section 459.102, Code 2018, is amended by adding 1 the following new subsections: 2 NEW SUBSECTION . 8A. a. “Business entity” means a person 3 organized as any form of partnership, limited partnership, or 4 limited liability limited partnership described in chapter 5 488; limited liability company as described in chapter 489; 6 a corporation as described in chapter 490, 491, or 504; an 7 association as described in chapter 497, 498, and 499; a 8 cooperative described in chapter 501; a cooperative association 9 described in chapter 501A; an agricultural cooperative 10 association as defined in section 502.102; an unincorporated 11 nonprofit association as described in chapter 502; or any other 12 entity commonly referred to as an investment company, joint 13 stock company, joint stock association, or trust, including but 14 not limited to a business trust. 15 b. “Business entity” includes a person described in 16 paragraph “a” regardless of whether the person is organized 17 in this state under any of those provisions referred to in 18 paragraph “a” or is otherwise authorized to transact business 19 in this state under any of those provisions referred to in 20 paragraph “a” . 21 NEW SUBSECTION . 41A. “Operation of law” means a transfer 22 by inheritance, devise or bequest, court order, dissolution 23 decree, order in bankruptcy, insolvency, replevin, foreclosure, 24 execution sale, the execution of a judgment, the foreclosure 25 of a real estate mortgage, the forfeiture of a real estate 26 contract, or a transfer resulting from a decree for specific 27 performance. 28 Sec. 2. Section 459.201, subsection 1, Code 2018, is amended 29 by striking the subsection and inserting in lieu thereof the 30 following: 31 1. Two or more animal feeding operations under common 32 ownership or management are deemed to be a single animal 33 feeding operation if they are adjacent or utilize a common 34 system for manure storage. In addition, two or more related 35 -1- LSB 5399XS (7) 87 da/rj 1/ 8

S.F. 2151 confinement feeding operations are deemed to be a single 1 confinement feeding operation as provided in section 459.201A. 2 Sec. 3. Section 459.201, subsection 3, Code 2018, is amended 3 to read as follows: 4 3. a. In calculating the animal unit capacity of a 5 confinement feeding operation, the animal unit capacity shall 6 include the animal unit capacity of all confinement feeding 7 operation buildings which are part of the confinement feeding 8 operation, unless a confinement feeding operation building has 9 been abandoned. 10 b. Unless expressly stated otherwise in this subchapter, 11 the animal units of all confinement feeding operations that are 12 related and deemed to be a single confinement feeding operation 13 shall be combined when calculating the animal unit capacity of 14 any one of the confinement feeding operations. 15 Sec. 4. NEW SECTION . 459.201A Special terms —— related 16 confinement feeding operations. 17 1. Two or more confinement feeding operations are related 18 and deemed to be a single confinement feeding operation, if all 19 of the following apply: 20 a. A confinement feeding operation structure that is part 21 of one confinement feeding operation is separated by less than 22 two thousand five hundred feet from a confinement feeding 23 operation structure that is part of the other confinement 24 feeding operation. 25 b. Any of the following apply: 26 (1) The confinement feeding operations utilize a 27 common system for manure storage or common area for manure 28 application. 29 (2) The same person holds an interest in the real property 30 where the confinement feeding operations are sited. The person 31 may hold a legal interest or equitable interest in the real 32 property. 33 (a) In determining whether the same person holds an 34 interest in the real property where the two confinement feeding 35 -2- LSB 5399XS (7) 87 da/rj 2/ 8

S.F. 2151 operations are sited, an interest in the real property may be 1 held by the person in any of the following forms: 2 (i) Legal title, including as a joint tenant or tenant in 3 common, or the holder of an interest for life or term of years. 4 (ii) Leasehold, including as a lessor or lessee. 5 (iii) Real estate contract, including in cases in which the 6 person is a vendor or vendee. 7 (iv) Equitable title, including as a settlor, trustee, or 8 beneficiary. 9 (v) Easement, including as the owner of the dominant estate 10 or servient estate. 11 (b) If the person is a business entity, the business 12 entity’s interest in the real property is attributable to any 13 of the following: 14 (i) A partner, limited partner, shareholder, member, 15 settlor, trustee, beneficiary, or other equity holder of the 16 business entity. 17 (ii) Any officer, manager, or employee of the business 18 entity. 19 (c) A person’s real property interest is attributable to 20 the person’s spouse, parent, grandparent, lineal ascendant of 21 a grandparent or spouse and any other lineal descendant of 22 the grandparent or spouse, or a person acting in a fiduciary 23 capacity for a related person. 24 (d) A subsidiary or affiliate of a business entity shall be 25 deemed to be the same business entity. 26 (e) A person’s interest in a fixture that is attached to the 27 real property where a confinement feeding operation is sited, 28 including a confinement feeding operation structure, shall be 29 deemed to be an interest in the confinement feeding operation. 30 (f) A person’s property interest does not include the 31 acquisition of property by any of the following: 32 (i) Operation of law. 33 (ii) A bona fide encumbrance taken for purposes of security, 34 including but not limited to a mortgage or deed of trust. 35 -3- LSB 5399XS (7) 87 da/rj 3/ 8

S.F. 2151 (iii) Under a contract in which the other party is a 1 government entity. 2 Sec. 5. Section 459.203, unnumbered paragraph 1, Code 2018, 3 is amended to read as follows: 4 A confinement feeding operation constructed or expanded 5 prior to the date that a distance requirement became effective 6 under section 459.202 and which does not comply with the 7 section’s distance requirement may continue to operate 8 regardless of the distance requirement. The In addition and 9 except as provided in section 459.203A, such confinement 10 feeding operation may be expanded by the construction or 11 expansion of a confinement feeding operation structure, if any 12 of the following applies: 13 Sec. 6. NEW SECTION . 459.203A Related confinement 14 feeding operations deemed to be the same operation expansion of 15 confinement feeding operations. 16 1. If two or more confinement feeding operations are 17 related and deemed to be a single confinement feeding operation 18 pursuant to sections 459.201 and 459.201A, neither confinement 19 feeding operation shall be expanded by the construction or 20 expansion of a confinement feeding operation structure on or 21 after the effective date of this Act, unless the confinement 22 feeding operation structure complies with the distance 23 requirements applying to that structure as provided in section 24 459.202, subsections 4 and 5. 25 2. Notwithstanding subsection 1, a confinement feeding 26 operation structure may be expanded by replacing one or more 27 unformed manure storage structures with one or more formed 28 manure storage structures, if all of the following apply: 29 a. The animal weight capacity or animal unit capacity, 30 whichever is applicable, is not increased for that portion of 31 the confinement feeding operation that utilizes all replacement 32 formed manure storage structures. 33 b. The use of each replaced unformed manure storage 34 structure is discontinued within one year after the 35 -4- LSB 5399XS (7) 87 da/rj 4/ 8

S.F. 2151 construction of the replacement formed manure storage 1 structure. 2 c. The capacity of all replacement formed manure storage 3 structures does not exceed the capacity required to store 4 manure produced by that portion of the confinement feeding 5 operation that had utilized all replaced unformed manure 6 storage structures. 7 d. The replacement formed manure storage structure is not 8 closer to an object or location benefiting from a separation 9 distance than the separation distance between the replaced 10 unformed manure storage structure and the same object or 11 location as required in section 459.202. 12 Sec. 7. Section 459.205, subsection 1, Code 2018, is amended 13 to read as follows: 14 1. A confinement feeding operation structure, if the 15 structure is part of a confinement feeding operation which that 16 qualifies as a small animal feeding operation. However, this 17 subsection shall not apply if to any of the following: 18 a. confinement feeding operation structure is an An unformed 19 manure storage structure. 20 b. Two or more animal feeding operations that are deemed to 21 be a single animal feeding operation under section 459.201, if 22 the combined animal unit capacity of the confinement feeding 23 operations is more than five hundred animal units. 24 c. Two or more related confinement feeding operations that 25 are deemed to be a single confinement feeding operation under 26 sections 459.201 and 459.201A, if the combined animal unit 27 capacity of the related confinement feeding operations is more 28 than five hundred animal units. 29 Sec. 8. Section 459.301, subsection 1, Code 2018, is amended 30 by striking the subsection and inserting in lieu thereof the 31 following: 32 1. Two or more animal feeding operations under common 33 ownership or management are deemed to be a single animal 34 feeding operation if they are adjacent or utilize a common 35 -5- LSB 5399XS (7) 87 da/rj 5/ 8

S.F. 2151 area or system for manure application. In addition, two or 1 more related confinement feeding operations are deemed to be 2 a single confinement feeding operation in the same manner as 3 two confinement feeding operations are determined to be related 4 under section 459.201A. 5 Sec. 9. Section 459.301, subsection 3, Code 2018, is amended 6 by adding the following new paragraph: 7 NEW PARAGRAPH . c. Unless expressly stated otherwise 8 in this subchapter, the animal units of all confinement 9 feeding operations that are related and deemed to be the 10 same confinement feeding operation shall be combined when 11 calculating the animal unit capacity of any one of the 12 confinement feeding operations. 13 Sec. 10. Section 459.312, subsection 2, Code 2018, is 14 amended to read as follows: 15 2. a. Not more than one confinement feeding operation shall 16 be covered by a single manure management plan. 17 b. If two or more confinement feeding operations are deemed 18 to be a single confinement feeding operation under section 19 459.301, the department may require that a separate manure 20 management plan cover each confinement feeding operation. 21 Sec. 11. Section 459.317, subsection 1, paragraph b, Code 22 2018, is amended by striking the paragraph. 23 Sec. 12. EFFECTIVE DATE. This Act, being deemed of 24 immediate importance, takes effect upon enactment. 25 Sec. 13. APPLICABILITY. This Act shall not apply to a 26 person who has begun construction of a confinement feeding 27 operation structure prior to the effective date of this Act. 28 EXPLANATION 29 The inclusion of this explanation does not constitute agreement with 30 the explanation’s substance by the members of the general assembly. 31 BILL’S PROVISIONS —— GENERAL. This bill amends the “Animal 32 Agriculture Compliance Act” (Code chapter 459) which part 33 provides for the regulation of animal feeding operations where 34 agricultural animals are maintained for at least 45 days in 35 -6- LSB 5399XS (7) 87 da/rj 6/ 8

S.F. 2151 any 12-month period and includes open feedlots and confinement 1 feeding operations (operations) including associated 2 confinement feeding operation structures (structures), such 3 as buildings or manure storage structures. The Code chapter 4 is administered and enforced by the department of natural 5 resources (DNR). Generally, regulations vary based on the size 6 of an operation measured by its animal unit capacity (AUC). 7 BILL’S PROVISIONS —— RELATED CONFINEMENT FEEDING OPERATIONS. 8 The bill provides that for purposes of administering and 9 enforcing Code chapter 459, subchapter II, providing for air 10 quality regulations and Code chapter 459, subchapter III, 11 providing for water quality regulations, two or more operations 12 are deemed to be a single operation if they are related. The 13 operations are related if a structure that is part of one 14 operation is separated by less than 2,500 feet from a structure 15 that is part of the other operation and the same person holds 16 a legal or equitable interest in the real property where the 17 operations are located. If the person is a business entity, 18 the business entity’s interest is attributable to any person 19 who owns an interest in the entity or who is an employee, 20 manager, or officer of the entity. A person’s interest is also 21 attributable to a relative (e.g., spouse, child, or brother or 22 sister). A person’s interest does not include the acquisition 23 of property by a number of devices including by operation of 24 law, an encumbrance taken as a security, or under contract with 25 a government entity. 26 BACKGROUND —— CURRENT LAW —— ADJACENCY. For purposes of air 27 quality regulation, two or more animal feeding operations under 28 common ownership or management are deemed to be a single animal 29 feeding operation if they are adjacent or utilize a common 30 system for manure storage and are separated within a minimum 31 distance from each other based on the size of the operation. 32 For purposes of water quality regulation, two or more animal 33 feeding operations under common ownership or management are 34 deemed to be a single operation if they are adjacent or utilize 35 -7- LSB 5399XS (7) 87 da/rj 7/ 8

S.F. 2151 a common area or system for manure disposal and are separated 1 by another set of separation distances again based on the size 2 of the operation. 3 BACKGROUND —— AUC. AUC refers to a measurement used to 4 determine the maximum number of animal units that may be 5 maintained as part of an animal feeding operation at any one 6 time. In calculating AUC, a special equivalency factor is 7 assigned for each classification of confined animal. 8 BACKGROUND —— ENFORCEMENT AND APPLICABLE CIVIL PENALTIES. 9 Compliance with a statutory regulation under the Code chapter 10 includes compliance with a rule adopted by DNR (Code section 11 459.103). Code section 459.602 provides for civil penalties 12 that may be assessed for violations of Code chapter 459, 13 subchapter II (air quality regulations). A violator is subject 14 to Code section 455B.109, which provides for the administrative 15 assessment of civil penalties of up to $10,000. Code section 16 459.603 provides for civil penalties that may be assessed for 17 violations of Code chapter 459, subchapter III (water quality 18 regulations). A violator is subject to either Code section 19 455B.109 providing for the administrative assessment of civil 20 penalties or Code section 455B.191, which provides for a 21 general civil penalty assessed judicially of up to $5,000. 22 EFFECTIVE DATE. The bill, if enacted, takes effect upon 23 enactment. 24 -8- LSB 5399XS (7) 87 da/rj 8/ 8