House File 2417 - Introduced HOUSE FILE 2417 BY CROKEN A BILL FOR An Act relating to animal feeding operations by providing 1 for certain air and water quality regulations, including 2 when two or more related confinement feeding operations 3 are deemed to be a single operation, making penalties 4 applicable, and including effective date and applicability 5 provisions. 6 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 7 TLSB 5221YH (1) 91 da/js

H.F. 2417 Section 1. Section 459.102, Code 2026, is amended by adding 1 the following new subsections: 2 NEW SUBSECTION . 9A. a. “Business entity” means a person 3 recognized as a partnership, limited partnership, or limited 4 liability limited partnership described in chapter 486A or 5 488; a limited liability company as described in chapter 6 489; a corporation as described in chapter 490, 491, or 504; 7 an association as described in chapter 497, 498, or 499; a 8 cooperative described in chapter 501; a cooperative association 9 described in chapter 501A; an unincorporated nonprofit 10 association as described in chapter 504; or any other entity 11 commonly referred to as an investment company, joint stock 12 company, joint stock association, or trust, including but not 13 limited to a business trust. 14 b. “Business entity” includes a person described in 15 paragraph “a” regardless of whether the person is formed in this 16 state under any of those provisions referred to in paragraph “a” 17 or is otherwise authorized to do or transact business in this 18 state under any of those provisions referred to in paragraph 19 “a” . 20 NEW SUBSECTION . 42A. “Operation of law” means a transfer 21 by inheritance, devise or bequest, court order, dissolution 22 decree, order in bankruptcy, insolvency, replevin, foreclosure, 23 execution sale, the execution of a judgment, the foreclosure 24 of a real estate mortgage, the forfeiture of a real estate 25 contract, or a transfer resulting from a decree for specific 26 performance. 27 Sec. 2. Section 459.201, subsection 1, Code 2026, is amended 28 by striking the subsection and inserting in lieu thereof the 29 following: 30 1. Two or more animal feeding operations under common 31 ownership or management are deemed to be a single animal 32 feeding operation if they are adjacent or utilize a common 33 system for manure storage. In addition, two or more related 34 confinement feeding operations are deemed to be a single 35 -1- LSB 5221YH (1) 91 da/js 1/ 10

H.F. 2417 confinement feeding operation as provided in section 459.201A. 1 Sec. 3. Section 459.201, subsection 3, Code 2026, is amended 2 to read as follows: 3 3. a. In calculating the animal unit capacity of a 4 confinement feeding operation, the animal unit capacity shall 5 include the animal unit capacity of all confinement feeding 6 operation buildings which that are part of the confinement 7 feeding operation, unless a confinement feeding operation 8 building has been abandoned. 9 b. Unless expressly stated otherwise in this subchapter, 10 the animal units of all confinement feeding operations that are 11 related and deemed to be a single confinement feeding operation 12 shall be combined when calculating the animal unit capacity of 13 any one of the confinement feeding operations. 14 Sec. 4. NEW SECTION . 459.201A Special terms —— related 15 confinement feeding operations. 16 Two or more confinement feeding operations are related and 17 deemed to be a single confinement feeding operation if all of 18 the following apply: 19 1. A confinement feeding operation structure that is part 20 of one confinement feeding operation is separated by less than 21 two thousand five hundred feet from a confinement feeding 22 operation structure that is part of the other confinement 23 feeding operation. 24 2. Any of the following apply: 25 a. The confinement feeding operations utilize a common 26 system for manure storage or common area or system for manure 27 disposal. 28 b. The confinement feeding operations both utilize any of 29 the following: 30 (1) A privately owned road capable of use by a motor vehicle 31 having a gross weight of six tons or more. 32 (2) A private water well regardless of whether the water 33 well is used to access water for human consumption. 34 (3) A utility connection that directly connects the 35 -2- LSB 5221YH (1) 91 da/js 2/ 10

H.F. 2417 confinement feeding operations. 1 (4) Any other personal property owned or used by the 2 confinement feeding operations as provided by rule adopted by 3 the department. 4 c. The same person holds an interest in the real property 5 where the confinement feeding operations are sited. The person 6 may hold a legal interest or equitable interest in the real 7 property. 8 (1) In determining whether the same person holds an 9 interest in the real property where the two confinement feeding 10 operations are sited, an interest in the real property may be 11 held by the person in any of the following forms: 12 (a) Legal title, including as a joint tenant or tenant in 13 common, or the holder of an interest for life or term of years. 14 (b) Leasehold, including as a lessor or lessee. 15 (c) Real estate contract, including in cases in which the 16 person is a vendor or vendee. 17 (d) Equitable title, including as a settlor, trustee, or 18 beneficiary. 19 (e) Easement, including as the owner of the dominant estate 20 or servient estate. 21 (2) If the person is a business entity, the business 22 entity’s interest in the real property is attributable to any 23 of the following: 24 (a) A partner, limited partner, member, shareholder, 25 settlor, trustee, beneficiary, or other equity holder of the 26 business entity. 27 (b) Any officer, manager, or employee of the business 28 entity. 29 (3) A person’s real property interest is attributable to 30 the person’s spouse, parent, grandparent, lineal ascendant of 31 a grandparent or spouse and any other lineal descendant of 32 the grandparent or spouse, sibling, or a person acting in a 33 fiduciary capacity for a related person. 34 (4) A subsidiary or affiliate of a business entity shall be 35 -3- LSB 5221YH (1) 91 da/js 3/ 10

H.F. 2417 deemed to be the same business entity. 1 (5) A person’s interest in a fixture that is attached to the 2 real property where a confinement feeding operation is sited, 3 including a confinement feeding operation structure, shall be 4 deemed to be an interest in the confinement feeding operation. 5 (6) A person’s property interest does not include the 6 acquisition of property by any of the following: 7 (a) Operation of law. 8 (b) A bona fide encumbrance taken for purposes of security, 9 including but not limited to a mortgage or deed of trust. 10 (c) Under a contract in which the other party is a 11 government entity. 12 Sec. 5. Section 459.203, unnumbered paragraph 1, Code 2026, 13 is amended to read as follows: 14 A confinement feeding operation constructed or expanded 15 prior to the date that a distance requirement became effective 16 under section 459.202 and which that does not comply with 17 the section’s distance requirement may continue to operate 18 regardless of the distance requirement. The In addition and 19 except as provided in section 459.203A, such confinement 20 feeding operation may be expanded by the construction or 21 expansion of a confinement feeding operation structure, if any 22 of the following applies: 23 Sec. 6. NEW SECTION . 459.203A Related confinement 24 feeding operations deemed to be same operation —— expansion of 25 confinement feeding operations. 26 1. If two or more confinement feeding operations are 27 related and deemed to be a single confinement feeding operation 28 pursuant to sections 459.201 and 459.201A, neither confinement 29 feeding operation shall be expanded by the construction or 30 expansion of a confinement feeding operation structure on or 31 after the effective date of this Act, unless the confinement 32 feeding operation structure complies with the distance 33 requirements applying to that structure as provided in section 34 459.202, subsections 4 and 5. 35 -4- LSB 5221YH (1) 91 da/js 4/ 10

H.F. 2417 2. Notwithstanding subsection 1, a confinement feeding 1 operation structure may be expanded by replacing one or more 2 unformed manure storage structures with one or more formed 3 manure storage structures, if all of the following apply: 4 a. The animal weight capacity or animal unit capacity, 5 whichever is applicable, is not increased for that portion of 6 the confinement feeding operation that utilizes all replacement 7 formed manure storage structures. 8 b. The use of each replaced unformed manure storage 9 structure is discontinued within one year after the 10 construction of the replacement formed manure storage 11 structure. 12 c. The capacity of all replacement formed manure storage 13 structures does not exceed the capacity required to store 14 manure produced by that portion of the confinement feeding 15 operation that had utilized all replaced unformed manure 16 storage structures. 17 d. The replacement formed manure storage structure is not 18 closer to an object or location benefiting from a separation 19 distance than the separation distance between the replaced 20 unformed manure storage structure and the same object or 21 location as required in section 459.202. 22 Sec. 7. NEW SECTION . 459.203B Business entity —— report. 23 A business entity that holds an interest in real property 24 where a confinement feeding operation is located shall submit a 25 report to the department under this subchapter not later than 26 December 31 of each year. The business entity shall state 27 whether the confinement feeding operation is related to another 28 confinement feeding operation as provided in section 459.203A. 29 The business entity shall submit a list of names of any persons 30 who have an attributable interest in the real property where 31 the confinement feeding operation is located regardless of 32 whether the business entity states the confinement feeding 33 operation is related to another confinement feeding operation. 34 Sec. 8. Section 459.205, subsection 1, Code 2026, is amended 35 -5- LSB 5221YH (1) 91 da/js 5/ 10

H.F. 2417 to read as follows: 1 1. a. A confinement feeding operation structure, if the 2 structure is part of a confinement feeding operation which that 3 qualifies as a small animal feeding operation. However, this 4 subsection shall not apply if the confinement feeding operation 5 structure is an unformed manure storage structure. 6 b. Paragraph “a” does not apply to any of the following: 7 (1) A confinement feeding operation that includes an 8 unformed manure storage structure. 9 (2) Two or more animal feeding operations that are deemed to 10 be a single animal feeding operation under section 459.201, if 11 the combined animal unit capacity of the confinement feeding 12 operations is more than five hundred animal units. 13 c. Two or more related confinement feeding operations that 14 are deemed to be a single confinement feeding operation under 15 sections 459.201 and 459.201A, if the combined animal unit 16 capacity of the related confinement feeding operations is more 17 than five hundred animal units. 18 Sec. 9. Section 459.301, subsection 1, Code 2026, is amended 19 by striking the subsection and inserting in lieu thereof the 20 following: 21 1. Two or more animal feeding operations under common 22 ownership or management are deemed to be a single animal 23 feeding operation if any of the following apply: 24 a. The animal feeding operations are adjacent or utilize a 25 common area or system for manure application. 26 b. The confinement feeding operations are deemed to be a 27 single confinement feeding operation in the same manner as two 28 confinement feeding operations are determined to be related 29 under section 459.201A. 30 Sec. 10. Section 459.301, subsection 3, Code 2026, is 31 amended by adding the following new paragraph: 32 NEW PARAGRAPH . c. Unless expressly stated otherwise 33 in this subchapter, the animal units of all confinement 34 feeding operations that are related and deemed to be the 35 -6- LSB 5221YH (1) 91 da/js 6/ 10

H.F. 2417 same confinement feeding operation shall be combined when 1 calculating the animal unit capacity of any one of the 2 confinement feeding operations. 3 Sec. 11. NEW SECTION . 459.301A Business entity —— report. 4 A business entity that holds an interest in real property 5 where a confinement feeding operation is located shall submit a 6 report to the department under this subchapter not later than 7 December 31 of each year. The business entity shall state 8 whether the confinement feeding operation is related to another 9 confinement feeding operation as provided in section 459.301. 10 The business entity shall submit a list of names of any persons 11 who have an attributable interest in the real property where 12 the confinement feeding operation is located regardless of 13 whether the business entity states the confinement feeding 14 operation is related to another confinement feeding operation. 15 The department shall adopt rules providing for the combination 16 of reports required in section 459.203B and this section. 17 Sec. 12. Section 459.312, subsection 2, Code 2026, is 18 amended to read as follows: 19 2. a. Not more than one confinement feeding operation shall 20 be covered by a single manure management plan. 21 b. If two or more confinement feeding operations are 22 deemed to be a single confinement feeding operation under 23 section 459.301, the department may require a separate manure 24 management plan to cover each confinement feeding operation. 25 Sec. 13. Section 459.317, subsection 1, paragraph b, Code 26 2026, is amended by striking the paragraph. 27 Sec. 14. EFFECTIVE DATE. This Act, being deemed of 28 immediate importance, takes effect upon enactment. 29 Sec. 15. APPLICABILITY. This Act shall not apply to a 30 person who has begun construction of a confinement feeding 31 operation structure prior to the effective date of this Act. 32 EXPLANATION 33 The inclusion of this explanation does not constitute agreement with 34 the explanation’s substance by the members of the general assembly. 35 -7- LSB 5221YH (1) 91 da/js 7/ 10

H.F. 2417 BACKGROUND —— GENERAL. This bill amends the “Animal 1 Agriculture Compliance Act” (Code chapter 459), which provides 2 for the regulation of an animal feeding operation where 3 agricultural animals are maintained for at least 45 days in any 4 12-month period and includes an open feedlot and a confinement 5 feeding operation (operation) and any associated confinement 6 feeding operation structure (structure), such as a building 7 or manure storage structure. Compliance with a statutory 8 regulation under the Code chapter includes compliance with 9 a rule adopted by the department of natural resources (DNR) 10 (Code section 459.1030). Generally, regulations vary based on 11 the size of an operation measured by its animal unit capacity 12 (AUC). 13 BACKGROUND —— ADJACENCY. For purposes of air quality 14 regulation, two or more animal feeding operations under common 15 ownership or management are deemed to be a single animal 16 feeding operation if they are adjacent or utilize a common 17 system for manure storage and are separated within a minimum 18 distance from each other based on the size of the operation. 19 For purposes of water quality regulation, two or more animal 20 feeding operations under common ownership or management are 21 deemed to be a single operation if they are adjacent or utilize 22 a common area or system for manure disposal and are separated 23 by another set of separation distances based on the size of the 24 operation. 25 BACKGROUND —— AUC. AUC refers to a measurement used to 26 determine the maximum number of animal units that may be 27 maintained as part of an animal feeding operation at any one 28 time. In calculating AUC, a special equivalency factor is 29 assigned for each classification of confined animal. 30 BILL’S PROVISIONS —— RELATED CONFINEMENT FEEDING OPERATION. 31 The bill provides that for purposes of administering and 32 enforcing Code chapter 459, subchapter II, providing for 33 air quality regulations and Code chapter 459, subchapter 34 III, providing for water quality regulations, two or more 35 -8- LSB 5221YH (1) 91 da/js 8/ 10

H.F. 2417 operations are deemed to be a single operation if they are 1 related. The operations are related if a structure that is 2 part of one operation is separated by less than 2,500 feet from 3 a structure that is part of the other operation and certain 4 alternative conditions apply. The first condition occurs 5 if the confinement feeding operations utilize some common 6 method of manure storage or common area or system for manure 7 disposal. The second condition occurs when the confinement 8 feeding operations utilize a common item or service such as a 9 private road, private water well, utility connection, or other 10 personal property described by DNR rule. The third condition 11 occurs when the same person holds a legal or equitable interest 12 in the real property where the operations are located. If the 13 person is a business entity, the business entity’s interest 14 is attributable to any person who owns an interest in the 15 entity or who is a partner, limited partner, shareholder, 16 member, settlor, trustee, beneficiary, or other equity holder 17 of the business entity. The business entity’s interest is 18 also attributable to any officer, manager, or employee of the 19 business entity. A person’s interest is also attributable 20 to a relative (e.g., spouse, child, or sibling). A person’s 21 interest does not include the acquisition of property by a 22 number of devices including by operation of law, an encumbrance 23 taken as a security, or under contract with a government 24 entity. 25 The bill requires a business entity that holds an interest 26 in real property where a confinement feeding operation is 27 located to submit a report to DNR each year that includes a 28 list of names of any persons who have an attributable interest 29 in the real property where the confinement feeding operation 30 is located. 31 APPLICABLE CIVIL PENALTIES. Code section 459.602 provides 32 for civil penalties that may be assessed for violations of 33 Code chapter 459, subchapter II (air quality regulations). A 34 violator is subject to Code section 455B.109, which provides 35 -9- LSB 5221YH (1) 91 da/js 9/ 10

H.F. 2417 for the administrative assessment of civil penalties of up to 1 $10,000. Code section 459.603 provides for civil penalties 2 that may be assessed for violations of Code chapter 459, 3 subchapter III (water quality regulations). A violator is 4 subject to either Code section 455B.109 providing for the 5 administrative assessment of civil penalties or Code section 6 455B.191, which provides for a general civil penalty assessed 7 judicially of up to $5,000. 8 EFFECTIVE DATE. The bill takes effect upon enactment. 9 -10- LSB 5221YH (1) 91 da/js 10/ 10