HF 2417 (LSB 5221YH (1) 91)

HOUSE FILE 2417

BY  CROKEN

A BILL FOR

An Act relating to animal feeding operations by providing for certain air and water quality regulations, including when two or more related confinement feeding operations are deemed to be a single operation, making penalties applicable, and including effective date and applicability provisions.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:

    Section 1.  Section 459.102, Code 2026, is amended by adding the following new subsections:
   NEW SUBSECTION.  9A.  a.  “Business entity” means a person recognized as a partnership, limited partnership, or limited liability limited partnership described in chapter 486A or 488; a limited liability company as described in chapter 489; a corporation as described in chapter 490, 491, or 504; an association as described in chapter 497, 498, or 499; a cooperative described in chapter 501; a cooperative association described in chapter 501A; an unincorporated nonprofit association as described in chapter 504; or any other entity commonly referred to as an investment company, joint stock company, joint stock association, or trust, including but not limited to a business trust.
   b.  “Business entity” includes a person described in paragraph “a” regardless of whether the person is formed in this state under any of those provisions referred to in paragraph “a” or is otherwise authorized to do or transact business in this state under any of those provisions referred to in paragraph “a”.
   NEW SUBSECTION.  42A.  “Operation of law” means a transfer by inheritance, devise or bequest, court order, dissolution decree, order in bankruptcy, insolvency, replevin, foreclosure, execution sale, the execution of a judgment, the foreclosure of a real estate mortgage, the forfeiture of a real estate contract, or a transfer resulting from a decree for specific performance.
    Sec. 2.  Section 459.201, subsection 1, Code 2026, is amended by striking the subsection and inserting in lieu thereof the following:
   1.  Two or more animal feeding operations under common ownership or management are deemed to be a single animal feeding operation if they are adjacent or utilize a common system for manure storage. In addition, two or more related confinement feeding operations are deemed to be a single confinement feeding operation as provided in section 459.201A.
    Sec. 3.  Section 459.201, subsection 3, Code 2026, is amended to read as follows:
   3.  a.  In calculating the animal unit capacity of a confinement feeding operation, the animal unit capacity shall include the animal unit capacity of all confinement feeding operation buildings which that are part of the confinement feeding operation, unless a confinement feeding operation building has been abandoned.
   b.  Unless expressly stated otherwise in this subchapter, the animal units of all confinement feeding operations that are related and deemed to be a single confinement feeding operation shall be combined when calculating the animal unit capacity of any one of the confinement feeding operations.
    Sec. 4.  NEW SECTION.  459.201A  Special terms —— related confinement feeding operations.
   Two or more confinement feeding operations are related and deemed to be a single confinement feeding operation if all of the following apply:
   1.  A confinement feeding operation structure that is part of one confinement feeding operation is separated by less than two thousand five hundred feet from a confinement feeding operation structure that is part of the other confinement feeding operation.
   2.  Any of the following apply:
   a.  The confinement feeding operations utilize a common system for manure storage or common area or system for manure disposal.
   b.  The confinement feeding operations both utilize any of the following:
   (1)  A privately owned road capable of use by a motor vehicle having a gross weight of six tons or more.
   (2)  A private water well regardless of whether the water well is used to access water for human consumption.
   (3)  A utility connection that directly connects the confinement feeding operations.
   (4)  Any other personal property owned or used by the confinement feeding operations as provided by rule adopted by the department.
   c.  The same person holds an interest in the real property where the confinement feeding operations are sited. The person may hold a legal interest or equitable interest in the real property.
   (1)  In determining whether the same person holds an interest in the real property where the two confinement feeding operations are sited, an interest in the real property may be held by the person in any of the following forms:
   (a)  Legal title, including as a joint tenant or tenant in common, or the holder of an interest for life or term of years.
   (b)  Leasehold, including as a lessor or lessee.
   (c)  Real estate contract, including in cases in which the person is a vendor or vendee.
   (d)  Equitable title, including as a settlor, trustee, or beneficiary.
   (e)  Easement, including as the owner of the dominant estate or servient estate.
   (2)  If the person is a business entity, the business entity’s interest in the real property is attributable to any of the following:
   (a)  A partner, limited partner, member, shareholder, settlor, trustee, beneficiary, or other equity holder of the business entity.
   (b)  Any officer, manager, or employee of the business entity.
   (3)  A person’s real property interest is attributable to the person’s spouse, parent, grandparent, lineal ascendant of a grandparent or spouse and any other lineal descendant of the grandparent or spouse, sibling, or a person acting in a fiduciary capacity for a related person.
   (4)  A subsidiary or affiliate of a business entity shall be deemed to be the same business entity.
   (5)  A person’s interest in a fixture that is attached to the real property where a confinement feeding operation is sited, including a confinement feeding operation structure, shall be deemed to be an interest in the confinement feeding operation.
   (6)  A person’s property interest does not include the acquisition of property by any of the following:
   (a)  Operation of law.
   (b)  A bona fide encumbrance taken for purposes of security, including but not limited to a mortgage or deed of trust.
   (c)  Under a contract in which the other party is a government entity.
    Sec. 5.  Section 459.203, unnumbered paragraph 1, Code 2026, is amended to read as follows:
   A confinement feeding operation constructed or expanded prior to the date that a distance requirement became effective under section 459.202 and which that does not comply with the section’s distance requirement may continue to operate regardless of the distance requirement. The In addition and except as provided in section 459.203A, such confinement feeding operation may be expanded by the construction or expansion of a confinement feeding operation structure, if any of the following applies:
    Sec. 6.  NEW SECTION.  459.203A  Related confinement feeding operations deemed to be same operation —— expansion of confinement feeding operations.
   1.  If two or more confinement feeding operations are related and deemed to be a single confinement feeding operation pursuant to sections 459.201 and 459.201A, neither confinement feeding operation shall be expanded by the construction or expansion of a confinement feeding operation structure on or after the effective date of this Act, unless the confinement feeding operation structure complies with the distance requirements applying to that structure as provided in section 459.202, subsections 4 and 5.
   2.  Notwithstanding subsection 1, a confinement feeding operation structure may be expanded by replacing one or more unformed manure storage structures with one or more formed manure storage structures, if all of the following apply:
   a.  The animal weight capacity or animal unit capacity, whichever is applicable, is not increased for that portion of the confinement feeding operation that utilizes all replacement formed manure storage structures.
   b.  The use of each replaced unformed manure storage structure is discontinued within one year after the construction of the replacement formed manure storage structure.
   c.  The capacity of all replacement formed manure storage structures does not exceed the capacity required to store manure produced by that portion of the confinement feeding operation that had utilized all replaced unformed manure storage structures.
   d.  The replacement formed manure storage structure is not closer to an object or location benefiting from a separation distance than the separation distance between the replaced unformed manure storage structure and the same object or location as required in section 459.202.
    Sec. 7.  NEW SECTION.  459.203B  Business entity —— report.
   A business entity that holds an interest in real property where a confinement feeding operation is located shall submit a report to the department under this subchapter not later than December 31 of each year. The business entity shall state whether the confinement feeding operation is related to another confinement feeding operation as provided in section 459.203A. The business entity shall submit a list of names of any persons who have an attributable interest in the real property where the confinement feeding operation is located regardless of whether the business entity states the confinement feeding operation is related to another confinement feeding operation.
    Sec. 8.  Section 459.205, subsection 1, Code 2026, is amended to read as follows:
   1.  a.  A confinement feeding operation structure, if the structure is part of a confinement feeding operation which that qualifies as a small animal feeding operation. However, this subsection shall not apply if the confinement feeding operation structure is an unformed manure storage structure.
   b.  Paragraph “a” does not apply to any of the following:
   (1)  A confinement feeding operation that includes an unformed manure storage structure.
   (2)  Two or more animal feeding operations that are deemed to be a single animal feeding operation under section 459.201, if the combined animal unit capacity of the confinement feeding operations is more than five hundred animal units.
   c.  Two or more related confinement feeding operations that are deemed to be a single confinement feeding operation under sections 459.201 and 459.201A, if the combined animal unit capacity of the related confinement feeding operations is more than five hundred animal units.
    Sec. 9.  Section 459.301, subsection 1, Code 2026, is amended by striking the subsection and inserting in lieu thereof the following:
   1.  Two or more animal feeding operations under common ownership or management are deemed to be a single animal feeding operation if any of the following apply:
   a.  The animal feeding operations are adjacent or utilize a common area or system for manure application.
   b.  The confinement feeding operations are deemed to be a single confinement feeding operation in the same manner as two confinement feeding operations are determined to be related under section 459.201A.
    Sec. 10.  Section 459.301, subsection 3, Code 2026, is amended by adding the following new paragraph:
   NEW PARAGRAPH.  c.  Unless expressly stated otherwise in this subchapter, the animal units of all confinement feeding operations that are related and deemed to be the same confinement feeding operation shall be combined when calculating the animal unit capacity of any one of the confinement feeding operations.
    Sec. 11.  NEW SECTION.  459.301A  Business entity —— report.
   A business entity that holds an interest in real property where a confinement feeding operation is located shall submit a report to the department under this subchapter not later than December 31 of each year. The business entity shall state whether the confinement feeding operation is related to another confinement feeding operation as provided in section 459.301. The business entity shall submit a list of names of any persons who have an attributable interest in the real property where the confinement feeding operation is located regardless of whether the business entity states the confinement feeding operation is related to another confinement feeding operation. The department shall adopt rules providing for the combination of reports required in section 459.203B and this section.
    Sec. 12.  Section 459.312, subsection 2, Code 2026, is amended to read as follows:
   2.  a.  Not more than one confinement feeding operation shall be covered by a single manure management plan.
   b.  If two or more confinement feeding operations are deemed to be a single confinement feeding operation under section 459.301, the department may require a separate manure management plan to cover each confinement feeding operation.
    Sec. 13.  Section 459.317, subsection 1, paragraph b, Code 2026, is amended by striking the paragraph.
    Sec. 14.  EFFECTIVE DATE.  This Act, being deemed of immediate importance, takes effect upon enactment.
    Sec. 15.  APPLICABILITY.  This Act shall not apply to a person who has begun construction of a confinement feeding operation structure prior to the effective date of this Act.
EXPLANATION
The inclusion of this explanation does not constitute agreement with
the explanation’s substance by the members of the general assembly.
   BACKGROUND —— GENERAL. This bill amends the “Animal Agriculture Compliance Act” (Code chapter 459), which provides for the regulation of an animal feeding operation where agricultural animals are maintained for at least 45 days in any 12-month period and includes an open feedlot and a confinement feeding operation (operation) and any associated confinement feeding operation structure (structure), such as a building or manure storage structure. Compliance with a statutory regulation under the Code chapter includes compliance with a rule adopted by the department of natural resources (DNR) (Code section 459.1030). Generally, regulations vary based on the size of an operation measured by its animal unit capacity (AUC).
   BACKGROUND —— ADJACENCY. For purposes of air quality regulation, two or more animal feeding operations under common ownership or management are deemed to be a single animal feeding operation if they are adjacent or utilize a common system for manure storage and are separated within a minimum distance from each other based on the size of the operation. For purposes of water quality regulation, two or more animal feeding operations under common ownership or management are deemed to be a single operation if they are adjacent or utilize a common area or system for manure disposal and are separated by another set of separation distances based on the size of the operation.
   BACKGROUND —— AUC. AUC refers to a measurement used to determine the maximum number of animal units that may be maintained as part of an animal feeding operation at any one time. In calculating AUC, a special equivalency factor is assigned for each classification of confined animal.
   BILL’S PROVISIONS —— RELATED CONFINEMENT FEEDING OPERATION.  The bill provides that for purposes of administering and enforcing Code chapter 459, subchapter II, providing for air quality regulations and Code chapter 459, subchapter III, providing for water quality regulations, two or more operations are deemed to be a single operation if they are related. The operations are related if a structure that is part of one operation is separated by less than 2,500 feet from a structure that is part of the other operation and certain alternative conditions apply. The first condition occurs if the confinement feeding operations utilize some common method of manure storage or common area or system for manure disposal. The second condition occurs when the confinement feeding operations utilize a common item or service such as a private road, private water well, utility connection, or other personal property described by DNR rule. The third condition occurs when the same person holds a legal or equitable interest in the real property where the operations are located. If the person is a business entity, the business entity’s interest is attributable to any person who owns an interest in the entity or who is a partner, limited partner, shareholder, member, settlor, trustee, beneficiary, or other equity holder of the business entity. The business entity’s interest is also attributable to any officer, manager, or employee of the business entity. A person’s interest is also attributable to a relative (e.g., spouse, child, or sibling). A person’s interest does not include the acquisition of property by a number of devices including by operation of law, an encumbrance taken as a security, or under contract with a government entity.
   The bill requires a business entity that holds an interest in real property where a confinement feeding operation is located to submit a report to DNR each year that includes a list of names of any persons who have an attributable interest in the real property where the confinement feeding operation is located.
   APPLICABLE CIVIL PENALTIES. Code section 459.602 provides for civil penalties that may be assessed for violations of Code chapter 459, subchapter II (air quality regulations). A violator is subject to Code section 455B.109, which provides for the administrative assessment of civil penalties of up to $10,000. Code section 459.603 provides for civil penalties that may be assessed for violations of Code chapter 459, subchapter III (water quality regulations). A violator is subject to either Code section 455B.109 providing for the administrative assessment of civil penalties or Code section 455B.191, which provides for a general civil penalty assessed judicially of up to $5,000.
   EFFECTIVE DATE. The bill takes effect upon enactment.