House File 987 - Introduced HOUSE FILE 987 BY COMMITTEE ON WAYS AND MEANS (SUCCESSOR TO HSB 322) A BILL FOR An Act providing for the processing of organic material into 1 renewable fuel and digestate, providing fees, and providing 2 penalties. 3 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 4 TLSB 2958HV (2) 91 da/ns

H.F. 987 DIVISION I 1 COMMUNITY ANAEROBIC DIGESTER SYSTEMS 2 Section 1. NEW SECTION . 458.101 Short title. 3 This chapter shall be known and may be cited as the 4 “Community Anaerobic Digester System Act” . 5 Sec. 2. NEW SECTION . 458.102 Definitions. 6 For purposes of this chapter, unless the context otherwise 7 requires: 8 1. a. “Agricultural animal” means an animal belonging to 9 the bovine, caprine, equine, ovine, or porcine species; farm 10 deer as defined in section 170.1; ostriches, rheas, or emus; 11 turkeys, chickens, domestic geese or ducks, or other domestic 12 fowl; or fish or other aquatic organisms confined in private 13 waters for human consumption. 14 b. “Agricultural animal” includes an animal that is part of 15 an animal feeding operation. 16 2. a. (1) “Anaerobic digester system” means a digester 17 processing structure used to effectuate the digestion process. 18 (2) “Anaerobic digester system” may also include any of the 19 following: 20 (a) A liquid digester storage structure. 21 (b) A dry digester manure stockpile. 22 (c) A dry digester feedstock stockpile. 23 (d) A liquid digestate storage structure. 24 (e) A dry digestate stockpile. 25 b. “Anaerobic digester system” includes other related 26 structures, pipes, and equipment used in the digestion process. 27 3. “Animal feeding operation” means the same as defined in 28 section 459.102. 29 4. “Animal feeding operation structure” means the same as 30 defined in section 459.102. 31 5. “Commercial enterprise” means the same as defined in 32 section 459.102. 33 6. “Community anaerobic digester system” means an anaerobic 34 digester system that is not identified with an animal feeding 35 -1- LSB 2958HV (2) 91 da/ns 1/ 36

H.F. 987 operation as provided in section 458.104. 1 7. “Confinement feeding operation structure” means the same 2 as defined in section 459.102. 3 8. “Covered” means organic or inorganic material has been 4 placed upon a digester structure used to store any of the 5 following: 6 a. Digester manure. 7 b. Digester feedstock. 8 c. Digestate. 9 9. “Critical public area” means the same as defined in 10 section 459.102. 11 10. “Department” means the department of natural resources 12 created pursuant to section 455A.2. 13 11. “Designated area” means the same as defined in section 14 459.102. 15 12. “Designated object or location” means any of the 16 following: 17 a. A commercial enterprise. 18 b. A bona fide religious institution. 19 c. An educational institution. 20 d. A public use area. 21 13. “Designated wetland” means the same as defined in 22 section 459.102. 23 14. “Digestate” means the dry or liquid nutrient-rich 24 material that remains after the digestion process is 25 effectuated. 26 15. a. “Digester feedstock” means organic material, other 27 than digester manure, originating on-farm or off-farm that 28 is used to effectuate the digestion process as part of an 29 anaerobic digester system. 30 b. “Digester feedstock” includes either of the following: 31 (1) Dry digester feedstock. 32 (2) Liquid digester feedstock. 33 16. a. “Digester manure” means manure originating on-farm 34 that is used to effectuate the digestion process as part of an 35 -2- LSB 2958HV (2) 91 da/ns 2/ 36

H.F. 987 anaerobic digester system. 1 b. “Digester manure” includes either of the following: 2 (1) Dry digester manure. 3 (2) Liquid digester manure. 4 17. “Digester processing structure” means a structure that 5 effectuates the digestion process. 6 18. “Digester stockpile” means any of the following: 7 a. A dry digester manure stockpile. 8 b. A dry digester feedstock stockpile. 9 c. A dry digestate stockpile. 10 19. “Digester structure” means any of the following: 11 a. A liquid digester storage structure. 12 b. A digester processing structure. 13 c. A liquid digestate storage structure. 14 20. “Digestion process” means primarily processing digester 15 manure, and may include processing digester feedstock, by 16 employing environmental conditions including bacteria to break 17 down organic matter in the absence of oxygen, if used for 18 producing, collecting, and utilizing a biogas and digestate. 19 21. “Dry bedded confinement feeding operation” means the same 20 as defined in section 459B.102. 21 22. “Dry digestate” means digestate that meets the dry 22 classification requirements in section 458.107. 23 23. “Dry digestate stockpile” means dry digestate 24 originating from a community anaerobic digester system and 25 stored as part of the community anaerobic digester system 26 outside a digester structure or on-farm outside any other 27 structure. 28 24. “Dry digester feedstock” means a digester feedstock that 29 meets the dry classification requirements in section 458.107. 30 25. “Dry digester feedstock stockpile” means dry digester 31 feedstock stored outside a digester structure. 32 26. “Dry digester manure” means digester manure that meets 33 the dry classification requirement in section 458.107. 34 27. “Dry digester manure stockpile” means dry digester 35 -3- LSB 2958HV (2) 91 da/ns 3/ 36

H.F. 987 manure stored as part of a community anaerobic digester system 1 outside a digester structure. 2 28. “Dry digester stockpile” means either of the following: 3 a. A dry digester feedstock stockpile. 4 b. A dry digester manure stockpile. 5 29. “Educational institution” means the same as defined in 6 section 459.102. 7 30. “Effluent” means the same as defined in section 8 459A.102. 9 31. “Federal Water Pollution Control Act” means the federal 10 Water Pollution Control Act of 1972, 33 U.S.C. ch. 26, as 11 amended, and 40 C.F.R. pts. 122 and 412. 12 32. “Frozen ground” means the same as defined in section 13 459.102. 14 33. “High-quality water resource” means the same as defined 15 in section 459.102. 16 34. “Karst terrain” means the same as defined in section 17 459.102. 18 35. “Liquid digestate” means digestate other than dry 19 digestate. 20 36. “Liquid digestate storage structure” means a structure 21 used to store liquid digestate. 22 37. “Liquid digester feedstock” means digester feedstock 23 other than dry digester feedstock. 24 38. “Liquid digester feedstock storage structure” means 25 a structure used to store liquid digester feedstock or dry 26 digester feedstock before undergoing a digestion process as 27 effectuated by a digester processing structure. 28 39. “Liquid digester manure” means digester manure other 29 than dry digester manure. 30 40. “Liquid digester manure storage structure” means a manure 31 storage structure used to store liquid digester manure or 32 dry digester manure before undergoing a digestion process as 33 effectuated by a digester processing structure. 34 41. “Liquid digester storage structure” means a structure 35 -4- LSB 2958HV (2) 91 da/ns 4/ 36

H.F. 987 used to store digester manure or digester feedstock, or both, 1 before undergoing a digestion process as effectuated by a 2 digester processing structure. 3 42. “Major water source” means the same as defined in 4 section 459.102. 5 43. “Manure” means the same as defined in section 459.102. 6 44. “Manure management plan” means a manure management plan, 7 including an updated manure management plan, as provided in 8 section 459.312. 9 45. “Manure storage structure” means the same as defined in 10 section 459.102. 11 46. “Nutrient management plan” means a nutrient management 12 plan or an updated nutrient management plan as provided in 13 section 459A.208. 14 47. “Off-farm” means real property that is not on-farm. 15 48. “On-farm” means real property used to produce raw 16 agricultural commodities, including agricultural animals; crops 17 such as corn, grain sorghum, oats, soybeans, or wheat; hay or 18 straw; milk; or wool. 19 49. “Open feedlot operation” means the same as defined in 20 section 459A.102. 21 50. “Professional engineer” means the same as defined in 22 section 459.102. 23 51. “Religious institution” means the same as defined in 24 section 459.102. 25 52. “Research college” means the same as defined in section 26 459A.102. 27 53. “Snow covered ground” means the same as defined in 28 section 459.102. 29 54. “Water of the state” means the same as defined in 30 section 455B.171. 31 55. “Water source” means the same as defined in section 32 459.102. 33 Sec. 3. NEW SECTION . 458.103 Special terms —— community 34 anaerobic digester systems and on-farm operations. 35 -5- LSB 2958HV (2) 91 da/ns 5/ 36

H.F. 987 1. a. A community anaerobic digester system must be 1 off-farm. 2 b. An animal feeding operation must be on-farm. 3 2. This chapter does not apply to any of the following: 4 a. A confinement feeding operation structure regulated under 5 chapter 459 regardless of whether manure originating from the 6 confinement feeding operation structure is stored or processed 7 as part of a community anaerobic digester system. 8 b. An open feedlot operation structure regulated under 9 chapter 459A regardless of whether effluent originating from 10 the open feedlot operation structure is stored or processed as 11 part of a community anaerobic digester system. 12 c. A dry bedded confinement feeding operation structure 13 regulated under chapter 459B regardless of whether manure 14 originating from the dry bedded confinement feeding operation 15 structure is stored or processed as part of a community 16 anaerobic digester system. 17 Sec. 4. NEW SECTION . 458.104 Special terms —— community 18 anaerobic digester systems not identified with animal feeding 19 operation. 20 1. a. An anaerobic digester system receiving digester 21 manure from an animal feeding operation is a community 22 anaerobic digester system only if the anaerobic digester system 23 is not identified with that animal feeding operation or any 24 other animal feeding operation, including a confinement feeding 25 operation, open feedlot operation, or dry bedded confinement 26 feeding operation. 27 b. An anaerobic digester system is identified with an animal 28 feeding operation by being both of the following: 29 (1) Under common ownership or management. 30 (2) Adjacent. 31 2. An anaerobic digester system and an animal feeding 32 operation structure are deemed adjacent if the closest 33 digester structure is separated from the closest animal feeding 34 operation structure by less than one thousand two hundred fifty 35 -6- LSB 2958HV (2) 91 da/ns 6/ 36

H.F. 987 feet. 1 3. a. An anaerobic digester system and an animal feeding 2 operation are under common ownership if a person holds an 3 interest in the anaerobic digester system and the animal 4 feeding operation as any of the following: 5 (1) A sole proprietor. 6 (2) A joint tenant or tenant in common. 7 (3) A holder of a majority equity interest in a business 8 association as defined in section 202B.102, including but not 9 limited to a shareholder, partner, member, or beneficiary. 10 b. An interest in the anaerobic digester system and animal 11 feeding operation which is held directly or indirectly by the 12 person’s spouse or dependent child shall be attributed to the 13 person. 14 4. a. An anaerobic digester system and animal feeding 15 operation are under common management if a person has 16 significant control of the management of the day-to-day 17 operations of the anaerobic digester system and animal feeding 18 operation. 19 b. Common management does not include control over a 20 contract livestock facility by a contractor, as those terms are 21 defined in section 202.1. 22 Sec. 5. NEW SECTION . 458.105 Special terms —— multiple 23 anaerobic digester systems. 24 1. A community anaerobic digester system and another 25 anaerobic digester system are deemed to be a single community 26 anaerobic digester system if the community anaerobic digester 27 system and the other anaerobic digester system are both of the 28 following: 29 a. Under common ownership or management. 30 b. Adjacent. 31 2. A community anaerobic digester system and another 32 anaerobic digester system are deemed adjacent if the closest 33 digester structure of the community anaerobic digester system 34 is separated from the closest digester structure of the other 35 -7- LSB 2958HV (2) 91 da/ns 7/ 36

H.F. 987 anaerobic digester system by less than one thousand two hundred 1 fifty feet. 2 3. a. A community anaerobic digester system and another 3 anaerobic digester system are under common ownership if a 4 person holds an interest in the community anaerobic digester 5 system and the other anaerobic digester system as any of the 6 following: 7 (1) A sole proprietor. 8 (2) A joint tenant or tenant in common. 9 (3) A holder of a majority equity interest in a business 10 association as defined in section 202B.102, including but not 11 limited to a shareholder, partner, member, or beneficiary. 12 b. An interest in the community anaerobic digester system 13 and other anaerobic digester system which is held directly or 14 indirectly by the person’s spouse or dependent child shall be 15 attributed to the person. 16 4. A community anaerobic digester system and other 17 anaerobic digester system are under common management if 18 a person has significant control of the management of the 19 day-to-day operations of the community anaerobic digester 20 system and the other anaerobic digester system. 21 Sec. 6. NEW SECTION . 458.106 Special terms —— digester 22 structures. 23 1. Except as otherwise provide in this chapter, a digester 24 structure that is constructed or may be constructed as part of 25 a community anaerobic digester system is regulated under this 26 chapter. 27 2. A digester structure must be covered. 28 3. A digester structure is constructed when any of the 29 following occur: 30 a. Excavation is conducted for a proposed digester structure 31 or proposed expansion of an existing digester structure, 32 including excavation for the footings of the digester 33 structure. 34 b. Forms for concrete are installed for a proposed digester 35 -8- LSB 2958HV (2) 91 da/ns 8/ 36

H.F. 987 structure or the proposed expansion of an existing digester 1 structure. 2 c. Piping for the movement of manure is installed for a 3 proposed digester structure or the proposed expansion of an 4 existing digester structure. 5 Sec. 7. NEW SECTION . 458.107 Special terms —— manure and 6 digestates. 7 1. Except as otherwise provided in this chapter, the term 8 “manure” includes effluent if used as part of the digestion 9 process using digester manure as part of a community anaerobic 10 digester system. 11 2. Digester manure, digester feedstock, or digestate is 12 classified as dry only if all of the following apply: 13 a. The digester manure, digester feedstock, or digestate 14 does not flow perceptibly under pressure. 15 b. The digester manure, digester feedstock, or digestate is 16 not capable of being transported through a mechanical pumping 17 device designed to move a liquid. 18 c. The constituent molecules of the digester manure, 19 digester feedstock, or digestate do not flow freely among 20 themselves but may show a tendency to separate under stress. 21 3. A digester processing structure must process digester 22 manure as its primary source. The digester processing 23 structure may also process any of the following: 24 a. A quantity of digester feedstock as its secondary source. 25 b. An ancillary quantity of an inorganic material, including 26 a catalyst, used to best effectuate the digestion process. 27 The department shall adopt rules listing allowable materials 28 by name and, if necessary, the maximum allowed quantity. 29 The department may also approve the allowable materials and 30 quantity upon request of the owner or manager of the anaerobic 31 digester system. The inorganic material allowed over time must 32 be nonhazardous to the public and environment. 33 4. a. Except as provided in paragraph “b” , digester manure 34 shall not be regulated as manure. 35 -9- LSB 2958HV (2) 91 da/ns 9/ 36

H.F. 987 b. If digester manure and digester feedstock are combined, 1 the digester feedstock shall be regulated as digester manure. 2 5. a. Except as provided in paragraph “b” , a digestate 3 shall not be regulated as manure. 4 b. (1) If digestate is removed from a digester processing 5 structure and at any time is combined with manure, the 6 digestate shall be regulated as manure under chapter 459 and 7 chapter 459B, as applicable. 8 (2) If a digestate is removed from a digester processing 9 structure and at any time is combined with effluent, the 10 digestate shall be regulated as effluent under chapter 459A. 11 Sec. 8. NEW SECTION . 458.108 Separation distance 12 measurements. 13 1. Except as provided in subsection 2, all separation 14 distances between two items described in this chapter shall 15 be measured in feet from their closest points, as provided by 16 rules adopted by the department. 17 2. The distance between a public thoroughfare and a 18 community anaerobic digester system shall be measured from 19 that portion of the public thoroughfare’s right-of-way that is 20 closest to the community anaerobic digester system. 21 Sec. 9. NEW SECTION . 458.109 Stockpiling dry digester 22 manure, dry digester feedstock, or dry digestate. 23 A person may stockpile dry digester manure, dry digester 24 feedstock, or dry digestate, so long as the person stockpiles 25 the dry digester manure, dry digester feedstock, or dry 26 digestate in compliance with restrictions applicable to 27 stockpiling as provided in subchapter III. 28 Sec. 10. NEW SECTION . 458.111 Purpose. 29 The purpose of this chapter is to promote the 30 community-based production of the following: 31 1. Biogas as a renewable organic source of energy with low 32 carbon emissions. 33 2. A digestate as a rich source of renewable nutrients for 34 application on land for on-farm use to produce this state’s 35 -10- LSB 2958HV (2) 91 da/ns 10/ 36

H.F. 987 crops. 1 Sec. 11. NEW SECTION . 458.112 Scope. 2 This chapter is limited to regulating the following: 3 1. The off-farm storage or processing of digester manure or 4 digester feedstock as part of a community anaerobic digester 5 system. Digester manure or digester feedstock shall not be 6 transferred from a community anaerobic digester system except 7 under the terms of a waiver granted by the department. 8 2. The storage or use of a digestate originating from a 9 community anaerobic digester system. 10 Sec. 12. NEW SECTION . 458.113 General authority. 11 1. The department shall adopt rules as necessary to 12 administer and enforce the provisions of this chapter. 13 2. Any provision referring generally to compliance with the 14 requirements of this chapter as applied to community anaerobic 15 digester systems includes compliance with requirements of rules 16 adopted by the department pursuant to this chapter, orders 17 issued by the department as authorized under this chapter, 18 and the terms and conditions applicable to permits or plans 19 required in this chapter. 20 3. If there is a conflict between a provision of this 21 chapter and a provision regulating a community anaerobic 22 digester system in another chapter, the provisions of this 23 chapter shall prevail. 24 4. Rules adopted to implement this subchapter are not 25 subject to section 17A.7, subsection 2 or 3. 26 Sec. 13. NEW SECTION . 458.114 Administration —— forms and 27 other documents. 28 1. The department shall adopt and promulgate forms required 29 to be completed in order to comply with the provisions of this 30 chapter. 31 2. The department shall provide for procedures for the 32 access, receipt, filing, processing, and return of documents 33 described in this chapter in an electronic format, including 34 but not limited to the transmission of documents over the 35 -11- LSB 2958HV (2) 91 da/ns 11/ 36

H.F. 987 internet. The department shall provide for authentication 1 of the documents that may include electronic signatures as 2 provided in chapter 554D. 3 3. The department shall, to every extent feasible, 4 provide for the processing of documents required under the 5 provisions of this chapter using electronic systems, including 6 programming, necessary to ensure the completeness and accuracy 7 of the documents in accordance with the requirements of this 8 chapter. 9 Sec. 14. NEW SECTION . 458.201 Digester manure and digester 10 feedstock —— required storage. 11 A person receiving digester manure or digester feedstock at 12 a community anaerobic digester system must store the digester 13 manure or digester feedstock as follows: 14 1. Liquid digester manure or liquid digester feedstock must 15 be stored in a liquid digester storage structure. 16 2. Dry digester manure must be stored in any of the 17 following: 18 a. A dry digester stockpile. 19 b. A liquid digester storage structure. 20 3. Dry digester feedstock originating on-farm must be 21 stored in any of the following: 22 a. A dry digester stockpile. 23 b. A liquid digester storage structure. 24 4. Dry digester feedstock originating off-farm must be 25 stored in a liquid digester storage structure. 26 Sec. 15. NEW SECTION . 458.202 Digestate —— required 27 storage. 28 1. A person processing digester manure or digester 29 feedstock at a community anaerobic digester system must store 30 the digestate as follows: 31 a. Liquid digestate must be stored in a liquid digestate 32 storage structure. 33 b. Dry digestate must be stored in any of the following: 34 (1) A dry digestate feedstock stockpile. 35 -12- LSB 2958HV (2) 91 da/ns 12/ 36

H.F. 987 (2) A liquid digestate storage structure. 1 2. A person removing digestate from a community anaerobic 2 digester system must store the digestate in a manner that 3 complies with section 459.311. 4 Sec. 16. NEW SECTION . 458.211 Digester structures —— 5 construction permits —— application process. 6 1. Except as provided in section 458.217, a construction 7 permit must be issued to an owner of an existing or proposed 8 community anaerobic digester system prior to the construction 9 of a digester structure, including a liquid digester storage 10 structure, a digester processing structure, or a liquid 11 digestate storage structure, as provided by rules adopted by 12 the department pursuant to this chapter. The department may 13 adopt rules providing separate requirements for each type of 14 digester structure, including a liquid digester manure storage 15 structure and a liquid digester feedstock storage structure. 16 2. The department shall not approve an application for 17 a permit to construct or expand a digester structure if the 18 total liquid capacity of all existing and proposed digester 19 structures would exceed one million five hundred thousand 20 gallons. 21 3. The department’s decision to approve a permit for 22 the construction of a digester structure shall be based on 23 whether the application is submitted according to procedures 24 required by the department and the application meets standards 25 established by this subchapter and rules adopted by the 26 department. 27 4. Construction of a digester structure shall not begin 28 until the department first approves the application and issues 29 a construction permit. 30 5. The department shall approve an application for a 31 construction permit regardless of whether the applicant is 32 required to be issued a construction permit. 33 6. Prior to submitting an application for a construction 34 permit, the applicant may submit a conceptual design and site 35 -13- LSB 2958HV (2) 91 da/ns 13/ 36

H.F. 987 investigation report to the department for review and comment. 1 7. The department shall approve or disapprove an 2 application for a construction permit within sixty days after 3 receiving the permit application. However, the applicant may 4 deliver a notice requesting a continuance. Upon receipt of 5 a notice, the time required for the department to act upon 6 the application shall be suspended for the period provided 7 in the notice, but for not more than thirty days after the 8 department’s receipt of the notice. The applicant may submit 9 more than one notice. However, the department may provide that 10 an application is terminated if no action is required by the 11 department for one year following delivery of the application 12 to the department. The department may also provide for a 13 continuance when it considers the application. The department 14 shall provide notice to the applicant of the continuance. The 15 time required for the department to act upon the application 16 shall be suspended for the period provided in the notice, but 17 for not more than thirty days. However, the department shall 18 not provide for more than one continuance. 19 Sec. 17. NEW SECTION . 458.212 Digester structures —— 20 construction permits —— contents of application. 21 An application for a construction permit as required in 22 section 458.211 must include all of the following information: 23 1. The name and contact information of the owner and manager 24 of the anaerobic digester system. 25 2. The type and description of the proposed new or expanded 26 digester structure, whether it is designed as a liquid digester 27 storage structure, including a liquid digester manure storage 28 structure or liquid digester feedstock storage structure or 29 both, a digester processing structure, or a liquid digestate 30 storage structure. 31 3. The size and liquid capacity of the digester structure. 32 4. Whether the digester structure is formed or unformed. 33 5. Whether the digester structure is to be constructed on 34 land that is any of the following: 35 -14- LSB 2958HV (2) 91 da/ns 14/ 36

H.F. 987 a. A critical public area. 1 b. A designated area. 2 c. A designated wetland. 3 d. Karst terrain. 4 e. In a one hundred year floodplain. 5 6. Information including but not limited to maps, drawings, 6 and aerial photos that clearly show the location of all of the 7 following: 8 a. The location of any neighboring proposed or existing 9 community anaerobic digester system, and any other proposed or 10 existing digester structures. 11 b. The location of any animal feeding operation structure 12 existing in proximity to the construction site. 13 c. A public water supply system as defined in section 14 455B.171 or a drinking water well which is located within a 15 distance from the proposed construction site as prescribed by 16 rules adopted by the department. 17 7. An engineering report, construction plans, and 18 specifications prepared by a professional engineer. The 19 professional engineer must certify that the construction of 20 the digester structure complies with the construction design 21 standards required in this subchapter. 22 8. A plan for maintaining digester records for inspection by 23 the department as required in section 458.324. 24 9. Any other information determined relevant by the 25 department as provided by rules adopted by the department. 26 Sec. 18. NEW SECTION . 458.213 Digester structures —— 27 construction permits —— application fee. 28 A person submitting an application for a construction permit 29 as provided in section 458.211 must submit to the department a 30 construction permit application fee as part of the application. 31 The fee shall not exceed one thousand dollars. Moneys 32 collected by the department from the payment of construction 33 permit application fees shall be deposited in the general fund 34 of the state. 35 -15- LSB 2958HV (2) 91 da/ns 15/ 36

H.F. 987 Sec. 19. NEW SECTION . 458.217 Digester structures —— 1 construction permits —— exception. 2 A person is not required to be issued a permit to construct 3 a digester structure if the anaerobic digester system is owned 4 by a research college conducting research activities involving 5 the digestion process, including associated liquid digester 6 manure storage or stockpiling, digester feedstock storage 7 or stockpiling, digestate storage, or the application of a 8 digestate. 9 Sec. 20. NEW SECTION . 458.221 General construction design 10 standards —— formed liquid digester structures. 11 1. The department shall adopt rules establishing 12 construction design standards for a formed digester structure, 13 including a formed liquid digester storage structure, a 14 formed digester processing structure, and a formed liquid 15 digestate storage structure. The department may adopt rules 16 providing separate regulations for each type of formed digester 17 structure, including a formed liquid digester manure storage 18 structure and a formed liquid digester feedstock storage 19 structure. 20 2. The construction design standards shall be based, to 21 every extent possible, upon uniform standards such as available 22 standards promulgated by ASTM (American society for testing and 23 materials) international. 24 3. The construction design standards for concrete must 25 provide for all of the following: 26 a. The concrete’s minimum compressive strength calculated on 27 a pounds-per-square-inch basis. 28 b. The use of reinforcement, including but not limited to 29 the grade, amount, and location of steel rebar, fiberglass, or 30 similar materials set in the concrete, or the use of exterior 31 braces to support joints. 32 c. The depth of footings. 33 d. The thickness of the footings, the floor, and walls. 34 Sec. 21. NEW SECTION . 458.222 Special construction 35 -16- LSB 2958HV (2) 91 da/ns 16/ 36

H.F. 987 restrictions —— formed digester structures. 1 The department shall adopt rules providing for upgraded 2 construction design standards for a formed digester structure 3 constructed on karst terrain or an area that drains into a 4 known sinkhole as is necessary to ensure that a formed digester 5 structure does not pollute groundwater sources. 6 Sec. 22. NEW SECTION . 458.225 General construction design 7 standards —— unformed digester structures —— inspections. 8 1. The department shall adopt rules establishing 9 construction design standards for an unformed digester 10 structure, including an unformed liquid digester storage 11 structure, an unformed digester processing structure, and an 12 unformed liquid digestate storage structure. The department 13 may adopt rules providing separate regulations for each type 14 of formed digester structure, including an unformed liquid 15 digester manure storage structure and an unformed liquid 16 digester feedstock storage structure. 17 2. The construction design standards for an unformed 18 digester structure, established by rules adopted by the 19 department, must account for special design characteristics 20 applicable to an unformed digester storage structure, an 21 unformed digester processing structure, or an unformed liquid 22 digestate storage structure. The construction design standards 23 must account for all of the following: 24 a. The lining of the unformed digester structure must be 25 constructed with materials deemed suitable by rules adopted by 26 the department in order to minimize liquid seepage loss through 27 the lining’s seal. 28 b. The structure must be constructed with materials deemed 29 suitable by rules adopted by the department in order to control 30 erosion on the unformed digester structure’s berm, side slopes, 31 and base. 32 c. The unformed digester structure must be constructed 33 to minimize the seepage of a liquid into near-surface water 34 sources. 35 -17- LSB 2958HV (2) 91 da/ns 17/ 36

H.F. 987 d. The top of the floor of the unformed digester structure’s 1 liner must be above the groundwater table as determined by 2 the department. If the groundwater table is less than two 3 feet below the top of the liner’s floor, the unformed digester 4 structure must be installed with a synthetic liner. If the 5 department allows an unformed digester structure to be located 6 at a site by permanently lowering the groundwater table, 7 the department shall confirm that the proposed system meets 8 standards necessary to ensure that the unformed digester 9 structure does not pollute groundwater sources. If the 10 department allows drain tile installed to lower a groundwater 11 table to remain where located, the department shall require 12 that a device be installed to allow monitoring of the water in 13 the drain tile line. The department shall also require the 14 installation of a device to allow shutoff of the drain tile 15 lines, if the drain tile lines do not have a surface outlet 16 accessible on the property where the digester structure is 17 located. 18 3. a. The department shall conduct a routine inspection 19 of each unformed digester structure at least once each year. 20 A routine inspection conducted pursuant to this subsection 21 shall be limited to a visual inspection of the site where the 22 unformed digester structure is located. The department shall 23 inspect the site at a reasonable time after providing at least 24 twenty-four hours’ notice to the person owning or managing the 25 anaerobic digester system. The visual inspection must include 26 but is not limited to determining whether any of the following 27 exist: 28 (1) An adequate freeboard level. 29 (2) The seepage of a liquid from the unformed digester 30 structure. 31 (3) Erosion. 32 (4) Inadequate cover. 33 (5) The presence of an opening allowing liquid to drain from 34 the unformed digester structure. 35 -18- LSB 2958HV (2) 91 da/ns 18/ 36

H.F. 987 b. Paragraph “a” does not restrict the department from 1 conducting an inspection of an anaerobic digester system which 2 is not routine. 3 Sec. 23. NEW SECTION . 458.226 Special construction 4 restrictions —— unformed digester structures. 5 1. Except as provided in subsection 2, a person shall not 6 construct an unformed digester structure on karst terrain. 7 2. A person may construct an unformed digester structure 8 on karst terrain if there is a twenty-five-foot vertical 9 separation distance between the bottom of the unformed digester 10 structure and underlying limestone, dolomite, or other soluble 11 rock. 12 Sec. 24. NEW SECTION . 458.227 Restrictions —— unformed 13 digester structures. 14 1. A person shall not construct an unformed digester 15 structure in an area that drains into a known sinkhole. 16 2. A person shall not construct or expand an unformed liquid 17 digester structure within an agricultural drainage well area 18 as provided in section 460.205. 19 Sec. 25. NEW SECTION . 458.301 Minimum air quality 20 separation distance requirements —— digester structures. 21 1. Except as provided in section 458.302, a person shall 22 not construct or expand a digester structure if the digester 23 structure is located within two thousand five hundred feet from 24 any of the following: 25 a. A residence not owned by the owner of the community 26 anaerobic digester system. 27 b. A designated object or location. 28 2. Except as provided in section 458.302, a person shall 29 not construct or expand a digester structure if the digester 30 structure is within one hundred feet of a public thoroughfare. 31 Sec. 26. NEW SECTION . 458.302 Air quality separation 32 distance requirements —— digester structures —— exemptions. 33 A separation distance requirement provided in section 34 458.301 does not apply to any of the following: 35 -19- LSB 2958HV (2) 91 da/ns 19/ 36

H.F. 987 1. a. A digester structure that is constructed or 1 expanded, if the titleholder of the land benefiting from the 2 separation distance requirement executes a written waiver with 3 the titleholder of the land where the digester structure is 4 located. If a digester structure is constructed or expanded 5 within the separation distance required between a digester 6 structure and a public thoroughfare, the state or a political 7 subdivision constructing or maintaining the public thoroughfare 8 benefiting from the distance separation requirement may execute 9 a written waiver with the titleholder of the land where the 10 digester structure is located. The digester structure shall be 11 constructed or expanded under such terms and conditions that 12 the parties negotiate. 13 b. A written waiver under this subsection becomes effective 14 only upon the recording of the waiver in the office of the 15 recorder of deeds of the county in which the benefited land 16 is located. The filed waiver shall preclude enforcement by 17 the state of this part as it relates to a separation distance 18 requirement between the digester structure and the location or 19 object benefiting from the separation distance requirement. 20 2. a. A digester structure that is constructed or expanded 21 within any distance from a residence or a designated object or 22 location, if the residence or designated object or location 23 was constructed or expanded after the date that the community 24 anaerobic digester system was established. 25 b. The date that a community anaerobic digester system 26 is established is the date on which the community anaerobic 27 digester system commenced operating. A change in ownership or 28 expansion of the community anaerobic digester system does not 29 change the established date of the community anaerobic digester 30 system. 31 Sec. 27. NEW SECTION . 458.303 Minimum air quality 32 separation distance requirements —— stockpiling dry digester 33 manure, dry digester feedstock, or dry digestate. 34 1. Except as provided in subsection 2, a person shall not 35 -20- LSB 2958HV (2) 91 da/ns 20/ 36

H.F. 987 stockpile dry digester manure, dry digester feedstock, or dry 1 digestate on land that is located within one thousand two 2 hundred fifty feet of any of the following: 3 a. A residence not owned by the titleholder of the land. 4 b. A designated object or location. 5 2. A person may stockpile dry digester manure within a 6 separation distance required in subsection 1 if the titleholder 7 of the land benefiting from the separation distance requirement 8 executes a written waiver with the titleholder of the land 9 where the stockpile is located. 10 Sec. 28. NEW SECTION . 458.304 Minimum air quality 11 separation distance requirements —— application of liquid 12 digestate. 13 1. Except as provided in subsection 2, a person shall not 14 apply liquid digestate on land located within seven hundred 15 fifty feet of any of the following: 16 a. A residence not owned by the titleholder of the land. 17 b. A designated object or location. 18 2. A person may apply liquid digestate on land within a 19 separation distance required in subsection 1 if any of the 20 following apply: 21 a. The liquid digestate is injected into the soil or 22 incorporated within the soil not later than twenty-four hours 23 from the original application, as provided by rules adopted by 24 the department. 25 b. The titleholder of the land benefiting from the 26 separation distance requirement executes a written waiver with 27 the titleholder of the land where the liquid digestate is 28 applied. 29 c. The liquid digestate is applied by spray irrigation 30 equipment using a center pivot mechanism as provided by rules 31 adopted by the department, if all of the following apply: 32 (1) The spray irrigation equipment uses hoses which apply 33 the liquid digestate in a downward direction at a height of not 34 more than nine feet above the soil. 35 -21- LSB 2958HV (2) 91 da/ns 21/ 36