HF 989 (LSB 2959HV (1) 91)

HOUSE FILE 989

BY  COMMITTEE ON WAYS AND MEANS

(SUCCESSOR TO HSB 323)

A BILL FOR

An Act relating to animal feeding operations, by providing for the regulation of anaerobic digester systems, providing fees, 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, subsection 2, Code 2025, is amended by striking the subsection.
    Sec. 2.  NEW SECTION.  459.104  Purpose.
   The purpose of this chapter, together with chapters 459A and 459B, is to regulate animal agriculture, including but not limited to the storage, application, and processing of organic materials, including manure, originating from animal feeding operations.
    Sec. 3.  Section 459.201, Code 2025, is amended by adding the following new subsection:
   NEW SUBSECTION.  6.  “Anaerobic digester system” means the same as defined in section 459.701.
    Sec. 4.  NEW SECTION.  459.701  Definitions.
   For purposes of this subchapter, unless the context otherwise requires:
   1.  a.  (1)  “Anaerobic digester system” means a digester processing structure to effectuate the digestion process.
   (2)  “Anaerobic digester system” may also include any of the following:
   (a)  A dry digester feedstock stockpile.
   (b)  A digester feedstock storage structure.
   (c)  A dry digestate stockpile.
   (d)  A liquid digestate storage structure.
   b.  “Anaerobic digester system” includes other related structures, pipes, and equipment used in the digestion process.
   2.  “Digestate” means the dry or liquid nutrient-rich material that remains after the digestion process is effectuated.
   3.  a.  “Digester feedstock” means organic material, other than manure, derived from an on-farm source or nonfarm source that is used to effectuate the digestion process as part of an anaerobic digester system.
   b.  “Digester feedstock” includes the following:
   (1)  Dry digester feedstock.
   (2)  Liquid digester feedstock.
   4.  “Digester feedstock storage structure” means a structure used to store digester feedstock before undergoing a digestion process as effectuated by an anaerobic digester system.
   5.  “Digester processing structure” means a structure that effectuates the digestion process.
   6.  “Digester stockpile” means any of the following:
   a.  A dry digester feedstock stockpile.
   b.  A dry digestate stockpile.
   7.  “Digester structure” means any of the following:
   a.  A digester feedstock storage structure.
   b.  A digester processing structure.
   c.  A liquid digestate storage structure.
   8.  “Digestion process” means primarily processing manure, and may include processing digester feedstock, by employing environmental conditions including bacteria to break down its organic matter in the absence of oxygen, if used for producing, collecting, and utilizing a biogas and digestate.
   9.  “Dry digestate” means digestate that meets the dry classification requirements in section 459.707.
   10.  “Dry digestate stockpile” means dry digestate stored outside a digester structure.
   11.  “Dry digester feedstock” means a digester feedstock that meets the dry classification requirements in section 459.707.
   12.  “Dry digester feedstock stockpile” means dry digester feedstock stored outside a digester structure.
   13.  “Liquid digestate” means digestate other than dry digestate.
   14.  “Liquid digestate storage structure” means a structure used to store liquid digestate.
   15.  “Liquid digester feedstock” means digester feedstock other than dry digester feedstock.
   16.  “Nonfarm” means real property that is not on-farm.
   17.  “On-farm” means real property used to produce raw agricultural commodities, including agricultural animals; crops such as corn, grain sorghum, oats, soybeans, or wheat; hay or straw; milk; or wool.
    Sec. 5.  NEW SECTION.  459.702  Scope.
   1.  This subchapter is limited to the regulation of on-farm construction, including expansion, of structures, the on-farm use of stockpiles, and the on-farm application of digestates.
   2.  If there is a conflict between the provisions of this subchapter and another subchapter, the provisions of this subchapter shall prevail.
   3.  Rules adopted to implement this subchapter are not subject to section 17A.7, subsection 2 or 3.
    Sec. 6.  NEW SECTION.  459.703  Administration —— departmental authority.
   1.  The department shall establish by rule adopted pursuant to chapter 17A requirements relating to the construction, including expansion, or operation of on-farm anaerobic digester systems, including on-farm digester structures, on-farm digester stockpiles, and the on-farm application of digestates produced from on-farm anaerobic digester systems.
   2.  The department shall adopt and promulgate forms required to be completed in order to comply with this subchapter including forms for documents that the department shall make available on the internet.
   3.  The department may provide separate application forms for constructing each type of digester structure regulated under this subchapter, including a digester feedstock storage structure, a digester processing structure, and a liquid digestate storage structure. For administrative efficiency, the department shall provide a single application form that combines the three applications together. An application fee shall be based on the number of digester structures to be constructed or expanded as stated in an application.
    Sec. 7.  NEW SECTION.  459.704  Minimum requirements for manure control —— water quality.
   The delivery of manure by an animal feeding operation for processing by an anaerobic digester system in a manner that complies with this subchapter constitutes manure disposal satisfying the requirements of section 459.311.
    Sec. 8.  NEW SECTION.  459.705  Special terms —— anaerobic digester systems.
   1.  a.  An anaerobic digester system must be identified with an animal feeding operation.
   b.  An anaerobic digester system receiving manure from an animal feeding operation is identified with the animal feeding operation if the anaerobic digester system and the animal feeding operation are either of the following:
   (1)  Under common ownership or management.
   (2)  Adjacent.
   c.  An anaerobic digester system and an animal feeding operation shall be subject to an enforcement action arising from the facts of a violation only if the anaerobic digester system is identified with the animal feeding operation pursuant to both subparagraphs (1) and (2) of paragraph “b”.
   2.  An anaerobic digester system and an animal feeding operation structure are deemed adjacent if the closest digester structure is separated from the closest animal feeding operation structure by less than one thousand two hundred fifty feet.
   3.  a.  An anaerobic digester system and an animal feeding operation are under common ownership if a person holds an interest in the anaerobic digester system and the animal feeding operation as any of the following:
   (1)  A sole proprietor.
   (2)  A joint tenant or tenant in common.
   (3)  A holder of a majority equity interest in a business association as defined in section 202B.102, including but not limited to a shareholder, partner, member, or beneficiary.
   b.  An interest in the anaerobic digester system and animal feeding operation which is held directly or indirectly by the person’s spouse or dependent child shall be attributed to the person.
   4.  a.  An anaerobic digester system and animal feeding operation are under common management if a person has significant control of the management of the day-to-day operations of the community anaerobic digester system and animal feeding operation.
   b.  Common management does not include control over a contract livestock facility by a contractor, as those terms are defined in section 202.1.
    Sec. 9.  NEW SECTION.  459.706  Special terms —— digester structures.
   1.  A digester structure that is used as a manure storage structure and that is not subject to a digestion process shall be conclusively presumed to be a manure storage structure.
   2.  Any digester structure must be covered. Notwithstanding section 459.102, subsection 19, a cover must include organic or inorganic material placed upon a digester structure as provided by rules adopted by the department.
   3.  A digester structure is constructed when any of the following occur:
   a.  Excavation is conducted for a proposed digester structure or proposed expansion of an existing digester structure, including excavation for the footings of the digester structure.
   b.  Forms for concrete are installed for a proposed digester structure or the proposed expansion of an existing digester structure.
   c.  Piping for the movement of manure is installed between an animal feeding operation structure and a digester structure proposed to be constructed or expanded.
   4.  a.  This subchapter does not apply to a confinement feeding operation structure regardless of whether manure originating from the confinement feeding operation structure is received by a digester processing structure.
   b.  This subchapter does not apply to an open feedlot operation structure regulated under chapter 459A regardless of whether effluent originating from the open feedlot operation structure is received by a digester processing structure.
   c.  Placing a cover over a manure storage structure does not constitute construction or expansion of a digester structure.
    Sec. 10.  NEW SECTION.  459.707  Special terms —— manure and digestates.
   For purposes of this subchapter, all of the following apply:
   1.  The term “manure” includes “effluent” as defined in section 459A.102.
   2.  Digester feedstock or digestate is classified as dry only if all of the following apply:
   a.  The digester feedstock or digestate does not flow perceptibly under pressure.
   b.  The digester feedstock or digestate is not capable of being transported through a mechanical pumping device designed to move a liquid.
   c.  The constituent molecules of the digester feedstock or digestate do not flow freely among themselves but may show a tendency to separate under stress.
   3.  A digester processing structure is limited to processing manure as its primary source. The digester processing structure may also process any of the following:
   a.  A quantity of digester feedstock as its secondary source.
   b.  An ancillary quantity of an inorganic material, including a catalyst, used to best effectuate the digestion process. The department shall adopt rules listing allowable materials by name and, if necessary, the maximum allowed quantity. The department may also approve the allowable materials and quantity upon request of the owner or manager of the anaerobic digester system. The allowed inorganic material allowed over time must be nonhazardous to the public and environment.
   4.  a.  Except as provided in paragraph “b”, a digestate shall not be regulated as manure.
   b.  If a digestate is removed from a digester processing structure and at any time is combined with manure, the digestate shall be regulated as manure under this chapter, chapter 459A, and chapter 459B, as applicable.
    Sec. 11.  NEW SECTION.  459.711  Digester structures —— construction permits.
   1.  a.  Except as provided in paragraph “b”, a construction permit must be issued prior to the construction of a digester structure, including a digester feedstock storage structure, a digester processing structure, and a liquid digestate storage structure, as provided by rules adopted by the department pursuant to this subchapter.
   b.  A person is not required to be issued a permit to construct a digester structure if the anaerobic digester system is owned by a research college as defined in section 459.318 conducting research activities.
   2.  The department’s decision to approve a permit for the construction of a digester structure shall be based on whether the application is submitted according to procedures required by the department and the application meets standards established by this subchapter and rules adopted by the department.
   3.  Construction of a digester structure shall not begin until the department first approves the application and issues a construction permit.
   4.  The applicant for a construction permit must be the owner of the anaerobic digester system and the person responsible for the construction and operation of the anaerobic digester system.
   5.  The department shall approve an application for a construction permit regardless of whether the applicant is required to be issued a construction permit.
   6.  Prior to submitting an application for a construction permit, the applicant may submit a conceptual design and site investigation report to the department for review and comment.
   7.  An application for a construction permit must include all of the following information:
   a.  The name and contact information of the owner and manager of the anaerobic digester system identified with an animal feeding operation under section 459.705 and the owner and manager of the identified animal feeding operation.
   b.  Whether the digester structure is formed or unformed.
   c.  Information including but not limited to maps, drawings, and aerial photos that clearly show the location of all of the following:
   (1)  The location of the proposed or existing anaerobic digester system, and any other proposed or existing digester structures or digester stockpiles.
   (2)  The location of any proposed or existing animal feeding operation structure that is part of the identified animal feeding operation.
   (3)  A public water supply system as defined in section 455B.171 or a drinking water well which is located within a distance from the proposed digester structure as prescribed by rules adopted by the department.
   d.  An engineering report, construction plans, and specifications prepared by a professional engineer or the natural resources conservation service of the United States department of agriculture. The professional engineer must certify that the construction of the digester structure complies with the construction design standards required in this subchapter.
   8.  The department must approve or disapprove an application for a construction permit within sixty days following the applicant’s delivery of the application to the department. However, the applicant may deliver a notice requesting a continuance. Upon receipt of a notice, the time required for the department to act upon the application shall be suspended for the period provided in the notice of continuance, but for not more than thirty days after the department’s receipt of the notice. The applicant may submit more than one notice. However, the department may provide that an application is terminated if no action is required by the department for one year following delivery of the application to the department. The department may also provide for a continuance when it considers the application. The department shall provide notice to the applicant of the continuance. The time required for the department to act upon the application shall be suspended for the period provided in the notice of continuance, but for not more than thirty days. However, the department shall not provide for more than one continuance.
    Sec. 12.  NEW SECTION.  459.712  Digester feedstock storage structure —— required storage.
   A person processing digester feedstock as part of an anaerobic digester system must store the digester feedstock as follows:
   1.  Nonfarm digester feedstock must be stored in a liquid digestate storage structure.
   2.  a.  On-farm digester feedstock that is liquid must be stored in a liquid digestate storage structure.
   b.  On-farm digester feedstock that is dry must be stored in any of the following:
   (1)  A liquid digestate storage structure.
   (2)  A dry digestate feedstock stockpile.
   3.  A person may store digester feedstock in a permitted covered manure storage structure according to rules adopted by the department.
    Sec. 13.  NEW SECTION.  459.713  Digester feedstock storage structure —— construction permit.
   1.  In addition to the applicable requirements in section 459.711, an application for a permit to construct a digester feedstock storage structure must include all of the following information:
   a.  A description of the type and amount of digester feedstock to be stored in the digester feedstock storage structure.
   b.  The storage capacity of the digester feedstock storage structure.
   c.  A description of the digester processing structure used to process the received manure and digester feedstock.
   d.  Any other information determined relevant by the department as provided by rules adopted by the department.
   2.  The applicant must submit a construction permit application fee as part of the application. The fee shall not exceed two hundred fifty dollars. Moneys collected by the department from the payment of fees under this section shall be deposited in the general fund of the state.
    Sec. 14.  NEW SECTION.  459.714  Digester processing structure —— construction permit.
   1.  In addition to the applicable requirements in section 459.711, an application for a permit to construct a digester processing structure must include all of the following:
   a.  A description of the type and amount of digester feedstock that is capable of being processed in the digester processing structure at any one time.
   b.  The processing capacity of the digester processing structure.
   c.  Unless an anaerobic digester system and animal feeding operation are under common ownership or management as described in section 459.705, a description of the responsibilities of each of the following:
   (1)  For an anaerobic digester system, the terms of an agreement to receive manure from the animal feeding operation with which the anaerobic digester system is identified under section 459.705.
   (2)  For an animal feeding operation with which the anaerobic digester system is identified under section 459.705, the terms of an agreement to deliver manure to the anaerobic digester system.
   d.  (1)  If digestate is to be applied to land subject to a manure management plan, a copy of the plan and digestate management supplement as required in section 459.733.
   (2)  If digestate is to be applied to land subject to a nutrient management plan, a copy of the plan and digestate management supplement as required in section 459.733.
   e.  Any other information determined relevant by the department as provided by rules adopted by the department.
   2.  The application must include a plan for maintaining records regarding all of the following as provided by rules adopted by the department:
   a.  (1)  The manure, digester feedstock, and inorganic materials subject to processing.
   (2)  The digestate and biogas processed.
   b.  Procedures for the departmental inspection of the records.
   3.  The applicant must submit a construction permit application fee as part of the application. The fee shall not exceed two hundred fifty dollars. Moneys collected by the department from the payment of fees under this section shall be deposited in the general fund of the state.
    Sec. 15.  NEW SECTION.  459.715  Digestate —— required storage.
   A person processing manure or digester feedstock as part of an anaerobic digester system must store the produced digestate as follows:
   1.  Liquid digestate must be stored in a liquid digestate storage structure.
   2.  Dry digestate must be stored in any of the following:
   a.  A liquid digestate storage structure.
   b.  A dry digestate feedstock stockpile.
    Sec. 16.  NEW SECTION.  459.716  Liquid digestate storage structure —— construction permit.
   1.  In addition to the applicable requirements in section 459.711, an application for a permit to construct a liquid digestate storage structure must include all of the following information:
   a.  A description of the type and amount of digestate to be stored in the liquid digestate storage structure.
   b.  The storage capacity of the liquid digestate storage structure.
   c.  Any other information determined relevant by the department as provided by rules adopted by the department.
   2.  The applicant must submit a construction permit application fee as part of the application. The fee shall not exceed two hundred fifty dollars. Moneys collected by the department from the payment of fees under this section shall be deposited in the general fund of the state.
    Sec. 17.  NEW SECTION.  459.717  Construction design standards —— formed digester structures.
   1.  The department shall adopt rules establishing construction design standards for a formed digester structure, including a formed digester feedstock storage structure, a formed digester processing structure, or a formed liquid digestate storage structure. The department may adopt rules providing separate regulations for each type of formed digester structure.
   2.  The construction design standards shall be based, to every extent possible, upon uniform standards such as available standards promulgated by ASTM (American society for testing and materials) international.
   3.  The construction design standards for concrete must provide for all of the following:
   a.  The concrete’s minimum compressive strength calculated on a pounds-per-square-inch basis.
   b.  The use of reinforcement, including but not limited to the grade, amount, and location of steel rebar, fiberglass, or similar materials set in the concrete, or the use of exterior braces to support joints.
   c.  The depth of footings.
   d.  The thickness of the footings, the floor, and walls.
    Sec. 18.  NEW SECTION.  459.718  Special construction restrictions —— formed digester structures.
   The department shall adopt rules providing for upgraded construction design standards for a formed digester structure constructed on karst terrain or an area that drains into a known sinkhole as is necessary to ensure that a formed digester structure does not pollute groundwater sources.
    Sec. 19.  NEW SECTION.  459.719  Construction design standards —— unformed digester structures —— inspections.
   1.  The department shall adopt rules establishing construction design standards for an unformed digester structure, including an unformed digester feedstock storage structure, an unformed digester processing structure, or an unformed liquid digestate storage structure. The department may adopt rules providing separate regulations for each type of digester structure.
   2.  The construction design standards for an unformed digester structure, established by rules adopted by the department, must account for special design characteristics applicable to an unformed digester feedstock storage structure, an unformed digester processing structure, or an unformed liquid digestate storage structure. The construction design standard must account for all of the following:
   a.  The lining of the unformed digester structure must be constructed with materials deemed suitable by rules adopted by the department in order to minimize seepage loss through the lining’s seal.
   b.  The structure must be constructed with materials deemed suitable by rules adopted by the department in order to control erosion on the unformed digester structure’s berm, side slopes, and base.
   c.  The unformed digester structure must be constructed to minimize seepage into near-surface water sources.
   d.  The top of the floor of the unformed digester structure’s liner must be above the groundwater table as determined by the department. If the groundwater table is less than two feet below the top of the liner’s floor, the unformed digester structure shall be installed with a synthetic liner. If the department allows an unformed digester structure to be located at a site by permanently lowering the groundwater table, the department shall confirm that the proposed system meets standards necessary to ensure that the unformed digester structure does not pollute groundwater sources. If the department allows drain tile installed to lower a groundwater table to remain where located, the department shall require that a device be installed to allow monitoring of the water in the drain tile line. The department shall also require the installation of a device to allow shutoff of the drain tile lines, if the drain tile lines do not have a surface outlet accessible on the property where the digester structure is located.
   3.  a.  The department shall conduct a routine inspection of each unformed digester structure at least once each year. A routine inspection conducted pursuant to this paragraph shall be limited to a visual inspection of the site where the unformed digester structure is located. The department shall inspect the site at a reasonable time after providing at least twenty-four hours’ notice to the person owning or managing the anaerobic digester system. The visual inspection must include but is not limited to determining whether any of the following exist:
   (1)  An adequate freeboard level.
   (2)  The seepage of a liquid from the unformed digester structure.
   (3)  Erosion.
   (4)  Inadequate cover.
   (5)  The presence of an opening allowing liquid to drain from the unformed digester structure.
   b.  Paragraph “a” does not restrict the department from conducting an inspection of an anaerobic digester system which is not routine.
    Sec. 20.  NEW SECTION.  459.720  Special construction restrictions —— unformed digester structures.
   1.  a.  Except as provided in paragraph “b”, a person shall not construct an unformed digester structure on karst terrain.
   b.  A person may construct an unformed digester structure on karst terrain if there is a twenty-five-foot vertical separation distance between the bottom of the unformed digester structure and underlying limestone, dolomite, or other soluble rock.
   2.  A person shall not construct an unformed digester structure in an area that drains into a known sinkhole.
   3.  A person shall not construct or expand an unformed manure storage structure within an agricultural drainage well area as provided in section 460.205.
    Sec. 21.  NEW SECTION.  459.721  Duty of removal.
   The owner of a digester structure that is part of an anaerobic digester system that discontinues use shall remove all material from the digester structure within six months following the date that the anaerobic digester system is discontinued.
    Sec. 22.  NEW SECTION.  459.731  Distance requirements for digester structures —— air quality.
   A separation distance requirement applies between a digester structure that is part of the anaerobic digester system and an object or location described in section 459.202 as follows:
   1.  The anaerobic digester system and its identified confinement feeding operation as provided in section 459.705 shall be deemed to be a single confinement feeding operation, and the digester structure shall be deemed to be a manure storage structure that is part of the identified confinement feeding operation.
   2.  The separation distance shall be determined according to the date that the digester structure was constructed or expanded according to the relevant table in section 459.202, subsections 1 through 5, subject to section 459.202, subsection 6, and subject to provisions allowing the expansion of prior constructed confinement feeding operations under section 459.203 and exceptions to separation distance requirements in section 459.205.
    Sec. 23.  NEW SECTION.  459.732  Distance requirements for digester structures —— water quality.
   The same separation distance requirements and exceptions to those separation distance requirements that apply to a confinement feeding operation structure and an object or location for which separation is required in section 459.310 apply to a digester structure and that same object or location.
    Sec. 24.  NEW SECTION.  459.733  Digestate management —— water quality.
   If digestate is applied on land subject to a manure management plan pursuant to section 459.312 or a nutrient management plan pursuant to section 459A.208, the manure management plan or nutrient management plan must be attached with a digestate management supplement. The digestate management supplement must include all of the following:
   1.  Calculations necessary to determine the land area required for the application of the digestate and manure from a confinement feeding operation or effluent from an open feedlot operation.
   2.  The nutrient concentrations of the digestate.
    Sec. 25.  NEW SECTION.  459.734  Stockpiling dry digester feedstock or dry digestate —— air quality.
   1.  A person may stockpile dry digester feedstocks or dry digestate subject to this section.
   2.  a.  Except as provided in paragraph “b”, the person shall not stockpile dry digester feedstock or dry digestate within one thousand two hundred fifty feet from a residence not owned by the titleholder of the land, a commercial enterprise, a bona fide religious institution, an educational institution, or a public use area.
   b.  The person may stockpile dry digester feedstock or dry digestate within a separation distance required between the stockpiled dry digestate and an object or location for which separation is required under paragraph “a”, if the titleholder of the land benefiting from the separation distance requirement executes a written waiver with the titleholder of the land where the dry digester feedstock or dry digestate is stockpiled.
    Sec. 26.  NEW SECTION.  459.735  Stockpiling dry digestate —— water quality.
   A person may stockpile dry digestate subject to this section.
   1.  The person stockpiling dry digestate shall comply with applicable requirements of the national pollutant discharge elimination system pursuant to the federal Water Pollution Control Act, 33 U.S.C. ch. 26, as amended, and 40 C.F.R. pts. 122 and 412.
   2.  a.  The person shall not stockpile the dry digestate within the following distances to a designated area unless the dry digestate is maintained in a manner that will not allow precipitation-induced runoff to drain from the dry digestate to the designated area:
   (1)  Four hundred feet from a designated area other than a high-quality water resource.
   (2)  Eight hundred feet from a high-quality water resource.
   b.  The person shall not stockpile dry digestate within two hundred feet from a terrace tile inlet or surface tile inlet unless the dry digestate is maintained in a manner that will not allow precipitation-induced runoff to drain from the dry digestate to the terrace tile inlet or surface tile inlet.
   c.  The person shall not stockpile dry digestate in a grassed waterway, where water pools on the soil surface, or in any location where surface water will enter the stockpiled dry digestate.
   d.  The person shall not stockpile dry digestate on land having a slope of more than three percent unless methods, structures, or practices are implemented to contain the stockpiled dry digestate, including but not limited to using hay bales, silt fences, temporary earthen berms, or other effective measures, and to prevent or diminish precipitation-induced runoff from the stockpiled dry digestate.
   3.  A person shall remove stockpiled dry digestate and apply it in the same manner as manure under subchapter III, including but not limited to section 459.311, within six months after the dry digestate is stockpiled.
    Sec. 27.  NEW SECTION.  459.736  Stockpiling dry digestate —— special requirements —— water quality.
   A person may stockpile dry digestate on karst terrain or in an alluvial aquifer in compliance with the following:
   1.  The person must stockpile the dry digestate at a location where there is a vertical separation distance of at least five feet between the bottom of the stockpiled dry digestate and the underlying limestone, dolomite, or other soluble rock in karst terrain or the underlying sand and gravel aquifer in an alluvial aquifer area.
   2.  The dry digestate must be stockpiled on reinforced concrete at least five inches thick.
    Sec. 28.  NEW SECTION.  459.737  Applying dry digestate on snow-covered or frozen ground —— water quality.
   A person may apply digestate on snow-covered or frozen ground, except to the extent otherwise provided by applicable requirements for manure in this chapter, including section 459.313A, or the national pollutant discharge elimination system pursuant to the federal Water Pollution Control Act, 33 U.S.C. ch. 26, as amended, and 40 C.F.R. pts. 122 and 412.
    Sec. 29.  NEW SECTION.  459.811  Anaerobic digester systems —— violations.
   A person who violates section 459.731 or 459.734 shall be subject to the same penalty as provided in section 459.602, and a person who violates any other provision of subchapter VII shall be subject to the same penalty as provided in section 459.603. Any civil penalty and interest on a civil penalty collected under this section shall be credited to the Iowa nutrient research fund created in section 466B.46.
    Sec. 30.  NEW SECTION.  459A.209  Digestate application supplement to nutrient management plan.
   If digestate is applied on land subject to a nutrient management plan pursuant to section 459A.208, the nutrient management plan must be attached with a digestate management supplement as provided in section 459.733.
    Sec. 31.  CODE EDITOR DIRECTIVES.
   1.  The Code editor is directed to create new parts in new subchapter VII of chapter 459 as follows:
   a.  Part 1 shall include sections 459.701 through 459.710.
   b.  Part 2 shall include sections 459.711 through 459.730.
   c.  Part 3 shall include sections 459.731 through 459.737.
   2.  The Code editor is directed to make the following transfers to new subchapter VIII of chapter 459:
   a.  Section 459.601 to section 459.801.
   b.  Section 459.602 to section 459.802.
   c.  Section 459.603 to section 459.803.
   d.  Section 459.604 to section 459.804.
   e.  Section 459.605 to section 459.805.
   3.  The Code editor is directed to correct internal references in the Code and in any enacted legislation as necessary due to enactment of this section.
    Sec. 32.  EFFECTIVE DATE.  This Act, being deemed of immediate importance, takes effect upon enactment.
    Sec. 33.  CONTINUED APPLICABILITY OF REGULATORY PRACTICE.
   1.  Notwithstanding the provisions of this Act, on and after the effective date of this Act the department of natural resources shall regulate activities related to the construction, expansion, and operation of anaerobic digester systems, including the storage and use of materials including manure and digester feedstock in the digestion process, the processing of digestates, and the storage and application of digestates, in substantially the same manner as the department regulated those activities on March 1, 2025.
   2.  This section is repealed on the publication date of the edition of the Iowa administrative bulletin that includes a statement by the director of the department of natural resources that all rules required to effectively administer and enforce the provisions of this Act have been adopted. The department shall forward a copy of the statement to the Iowa Code editor prior to its publication in the Iowa administrative bulletin.
EXPLANATION
The inclusion of this explanation does not constitute agreement with
the explanation’s substance by the members of the general assembly.
   GENERAL. This bill provides for the regulation of animal feeding operations by the department of natural resources (DNR), including the storage and application of manure originating from such operations (Code chapter 459). An animal feeding operation is an area or building in which agricultural animals (cattle, swine, horses, sheep, chickens, turkeys, or fish) are confined for 45 days or more in any 12-month period, and all associated structures used for the storage of manure. A confinement feeding operation is an animal feeding operation in which animals are confined to areas which are totally roofed. Another form of animal feeding operation is an open feedlot operation which confines animals without a roof or a partial roof regulated by DNR (Code chapter 459A) and a dry bedded confinement feeding operation which confines animals in so-called hooped buildings (Code chapter 459B).
   BACKGROUND —— REGULATORY REQUIREMENTS. Regulatory requirements that apply to an animal feeding operation include a number of requirements governing associated structures including a confinement building housing agricultural animals, and various types of structures storing manure which may be made of material like concrete (formed) or that are primarily earthen (unformed) and which may or may not be covered. The regulations apply to manure in both a solid and liquid state. The regulations also apply to certain manure storage structures, including a storage structure that is anaerobic, meaning liquid manure is stored in a manner that utilizes bacteria to break down organic matter in the absence of oxygen. This process creates a biogas which is a type of renewable fuel as well as a digestate which is a source of nutrients for application on cropland. Code chapter 459 includes a number of subchapters, including those that regulate air quality and water quality. In both cases, the regulations require separation distance requirements between an animal feeding operation structure, including a manure storage structure, and certain objects and locations. For purposes of air quality regulations, these objects or locations include a residence, commercial enterprise, a bona fide religious institution, an educational institution, a public use area, or a public road. Air quality regulations impose greater separation distance requirements based on the date of initial construction and size of the confinement feeding operation. Air quality regulations also impose separation distance requirements between those locations where manure is applied or stockpiled and those same objects or locations. Water quality regulations include requirements for the issuance of construction permits, and construction design standards for manure storage structures. Water quality requirements also impose separation distances between animal feeding operation structures or dry manure stockpiles and certain water sources. A person applying manure originating from an animal feeding operation must file a plan with DNR that demonstrates how manure is to be applied in a manner that preserves water quality. For confinement feeding operations, the plan is referred to as a manure management plan (MMP) and for open feedlots the plan is referred to as a nutrient management plan (NMP).
   BACKGROUND —— CIVIL PENALTIES. A person who violates an air quality regulation or water quality regulation is subject to a civil penalty based on a schedule established by DNR rule. The civil penalty cannot exceed $10,000 per violation. The civil penalty for a water quality violation may also be subject to a judicial civil penalty not to exceed $5,000 for each day of such violation.
   BILL’S PROVISIONS —— GENERAL. The bill provides for the regulation of an anaerobic digester system which must include a digester processing structure that primarily processes manure but may also process other organic feedstocks, referred to as digester feedstock. The structure is used to produce a biogas which is a source of renewable fuel and a digestate which is a nutrient-rich material that may be applied to cropland in a dry or liquid state.
   BILL’S PROVISIONS —— ANAEROBIC DIGESTER SYSTEM. An anaerobic digester system is comprised of three steps. The first step involves the storing of organic material (manure and other organic feedstock) in a dry or liquid state awaiting digestion. Manure is stored in a manure storage structure unless it is dry and temporarily stored as a stockpile. Liquid digester feedstock is stored in a digester feedstock storage structure. All nonfarm digester feedstock must be stored in a digester feedstock storage structure. The second step involves digesting the organic material in a structure designed for that purpose. The third step involves storing and applying the processed organic material referred to as digestate. Dry digestate may be stockpiled and liquid digestate must be contained in a liquid digestate storage structure. The scope of the bill is limited to the on-farm construction, including expansion, of these structures, the on-farm use of stockpiles, and the on-farm application of digestates.
   BILL’S PROVISIONS —— TERMINOLOGY. The bill provides that an anaerobic digester system must be identified with an animal feeding operation. Identification occurs only if the anaerobic digester system and the animal feeding operation are either (1) under common ownership or management or (2) adjacent. In order for an enforcement action to proceed against the anaerobic digester system and its identified animal feeding operation for the same violation, the anaerobic digester system and the identified animal feeding operation must be under common ownership or management and be adjacent. Any reference in the bill to a digester structure means a covered digester feedstock storage structure, a covered digester processing structure, or a covered liquid digestate storage structure. Any reference to a digester stockpile refers to a dry digester feedstock stockpile or a dry digestate stockpile. Any reference to manure includes manure stored and discharged from a confinement feeding operation and effluent stored and discharged from an open feeding operation structure. A digester feedstock or digestate is classified as dry only if digester feedstock or digestate does not flow perceptibly under pressure, is not capable of being transported through a mechanical pumping device designed to move a liquid, and consists of molecules that do not flow freely among themselves. A digester processing structure must process manure as its primary source. A digestate is not to be regulated as manure, unless it is combined with manure.
   BILL’S PROVISIONS —— CONSTRUCTION OF STRUCTURES. The bill provides that a construction permit must be issued by DNR prior to the construction of a digester structure. The requirements are based on construction permit requirements for manure storage structures. The application must include an engineering report, construction plans, and specifications prepared by a professional engineer or the natural resources conservation service of the United States department of agriculture. An application for a digester feedstock storage structure must include information regarding its capacity and the digester feedstock to be stored. An application for the digester processing structure must include information regarding the ownership or management of its identified animal feeding operation, and the legal relationship between the two entities. It must also include information regarding how digestate is to be applied, and how records are to be maintained for DNR inspection. The bill also provides for construction design standards for a formed or unformed digester structure. The construction design standards must be based on uniform standards such as available standards promulgated by ASTM (American society for testing and materials) international. The design standards for unformed digester feedstock storage structures must account for the use of linings and erosion controls.
   BILL’S PROVISIONS —— AIR QUALITY —— SEPARATION DISTANCE REQUIREMENTS. The bill provides separation distance requirements as part of air quality and water quality standards. For air quality standards, the separation distance requirements assume the anaerobic digester system and the identified confinement feeding operation are part of a single confinement feeding operation. The separation distance is determined according to the date that the digester structure was constructed or expanded subject to provisions allowing the expansion of prior constructed confinement feeding operations and exceptions to those separation distance requirements.
   BILL’S PROVISIONS —— WATER QUALITY —— MANURE MANAGEMENT.  The bill provides that if digestate is applied on land subject to an MMP or NMP, such plan must be attached with a second document referred to as a digestate management supplement. The digestate management supplement must include information necessary to determine the land area required for the application of the digestate and the nutrient concentrations of the digestate.
   BILL’S PROVISIONS —— WATER QUALITY —— SEPARATION DISTANCE REQUIREMENTS. The bill provides that the separation distance requirements and exceptions to those separation distance requirements that apply to a confinement feeding operation structure and an object or location also apply to a digester structure and that same object or location. The bill allows a person to stockpile dry digester feedstocks or dry digestate in the same manner as manure, subject to the same separation distance requirements as manure. The bill requires that a person must remove stockpiled dry digestate and apply it in the same manner as manure.
   BILL’S PROVISIONS —— WATER QUALITY —— SPECIAL REQUIREMENTS.  The bill includes special requirements for stockpiling dry digestate on certain karst terrain that are the same as requirements for stockpiling dry manure. The bill also provides for applying dry digestate on snow-covered or frozen ground in compliance with state and federal water quality standards.
   BILL’S PROVISIONS —— CIVIL PENALTIES. The bill’s provisions that require separation distances between a digester structure or a digester stockpile and a residence, commercial enterprise, bona fide religious institution, or educational institution are subject to a civil penalty for a violation of air quality regulations. All other provisions of the bill are subject to a civil penalty for a violation of water quality regulations.
   BILL’S PROVISIONS —— EFFECTIVE DATE. The bill takes effect upon enactment.
   BILL’S PROVISIONS —— APPLICABILITY OF REGULATORY PRACTICE.  The bill requires DNR to regulate activities related to the construction, expansion, and operation of anaerobic digester systems in substantially the same manner DNR regulated those activities on March 1, 2025, until the director of DNR publishes a statement in the Iowa administrative bulletin stating that all rules required to effectively administer and enforce the provisions of the bill have been adopted.