House Study Bill 301 - Introduced HOUSE FILE _____ BY (PROPOSED COMMITTEE ON AGRICULTURE BILL BY CHAIRPERSON SEXTON) A BILL FOR An Act relating to animal feeding operations, by providing for 1 the regulation of anaerobic digester systems, providing 2 fees, making penalties applicable, and including effective 3 date and applicability provisions. 4 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 5 TLSB 2913YC (4) 91 da/ns

H.F. _____ Section 1. Section 459.102, subsection 2, Code 2025, is 1 amended by striking the subsection. 2 Sec. 2. NEW SECTION . 459.104 Purpose. 3 The purpose of this chapter, together with chapters 459A 4 and 459B, is to regulate animal agriculture, including but not 5 limited to the storage, application, and processing of organic 6 materials, including manure, originating from animal feeding 7 operations. 8 Sec. 3. Section 459.201, Code 2025, is amended by adding the 9 following new subsection: 10 NEW SUBSECTION . 6. “Anaerobic digester system” means the 11 same as defined in section 459.701. 12 Sec. 4. NEW SECTION . 459.701 Definitions. 13 For purposes of this subchapter, unless the context 14 otherwise requires: 15 1. a. “Anaerobic digester system” means a digestate 16 processing structure to effectuate the digestion process. 17 b. “Anaerobic digester system” may also include any of the 18 following: 19 (1) A dry digester feedstock stockpile. 20 (2) A digester feedstock storage structure. 21 (3) A dry digestate stockpile. 22 (4) A liquid digestate storage structure. 23 (5) Other related structures, pipes, and equipment. 24 2. “Digestate” means the dry or liquid nutrient-rich 25 material that remains after the digestion process is 26 effectuated. 27 3. “Digestate processing structure” means a structure that 28 effectuates the digestion process. 29 4. a. “Digester feedstock” means organic material, other 30 than manure, derived from an on-farm source or nonfarm source 31 that is used to effectuate the digestion process as part of an 32 anaerobic digester system. 33 b. “Digester feedstock” includes the following: 34 (1) Dry digester feedstock. 35 -1- LSB 2913YC (4) 91 da/ns 1/ 23

H.F. _____ (2) Liquid digester feedstock. 1 5. “Digester feedstock stockpile” means digester feedstock 2 stored outside a digester structure. 3 6. “Digester feedstock storage structure” means a structure 4 used to store digester feedstock before undergoing a digestion 5 process as effectuated by an anaerobic digester system. 6 7. “Digester stockpile” means any of the following: 7 a. A dry digester feedstock stockpile. 8 b. A dry digestate stockpile. 9 8. “Digester structure” means any of the following: 10 a. A digester feedstock storage structure. 11 b. A digestate processing structure. 12 c. A liquid digestate storage structure. 13 9. “Digestion process” means primarily processing manure, 14 and may include processing digester feedstock, by employing 15 environmental conditions including bacteria to break down its 16 organic matter in the absence of oxygen, if used for producing, 17 collecting, and utilizing a biogas and digestate. 18 10. “Dry digestate” means digestate that meets the dry 19 classification requirements in section 459.707. 20 11. “Dry digestate stockpile” means dry digestate stored 21 outside an anaerobic digester system structure. 22 12. “Dry digester feedstock” means a digester feedstock that 23 meets the dry classification requirements in section 459.707. 24 13. “Dry digester feedstock stockpile” means dry feedstock 25 stored outside an anaerobic digester system structure. 26 14. “Liquid digestate” means digestate other than dry 27 digestate. 28 15. “Liquid digestate storage structure” means a structure 29 used to store liquid digestate. 30 16. “Liquid digester feedstock” means digester feedstock 31 other than dry digester feedstock. 32 17. “Nonfarm” means real property that is not on-farm. 33 18. “On-farm” means real property used to produce raw 34 agricultural commodities, including agricultural animals; crops 35 -2- LSB 2913YC (4) 91 da/ns 2/ 23

H.F. _____ such as corn, grain sorghum, oats, soybeans, or wheat; hay or 1 straw; milk; or wool. 2 Sec. 5. NEW SECTION . 459.702 Scope. 3 1. This subchapter is limited to the regulation of on-farm 4 construction, including expansion, of structures, the on-farm 5 use of stockpiles, and the on-farm application of digestates. 6 2. If there is a conflict between the provisions of this 7 subchapter and another subchapter, the provisions of this 8 subchapter shall prevail. 9 3. Rules adopted to implement this subchapter are not 10 subject to section 17A.7, subsection 2 or 3. 11 Sec. 6. NEW SECTION . 459.703 General authority —— 12 commission. 13 The department shall establish by rule adopted pursuant 14 to chapter 17A requirements relating to the construction, 15 including expansion, or operation of on-farm anaerobic digester 16 systems, including on-farm digester structures, on-farm 17 digester stockpiles, and the on-farm application of digestates 18 produced from on-farm anaerobic digester systems. 19 Sec. 7. NEW SECTION . 459.704 Minimum requirements for 20 manure control. 21 The delivery of manure by a confinement feeding operation 22 for processing by an anaerobic digester system in a manner that 23 complies with this subchapter constitutes manure disposal as 24 required in section 459.311. 25 Sec. 8. NEW SECTION . 459.705 Special terms —— control of 26 animal feeding operations and anaerobic digester systems. 27 1. a. An anaerobic digester system must be identified with 28 an animal feeding operation. 29 b. An anaerobic digester system receiving manure from an 30 animal feeding operation is identified with the animal feeding 31 operation if the anaerobic digester system and the animal 32 feeding operation are either of the following: 33 (1) Under common ownership or management. 34 (2) Adjacent. 35 -3- LSB 2913YC (4) 91 da/ns 3/ 23

H.F. _____ c. An anaerobic digester system and an animal feeding 1 operation shall be subject to an enforcement action arising 2 from the facts of a violation only if the anaerobic digester 3 system is identified with the animal feeding operation pursuant 4 to both paragraph “b” , subparagraphs (1) and (2). 5 2. An animal feeding operation and an anaerobic digester 6 system are deemed adjacent if the closest animal feeding 7 operation structure is separated by less than one thousand two 8 hundred fifty feet from the closest anaerobic digester system 9 structure. 10 3. a. An animal feeding operation and the anaerobic 11 digester system are under common ownership if a person holds 12 an interest in the animal feeding operation and the anaerobic 13 digester system as any of the following: 14 (1) A sole proprietor. 15 (2) A joint tenant or tenant in common. 16 (3) A holder of a majority equity interest in a business 17 association as defined in section 202B.102, including but not 18 limited to as a shareholder, partner, member, or beneficiary. 19 b. An interest in the animal feeding operation and the 20 anaerobic digester system which is held directly or indirectly 21 by the person’s spouse or dependent child shall be attributed 22 to the person. 23 4. An animal feeding operation and an anaerobic digester 24 system are under common management if a person has significant 25 control of the management of the day-to-day operations of the 26 animal feeding operation and the anaerobic digester system. 27 Common management does not include control over a contract 28 livestock facility by a contractor, as those terms are defined 29 in section 202.1. 30 Sec. 9. NEW SECTION . 459.706 Special terms —— animal 31 feeding operation structures and digester structures. 32 1. A digester structure that is used as a manure storage 33 structure and that is not subject to a digestion process shall 34 be conclusively presumed to be a manure storage structure. 35 -4- LSB 2913YC (4) 91 da/ns 4/ 23

H.F. _____ 2. Any digester structure must be covered. Notwithstanding 1 section 459.102, subsection 19, a cover must include organic or 2 inorganic material placed upon a digester structure as provided 3 by rules adopted by the department. 4 3. A digester structure is constructed when any of the 5 following occur: 6 a. Excavation is conducted for a proposed digester structure 7 or proposed expansion of an existing digester structure, 8 including excavation for the footings of the digester 9 structure. 10 b. Forms for concrete are installed for a proposed digester 11 structure or the proposed expansion of an existing digester 12 structure. 13 c. Piping for the movement of manure is installed between 14 an animal feeding operation structure and a digester structure 15 proposed to be constructed or expanded. 16 4. a. This subchapter does not apply to a manure storage 17 structure regardless of whether manure originating from the 18 manure storage structure is received by a digestate processing 19 structure. 20 b. This subchapter does not apply to a settled open feedlot 21 effluent basin or alternative technology system regulated 22 under chapter 459A regardless of whether effluent originating 23 from the settled open feedlot effluent basin or alternative 24 technology system is received by a digestate processing 25 structure. 26 c. Placing a cover over a manure storage structure does not 27 constitute construction or expansion of a digester structure. 28 5. The owner of a digester structure that discontinues the 29 use of an anaerobic digester system shall remove all digestate 30 from a digester structure that is part of the anaerobic 31 digester system within six months following the date that the 32 anaerobic digester system is discontinued. 33 Sec. 10. NEW SECTION . 459.707 Special terms —— manure and 34 digestates. 35 -5- LSB 2913YC (4) 91 da/ns 5/ 23

H.F. _____ For purposes of this subchapter, all of the following apply: 1 1. The term “manure” includes “effluent” as defined in 2 section 459A.102. 3 2. A digester feedstock or digestate is classified as dry 4 only if all of the following apply: 5 a. The digester feedstock or digestate does not flow 6 perceptibly under pressure. 7 b. The digester feedstock or digestate is not capable of 8 being transported through a mechanical pumping device designed 9 to move a liquid. 10 c. The constituent molecules of the digester feedstock or 11 digestate do not flow freely among themselves but may show a 12 tendency to separate under stress. 13 3. A digestate processing structure is limited to 14 processing manure as its primary source. The digestate 15 processing structure may also process any of the following: 16 a. A quantity of digester feedstock as its secondary source. 17 b. An ancillary quantity of an inorganic material, including 18 a catalyst, used to best effectuate the digestion process. 19 The department shall adopt rules listing allowable materials 20 by name and, if necessary, the maximum allowed quantity. 21 The department may also approve the allowable materials and 22 quantity upon request of the owner or manager of the anaerobic 23 digester system. The allowed inorganic material allowed over 24 time must be nonhazardous to the public and environment. 25 4. a. Except as provided in paragraph “b” , a digestate 26 shall not be regulated as manure. 27 b. If a digestate is removed from a digestate processing 28 structure and at any time is combined with manure, the 29 digestate shall be regulated as manure under this chapter, 30 chapter 459A, and chapter 459B, as applicable. 31 Sec. 11. NEW SECTION . 459.711 Digester structures —— 32 construction permits. 33 1. a. Except as provided in paragraph “b” , a construction 34 permit must be issued prior to the construction of a digester 35 -6- LSB 2913YC (4) 91 da/ns 6/ 23

H.F. _____ structure, as provided by rules adopted by the department 1 pursuant to this subchapter. 2 b. A person is not required to be issued a permit to 3 construct a digester structure if the anaerobic digester system 4 is owned by a research college conducting research activities 5 as provided in section 459.318 or 459A.105. 6 2. The department’s decision to approve a permit for 7 the construction of a digester structure shall be based on 8 whether the application is submitted according to procedures 9 required by the department and the application meets standards 10 established by this subchapter and rules adopted by the 11 department. 12 3. Construction of a digester structure shall not begin 13 until the department first approves the application and issues 14 a construction permit. 15 4. The applicant for a construction permit must be the owner 16 of the anaerobic digester system and the person responsible 17 for the construction and operation of the anaerobic digester 18 system. 19 5. The department shall approve a valid application for 20 a construction permit regardless of whether the applicant is 21 required to be issued a construction permit. 22 6. Prior to submitting an application for a construction 23 permit, the applicant may submit a conceptual design and site 24 investigation report to the department for review and comment. 25 7. An application for a construction permit must include all 26 of the following information: 27 a. The name and contact information of the owner and manager 28 of the anaerobic digester system identified with an animal 29 feeding operation under section 459.705 and the owner and 30 manager of the identified animal feeding operation. 31 b. Whether the anaerobic digester system is identified 32 with an animal feeding operation pursuant to section 459.705, 33 subsection 1. 34 c. Whether the digester structure is formed or unformed. 35 -7- LSB 2913YC (4) 91 da/ns 7/ 23

H.F. _____ d. Information including but not limited to maps, drawings, 1 and aerial photos that clearly show the location of all of the 2 following: 3 (1) The location of the proposed or existing anaerobic 4 digester system, and any other proposed or existing digester 5 structures or digester stockpiles. 6 (2) The location of any proposed or existing animal feeding 7 operation structure that is part of the identified animal 8 feeding operation. 9 (3) A public water supply system as defined in section 10 455B.171 or a drinking water well which is located within a 11 distance from the proposed digester structure as prescribed by 12 rules adopted by the department. 13 e. An engineering report, construction plans, and 14 specifications prepared by a professional engineer or the 15 natural resources conservation service of the United States 16 department of agriculture. The professional engineer must 17 certify that the construction of the digester structure 18 complies with the construction design standards required in 19 this subchapter. 20 Sec. 12. NEW SECTION . 459.712 Digester feedstock storage 21 structure —— required storage. 22 1. A person processing a digester feedstock must store 23 the liquid digester feedstock in a permitted covered digester 24 feedstock storage structure if the digester feedstock is any 25 of the following: 26 a. Nonfarm digester feedstock. 27 b. On-farm digester feedstock that is derived from a 28 decomposing plant. 29 2. A person may store dry digester feedstock in a dry 30 digester feedstock stockpile. 31 3. A person may store digester feedstock in a permitted 32 covered manure storage structure according to rules adopted by 33 the department. 34 Sec. 13. NEW SECTION . 459.713 Digester feedstock storage 35 -8- LSB 2913YC (4) 91 da/ns 8/ 23

H.F. _____ structure —— construction permit. 1 1. In addition to the applicable requirements in section 2 459.711, an application for a permit to construct a digester 3 feedstock storage structure must include all of the following 4 information: 5 a. A description of the type and amount of digester 6 feedstock to be stored in the digester feedstock storage 7 structure. 8 b. A description of the digestate processing structure used 9 to process the received digester feedstock and the amount of 10 digester feedstock that may be stored. 11 c. Any other information determined relevant by the 12 department as provided by rules adopted by the department. 13 2. The applicant must submit a construction permit 14 application fee as part of the application. The fee shall not 15 exceed two hundred fifty dollars. Moneys collected by the 16 department from the payment of fees under this section shall be 17 deposited in the general fund of the state. 18 Sec. 14. NEW SECTION . 459.714 Digestate processing 19 structure —— construction permit. 20 1. In addition to the applicable requirements in section 21 459.711, an application for a permit to construct a digestate 22 processing structure must include a written operation plan 23 containing all of the following: 24 a. Unless an animal feeding operation and anaerobic 25 digester system are under both common ownership and management 26 as described in section 459.705, a description of the 27 responsibilities of each of the following: 28 (1) For an animal feeding operation with which the anaerobic 29 digester system is identified under section 459.705, the terms 30 of an agreement to deliver manure to the anaerobic digester 31 system. 32 (2) For an anaerobic digester system, the terms of an 33 agreement to receive manure from the animal feeding operation 34 with which the anaerobic digester system is identified under 35 -9- LSB 2913YC (4) 91 da/ns 9/ 23

H.F. _____ section 459.705. 1 b. (1) If digestate is to be applied to land subject to 2 a manure management plan, a copy of the plan and digestate 3 management supplement. 4 (2) If digestate is to be applied to land subject to a 5 nutrient management plan, a copy of the plan and digestate 6 management supplement. 7 c. Any other information determined relevant by the 8 department as provided by rules adopted by the department. 9 2. The application must include a plan for maintaining 10 records regarding all of the following as provided by rules 11 adopted by the department: 12 a. (1) The manure, digester feedstock, and inorganic 13 materials subject to processing. 14 (2) The digestate and biogas processed. 15 b. Procedures for the departmental inspection of the 16 records. 17 3. The applicant must submit a construction permit 18 application fee as part of the application. The fee shall not 19 exceed two hundred fifty dollars. Moneys collected by the 20 department from the payment of fees under this section shall be 21 deposited in the general fund of the state. 22 Sec. 15. NEW SECTION . 459.715 Construction design standards 23 —— formed digester structures. 24 1. The department shall adopt rules establishing 25 construction design standards for a formed digester structure, 26 including a formed digester feedstock storage structure, a 27 formed digestate processing structure, or a formed liquid 28 digestate storage structure. The department may adopt rules 29 providing separate regulations for each type of formed digester 30 structure. 31 2. The construction design standards shall be based, to 32 every extent possible, upon uniform standards such as available 33 standards promulgated by ASTM (American society for testing and 34 materials) international. 35 -10- LSB 2913YC (4) 91 da/ns 10/ 23

H.F. _____ 3. The construction design standards for concrete must 1 provide for all of the following: 2 a. The concrete’s minimum compressive strength calculated on 3 a pounds-per-square-inch basis. 4 b. The use of reinforcement, including but not limited to 5 the grade, amount, and location of steel rebar, fiberglass, or 6 similar materials set in the concrete, or the use of exterior 7 braces to support joints. 8 c. The depth of footings. 9 d. The thickness of the footings, the floor, and walls. 10 4. The department shall adopt rules providing for upgraded 11 construction design standards for a formed digester structure 12 constructed on karst terrain or an area that drains into a 13 known sinkhole as is necessary to ensure that a formed digester 14 structure does not pollute groundwater sources. 15 Sec. 16. NEW SECTION . 459.716 Construction design standards 16 —— unformed digester structures —— inspections. 17 1. The department shall adopt rules establishing 18 construction design standards for an unformed digester 19 structure, including an unformed digester feedstock storage 20 structure, an unformed digestate processing structure, or an 21 unformed liquid digestate storage structure. The department 22 may adopt rules providing separate regulations for each type 23 of digester structure. 24 2. The construction design standards for an unformed 25 digester structure, established by rules adopted by the 26 department, must account for special design characteristics 27 applicable to an unformed digester feedstock storage structure, 28 an unformed digestate processing structure, or an unformed 29 liquid digestate storage structure. The construction design 30 standard must account for all of the following: 31 a. The lining of the unformed digester structure must be 32 constructed with materials deemed suitable by rules adopted by 33 the department in order to minimize seepage loss through the 34 lining’s seal. 35 -11- LSB 2913YC (4) 91 da/ns 11/ 23

H.F. _____ b. The structure must be constructed with materials deemed 1 suitable by rules adopted by the department in order to control 2 erosion on the unformed digester structure’s berm, side slopes, 3 and base. 4 c. The unformed digester structure must be constructed to 5 minimize seepage into near-surface water sources. 6 d. The top of the floor of the unformed digester structure’s 7 liner must be above the groundwater table as determined by 8 the department. If the groundwater table is less than two 9 feet below the top of the liner’s floor, the unformed digester 10 structure shall be installed with a synthetic liner. If 11 the department allows an unformed digester structure to be 12 located at a site by permanently lowering the groundwater 13 table, the department shall confirm that the proposed system 14 meets standards necessary to ensure that the unformed digester 15 structure does not pollute groundwater sources. If the 16 department allows drain tile installed to lower a groundwater 17 table to remain where located, the department shall require 18 that a device be installed to allow monitoring of the water in 19 the drain tile line. The department shall also require the 20 installation of a device to allow shutoff of the drain tile 21 lines, if the drain tile lines do not have a surface outlet 22 accessible on the property where the structure is located. 23 3. a. The department shall conduct a routine inspection 24 of each unformed digester structure at least once each year. 25 A routine inspection conducted pursuant to this paragraph 26 shall be limited to a visual inspection of the site where the 27 unformed digester structure is located. The department shall 28 inspect the site at a reasonable time after providing at least 29 twenty-four hours’ notice to the person owning or managing the 30 anaerobic digester system. The visual inspection must include 31 but is not limited to determining whether any of the following 32 exist: 33 (1) An adequate freeboard level. 34 (2) The seepage of a liquid from the unformed digester 35 -12- LSB 2913YC (4) 91 da/ns 12/ 23

H.F. _____ structure. 1 (3) Erosion. 2 (4) Inadequate cover. 3 (5) The presence of an opening allowing liquid to drain from 4 the unformed digester structure. 5 b. Paragraph “a” does not restrict the department from 6 conducting an inspection of an anaerobic digester system which 7 is not routine. 8 Sec. 17. NEW SECTION . 459.717 Special construction 9 restrictions —— unformed digester structures. 10 1. a. Except as provided in paragraph “b” , a person shall 11 not construct an unformed digester structure on karst terrain. 12 b. A person may construct an unformed digester structure 13 on karst terrain if there is a twenty-five-foot vertical 14 separation distance between the bottom of the unformed digester 15 structure and underlying limestone, dolomite, or other soluble 16 rock. 17 2. A person shall not construct an unformed digester 18 structure in an area that drains into a known sinkhole. 19 3. A person shall not construct or expand an unformed manure 20 storage structure within an agricultural drainage well area as 21 provided in section 460.205. 22 Sec. 18. NEW SECTION . 459.718 Distance requirements for 23 digester structures —— air quality. 24 A separation distance requirement applies between a digester 25 structure that is part of the anaerobic digester system and an 26 object or location described in section 459.202 as follows: 27 1. The anaerobic digester system and its identified 28 confinement feeding operation as provided in section 459.705 29 shall be deemed to be a single confinement feeding operation, 30 and the digester structure shall be deemed to be a manure 31 storage structure that is part of the identified confinement 32 feeding operation. 33 2. The separation distance shall be determined according 34 to the date that the digester structure was constructed or 35 -13- LSB 2913YC (4) 91 da/ns 13/ 23

H.F. _____ expanded according to the relevant table in section 459.202, 1 subsections 1 through 5, subject to section 459.202, subsection 2 6, and subject to provisions allowing the expansion of prior 3 constructed confinement feeding operations under section 4 459.203 and exceptions to separation distance requirements in 5 section 459.205. 6 Sec. 19. NEW SECTION . 459.719 Distance requirements for 7 digester structures —— water quality. 8 The same separation distance requirements and exceptions 9 to those separation distance requirements that apply to a 10 confinement feeding operation structure and an object or 11 location for which separation is required in section 459.310 12 apply to a digester structure and that same object or location. 13 Sec. 20. NEW SECTION . 459.721 Digestate management. 14 If digestate is applied on land subject to a manure 15 management plan pursuant to section 459.312 or a nutrient 16 management plan pursuant to section 459A.208, the manure 17 management plan or nutrient management plan must be attached 18 with a digestate management supplement. The digestate 19 application supplement must include all of the following: 20 1. Calculations necessary to determine the land area 21 required for the application of the digestate and manure from a 22 confinement feeding operation or effluent from an open feedlot 23 operation. 24 2. The nutrient concentrations of the digestate. 25 Sec. 21. NEW SECTION . 459.722 Stockpiling dry digester 26 feedstock or dry digestate. 27 1. A person may stockpile dry digester feedstocks or dry 28 digestate subject to this section. 29 2. a. Except as provided in paragraph “b” , the person shall 30 not stockpile dry digester feedstock or dry digestate within 31 one thousand two hundred fifty feet from a residence not owned 32 by the titleholder of the land, a commercial enterprise, a bona 33 fide religious institution, an educational institution, or a 34 public use area. 35 -14- LSB 2913YC (4) 91 da/ns 14/ 23

H.F. _____ b. The person may stockpile dry digester feedstock or 1 dry digestate within a separation distance required between 2 the stockpiled dry digestate and an object or location for 3 which separation is required under paragraph “a” , if the 4 titleholder of the land benefiting from the separation distance 5 requirement executes a written waiver with the titleholder of 6 the land where the dry digester feedstock or dry digestate is 7 stockpiled. 8 Sec. 22. NEW SECTION . 459.723 Stockpiling dry digestate. 9 A person may stockpile dry digestate subject to this 10 section. 11 1. The person stockpiling dry digestate shall comply with 12 applicable requirements of the national pollutant discharge 13 elimination system pursuant to the federal Water Pollution 14 Control Act, 33 U.S.C. ch. 26, as amended, and 40 C.F.R. pts. 15 122 and 412. 16 2. a. The person shall not stockpile the dry digestate 17 within the following distances to a designated area unless the 18 dry digestate is maintained in a manner that will not allow 19 precipitation-induced runoff to drain from the dry digestate 20 to the designated area: 21 (1) Four hundred feet from a designated area other than a 22 high-quality water resource. 23 (2) Eight hundred feet from a high-quality water resource. 24 b. The person shall not stockpile dry digestate within two 25 hundred feet from a terrace tile inlet or surface tile inlet 26 unless the dry digestate is maintained in a manner that will 27 not allow precipitation-induced runoff to drain from the dry 28 digestate to the terrace tile inlet or surface tile inlet. 29 c. The person shall not stockpile dry digestate in a grassed 30 waterway, where water pools on the soil surface, or in any 31 location where surface water will enter the stockpiled dry 32 digestate. 33 d. The person shall not stockpile dry digestate on land 34 having a slope of more than three percent unless methods, 35 -15- LSB 2913YC (4) 91 da/ns 15/ 23

H.F. _____ structures, or practices are implemented to contain the 1 stockpiled dry digestate, including but not limited to 2 using hay bales, silt fences, temporary earthen berms, 3 or other effective measures, and to prevent or diminish 4 precipitation-induced runoff from the stockpiled dry digestate. 5 3. A person shall remove stockpiled dry digestate and apply 6 it in the same manner as manure under subchapter III, including 7 but not limited to section 459.311, within six months after the 8 dry digestate is stockpiled. 9 Sec. 23. NEW SECTION . 459.724 Stockpiling dry digestate 10 —— special requirements. 11 A person may stockpile dry digestate on karst terrain or in 12 an alluvial aquifer in compliance with the following: 13 1. The person must stockpile the dry digestate at a location 14 where there is a vertical separation distance of at least five 15 feet between the bottom of the stockpiled dry digestate and 16 the underlying limestone, dolomite, or other soluble rock in 17 karst terrain or the underlying sand and gravel aquifer in an 18 alluvial aquifer area. 19 2. The dry digestate must be stockpiled on reinforced 20 concrete at least five inches thick. 21 Sec. 24. NEW SECTION . 459.725 Applying dry digestate on 22 snow-covered or frozen ground. 23 A person may apply digestate on snow-covered or frozen 24 ground, except to the extent otherwise provided by applicable 25 requirements for manure in this chapter, including section 26 459.313A, or the national pollutant discharge elimination 27 system pursuant to the federal Water Pollution Control Act, 33 28 U.S.C. ch. 26, as amended, and 40 C.F.R. pts. 122 and 412. 29 Sec. 25. NEW SECTION . 459A.209 Digestate application 30 supplement to nutrient management plan. 31 If digestate is applied on land subject to a nutrient 32 management plan pursuant to section 459A.208, the nutrient 33 management plan must be attached with a digestate management 34 supplement as provided in section 459.721. 35 -16- LSB 2913YC (4) 91 da/ns 16/ 23

H.F. _____ Sec. 26. CODE EDITOR DIRECTIVE. 1 1. The Code editor is directed to create new parts in new 2 subchapter VII of chapter 459 as follows: 3 a. Part 1 shall include sections 459.701 through 459.710. 4 b. Part 2 shall include sections 459.711 through 459.720. 5 c. Part 3 shall include sections 459.721 through 459.725. 6 2. The Code editor is directed to correct internal 7 references in the Code and in any enacted legislation as 8 necessary due to enactment of this section. 9 Sec. 27. EFFECTIVE DATE. This Act, being deemed of 10 immediate importance, takes effect upon enactment. 11 Sec. 28. CONTINUED APPLICABILITY OF REGULATORY PRACTICE. 12 1. Notwithstanding the provisions of this Act, the 13 department of natural resources shall regulate activities 14 related to the construction, expansion, and operation of 15 anaerobic digester systems, including the storage and use 16 of materials in the digestion process, the processing of 17 digestates, and the storage and application of digestates, in 18 substantially the same manner as the department regulated those 19 activities on March 1, 2025. 20 2. This section is repealed on the publication date of 21 the edition of the Iowa administrative bulletin that includes 22 a statement by the director of the department of natural 23 resources that all rules required to effectively administer 24 and enforce the provisions of this Act have been adopted. The 25 department shall forward a copy of the statement to the Iowa 26 Code editor prior to its publication in the Iowa administrative 27 bulletin. 28 EXPLANATION 29 The inclusion of this explanation does not constitute agreement with 30 the explanation’s substance by the members of the general assembly. 31 GENERAL. This bill provides for the regulation of animal 32 feeding operations by the department of natural resources 33 (DNR), including the storage and application of manure 34 originating from such operations (Code chapter 459). An animal 35 -17- LSB 2913YC (4) 91 da/ns 17/ 23

H.F. _____ feeding operation is an area or building in which agricultural 1 animals (cattle, swine, horses, sheep, chickens, turkeys, or 2 fish) are confined for 45 days or more in any 12-month period, 3 and all associated structures used for the storage of manure. 4 A confinement feeding operation is an animal feeding operation 5 in which animals are confined to areas which are totally 6 roofed. Another form of animal feeding operation is an open 7 feedlot operation which confines animals without a roof or a 8 partial roof regulated by DNR (Code chapter 459A) and a dry 9 bedded confinement feeding operation which confines animals in 10 so-called hooped buildings (Code chapter 459B). 11 BACKGROUND —— REGULATORY REQUIREMENTS. Regulatory 12 requirements that apply to an animal feeding operation include 13 a number of requirements governing associated structures 14 including a confinement building housing agricultural animals, 15 and various types of structures storing manure which may be 16 made of material like concrete (formed) or that are primarily 17 earthen (unformed) and which may or may not be covered. The 18 regulations apply to manure in both a solid and liquid state. 19 The regulations also apply to certain manure storage structures 20 that are anaerobic in which liquid manure is stored in a manner 21 that utilizes bacteria to break down organic matter in the 22 absence of oxygen. This process creates a biogas which is 23 a type of renewable fuel as well as a digestate which is a 24 rich source of nutrients for application on cropland. Code 25 chapter 459 includes a number of subchapters, including those 26 that regulate air quality and water quality. In both cases, 27 the regulations require separation distance requirements 28 between an animal feeding operation structure, including a 29 manure storage structure, and certain objects and locations. 30 For purposes of air quality regulations, these objects or 31 locations include a residence, commercial enterprise, a bona 32 fide religious institution, an educational institution, or 33 public road. Air quality regulations also impose greater 34 separation distance requirements based on the date of initial 35 -18- LSB 2913YC (4) 91 da/ns 18/ 23

H.F. _____ construction and size of the confinement feeding operation. 1 Water quality regulations include requirements for the issuance 2 of construction permits, and construction design standards for 3 manure storage structures. Water quality requirements also 4 impose separation distances between animal feeding operation 5 structures or dry manure stockpiles and certain water sources. 6 A person applying manure originating from an animal feeding 7 operation must file a plan with DNR that demonstrates how 8 manure is to be applied in a manner that preserves water 9 quality. For confinement feeding operations, the plan is 10 referred to as a manure management plan (MMP) and for open 11 feedlots the plan is referred to as a nutrient management plan 12 (NMP). 13 BACKGROUND —— CIVIL PENALTIES. A person who violates an air 14 quality regulation or water quality regulation is subject to a 15 civil penalty based on a schedule established by DNR rule. The 16 civil penalty cannot exceed $10,000 per violation. The civil 17 penalty for a water quality violation may also be subject to 18 a judicial civil penalty not to exceed $5,000 for each day of 19 such violation. 20 BILL’S PROVISIONS —— GENERAL. The bill provides for the 21 regulation of an anaerobic digester system which must include a 22 digestate processing structure that primarily processes manure 23 but may also process other organic feedstocks, referred to as 24 digester feedstock. The structure is used to produce a biogas 25 which is a source of renewable fuel and a digestate which is a 26 nutrient-rich material that may be applied to cropland in a dry 27 or liquid state. 28 BILL’S PROVISIONS —— ANAEROBIC DIGESTER SYSTEM. An 29 anaerobic digester system is comprised of three steps. The 30 first step involves the storing of organic material (manure 31 and other organic feedstock) in a dry or liquid state awaiting 32 digestion. Manure is stored in a manure storage structure 33 unless it is dry and temporarily stored as a stockpile. Liquid 34 digester feedstock is stored in a digester feedstock storage 35 -19- LSB 2913YC (4) 91 da/ns 19/ 23

H.F. _____ structure. All nonfarm digester feedstock must be stored in a 1 digester feedstock storage structure. The second step involves 2 digesting the organic material in a structure designed for 3 that purpose. The third step involves storing and applying 4 the processed organic material referred to as digestate. Dry 5 digestate may be stockpiled and liquid digestate must be 6 contained in a liquid digestate storage structure. The scope 7 of the bill is limited to the on-farm construction, including 8 expansion, of these structures, the on-farm use of stockpiles, 9 and the on-farm application of digestates. 10 BILL’S PROVISIONS —— TERMINOLOGY. The bill provides that 11 an anaerobic digester system must be identified with an animal 12 feeding operation. Identification occurs only if the anaerobic 13 digester system and the animal feeding operation are either (1) 14 under common ownership or management or (2) adjacent. In order 15 for an enforcement action to proceed against the anaerobic 16 digester system and its identified animal feeding operation 17 for the same violation, the anaerobic digester system and 18 the identified animal feeding operation must be under common 19 ownership or management and be adjacent. Any reference in the 20 bill to a digester structure means a covered digester feedstock 21 storage structure, a covered digestate processing structure, or 22 a covered liquid digestate storage structure. Any reference 23 to a digester stockpile refers to a dry digester feedstock 24 stockpile or a dry digestate stockpile. Any reference to 25 manure includes manure stored and discharged from a confinement 26 feeding operation and effluent stored and discharged from an 27 open feeding operation structure. A digester feedstock or 28 digestate is classified as dry only if digester feedstock or 29 digestate does not flow perceptibly under pressure, is not 30 capable of being transported through a mechanical pumping 31 device designed to move a liquid, and consists of molecules 32 that do not flow freely among themselves. A digestate 33 processing structure must process manure as its primary source. 34 A digestate is not to be regulated as manure, unless it is 35 -20- LSB 2913YC (4) 91 da/ns 20/ 23