House Study Bill 323 - Introduced HOUSE FILE _____ BY (PROPOSED COMMITTEE ON WAYS AND MEANS BILL BY CHAIRPERSON KAUFMANN) 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 2959YC (3) 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. (1) “Anaerobic digester system” means a digester 16 processing structure to effectuate the digestion process. 17 (2) “Anaerobic digester system” may also include any of the 18 following: 19 (a) A dry digester feedstock stockpile. 20 (b) A digester feedstock storage structure. 21 (c) A dry digestate stockpile. 22 (d) A liquid digestate storage structure. 23 b. “Anaerobic digester system” includes other related 24 structures, pipes, and equipment used in the digestion process. 25 2. “Digestate” means the dry or liquid nutrient-rich 26 material that remains after the digestion process is 27 effectuated. 28 3. a. “Digester feedstock” means organic material, other 29 than manure, derived from an on-farm source or nonfarm source 30 that is used to effectuate the digestion process as part of an 31 anaerobic digester system. 32 b. “Digester feedstock” includes the following: 33 (1) Dry digester feedstock. 34 (2) Liquid digester feedstock. 35 -1- LSB 2959YC (3) 91 da/ns 1/ 25

H.F. _____ 4. “Digester feedstock storage structure” means a structure 1 used to store digester feedstock before undergoing a digestion 2 process as effectuated by an anaerobic digester system. 3 5. “Digester processing structure” means a structure that 4 effectuates the digestion process. 5 6. “Digester stockpile” means any of the following: 6 a. A dry digester feedstock stockpile. 7 b. A dry digestate stockpile. 8 7. “Digester structure” means any of the following: 9 a. A digester feedstock storage structure. 10 b. A digester processing structure. 11 c. A liquid digestate storage structure. 12 8. “Digestion process” means primarily processing manure, 13 and may include processing digester feedstock, by employing 14 environmental conditions including bacteria to break down its 15 organic matter in the absence of oxygen, if used for producing, 16 collecting, and utilizing a biogas and digestate. 17 9. “Dry digestate” means digestate that meets the dry 18 classification requirements in section 459.707. 19 10. “Dry digestate stockpile” means dry digestate stored 20 outside a digester structure. 21 11. “Dry digester feedstock” means a digester feedstock that 22 meets the dry classification requirements in section 459.707. 23 12. “Dry digester feedstock stockpile” means dry digester 24 feedstock stored outside a digester structure. 25 13. “Liquid digestate” means digestate other than dry 26 digestate. 27 14. “Liquid digestate storage structure” means a structure 28 used to store liquid digestate. 29 15. “Liquid digester feedstock” means digester feedstock 30 other than dry digester feedstock. 31 16. “Nonfarm” means real property that is not on-farm. 32 17. “On-farm” means real property used to produce raw 33 agricultural commodities, including agricultural animals; crops 34 such as corn, grain sorghum, oats, soybeans, or wheat; hay or 35 -2- LSB 2959YC (3) 91 da/ns 2/ 25

H.F. _____ straw; milk; or wool. 1 Sec. 5. NEW SECTION . 459.702 Scope. 2 1. This subchapter is limited to the regulation of on-farm 3 construction, including expansion, of structures, the on-farm 4 use of stockpiles, and the on-farm application of digestates. 5 2. If there is a conflict between the provisions of this 6 subchapter and another subchapter, the provisions of this 7 subchapter shall prevail. 8 3. Rules adopted to implement this subchapter are not 9 subject to section 17A.7, subsection 2 or 3. 10 Sec. 6. NEW SECTION . 459.703 Administration —— departmental 11 authority. 12 1. The department shall establish by rule adopted pursuant 13 to chapter 17A requirements relating to the construction, 14 including expansion, or operation of on-farm anaerobic digester 15 systems, including on-farm digester structures, on-farm 16 digester stockpiles, and the on-farm application of digestates 17 produced from on-farm anaerobic digester systems. 18 2. The department shall adopt and promulgate forms required 19 to be completed in order to comply with this subchapter 20 including forms for documents that the department shall make 21 available on the internet. 22 3. The department may provide separate application forms 23 for constructing each type of digester structure regulated 24 under this subchapter, including a digester feedstock storage 25 structure, a digester processing structure, and a liquid 26 digestate storage structure. For administrative efficiency, 27 the department shall provide a single application form that 28 combines the three applications together. An application fee 29 shall be based on the number of digester structures to be 30 constructed or expanded as stated in an application. 31 Sec. 7. NEW SECTION . 459.704 Minimum requirements for 32 manure control —— water quality. 33 The delivery of manure by an animal feeding operation for 34 processing by an anaerobic digester system in a manner that 35 -3- LSB 2959YC (3) 91 da/ns 3/ 25

H.F. _____ complies with this subchapter constitutes manure disposal 1 satisfying the requirements of section 459.311. 2 Sec. 8. NEW SECTION . 459.705 Special terms —— anaerobic 3 digester systems. 4 1. a. An anaerobic digester system must be identified with 5 an animal feeding operation. 6 b. An anaerobic digester system receiving manure from an 7 animal feeding operation is identified with the animal feeding 8 operation if the anaerobic digester system and the animal 9 feeding operation are either of the following: 10 (1) Under common ownership or management. 11 (2) Adjacent. 12 c. An anaerobic digester system and an animal feeding 13 operation shall be subject to an enforcement action arising 14 from the facts of a violation only if the anaerobic digester 15 system is identified with the animal feeding operation pursuant 16 to both subparagraphs (1) and (2) of paragraph “b” . 17 2. An anaerobic digester system and an animal feeding 18 operation structure are deemed adjacent if the closest 19 digester structure is separated from the closest animal feeding 20 operation structure by less than one thousand two hundred fifty 21 feet. 22 3. a. An anaerobic digester system and an animal feeding 23 operation are under common ownership if a person holds an 24 interest in the anaerobic digester system and the animal 25 feeding operation as any of the following: 26 (1) A sole proprietor. 27 (2) A joint tenant or tenant in common. 28 (3) A holder of a majority equity interest in a business 29 association as defined in section 202B.102, including but not 30 limited to a shareholder, partner, member, or beneficiary. 31 b. An interest in the anaerobic digester system and animal 32 feeding operation which is held directly or indirectly by the 33 person’s spouse or dependent child shall be attributed to the 34 person. 35 -4- LSB 2959YC (3) 91 da/ns 4/ 25

H.F. _____ 4. a. An anaerobic digester system and animal feeding 1 operation are under common management if a person has 2 significant control of the management of the day-to-day 3 operations of the community anaerobic digester system and 4 animal feeding operation. 5 b. Common management does not include control over a 6 contract livestock facility by a contractor, as those terms are 7 defined in section 202.1. 8 Sec. 9. NEW SECTION . 459.706 Special terms —— digester 9 structures. 10 1. A digester structure that is used as a manure storage 11 structure and that is not subject to a digestion process shall 12 be conclusively presumed to be a manure storage structure. 13 2. Any digester structure must be covered. Notwithstanding 14 section 459.102, subsection 19, a cover must include organic or 15 inorganic material placed upon a digester structure as provided 16 by rules adopted by the department. 17 3. A digester structure is constructed when any of the 18 following occur: 19 a. Excavation is conducted for a proposed digester structure 20 or proposed expansion of an existing digester structure, 21 including excavation for the footings of the digester 22 structure. 23 b. Forms for concrete are installed for a proposed digester 24 structure or the proposed expansion of an existing digester 25 structure. 26 c. Piping for the movement of manure is installed between 27 an animal feeding operation structure and a digester structure 28 proposed to be constructed or expanded. 29 4. a. This subchapter does not apply to a confinement 30 feeding operation structure regardless of whether manure 31 originating from the confinement feeding operation structure is 32 received by a digester processing structure. 33 b. This subchapter does not apply to an open feedlot 34 operation structure regulated under chapter 459A regardless of 35 -5- LSB 2959YC (3) 91 da/ns 5/ 25

H.F. _____ whether effluent originating from the open feedlot operation 1 structure is received by a digester processing structure. 2 c. Placing a cover over a manure storage structure does not 3 constitute construction or expansion of a digester structure. 4 Sec. 10. NEW SECTION . 459.707 Special terms —— manure and 5 digestates. 6 For purposes of this subchapter, all of the following apply: 7 1. The term “manure” includes “effluent” as defined in 8 section 459A.102. 9 2. Digester feedstock or digestate is classified as dry only 10 if all of the following apply: 11 a. The digester feedstock or digestate does not flow 12 perceptibly under pressure. 13 b. The digester feedstock or digestate is not capable of 14 being transported through a mechanical pumping device designed 15 to move a liquid. 16 c. The constituent molecules of the digester feedstock or 17 digestate do not flow freely among themselves but may show a 18 tendency to separate under stress. 19 3. A digester processing structure is limited to processing 20 manure as its primary source. The digester processing 21 structure may also process any of the following: 22 a. A quantity of digester feedstock as its secondary source. 23 b. An ancillary quantity of an inorganic material, including 24 a catalyst, used to best effectuate the digestion process. 25 The department shall adopt rules listing allowable materials 26 by name and, if necessary, the maximum allowed quantity. 27 The department may also approve the allowable materials and 28 quantity upon request of the owner or manager of the anaerobic 29 digester system. The allowed inorganic material allowed over 30 time must be nonhazardous to the public and environment. 31 4. a. Except as provided in paragraph “b” , a digestate 32 shall not be regulated as manure. 33 b. If a digestate is removed from a digester processing 34 structure and at any time is combined with manure, the 35 -6- LSB 2959YC (3) 91 da/ns 6/ 25

H.F. _____ digestate shall be regulated as manure under this chapter, 1 chapter 459A, and chapter 459B, as applicable. 2 Sec. 11. NEW SECTION . 459.711 Digester structures —— 3 construction permits. 4 1. a. Except as provided in paragraph “b” , a construction 5 permit must be issued prior to the construction of a digester 6 structure, including a digester feedstock storage structure, a 7 digester processing structure, and a liquid digestate storage 8 structure, as provided by rules adopted by the department 9 pursuant to this subchapter. 10 b. A person is not required to be issued a permit to 11 construct a digester structure if the anaerobic digester system 12 is owned by a research college as defined in section 459.318 13 conducting research activities. 14 2. The department’s decision to approve a permit for 15 the construction of a digester structure shall be based on 16 whether the application is submitted according to procedures 17 required by the department and the application meets standards 18 established by this subchapter and rules adopted by the 19 department. 20 3. Construction of a digester structure shall not begin 21 until the department first approves the application and issues 22 a construction permit. 23 4. The applicant for a construction permit must be the owner 24 of the anaerobic digester system and the person responsible 25 for the construction and operation of the anaerobic digester 26 system. 27 5. The department shall approve an application for a 28 construction permit regardless of whether the applicant is 29 required to be issued a construction permit. 30 6. Prior to submitting an application for a construction 31 permit, the applicant may submit a conceptual design and site 32 investigation report to the department for review and comment. 33 7. An application for a construction permit must include all 34 of the following information: 35 -7- LSB 2959YC (3) 91 da/ns 7/ 25

H.F. _____ a. The name and contact information of the owner and manager 1 of the anaerobic digester system identified with an animal 2 feeding operation under section 459.705 and the owner and 3 manager of the identified animal feeding operation. 4 b. Whether the digester structure is formed or unformed. 5 c. Information including but not limited to maps, drawings, 6 and aerial photos that clearly show the location of all of the 7 following: 8 (1) The location of the proposed or existing anaerobic 9 digester system, and any other proposed or existing digester 10 structures or digester stockpiles. 11 (2) The location of any proposed or existing animal feeding 12 operation structure that is part of the identified animal 13 feeding operation. 14 (3) A public water supply system as defined in section 15 455B.171 or a drinking water well which is located within a 16 distance from the proposed digester structure as prescribed by 17 rules adopted by the department. 18 d. An engineering report, construction plans, and 19 specifications prepared by a professional engineer or the 20 natural resources conservation service of the United States 21 department of agriculture. The professional engineer must 22 certify that the construction of the digester structure 23 complies with the construction design standards required in 24 this subchapter. 25 8. The department must approve or disapprove an application 26 for a construction permit within sixty days following the 27 applicant’s delivery of the application to the department. 28 However, the applicant may deliver a notice requesting a 29 continuance. Upon receipt of a notice, the time required for 30 the department to act upon the application shall be suspended 31 for the period provided in the notice of continuance, but for 32 not more than thirty days after the department’s receipt of 33 the notice. The applicant may submit more than one notice. 34 However, the department may provide that an application is 35 -8- LSB 2959YC (3) 91 da/ns 8/ 25

H.F. _____ terminated if no action is required by the department for one 1 year following delivery of the application to the department. 2 The department may also provide for a continuance when it 3 considers the application. The department shall provide notice 4 to the applicant of the continuance. The time required for 5 the department to act upon the application shall be suspended 6 for the period provided in the notice of continuance, but for 7 not more than thirty days. However, the department shall not 8 provide for more than one continuance. 9 Sec. 12. NEW SECTION . 459.712 Digester feedstock storage 10 structure —— required storage. 11 A person processing digester feedstock as part of an 12 anaerobic digester system must store the digester feedstock as 13 follows: 14 1. Nonfarm digester feedstock must be stored in a liquid 15 digestate storage structure. 16 2. a. On-farm digester feedstock that is liquid must be 17 stored in a liquid digestate storage structure. 18 b. On-farm digester feedstock that is dry must be stored in 19 any of the following: 20 (1) A liquid digestate storage structure. 21 (2) A dry digestate feedstock stockpile. 22 3. A person may store digester feedstock in a permitted 23 covered manure storage structure according to rules adopted by 24 the department. 25 Sec. 13. NEW SECTION . 459.713 Digester feedstock storage 26 structure —— construction permit. 27 1. In addition to the applicable requirements in section 28 459.711, an application for a permit to construct a digester 29 feedstock storage structure must include all of the following 30 information: 31 a. A description of the type and amount of digester 32 feedstock to be stored in the digester feedstock storage 33 structure. 34 b. The storage capacity of the digester feedstock storage 35 -9- LSB 2959YC (3) 91 da/ns 9/ 25

H.F. _____ structure. 1 c. A description of the digester processing structure used 2 to process the received manure and digester feedstock. 3 d. Any other information determined relevant by the 4 department as provided by rules adopted by the department. 5 2. The applicant must submit a construction permit 6 application fee as part of the application. The fee shall not 7 exceed two hundred fifty dollars. Moneys collected by the 8 department from the payment of fees under this section shall be 9 deposited in the general fund of the state. 10 Sec. 14. NEW SECTION . 459.714 Digester processing structure 11 —— construction permit. 12 1. In addition to the applicable requirements in section 13 459.711, an application for a permit to construct a digester 14 processing structure must include all of the following: 15 a. A description of the type and amount of digester 16 feedstock that is capable of being processed in the digester 17 processing structure at any one time. 18 b. The processing capacity of the digester processing 19 structure. 20 c. Unless an anaerobic digester system and animal feeding 21 operation are under common ownership or management as described 22 in section 459.705, a description of the responsibilities of 23 each of the following: 24 (1) For an anaerobic digester system, the terms of an 25 agreement to receive manure from the animal feeding operation 26 with which the anaerobic digester system is identified under 27 section 459.705. 28 (2) 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 d. (1) If digestate is to be applied to land subject to 33 a manure management plan, a copy of the plan and digestate 34 management supplement as required in section 459.733. 35 -10- LSB 2959YC (3) 91 da/ns 10/ 25

H.F. _____ (2) If digestate is to be applied to land subject to a 1 nutrient management plan, a copy of the plan and digestate 2 management supplement as required in section 459.733. 3 e. Any other information determined relevant by the 4 department as provided by rules adopted by the department. 5 2. The application must include a plan for maintaining 6 records regarding all of the following as provided by rules 7 adopted by the department: 8 a. (1) The manure, digester feedstock, and inorganic 9 materials subject to processing. 10 (2) The digestate and biogas processed. 11 b. Procedures for the departmental inspection of the 12 records. 13 3. 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. 15. NEW SECTION . 459.715 Digestate —— required 19 storage. 20 A person processing manure or digester feedstock as part of 21 an anaerobic digester system must store the produced digestate 22 as follows: 23 1. Liquid digestate must be stored in a liquid digestate 24 storage structure. 25 2. Dry digestate must be stored in any of the following: 26 a. A liquid digestate storage structure. 27 b. A dry digestate feedstock stockpile. 28 Sec. 16. NEW SECTION . 459.716 Liquid digestate storage 29 structure —— construction permit. 30 1. In addition to the applicable requirements in section 31 459.711, an application for a permit to construct a liquid 32 digestate storage structure must include all of the following 33 information: 34 a. A description of the type and amount of digestate to be 35 -11- LSB 2959YC (3) 91 da/ns 11/ 25

H.F. _____ stored in the liquid digestate storage structure. 1 b. The storage capacity of the liquid digestate storage 2 structure. 3 c. Any other information determined relevant by the 4 department as provided by rules adopted by the department. 5 2. The applicant must submit a construction permit 6 application fee as part of the application. The fee shall not 7 exceed two hundred fifty dollars. Moneys collected by the 8 department from the payment of fees under this section shall be 9 deposited in the general fund of the state. 10 Sec. 17. NEW SECTION . 459.717 Construction design standards 11 —— formed digester structures. 12 1. The department shall adopt rules establishing 13 construction design standards for a formed digester structure, 14 including a formed digester feedstock storage structure, a 15 formed digester processing structure, or a formed liquid 16 digestate storage structure. The department may adopt rules 17 providing separate regulations for each type of formed digester 18 structure. 19 2. The construction design standards shall be based, to 20 every extent possible, upon uniform standards such as available 21 standards promulgated by ASTM (American society for testing and 22 materials) international. 23 3. The construction design standards for concrete must 24 provide for all of the following: 25 a. The concrete’s minimum compressive strength calculated on 26 a pounds-per-square-inch basis. 27 b. The use of reinforcement, including but not limited to 28 the grade, amount, and location of steel rebar, fiberglass, or 29 similar materials set in the concrete, or the use of exterior 30 braces to support joints. 31 c. The depth of footings. 32 d. The thickness of the footings, the floor, and walls. 33 Sec. 18. NEW SECTION . 459.718 Special construction 34 restrictions —— formed digester structures. 35 -12- LSB 2959YC (3) 91 da/ns 12/ 25

H.F. _____ The department shall adopt rules providing for upgraded 1 construction design standards for a formed digester structure 2 constructed on karst terrain or an area that drains into a 3 known sinkhole as is necessary to ensure that a formed digester 4 structure does not pollute groundwater sources. 5 Sec. 19. NEW SECTION . 459.719 Construction design standards 6 —— unformed digester structures —— inspections. 7 1. The department shall adopt rules establishing 8 construction design standards for an unformed digester 9 structure, including an unformed digester feedstock storage 10 structure, an unformed digester processing structure, or an 11 unformed liquid digestate storage structure. The department 12 may adopt rules providing separate regulations for each type 13 of digester structure. 14 2. The construction design standards for an unformed 15 digester structure, established by rules adopted by the 16 department, must account for special design characteristics 17 applicable to an unformed digester feedstock storage structure, 18 an unformed digester processing structure, or an unformed 19 liquid digestate storage structure. The construction design 20 standard must account for all of the following: 21 a. The lining of the unformed digester structure must be 22 constructed with materials deemed suitable by rules adopted by 23 the department in order to minimize seepage loss through the 24 lining’s seal. 25 b. The structure must be constructed with materials deemed 26 suitable by rules adopted by the department in order to control 27 erosion on the unformed digester structure’s berm, side slopes, 28 and base. 29 c. The unformed digester structure must be constructed to 30 minimize seepage into near-surface water sources. 31 d. The top of the floor of the unformed digester structure’s 32 liner must be above the groundwater table as determined by 33 the department. If the groundwater table is less than two 34 feet below the top of the liner’s floor, the unformed digester 35 -13- LSB 2959YC (3) 91 da/ns 13/ 25

H.F. _____ structure shall be installed with a synthetic liner. If 1 the department allows an unformed digester structure to be 2 located at a site by permanently lowering the groundwater 3 table, the department shall confirm that the proposed system 4 meets standards necessary to ensure that the unformed digester 5 structure does not pollute groundwater sources. If the 6 department allows drain tile installed to lower a groundwater 7 table to remain where located, the department shall require 8 that a device be installed to allow monitoring of the water in 9 the drain tile line. The department shall also require the 10 installation of a device to allow shutoff of the drain tile 11 lines, if the drain tile lines do not have a surface outlet 12 accessible on the property where the digester structure is 13 located. 14 3. a. The department shall conduct a routine inspection 15 of each unformed digester structure at least once each year. 16 A routine inspection conducted pursuant to this paragraph 17 shall be limited to a visual inspection of the site where the 18 unformed digester structure is located. The department shall 19 inspect the site at a reasonable time after providing at least 20 twenty-four hours’ notice to the person owning or managing the 21 anaerobic digester system. The visual inspection must include 22 but is not limited to determining whether any of the following 23 exist: 24 (1) An adequate freeboard level. 25 (2) The seepage of a liquid from the unformed digester 26 structure. 27 (3) Erosion. 28 (4) Inadequate cover. 29 (5) The presence of an opening allowing liquid to drain from 30 the unformed digester structure. 31 b. Paragraph “a” does not restrict the department from 32 conducting an inspection of an anaerobic digester system which 33 is not routine. 34 Sec. 20. NEW SECTION . 459.720 Special construction 35 -14- LSB 2959YC (3) 91 da/ns 14/ 25

H.F. _____ restrictions —— unformed digester structures. 1 1. a. Except as provided in paragraph “b” , a person shall 2 not construct an unformed digester structure on karst terrain. 3 b. A person may construct an unformed digester structure 4 on karst terrain if there is a twenty-five-foot vertical 5 separation distance between the bottom of the unformed digester 6 structure and underlying limestone, dolomite, or other soluble 7 rock. 8 2. A person shall not construct an unformed digester 9 structure in an area that drains into a known sinkhole. 10 3. A person shall not construct or expand an unformed manure 11 storage structure within an agricultural drainage well area as 12 provided in section 460.205. 13 Sec. 21. NEW SECTION . 459.721 Duty of removal. 14 The owner of a digester structure that is part of an 15 anaerobic digester system that discontinues use shall remove 16 all material from the digester structure within six months 17 following the date that the anaerobic digester system is 18 discontinued. 19 Sec. 22. NEW SECTION . 459.731 Distance requirements for 20 digester structures —— air quality. 21 A separation distance requirement applies between a digester 22 structure that is part of the anaerobic digester system and an 23 object or location described in section 459.202 as follows: 24 1. The anaerobic digester system and its identified 25 confinement feeding operation as provided in section 459.705 26 shall be deemed to be a single confinement feeding operation, 27 and the digester structure shall be deemed to be a manure 28 storage structure that is part of the identified confinement 29 feeding operation. 30 2. The separation distance shall be determined according 31 to the date that the digester structure was constructed or 32 expanded according to the relevant table in section 459.202, 33 subsections 1 through 5, subject to section 459.202, subsection 34 6, and subject to provisions allowing the expansion of prior 35 -15- LSB 2959YC (3) 91 da/ns 15/ 25

H.F. _____ constructed confinement feeding operations under section 1 459.203 and exceptions to separation distance requirements in 2 section 459.205. 3 Sec. 23. NEW SECTION . 459.732 Distance requirements for 4 digester structures —— water quality. 5 The same separation distance requirements and exceptions 6 to those separation distance requirements that apply to a 7 confinement feeding operation structure and an object or 8 location for which separation is required in section 459.310 9 apply to a digester structure and that same object or location. 10 Sec. 24. NEW SECTION . 459.733 Digestate management —— water 11 quality. 12 If digestate is applied on land subject to a manure 13 management plan pursuant to section 459.312 or a nutrient 14 management plan pursuant to section 459A.208, the manure 15 management plan or nutrient management plan must be attached 16 with a digestate management supplement. The digestate 17 management supplement must include all of the following: 18 1. Calculations necessary to determine the land area 19 required for the application of the digestate and manure from a 20 confinement feeding operation or effluent from an open feedlot 21 operation. 22 2. The nutrient concentrations of the digestate. 23 Sec. 25. NEW SECTION . 459.734 Stockpiling dry digester 24 feedstock or dry digestate —— air quality. 25 1. A person may stockpile dry digester feedstocks or dry 26 digestate subject to this section. 27 2. a. Except as provided in paragraph “b” , the person shall 28 not stockpile dry digester feedstock or dry digestate within 29 one thousand two hundred fifty feet from a residence not owned 30 by the titleholder of the land, a commercial enterprise, a bona 31 fide religious institution, an educational institution, or a 32 public use area. 33 b. The person may stockpile dry digester feedstock or 34 dry digestate within a separation distance required between 35 -16- LSB 2959YC (3) 91 da/ns 16/ 25

H.F. _____ the stockpiled dry digestate and an object or location for 1 which separation is required under paragraph “a” , if the 2 titleholder of the land benefiting from the separation distance 3 requirement executes a written waiver with the titleholder of 4 the land where the dry digester feedstock or dry digestate is 5 stockpiled. 6 Sec. 26. NEW SECTION . 459.735 Stockpiling dry digestate 7 —— water quality. 8 A person may stockpile dry digestate subject to this 9 section. 10 1. The person stockpiling dry digestate shall comply with 11 applicable requirements of the national pollutant discharge 12 elimination system pursuant to the federal Water Pollution 13 Control Act, 33 U.S.C. ch. 26, as amended, and 40 C.F.R. pts. 14 122 and 412. 15 2. a. The person shall not stockpile the dry digestate 16 within the following distances to a designated area unless the 17 dry digestate is maintained in a manner that will not allow 18 precipitation-induced runoff to drain from the dry digestate 19 to the designated area: 20 (1) Four hundred feet from a designated area other than a 21 high-quality water resource. 22 (2) Eight hundred feet from a high-quality water resource. 23 b. The person shall not stockpile dry digestate within two 24 hundred feet from a terrace tile inlet or surface tile inlet 25 unless the dry digestate is maintained in a manner that will 26 not allow precipitation-induced runoff to drain from the dry 27 digestate to the terrace tile inlet or surface tile inlet. 28 c. The person shall not stockpile dry digestate in a grassed 29 waterway, where water pools on the soil surface, or in any 30 location where surface water will enter the stockpiled dry 31 digestate. 32 d. The person shall not stockpile dry digestate on land 33 having a slope of more than three percent unless methods, 34 structures, or practices are implemented to contain the 35 -17- LSB 2959YC (3) 91 da/ns 17/ 25

H.F. _____ stockpiled dry digestate, including but not limited to 1 using hay bales, silt fences, temporary earthen berms, 2 or other effective measures, and to prevent or diminish 3 precipitation-induced runoff from the stockpiled dry digestate. 4 3. A person shall remove stockpiled dry digestate and apply 5 it in the same manner as manure under subchapter III, including 6 but not limited to section 459.311, within six months after the 7 dry digestate is stockpiled. 8 Sec. 27. NEW SECTION . 459.736 Stockpiling dry digestate —— 9 special requirements —— water quality. 10 A person may stockpile dry digestate on karst terrain or in 11 an alluvial aquifer in compliance with the following: 12 1. The person must stockpile the dry digestate at a location 13 where there is a vertical separation distance of at least five 14 feet between the bottom of the stockpiled dry digestate and 15 the underlying limestone, dolomite, or other soluble rock in 16 karst terrain or the underlying sand and gravel aquifer in an 17 alluvial aquifer area. 18 2. The dry digestate must be stockpiled on reinforced 19 concrete at least five inches thick. 20 Sec. 28. NEW SECTION . 459.737 Applying dry digestate on 21 snow-covered or frozen ground —— water quality. 22 A person may apply digestate on snow-covered or frozen 23 ground, except to the extent otherwise provided by applicable 24 requirements for manure in this chapter, including section 25 459.313A, or the national pollutant discharge elimination 26 system pursuant to the federal Water Pollution Control Act, 33 27 U.S.C. ch. 26, as amended, and 40 C.F.R. pts. 122 and 412. 28 Sec. 29. NEW SECTION . 459.811 Anaerobic digester systems 29 —— violations. 30 A person who violates section 459.731 or 459.734 shall be 31 subject to the same penalty as provided in section 459.602, and 32 a person who violates any other provision of subchapter VII 33 shall be subject to the same penalty as provided in section 34 459.603. Any civil penalty and interest on a civil penalty 35 -18- LSB 2959YC (3) 91 da/ns 18/ 25

H.F. _____ collected under this section shall be credited to the Iowa 1 nutrient research fund created in section 466B.46. 2 Sec. 30. NEW SECTION . 459A.209 Digestate application 3 supplement to nutrient management plan. 4 If digestate is applied on land subject to a nutrient 5 management plan pursuant to section 459A.208, the nutrient 6 management plan must be attached with a digestate management 7 supplement as provided in section 459.733. 8 Sec. 31. CODE EDITOR DIRECTIVES. 9 1. The Code editor is directed to create new parts in new 10 subchapter VII of chapter 459 as follows: 11 a. Part 1 shall include sections 459.701 through 459.710. 12 b. Part 2 shall include sections 459.711 through 459.730. 13 c. Part 3 shall include sections 459.731 through 459.737. 14 2. The Code editor is directed to make the following 15 transfers to new subchapter VIII of chapter 459: 16 a. Section 459.601 to section 459.801. 17 b. Section 459.602 to section 459.802. 18 c. Section 459.603 to section 459.803. 19 d. Section 459.604 to section 459.804. 20 e. Section 459.605 to section 459.805. 21 3. The Code editor is directed to correct internal 22 references in the Code and in any enacted legislation as 23 necessary due to enactment of this section. 24 Sec. 32. EFFECTIVE DATE. This Act, being deemed of 25 immediate importance, takes effect upon enactment. 26 Sec. 33. CONTINUED APPLICABILITY OF REGULATORY PRACTICE. 27 1. Notwithstanding the provisions of this Act, on and 28 after the effective date of this Act the department of 29 natural resources shall regulate activities related to the 30 construction, expansion, and operation of anaerobic digester 31 systems, including the storage and use of materials including 32 manure and digester feedstock in the digestion process, the 33 processing of digestates, and the storage and application of 34 digestates, in substantially the same manner as the department 35 -19- LSB 2959YC (3) 91 da/ns 19/ 25

H.F. _____ regulated those activities on March 1, 2025. 1 2. This section is repealed on the publication date of 2 the edition of the Iowa administrative bulletin that includes 3 a statement by the director of the department of natural 4 resources that all rules required to effectively administer 5 and enforce the provisions of this Act have been adopted. The 6 department shall forward a copy of the statement to the Iowa 7 Code editor prior to its publication in the Iowa administrative 8 bulletin. 9 EXPLANATION 10 The inclusion of this explanation does not constitute agreement with 11 the explanation’s substance by the members of the general assembly. 12 GENERAL. This bill provides for the regulation of animal 13 feeding operations by the department of natural resources 14 (DNR), including the storage and application of manure 15 originating from such operations (Code chapter 459). An animal 16 feeding operation is an area or building in which agricultural 17 animals (cattle, swine, horses, sheep, chickens, turkeys, or 18 fish) are confined for 45 days or more in any 12-month period, 19 and all associated structures used for the storage of manure. 20 A confinement feeding operation is an animal feeding operation 21 in which animals are confined to areas which are totally 22 roofed. Another form of animal feeding operation is an open 23 feedlot operation which confines animals without a roof or a 24 partial roof regulated by DNR (Code chapter 459A) and a dry 25 bedded confinement feeding operation which confines animals in 26 so-called hooped buildings (Code chapter 459B). 27 BACKGROUND —— REGULATORY REQUIREMENTS. Regulatory 28 requirements that apply to an animal feeding operation include 29 a number of requirements governing associated structures 30 including a confinement building housing agricultural animals, 31 and various types of structures storing manure which may be 32 made of material like concrete (formed) or that are primarily 33 earthen (unformed) and which may or may not be covered. 34 The regulations apply to manure in both a solid and liquid 35 -20- LSB 2959YC (3) 91 da/ns 20/ 25