Senate File 2258 - Introduced SENATE FILE 2258 BY STAED A BILL FOR An Act relating to animal feeding operations by providing 1 for certain air and water quality regulations, including 2 when two or more related confinement feeding operations 3 are deemed to be a single operation, making penalties 4 applicable, and including effective date and applicability 5 provisions. 6 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 7 TLSB 5221XS (9) 91 da/js

S.F. 2258 Section 1. Section 459.102, Code 2026, is amended by adding 1 the following new subsections: 2 NEW SUBSECTION . 9A. a. “Business entity” means a person 3 recognized as a partnership, limited partnership, or limited 4 liability limited partnership described in chapter 486A or 5 488; a limited liability company as described in chapter 6 489; a corporation as described in chapter 490, 491, or 504; 7 an association as described in chapter 497, 498, or 499; a 8 cooperative described in chapter 501; a cooperative association 9 described in chapter 501A; an unincorporated nonprofit 10 association as described in chapter 504; or any other entity 11 commonly referred to as an investment company, joint stock 12 company, joint stock association, or trust, including but not 13 limited to a business trust. 14 b. “Business entity” includes a person described in 15 paragraph “a” regardless of whether the person is formed in this 16 state under any of those provisions referred to in paragraph “a” 17 or is otherwise authorized to do or transact business in this 18 state under any of those provisions referred to in paragraph 19 “a” . 20 NEW SUBSECTION . 42A. “Operation of law” means a transfer 21 by inheritance, devise or bequest, court order, dissolution 22 decree, order in bankruptcy, insolvency, replevin, foreclosure, 23 execution sale, the execution of a judgment, the foreclosure 24 of a real estate mortgage, the forfeiture of a real estate 25 contract, or a transfer resulting from a decree for specific 26 performance. 27 Sec. 2. Section 459.201, subsection 1, Code 2026, is amended 28 by striking the subsection and inserting in lieu thereof the 29 following: 30 1. Two or more animal feeding operations under common 31 ownership or management are deemed to be a single animal 32 feeding operation if any of the following apply: 33 a. The animal feeding operations are located on adjacent 34 land or utilize a common area or system for manure application. 35 -1- LSB 5221XS (9) 91 da/js 1/ 10

S.F. 2258 b. The animal feeding operations are related under section 1 459.201A. 2 Sec. 3. Section 459.201, subsection 3, Code 2026, is amended 3 to read as follows: 4 3. a. In calculating the animal unit capacity of a 5 confinement feeding operation, the animal unit capacity shall 6 include the animal unit capacity of all confinement feeding 7 operation buildings which that are part of the confinement 8 feeding operation, unless a confinement feeding operation 9 building has been abandoned. 10 b. Unless expressly stated otherwise in this subchapter, 11 the animal units of all confinement feeding operations that are 12 related and deemed to be a single confinement feeding operation 13 shall be combined when calculating the animal unit capacity of 14 any one of the confinement feeding operations. 15 Sec. 4. NEW SECTION . 459.201A Special terms —— related 16 confinement feeding operations. 17 Two or more confinement feeding operations are related and 18 deemed to be a single confinement feeding operation if all of 19 the following apply: 20 1. A confinement feeding operation structure that is part 21 of one confinement feeding operation is separated by less than 22 two thousand five hundred feet from a confinement feeding 23 operation structure that is part of the other confinement 24 feeding operation. 25 2. Any of the following apply: 26 a. The confinement feeding operations utilize a common 27 system for manure storage or common area or system for manure 28 disposal. 29 b. The confinement feeding operations both utilize any of 30 the following: 31 (1) A privately owned road capable of use by a motor vehicle 32 having a gross weight of six tons or more. 33 (2) A private water well regardless of whether the water 34 well is used to access water for human consumption. 35 -2- LSB 5221XS (9) 91 da/js 2/ 10

S.F. 2258 (3) A utility connection that directly connects the 1 confinement feeding operations. 2 (4) Any other personal property owned or used by the 3 confinement feeding operations as provided by rule adopted by 4 the department. 5 c. The same person holds an interest in the real property 6 where the confinement feeding operations are sited. The person 7 may hold a legal interest or equitable interest in the real 8 property. 9 (1) In determining whether the same person holds an 10 interest in the real property where the two confinement feeding 11 operations are sited, an interest in the real property may be 12 held by the person in any of the following forms: 13 (a) Legal title, including as a joint tenant or tenant in 14 common, or the holder of an interest for life or term of years. 15 (b) Leasehold, including as a lessor or lessee. 16 (c) Real estate contract, including in cases in which the 17 person is a vendor or vendee. 18 (d) Equitable title, including as a settlor, trustee, or 19 beneficiary. 20 (e) Easement, including as the owner of the dominant estate 21 or servient estate. 22 (2) If the person is a business entity, the business 23 entity’s interest in the real property is attributable to any 24 of the following: 25 (a) A partner, limited partner, member, shareholder, 26 settlor, trustee, beneficiary, or other equity holder of the 27 business entity. 28 (b) Any officer, manager, or employee of the business 29 entity. 30 (3) A person’s real property interest is attributable to 31 the person’s spouse, parent, grandparent, lineal ascendant of 32 a grandparent or spouse and any other lineal descendant of 33 the grandparent or spouse, sibling, or a person acting in a 34 fiduciary capacity for a related person. 35 -3- LSB 5221XS (9) 91 da/js 3/ 10

S.F. 2258 (4) A subsidiary or affiliate of a business entity shall be 1 deemed to be the same business entity. 2 (5) A person’s interest in a fixture that is attached to the 3 real property where a confinement feeding operation is sited, 4 including a confinement feeding operation structure, shall be 5 deemed to be an interest in the confinement feeding operation. 6 (6) A person’s property interest does not include the 7 acquisition of property by any of the following: 8 (a) Operation of law. 9 (b) A bona fide encumbrance taken for purposes of security, 10 including but not limited to a mortgage or deed of trust. 11 (c) Under a contract in which the other party is a 12 government entity. 13 Sec. 5. Section 459.203, unnumbered paragraph 1, Code 2026, 14 is amended to read as follows: 15 A confinement feeding operation constructed or expanded 16 prior to the date that a distance requirement became effective 17 under section 459.202 and which that does not comply with 18 the section’s distance requirement may continue to operate 19 regardless of the distance requirement. The In addition and 20 except as provided in section 459.203A, such confinement 21 feeding operation may be expanded by the construction or 22 expansion of a confinement feeding operation structure, if any 23 of the following applies: 24 Sec. 6. NEW SECTION . 459.203A Related confinement 25 feeding operations deemed to be same operation —— expansion of 26 confinement feeding operations. 27 1. If two or more confinement feeding operations are 28 related and deemed to be a single confinement feeding operation 29 pursuant to sections 459.201 and 459.201A, neither confinement 30 feeding operation shall be expanded by the construction or 31 expansion of a confinement feeding operation structure on or 32 after the effective date of this Act, unless the confinement 33 feeding operation structure complies with the distance 34 requirements applying to that structure as provided in section 35 -4- LSB 5221XS (9) 91 da/js 4/ 10

S.F. 2258 459.202, subsections 4 and 5. 1 2. Notwithstanding subsection 1, a confinement feeding 2 operation structure may be expanded by replacing one or more 3 unformed manure storage structures with one or more formed 4 manure storage structures, if all of the following apply: 5 a. The animal weight capacity or animal unit capacity, 6 whichever is applicable, is not increased for that portion of 7 the confinement feeding operation that utilizes all replacement 8 formed manure storage structures. 9 b. The use of each replaced unformed manure storage 10 structure is discontinued within one year after the 11 construction of the replacement formed manure storage 12 structure. 13 c. The capacity of all replacement formed manure storage 14 structures does not exceed the capacity required to store 15 manure produced by that portion of the confinement feeding 16 operation that had utilized all replaced unformed manure 17 storage structures. 18 d. The replacement formed manure storage structure is not 19 closer to an object or location benefiting from a separation 20 distance than the separation distance between the replaced 21 unformed manure storage structure and the same object or 22 location as required in section 459.202. 23 Sec. 7. NEW SECTION . 459.203B Business entity —— report. 24 1. A business entity that holds an interest in real property 25 where a confinement feeding operation is located shall submit a 26 report to the department under this subchapter not later than 27 December 31 of each year. However, if a business entity is 28 submitting an application to the department for a permit to 29 construct, including expand, a confinement feeding operation 30 structure as provided in section 459.303, the business entity 31 shall submit the report with the application. 32 2. The business entity shall state whether the confinement 33 feeding operation is related to another confinement feeding 34 operation as provided in section 459.203A. 35 -5- LSB 5221XS (9) 91 da/js 5/ 10

S.F. 2258 3. The business entity shall submit a list of names of any 1 persons who have an attributable interest in the real property 2 where the confinement feeding operation is located regardless 3 of whether the business entity states the confinement feeding 4 operation is related to another confinement feeding operation. 5 4. The report shall include the name of the business entity 6 described in subsection 1 and the percentage equity interest 7 in that business entity held by each named person. If the 8 business entity is a limited liability company, as provided in 9 chapter 489, the company shall attach to the report a copy of 10 those pages of the company’s operating agreement that identify 11 the equity position held by each member of the company. 12 Sec. 8. Section 459.205, subsection 1, Code 2026, is amended 13 to read as follows: 14 1. a. A confinement feeding operation structure, if the 15 structure is part of a confinement feeding operation which that 16 qualifies as a small animal feeding operation. However, this 17 subsection shall not apply if the confinement feeding operation 18 structure is an unformed manure storage structure. 19 b. Paragraph “a” does not apply to any of the following: 20 (1) A confinement feeding operation that includes an 21 unformed manure storage structure. 22 (2) Two or more animal feeding operations that are deemed to 23 be a single animal feeding operation under section 459.201, if 24 the combined animal unit capacity of the confinement feeding 25 operations is more than five hundred animal units. 26 c. Two or more related confinement feeding operations that 27 are deemed to be a single confinement feeding operation under 28 sections 459.201 and 459.201A, if the combined animal unit 29 capacity of the related confinement feeding operations is more 30 than five hundred animal units. 31 Sec. 9. Section 459.301, subsection 1, Code 2026, is amended 32 by striking the subsection and inserting in lieu thereof the 33 following: 34 1. Two or more animal feeding operations under common 35 -6- LSB 5221XS (9) 91 da/js 6/ 10

S.F. 2258 ownership or management are deemed to be a single animal 1 feeding operation if any of the following apply: 2 a. The animal feeding operations are adjacent or utilize a 3 common area or system for manure application. 4 b. The confinement feeding operations are deemed to be a 5 single confinement feeding operation in the same manner as two 6 confinement feeding operations are determined to be related 7 under section 459.201A. 8 Sec. 10. Section 459.301, subsection 3, Code 2026, is 9 amended by adding the following new paragraph: 10 NEW PARAGRAPH . c. Unless expressly stated otherwise 11 in this subchapter, the animal units of all confinement 12 feeding operations that are related and deemed to be the 13 same confinement feeding operation shall be combined when 14 calculating the animal unit capacity of any one of the 15 confinement feeding operations. 16 Sec. 11. NEW SECTION . 459.301A Business entity —— report. 17 A business entity that holds an interest in real property 18 where a confinement feeding operation is located shall submit a 19 report to the department as provided in section 459.203B. 20 Sec. 12. Section 459.303, subsection 3, Code 2026, is 21 amended by adding the following new paragraph: 22 NEW PARAGRAPH . e. A new or updated report required to be 23 submitted to the department pursuant to section 459.203B. 24 Sec. 13. Section 459.312, subsection 2, Code 2026, is 25 amended to read as follows: 26 2. a. Not more than one confinement feeding operation shall 27 be covered by a single manure management plan. 28 b. If two or more confinement feeding operations are 29 deemed to be a single confinement feeding operation under 30 section 459.301, the department may require a separate manure 31 management plan to cover each confinement feeding operation. 32 Sec. 14. Section 459.317, subsection 1, paragraph b, Code 33 2026, is amended by striking the paragraph. 34 Sec. 15. EFFECTIVE DATE. This Act, being deemed of 35 -7- LSB 5221XS (9) 91 da/js 7/ 10

S.F. 2258 immediate importance, takes effect upon enactment. 1 Sec. 16. APPLICABILITY. This Act shall not apply to a 2 person who has begun construction of a confinement feeding 3 operation structure prior to the effective date of this Act. 4 EXPLANATION 5 The inclusion of this explanation does not constitute agreement with 6 the explanation’s substance by the members of the general assembly. 7 BACKGROUND —— GENERAL. This bill amends the “Animal 8 Agriculture Compliance Act” (Code chapter 459), which provides 9 for the regulation of an animal feeding operation where 10 agricultural animals are maintained for at least 45 days in any 11 12-month period and includes an open feedlot and a confinement 12 feeding operation (operation) and any associated confinement 13 feeding operation structure (structure), such as a building 14 or manure storage structure. Compliance with a statutory 15 regulation under the Code chapter includes compliance with 16 a rule adopted by the department of natural resources (DNR) 17 (Code section 459.1030). Generally, regulations vary based on 18 the size of an operation measured by its animal unit capacity 19 (AUC). 20 BACKGROUND —— ADJACENCY. For purposes of air quality 21 regulation, two or more animal feeding operations under common 22 ownership or management are deemed to be a single animal 23 feeding operation if they are adjacent or utilize a common 24 system for manure storage and are separated within a minimum 25 distance from each other based on the size of the operation. 26 For purposes of water quality regulation, two or more animal 27 feeding operations under common ownership or management are 28 deemed to be a single operation if they are adjacent or utilize 29 a common area or system for manure disposal and are separated 30 by another set of separation distances based on the size of the 31 operation. 32 BACKGROUND —— AUC. AUC refers to a measurement used to 33 determine the maximum number of animal units that may be 34 maintained as part of an animal feeding operation at any one 35 -8- LSB 5221XS (9) 91 da/js 8/ 10

S.F. 2258 time. In calculating AUC, a special equivalency factor is 1 assigned for each classification of confined animal. 2 BILL’S PROVISIONS —— RELATED CONFINEMENT FEEDING OPERATION. 3 The bill provides that for purposes of administering and 4 enforcing Code chapter 459, subchapter II, providing for air 5 quality regulations and Code chapter 459, subchapter III, 6 providing for water quality regulations, two or more operations 7 are deemed to be a single operation if they are (1) under 8 common ownership or management and are located on adjacent 9 land or utilize a common area or system for manure application 10 or (2) they are related. The operations are related if a 11 structure that is part of one operation is separated by less 12 than 2,500 feet from a structure that is part of the other 13 operation and certain alternative conditions apply. The 14 first condition occurs if the confinement feeding operations 15 utilize some common method of manure storage or common area 16 or system for manure disposal. The second condition occurs 17 when the confinement feeding operations utilize a common 18 item or service such as a private road, private water well, 19 utility connection, or other personal property described by DNR 20 rule. The third condition occurs when the same person holds 21 a legal or equitable interest in the real property where the 22 operations are located. If the person is a business entity, 23 the business entity’s interest is attributable to any person 24 who owns an interest in the entity or who is a partner, limited 25 partner, shareholder, member, settlor, trustee, beneficiary, 26 or other equity holder of the business entity. The business 27 entity’s interest is also attributable to any officer, manager, 28 or employee of the business entity. A person’s interest is 29 also attributable to a relative (e.g., spouse, child, or 30 sibling). A person’s interest does not include the acquisition 31 of property by a number of devices including by operation of 32 law, an encumbrance taken as a security, or under contract with 33 a government entity. 34 The bill requires a business entity that holds an interest 35 -9- LSB 5221XS (9) 91 da/js 9/ 10

S.F. 2258 in real property where a confinement feeding operation is 1 located to submit a report to DNR each year that includes a 2 list of names of any persons who have an attributable interest 3 in the real property where the confinement feeding operation 4 is located. The report must include the name of the business 5 entity and the percentage equity interest in that business 6 entity held by each named person. The report must be part of 7 any permit for the construction or expansion of a confinement 8 feeding operation. 9 APPLICABLE CIVIL PENALTIES. Code section 459.602 provides 10 for civil penalties that may be assessed for violations of 11 Code chapter 459, subchapter II (air quality regulations). A 12 violator is subject to Code section 455B.109, which provides 13 for the administrative assessment of civil penalties of up to 14 $10,000. Code section 459.603 provides for civil penalties 15 that may be assessed for violations of Code chapter 459, 16 subchapter III (water quality regulations). A violator is 17 subject to either Code section 455B.109 providing for the 18 administrative assessment of civil penalties or Code section 19 455B.191, which provides for a general civil penalty assessed 20 judicially of up to $5,000. 21 EFFECTIVE DATE. The bill takes effect upon enactment. 22 -10- LSB 5221XS (9) 91 da/js 10/ 10