SF 429 (LSB 2740XS (2) 91)

SENATE FILE 429

BY  SWEENEY

A BILL FOR

An Act providing for a pilot program to reduce the use of commercial nitrogen-based fertilizers to produce crops, and making appropriations.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:

    Section 1.  NEW SECTION.  466B.51  Definitions.
   As used in this subchapter, unless the context otherwise requires:
   1.  “Commercial fertilizer” means the same as defined in section 200.3.
   2.  “Commercial nitrogen-based fertilizer” means a commercial fertilizer containing at least twenty-five percent total nitrogen.
   3.  “Division” means the division of soil conservation and water quality created within the department of agriculture and land stewardship pursuant to section 159.5.
   4.  “Fund” means the innovative nutrient incorporation incentive pilot program fund created in section 466B.55.
   5.  “Producer” means a person actively engaged in farming agricultural land as those terms are defined in section 9H.1.
   6.  “Program” means the innovative nutrient incorporation incentive pilot program created pursuant to section 466B.52.
   7.  a.  “Qualifying crop production product” means a commercially available product that, when applied to cropland in conjunction with or as an alternative to a commercial fertilizer, cost-effectively promotes optimum plant growth in a manner that best reduces nitrogen as a nonpoint source of water pollution.
   b.  “Qualifying crop production product” includes but is not limited to a soil conditioner with nitrogen-fixing properties, biological sources of nitrogen, and biofertilizers that improve efficiencies in nitrogen management practices.
   8.  “Soil conditioner” means the same as defined in section 200.3.
    Sec. 2.  NEW SECTION.  466B.52  Innovative nutrient incorporation incentive pilot program —— creation and goal.
   1.  An innovative nutrient incorporation incentive pilot program is created.
   2.  a.  The goal of the program is to encourage farmers to best optimize commercial nitrogen-based fertilizer rates and, where appropriate, determine how commercial nitrogen-based fertilizer application rates can be reduced by the threshold limit of the lesser of fifteen percent or thirty pounds per acre by incorporating identifiable cost-effective qualifying crop production products.
   b.  The division may reevaluate and revise the goal of the program after determining that commercial nitrogen-based fertilizer application rates can be efficiently reduced more than the threshold limit described in paragraph “a”.
    Sec. 3.  NEW SECTION.  466B.53  Program administration.
   1.  The program shall be administered by the division of soil conservation and water quality.
   2.  The division may adopt rules as provided in chapter 17A to administer this subchapter.
   3.  In administering the program, the division may do any of the following:
   a.  Contract with another party, including a private person, to develop, implement, and manage any part of the program subject to the division’s direction and supervision.
   b.  Cooperate with any interested organization to the extent that the interested organization elects to cooperate with the division.
    Sec. 4.  NEW SECTION.  466B.54  Program requirements.
   1.  Each year, the division shall select qualified producers to participate in the program according to criteria established by the division. In selecting qualified producers, the division shall consider applicants actively engaged in growing field crops in all regions of the state. A selected producer may reapply to participate in the program each year that the program continues.
   2.  The division shall approve the use of qualifying crop production products and application methods according to label instructions and standards established by the division.
   3.  A selected producer using qualifying crop production products must keep records as required by the division that document application methods, timing, and results as part of the selected producer’s crop fertility plan.
   4.  The division may award a selected producer an incentive payment for each acre that the selected producer applies qualifying crop production products to meet the goal provided in section 466B.52. The total amount of an award shall not be less than five dollars for each acre used to apply the qualifying crop production products. Before selecting qualified producers each year, the division may adjust the amount of the payment based on the number of selected producers, the availability of moneys, the rate of inflation, more cost-effective technologies, or less expensive qualifying crop production products.
    Sec. 5.  NEW SECTION.  466B.55  Innovative nutrient incorporation incentive pilot program fund.
   1.  An innovative nutrient incorporation incentive pilot program fund is created in the state treasury under the management and control of the division.
   2.  The fund shall include moneys appropriated by the general assembly. The fund may include other moneys available to and obtained or accepted by the division, including moneys from public or private sources.
   3.  Moneys in the fund are appropriated to the division and shall be used exclusively to carry out the provisions of this subchapter as determined by the division.
   4.  a.  Notwithstanding section 12C.7, interest or earnings on moneys in the fund shall be credited to the fund.
   b.  Notwithstanding section 8.33, unencumbered and unobligated moneys in the fund shall not revert but shall remain available for expenditure for the purposes designated.
   5.  Any unencumbered or unobligated moneys in the fund upon repeal of this subchapter pursuant to section 466B.59 shall be transferred to the Iowa nutrient research fund created pursuant to section 466B.46. 
    Sec. 6.  NEW SECTION.  466B.56  Appropriation.
   For the fiscal year beginning July 1, 2025, and ending June 30, 2026, and for each fiscal year thereafter, there is appropriated from the general fund of the state to the fund the amount of two million dollars.
    Sec. 7.  NEW SECTION.  466B.57  Innovative nutrient incorporation incentive pilot program report.
   On or before January 15, 2029, the division shall prepare and deliver to the governor and general assembly an innovative nutrient incorporation incentive pilot program report regarding the status of the program, together with any findings and recommendations regarding how producers in this state may best utilize qualifying crop production products. 
    Sec. 8.  NEW SECTION.  466B.58  Confidentiality.
   Any information received, collected, or held under this subchapter is a confidential record as provided in section 22.7, if the information identifies any of the following:
   1.  A person who holds a legal interest in the cropland used in conducting the program or who has previously held a legal interest in that cropland.
   2.  A person who is involved in managing the cropland used in conducting the program or who has previously managed that cropland.
   3.  The identifiable location of the cropland used in conducting the program.
    Sec. 9.  NEW SECTION.  466B.59  Repeal.
   This subchapter is repealed December 31, 2030.
EXPLANATION
The inclusion of this explanation does not constitute agreement with
the explanation’s substance by the members of the general assembly.
   GENERAL. This bill amends Code chapter 466B, which includes a number of subchapters that provide programs to improve surface water quality. The bill creates a new subchapter requiring the division of soil conservation and water quality (division) created within the department of agriculture and land stewardship to develop, implement, and administer an innovative nutrient incorporation incentive pilot program (program).
   PROGRAM GOAL. The bill provides that the goal of the program is to encourage producers to produce crops in a manner that optimizes commercial nitrogen-based fertilizer rates and reduces commercial nitrogen-based fertilizer application rates by a threshold limit of the lesser of 15 percent or 30 pounds per acre by incorporating identifiable cost-effective qualifying crop production products.
   PROGRAM ADMINISTRATION. The bill provides that the division may administer the program by contracting with another party and may cooperate with interested organizations. The division is required to select qualified producers each year to participate in the program and may award a selected producer an incentive payment for each acre that the selected producer applies qualifying crop production products to meet the program goal. 
   PROGRAM FUND AND APPROPRIATIONS. The bill creates an innovative nutrient incorporation incentive pilot program fund (fund). For the fiscal year beginning July 1, 2025, and ending June 30, 2026, and for each subsequent fiscal year until the fiscal year ending June 30, 2030, an appropriation of $2 million is made from the general fund to support the program each fiscal year until the fund’s repeal.
   PROGRAM REPORT. The bill requires the division to submit an innovative nutrient incorporation incentive pilot program report (report) to the governor and general assembly on or before January 15, 2029. The report must discuss the status of the program and include recommendations regarding how producers may reduce commercial nitrogen-based fertilizer application rates.
   CONFIDENTIALITY. The bill provides that certain information received by the division in conducting the program is confidential, including information that identifies persons participating in the program or the location of cropland used in conducting the program.
   REPEAL. The bill repeals the subchapter that provides for the program on December 31, 2030. Unencumbered or unobligated moneys remaining in the fund upon repeal are transferred to the Iowa nutrient research fund (Code section 466B.46).