April 5, 2011





ENGROSSED

HOUSE BILL No. 1187

_____


DIGEST OF HB 1187 (Updated April 4, 2011 12:41 pm - DI 118)



Citations Affected: IC 13-11; IC 13-18; IC 13-20; IC 15-16.

Synopsis: Satellite manure storage structures. Provides that after June 30, 2011, a person may not start: (1) construction of certain satellite manure storage structures; or (2) expansion of certain satellite manure storage structures that increases manure containment capacity; without obtaining the prior approval of the department of environmental management. Adds definition of "biomass", "biomass anaerobic digestion facility" (BADF), "biomass gasification facility" (BGF), and "fertilizer material". Requires approval of the Indiana department of environmental management (IDEM) for construction or expansion of a satellite manure storage or biomass related structures. Exempts anaerobic digestion and gasification facilities (not biomass related) that maintain an air permit from having to seek prior approval from IDEM to construct or expand a structure. Requires that prior approval be obtained to construct a BADF or BGF on the premises of a CFO. Provides that a facility for which the only input is biomass is not
(Continued next page)

Effective: July 1, 2011.





Davis, Friend
(SENATE SPONSOR _ GARD)




    January 10, 2011, read first time and referred to Committee on Environmental Affairs.
    January 27, 2011, amended, reported _ Do Pass.
    January 31, 2011, read second time, ordered engrossed. Engrossed.
    February 3, 2011, read third time, passed. Yeas 99, nays 0.

SENATE ACTION

    February 17, 2011, read first time and referred to Committee on Energy and Environmental Affairs.
    April 4, 2011, amended, reported favorably _ Do Pass.





Digest Continued

subject to regulation as a solid waste processing facility, but IDEM may determine whether it be subject to such regulation. Exempts from the definition of "solid waste" the requirement that certain manures or crop residues are returned to the soil at the point of generation. Provides that a statutory water pollution prohibition is not violated by fertilizer material that: (1) is contained in runoff from a storm event or irrigation return flow; (2) enters waters of Indiana as a result of land application of the fertilizer material that is for agricultural purposes, (3) is done at appropriate agronomic rates for proper nutrient uptake in the field, and (4) is documented. Requires certain guidelines under which IDEM may issue a notice of violation. Provides that the state chemist may also adopt rules for distribution and use of fertilizer material to protect waters of the state. Adjusts certain restrictions to pollutants that enter the waters of Indiana contained in land applications that comply with rules adopted by the state chemist. Requires the state chemist to adopt rules before July 1, 2012, concerning the staging and use of organic fertilizer material.



April 5, 2011

First Regular Session 117th General Assembly (2011)


PRINTING CODE. Amendments: Whenever an existing statute (or a section of the Indiana Constitution) is being amended, the text of the existing provision will appear in this style type, additions will appear in this style type, and deletions will appear in this style type.
Additions: Whenever a new statutory provision is being enacted (or a new constitutional provision adopted), the text of the new provision will appear in this style type. Also, the word NEW will appear in that style type in the introductory clause of each SECTION that adds a new provision to the Indiana Code or the Indiana Constitution.
Conflict reconciliation: Text in a statute in this style type or this style type reconciles conflicts between statutes enacted by the 2010 Regular Session of the General Assembly.


ENGROSSED

HOUSE BILL No. 1187



    A BILL FOR AN ACT to amend the Indiana Code concerning environmental law.

Be it enacted by the General Assembly of the State of Indiana:

SOURCE: IC 13-11-2-16.6; (11)EH1187.1.1. -->     SECTION 1. IC 13-11-2-16.6 IS ADDED TO THE INDIANA CODE AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2011]: Sec. 16.6. "Biomass", for purposes of sections 16.7 and 16.8 of this chapter and IC 13-20-10.5, means biological material that is available on a renewable recurring basis and is used as a source of renewable energy, including the following:
        (1) Agricultural crops.
        (2) Agricultural wastes and residues.
        (3) Wood and wood byproducts, including the following:
            (A) Wood residue.
            (B) Forest thinning.
            (C) Mill residue wood.
        (4) Animal wastes and byproducts, including manure.
        (5) Aquatic plants.
        (6) Algae.
        (7) Byproducts of processing agricultural crops.

SOURCE: IC 13-11-2-16.7; (11)EH1187.1.2. -->     SECTION 2. IC 13-11-2-16.7 IS ADDED TO THE INDIANA CODE AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2011]: Sec. 16.7. "Biomass anaerobic digestion facility", for purposes of IC 13-20-10.5:
        (1) means a facility that incorporates equipment that promotes the decomposition of biomass to simple organics and biogas products in the oxygen free environment of a closed, sealed chamber; and
        (2) includes a methane recovery system.

SOURCE: IC 13-11-2-16.8; (11)EH1187.1.3. -->     SECTION 3. IC 13-11-2-16.8 IS ADDED TO THE INDIANA CODE AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2011]: Sec. 16.8. "Biomass gasification facility", for purposes of IC 13-20-10.5, means a facility that incorporates equipment to carry out a thermochemical process that, with little or no oxygen present, converts biomass into a synthesis gas.
SOURCE: IC 13-11-2-40; (11)EH1187.1.4. -->     SECTION 4. IC 13-11-2-40, AS AMENDED BY P.L.127-2009, SECTION 2, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2011]: Sec. 40. "Confined feeding operation" for purposes of IC 13-18-10, means:
        (1) any confined feeding of:
            (A) at least three hundred (300) cattle;
            (B) at least six hundred (600) swine or sheep;
            (C) at least thirty thousand (30,000) fowl; or
            (D) at least five hundred (500) horses.
        (2) any animal feeding operation electing to be subject to IC 13-18-10; or
        (3) any animal feeding operation that is causing a violation of:
            (A) water pollution control laws;
            (B) any rules of the water pollution control board; or
            (C) IC 13-18-10.
A determination by the department under this subdivision is appealable under IC 4-21.5.
SOURCE: IC 13-11-2-71; (11)EH1187.1.5. -->     SECTION 5. IC 13-11-2-71, AS AMENDED BY P.L.127-2009, SECTION 3, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2011]: Sec. 71. "Environmental management laws" refers to the following:
        (1) IC 13-12-2 and IC 13-12-3.
        (2) IC 13-13.
        (3) IC 13-14.
        (4) IC 13-15.
        (5) IC 13-16.
        (6) IC 13-17-3-15, IC 13-17-8-10, IC 13-17-10, and IC 13-17-11.
        (7) IC 13-18-10, IC 13-18-10.5, IC 13-18-12, IC 13-18-13-31, and IC 13-18-15 through IC 13-18-20.
        (8) IC 13-19-1, IC 13-19-4, and IC 13-19-5-17.
        (9) IC 13-20-1, IC 13-20-2, IC 13-20-4 through IC 13-20-15, IC 13-20-17.7, IC 13-20-19 through IC 13-20-21, and IC 13-20-22-21.
        (10) IC 13-22.
        (11) IC 13-23.
        (12) IC 13-24.
        (13) IC 13-25-1 through IC 13-25-5.
        (14) IC 13-27-8.
        (15) IC 13-30, except IC 13-30-1.
SOURCE: IC 13-11-2-79.5; (11)EH1187.1.6. -->     SECTION 6. IC 13-11-2-79.5 IS ADDED TO THE INDIANA CODE AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2011]: Sec. 79.5. "Fertilizer material", for purposes of IC 13-18-4-5, has the meaning set forth in IC 15-16-2-11.
SOURCE: IC 13-11-2-126.5; (11)EH1187.1.7. -->     SECTION 7. IC 13-11-2-126.5 IS ADDED TO THE INDIANA CODE AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2011]: Sec. 126.5. "Manure" means the following:
        (1) Liquid or solid animal excreta.
        (2)
Waste liquid generated at a livestock or poultry production area, including the following:
            (A) Excess drinking water.
            (B) Cleanup water.
            (C) Contaminated livestock truck or trailer washwater.
            (D) Milking parlor wastewater.
            (E) Milk house washwater.
            (F) Egg washwater.
            (G) Silage leachate.
        (3) Any precipitation or surface water that has come into contact with the following:
            (A) Liquid or solid animal excreta.
            (B) Used bedding.
            (C) Litter.
            (D) Liquid described in subdivision (4).
        (4) Any other materials generated at a livestock or poultry production area commingled with the materials listed in subdivisions (1) through (3).

SOURCE: IC 13-11-2-158; (11)EH1187.1.8. -->     SECTION 8. IC 13-11-2-158, AS AMENDED BY P.L.137-2007,

SECTION 6, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2011]: Sec. 158. (a) "Person", for purposes of:
        (1) IC 13-21;
        (2) air pollution control laws;
        (3) water pollution control laws; and
        (4) environmental management laws, except as provided in subsections (c), (d), (e), and (h);
means an individual, a partnership, a copartnership, a firm, a company, a corporation, an association, a joint stock company, a trust, an estate, a municipal corporation, a city, a school city, a town, a school town, a school district, a school corporation, a county, any consolidated unit of government, political subdivision, state agency, a contractor, or any other legal entity.
    (b) "Person", for purposes of:
        (1) IC 13-18-10;
         (2) IC 13-18-10.5;
         (3) IC 13-20-10.5; and
        (2) (4) IC 13-20-17;
means an individual, a partnership, a copartnership, a firm, a company, a corporation, an association, a joint stock company, a trust, an estate, a political subdivision, a state agency, or other legal entity, or their legal representative, agent, or assigns.
    (c) "Person", for purposes of:
        (1) IC 13-20-13;
        (2) IC 13-20-14;
        (3) IC 13-20-16; and
        (4) IC 13-25-6;
means an individual, a corporation, a limited liability company, a partnership, or an unincorporated association.
    (d) "Person", for purposes of IC 13-23, has the meaning set forth in subsection (a). The term includes a consortium, a joint venture, a commercial entity, and the United States government.
    (e) "Person", for purposes of IC 13-20-17.5 and IC 13-25-3, means an individual, a corporation, a limited liability company, a partnership, a trust, an estate, or an unincorporated association.
    (f) "Person", for purposes of IC 13-26, means an individual, a firm, a partnership, an association, a limited liability company, or a corporation other than an eligible entity.
    (g) "Person", for purposes of IC 13-29-1, means any individual, corporation, business enterprise, or other legal entity either public or private and any legal successor, representative, agent, or agency of that individual, corporation, business enterprise, or legal entity.


    (h) "Person", for purposes of IC 13-30-8-1, has the meaning set forth in IC 35-41-1.
SOURCE: IC 13-11-2-196.2; (11)EH1187.1.9. -->     SECTION 9. IC 13-11-2-196.2 IS ADDED TO THE INDIANA CODE AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2011]: Sec. 196.2. (a) "Satellite manure storage structure", for purposes of IC 13-18-10.5, means any of the items listed in subsection (b) that:
        (1) are not located at a livestock or poultry production area; and
        (2) are designed for use in whole or in part for the storage of:
            (A) at least one million (1,000,000) gallons of manure; or
            (B) at least five thousand (5,000) cubic yards of manure.
    (b) The items referred to in subsection (a) are as follows:
        (1) A building.
        (2) A lagoon.
        (3) A pad.
        (4) A pit.
        (5) A pond.
        (6) A tank.

SOURCE: IC 13-11-2-205; (11)EH1187.1.10. -->     SECTION 10. IC 13-11-2-205 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2011]: Sec. 205. (a) "Solid waste", for purposes of IC 13-19, IC 13-21, IC 13-20-22, and environmental management laws, except as provided in subsection (b), means any garbage, refuse, sludge from a waste treatment plant, sludge from a water supply treatment plant, sludge from an air pollution control facility, or other discarded material, including solid, liquid, semisolid, or contained gaseous material resulting from industrial, commercial, mining, or agricultural operations or from community activities. The term does not include:
        (1) solid or dissolved material in:
            (A) domestic sewage; or
            (B) irrigation return flows or industrial discharges;
        that are point sources subject to permits under Section 402 of the Federal Water Pollution Control Act Amendments (33 U.S.C. 1342);
        (2) source, special nuclear, or byproduct material (as defined by the Atomic Energy Act of 1954 (42 U.S.C. 2011 et seq.));
        (3) manures or crop residues returned to the soil at the point of generation as fertilizers or soil conditioners as part of a total farm operation; or
        (4) vegetative matter at composting facilities registered under IC 13-20-10.
    (b) "Solid waste", for purposes of IC 13-20-5, IC 13-20-22, and IC 13-21, does not include the following:
        (1) A waste that is regulated under the following:
            (A) IC 13-22-1 through IC 13-22-8.
            (B) IC 13-22-13 through IC 13-22-14.
        (2) An infectious waste (as defined in IC 16-41-16-4) that is disposed of at an incinerator permitted under rules adopted by the solid waste management board to dispose of infectious waste.
    (c) "Solid waste", for purposes of IC 13-26, means all putrescible and nonputrescible solid and semisolid wastes, except human excreta. The term includes garbage, rubbish, ashes, street cleanings, dead animals, offal, and solid commercial, industrial, and institutional wastes.
SOURCE: IC 13-18-4-5; (11)EH1187.1.11. -->     SECTION 11. IC 13-18-4-5 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2011]: Sec. 5. (a) Except as provided in subsection (b), a person may not:
        (1) throw, run, drain, or otherwise dispose; into any of the streams or waters of Indiana; or
        (2) cause, permit, or suffer to be thrown, run, drained, allowed to seep, or otherwise disposed; into any waters;
into any of the streams or waters of Indiana any organic or inorganic matter that causes or contributes to a polluted condition of any of the streams or waters of Indiana, as determined by a rule of the board adopted under sections 1 and 3 of this chapter.
     (b) Subsection (a) does not apply to organic or inorganic matter that consists of fertilizer material contained in:
        (1) runoff from a storm event; or
        (2) irrigation return flow;
entering the waters of Indiana as a result of land application of fertilizer material in compliance with rules adopted by the state chemist under IC 15-16-2-44.
    (c) The department shall request documentation of compliance with subsection (b) before a notice of violation can be issued.

    (d) A person has thirty (30) days to submit documentation after receiving a request under subsection (c).
    (e) The department may issue a notice of violation for failure to comply with subsection (d). No notice of violation can be issued if the department determines that a person complied with subsection (b).
    (f) Before the rules for land application of fertilizer materials adopted under IC 15-16-2-44 by the state chemist take effect, a person may meet the requirements under subsection (b) if the

person maintains documentation of compliance with:
        (1) the conditions for land application of manure requirements under IC 13-18-10; or
        (2) the National Resources Conservation Services land application standards.
    (g) Subsection (b) does not affect liability for killing wild animals under IC 14-22-10-6.

SOURCE: IC 13-18-10.5; (11)EH1187.1.12. -->     SECTION 12. IC 13-18-10.5 IS ADDED TO THE INDIANA CODE AS A NEW CHAPTER TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2011]:
     Chapter 10.5. Satellite Manure Storage Structures
     Sec. 1. A person may not after June 30, 2011, start:
        (1) construction of a satellite manure storage structure; or
        (2) expansion of a satellite manure storage structure that increases manure containment capacity;
without obtaining the prior approval of the department.

     Sec. 2. The board may adopt rules under IC 4-22-2 and IC 13-14-9 regarding the construction, operation, and maintenance of a satellite manure storage structure.
SOURCE: IC 13-20-10.5; (11)EH1187.1.13. -->     SECTION 13. IC 13-20-10.5 IS ADDED TO THE INDIANA CODE AS A NEW CHAPTER TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2011]:
     Chapter 10.5. Biomass Anaerobic Digestion Facilities and Biomass Gasification Facilities
     Sec. 1. (a) A person may not after June 30, 2011, start:
        (1) construction of:
            (A) a biomass anaerobic digestion facility; or
            (B) a biomass gasification facility; or
        (2) expansion of:
            (A) a biomass anaerobic digestion facility; or
            (B) a biomass gasification facility;
without obtaining prior approval of the department.

     (b) A person who proposes to construct or expand a biomass anaerobic digestion facility or a biomass gasification facility on the premises of a confined feeding operation must obtain the prior approval required under subsection (a) through the approval process for confined feeding operations under IC 13-18-10 and rules implementing that chapter.
    Sec. 2. Except as provided in section 3 of this chapter, a biomass anaerobic digestion facility or a biomass gasification facility for which the only input is biomass is not subject to regulation as a solid waste processing facility.
    Sec. 3. (a) The department may determine that a biomass anaerobic digestion facility or a biomass gasification facility for which the input is a combination of biomass and solid waste is subject to regulation as a solid waste processing facility.
    (b) Anaerobic digestion and gasification facilities required to maintain a permit under IC 13-17 are not required to seek approval under this chapter.
    Sec. 4. The board may adopt rules under IC 4-22-2 and IC 13-14-9 to implement this chapter.

SOURCE: IC 15-16-2-44; (11)EH1187.1.14. -->     SECTION 14. IC 15-16-2-44, AS AMENDED BY P.L.81-2009, SECTION 27, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2011]: Sec. 44. (a) The state chemist may adopt rules under IC 4-22-2 concerning the following:
        (1) The distribution and use of fertilizer material, including standards to protect waters of the state.
        (2) The distribution and storage of bulk fertilizers, including standards for the storage of bulk fertilizers to protect the waters of the state.
    (b) The state chemist shall adopt rules under IC 4-22-2 concerning the following:
        (1) Subject to subsection (d), (e), the establishment of certification and educational programs, as determined by the state chemist, relating to the application of fertilizer material, the transportation of fertilizer material, or both for the following:
            (A) Persons who apply fertilizer material for hire, transport fertilizer material for hire, or both.
            (B) Persons who apply fertilizer material, transport fertilizer material, or both from the following:
                (i) Confined feeding operations (as defined in IC 13-11-2-40).
                (ii) Operations outside Indiana that would be confined feeding operations (as defined in IC 13-11-2-40) if they were located in Indiana.
        (2) The establishment of fees for the certification and education programs established under subdivision (1).
     (c) The state chemist shall adopt rules under IC 4-22-2 before July 1, 2012, concerning the staging, management, and land application of fertilizer material.
    (c) (d) Any fees collected for a certification and educational programs under subsection (b)(1) shall be collected by the state chemist and deposited and administered under section 44.5 of this chapter.
    (d) (e) The state chemist may waive all or part of the certification requirements established under subsection (b)(1) on a reciprocal basis with any state agency or federal agency that has substantially the same certification standards.