Senate Bill 556 Summary

• Requires prior departmental approval before starting construction of a confined animal feeding operation (CAFO) or confined feeding operation, or before expanding either type of operation in ways that increase animal or manure containment capacity.

• Mandates financial assurance requirements for confined feeding operations and CAFOs to cover closure, postclosure monitoring, spill response, and compensation for bodily injury or property damage from accidental or intentional releases.

• Allows financial assurance to be satisfied through bonds, certificates of deposit, letters of credit, insurance policies, trust funds, financial self-insurance tests, or corporate guarantees in amounts to be established by rule.

• Requires the water pollution control board to adopt rules setting graduated financial assurance amounts based on animal capacity before January 1, 2012, with larger operations subject to higher liability requirements.

• Applies financial assurance requirements to persons with pending or future applications for CAFO approval and National Pollutant Discharge Elimination System (NPDES) permits, with submission deadlines ranging from application filing to July 1, 2012.