Bill Text: IA HF565 | 2023-2024 | 90th General Assembly | Amended


Bill Title: A bill for an act relating to specified utility construction project requirements, establishing an interim study committee, and including effective date and applicability provisions. (Formerly HF 368.)

Spectrum: Committee Bill

Status: (Engrossed) 2023-03-28 - Subcommittee: Bousselot, Bisignano, and Dawson. S.J. 707. [HF565 Detail]

Download: Iowa-2023-HF565-Amended.html
House File 565 - Reprinted HOUSE FILE 565 BY COMMITTEE ON JUDICIARY (SUCCESSOR TO HF 368) (As Amended and Passed by the House March 22, 2023 ) A BILL FOR An Act relating to specified utility construction project 1 requirements, establishing an interim study committee, and 2 including effective date and applicability provisions. 3 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 4 HF 565 (2) 90 es/rn/md
H.F. 565 DIVISION I 1 PIPELINE PROJECTS 2 Section 1. Section 479.25, Code 2023, is amended to read as 3 follows: 4 479.25 Damages. 5 1. A pipeline company operating a pipeline or a gas 6 storage area shall have reasonable access to the pipeline or 7 gas storage area for the purpose of constructing, operating, 8 maintaining, or locating pipes, pumps, pressure apparatus or 9 other stations, wells, devices, or equipment used in or upon 10 the pipeline or gas storage area; shall pay the owner of the 11 land for the right of entry and the owner of crops for all 12 damages caused by entering, using, or occupying the land; and 13 shall pay to the owner all damages caused by the completion 14 of construction of the pipeline due to wash or erosion of the 15 soil at or along the location of the pipeline and due to the 16 settling of the soil along and above the pipeline. However, 17 this section shall not prevent the execution of an agreement 18 between the pipeline company and the owner of land or crops 19 with reference to the use of the land. 20 2. A claim for crop yield loss damages pursuant to this 21 section shall not be precluded from renegotiation under section 22 6B.52 on the grounds that the damages were apparent at the time 23 of settlement or on the grounds that more than five years have 24 elapsed since the date of the settlement. 25 Sec. 2. Section 479A.11, Code 2023, is amended to read as 26 follows: 27 479A.11 Damages. 28 1. A pipeline company operating pipelines or underground 29 storage shall be given reasonable access to the pipelines and 30 storage areas for the purpose of constructing, operating, 31 maintaining, or locating their pipes, pumps, pressure 32 apparatus, or other stations, wells, devices, or equipment used 33 in or upon a pipeline or storage area, but shall pay the owner 34 of the lands for the right of entry and the owner of crops on 35 -1- HF 565 (2) 90 es/rn/md 1/ 6
H.F. 565 the land all damages caused by entering, using, or occupying 1 the lands for these purposes; and shall pay to the owner of the 2 lands, after the completion of construction of the pipeline or 3 storage, all damages caused by settling of the soil along and 4 above the pipeline, and wash or erosion of the soil along the 5 pipeline due to the construction of the pipeline. However, 6 this section does not prevent the execution of an agreement 7 with other terms between the pipeline company and the owner of 8 the land or crops with reference to their use. 9 2. A claim for crop yield loss damages pursuant to this 10 section shall not be precluded from renegotiation under section 11 6B.52 on the grounds that the damages were apparent at the time 12 of settlement or on the grounds that more than five years have 13 elapsed since the date of the settlement. 14 Sec. 3. Section 479B.16, subsection 1, Code 2023, is amended 15 to read as follows: 16 1. A pipeline company granted a pipeline permit shall , 17 subject to subsection 4, be vested with the right of eminent 18 domain, to the extent necessary and as prescribed and approved 19 by the board, not exceeding seventy-five feet in width for 20 right-of-way and not exceeding one acre in any one location in 21 addition to right-of-way for the location of pumps, pressure 22 apparatus, or other stations or equipment necessary to 23 the proper operation of its pipeline. The board may grant 24 additional eminent domain rights where the pipeline company 25 has presented sufficient evidence to adequately demonstrate 26 that a greater area is required for the proper construction, 27 operation, and maintenance of the pipeline or for the location 28 of pumps, pressure apparatus, or other stations or equipment 29 necessary to the proper operation of its pipeline. 30 Sec. 4. Section 479B.16, Code 2023, is amended by adding the 31 following new subsection: 32 NEW SUBSECTION . 4. The board shall not grant a liquefied 33 carbon dioxide pipeline company the right of eminent domain 34 under this chapter for an interstate hazardous liquid pipeline 35 -2- HF 565 (2) 90 es/rn/md 2/ 6
H.F. 565 project unless the company acquires at least ninety percent of 1 the affected route miles through voluntary easements or through 2 preexisting easements. The company shall submit regular 3 reports on its progress in acquiring voluntary easements as 4 determined by the board. 5 Sec. 5. Section 479B.20, subsection 5, Code 2023, is amended 6 to read as follows: 7 5. If the pipeline company or its contractor does not 8 comply with the requirements of this section , with the land 9 restoration plan or line location, or with an independent 10 agreement on land restoration executed in accordance with 11 subsection 10 , the county board of supervisors or a landowner 12 may petition the board for an order requiring corrective action 13 to be taken. In addition, the county board of supervisors 14 or a landowner may file a complaint with the board seeking 15 imposition of civil penalties under section 479B.21 . A 16 landowner may supply a copy of the complaint to the county 17 board of supervisors where the complaint originated. 18 Sec. 6. Section 479B.29, Code 2023, is amended to read as 19 follows: 20 479B.29 Particular damage claims. 21 1. Compensable losses shall include , but are not limited to , 22 all of the following: 23 a. Loss or reduced yield of crops or forage on the pipeline 24 right-of-way, whether caused directly by construction or from 25 disturbance of usual farm operations. 26 b. Loss or reduced yield of crops or yield from land near 27 the pipeline right-of-way resulting from lack of timely access 28 to the land or other disturbance of usual farm operations, 29 including interference with irrigation or drainage . 30 c. Fertilizer, lime, or organic material applied by the 31 landowner to restore land disturbed by construction to full 32 productivity. 33 d. Loss of or damage to trees of commercial or other value 34 that occurs at the time of construction, restoration, or at the 35 -3- HF 565 (2) 90 es/rn/md 3/ 6
H.F. 565 time of any subsequent work by the pipeline company. 1 e. The cost of or losses in moving or relocating livestock, 2 and the loss of gain by or the death or injury of livestock 3 caused by the interruption or relocation of normal feeding. 4 f. Erosion and soil compaction on lands attributable to 5 pipeline construction. 6 g. Damage to farm equipment caused by striking a pipeline, 7 debris, or other material reasonably associated with pipeline 8 construction while engaged in normal farming operations as 9 defined in section 480.1 . 10 h. Damage to soil or water conservation structures caused 11 by construction, restoration, or subsequent work by the 12 pipeline company including but not limited to terraces, grassed 13 waterways, water and sediment control basins, ponds, saturated 14 buffers, and biofilters. 15 i. Damage to irrigation or drainage systems caused by 16 construction, restoration, or subsequent work by the pipeline 17 company. 18 2. A claim for damage for future crop deficiency within 19 the easement strip damages incurred under this section shall 20 not be precluded from renegotiation under section 6B.52 on the 21 grounds that it was apparent at the time of settlement unless 22 the settlement expressly releases the pipeline company from 23 claims for damage to the productivity of the soil or on the 24 grounds that more than five years have elapsed since the date 25 of the settlement . The landowner shall notify the pipeline 26 company in writing fourteen days prior to harvest in each year 27 to assess crop deficiency. 28 3. For the purposes of this section, “landowner” also 29 includes a farm tenant. 30 4. A landowner that incurred damage under this section is 31 eligible for compensation for damages. A landowner may file an 32 action for relief against a pipeline company in small claims 33 or district court for a violation of this section or pursue 34 remedies under section 479B.30, subsection 7. 35 -4- HF 565 (2) 90 es/rn/md 4/ 6
H.F. 565 Sec. 7. Section 479B.30, subsection 7, Code 2023, is amended 1 to read as follows: 2 7. As used in this section , “damages” means compensation for 3 damages to the land, crops, and other personal property caused 4 by the construction of a pipeline and its attendant structures 5 or underground storage facility , or a compensable loss as 6 defined in section 479B.29, subsection 1, but does not include 7 compensation for a property interest, and “landowner” includes 8 a farm tenant. 9 Sec. 8. EFFECTIVE DATE. This division of this Act, being 10 deemed of immediate importance, takes effect upon enactment. 11 Sec. 9. APPLICABILITY. This division of this Act applies to 12 all applications for a permit to construct a pipeline pursuant 13 to chapter 479B filed with the Iowa utilities board on or after 14 July 1, 2021, and to permits issued on or after the effective 15 date of this division of this Act. 16 DIVISION II 17 EMINENT DOMAIN INTERIM STUDY 18 Sec. 10. EMINENT DOMAIN INTERIM STUDY. 19 1. The legislative council is requested to authorize a 20 study committee to evaluate eminent domain practices and 21 procedures applicable under Iowa law. The study committee 22 shall make recommendations that the committee believes will 23 improve eminent domain policy in the state including all of the 24 following: 25 a. Standards for entering land for land surveying purposes. 26 b. Review of land restoration standards. 27 c. Review of eminent domain public benefit and private-use 28 tests. 29 d. Engineering study analysis, including all of the 30 following: 31 (1) Engineering study standards, authority, and 32 composition. 33 (2) Analysis of the process of company selection. 34 e. Land compensation practices and procedures. 35 -5- HF 565 (2) 90 es/rn/md 5/ 6
H.F. 565 f. Review of eminent domain processes and procedures. 1 g. Iowa utilities board perspectives. 2 2. The study committee shall consist of five members of 3 the senate, three of whom shall be appointed by the majority 4 leader of the senate and two of whom shall be appointed by 5 the minority leader of the senate, and five members of the 6 house of representatives, three of whom shall be appointed by 7 the speaker of the house of representatives and two of whom 8 shall be appointed by the minority leader of the house of 9 representatives. The legislative council is encouraged to 10 appoint to the interim study committee public members or direct 11 the study committee to seek input from or to appoint members 12 of the public. 13 3. The study committee shall meet during the 2023 14 legislative interim and submit a report containing 15 recommendations to the members of the general assembly by 16 December 15, 2023. 17 -6- HF 565 (2) 90 es/rn/md 6/ 6
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