Bill Text: IA SF2099 | 2023-2024 | 90th General Assembly | Introduced


Bill Title: A bill for an act relating to applications for permits to construct electric transmission lines, pipelines and underground storage facilities, and hazardous liquid pipelines, making penalties applicable, and including effective date and applicability provisions.

Spectrum: Partisan Bill (Republican 9-0)

Status: (Introduced - Dead) 2024-01-31 - Subcommittee: Brown, Bisignano, and Dawson. S.J. 182. [SF2099 Detail]

Download: Iowa-2023-SF2099-Introduced.html
Senate File 2099 - Introduced SENATE FILE 2099 BY GUTH , EVANS , SALMON , ALONS , J. TAYLOR , GREEN , WESTRICH , ROWLEY , and LOFGREN A BILL FOR An Act relating to applications for permits to construct 1 electric transmission lines, pipelines and underground 2 storage facilities, and hazardous liquid pipelines, making 3 penalties applicable, and including effective date and 4 applicability provisions. 5 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 6 TLSB 5459XS (4) 90 lh/js
S.F. 2099 Section 1. Section 476A.7, subsection 1, paragraph b, Code 1 2024, is amended to read as follows: 2 b. Gives the applicant the power of eminent domain to the 3 extent and under such conditions as the board may approve, 4 prescribe and find necessary for the public convenience, use , 5 and necessity , subject to subsection 4 , proceeding in the 6 manner of works of internal improvement under chapter 6B . 7 The burden of proving the necessity for the exercise of the 8 power of eminent domain shall be on the person issued the 9 certificate. 10 Sec. 2. Section 476A.7, Code 2024, is amended by adding the 11 following new subsection: 12 NEW SUBSECTION . 4. The board shall not grant eminent domain 13 rights to a person, company, or corporation having secured a 14 certificate as provided in this chapter unless at least ninety 15 percent of the affected parcels and ninety percent of the total 16 distance of the facility have been acquired through voluntary 17 easements. 18 Sec. 3. Section 478.2, subsection 4, Code 2024, is amended 19 to read as follows: 20 4. A person seeking rights under this chapter shall not 21 negotiate or purchase any easements or other interests in 22 land in any county known to be affected by the proposed 23 project prior to the informational meeting. A person seeking 24 rights under this chapter shall not engage in communication 25 with landowners prior to negotiations without obtaining a 26 landowner’s written consent to the communication. 27 Sec. 4. Section 478.15, subsections 1 and 2, Code 2024, are 28 amended to read as follows: 29 1. Any person, company, or corporation having secured 30 a franchise as provided in this chapter , shall , subject 31 to subsection 1A, thereupon be vested with the right of 32 eminent domain to such extent as the utilities board may 33 approve, prescribe and find to be necessary for public use, 34 not exceeding one hundred feet in width for right-of-way and 35 -1- LSB 5459XS (4) 90 lh/js 1/ 18
S.F. 2099 not exceeding one hundred sixty acres in any one location, 1 in addition to right-of-way, for the location of electric 2 substations to carry out the purposes of said franchise; 3 provided however, that where two hundred kilovolt lines 4 or higher voltage lines are to be constructed, the person, 5 company, or corporation may apply to the board for a wider 6 right-of-way not to exceed two hundred feet, and the board 7 may for good cause extend the width of such right-of-way for 8 such lines to the person, company, or corporation applying for 9 the same. The burden of proving the necessity for public use 10 shall be on the person, company, or corporation seeking the 11 franchise. A homestead site, cemetery, orchard, or schoolhouse 12 location shall not be condemned for the purpose of erecting 13 an electric substation. If agreement cannot be made with the 14 private owner of lands as to damages caused by the construction 15 of said transmission line, or electric substations, the same 16 proceedings shall be taken as provided for taking private 17 property for works of internal improvement. 18 2. Any person, company, or corporation proposing to 19 construct a transmission line or other facility which that 20 involves the taking of property under the right of eminent 21 domain and desiring to enter upon the land, which it proposes 22 to appropriate, for the purpose of examining or surveying the 23 same , shall first file with the utilities board , a written 24 statement under oath setting forth the proposed routing of 25 the line or facility including a description of the lands to 26 be crossed , and the names and addresses of owners, together 27 with request that a permit be issued by the board authorizing 28 the person, company, or corporation or its duly appointed 29 representative to enter upon the land for the purpose of 30 examining and surveying and to take and use on the land 31 any vehicle and surveying equipment necessary in making the 32 survey. The board shall within ten days after the request 33 issue a permit, accompanied by such bond in such amount as the 34 board shall approve pursuant to subsection 2A , to the person, 35 -2- LSB 5459XS (4) 90 lh/js 2/ 18
S.F. 2099 company, or corporation making the application, if in the 1 board’s opinion the application is made in good faith and not 2 for the purpose of harassing the owner of the land. If the 3 board is of the opinion that the application is not made in 4 good faith or made for the purpose of harassment to the owner 5 of the land , the board shall set the matter for hearing. The 6 matter shall be heard not more than twenty days after filing 7 the application. Notice of the time and place of hearing shall 8 be given by the board, to the owner of the land by registered 9 mail with a return receipt requested, not less than ten days 10 preceding the date of hearing. 11 Sec. 5. Section 478.15, Code 2024, is amended by adding the 12 following new subsections: 13 NEW SUBSECTION . 1A. The board shall not grant eminent 14 domain rights to a person, company, or corporation having 15 secured a franchise as provided in this chapter unless at least 16 ninety percent of the affected parcels and ninety percent of 17 the transmission line, wire, or cable’s total distance have 18 been acquired through voluntary easements. 19 NEW SUBSECTION . 2A. Before a person, company, or 20 corporation seeking a franchise is granted a franchise under 21 this chapter, the person, company, or corporation must satisfy 22 the board that the applicant has property within this state 23 other than a transmission line, wire, or cable subject to 24 execution of a value in excess of one million dollars, or the 25 person, company, or corporation must file and maintain with 26 the board a surety bond in the penal sum of the lesser of one 27 million dollars or one percent of the project value with surety 28 approved by the board, conditioned that the person, company, 29 or corporation will pay any and all damages legally recovered 30 against it growing out of the construction or operation of its 31 transmission line, wire, or cable in the state of Iowa. When 32 the person, company, or corporation seeking a franchise under 33 this chapter deposits with the board security satisfactory to 34 the board as a guaranty for the payment of the damages, or 35 -3- LSB 5459XS (4) 90 lh/js 3/ 18
S.F. 2099 furnishes to the board satisfactory proofs of its solvency and 1 financial ability to pay the damages, the person, company, or 2 corporation seeking a franchise under this chapter is relieved 3 of the provisions requiring bond. 4 Sec. 6. NEW SECTION . 478.17A Transmission line operation 5 —— damages. 6 1. Any person, company, or corporation having secured a 7 franchise as provided in this chapter shall be responsible for 8 damages resulting from construction, operation, or maintenance, 9 including damages resulting from an environmental disaster, 10 to local livestock, or other damages attributable to the 11 construction, operation, or maintenance. 12 2. A claim for damage for future crop deficiency within the 13 easement strip shall not be precluded from renegotiation under 14 section 6B.52 on the grounds that it was apparent at the time 15 of settlement. The landowner shall notify the person, company, 16 or corporation seeking the franchise in writing fourteen days 17 prior to harvest in each year to assess crop deficiency or by 18 providing global positioning system yield monitoring data or 19 similar assessment data demonstrating crop deficiency to the 20 company within thirty days of harvest. 21 Sec. 7. NEW SECTION . 478.34 Liability. 22 Notwithstanding any provision in this chapter to the 23 contrary, except where a landowner’s actions constitute gross 24 negligence and the landowner commits critical infrastructure 25 sabotage as defined in section 716.11, the landowner shall not 26 be liable for any damages to a transmission line, wire, or 27 cable. 28 Sec. 8. NEW SECTION . 478.35 Land restoration standard. 29 1. The board, pursuant to chapter 17A, shall adopt rules 30 establishing standards for the restoration of agricultural 31 lands during and after a transmission line, wire, or cable 32 construction. In addition to the requirements of section 33 17A.4, the board shall distribute copies of the notice of 34 intended action and opportunity for oral presentations to each 35 -4- LSB 5459XS (4) 90 lh/js 4/ 18
S.F. 2099 county board of supervisors. Any county board of supervisors 1 may, under the provisions of chapter 17A, and subsequent to 2 the rulemaking proceedings, petition under those provisions 3 for additional rulemaking to establish standards for land 4 restoration after a transmission line, wire, or cable within 5 that county. Upon the request of the petitioning county, the 6 board shall schedule a hearing to consider the merits of the 7 petition. Rules adopted under this section shall not apply to 8 land located within city boundaries unless the land is used for 9 agricultural purposes. Rules adopted under this section shall 10 address, but are not limited to, all of the following subject 11 matters: 12 a. Topsoil separation and replacement. 13 b. Temporary and permanent repair to drain tile. 14 c. Removal of rocks and debris from the right-of-way. 15 d. Restoration of areas of soil compaction. 16 e. Restoration of terraces, waterways, and other erosion 17 control structures. 18 f. Revegetation of untilled land. 19 g. Future installation of drain tile or soil conservation 20 structures. 21 h. Restoration of land slope and contour. 22 i. Restoration of areas used for field entrances and 23 temporary roads. 24 j. Construction in wet conditions. 25 k. Burial of transmission lines or pipelines with at least 26 eight feet of cover to allow for future drainage. 27 l. Designation of a person, company, or corporation seeking 28 a franchise point of contact for landowner inquiries or claims. 29 2. The county board of supervisors shall cause an on-site 30 inspection for compliance with the standards adopted under 31 this section to be performed at any transmission line, wire, 32 or cable construction project in the county. A licensed 33 professional engineer familiar with the standards adopted 34 under this section and registered under chapter 542B shall be 35 -5- LSB 5459XS (4) 90 lh/js 5/ 18
S.F. 2099 responsible for the inspection. A county board of supervisors 1 may contract for the services of a licensed professional 2 engineer for the purposes of the inspection. The reasonable 3 costs of the inspection shall be paid by the person, company, 4 or corporation seeking the franchise. 5 3. If the inspector determines that there has been a 6 violation of the standards adopted under this section, of 7 the land restoration plan, or of an independent agreement on 8 land restoration or line location executed in accordance with 9 subsection 10, the inspector shall give oral notice, followed 10 by written notice, to the person, company, or corporation 11 seeking the franchise and the contractor operating for the 12 person, company, or corporation seeking the franchise and order 13 corrective action to be taken in compliance with the standards. 14 The costs of the corrective action shall be borne by the 15 contractor operating for the person, company, or corporation 16 seeking the franchise. 17 4. An inspector shall adequately inspect underground 18 improvements altered during transmission line, wire, or cable 19 construction. An inspection shall be conducted at the time of 20 the replacement or repair of the underground improvements. An 21 inspector shall be present on the site at all times at each 22 phase and separate activity of the opening of the trench, if 23 applicable, the restoration of underground improvements, and 24 backfilling. The person, company, or corporation seeking 25 the franchise and its contractor shall keep an inspector 26 continually informed of the work schedule and any schedule 27 changes. If proper notice is given, construction shall not 28 be delayed due to an inspector’s failure to be present on the 29 site. 30 5. If the person, company, or corporation seeking 31 the franchise or its contractor does not comply with the 32 requirements of this section, with the land restoration plan 33 or line location, or with an independent agreement on land 34 restoration executed in accordance with subsection 10, the 35 -6- LSB 5459XS (4) 90 lh/js 6/ 18
S.F. 2099 county board of supervisors may petition the board for an order 1 requiring corrective action to be taken. In addition, the 2 county board of supervisors may file a complaint with the board 3 seeking imposition of civil penalties under section 478.29. 4 6. The person, company, or corporation seeking the 5 franchise shall allow landowners and the inspector to view 6 the proposed center line of the transmission line, wire, or 7 cable prior to commencing trenching operations to ensure that 8 construction takes place in its proper location. 9 7. An inspector may temporarily halt the construction 10 if the construction is not in compliance with this chapter 11 and the standards adopted pursuant to this chapter, the land 12 restoration plan, or the terms of an independent agreement 13 with the person, company, or corporation seeking the franchise 14 regarding land restoration or line location executed in 15 accordance with subsection 10, until the inspector consults 16 with the supervisory personnel of the person, company, or 17 corporation seeking the franchise. 18 8. The board shall instruct inspectors appointed by the 19 board of supervisors regarding the content of the statutes 20 and rules and the inspectors’ responsibility to require 21 construction conforming with the standards provided by this 22 chapter. 23 9. A person, company, or corporation having secured a 24 franchise as provided in this chapter shall file with the 25 petition a written land restoration plan showing how the 26 requirements of this section, and of rules adopted pursuant to 27 this section, will be met. The person, company, or corporation 28 seeking the franchise shall provide copies of the plan to 29 all landowners of property that will be disturbed by the 30 construction. 31 10. This section does not preclude the application of 32 provisions for protecting or restoring property that are 33 different than those prescribed in this section, in rules 34 adopted under this section, or in the land restoration plan 35 -7- LSB 5459XS (4) 90 lh/js 7/ 18
S.F. 2099 if the alternative provisions are contained in agreements 1 independently executed by the person, company, or corporation 2 seeking the franchise and the landowner, and if the alternative 3 provisions are not inconsistent with state law or with 4 rules adopted by the board. Independent agreements on land 5 restoration or line location between the landowner and person, 6 company, or corporation seeking the franchise shall be in 7 writing and a copy provided to the county inspector. 8 Sec. 9. Section 479.5, subsection 5, Code 2024, is amended 9 to read as follows: 10 5. A pipeline company seeking rights under this chapter 11 shall not negotiate or purchase any easements or other 12 interests in land in any county known to be affected by 13 the proposed project prior to the informational meeting. A 14 pipeline company seeking rights under this chapter shall not 15 engage in communication with landowners prior to negotiations 16 without obtaining a landowner’s written consent to the 17 communication. 18 Sec. 10. Section 479.7, Code 2024, is amended by adding the 19 following new subsection: 20 NEW SUBSECTION . 3. Upon the filing of the petition, a 21 pipeline company shall provide notice of such filing served by 22 certified mail to landowners. 23 Sec. 11. Section 479.24, subsection 1, Code 2024, is amended 24 to read as follows: 25 1. A pipeline company granted a pipeline permit under 26 this chapter shall , subject to subsection 3, be vested 27 with the right of eminent domain to the extent necessary 28 and as prescribed and approved by the board, not exceeding 29 seventy-five feet in width for right-of-way and not exceeding 30 one acre in any one location in addition to right-of-way for 31 the location of pumps, pressure apparatus, or other stations or 32 equipment necessary to the proper operation of its pipeline. 33 The board may grant additional eminent domain rights where 34 the pipeline company has presented sufficient evidence to 35 -8- LSB 5459XS (4) 90 lh/js 8/ 18
S.F. 2099 adequately demonstrate that a greater area is required for the 1 proper construction, operation, and maintenance of the pipeline 2 or for the location of pumps, pressure apparatus, or other 3 stations or equipment necessary to the proper operation of its 4 pipeline. 5 Sec. 12. Section 479.24, Code 2024, is amended by adding the 6 following new subsection: 7 NEW SUBSECTION . 3. The board shall not grant eminent 8 domain rights to a pipeline company seeking a permit under this 9 section unless at least ninety percent of the affected parcels 10 and ninety percent of the pipeline project’s total distance 11 have been acquired through voluntary easements. 12 Sec. 13. Section 479.25, Code 2024, is amended to read as 13 follows: 14 479.25 Damages. 15 1. A pipeline company operating a pipeline or a gas 16 storage area shall have reasonable access to the pipeline or 17 gas storage area for the purpose of constructing, operating, 18 maintaining, or locating pipes, pumps, pressure apparatus or 19 other stations, wells, devices, or equipment used in or upon 20 the pipeline or gas storage area; shall pay the owner of the 21 land for the right of entry and the owner of crops for all 22 damages caused by entering, using, or occupying the land; and 23 shall pay to the owner all damages caused by the completion 24 of construction of the pipeline due to wash or erosion of the 25 soil at or along the location of the pipeline and due to the 26 settling of the soil along and above the pipeline. However, 27 this section shall not prevent the execution of an agreement 28 between the pipeline company and the owner of land or crops 29 with reference to the use of the land. 30 2. A pipeline company operating a pipeline or a gas 31 storage area shall be responsible for damages resulting from 32 construction, operation, or maintenance, including damages 33 resulting from an environmental disaster, to local livestock, 34 or other damages attributable to the construction, operation, 35 -9- LSB 5459XS (4) 90 lh/js 9/ 18
S.F. 2099 or maintenance. 1 Sec. 14. Section 479.26, Code 2024, is amended to read as 2 follows: 3 479.26 Financial condition of permittee —— bond. 4 Before any permit is granted under this chapter the 5 applicant must satisfy the board that the applicant has 6 property within this state other than pipelines, subject to 7 execution of a value in excess of two hundred fifty thousand 8 one million dollars, or the applicant must file and maintain 9 with the board a surety bond in the penal sum of two hundred 10 fifty thousand the lesser of one million dollars or one 11 percent of the project value with surety approved by the board, 12 conditioned that the applicant will pay any and all damages 13 legally recovered against it growing out of the construction 14 or operation of its pipeline and gas storage facilities in the 15 state of Iowa. When the pipeline company deposits with the 16 board security satisfactory to the board as a guaranty for the 17 payment of the damages, or furnishes to the board satisfactory 18 proofs of its solvency and financial ability to pay the 19 damages, the pipeline company is relieved of the provisions 20 requiring bond. 21 Sec. 15. NEW SECTION . 479.35 Liability. 22 Notwithstanding any provision in this chapter to the 23 contrary, except where a landowner’s actions constitute gross 24 negligence and the landowner commits critical infrastructure 25 sabotage as defined in section 716.11, the landowner shall not 26 be liable for any damages to a pipeline or gas storage area. 27 Sec. 16. Section 479.45, subsection 2, Code 2024, is amended 28 to read as follows: 29 2. A claim for damage for future crop deficiency within 30 the easement strip shall not be precluded from renegotiation 31 under section 6B.52 on the grounds that it was apparent at the 32 time of settlement unless the settlement expressly releases the 33 pipeline company from claims for damage to the productivity of 34 the soil . The landowner shall notify the company in writing 35 -10- LSB 5459XS (4) 90 lh/js 10/ 18
S.F. 2099 fourteen days prior to harvest in each year to assess crop 1 deficiency or by providing global positioning system yield 2 monitoring data or similar assessment data demonstrating crop 3 deficiency to the company within thirty days of harvest . 4 Sec. 17. Section 479B.4, subsection 6, Code 2024, is amended 5 to read as follows: 6 6. A pipeline company seeking rights under this chapter 7 shall not negotiate or purchase an easement or other interest 8 in land in a county known to be affected by the proposed 9 project prior to the informational meeting. A pipeline 10 company seeking rights under this chapter shall not engage in 11 communication with landowners prior to negotiations without 12 obtaining a landowner’s written consent to the communication. 13 Sec. 18. Section 479B.6, Code 2024, is amended by adding the 14 following new subsection: 15 NEW SUBSECTION . 3. Upon the filing of the petition, a 16 pipeline company shall provide notice of such filing served by 17 certified mail to landowners. 18 Sec. 19. Section 479B.13, Code 2024, is amended to read as 19 follows: 20 479B.13 Financial condition of permittee —— bond. 21 Before a permit is granted under this chapter the applicant 22 must satisfy the board that the applicant has property within 23 this state other than pipelines or underground storage 24 facilities, subject to execution of a value in excess of two 25 hundred fifty thousand one million dollars, or the applicant 26 must file and maintain with the board a surety bond in the 27 penal sum of two hundred fifty thousand the lesser of one 28 million dollars or one percent of the project value with surety 29 approved by the board, conditioned that the applicant will pay 30 any and all damages legally recovered against it growing out 31 of the construction, maintenance, or operation of its pipeline 32 or underground storage facilities in this state. When the 33 pipeline company deposits with the board security satisfactory 34 to the board as a guaranty for the payment of the damages, or 35 -11- LSB 5459XS (4) 90 lh/js 11/ 18
S.F. 2099 furnishes to the board satisfactory proofs of its solvency and 1 financial ability to pay the damages, the pipeline company is 2 relieved of the provisions requiring bond. 3 Sec. 20. Section 479B.16, subsection 1, Code 2024, is 4 amended to read as follows: 5 1. A pipeline company granted a pipeline permit shall , 6 subject to subsection 4, be vested with the right of eminent 7 domain, to the extent necessary and as prescribed and approved 8 by the board, not exceeding seventy-five feet in width for 9 right-of-way and not exceeding one acre in any one location in 10 addition to right-of-way for the location of pumps, pressure 11 apparatus, or other stations or equipment necessary to 12 the proper operation of its pipeline. The board may grant 13 additional eminent domain rights where the pipeline company 14 has presented sufficient evidence to adequately demonstrate 15 that a greater area is required for the proper construction, 16 operation, and maintenance of the pipeline or for the location 17 of pumps, pressure apparatus, or other stations or equipment 18 necessary to the proper operation of its pipeline. 19 Sec. 21. Section 479B.16, Code 2024, is amended by adding 20 the following new subsection: 21 NEW SUBSECTION . 4. The board shall not grant eminent 22 domain rights to a pipeline company seeking a permit under this 23 section unless at least ninety percent of the affected parcels 24 and ninety percent of the pipeline project’s total distance 25 have been acquired through voluntary easements. 26 Sec. 22. Section 479B.17, Code 2024, is amended to read as 27 follows: 28 479B.17 Damages. 29 1. A pipeline company operating a pipeline or an 30 underground storage facility shall have reasonable access to 31 the pipeline or underground storage facility for the purpose 32 of constructing, operating, maintaining, or locating pipes, 33 pumps, pressure apparatus, or other stations, wells, devices, 34 or equipment used in or upon the pipeline or underground 35 -12- LSB 5459XS (4) 90 lh/js 12/ 18
S.F. 2099 storage facility. A pipeline company shall pay the owner of 1 the land for the right of entry and the owner of crops for all 2 damages caused by entering, using, or occupying the lands and 3 shall pay to the owner all damages caused by the completion 4 of construction of the pipeline due to wash or erosion of the 5 soil at or along the location of the pipeline and due to the 6 settling of the soil along and above the pipeline. However, 7 this section does not prevent the execution of an agreement 8 between the pipeline company and the owner of the land or crops 9 with reference to the use of the land. 10 2. A pipeline company operating a pipeline or an underground 11 storage facility shall be responsible for damages resulting 12 from construction, operation, or maintenance, including damages 13 resulting from an environmental disaster, to local livestock, 14 or other damages attributable to the construction, operation, 15 or maintenance. 16 Sec. 23. Section 479B.29, subsection 2, Code 2024, is 17 amended to read as follows: 18 2. A claim for damage for future crop deficiency within 19 the easement strip shall not be precluded from renegotiation 20 under section 6B.52 on the grounds that it was apparent at the 21 time of settlement unless the settlement expressly releases the 22 pipeline company from claims for damage to the productivity of 23 the soil . The landowner shall notify the pipeline company in 24 writing fourteen days prior to harvest in each year to assess 25 crop deficiency or by providing global positioning system yield 26 monitoring data or similar assessment data demonstrating crop 27 deficiency to the company within thirty days of harvest . 28 Sec. 24. NEW SECTION . 479B.34 Liability. 29 Notwithstanding any provision in this chapter to the 30 contrary, except where a landowner’s actions constitute gross 31 negligence and the landowner commits critical infrastructure 32 sabotage as defined in section 716.11, the landowner shall not 33 be liable for any damages to a pipeline or gas storage area. 34 Sec. 25. EFFECTIVE DATE. This Act, being deemed of 35 -13- LSB 5459XS (4) 90 lh/js 13/ 18
S.F. 2099 immediate importance, takes effect upon enactment. 1 Sec. 26. APPLICABILITY. 2 1. The following apply to applications for a permit 3 submitted pursuant to chapters 478, 479, and 479B prior to, on, 4 or after the effective date of this Act: 5 a. The section of this Act enacting section 478.17A. 6 b. The section of this Act enacting section 478.34. 7 c. The section of this Act amending section 479.25. 8 d. The section of this Act enacting section 479.35. 9 e. The section of this Act amending section 479B.17. 10 f. The section of this Act enacting section 479B.34. 11 2. Remaining sections of this Act apply to applications for 12 a permit submitted pursuant to Code chapters 476A, 478, 479, 13 and 479B regarding which the first informational meeting for a 14 petition is held on or after the effective date of this Act. 15 EXPLANATION 16 The inclusion of this explanation does not constitute agreement with 17 the explanation’s substance by the members of the general assembly. 18 This bill relates to applications for permits to construct 19 electric transmission lines, pipelines and underground storage, 20 and hazardous liquid pipelines under the purview of the Iowa 21 utilities board (board). 22 The bill modifies eminent domain rights for matters under 23 Code chapter 476A (electric power generation and transmission), 24 Code chapter 478 (electric transmission lines), Code chapter 25 479 (pipelines and underground gas storage), and Code chapter 26 479B (hazardous liquid pipelines and storage facilities). The 27 bill requires landowner communication consent, specified surety 28 bond amounts, liability, and damage provisions for permits 29 under the respective Code sections. 30 The bill prohibits the board from granting eminent domain 31 rights to an entity seeking those rights under Code chapters 32 476A, 478, 479, and 479B unless at least 90 percent of the 33 affected parcels and 90 percent of the area of the proposed 34 project are first acquired through voluntary easements. 35 -14- LSB 5459XS (4) 90 lh/js 14/ 18
S.F. 2099 The bill requires a person, company, or corporation seeking 1 a franchise under Code chapter 478 to satisfy a bond amount 2 with the board. The franchise must satisfy the board that the 3 franchisee has property in the state of a value over 4 $1 million (not including the value of the proposed project) 5 or file and maintain with the board a surety bond of $1 million 6 or 1 percent of the project value with surety approved by 7 the board, conditioned that the franchisee will pay any and 8 all damages legally recovered against it growing out of the 9 construction or operation of the project in the state. When 10 a franchisee deposits security satisfactory to the board as a 11 guaranty for the payment of the damages or furnishes to the 12 board satisfactory proofs of its solvency and financial ability 13 to pay the damages, the franchisee shall be relieved of the 14 provisions requiring bond. 15 The bill prohibits persons seeking rights to construct 16 projects under Code chapter 478, 479, or 479B from contacting 17 landowners regarding negotiations for land acquisition without 18 first obtaining the landowner’s written consent allowing 19 communication. A person, company, or corporation seeking 20 to acquire an easement or other property interest shall not 21 contact a landowner unless first provided written consent by 22 the landowner. 23 The bill adds provisions to Code chapters 478, 479, and 24 479B requiring a person seeking to construct projects under 25 those chapters to be held liable for damages resulting from 26 construction, operation, or maintenance, including damages 27 resulting from an environmental disaster, to local livestock, 28 or other damages attributable to the construction, operation, 29 or maintenance. 30 The bill provides that a claim for damages related to 31 future crop deficiency within an easement strip under Code 32 chapter 478 shall not be precluded from renegotiation under 33 Code section 6B.52 relating to eminent domain procedure for 34 the renegotiation of damages. The landowner shall notify the 35 -15- LSB 5459XS (4) 90 lh/js 15/ 18
S.F. 2099 franchisee in writing 14 days prior to harvest in each year 1 to assess crop deficiency or by providing global positioning 2 system yield monitoring data or similar assessment data 3 demonstrating crop deficiency to the company within 30 4 days of harvest. The bill modifies claims for future crop 5 deficiency damages pursuant to Code chapters 479 and 479B to 6 allow a landowner to notify a company in writing by providing 7 global positioning system yield monitoring data or similar 8 assessment data demonstrating crop deficiency to the company 9 within 30 days of harvest, and strikes language providing 10 that a settlement may expressly release a company from soil 11 productivity damage claims. 12 The bill creates new provisions relating to landowner 13 liability in Code chapters 478, 479, and 479B. The bill 14 provides that except where a landowner’s actions constitute 15 gross negligence and the landowner commits critical 16 infrastructure sabotage as defined in Code section 716.11 17 (relating to critical infrastructure sabotage definitions), 18 the landowner shall not be liable for any damages to a project 19 permitted under Code chapters 478, 479, and 479B. 20 The bill includes provisions relating to land restoration 21 standards. The bill adds a land restoration section in 22 Code chapter 478 that mirrors land restoration standards in 23 Code chapters 479 and 479B. The new Code section includes 24 requirements that the board adopt rules related to the 25 restoration of agricultural lands during and after transmission 26 line, wire, or cable construction and distribute notice of 27 intended actions to county boards of supervisors. Rules 28 shall include subject matters relating to topsoil, temporary, 29 permanent, and future drain tile issues, removal of rocks 30 and debris, soil compaction, terraces, waterways, and other 31 erosion control structures, revegetation, restoration of land 32 slope and contour, restoration of field entrance and temporary 33 road areas, construction in wet conditions, burial depths 34 for transmission lines and pipelines, and designation of a 35 -16- LSB 5459XS (4) 90 lh/js 16/ 18
S.F. 2099 franchisee point of contact. 1 The bill provides that a county board of supervisors may 2 require an on-site compliance inspection at any time to be 3 performed by a specialized licensed professional engineer. 4 The reasonable costs of the inspection shall be paid by the 5 franchisee. Notice of a violation relating to provisions 6 regarding land restoration, the land restoration plan created 7 by the franchisee and submitted to the board, or of an 8 independent agreement shall be given to the franchisee or a 9 contractor for the franchisee. Corrective action shall be 10 taken by the franchisee and the costs of the corrective action 11 shall be borne by the contractor of the franchisee. 12 The bill provides that a franchisee shall file a written 13 land restoration plan with their petition. The franchisee 14 shall provide copies of the plan to all landowners of property 15 that will be disturbed by the construction. The bill does not 16 preclude additional means of land protection or restoration 17 in addition to the plan, rules regarding the plan, or other 18 written agreements. 19 The bill provides that an inspector shall adequately 20 inspect underground improvements altered during transmission 21 line, wire, or cable construction, and the inspection shall 22 be conducted at the time of the replacement or repair of the 23 underground improvements. Additionally, an inspector shall 24 be present on-site at all times and the franchisee and its 25 contractor shall keep an inspector continually informed of 26 the work schedule and any schedule changes. The county board 27 of supervisors may petition the board for an order requiring 28 corrective action to be taken where the franchisee or its 29 contractor is in noncompliance. In addition, the county 30 board of supervisors may file a complaint with the board 31 seeking imposition of civil penalties of not more than $100 32 per violation or $1,000 per day of a continuing violation, 33 whichever is greater, under Code section 478.29. 34 The bill provides that a franchisee shall allow landowners 35 -17- LSB 5459XS (4) 90 lh/js 17/ 18
S.F. 2099 and the inspector to view the proposed center line of the 1 transmission line, wire, or cable prior to commencing trenching 2 operations to ensure that construction takes place in its 3 proper location, and an inspector may temporarily halt the 4 construction for noncompliance until the inspector consults 5 with the supervisory personnel of the franchisee. The board 6 shall instruct appointed inspectors of the content of the 7 statutes and rules and the inspectors’ responsibility to 8 require compliant construction. 9 The bill modifies surety bond amounts for projects 10 constructed pursuant to Code chapters 479 and 479B. The 11 bill changes the amount that an applicant for a permit shall 12 demonstrate in property value (other than pipelines) in excess 13 of $1 million from $250,000. The bill also requires the 14 applicant to file and maintain with the board a surety bond 15 of $1 million or 1 percent of the project value, whichever is 16 lesser, from a surety bond of $250,000. 17 The bill is effective upon enactment and includes 18 applicability provisions. The bill applies to an application 19 for a permit pursuant to Code chapters 476A, 478, 479, and 20 479B where the first informational meeting for a petition is 21 held on or after the effective date of the bill, except where 22 otherwise provided. For sections of the bill relating to 23 liability regarding a landowner’s gross negligence and critical 24 infrastructure sabotage and sections of the bill regarding 25 petitioner responsibility for damages under Code chapters 26 478, 479, and 479B, the bill shall apply retroactively to all 27 applications for a permit under those Code chapters. 28 -18- LSB 5459XS (4) 90 lh/js 18/ 18
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