Bill Text: IA SF2160 | 2021-2022 | 89th General Assembly | Introduced


Bill Title: A bill for an act relating to certain actions of utility companies and the Iowa utilities board and including applicability provisions.

Spectrum: Partisan Bill (Republican 1-0)

Status: (Introduced - Dead) 2022-02-14 - Subcommittee Meeting: 02/15/2022 2:00PM Room G15. [SF2160 Detail]

Download: Iowa-2021-SF2160-Introduced.html
Senate File 2160 - Introduced SENATE FILE 2160 BY J. TAYLOR A BILL FOR An Act relating to certain actions of utility companies and the 1 Iowa utilities board and including applicability provisions. 2 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 3 TLSB 5862XS (4) 89 md/jh
S.F. 2160 Section 1. Section 6A.21, subsection 2, Code 2022, is 1 amended to read as follows: 2 2. The limitation on the definition of public use, 3 public purpose, or public improvement does not apply to the 4 establishment, relocation, or improvement of a road pursuant 5 to chapter 306 , or to the establishment of a railway under the 6 supervision of the department of transportation as provided 7 in section 327C.2 , or to an airport as defined in section 8 328.1 , or to land acquired in order to replace or mitigate land 9 used in a road project when federal law requires replacement 10 or mitigation , or a project undertaken by a public utility 11 as defined in section 476.1, subsection 3 . This limitation 12 also does not apply to utilities, persons, companies, or 13 corporations under the jurisdiction of the Iowa utilities 14 board in the department of commerce or to any other utility 15 conferred the right by statute to condemn private property or 16 to otherwise exercise the power of eminent domain, except to 17 the extent such purpose includes construction of aboveground 18 merchant lines. 19 Sec. 2. Section 6A.22, subsection 2, paragraph a, 20 subparagraph (2), Code 2022, is amended to read as follows: 21 (2) The acquisition of any interest in property necessary to 22 the function of a public or private utility to the extent such 23 purpose does not include construction of aboveground merchant 24 lines, or necessary to the function of a common carrier or an 25 airport or airport system. 26 Sec. 3. Section 479B.2, Code 2022, is amended by adding the 27 following new subsection: 28 NEW SUBSECTION . 4A. “Public convenience and necessity” 29 means that the services to be provided by the pipeline are 30 necessary to assure an economical and reliable supply of the 31 hazardous liquid and that those services benefit members of 32 the general public who will be served by the product being 33 transported in the pipeline. 34 Sec. 4. Section 479B.11, subsection 1, Code 2022, is amended 35 -1- LSB 5862XS (4) 89 md/jh 1/ 4
S.F. 2160 to read as follows: 1 1. If the board enters into agreements with the United 2 States department of transportation pursuant to section 3 479B.23 , a pipeline company shall pay an annual fee of fifty 4 cents one dollar per mile of pipeline or fraction thereof for 5 each inch of diameter of the pipeline located in the state. 6 The inspection fee shall be paid to the board between January 1 7 and February 1 for the calendar year. 8 Sec. 5. APPLICABILITY. The following apply to projects or 9 condemnation proceedings commenced on or after July 1, 2022: 10 1. The section of this Act amending section 6A.21, 11 subsection 2. 12 2. The section of this Act amending section 6A.22, 13 subsection 2, paragraph “a”, subparagraph (2). 14 Sec. 6. APPLICABILITY. The following applies to decisions 15 of the utilities board under chapter 479B on or after July 1, 16 2022: 17 The section of this Act amending section 479B.2. 18 Sec. 7. APPLICABILITY. The following applies to fees 19 imposed under section 479B.11, subsection 1, on or after July 20 1, 2022: 21 The section of this Act amending section 479B.11, subsection 22 1. 23 EXPLANATION 24 The inclusion of this explanation does not constitute agreement with 25 the explanation’s substance by the members of the general assembly. 26 This bill relates to certain actions of utility companies 27 and the Iowa utilities board. 28 Generally, under Code chapter 6A, the authority of an 29 acquiring agency to condemn any private property through 30 eminent domain may only be exercised for a public purpose, 31 public use, or public improvement. However, Code section 32 6A.21 provides that “public use” or “public purpose” or 33 “public improvement” does not include the authority to 34 condemn agricultural land for private development purposes 35 -2- LSB 5862XS (4) 89 md/jh 2/ 4
S.F. 2160 unless the owner of the agricultural land consents to the 1 condemnation. Under current law, this limitation on the 2 definition of “public use” or “public purpose” or “public 3 improvement” does not apply to utilities, persons, companies, 4 or corporations under the jurisdiction of the Iowa utilities 5 board or to any other utility conferred the right by statute 6 to condemn private property or to otherwise exercise the power 7 of eminent domain, except to the extent such purpose includes 8 construction of aboveground merchant lines. The bill strikes 9 this exclusion relating to utilities and persons or entities 10 under the jurisdiction of the Iowa utilities board and instead 11 provides that the limitation on the definition of “public 12 use” or “public purpose” or “public improvement” relating 13 to the prohibition against condemnation of agricultural 14 property does not apply to a project undertaken by a public 15 utility, as defined in Code section 476.1. The prohibition 16 on the condemnation of agricultural land for the construction 17 of aboveground merchant lines remains by operation of the 18 definition of “private development purposes” in Code section 19 6A.21. 20 The bill also amends the portion of the definition of “public 21 use”, “public purpose”, or “public improvement” under Code 22 section 6A.22 to exclude the acquisition of any interest in 23 property necessary to the function of a private utility or a 24 common carrier. 25 The bill adds a definition of “public convenience and 26 necessity” to Code chapter 479B, which governs the granting of 27 permits for a pipeline company doing business in this state 28 to construct, maintain, and operate a pipeline. Under Code 29 section 479B.9, the Iowa utilities board shall not grant a 30 permit unless the board determines that the proposed services 31 will promote the public convenience and necessity. 32 If the utilities board enters into agreements with the 33 United States department of transportation for the inspection 34 of pipelines to determine compliance with certain standards, 35 -3- LSB 5862XS (4) 89 md/jh 3/ 4
S.F. 2160 Code section 479B.11 requires each pipeline company to pay an 1 annual fee of $0.50 per mile of pipeline or fraction thereof 2 for each inch of diameter of the pipeline located in this 3 state. The bill increases the rate of the fee from $0.50 to 4 $1.00. 5 The bill includes applicability provisions. 6 -4- LSB 5862XS (4) 89 md/jh 4/ 4
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