Bill Text: IA SF506 | 2015-2016 | 86th General Assembly | Introduced
Bill Title: A bill for an act relating to the construction, erection, maintenance, or operation of electric transmission lines and hazardous liquid pipelines, and including effective date and applicability provisions. (Formerly SSB 1276.)
Sponsorship: Committee Bill
Status: (Introduced - Dead) 2015-06-05 - Referred to Judiciary. S.J. 1122. [SF506 Detail]
Download: Iowa-2015-SF506-Introduced.html
Senate File 506 - Introduced SENATE FILE BY COMMITTEE ON GOVERNMENT OVERSIGHT (SUCCESSOR TO SSB 1276) A BILL FOR 1 An Act relating to the construction, erection, maintenance, 2 or operation of electric transmission lines and hazardous 3 liquid pipelines, and including effective date and 4 applicability provisions. 5 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: TLSB 2646SV (3) 86 rn/sc PAG LIN 1 1 Section 1. Section 478.4, Code 2015, is amended to read as 1 2 follows: 1 3 478.4 Franchise ==== hearing. 1 4 The utilities board shall consider the petition and any 1 5 objections filed to it in the manner provided. It shall 1 6 examine the proposed route or cause any engineer selected 1 7 by it to do so. If a hearing is held on the petition it may 1 8 hear testimony as may aid it in determining the propriety of 1 9 granting the franchise. It may grant the franchise in whole or 1 10 in part upon the terms, conditions, and restrictions, and with 1 11 the modifications as to location and route as may seem to it 1 12 just and proper. Before granting the franchise, the utilities 1 13 board shall make a finding that the proposed line or lines are 1 14 necessary to serve a public use and represents a reasonable 1 15 relationship to an overall plan of transmitting electricity in 1 16 the public interest. In addition, if the petitioner is not 1 17 a public utility, as defined in section 476.1, subsection 3, 1 18 paragraph "a", section 476.1A, or section 476.1B, or an electric 1 19 transmission owner providing electric service directly to a 1 20 public utility or to consumers located in this state, before 1 21 granting the franchise the utilities board shall make a finding 1 22 that the proposed line or lines are recommended in the most 1 23 recent annual report prepared pursuant to section 473.15. A 1 24 franchise shall not become effective until the petitioners 1 25 shall pay, or file an agreement to pay, all costs and expenses 1 26 of the franchise proceeding, whether or not objections are 1 27 filed, including costs of inspections or examinations of the 1 28 route, hearing, salaries, publishing of notice, and any other 1 29 expenses reasonably attributable to it. The funds received 1 30 for the costs and the expenses of the franchise proceeding 1 31 shall be remitted to the treasurer of state for deposit in the 1 32 department of commerce revolving fund created in section 546.12 1 33 as provided in section 476.10. 1 34 Sec. 2. Section 478.6, Code 2015, is amended by adding the 1 35 following new unnumbered paragraph: 2 1 NEW UNNUMBERED PARAGRAPH If the petitioner is not a 2 2 public utility, as defined in section 476.1, subsection 3, 2 3 paragraph "a", section 476.1A, or section 476.1B, or an electric 2 4 transmission owner providing electric service directly to a 2 5 public utility or to consumers located in this state, before 2 6 the petitioner is vested with the power of condemnation the 2 7 utilities board shall require the petitioner to obtain through 2 8 voluntary easements seventy=five percent or more of the 2 9 land needed for the construction, erection, maintenance, and 2 10 operation of the transmission lines, wires, and cables. 2 11 Sec. 3. Section 478.15, Code 2015, is amended by adding the 2 12 following new unnumbered paragraph: 2 13 NEW UNNUMBERED PARAGRAPH If a person, company, or 2 14 corporation having secured a franchise as provided in this 2 15 chapter is vested with the right of eminent domain, and the 2 16 person, company, or corporation is not a public utility as 2 17 defined in section 476.1, subsection 3, paragraph "a", section 2 18 476.1A, or section 476.1B, or an electric transmission owner 2 19 providing electric service directly to a public utility or 2 20 to consumers located in this state, the board may order the 2 21 person, company, or corporation to pay reasonable attorney fees 2 22 to ensure a private owner of land access to legal counsel. 2 23 Upon the conclusion of eminent domain proceedings, the person, 2 24 company, or corporation shall pay all costs of the assessment 2 25 made by the commissioners and reasonable attorney fees and 2 26 costs, including the reasonable cost of one appraisal, incurred 2 27 by the private owner of land if the award of the commissioners 2 28 or the court on appeal exceeds one hundred percent of the 2 29 final offer of the person, company, or corporation prior to 2 30 condemnation, notwithstanding section 6B.33 or any other 2 31 provision to the contrary. 2 32 Sec. 4. Section 478.33, Code 2015, is amended to read as 2 33 follows: 2 34 478.33 Cancellation == complaint procedures. 2 35 1. A person seeking to acquire an easement or other property 3 1 interest for the construction, maintenance or operation of an 3 2 electric transmission line shall: 3 31.a. Allow the landowner or a person serving in a 3 4 fiduciary capacity in the landowner's behalf to cancel any 3 5 agreement granting an easement or other interest by certified 3 6 mail with return requested to the company's principal place 3 7 of business if received by the company within seven days, 3 8 excluding Saturday and Sunday, of the date of the contract 3 9 and inform the landowner or such fiduciary in writing of the 3 10 right to cancel prior to the signing of the agreement by the 3 11 landowner or such fiduciary. 3 122.b. Provide the landowner or a person serving in a 3 13 fiduciary capacity in the landowner's behalf with a form in 3 14 duplicate for the notice of cancellation. 3 153.c. Not record any agreement until after the period for 3 16 cancellation has expired. 3 174.d. Not include in the agreement any waiver of the right 3 18 to cancel in accordance with this section. The landowner or 3 19 a person serving in a fiduciary capacity in the landowner's 3 20 behalf may exercise the right of cancellation only once for 3 21 each transmission line project. 3 22 2. Any complaint that a petitioner that is not a public 3 23 utility, as defined in section 476.1, subsection 3, paragraph 3 24 "a", section 476.1A, or section 476.1B, or an electric 3 25 transmission owner providing electric service directly to a 3 26 public utility or to consumers located in this state, has 3 27 violated this section shall be subject to the investigation 3 28 provisions of section 476.3, subsection 1. 3 29 Sec. 5. Section 479B.9, Code 2015, is amended to read as 3 30 follows: 3 31 479B.9 Final order ==== condition. 3 32 The board may grant a permit in whole or in part upon 3 33 terms, conditions, and restrictions as to location and route 3 34 as it determines to be just and proper. A permit shall not be 3 35 granted to a pipeline company unless the board determines that 4 1 the proposed services will promote the public convenience and 4 2 necessity. In addition, if the pipeline company is seeking 4 3 a permit for a pipeline for crude oil, before granting the 4 4 franchise the board shall make a finding that the proposed 4 5 line or lines are recommended in the most recent annual report 4 6 prepared pursuant to section 473.15. 4 7 Sec. 6. Section 479B.13, Code 2015, is amended to read as 4 8 follows: 4 9 479B.13 Financial condition of permittee == bond. 4 10 Before a permit is granted under this chapter the applicant 4 11 must satisfy the board that the applicant has property within 4 12 this state other than pipelines or underground storage 4 13 facilities, subject to execution of a value in excess of two 4 14 hundred fifty thousand dollars, or the applicant must file 4 15 and maintain with the board a surety bond in the penal sum of 4 16 two hundred fifty thousand dollars with surety approved by 4 17 the board, conditioned that the applicant will pay any and 4 18 all damages legally recovered against it growing out of the 4 19 construction, maintenance, or operation of its pipeline or 4 20 underground storage facilities in this state. If the applicant 4 21 is seeking a permit for a pipeline for crude oil, the value of 4 22 the property or amount of the surety bond shall be five hundred 4 23 thousand dollars or more for each county through which the 4 24 proposed pipeline would be built, as determined by the board. 4 25 When the pipeline company deposits with the board security 4 26 satisfactory to the board as a guaranty for the payment of the 4 27 damages, or furnishes to the board satisfactory proofs of its 4 28 solvency and financial ability to pay the damages, the pipeline 4 29 company is relieved of the provisions requiring bond. 4 30 Sec. 7. Section 479B.16, Code 2015, is amended to read as 4 31 follows: 4 32 479B.16 Eminent domain. 4 33 1. A pipeline company granted a pipeline permit shall 4 34 be vested with the right of eminent domain, to the extent 4 35 necessary and as prescribed and approved by the board, not 5 1 exceeding seventy=five feet in width for right=of=way and 5 2 not exceeding one acre in any one location in addition to 5 3 right=of=way for the location of pumps, pressure apparatus, 5 4 or other stations or equipment necessary to the proper 5 5 operation of its pipeline. The board may grant additional 5 6 eminent domain rights where the pipeline company has presented 5 7 sufficient evidence to adequately demonstrate that a greater 5 8 area is required for the proper construction, operation, and 5 9 maintenance of the pipeline or for the location of pumps, 5 10 pressure apparatus, or other stations or equipment necessary to 5 11 the proper operation of its pipeline. 5 12 2. A pipeline company granted a permit for underground 5 13 storage of hazardous liquid shall be vested with the right of 5 14 eminent domain to the extent necessary and as prescribed and 5 15 approved by the board in order to appropriate for its use for 5 16 the underground storage of hazardous liquid any subsurface 5 17 stratum or formation in any land which the board shall have 5 18 found to be suitable and in the public interest for the 5 19 underground storage of hazardous liquid, and may appropriate 5 20 other interests in property, as may be required adequately to 5 21 examine, prepare, maintain, and operate the underground storage 5 22 facilities. 5 23 3. If the pipeline company is seeking a permit for a 5 24 pipeline for crude oil, before the pipeline company shall be 5 25 vested with the power of condemnation the board shall require 5 26 the pipeline company to obtain through voluntary easements 5 27 seventy=five percent or more of the land needed for the 5 28 construction, operation, and maintenance of the pipeline and 5 29 stations or equipment for the proper operation of the pipeline. 5 30 4. If a pipeline company vested with the right of eminent 5 31 domain is constructing a pipeline for crude oil, the board may 5 32 order the pipeline company to pay reasonable attorney fees to 5 33 ensure a private owner of land access to legal counsel. Upon 5 34 the conclusion of eminent domain proceedings, the pipeline 5 35 company shall pay all costs of the assessment made by the 6 1 commissioners and reasonable attorney fees and costs, including 6 2 the reasonable cost of one appraisal, incurred by the private 6 3 owner of land if the award of the commissioners or the court on 6 4 appeal exceeds one hundred percent of the final offer of the 6 5 pipeline company prior to condemnation, notwithstanding section 6 6 6B.33 and section 479B.30, subsection 6, or any other provision 6 7 to the contrary. 6 8 5. This chapter does not authorize the construction of 6 9 a pipeline longitudinally on, over, or under any railroad 6 10 right=of=way or public highway, or at other than an approximate 6 11 right angle to a railroad track or public highway without 6 12 the consent of the railroad company, the state department of 6 13 transportation, or the county board of supervisors, and this 6 14 chapter does not authorize or give the right of condemnation or 6 15 eminent domain for such purposes. 6 16 Sec. 8. Section 479B.24, Code 2015, is amended to read as 6 17 follows: 6 18 479B.24 Cancellation == complaint procedures. 6 19 1. A pipeline company seeking to acquire an easement or 6 20 other property interest for the construction, maintenance, or 6 21 operation of a pipeline or underground storage facility shall 6 22 do all of the following: 6 231.a. Allow the landowner or a person serving in a 6 24 fiduciary capacity on the landowner's behalf to cancel an 6 25 agreement granting an easement or other interest by restricted 6 26 certified mail to the pipeline company's principal place of 6 27 business if received by the pipeline company within seven days, 6 28 excluding Saturday and Sunday, of the date of the agreement 6 29 and inform the landowner or the fiduciary in writing of the 6 30 right to cancel prior to the signing of the agreement by the 6 31 landowner or the fiduciary. 6 322.b. Provide the landowner or a person serving in a 6 33 fiduciary capacity in the landowner's behalf with a form in 6 34 duplicate for the notice of cancellation. 6 353.c. Not record an agreement until after the period for 7 1 cancellation has expired. 7 24.d. Not include in the agreement a waiver of the right 7 3 to cancel in accordance with this section. The landowner or 7 4 a person serving in a fiduciary capacity in the landowner's 7 5 behalf may exercise the right of cancellation only once for 7 6 each pipeline project. 7 7 2. Any complaint that a pipeline company that is seeking a 7 8 permit for a pipeline for crude oil has violated this section 7 9 shall be subject to the investigation provisions of section 7 10 476.3, subsection 1. 7 11 Sec. 9. Section 479B.30, subsection 6, Code 2015, is amended 7 12 to read as follows: 7 13 6. The pipeline company shall pay all costs of the 7 14 assessment made by the commissioners and reasonable attorney 7 15 fees and costs incurred by the landowner as determined by the 7 16 commissioners if the award of the commissioners exceeds one 7 17 hundred ten percent of the final offer of the pipeline company 7 18 prior to the determination of damages; if the award does not 7 19 exceed one hundred ten percent, the landowners shall pay the 7 20 fees and costs incurred by the pipeline company. The pipeline 7 21 company shall file with the sheriff an affidavit setting forth 7 22 the most recent offer made to the landowner. Commissioners 7 23 shall receive a per diem of fifty dollars and actual and 7 24 necessary expenses incurred in the performance of their 7 25 official duties. The pipeline company shall also pay all costs 7 26 occasioned by the appeal, including reasonable attorney fees 7 27 to be taxed by the court, unless on the trial of the appeal the 7 28 same or a lesser amount of damages is awarded than was allowed 7 29 by the commission from which the appeal was taken. 7 30 Sec. 10. EFFECTIVE UPON ENACTMENT. This Act, being deemed 7 31 of immediate importance, takes effect upon enactment. 7 32 Sec. 11. APPLICABILITY. 7 33 1. The sections of this Act amending sections 478.4, 478.6, 7 34 478.15, and 478.33 are applicable to petitions for franchise 7 35 filed on or after November 1, 2014, that have not been acted 8 1 upon by the utilities board on the effective date of this Act 8 2 and to petitions for franchise filed on or after the effective 8 3 date of this Act. 8 4 2. The sections of this Act amending sections 479B.9, 8 5 479B.13, 479B.16, 479B.24, and 479B.30 are applicable to 8 6 applications for permits filed on or after November 1, 2014, 8 7 that have not been acted upon by the utilities board on the 8 8 effective date of this Act and to applications for permits 8 9 filed on or after the effective date of this Act. 8 10 EXPLANATION 8 11 The inclusion of this explanation does not constitute agreement with 8 12 the explanation's substance by the members of the general assembly. 8 13 This bill relates to the construction, erection, 8 14 maintenance, or operation of electric transmission lines and 8 15 hazardous liquid pipelines. 8 16 The bill primarily applies to petitioners for an electric 8 17 transmission franchise that are not a public utility as 8 18 defined in Code section 476.1 furnishing gas or electricity 8 19 to the public for compensation, a rural electric cooperative, 8 20 or a municipal utility, and to applicants for a permit to 8 21 construct a pipeline for crude oil. In both cases, in order 8 22 to obtain a franchise or a permit the Iowa utilities board 8 23 is required to make a finding that the proposed transmission 8 24 line or crude oil pipeline is recommended in the most recent 8 25 annual report prepared by the economic development authority 8 26 pursuant to Code section 473.15. That report assesses the 8 27 progress of state agencies in implementing energy management 8 28 improvements, alternative and renewable energy systems, and 8 29 life cycle cost analyses under Code chapter 470, and on the use 8 30 of renewable fuels. The report also provides an assessment of 8 31 the economic and environmental impact of the progress made by 8 32 state agencies related to energy management and alternative and 8 33 renewable energy, along with recommendations on technological 8 34 opportunities and policies necessary for continued improvement 8 35 in these areas. 9 1 The bill provides that in order to be granted eminent 9 2 domain authority (power of condemnation), an applicant for a 9 3 franchise (electric transmission lines) or permit (hazardous 9 4 liquid pipelines) must obtain through voluntary easements 75 9 5 percent or more of the land needed, and that if an applicant 9 6 is vested with the right of eminent domain, the board may 9 7 order the applicant to pay reasonable attorney fees to ensure 9 8 a private owner of land access to legal counsel, and upon 9 9 conclusion of the eminent domain proceedings to pay all costs 9 10 of the assessment, attorney fees and costs, and the cost of one 9 11 appraisal if the award exceeds 100 percent of the final offer 9 12 made by the applicant. 9 13 Further, in the event of a complaint that an applicant has 9 14 violated provisions permitting an owner of land to cancel any 9 15 agreement granting an easement or other interest, the applicant 9 16 will be subject to the investigation provisions in current law 9 17 that can lead to a formal proceeding by the Iowa utilities 9 18 board. 9 19 Additionally, with reference to an application for a permit 9 20 for a crude oil pipeline, the surety bond requirement is 9 21 increased from $250,000 to $500,000. 9 22 Finally, with reference to any applicant under Code 9 23 chapter 479B (hazardous liquid pipelines), the bill deletes a 9 24 requirement that a landowner shall pay commissioner assessment 9 25 costs and reasonable attorney fees and other costs in a 9 26 proceeding in response to a petition for the determination of 9 27 construction damages if costs awarded to the landowner do not 9 28 exceed 110 percent. 9 29 The bill takes effect upon enactment and is retroactively 9 30 applicable to November 1, 2014, for petitions for franchise 9 31 under Code chapter 478 and applications for permits under 9 32 Code chapter 479B that have not been acted upon by the Iowa 9 33 utilities board on the effective date of the bill and to 9 34 petitions and permits filed on or after the bill's effective 9 35 date. 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