H.F. 2389 Section 1. NEW SECTION . 558B.1 Definitions. 1 As used in this chapter, unless the context otherwise 2 requires: 3 1. “Land” means real estate, any fixtures, and airspace 4 above the real estate. 5 2. “Landholder” means a person holding a legal or equitable 6 interest in land, including as a titleholder, leaseholder, or 7 beneficiary. 8 3. “Developer” means a person who acquires an interest in 9 land for purposes of constructing a wind energy facility. 10 4. “Wind energy facility” means a structure or equipment 11 which has the primary purpose of supporting the generation and 12 delivery of electricity of at least two megawatts powered by 13 wind, and includes but is not limited to any of the following: 14 a. Primary structures or equipment such as foundations, 15 walls, towers, supports, turbines, and blades. 16 b. Ancillary structures or equipment such as buildings, 17 driveways, roadways, lots, ditches, fences, gates, transmission 18 or distribution lines, and substations. 19 5. “Wind energy facility agreement” or “agreement” means a 20 written arrangement in which a landholder transfers, conveys, 21 or relinquishes an interest in land to a developer who acquires 22 such interest and any attendant rights for the purpose of 23 constructing a wind energy facility. 24 Sec. 2. NEW SECTION . 558B.2 Special terms. 25 1. A wind energy facility agreement may be in the form of a 26 servitude, covenant, easement, deed restriction or condition, 27 lease, lease purchase, lease option, contract, or contract 28 option. The agreement shall be deemed to be an easement which 29 shall run with the land benefited and burdened and shall 30 terminate upon the conditions stated in the agreement. 31 2. Construction of a wind energy facility commences upon 32 the modification of a site to install permanent structures 33 and equipment associated with the wind energy facility. 34 Construction does not commence upon the occurrence of any of 35 -1- LSB 5883YH (5) 83 da/nh 1/ 4

H.F. 2389 the following: 1 a. Performance of engineering services or environmental 2 studies. 3 b. Site preparation, including the removal of crops, 4 trees, brush, or other vegetative growth; the construction 5 of a driveway or road; general earth moving for leveling or 6 compacting; or the installation of temporary utility services. 7 Sec. 3. NEW SECTION . 558B.3 Wind energy facility agreement 8 —— confidentiality provisions void. 9 A provision in a wind energy facility agreement that 10 restricts a landholder who is a party to the agreement from 11 disclosing the terms and conditions of the agreement is 12 severable, void, and unenforceable. 13 1. The confidentiality provision is void whether the 14 confidentiality provision is express or implied; oral 15 or written; required or conditional; or contained in the 16 agreement, or in a related document. 17 2. This section does not affect other provisions of a wind 18 energy facility agreement or a related document which can be 19 given effect without the voided provision. 20 3. This section does not require a party to an agreement to 21 divulge information in the agreement to another person. 22 Sec. 4. NEW SECTION . 558B.4 Wind energy facility agreement 23 —— construction time limit. 24 A wind energy facility agreement terminates if construction 25 of the wind energy facility has not commenced within three 26 years after the effective date of the agreement. However, this 27 period may be extended in writing by the parties. 28 Sec. 5. NEW SECTION . 558B.5 Wind energy facility agreement 29 —— financial assurance for decommissioning. 30 1. A wind energy facility agreement shall include a 31 financial assurance for decommissioning the wind energy 32 facility, which the developer shall have in place prior to 33 construction. 34 2. The amount of financial assurance shall be sufficient to 35 -2- LSB 5883YH (5) 83 da/nh 2/ 4

H.F. 2389 pay all costs associated with the removal of the wind energy 1 facility and the reclamation of the land at the end of the 2 facility’s useful life as stated in the agreement. 3 3. The financial assurance shall be in one of the following 4 forms: 5 a. The deposit of moneys or government securities into an 6 account segregated from the developer’s assets and outside the 7 developer’s control, including but not limited to a trust or 8 escrow account. 9 b. A certificate of deposit that is issued to the treasurer 10 of state by an eligible lending institution as defined in 11 section 12.32, if and to the extent allowed by the treasurer of 12 state. 13 c. A surety in the form of a surety bond, letter of credit, 14 or line of credit. The surety bond shall be executed by a 15 surety company authorized to do business in this state, and the 16 surety bond shall be continuous in nature. 17 4. The amount of financial assurance shall be payable to 18 the landholder or the landholder’s successor in interest if 19 decommissioning does not occur. 20 EXPLANATION 21 GENERAL. This bill applies when a landowner agrees to 22 allow the construction of a wind turbine on their land. The 23 bill refers to the wind turbine and associated construction 24 as a wind energy facility, and refers to the agreement as a 25 wind energy facility agreement which may be in various forms 26 including a servitude, covenant, easement, deed restriction or 27 condition, lease, lease purchase, lease option, contract, or 28 contract option. The bill provides that all such agreements 29 are deemed easements. 30 CONFIDENTIALITY. The bill provides that any confidentiality 31 provision in an agreement that restricts a party from 32 disclosing the terms and conditions of the agreement is void. 33 CONSTRUCTION TIME LIMIT. The bill provides that a wind 34 energy facility agreement terminates if construction of the 35 -3- LSB 5883YH (5) 83 da/nh 3/ 4

H.F. 2389 wind energy facility has not commenced within three years after 1 the effective date of the agreement. However, this period may 2 be extended by the parties. 3 FINANCIAL ASSURANCE. The bill provides that a wind energy 4 facility agreement must include a form of financial assurance 5 for decommissioning the facility, sufficient to pay all costs 6 associated with its removal and the reclamation of the land at 7 the end of the facility’s useful life. The financial assurance 8 must be in the form of a deposit of moneys or government 9 securities into a type of trust or escrow account. It may also 10 be a certificate of deposit, surety bond, letter of credit, or 11 line of credit. 12 -4- LSB 5883YH (5) 83 da/nh 4/ 4