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House File 565 - IntroducedA Bill ForAn Act 1relating to specified utility construction project
2requirements, and including effective date and applicability
3provisions.
4BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
1 Section 1. Section 479A.11, Code 2023, is amended to read
2as follows:
3479A.11 Damages.
41. A pipeline company operating pipelines or underground
5storage shall be given reasonable access to the pipelines and
6storage areas for the purpose of constructing, operating,
7maintaining, or locating their pipes, pumps, pressure
8apparatus, or other stations, wells, devices, or equipment used
9in or upon a pipeline or storage area, but shall pay the owner
10of the lands for the right of entry and the owner of crops on
11the land all damages caused by entering, using, or occupying
12the lands for these purposes; and shall pay to the owner of the
13lands, after the completion of construction of the pipeline or
14storage, all damages caused by settling of the soil along and
15above the pipeline, and wash or erosion of the soil along the
16pipeline due to the construction of the pipeline. However,
17this section does not prevent the execution of an agreement
18with other terms between the pipeline company and the owner of
19the land or crops with reference to their use.
202. A claim for crop yield loss damages pursuant to this
21section shall not be precluded from renegotiation under section
226B.52 on the grounds that the damages were apparent at the time
23of settlement.
24 Sec. 2. Section 479B.4, Code 2023, is amended by adding the
25following new subsection:
26 NEW SUBSECTION. 7. The board shall not issue a permit, or
27conduct a contested case proceeding relating to the issuance
28of a permit, for a liquefied carbon dioxide pipeline until the
29federal pipeline and hazardous materials safety administration
30provides new rules updating the safety standards for liquefied
31carbon dioxide pipelines, including requirements related to
32emergency preparedness and response.
33 Sec. 3. Section 479B.9, Code 2023, is amended to read as
34follows:
35479B.9 Final order — condition.
-1- 1The board may grant a permit in whole or in part upon
2terms, conditions, and restrictions as to location and route
3as it determines to be just and proper. A permit shall not be
4granted to a pipeline company unless the board determines that
5the proposed services will promote the public convenience and
6necessity. The board shall not grant a permit to construct
7a liquefied carbon dioxide pipeline unless such a permit is
8expressly conditioned upon the pipeline company obtaining
9all other applicable permits, including federal and state
10regulatory permits, state and local highway and road crossing
11permits, and local zoning permits.
12 Sec. 4. Section 479B.16, subsection 1, Code 2023, is amended
13to read as follows:
141. A pipeline company granted a pipeline permit shall,
15subject to subsections 4 and 5, be vested with the right of
16eminent domain, to the extent necessary and as prescribed and
17approved by the board, not exceeding seventy-five feet in
18width for right-of-way and not exceeding one acre in any one
19location in addition to right-of-way for the location of pumps,
20pressure apparatus, or other stations or equipment necessary
21to the proper operation of its pipeline. The board may grant
22additional eminent domain rights where the pipeline company
23has presented sufficient evidence to adequately demonstrate
24that a greater area is required for the proper construction,
25operation, and maintenance of the pipeline or for the location
26of pumps, pressure apparatus, or other stations or equipment
27necessary to the proper operation of its pipeline.
28 Sec. 5. Section 479B.16, Code 2023, is amended by adding the
29following new subsections:
30 NEW SUBSECTION. 4. The board shall not grant a liquefied
31carbon dioxide pipeline company the right of eminent domain
32under this chapter for an interstate hazardous liquid pipeline
33project unless the company acquires at least ninety percent of
34the affected route miles through voluntary easements or through
35preexisting easements. The company shall submit regular
-2-1reports on its progress in acquiring voluntary easements as
2determined by the board.
3 NEW SUBSECTION. 5. The board shall not grant a liquefied
4carbon dioxide pipeline company the right of eminent domain
5under this chapter for an interstate hazardous liquid pipeline
6project unless the company first acquires all applicable
7pipeline construction and zoning permits from the other states
8the project will be constructed in.
9 Sec. 6. Section 479B.20, subsection 5, Code 2023, is amended
10to read as follows:
115. If the pipeline company or its contractor does not
12comply with the requirements of this section, with the land
13restoration plan or line location, or with an independent
14agreement on land restoration executed in accordance with
15subsection 10, the county board of supervisors may petition the
16board for an order requiring corrective action to be taken. In
17addition, the county board of supervisors or a landowner may
18file a complaint with the board seeking imposition of civil
19penalties under section 479B.21. A landowner may supply a copy
20of the complaint to the county board of supervisors where the
21complaint originated.
22 Sec. 7. Section 479B.20, Code 2023, is amended by adding the
23following new subsection:
24 NEW SUBSECTION. 13. For the purposes of this section,
25“landowner” also includes a farm tenant.
26 Sec. 8. Section 479B.29, Code 2023, is amended to read as
27follows:
28479B.29 Particular damage claims.
291. Compensable losses shall include, but are not limited to,
30 all of the following:
31a. Loss or reduced yield of crops or forage on the pipeline
32right-of-way, whether caused directly by construction or from
33disturbance of usual farm operations.
34b. Loss or reduced yield of crops or yield from land near
35the pipeline right-of-way resulting from lack of timely access
-3-1to the land or other disturbance of usual farm operations,
2including interference with irrigation or drainage.
3c. Fertilizer, lime, or organic material applied by the
4landowner to restore land disturbed by construction to full
5productivity.
6d. Loss of or damage to trees of commercial or other value
7that occurs at the time of construction, restoration, or at the
8time of any subsequent work by the pipeline company.
9e. The cost of or losses in moving or relocating livestock,
10and the loss of gain by or the death or injury of livestock
11caused by the interruption or relocation of normal feeding.
12f. Erosion and soil compaction on lands attributable to
13pipeline construction.
14g. Damage to farm equipment caused by striking a pipeline,
15debris, or other material reasonably associated with pipeline
16construction while engaged in normal farming operations as
17defined in section 480.1.
18h. Damage to soil or water conservation structures caused
19by construction, restoration, or subsequent work by the
20pipeline company including but not limited to terraces, grassed
21waterways, water and sediment control basins, ponds, saturated
22buffers, and biofilters.
23i. Damage to irrigation or drainage systems caused by
24construction, restoration, or subsequent work by the pipeline
25company.
262. A claim for damage for future crop deficiency within
27the easement strip damages incurred under this section shall
28not be precluded from renegotiation under section 6B.52 on
29the grounds that it was apparent at the time of settlement
30unless the settlement expressly releases the pipeline company
31from claims for damage to the productivity of the soil. The
32landowner shall notify the pipeline company in writing fourteen
33days prior to harvest in each year to assess crop deficiency.
343. For the purposes of this section, “landowner” also
35includes a farm tenant.
-4- 14. A landowner that incurred damage under this section is
2eligible for compensation for damages. A landowner may file an
3action for relief against a pipeline company in small claims
4or district court for a violation of this section or pursue
5remedies under section 479B.30, subsection 7.
6 Sec. 9. Section 479B.30, subsection 7, Code 2023, is amended
7to read as follows:
87. As used in this section, “damages” means compensation for
9damages to the land, crops, and other personal property caused
10by the construction of a pipeline and its attendant structures
11or underground storage facility, or a compensable loss as
12defined in section 479B.29, subsection 1, but does not include
13compensation for a property interest, and “landowner” includes
14a farm tenant.
15 Sec. 10. EFFECTIVE DATE. This Act, being deemed of
16immediate importance, takes effect upon enactment.
17 Sec. 11. APPLICABILITY. This Act applies to all
18applications for a permit to construct a pipeline pursuant to
19chapter 479B filed with the Iowa utilities board on or after
20July 1, 2021, and to permits issued on or after the effective
21date of this Act.
22EXPLANATION
23The inclusion of this explanation does not constitute agreement with
24the explanation’s substance by the members of the general assembly.
25This bill relates to easement requirements for utilities and
26landowner rights regarding pipeline construction.
27The bill provides that the Iowa utilities board (board)
28shall not issue a permit for a liquefied carbon dioxide
29pipeline until the federal pipeline and hazardous materials
30safety administration provides new rules updating the safety
31standards for liquefied carbon dioxide pipelines. The bill
32also provides that the board shall not grant a permit to
33construct a liquefied carbon dioxide pipeline unless the permit
34is conditioned upon the pipeline company obtaining all other
35applicable permits, including federal and state regulatory
-5-1permits, state and local highway and road crossing permits, and
2local zoning permits.
3The bill requires a liquefied carbon dioxide pipeline
4company seeking to use eminent domain to first acquire at
5least 90 percent of the affected route miles through voluntary
6easements or through preexisting easements. The bill prohibits
7the board from granting a liquefied carbon dioxide pipeline
8company the right of eminent domain for an interstate hazardous
9liquid pipeline project unless the company first acquires all
10applicable pipeline construction and zoning permits from the
11other states the project will be constructed in. The company
12shall submit regular progress reports regarding easement
13acquisition as determined by the board within the utilities
14division of the department of commerce.
15The bill allows a landowner to file a complaint with the
16board and to notify the relevant county board of supervisors of
17a violation of land restoration standards. The bill expands
18the meaning of “landowner” under Code section 479B.20 to
19include a farm tenant.
20The bill expands damages that constitute compensable
21loss under Code section 479B.29 to include soil compaction,
22damage to soil or water conservation structures, and damage
23to irrigation or drainage systems, and adds “farm tenant” to
24the definition of landowner. The bill expands the claims a
25landowner can bring and receive compensation for to include any
26identifiable compensable loss resulting from pipeline activity.
27A landowner may file an action for relief in small claims or
28district court against a pipeline company for a violation of
29Code section 479B.29.
30The bill modifies the definition of damages for purposes
31of construction damages under Code section 479B.30 to include
32compensable losses listed under Code section 479B.29.
33The bill takes effect upon enactment.
34The bill applies retroactively to all applications for a
35permit to construct a pipeline pursuant to Code chapter 479B
-6-1filed with the board on or after July 1, 2021. The bill applies
2to permits issued by the board on or after the effective date
3of the bill.
-7-es/rn
2requirements, and including effective date and applicability
3provisions.
4BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
1 Section 1. Section 479A.11, Code 2023, is amended to read
2as follows:
3479A.11 Damages.
41. A pipeline company operating pipelines or underground
5storage shall be given reasonable access to the pipelines and
6storage areas for the purpose of constructing, operating,
7maintaining, or locating their pipes, pumps, pressure
8apparatus, or other stations, wells, devices, or equipment used
9in or upon a pipeline or storage area, but shall pay the owner
10of the lands for the right of entry and the owner of crops on
11the land all damages caused by entering, using, or occupying
12the lands for these purposes; and shall pay to the owner of the
13lands, after the completion of construction of the pipeline or
14storage, all damages caused by settling of the soil along and
15above the pipeline, and wash or erosion of the soil along the
16pipeline due to the construction of the pipeline. However,
17this section does not prevent the execution of an agreement
18with other terms between the pipeline company and the owner of
19the land or crops with reference to their use.
202. A claim for crop yield loss damages pursuant to this
21section shall not be precluded from renegotiation under section
226B.52 on the grounds that the damages were apparent at the time
23of settlement.
24 Sec. 2. Section 479B.4, Code 2023, is amended by adding the
25following new subsection:
26 NEW SUBSECTION. 7. The board shall not issue a permit, or
27conduct a contested case proceeding relating to the issuance
28of a permit, for a liquefied carbon dioxide pipeline until the
29federal pipeline and hazardous materials safety administration
30provides new rules updating the safety standards for liquefied
31carbon dioxide pipelines, including requirements related to
32emergency preparedness and response.
33 Sec. 3. Section 479B.9, Code 2023, is amended to read as
34follows:
35479B.9 Final order — condition.
-1- 1The board may grant a permit in whole or in part upon
2terms, conditions, and restrictions as to location and route
3as it determines to be just and proper. A permit shall not be
4granted to a pipeline company unless the board determines that
5the proposed services will promote the public convenience and
6necessity. The board shall not grant a permit to construct
7a liquefied carbon dioxide pipeline unless such a permit is
8expressly conditioned upon the pipeline company obtaining
9all other applicable permits, including federal and state
10regulatory permits, state and local highway and road crossing
11permits, and local zoning permits.
12 Sec. 4. Section 479B.16, subsection 1, Code 2023, is amended
13to read as follows:
141. A pipeline company granted a pipeline permit shall,
15subject to subsections 4 and 5, be vested with the right of
16eminent domain, to the extent necessary and as prescribed and
17approved by the board, not exceeding seventy-five feet in
18width for right-of-way and not exceeding one acre in any one
19location in addition to right-of-way for the location of pumps,
20pressure apparatus, or other stations or equipment necessary
21to the proper operation of its pipeline. The board may grant
22additional eminent domain rights where the pipeline company
23has presented sufficient evidence to adequately demonstrate
24that a greater area is required for the proper construction,
25operation, and maintenance of the pipeline or for the location
26of pumps, pressure apparatus, or other stations or equipment
27necessary to the proper operation of its pipeline.
28 Sec. 5. Section 479B.16, Code 2023, is amended by adding the
29following new subsections:
30 NEW SUBSECTION. 4. The board shall not grant a liquefied
31carbon dioxide pipeline company the right of eminent domain
32under this chapter for an interstate hazardous liquid pipeline
33project unless the company acquires at least ninety percent of
34the affected route miles through voluntary easements or through
35preexisting easements. The company shall submit regular
-2-1reports on its progress in acquiring voluntary easements as
2determined by the board.
3 NEW SUBSECTION. 5. The board shall not grant a liquefied
4carbon dioxide pipeline company the right of eminent domain
5under this chapter for an interstate hazardous liquid pipeline
6project unless the company first acquires all applicable
7pipeline construction and zoning permits from the other states
8the project will be constructed in.
9 Sec. 6. Section 479B.20, subsection 5, Code 2023, is amended
10to read as follows:
115. If the pipeline company or its contractor does not
12comply with the requirements of this section, with the land
13restoration plan or line location, or with an independent
14agreement on land restoration executed in accordance with
15subsection 10, the county board of supervisors may petition the
16board for an order requiring corrective action to be taken. In
17addition, the county board of supervisors or a landowner may
18file a complaint with the board seeking imposition of civil
19penalties under section 479B.21. A landowner may supply a copy
20of the complaint to the county board of supervisors where the
21complaint originated.
22 Sec. 7. Section 479B.20, Code 2023, is amended by adding the
23following new subsection:
24 NEW SUBSECTION. 13. For the purposes of this section,
25“landowner” also includes a farm tenant.
26 Sec. 8. Section 479B.29, Code 2023, is amended to read as
27follows:
28479B.29 Particular damage claims.
291. Compensable losses shall include, but are not limited to,
30 all of the following:
31a. Loss or reduced yield of crops or forage on the pipeline
32right-of-way, whether caused directly by construction or from
33disturbance of usual farm operations.
34b. Loss or reduced yield of crops or yield from land near
35the pipeline right-of-way resulting from lack of timely access
-3-1to the land or other disturbance of usual farm operations,
2including interference with irrigation or drainage.
3c. Fertilizer, lime, or organic material applied by the
4landowner to restore land disturbed by construction to full
5productivity.
6d. Loss of or damage to trees of commercial or other value
7that occurs at the time of construction, restoration, or at the
8time of any subsequent work by the pipeline company.
9e. The cost of or losses in moving or relocating livestock,
10and the loss of gain by or the death or injury of livestock
11caused by the interruption or relocation of normal feeding.
12f. Erosion and soil compaction on lands attributable to
13pipeline construction.
14g. Damage to farm equipment caused by striking a pipeline,
15debris, or other material reasonably associated with pipeline
16construction while engaged in normal farming operations as
17defined in section 480.1.
18h. Damage to soil or water conservation structures caused
19by construction, restoration, or subsequent work by the
20pipeline company including but not limited to terraces, grassed
21waterways, water and sediment control basins, ponds, saturated
22buffers, and biofilters.
23i. Damage to irrigation or drainage systems caused by
24construction, restoration, or subsequent work by the pipeline
25company.
262. A claim for damage for future crop deficiency within
27the easement strip damages incurred under this section shall
28not be precluded from renegotiation under section 6B.52 on
29the grounds that it was apparent at the time of settlement
30unless the settlement expressly releases the pipeline company
31from claims for damage to the productivity of the soil. The
32landowner shall notify the pipeline company in writing fourteen
33days prior to harvest in each year to assess crop deficiency.
343. For the purposes of this section, “landowner” also
35includes a farm tenant.
-4- 14. A landowner that incurred damage under this section is
2eligible for compensation for damages. A landowner may file an
3action for relief against a pipeline company in small claims
4or district court for a violation of this section or pursue
5remedies under section 479B.30, subsection 7.
6 Sec. 9. Section 479B.30, subsection 7, Code 2023, is amended
7to read as follows:
87. As used in this section, “damages” means compensation for
9damages to the land, crops, and other personal property caused
10by the construction of a pipeline and its attendant structures
11or underground storage facility, or a compensable loss as
12defined in section 479B.29, subsection 1, but does not include
13compensation for a property interest, and “landowner” includes
14a farm tenant.
15 Sec. 10. EFFECTIVE DATE. This Act, being deemed of
16immediate importance, takes effect upon enactment.
17 Sec. 11. APPLICABILITY. This Act applies to all
18applications for a permit to construct a pipeline pursuant to
19chapter 479B filed with the Iowa utilities board on or after
20July 1, 2021, and to permits issued on or after the effective
21date of this Act.
22EXPLANATION
23The inclusion of this explanation does not constitute agreement with
24the explanation’s substance by the members of the general assembly.
25This bill relates to easement requirements for utilities and
26landowner rights regarding pipeline construction.
27The bill provides that the Iowa utilities board (board)
28shall not issue a permit for a liquefied carbon dioxide
29pipeline until the federal pipeline and hazardous materials
30safety administration provides new rules updating the safety
31standards for liquefied carbon dioxide pipelines. The bill
32also provides that the board shall not grant a permit to
33construct a liquefied carbon dioxide pipeline unless the permit
34is conditioned upon the pipeline company obtaining all other
35applicable permits, including federal and state regulatory
-5-1permits, state and local highway and road crossing permits, and
2local zoning permits.
3The bill requires a liquefied carbon dioxide pipeline
4company seeking to use eminent domain to first acquire at
5least 90 percent of the affected route miles through voluntary
6easements or through preexisting easements. The bill prohibits
7the board from granting a liquefied carbon dioxide pipeline
8company the right of eminent domain for an interstate hazardous
9liquid pipeline project unless the company first acquires all
10applicable pipeline construction and zoning permits from the
11other states the project will be constructed in. The company
12shall submit regular progress reports regarding easement
13acquisition as determined by the board within the utilities
14division of the department of commerce.
15The bill allows a landowner to file a complaint with the
16board and to notify the relevant county board of supervisors of
17a violation of land restoration standards. The bill expands
18the meaning of “landowner” under Code section 479B.20 to
19include a farm tenant.
20The bill expands damages that constitute compensable
21loss under Code section 479B.29 to include soil compaction,
22damage to soil or water conservation structures, and damage
23to irrigation or drainage systems, and adds “farm tenant” to
24the definition of landowner. The bill expands the claims a
25landowner can bring and receive compensation for to include any
26identifiable compensable loss resulting from pipeline activity.
27A landowner may file an action for relief in small claims or
28district court against a pipeline company for a violation of
29Code section 479B.29.
30The bill modifies the definition of damages for purposes
31of construction damages under Code section 479B.30 to include
32compensable losses listed under Code section 479B.29.
33The bill takes effect upon enactment.
34The bill applies retroactively to all applications for a
35permit to construct a pipeline pursuant to Code chapter 479B
-6-1filed with the board on or after July 1, 2021. The bill applies
2to permits issued by the board on or after the effective date
3of the bill.
-7-es/rn