House File 2551 H-8030 Amend House File 2551 as follows: 1 1. By striking everything after the enacting clause and 2 inserting: 3 < Section 1. Section 478.16, Code 2024, is amended to read 4 as follows: 5 478.16 Electric transmission lines —— federally registered 6 planning authority transmission plans. 7 1. Development and investment in high-voltage transmission 8 is urgently needed to ensure the reliable, adequate, secure, 9 and stable delivery of electricity to consumers. To ensure 10 reliable electric service to the people of Iowa as a matter 11 of public policy, it is the intent of the general assembly 12 to express a preference for further investment in Iowa 13 transmission infrastructure. 14 1. 2. As used in this section , unless the context otherwise 15 requires: 16 a. “Electric transmission line” means a high-voltage 17 electric transmission line located in this state with a 18 capacity of one hundred kilovolts or more and any associated 19 electric transmission facility, including any substation or 20 other equipment located in this state . 21 b. “Electric transmission line project” means a project 22 planned and approved in the final, utility board approved plans 23 of the midwest independent system operator or southwest power 24 pool to be owned, operated, and sited in this state. 25 b. c. “Electric transmission owner” means an individual or 26 entity who, as of July 1, 2020, owns and maintains an electric 27 transmission line that is required for rate-regulated electric 28 utilities, municipal electric utilities, and rural electric 29 cooperatives in this state to provide electric service to the 30 public for compensation. 31 c. d. “Incumbent electric transmission owner” means any of 32 the following , which may be formed, located, or headquartered 33 in any state : 34 (1) A public utility or a municipally owned utility that 35 -1- HF 2551.3109 (2) 90 lh/js 1/ 5 #1.

owns, operates, and maintains an electric transmission line in 1 this state. 2 (2) An electric cooperative corporation or association or 3 municipally owned utility that owns an electric transmission 4 facility in this state and has turned over the functional 5 control of such facility to a federally approved authority. 6 (3) An “electric transmission owner” as defined in paragraph 7 “b” . 8 d. e. “Landowner” means the same as defined in section 9 478.2 . 10 e. f. “Municipally owned utility” means a “city utility” 11 as defined in section 362.2 , or an “electric power agency” as 12 defined in section 390.9 which that is comprised solely of 13 cities or solely of cities and other political subdivisions. 14 2. 3. An If ninety percent of the right of way length, 15 or net acreage in the case of a substation, of the electric 16 transmission line project is exclusively owned or controlled 17 by an incumbent transmission owner at the time of approval 18 of the electric transmission line project in a federally 19 registered planning authority transmission plan, an incumbent 20 electric transmission owner has the right to construct, 21 own, and maintain an electric transmission line project 22 that has been approved for construction in a the federally 23 registered planning authority transmission plan and which 24 that directly connects to an electric transmission facility 25 owned by the incumbent electric transmission owner. Where a 26 proposed electric transmission line would connect to electric 27 transmission facilities owned by two or more incumbent electric 28 transmission owners, each incumbent electric transmission owner 29 whose facility connects to the electric transmission line 30 has the right to construct, own, and maintain the electric 31 transmission line individually and equally. If an incumbent 32 electric transmission owner declines to construct, own, and 33 maintain its portion of an electric transmission line that 34 would connect to electric transmission facilities owned by 35 -2- HF 2551.3109 (2) 90 lh/js 2/ 5

two or more incumbent electric transmission owners, then the 1 other incumbent electric transmission owner or owners that 2 own an electric transmission facility to which the electric 3 transmission line connects has the right to construct, own, and 4 maintain the electric transmission line individually. Prior 5 to the utilities board approving an electric transmission line 6 project included in the federally registered planning authority 7 transmission plan, the applicant shall provide to the board 8 evidence that the applicant exclusively owns or controls ninety 9 percent of the right of way length needed to construct the 10 line or, in the case of substations, ninety percent of the 11 net acreage. The evidence shall be based on and calculated 12 on the basis of legal descriptions in recorded instruments of 13 right of way or property exclusively owned or controlled by 14 the applicant, who will develop, own, and operate the electric 15 transmission line project. The board shall verify and confirm 16 that the electric transmission line project will fit within the 17 right of way exclusively controlled or owned with no additional 18 right of way needed. If an additional private or public right 19 of way or property is needed, the right of way length, or 20 net acreage in the case of substations, shall not qualify as 21 exclusively owned or controlled by the applicant. 22 3. If an electric transmission line has been approved for 23 construction in a federally registered planning authority 24 transmission plan, and the electric transmission line is 25 not subject to a right of first refusal in accordance with 26 the tariff of a federally registered planning authority, 27 then within ninety days of approval for construction, an 28 incumbent electric transmission owner, or owners if there 29 is more than one owner, that owns a connecting electric 30 transmission facility shall give written notice to the board 31 regarding whether the incumbent electric transmission owner 32 or owners intend to construct, own, and maintain the electric 33 transmission line. If the incumbent electric transmission 34 owner or owners give notice of intent to construct the electric 35 -3- HF 2551.3109 (2) 90 lh/js 3/ 5

transmission line, the incumbent electric transmission owner 1 or owners shall follow the applicable franchise requirements 2 pursuant to this chapter. If the incumbent electric 3 transmission owner or owners give notice declining to construct 4 the electric transmission line, the board may determine whether 5 another person may construct the electric transmission line. 6 4. For projects where an election for which a right to 7 construct an electric transmission line has been made under 8 this section , all of the following cost accountability measures 9 shall apply: 10 a. Within thirty days after the issuance of a franchise 11 pursuant to this chapter for the electric transmission line, 12 the incumbent electric transmission owner or owners shall 13 provide to the board an estimate of the cost to construct the 14 electric transmission line. 15 b. Until construction of the electric transmission line 16 is complete, the incumbent electric transmission owner or 17 owners shall provide a quarterly report to the board, which 18 shall include an updated estimate of the cost to construct the 19 electric transmission line and an explanation of changes in the 20 cost estimate from the prior cost estimate. 21 5. This section shall not modify the authority of the 22 board under this chapter , the rights of landowners under this 23 chapter , or the requirements, rights, and obligations relating 24 to the construction, maintenance, and operation of electric 25 transmission lines pursuant to this chapter . 26 6. This section shall not apply to an electric transmission 27 line to be placed underground that has not been approved for 28 construction in a federally registered planning authority 29 transmission plan. 30 7. The board shall adopt rules pursuant to chapter 17A to 31 administer this section . 32 Sec. 2. EFFECTIVE DATE. This Act, being deemed of immediate 33 importance, takes effect upon enactment. 34 Sec. 3. RETROACTIVE APPLICABILITY. The provisions of this 35 -4- HF 2551.3109 (2) 90 lh/js 4/ 5