House File 2551 H-8339 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 by electric transmission owners who 14 have already dedicated significant resources to develop the 15 infrastructure on which Iowans rely. 16 1. 2. As used in this section , unless the context otherwise 17 requires: 18 a. “Electric transmission line” means a high-voltage 19 electric transmission line located in this state with a 20 capacity of one hundred kilovolts or more and any associated 21 electric transmission facility, including any substation or 22 other equipment located in this state . 23 b. “Electric transmission owner” means an individual or 24 entity who, as of July 1, 2020, owns and maintains an electric 25 transmission line that is required for rate-regulated electric 26 utilities, municipal electric utilities, and rural electric 27 cooperatives in this state to provide electric service to the 28 public for compensation. 29 c. “Incumbent electric transmission owner” means any of the 30 following , which may be formed, located, or headquartered in 31 any state : 32 (1) A public utility or a municipally owned utility that 33 owns, operates, and maintains an electric transmission line in 34 this state. 35 -1- HF 2551.4221 (2) 90 lh/js 1/ 9 #1.

(2) An electric cooperative corporation or association or 1 municipally owned utility that owns an electric transmission 2 facility in this state and has turned over the functional 3 control of such facility to a federally approved authority. 4 (3) An “electric transmission owner” as defined in paragraph 5 “b” . 6 d. “Landowner” means the same as defined in section 478.2 7 “Initial construction” means the construction necessary to 8 establish and place an electric transmission line into initial 9 operation . 10 e. “Municipally owned utility” means a “city utility” as 11 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 f. “Qualified individual” means someone who is capable and 15 knowledgable enough to determine compliance with the standards 16 set forth in this section. 17 2. 3. An incumbent electric transmission owner has the 18 right to construct, own, and maintain an electric transmission 19 line that has been approved for construction in a federally 20 registered planning authority transmission plan and which that 21 directly connects to an electric transmission facility owned by 22 the incumbent electric transmission owner. Where a proposed 23 electric transmission line would directly connect to electric 24 transmission facilities owned by two or more incumbent electric 25 transmission owners, each incumbent electric transmission owner 26 whose facility connects to the electric transmission line 27 has the right to construct, own, and maintain the electric 28 transmission line individually and equally. If an incumbent 29 electric transmission owner declines to construct, own, and 30 maintain its portion of an electric transmission line that 31 would connect to electric transmission facilities owned by 32 two or more incumbent electric transmission owners, then the 33 other incumbent electric transmission owner or owners that 34 own an electric transmission facility to which the electric 35 -2- HF 2551.4221 (2) 90 lh/js 2/ 9

transmission line connects has the right to construct, own, and 1 maintain the electric transmission line individually. 2 3. 4. If an electric transmission line has been approved 3 for construction in a federally registered planning authority 4 transmission plan after July 1, 2020 , and the electric 5 transmission line is not subject to a right of first refusal in 6 accordance with the tariff of a federally registered planning 7 authority, then within the later of ninety days of approval 8 for construction or ninety days after enactment of this Act , 9 an incumbent electric transmission owner, or owners if there 10 is more than one owner, that owns a connecting electric 11 transmission facility shall give written notice to the board 12 regarding whether the incumbent electric transmission owner 13 or owners intend to construct, own, and maintain the electric 14 transmission line. If the incumbent electric transmission 15 owner or owners give notice of intent to construct the electric 16 transmission line, the incumbent electric transmission owner 17 or owners shall follow the applicable franchise requirements 18 pursuant to this chapter . If the incumbent electric 19 transmission owner or owners give notice declining to construct 20 the electric transmission line or fail to provide timely notice 21 of the intent to construct the project , the board may determine 22 whether another person may construct the electric transmission 23 line. 24 4. 5. For projects where for which an election to construct 25 an electric transmission line has been made under this section , 26 all of the following cost accountability measures shall apply: 27 a. Within thirty days after the issuance of a franchise 28 pursuant to this chapter for the electric transmission line, 29 the incumbent electric transmission owner or owners shall 30 provide to the board an estimate of the cost to construct 31 complete the initial construction of the electric transmission 32 line. 33 b. Until the initial construction of the electric 34 transmission line is complete, the incumbent electric 35 -3- HF 2551.4221 (2) 90 lh/js 3/ 9

transmission owner or owners shall provide a quarterly report 1 to the board, which shall include an updated estimate of the 2 cost to construct the electric transmission line , and an 3 explanation of changes in the cost estimate from the prior 4 cost estimate , and documentation that the incumbent electric 5 transmission owner or owners have used competitively bid 6 construction contracts that meet all the technical, commercial, 7 and other specifications, such as safety performance, that 8 are required by the incumbent electric transmission owner or 9 owners with respect to the initial construction of the electric 10 transmission line . 11 c. The consumer advocate appointed under section 475A.1 12 shall have free access to documents, reports, and information 13 submitted to the board pursuant to this subsection, consistent 14 with section 475A.4. To the extent relevant, the board and 15 the consumer advocate may use the information for any purpose 16 properly within the scope of their respective duties including 17 but not limited to use in proceedings before the federal 18 energy regulatory commission to challenge the costs incurred 19 by the incumbent electric transmission owner. However, 20 this subsection does not create a private cause of action or 21 complaint. 22 5. 6. This section shall not modify the authority of the 23 board under this chapter , the rights of landowners under this 24 chapter , or the requirements, rights, and obligations relating 25 to the construction, maintenance, and operation of electric 26 transmission lines pursuant to this chapter . 27 6. 7. This section shall not apply to an electric 28 transmission line to be placed underground that has not been 29 approved for construction in a federally registered planning 30 authority transmission plan. 31 7. 8. The board shall adopt rules pursuant to chapter 17A 32 to administer this section , which shall include rules regarding 33 the restoration of agricultural lands following the initial 34 construction of an electric transmission line, as specified in 35 -4- HF 2551.4221 (2) 90 lh/js 4/ 9

subsection 9 . 1 9. The board shall adopt rules to implement the following 2 requirements, which shall not apply within the corporate 3 limits of a city or to any construction, activity, or electric 4 transmission lines other than the initial construction of an 5 electric transmission line with a capacity of two hundred or 6 more kilovolts and for which an election to construct has been 7 made under this section: 8 a. An electric transmission owner shall repair a damaged 9 underground drain tile as soon as practicable during 10 construction of the electric transmission line. Permanent 11 repairs to the damaged underground drain tile shall be 12 completed within fourteen days, if practicable, after the 13 initial construction of the electric transmission line is 14 complete. The repairs made to the damaged drain tile shall 15 be of at least equal quality, size, and flow capacity of the 16 original drain tile. 17 b. Following the initial construction of an electric 18 transmission line, the electric transmission owner shall remove 19 from the easement area all rock larger than three inches in 20 average diameter not native to the soil of the excavated 21 land. The rock removed from the excavated land that cannot be 22 used to backfill shall be disposed of at a location and in a 23 manner agreed upon by the electric transmission owner and the 24 landowner. 25 c. Upon completion of construction activities on a property, 26 the electric transmission owner shall deep till agricultural 27 land, including right-of-way access points or roads traversed 28 by heavy construction equipment, to alleviate soil compaction. 29 The land shall be tilled at least eighteen inches deep in land 30 used for crop production and twelve inches deep in other lands 31 unless requested by the landowner. 32 d. Upon completion of the electric transmission line, the 33 electric transmission owner shall restore the soil conservation 34 practices and structures damaged during construction of the 35 -5- HF 2551.4221 (2) 90 lh/js 5/ 9

electric transmission line to the elevation and grade existing 1 on the land prior to the construction. The soil used to 2 repair embankments intended to retain water shall be well 3 compacted. Any vegetation disturbed during construction shall 4 be reestablished, including cover crops when appropriate. 5 e. Following compaction of the land, agricultural land that 6 is not in row crop or small grain production at the time of 7 construction, including hay ground and land in conservation or 8 set-aside programs, shall be reseeded and a cover crop shall 9 be utilized when appropriate. Seeding for cover crops may be 10 delayed if the construction of the electric transmission line 11 is completed too late in the year for a cover crop to become 12 established and is not required if the land will be tilled in 13 the following year. The landowner may request ground cover 14 to prevent soil erosion in areas where construction on the 15 electric transmission line is completed if the season is not 16 suitable for seeding a cover crop. 17 f. Unless agreed upon by the electric transmission owner 18 and the landowner, the electric transmission owner shall remove 19 field entrances or temporary roads built for the purpose of 20 constructing the electric transmission line upon the completion 21 of the initial construction and restore the area to its 22 previous use. 23 g. An incumbent electric transmission owner shall use best 24 utility practices for constructing the electric transmission 25 line in wet conditions, such as electing to use matting 26 or padding when utilizing heavy equipment. An electric 27 transmission owner shall grade and till any rutted land to 28 restore, to the extent practicable, the original condition of 29 the land prior to the construction of the electric transmission 30 line. If agreed upon by the incumbent electric transmission 31 owner and the landowner, the landowner may repair any damage 32 caused by construction activities in wet conditions and the 33 incumbent electric transmission owner shall reimburse the 34 landowner for the reasonable cost incurred to repair the 35 -6- HF 2551.4221 (2) 90 lh/js 6/ 9

damage. If an incumbent electric transmission owner utilizes 1 heavy equipment in wetlands or mudflats, mats or other measures 2 shall be utilized to minimize soil disturbance. 3 h. For each electric transmission line, the incumbent 4 electric transmission owner shall designate a point of 5 contact for inquiries or claims from an affected person. The 6 designation shall include a name, a telephone number, an email 7 address, and an address. 8 10. a. If an incumbent electric transmission owner and 9 a landowner dispute a potential violation of the restoration 10 standards provided in subsection 9, the board may appoint a 11 qualified individual to inspect the property for compliance. 12 If the qualified individual determines that there has been a 13 violation of the applicable restoration standards, the board 14 shall provide oral notice, followed by written notice, to 15 the incumbent electric transmission owner and the contractor 16 operating for the incumbent electric transmission owner 17 and order corrective action to comply with the restoration 18 standards. The incumbent electric transmission owner shall be 19 responsible for the costs of the corrective action. 20 b. If the incumbent electric transmission owner or the 21 contractor for the incumbent electric transmission owner does 22 not comply with a valid order for corrective action issued by 23 the board, the board may issue an order requiring corrective 24 action to be taken and may impose civil penalties under section 25 478.29. 26 c. The board shall instruct the inspector appointed by 27 the board regarding the content of the statutes and rules and 28 the responsibility of the inspector to require restoration 29 conforming with the standards established in subsection 9. 30 11. a. A petitioner for a franchise for an electric 31 transmission line shall file with the petition a written land 32 restoration plan that documents how the requirements and rules 33 of subsection 9 will be met. The petitioner shall provide a 34 copy of the plan to all landowners of property that will be 35 -7- HF 2551.4221 (2) 90 lh/js 7/ 9

disturbed by the initial construction. 1 b. This subsection does not preclude the application of 2 provisions for protecting or restoring property that are 3 different than those prescribed in subsection 9, in rules 4 adopted under subsection 9, or in the land restoration plan, 5 if the alternative provisions are contained in agreements 6 independently executed by the electric transmission owner 7 and the landowner, and if the alternative provisions are not 8 inconsistent with state law or with rules adopted by the 9 board. Independent agreements for land restoration between the 10 incumbent electric transmission owner and the landowner shall 11 be in writing and provided to the board. 12 c. The board may by waiver allow variations from the 13 requirements of subsection 9 if the incumbent electric 14 transmission owner requesting a waiver satisfies the standards 15 set forth in section 17A.9A and if the alternative methods 16 proposed by the incumbent electric transmission owner would 17 restore the land to a condition as good as or better than as 18 provided for in subsection 9. 19 d. The board may waive preparation of a separate land 20 restoration plan if the incumbent electric transmission owner 21 enters into an agricultural impact mitigation plan or similar 22 agreement with the appropriate agencies of this state that 23 satisfies the requirements of subsection 9. If a mitigation 24 plan or agreement is used to fully or partially meet the 25 requirements of a land restoration plan, the statement or 26 agreement shall be filed with the board and shall be considered 27 to be, or to be part of, the land restoration plan for purposes 28 of subsection 9. 29 12. Nothing in this section shall limit, expand, or 30 otherwise modify the rights of access and obligations for 31 damages set forth in section 478.17. 32 Sec. 2. Section 478.18, Code 2024, is amended to read as 33 follows: 34 478.18 Supervision of construction —— location. 35 -8- HF 2551.4221 (2) 90 lh/js 8/ 9

1. The utilities board shall have power of supervision 1 over the construction of a transmission line and over its 2 future operation and maintenance , including inspections for 3 compliance with the standards adopted under section 478.16 4 after restoration of the land is complete . 5 2. A transmission line shall be constructed near and 6 parallel to roads, to the right-of-way of the railways of the 7 state, or along the division lines of the lands, according 8 to the government survey, wherever the same is practicable 9 and reasonable, and so as not to interfere with the use 10 by the public of the highways or streams of the state, nor 11 unnecessarily interfere with the use of any lands by the 12 occupant. 13 3. The utilities board may contract a qualified individual 14 for the purpose of inspections authorized under section 478.16. 15 The reasonable cost of the inspection shall be paid by the 16 incumbent electric transmission owner. The utilities board 17 shall instruct the inspector appointed by the board regarding 18 the content of the statutes and rules and the responsibility 19 of the inspector to require restoration conforming with the 20 applicable standards established in section 478.16. For 21 purposes of this section, “qualified individual” means the same 22 as defined in section 478.16. 23 Sec. 3. EFFECTIVE DATE. This Act, being deemed of immediate 24 importance, takes effect upon enactment. 25 Sec. 4. RETROACTIVE APPLICABILITY. The provisions of this 26 Act shall apply retroactively to July 1, 2020. > 27 ______________________________ THOMSON of Floyd -9- HF 2551.4221 (2) 90 lh/js 9/ 9