House File 2104 S-5001 Amend House File 2104, as passed by the House, as follows: 1 1. By striking everything after the enacting clause and 2 inserting: 3 < Section 1. NEW SECTION . 479B.1A Legislative intent. 4 It is the goal of the general assembly that the right of 5 eminent domain will not be granted for a hazardous liquid 6 pipeline except when every other reasonably available 7 alternative has been diligently exhausted. Further goals of 8 the general assembly are to promote the production of energy, 9 derived from crops grown and resources gathered within the 10 state of Iowa, and elsewhere within the United States, to 11 ensure long-term, economically competitive and diverse sources 12 of energy for Iowans, for citizens of the United States, 13 and for our customers abroad; to support agriculture in the 14 state of Iowa, and the employment of Iowans in agricultural 15 work and in affiliated industries; to encourage investment 16 in Iowa agriculture, and in the facilities needed to process 17 our produce and to deliver useful products to consumers; to 18 provide reasonable conditions for the planning and construction 19 of linear infrastructure projects that will serve the public 20 convenience and necessity; and to vindicate and safeguard the 21 property rights of all Iowans, including those who prefer not 22 to accommodate the construction of a pipeline on their land, 23 as well as those who would choose to convey an easement for 24 valuable consideration in a voluntary transaction. 25 Sec. 2. Section 479B.2, Code 2026, is amended by adding the 26 following new subsection: 27 NEW SUBSECTION . 6. “Voluntary easement corridor” means land 28 within the county where an informational meeting is held or 29 within a distance of five miles on either side of a proposed 30 pipeline route. 31 Sec. 3. Section 479B.4, subsections 5 and 6, Code 2026, are 32 amended to read as follows: 33 5. a. The notice shall set forth include the following: 34 (1) The name of the applicant. 35 -1- HF 2104.2258 (2) 91 sb/js 1/ 8 #1.

(2) The applicant’s principal place of business. 1 (3) The general description and purpose of the proposed 2 project. 3 (4) The general nature of the right-of-way desired. 4 (5) A map showing the route or location of the proposed 5 project. 6 (6) That A statement that the landowner has a right to 7 be present at the meeting and to file objections with the 8 commission. 9 (7) A designation of the time and place of the meeting. 10 (8) A copy of the template easement to be used for acquiring 11 land for the project. 12 (9) A description of the methodology to be used in 13 determining the value of the easement for initial offers. 14 (10) A statement of the policy for claiming damages. 15 b. The notice shall be served by certified mail with 16 return receipt requested not less than thirty days previous 17 to the time set for the meeting, and shall be published once 18 in a newspaper of general circulation in the county. The 19 publication shall be considered notice to landowners whose 20 residence is not known and to each person in possession of or 21 residing on the property provided a good faith effort to notify 22 can be demonstrated by the pipeline company. 23 6. A pipeline company seeking rights under this chapter 24 shall not negotiate or purchase an easement or other interest 25 in land in a county known to be affected by the proposed 26 project prior to the informational meeting. Nothing in this 27 subsection shall prohibit a company seeking rights under this 28 chapter from holding a meeting to provide general information 29 regarding a project to a community that does not include 30 negotiating specific terms with specific landowners prior to 31 the informational meeting required by this section. 32 Sec. 4. Section 479B.4, Code 2026, is amended by adding the 33 following new subsection: 34 NEW SUBSECTION . 7. Any person may file with the commission 35 -2- HF 2104.2258 (2) 91 sb/js 2/ 8

comments regarding the terms of the template easement or 1 valuation methodology within fifteen days after it is filed 2 under subsection 5. The company may file responses to such 3 comments within thirty days after its filings pursuant to 4 subsection 5. The commission shall issue an order accepting, 5 rejecting, or requiring modification of the template easement 6 and valuation methodology no more than sixty days after 7 they are filed. This process shall not delay either the 8 informational meetings or the company’s ability to negotiate 9 with landowners, but no easement shall be finalized before the 10 template easement is approved. 11 Sec. 5. Section 479B.16, Code 2026, is amended by adding the 12 following new subsections: 13 NEW SUBSECTION . 4. a. Following the public informational 14 meeting held pursuant to section 479B.4 and proper publication 15 of notice required by section 479B.4, subsection 5, paragraph 16 “b” , a pipeline company may communicate with owners of record 17 of any land within the voluntary easement corridor for the 18 purpose of proposing voluntary transactions for the conveyance 19 of easements for the project, without regard to whether such 20 landowner received prior notice by mail. The pipeline company 21 shall not be required to provide to such landowners prior 22 individual notice of the proposed project before initiating 23 communication. 24 b. Before entering into a voluntary agreement with a 25 landowner who did not receive notice of the informational 26 meeting by mail, the pipeline company shall provide such 27 landowner copies of the informational meeting materials 28 presented by the commission, the consumer advocate, and the 29 company seeking rights under this chapter. 30 c. In a pipeline company’s initial communication with a 31 landowner, the company shall provide a written description of 32 the opt-out procedure described in paragraph “d” . 33 d. A landowner may decline further communication with a 34 pipeline company concerning a possible transaction for easement 35 -3- HF 2104.2258 (2) 91 sb/js 3/ 8

rights by providing verbal or written notice to the pipeline 1 company that states the landowner does not wish to discuss the 2 matter further, and by submitting to the commission notice 3 through mail or by electronic means stating the same. Upon 4 receipt of such notice from the landowner, the commission shall 5 forward a copy to the pipeline company. Such notice may be 6 given up to seven calendar days after the time a landowner is 7 provided with a written easement offer. 8 e. After receipt of notice by the landowner pursuant to 9 paragraph “d” , the pipeline company shall not initiate further 10 contact with the landowner for the purpose of an easement 11 transaction, except that the company may send one or more 12 letters by certified mail to the landowner making an offer or 13 soliciting further communication. A landowner may rescind such 14 refusal by contacting the pipeline company and notifying the 15 commission no later than seven calendar days after the notice 16 of refusal. Unless the landowner rescinds the refusal, the 17 landowner’s land shall be deemed unavailable for an easement 18 agreement. 19 NEW SUBSECTION . 5. a. This subsection shall apply only 20 to a hazardous liquid pipeline for which a pipeline company 21 requests authority to use eminent domain to acquire interests 22 in land. 23 b. For a hazardous liquid pipeline that is proposed to 24 exceed twenty miles in length within the state, the pipeline 25 company shall make a diligent effort to assemble a route 26 consisting exclusively of easements within the voluntary 27 easement corridor that are acquired through voluntary 28 conveyances. A pipeline company shall not be eligible to 29 request authority to use eminent domain except upon a showing 30 to the commission that it has made such diligent effort. 31 c. After initiating communication with a landowner 32 pursuant to subsection 4, a pipeline company shall provide a 33 landowner with a description of the proposed project and the 34 easement rights the company seeks to acquire, and shall request 35 -4- HF 2104.2258 (2) 91 sb/js 4/ 8

permission to conduct a civil survey. If the permission for a 1 civil survey is granted, the pipeline company shall conduct the 2 civil survey within ninety business days. 3 d. If a civil survey conducted pursuant to paragraph “c” 4 finds the land is not suitable for purposes of the project, 5 the pipeline company shall promptly provide the landowner 6 with written notice of this finding and shall file with the 7 commission a copy of the notice. Otherwise, within ninety 8 business days of the completion of the civil survey, the 9 pipeline company may submit to the landowner a written offer 10 for purchase of the easement. The pipeline company shall, 11 before filing an application requesting eminent domain, submit 12 such an offer to the owners of land that might be used to 13 assemble a route not including the land for which eminent 14 domain is requested. The offer shall include customary terms 15 and conditions for the conveyance of easements, and shall also 16 include all of the following: 17 (1) A statement of the requirements applicable under the 18 laws of this state and rules adopted by the commission relating 19 to the construction, operation, and maintenance of a hazardous 20 liquid pipeline upon land subject to the proposed easement, 21 including land restoration, tile repair, and damages. 22 (2) A statement that the landowner and the pipeline company 23 may agree to different terms not contrary to Iowa law, but that 24 such provisions shall be set forth expressly in a contract for 25 conveyance of an easement. 26 (3) An offer of cash compensation for the easement, which 27 may differ in amount from the compensation offered to other 28 landowners for easements of similar dimensions on similar land. 29 e. The pipeline company shall seek to execute contracts 30 for the voluntary conveyance of easements within one year of 31 initial communication with the landowners within a particular 32 county. If, however, after no less than six months, the 33 company is unable to execute contracts for easements sufficient 34 to assemble a route for the pipeline, the company shall 35 -5- HF 2104.2258 (2) 91 sb/js 5/ 8

file with the commission a notice setting forth all of the 1 following: 2 (1) The parcels for which the company has failed to reach 3 easement agreements and for which eminent domain is sought, or 4 that would, if an easement were granted, provide an alternative 5 to each eminent domain parcel, and the names of the owners of 6 those parcels. 7 (2) A list of the contacts made relating to each parcel 8 identified in subparagraph (1), including the date and method 9 of each contact, and a brief description of any issues causing 10 an impasse for that parcel. 11 (3) Either a request for an extension for further 12 negotiations or a statement that no agreement can be reached 13 for that parcel. 14 f. All data in the filing made under paragraph “e” shall 15 be held confidential and shall not be subject to disclosure in 16 response to a request under chapter 22. 17 g. For any easement that the pipeline company seeks to 18 acquire using eminent domain, the company shall file with the 19 commission all of the following: 20 (1) Evidence establishing that the company diligently 21 exhausted all alternatives to assemble a continuous route 22 for the project exclusively by means of voluntarily conveyed 23 easements, and that it was unable to do so for one or more of 24 the following reasons: 25 (a) Inability to obtain voluntary agreements for continuous 26 easements on adjoining parcels within a county where an 27 informational meeting was held, or outside that county but 28 within five miles of the center line of the proposed pipeline 29 route in that county, due to rejection by landowners of offers 30 based on a valuation methodology approved by the commission, or 31 due to the refusal of landowners to engage in communications 32 with the company pursuant to subsection 4, paragraph “d” . 33 (b) Technical or engineering infeasibility of construction 34 in a specific location due to terrain, other natural features, 35 -6- HF 2104.2258 (2) 91 sb/js 6/ 8

or land conditions. 1 (c) Infeasibility of compliance with safety requirements 2 relating to construction, operation, or maintenance of a 3 pipeline, under applicable federal law or rules, in a specified 4 location, due to terrain, other natural features or land 5 conditions, presence of occupied or other man-made structures, 6 or if the commission finds on engineering evidence that 7 safety would otherwise be adversely impacted by a route using 8 only voluntary easements and such safety would be materially 9 improved by use of a route facilitated by eminent domain. 10 (d) Economic infeasibility of the pipeline due to excessive 11 easement acquisition costs for alternative routes to avoid the 12 use of eminent domain. For purposes of this subparagraph, 13 economic infeasibility shall be shown by clear and convincing 14 evidence. 15 (2) A statement setting forth why the company requires an 16 easement on the specific parcel for which the company seeks 17 eminent domain. 18 h. Deadlines established by subsection 4 and this subsection 19 shall be subject to extension by the commission upon a showing 20 of good cause. 21 Sec. 6. EFFECTIVE DATE. This Act, being deemed of immediate 22 importance, takes effect upon enactment. 23 Sec. 7. APPLICABILITY —— RETROACTIVE APPLICABILITY. 24 1. Except as provided in subsection 2, this Act applies to 25 the construction of any hazardous liquid pipeline for which a 26 petition is filed on or after the effective date of this Act. 27 2. a. Except as provided in paragraph “b”, this Act applies 28 retroactively to the construction of any hazardous liquid 29 pipeline designed for the transportation of liquefied carbon 30 dioxide for which a petition is filed under chapter 479B on or 31 after January 1, 2024. 32 b. The portion of the section of this Act enacting 33 section 479B.16, subsection 4, applies retroactively to the 34 construction of pipelines designed for the transportation of 35 -7- HF 2104.2258 (2) 91 sb/js 7/ 8

liquefied carbon dioxide for which a petition was filed under 1 chapter 479B on or after January 1, 2022. > 2 2. Title page, by striking lines 1 through 3 and 3 inserting < An Act relating to easements for hazardous liquid 4 pipelines, including negotiation requirements, eminent domain 5 authorization, and contract execution, and including effective 6 date, applicability, and retroactive applicability provisions. > 7 ______________________________ COMMITTEE ON COMMERCE MIKE BOUSSELOT, CHAIRPERSON -8- HF 2104.2258 (2) 91 sb/js 8/ 8 #2.