House Study Bill 160
SENATE/HOUSE FILE
BY (PROPOSED DEPARTMENT OF
COMMERCE/UTILITIES
DIVISION BILL)
Passed Senate, Date Passed House, Date
Vote: Ayes Nays Vote: Ayes Nays
Approved
A BILL FOR
1 An Act relating to interstate natural gas pipelines including
2 requirements regarding construction, operation, and
3 maintenance, applicable penalties and resultant damages, and
4 easements.
5 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
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PAG LIN
1 1 Section 1. Section 306A.3, unnumbered paragraph 2, Code
1 2 2005, is amended to read as follows:
1 3 The department shall adopt rules, pursuant to chapter 17A,
1 4 embodying a utility accommodation policy which imposes
1 5 reasonable restrictions on placements occurring on or after
1 6 the effective date of the rules, on primary road rights=of=
1 7 way. The rules may require utilities to give notice to the
1 8 department prior to installation of a utility system on a
1 9 primary road right=of=way and obtain prior permission from the
1 10 department for the proposed installation. The rules shall
1 11 recognize emergency situations and the need for immediate
1 12 installation of service extensions subject to the standards
1 13 adopted by the department and the utilities board. The rules
1 14 shall be no less stringent than the standards adopted by the
1 15 utilities board pursuant to chapters 478, 479, 479A, and 479B.
1 16 This paragraph shall not be construed as granting the
1 17 department authority which has been expressly granted to the
1 18 utilities board to determine the route of utility
1 19 installations. If the department requires a utility company
1 20 permit, the department shall be required to act upon the
1 21 permit application within thirty days of its filing. In cases
1 22 of federal=aid highway projects on nonprimary highways, the
1 23 local authority with jurisdiction over the highway and the
1 24 department shall comply with all federal regulations and
1 25 statutes regarding utility accommodation.
1 26 Sec. 2. Section 479A.1, Code 2005, is amended to read as
1 27 follows:
1 28 479A.1 PURPOSE.
1 29 It is the purpose of the general assembly in enacting this
1 30 law to confer upon the utilities board the power and authority
1 31 to implement certain controls over the transportation of
1 32 natural gas to protect landowners and tenants from
1 33 environmental or economic damages which may result from the
1 34 construction, operation, or maintenance of a pipeline within
1 35 the state. It is also the purpose of the general assembly in
2 1 enacting this law to provide for the board to act as an agent
2 2 for the federal government in determining pipeline company
2 3 compliance with the standards of the federal government for
2 4 pipelines within the boundaries of the state.
2 5 Sec. 3. Sections 479A.3, 479A.5, 479A.6, 479A.8, 479A.10,
2 6 479A.12 through 479A.17, and 479A.19 through 479A.28, Code
2 7 2005, are repealed.
2 8 EXPLANATION
2 9 This bill concerns the regulation of interstate pipelines,
2 10 pipeline companies, and the underground storage of gas by the
2 11 utilities division of the department of commerce.
2 12 The bill strikes from the purpose of Code chapter 479A
2 13 conferring upon the utilities board authority over the
2 14 interstate transportation of natural gas and the protection of
2 15 landowners and tenants from the construction, operation, or
2 16 maintenance of a pipeline in this state.
2 17 The bill repeals a provision restricting the construction
2 18 of pipelines along highways, waters, and streams, a provision
2 19 requiring notice to the board prior to the construction of a
2 20 pipeline, a provision requiring a pipeline company to pay
2 21 certain inspection costs, a provision granting authority to
2 22 the utilities board to collect inspection fees and assess
2 23 civil penalties for failure to pay inspection fees, a
2 24 provision granting the utilities board the authority to adopt
2 25 rules for the enforcement of Code chapter 479A, and a
2 26 provision requiring pipeline companies to post a bond prior to
2 27 construction of a pipeline.
2 28 The bill also repeals a provision requiring filing of a
2 29 surety before construction begins, a provision granting
2 30 jurisdiction to the district court of any county for cases
2 31 arising under Code chapter 479A, a provision granting
2 32 authority to the utilities board to adopt rules establishing
2 33 standards for the restoration of agricultural land after
2 34 pipeline construction, a provision permitting a pipeline
2 35 company to enter private land for land surveys, and a
3 1 provision providing for civil penalties and judicial review.
3 2 The bill repeals a provision allowing the cancellation of
3 3 an agreement granting an easement by the person seeking the
3 4 easement and a provision permitting a landowner or pipeline
3 5 company to petition a magistrate for an appointment of an
3 6 arbitrator. The bill also repeals a provision prohibiting a
3 7 pipeline company from installing a subsequent pipeline upon an
3 8 existing easement until pending damage claims are resolved,
3 9 and a provision prohibiting a pipeline company from installing
3 10 a pipeline unless a written statement regarding construction
3 11 damages is on file with the board.
3 12 The bill repeals a provision regarding the negotiation of
3 13 an annual fee for an easement, and a provision describing
3 14 compensable losses and claims for damages due to use of a
3 15 pipeline easement. The bill repeals a provision relating to a
3 16 county board of supervisors making a determination of the
3 17 amount of damages caused by a pipeline company when installing
3 18 a pipeline, and a provision regarding compensation for
3 19 additional costs of new tile construction caused by an
3 20 existing pipeline. The bill also repeals a provision
3 21 regarding the reversion of an easement due to nonuse and a
3 22 provision permitting a landowner or contractor to require the
3 23 presence of the pipeline company during farmland improvement
3 24 near a pipeline.
3 25 The bill provides that the utilities board should only act
3 26 as an agent for the federal government and not directly
3 27 regulate interstate pipelines. The board shall continue to
3 28 inspect the construction, maintenance, and condition of
3 29 pipelines and underground storage facilities and collect fees
3 30 for inspection.
3 31 The bill makes other conforming corrections.
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