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: 6 TLSB 1294DP 81 7 kk/gg/14 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 31to 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 boardto 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. 3 32 LSB 1294DP 81 3 33 kk:rj/gg/14.1