House
File
2389
-
Introduced
HOUSE
FILE
2389
BY
WILLEMS
A
BILL
FOR
An
Act
relating
to
agreements
between
landholders
and
1
developers
constructing
wind
energy
facilities.
2
BE
IT
ENACTED
BY
THE
GENERAL
ASSEMBLY
OF
THE
STATE
OF
IOWA:
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Section
1.
NEW
SECTION
.
558B.1
Definitions.
1
As
used
in
this
chapter,
unless
the
context
otherwise
2
requires:
3
1.
“Land”
means
real
estate,
any
fixtures,
and
airspace
4
above
the
real
estate.
5
2.
“Landholder”
means
a
person
holding
a
legal
or
equitable
6
interest
in
land,
including
as
a
titleholder,
leaseholder,
or
7
beneficiary.
8
3.
“Developer”
means
a
person
who
acquires
an
interest
in
9
land
for
purposes
of
constructing
a
wind
energy
facility.
10
4.
“Wind
energy
facility”
means
a
structure
or
equipment
11
which
has
the
primary
purpose
of
supporting
the
generation
and
12
delivery
of
electricity
of
at
least
two
megawatts
powered
by
13
wind,
and
includes
but
is
not
limited
to
any
of
the
following:
14
a.
Primary
structures
or
equipment
such
as
foundations,
15
walls,
towers,
supports,
turbines,
and
blades.
16
b.
Ancillary
structures
or
equipment
such
as
buildings,
17
driveways,
roadways,
lots,
ditches,
fences,
gates,
transmission
18
or
distribution
lines,
and
substations.
19
5.
“Wind
energy
facility
agreement”
or
“agreement”
means
a
20
written
arrangement
in
which
a
landholder
transfers,
conveys,
21
or
relinquishes
an
interest
in
land
to
a
developer
who
acquires
22
such
interest
and
any
attendant
rights
for
the
purpose
of
23
constructing
a
wind
energy
facility.
24
Sec.
2.
NEW
SECTION
.
558B.2
Special
terms.
25
1.
A
wind
energy
facility
agreement
may
be
in
the
form
of
a
26
servitude,
covenant,
easement,
deed
restriction
or
condition,
27
lease,
lease
purchase,
lease
option,
contract,
or
contract
28
option.
The
agreement
shall
be
deemed
to
be
an
easement
which
29
shall
run
with
the
land
benefited
and
burdened
and
shall
30
terminate
upon
the
conditions
stated
in
the
agreement.
31
2.
Construction
of
a
wind
energy
facility
commences
upon
32
the
modification
of
a
site
to
install
permanent
structures
33
and
equipment
associated
with
the
wind
energy
facility.
34
Construction
does
not
commence
upon
the
occurrence
of
any
of
35
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the
following:
1
a.
Performance
of
engineering
services
or
environmental
2
studies.
3
b.
Site
preparation,
including
the
removal
of
crops,
4
trees,
brush,
or
other
vegetative
growth;
the
construction
5
of
a
driveway
or
road;
general
earth
moving
for
leveling
or
6
compacting;
or
the
installation
of
temporary
utility
services.
7
Sec.
3.
NEW
SECTION
.
558B.3
Wind
energy
facility
agreement
8
——
confidentiality
provisions
void.
9
A
provision
in
a
wind
energy
facility
agreement
that
10
restricts
a
landholder
who
is
a
party
to
the
agreement
from
11
disclosing
the
terms
and
conditions
of
the
agreement
is
12
severable,
void,
and
unenforceable.
13
1.
The
confidentiality
provision
is
void
whether
the
14
confidentiality
provision
is
express
or
implied;
oral
15
or
written;
required
or
conditional;
or
contained
in
the
16
agreement,
or
in
a
related
document.
17
2.
This
section
does
not
affect
other
provisions
of
a
wind
18
energy
facility
agreement
or
a
related
document
which
can
be
19
given
effect
without
the
voided
provision.
20
3.
This
section
does
not
require
a
party
to
an
agreement
to
21
divulge
information
in
the
agreement
to
another
person.
22
Sec.
4.
NEW
SECTION
.
558B.4
Wind
energy
facility
agreement
23
——
construction
time
limit.
24
A
wind
energy
facility
agreement
terminates
if
construction
25
of
the
wind
energy
facility
has
not
commenced
within
three
26
years
after
the
effective
date
of
the
agreement.
However,
this
27
period
may
be
extended
in
writing
by
the
parties.
28
Sec.
5.
NEW
SECTION
.
558B.5
Wind
energy
facility
agreement
29
——
financial
assurance
for
decommissioning.
30
1.
A
wind
energy
facility
agreement
shall
include
a
31
financial
assurance
for
decommissioning
the
wind
energy
32
facility,
which
the
developer
shall
have
in
place
prior
to
33
construction.
34
2.
The
amount
of
financial
assurance
shall
be
sufficient
to
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pay
all
costs
associated
with
the
removal
of
the
wind
energy
1
facility
and
the
reclamation
of
the
land
at
the
end
of
the
2
facility’s
useful
life
as
stated
in
the
agreement.
3
3.
The
financial
assurance
shall
be
in
one
of
the
following
4
forms:
5
a.
The
deposit
of
moneys
or
government
securities
into
an
6
account
segregated
from
the
developer’s
assets
and
outside
the
7
developer’s
control,
including
but
not
limited
to
a
trust
or
8
escrow
account.
9
b.
A
certificate
of
deposit
that
is
issued
to
the
treasurer
10
of
state
by
an
eligible
lending
institution
as
defined
in
11
section
12.32,
if
and
to
the
extent
allowed
by
the
treasurer
of
12
state.
13
c.
A
surety
in
the
form
of
a
surety
bond,
letter
of
credit,
14
or
line
of
credit.
The
surety
bond
shall
be
executed
by
a
15
surety
company
authorized
to
do
business
in
this
state,
and
the
16
surety
bond
shall
be
continuous
in
nature.
17
4.
The
amount
of
financial
assurance
shall
be
payable
to
18
the
landholder
or
the
landholder’s
successor
in
interest
if
19
decommissioning
does
not
occur.
20
EXPLANATION
21
GENERAL.
This
bill
applies
when
a
landowner
agrees
to
22
allow
the
construction
of
a
wind
turbine
on
their
land.
The
23
bill
refers
to
the
wind
turbine
and
associated
construction
24
as
a
wind
energy
facility,
and
refers
to
the
agreement
as
a
25
wind
energy
facility
agreement
which
may
be
in
various
forms
26
including
a
servitude,
covenant,
easement,
deed
restriction
or
27
condition,
lease,
lease
purchase,
lease
option,
contract,
or
28
contract
option.
The
bill
provides
that
all
such
agreements
29
are
deemed
easements.
30
CONFIDENTIALITY.
The
bill
provides
that
any
confidentiality
31
provision
in
an
agreement
that
restricts
a
party
from
32
disclosing
the
terms
and
conditions
of
the
agreement
is
void.
33
CONSTRUCTION
TIME
LIMIT.
The
bill
provides
that
a
wind
34
energy
facility
agreement
terminates
if
construction
of
the
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2389
wind
energy
facility
has
not
commenced
within
three
years
after
1
the
effective
date
of
the
agreement.
However,
this
period
may
2
be
extended
by
the
parties.
3
FINANCIAL
ASSURANCE.
The
bill
provides
that
a
wind
energy
4
facility
agreement
must
include
a
form
of
financial
assurance
5
for
decommissioning
the
facility,
sufficient
to
pay
all
costs
6
associated
with
its
removal
and
the
reclamation
of
the
land
at
7
the
end
of
the
facility’s
useful
life.
The
financial
assurance
8
must
be
in
the
form
of
a
deposit
of
moneys
or
government
9
securities
into
a
type
of
trust
or
escrow
account.
It
may
also
10
be
a
certificate
of
deposit,
surety
bond,
letter
of
credit,
or
11
line
of
credit.
12
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