H.F. _____ Section 1. NEW SECTION . 476D.1 Short title. 1 This chapter shall be known and may be cited as the “Stray 2 Current and Voltage Remediation Act” . 3 Sec. 2. NEW SECTION . 476D.2 Legislative findings and 4 intent. 5 The general assembly finds that the efficient and safe 6 distribution of electricity is critical to the well-being 7 of the citizens and economy of this state, including the 8 business of agriculture, and that this chapter is necessary for 9 the protection of the public welfare. The general assembly 10 recognizes that stray current or voltage is a normal, inherent, 11 and unavoidable result of electricity traveling through 12 grounded electrical systems, including a dairy producer’s 13 on-farm system and a utility’s distribution system, which 14 systems are required by the national electrical code and the 15 national electrical safety code to be grounded to the earth 16 to ensure continuous safety and reliability. The general 17 assembly finds that the potential impact of stray current or 18 voltage on dairy cows is a matter of interest and concern to 19 dairy producers with dairies situated near and served by a 20 multigrounded multiple exchange electrical distribution system 21 or similar electrical distribution system utilized by utilities 22 in this state. Scientific research has established a level of 23 stray current or voltage at or below which no effect on a dairy 24 cow’s behavior, health, or milk production has been shown. To 25 provide for the continued safe and efficient availability of 26 electricity while addressing complaints regarding stray current 27 or voltage, it is necessary and appropriate to establish a 28 uniform preventive action level; establish uniform procedures 29 and protocols for measurements of stray current or voltage; 30 require, when necessary, that the sources of stray current 31 or voltage be identified; require, when necessary, adequate 32 remediation; and establish procedures for handling complaints. 33 Sec. 3. NEW SECTION . 476D.3 Definitions. 34 As used in this chapter, unless the context otherwise 35 -1- LSB 5428YC (8) 84 rn/nh 1/ 12

H.F. _____ requires: 1 1. “Adequate remediation” means corrective action by a 2 utility which results in, and is reasonably likely to sustain, 3 a reduction of stray current or voltage attributable to the 4 utility’s distribution system to fifty percent or less of the 5 preventive action level. 6 2. “Board” means the utilities board within the utilities 7 division of the department of commerce. 8 3. “Cow contact points” means any two electrically 9 conductive points which a dairy cow may, in its normal 10 environment, unavoidably and simultaneously contact. 11 4. “Dairy producer” means any person or entity that owns or 12 operates a dairy farm or who owns cows that do or are intended 13 to produce milk. 14 5. “Preventive action level” is stray current or voltage 15 constituting either of the following: 16 a. A steady-state, root mean square alternating current 17 of two milliamp or more through a five hundred ohm resistor 18 connected between cow contact points, as measured by a true 19 root mean square meter. 20 b. A steady-state, root mean square alternating current 21 voltage of one volt or more, across or in parallel with a five 22 hundred ohm resistor connected between cow contact points, as 23 measured by a true root mean square meter. 24 6. “Steady-state” means the value of a current or voltage 25 after an amount of time where all transients have decayed to a 26 negligible value. 27 7. “Stray current or voltage” means either of the following: 28 a. Any steady-state, sixty hertz, including harmonics 29 thereof, root mean square alternating current of less than 30 twenty milliamp through a five hundred ohm resistor connected 31 between cow contact points, as measured by a true root mean 32 square meter. 33 b. Any steady-state, sixty hertz, including harmonics 34 thereof, root mean square alternating current voltage of less 35 -2- LSB 5428YC (8) 84 rn/nh 2/ 12

H.F. _____ than ten volts, across or in parallel with a five hundred ohm 1 resistor connected between cow contact points, as measured by 2 a true root mean square meter. 3 8. “Utility” means a public utility as defined in Code 4 section 476.1. 5 Sec. 4. NEW SECTION . 476D.4 Rules. 6 The board shall by rule establish standard procedures 7 and protocols which may be used for the measurement of stray 8 current or voltage. The board shall review the rules from time 9 to time, or upon petition to the board, to ensure that the 10 standard procedures and protocols continue to be scientifically 11 and technologically accurate and a reliable means of detecting 12 stray current or voltage. Other measurements of stray current 13 or voltage made using other procedures and protocols may be 14 considered by the board in appropriate cases. 15 Sec. 5. NEW SECTION . 476D.5 Claims —— notice —— utility 16 response. 17 1. A dairy producer in this state who claims that its dairy 18 cows are being affected by any form or type of electrical 19 energy allegedly attributable to a utility including, without 20 limitation, stray current or voltage, shall, before commencing 21 any civil action against the utility, provide written notice 22 of the claim to the utility. The notice shall specify why the 23 dairy producer believes its dairy cows are being affected by 24 electrical energy attributable to the utility. Within fourteen 25 business days of receipt of such notice, if the notice alleges 26 stray current or voltage, the utility shall make arrangements 27 to take or cause measurements to be taken at cow contact points 28 at the dairy producer’s dairy to identify the existence and 29 magnitude of stray current or voltage, if any. 30 2. If the utility finds a level of stray current or voltage 31 at cow contact points in excess of the preventive action level, 32 the utility shall promptly identify that portion, if any, 33 of the stray current or voltage that is attributable to the 34 utility’s distribution system. If that portion of the stray 35 -3- LSB 5428YC (8) 84 rn/nh 3/ 12

H.F. _____ current or voltage at cow contact points attributable to the 1 utility’s distribution system exceeds fifty percent of the 2 preventive action level, the utility shall, within fifteen 3 business days, commence and diligently pursue to completion, 4 remedial procedures which result in, and are reasonably likely 5 to sustain, a reduction of the stray current or voltage at 6 cow contact points attributable to the utility’s distribution 7 system to fifty percent or less of the preventive action level. 8 Sec. 6. NEW SECTION . 476D.6 Jurisdiction —— contested case 9 proceedings —— orders. 10 The board shall have exclusive, initial jurisdiction 11 regarding actions taken pursuant to section 476D.5. Upon 12 receiving a request from a dairy producer to review such 13 actions, the board shall conduct a contested case proceeding 14 pursuant to chapter 17A to determine whether a utility has 15 complied with the board’s rules regarding measurement of 16 stray current or voltage, whether the utility’s measurements 17 demonstrated stray current or voltage at or above the 18 preventive action level, whether any other measurements 19 demonstrated stray current or voltage at or above the 20 preventive action level, whether the utility properly 21 identified that portion of the stray current or voltage at 22 cow contact points attributable to the utility’s distribution 23 system, and whether the utility has complied with its 24 remediation obligation under this chapter. The board may also 25 arrange for third-party measurement of stray current or voltage 26 in cases in which the board finds it reasonable to do so. 27 1. If the board determines that the utility complied with 28 the rules regarding measurement of stray current or voltage, 29 and properly identified no stray current or voltage in excess 30 of the preventive action level, the board may issue an order 31 that the utility has provided adequate service. The board’s 32 order shall be binding on the parties. 33 2. If the board determines that the utility complied with 34 the rules regarding measurement of stray current or voltage, 35 -4- LSB 5428YC (8) 84 rn/nh 4/ 12

H.F. _____ the utility properly identified stray current or voltage in 1 excess of the preventive action level, and the utility properly 2 identified that the portion of stray current or voltage 3 attributable to the utility’s distribution system was fifty 4 percent or less of the preventive action level, the board may 5 issue an order that the utility provided adequate service. The 6 board’s order shall be binding on the parties, subject only to 7 the provisions of section 476D.7. 8 3. If the board determines that the utility complied with 9 the rules regarding measurement of stray current or voltage, 10 the utility properly identified stray current or voltage 11 in excess of the preventive action level, and the utility 12 properly identified that the portion of stray current or 13 voltage attributable to the utility’s distribution system 14 exceeded fifty percent of the preventive action level, the 15 board may determine the adequacy of the utility’s remediation 16 efforts. The board’s order shall be binding on the parties, 17 subject only to the provisions of section 476D.7. If the dairy 18 producer has complied with the notice provisions set forth in 19 section 476D.5, and the board has made a determination that the 20 conditions set forth in this subsection are met, then the dairy 21 producer may, not later than one year following completion of 22 adequate remediation, or one year following the issuance of the 23 board’s final order, whichever occurs later, commence a civil 24 action seeking monetary damages against the utility. In any 25 such civil action, damages shall be limited as set forth in 26 section 476D.8. 27 4. If the board determines that the utility failed to 28 comply with the rules regarding measurement of stray current or 29 voltage, the utility failed to properly identify, when required 30 pursuant to section 476D.5 to do so, that portion of stray 31 current or voltage attributable to the utility’s distribution 32 system, or the utility failed to provide adequate remediation, 33 the board shall order the utility to take measurements of stray 34 current or voltage in conformance with board rules, or identify 35 -5- LSB 5428YC (8) 84 rn/nh 5/ 12

H.F. _____ that portion of the stray current or voltage attributable to 1 the utility’s distribution system and, if necessary, to provide 2 adequate remediation. The board’s order shall be binding on 3 the parties, subject only to the provisions of section 476D.7. 4 If the dairy producer complied with the notice provisions set 5 forth in section 476D.5, and the board made a determination 6 that the portion of stray current or voltage attributable to 7 the utility’s distribution system exceeded fifty percent of 8 the preventive action level, then the dairy producer may, 9 not later than one year following completion of adequate 10 remediation, or one year following the issuance of the board’s 11 final order, whichever occurs later, commence a civil action 12 seeking monetary damages against the utility. In any such 13 civil action, damages shall be limited as set forth in section 14 476D.8. 15 5. If the board determines that a dairy producer made or 16 pursued a claim in bad faith or for purposes of harassment 17 of the utility, the board shall require the dairy producer 18 to pay the utility’s actual costs of investigation and 19 defense. If the board determines that a utility acted in 20 bad faith, or for purposes of harassment or delay, the board 21 shall require the utility to pay the dairy producer’s actual 22 costs of investigation, if any, and costs of preparation and 23 presentation of the claim before the board. The board’s order 24 shall be binding on the parties, subject only to the provisions 25 of section 476D.7. 26 Sec. 7. NEW SECTION . 476D.7 Civil actions. 27 A civil action shall not be commenced by a dairy producer 28 against a utility seeking damages or other relief allegedly 29 due to injury caused by any form or type of electrical energy 30 allegedly attributable to a utility including, without 31 limitation, stray current or voltage unless the dairy producer 32 has complied with the provisions of section 476D.5, and the 33 board has issued an order pursuant to section 476D.6. In any 34 civil action against a utility for damages or other relief, 35 -6- LSB 5428YC (8) 84 rn/nh 6/ 12

H.F. _____ after the dairy producer has complied with the provisions of 1 section 476D.5, and the board has issued an order pursuant 2 to section 476D.6, the board’s order shall be admissible in 3 evidence in such civil action. 4 Sec. 8. NEW SECTION . 476D.8 Damages. 5 In any civil action against a utility for damages pursuant 6 to this chapter or other causes of action where damages 7 are alleged to be caused by any form or type of electrical 8 energy allegedly attributable to a utility including, without 9 limitation, stray current or voltage, a dairy producer shall 10 be limited to those damages which were incurred by the dairy 11 producer during that period of time commencing twelve months 12 prior to the dairy producer’s provision of notice to the 13 utility and ending on the date of completion of adequate 14 remediation, if any, and with respect to stray current or 15 voltage claims, were caused by that portion of the stray 16 current or voltage attributable to the utility’s distribution 17 system. In any action for damages, a utility may assert a 18 defense of comparative fault as set out in section 668.3. 19 Sec. 9. Section 657.1, subsection 2, Code 2011, is amended 20 to read as follows: 21 2. Notwithstanding subsection 1 , in an any type of nuisance 22 action to abate a nuisance against an electric utility, an 23 electric utility may assert a defense of comparative fault as 24 set out in section 668.3 if the electric utility demonstrates 25 that in the course of providing electric services to its 26 customers it has complied with engineering and safety standards 27 as adopted by the utilities board of the department of 28 commerce, and if the electric utility has secured all permits 29 and approvals, as required by state law and local ordinances, 30 necessary to perform activities alleged to constitute a 31 nuisance. In addition, a claim for nuisance shall not be 32 asserted against an electric utility for damages due to stray 33 current or voltage. Any claim against an electric utility for 34 damages due to stray current or voltage shall be limited to 35 -7- LSB 5428YC (8) 84 rn/nh 7/ 12

H.F. _____ claims of negligence, and shall be subject to the provisions of 1 chapters 476D and 668. The utility’s conduct in such claims 2 shall be judged using a standard of ordinary care under the 3 existing circumstances. 4 EXPLANATION 5 This bill concerns stray electric current or voltage, 6 including the potential impact of stray electric current or 7 voltage on dairy cows, and specifies procedures for adopting 8 rules, filing complaints, measuring stray electric current or 9 voltage, taking corrective action, and pursuing civil actions 10 for damages. 11 The bill commences with a statement of legislative intent, 12 noting that the general assembly finds that the potential 13 impact of stray current or voltage on dairy cows is a matter of 14 interest and concern to dairy producers with dairies situated 15 near and served by electrical distribution systems utilized by 16 utilities in Iowa, and that scientific research has established 17 a level of stray current or voltage at or below which no effect 18 on a dairy cow’s behavior, health, or milk production has been 19 shown. 20 The bill provides for the adoption of administrative rules 21 by the Iowa utilities board establishing standard procedures 22 and protocols for the measurement of stray current or voltage. 23 The bill states that other measurements of stray current or 24 voltage made using other procedures and protocols may be 25 considered by the board in appropriate cases. 26 The bill provides that a dairy producer who claims that its 27 dairy cows are being affected by any form or type of electrical 28 energy allegedly attributable to a utility including, without 29 limitation, stray current or voltage, shall, before commencing 30 any civil action against the utility, provide written notice 31 to the utility specifying why the dairy producer believes its 32 dairy cows are being affected by electrical energy attributable 33 to the utility. Within 14 business days of receipt of the 34 notice, if the notice alleges stray current or voltage, the 35 -8- LSB 5428YC (8) 84 rn/nh 8/ 12

H.F. _____ bill directs the utility to make arrangements to take or cause 1 measurements to be taken at cow contact points at the dairy 2 producer’s dairy to identify the existence and magnitude of 3 stray current or voltage, if any. The bill states that if a 4 level of stray current or voltage in excess of a specified 5 preventive action level is determined, the utility must 6 identify that portion which is attributable to the utility’s 7 distribution system. If the portion of the stray current or 8 voltage at cow contact points attributable to the utility’s 9 distribution system exceeds 50 percent of the preventive action 10 level, the bill requires the utility, within 15 business days, 11 to commence and diligently pursue to completion remedial 12 procedures which shall reduce, and are reasonably likely to 13 sustain, that portion of the stray current or voltage at cow 14 contact points attributable to the utility’s distribution 15 system to 50 percent or less of the preventive action level. 16 The bill provides that the board shall have exclusive, 17 initial jurisdiction regarding complaints by dairy producers 18 and actions by utilities. Upon receiving a request from a 19 dairy producer to review such actions, the board shall conduct 20 a contested case proceeding to determine whether a utility has 21 complied with the rules regarding measurement of stray current 22 or voltage, whether the utility’s measurements demonstrated 23 stray current or voltage at or above the preventive action 24 level, whether any other measurements demonstrated stray 25 current or voltage at or above the preventive action level, 26 whether the utility has properly identified that portion of the 27 stray current or voltage at cow contact points attributable 28 to the utility’s distribution system, and whether the utility 29 has complied with its remediation obligation. The board is 30 authorized to arrange for third-party measurement of stray 31 current or voltage if the board determines it reasonable to do 32 so. 33 The bill provides, pursuant to a contested case proceeding, 34 for the issuance of orders by the board. If a utility is found 35 -9- LSB 5428YC (8) 84 rn/nh 9/ 12

H.F. _____ to have complied with the rules regarding measurement of stray 1 current or voltage, and properly identified no stray current or 2 voltage in excess of the preventive action level, the board may 3 issue an order that the utility has provided adequate service. 4 If a utility complied with the rules regarding measurement of 5 stray current or voltage, properly identified stray current 6 or voltage in excess of the preventive action level, and 7 properly identified that the portion of stray current or 8 voltage attributable to the utility’s distribution system was 9 50 percent or less of the preventive action level, the board 10 may issue an order that the utility provided adequate service. 11 If a utility complied with the rules regarding measurement of 12 stray current or voltage, the utility properly identified stray 13 current or voltage in excess of the preventive action level, 14 and the utility properly identified that the portion of stray 15 current or voltage attributable to the utility’s distribution 16 system exceeded 50 percent of the preventive action level, the 17 board may determine the adequacy of the utility’s remediation 18 efforts. The bill states that in this event, and if a dairy 19 producer has complied with the notice provisions, the dairy 20 producer may, not later than one year following completion 21 of adequate remediation, or one year following the issuance 22 of the board’s final order thereon, whichever occurs later, 23 commence a civil action seeking monetary damages against 24 the utility. If a utility failed to comply with the rules 25 regarding measurement of stray current or voltage, failed to 26 properly identify when required to do so that portion of stray 27 current or voltage attributable to the utility’s distribution 28 system, or failed to provide adequate remediation, the board 29 shall order the utility to take measurements of stray current 30 or voltage in conformance with board rules, or identify that 31 portion of the stray current or voltage attributable to the 32 utility’s distribution system and, if necessary, to provide 33 adequate remediation. The bill states that if a dairy producer 34 complied with the notice provisions, and the board made a 35 -10- LSB 5428YC (8) 84 rn/nh 10/ 12

H.F. _____ determination that the portion of stray current or voltage 1 attributable to the utility’s distribution system exceeded 50 2 percent of the preventive action level, the dairy producer 3 may, not later than one year following completion of adequate 4 remediation, or one year following the issuance of the board’s 5 final order, whichever occurs later, similarly commence a civil 6 action seeking monetary damages against the utility. The bill 7 states that if a dairy producer made or pursued a claim in bad 8 faith or for purposes of harassment of the utility, the board 9 shall require the dairy producer to pay the utility’s actual 10 costs of investigation and defense, and if a utility acted in 11 bad faith, or for purposes of harassment or delay, the board 12 shall require the utility to pay the dairy producer’s actual 13 costs of investigation, if any, and costs of preparation and 14 presentation of the claim before the board. 15 The bill specifies that in any civil action against a 16 utility for damages alleged to be caused by any form or type 17 of electrical energy allegedly attributable to a utility 18 including, without limitation, stray current or voltage, a 19 dairy producer shall be limited to those damages which were 20 incurred by the dairy producer during that period of time 21 commencing 12 months prior to the dairy producer’s provision of 22 notice to the utility and ending on the date of completion of 23 adequate remediation, if any, and with respect to stray current 24 or voltage claims, were caused by that portion of the stray 25 current or voltage attributable to the utility’s distribution 26 system. In any action for damages, a utility may assert a 27 defense of comparative fault as set out in Code section 668.3. 28 Additionally, with respect to abatement of nuisance 29 provisions contained in Code section 657.1, the bill provides 30 that a claim for nuisance shall not be asserted against an 31 electric utility for damages due to stray current or voltage, 32 and shall be limited to claims of negligence and subject to 33 the bill’s provisions for claims regarding dairy cows and 34 the comparative fault provisions of Code chapter 668. The 35 -11- LSB 5428YC (8) 84 rn/nh 11/ 12