House File 374 - Introduced HOUSE FILE 374 BY WORTHAN , DEYOE , HUSEMAN , HEARTSILL , STAED , WILLS , KAUFMANN , STANERSON , BYRNES , MOORE , FISHER , PAUSTIAN , and GRASSLEY A BILL FOR An Act imposing insurance requirements prior to the granting 1 of a permit to construct, maintain, or operate a hazardous 2 liquid pipeline, and including effective date and 3 retroactive applicability provisions. 4 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 5 TLSB 2419YH (5) 86 rn/nh

H.F. 374 Section 1. Section 479B.13, Code 2015, is amended to read 1 as follows: 2 479B.13 Financial condition of permittee —— bond —— 3 insurance . 4 Before a permit is granted under this chapter the applicant 5 must satisfy the board that of both of the following: 6 1. That the applicant has property within this state other 7 than pipelines or underground storage facilities, subject to 8 execution of a value in excess of two hundred fifty thousand 9 dollars, or the applicant must file and maintain with the board 10 a surety bond in the penal sum of two hundred fifty thousand 11 dollars with surety approved by the board, conditioned that 12 the applicant will pay any and all damages legally recovered 13 against it growing out of the construction, maintenance, or 14 operation of its pipeline or underground storage facilities 15 in this state. When the pipeline company deposits with the 16 board security satisfactory to the board as a guaranty for the 17 payment of the damages, or furnishes to the board satisfactory 18 proofs of its solvency and financial ability to pay the 19 damages, the pipeline company is relieved of the provisions 20 requiring bond. 21 2. For a pipeline to be constructed on or after January 1, 22 2015, that the applicant has obtained an amount of insurance 23 sufficient to provide reasonable and necessary remedial 24 response and to respond in damages for claims arising from 25 the accidental discharge of hazardous liquid. The amount 26 of insurance required pursuant to this subsection shall be 27 determined by the board upon review of the petition submitted 28 pursuant to section 479B.5. The applicant shall submit annual 29 verification to the board that the insurance has been obtained 30 and remains in force. Insurance obtained pursuant to this 31 subsection shall not be canceled, revoked, or allowed to 32 terminate without board approval. 33 Sec. 2. EFFECTIVE UPON ENACTMENT. This Act, being deemed of 34 immediate importance, takes effect upon enactment. 35 -1- LSB 2419YH (5) 86 rn/nh 1/ 3

H.F. 374 Sec. 3. RETROACTIVE APPLICABILITY. This Act applies 1 retroactively to January 1, 2015. 2 EXPLANATION 3 The inclusion of this explanation does not constitute agreement with 4 the explanation’s substance by the members of the general assembly. 5 This bill requires insurance to be obtained by an applicant 6 prior to the granting of a permit to construct, maintain, or 7 operate a hazardous liquid pipeline. 8 Currently, Code section 479B.13 requires an applicant for a 9 permit to construct, maintain, or operate a hazardous liquid 10 pipeline or underground storage facility to demonstrate that 11 the applicant has property within Iowa other than pipelines 12 or underground storage facilities, subject to execution of a 13 value in excess of $250,000, or that the applicant has filed 14 and will maintain with the board a surety bond in the penal sum 15 of $250,000 with surety approved by the board, conditioned that 16 the applicant will pay any and all damages legally recovered 17 against it growing out of the construction, maintenance, or 18 operation of its pipeline or underground storage facilities. 19 The bill adds the additional requirement, applicable to 20 hazardous liquid pipelines constructed on or after January 1, 21 2015, that the applicant obtain insurance sufficient to provide 22 reasonable and necessary remedial response and to respond 23 in damages for claims arising from the accidental discharge 24 of hazardous liquid. The bill specifies that the amount of 25 insurance shall be determined by the Iowa utilities board upon 26 review of the petition the applicant submitted pursuant to Code 27 section 479B.5. The bill requires the applicant to submit 28 annual verification to the board that the insurance has been 29 obtained and remains in force, and provides that the insurance 30 shall not be canceled, revoked, or allowed to terminate 31 without board approval. Pursuant to Code section 479B.14, 32 these requirements are also applicable to applications for an 33 extension of an existing permit. 34 The bill takes effect upon enactment, and is retroactively 35 -2- LSB 2419YH (5) 86 rn/nh 2/ 3