HF 2320 (LSB 5862YH (2) 89)

HOUSE FILE 2320

BY  JENEARY

A BILL FOR

An Act relating to certain actions of utility companies and the Iowa utilities board and including applicability provisions.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:

    Section 1.  Section 6A.21, subsection 2, Code 2022, is amended to read as follows:
   2.  The limitation on the definition of public use, public purpose, or public improvement does not apply to the establishment, relocation, or improvement of a road pursuant to chapter 306, or to the establishment of a railway under the supervision of the department of transportation as provided in section 327C.2, or to an airport as defined in section 328.1, or to land acquired in order to replace or mitigate land used in a road project when federal law requires replacement or mitigation, or a project undertaken by a public utility as defined in section 476.1, subsection 3. This limitation also does not apply to utilities, persons, companies, or corporations under the jurisdiction of the Iowa utilities board in the department of commerce or to any other utility conferred the right by statute to condemn private property or to otherwise exercise the power of eminent domain, except to the extent such purpose includes construction of aboveground merchant lines.
    Sec. 2.  Section 6A.22, subsection 2, paragraph a, subparagraph (2), Code 2022, is amended to read as follows:
   (2)  The acquisition of any interest in property necessary to the function of a public or private utility to the extent such purpose does not include construction of aboveground merchant lines, or necessary to the function of a common carrier or an airport or airport system.
    Sec. 3.  Section 479B.2, Code 2022, is amended by adding the following new subsection:
   NEW SUBSECTION.  4A.  “Public convenience and necessity” means that the services to be provided by the pipeline are necessary to assure an economical and reliable supply of the hazardous liquid and that those services benefit members of the general public who will be served by the product being transported in the pipeline.
    Sec. 4.  APPLICABILITY.  The following apply to projects or condemnation proceedings commenced on or after July 1, 2022:
   1.  The section of this Act amending section 6A.21, subsection 2.
   2.  The section of this Act amending section 6A.22, subsection 2, paragraph “a”, subparagraph (2).
    Sec. 5.  APPLICABILITY.  The following applies to permit petitions filed under chapter 479B on or after July 1, 2022:
   The section of this Act amending section 479B.2.
EXPLANATION
The inclusion of this explanation does not constitute agreement with
the explanation’s substance by the members of the general assembly.
   This bill relates to certain actions of utility companies and the Iowa utilities board.
   Generally, under Code chapter 6A, the authority of an acquiring agency to condemn any private property through eminent domain may only be exercised for a public purpose, public use, or public improvement. However, Code section 6A.21 provides that “public use” or “public purpose” or “public improvement” does not include the authority to condemn agricultural land for private development purposes unless the owner of the agricultural land consents to the condemnation. Under current law, this limitation on the definition of “public use” or “public purpose” or “public improvement” does not apply to utilities, persons, companies, or corporations under the jurisdiction of the Iowa utilities board or to any other utility conferred the right by statute to condemn private property or to otherwise exercise the power of eminent domain, except to the extent such purpose includes construction of aboveground merchant lines. The bill strikes this exclusion relating to utilities and persons or entities under the jurisdiction of the Iowa utilities board and instead provides that the limitation on the definition of “public use” or “public purpose” or “public improvement” relating to the prohibition against condemnation of agricultural property does not apply to a project undertaken by a public utility, as defined in Code section 476.1. The prohibition on the condemnation of agricultural land for the construction of aboveground merchant lines remains by operation of the definition of “private development purposes” in Code section 6A.21.
   The bill also amends the portion of the definition of “public use”, “public purpose”, or “public improvement” under Code section 6A.22 to exclude the acquisition of any interest in property necessary to the function of a private utility or a common carrier.
   The bill adds a definition of “public convenience and necessity” to Code chapter 479B, which governs the granting of permits for a pipeline company doing business in this state to construct, maintain, and operate a pipeline. Under Code section 479B.9, the Iowa utilities board shall not grant a permit unless the board determines that the proposed services will promote the public convenience and necessity.
   The bill includes applicability provisions.