H.F. 565 Section 1. Section 479A.11, Code 2023, is amended to read 1 as follows: 2 479A.11 Damages. 3 1. A pipeline company operating pipelines or underground 4 storage shall be given reasonable access to the pipelines and 5 storage areas for the purpose of constructing, operating, 6 maintaining, or locating their pipes, pumps, pressure 7 apparatus, or other stations, wells, devices, or equipment used 8 in or upon a pipeline or storage area, but shall pay the owner 9 of the lands for the right of entry and the owner of crops on 10 the land all damages caused by entering, using, or occupying 11 the lands for these purposes; and shall pay to the owner of the 12 lands, after the completion of construction of the pipeline or 13 storage, all damages caused by settling of the soil along and 14 above the pipeline, and wash or erosion of the soil along the 15 pipeline due to the construction of the pipeline. However, 16 this section does not prevent the execution of an agreement 17 with other terms between the pipeline company and the owner of 18 the land or crops with reference to their use. 19 2. A claim for crop yield loss damages pursuant to this 20 section shall not be precluded from renegotiation under section 21 6B.52 on the grounds that the damages were apparent at the time 22 of settlement. 23 Sec. 2. Section 479B.4, Code 2023, is amended by adding the 24 following new subsection: 25 NEW SUBSECTION . 7. The board shall not issue a permit, or 26 conduct a contested case proceeding relating to the issuance 27 of a permit, for a liquefied carbon dioxide pipeline until the 28 federal pipeline and hazardous materials safety administration 29 provides new rules updating the safety standards for liquefied 30 carbon dioxide pipelines, including requirements related to 31 emergency preparedness and response. 32 Sec. 3. Section 479B.9, Code 2023, is amended to read as 33 follows: 34 479B.9 Final order —— condition. 35 -1- LSB 1404HV (1) 90 es/rn 1/ 7

H.F. 565 The board may grant a permit in whole or in part upon 1 terms, conditions, and restrictions as to location and route 2 as it determines to be just and proper. A permit shall not be 3 granted to a pipeline company unless the board determines that 4 the proposed services will promote the public convenience and 5 necessity. The board shall not grant a permit to construct 6 a liquefied carbon dioxide pipeline unless such a permit is 7 expressly conditioned upon the pipeline company obtaining 8 all other applicable permits, including federal and state 9 regulatory permits, state and local highway and road crossing 10 permits, and local zoning permits. 11 Sec. 4. Section 479B.16, subsection 1, Code 2023, is amended 12 to read as follows: 13 1. A pipeline company granted a pipeline permit shall , 14 subject to subsections 4 and 5, be vested with the right of 15 eminent domain, to the extent necessary and as prescribed and 16 approved by the board, not exceeding seventy-five feet in 17 width for right-of-way and not exceeding one acre in any one 18 location in addition to right-of-way for the location of pumps, 19 pressure apparatus, or other stations or equipment necessary 20 to the proper operation of its pipeline. The board may grant 21 additional eminent domain rights where the pipeline company 22 has presented sufficient evidence to adequately demonstrate 23 that a greater area is required for the proper construction, 24 operation, and maintenance of the pipeline or for the location 25 of pumps, pressure apparatus, or other stations or equipment 26 necessary to the proper operation of its pipeline. 27 Sec. 5. Section 479B.16, Code 2023, is amended by adding the 28 following new subsections: 29 NEW SUBSECTION . 4. The board shall not grant a liquefied 30 carbon dioxide pipeline company the right of eminent domain 31 under this chapter for an interstate hazardous liquid pipeline 32 project unless the company acquires at least ninety percent of 33 the affected route miles through voluntary easements or through 34 preexisting easements. The company shall submit regular 35 -2- LSB 1404HV (1) 90 es/rn 2/ 7

H.F. 565 reports on its progress in acquiring voluntary easements as 1 determined by the board. 2 NEW SUBSECTION . 5. The board shall not grant a liquefied 3 carbon dioxide pipeline company the right of eminent domain 4 under this chapter for an interstate hazardous liquid pipeline 5 project unless the company first acquires all applicable 6 pipeline construction and zoning permits from the other states 7 the project will be constructed in. 8 Sec. 6. Section 479B.20, subsection 5, Code 2023, is amended 9 to read as follows: 10 5. If the pipeline company or its contractor does not 11 comply with the requirements of this section , with the land 12 restoration plan or line location, or with an independent 13 agreement on land restoration executed in accordance with 14 subsection 10 , the county board of supervisors may petition the 15 board for an order requiring corrective action to be taken. In 16 addition, the county board of supervisors or a landowner may 17 file a complaint with the board seeking imposition of civil 18 penalties under section 479B.21 . A landowner may supply a copy 19 of the complaint to the county board of supervisors where the 20 complaint originated. 21 Sec. 7. Section 479B.20, Code 2023, is amended by adding the 22 following new subsection: 23 NEW SUBSECTION . 13. For the purposes of this section, 24 “landowner” also includes a farm tenant. 25 Sec. 8. Section 479B.29, Code 2023, is amended to read as 26 follows: 27 479B.29 Particular damage claims. 28 1. Compensable losses shall include , but are not limited to , 29 all of the following: 30 a. Loss or reduced yield of crops or forage on the pipeline 31 right-of-way, whether caused directly by construction or from 32 disturbance of usual farm operations. 33 b. Loss or reduced yield of crops or yield from land near 34 the pipeline right-of-way resulting from lack of timely access 35 -3- LSB 1404HV (1) 90 es/rn 3/ 7

H.F. 565 to the land or other disturbance of usual farm operations, 1 including interference with irrigation or drainage . 2 c. Fertilizer, lime, or organic material applied by the 3 landowner to restore land disturbed by construction to full 4 productivity. 5 d. Loss of or damage to trees of commercial or other value 6 that occurs at the time of construction, restoration, or at the 7 time of any subsequent work by the pipeline company. 8 e. The cost of or losses in moving or relocating livestock, 9 and the loss of gain by or the death or injury of livestock 10 caused by the interruption or relocation of normal feeding. 11 f. Erosion and soil compaction on lands attributable to 12 pipeline construction. 13 g. Damage to farm equipment caused by striking a pipeline, 14 debris, or other material reasonably associated with pipeline 15 construction while engaged in normal farming operations as 16 defined in section 480.1 . 17 h. Damage to soil or water conservation structures caused 18 by construction, restoration, or subsequent work by the 19 pipeline company including but not limited to terraces, grassed 20 waterways, water and sediment control basins, ponds, saturated 21 buffers, and biofilters. 22 i. Damage to irrigation or drainage systems caused by 23 construction, restoration, or subsequent work by the pipeline 24 company. 25 2. A claim for damage for future crop deficiency within 26 the easement strip damages incurred under this section shall 27 not be precluded from renegotiation under section 6B.52 on 28 the grounds that it was apparent at the time of settlement 29 unless the settlement expressly releases the pipeline company 30 from claims for damage to the productivity of the soil . The 31 landowner shall notify the pipeline company in writing fourteen 32 days prior to harvest in each year to assess crop deficiency. 33 3. For the purposes of this section, “landowner” also 34 includes a farm tenant. 35 -4- LSB 1404HV (1) 90 es/rn 4/ 7

H.F. 565 4. A landowner that incurred damage under this section is 1 eligible for compensation for damages. A landowner may file an 2 action for relief against a pipeline company in small claims 3 or district court for a violation of this section or pursue 4 remedies under section 479B.30, subsection 7. 5 Sec. 9. Section 479B.30, subsection 7, Code 2023, is amended 6 to read as follows: 7 7. As used in this section , “damages” means compensation for 8 damages to the land, crops, and other personal property caused 9 by the construction of a pipeline and its attendant structures 10 or underground storage facility , or a compensable loss as 11 defined in section 479B.29, subsection 1, but does not include 12 compensation for a property interest, and “landowner” includes 13 a farm tenant. 14 Sec. 10. EFFECTIVE DATE. This Act, being deemed of 15 immediate importance, takes effect upon enactment. 16 Sec. 11. APPLICABILITY. This Act applies to all 17 applications for a permit to construct a pipeline pursuant to 18 chapter 479B filed with the Iowa utilities board on or after 19 July 1, 2021, and to permits issued on or after the effective 20 date of this Act. 21 EXPLANATION 22 The inclusion of this explanation does not constitute agreement with 23 the explanation’s substance by the members of the general assembly. 24 This bill relates to easement requirements for utilities and 25 landowner rights regarding pipeline construction. 26 The bill provides that the Iowa utilities board (board) 27 shall not issue a permit for a liquefied carbon dioxide 28 pipeline until the federal pipeline and hazardous materials 29 safety administration provides new rules updating the safety 30 standards for liquefied carbon dioxide pipelines. The bill 31 also provides that the board shall not grant a permit to 32 construct a liquefied carbon dioxide pipeline unless the permit 33 is conditioned upon the pipeline company obtaining all other 34 applicable permits, including federal and state regulatory 35 -5- LSB 1404HV (1) 90 es/rn 5/ 7

H.F. 565 permits, state and local highway and road crossing permits, and 1 local zoning permits. 2 The bill requires a liquefied carbon dioxide pipeline 3 company seeking to use eminent domain to first acquire at 4 least 90 percent of the affected route miles through voluntary 5 easements or through preexisting easements. The bill prohibits 6 the board from granting a liquefied carbon dioxide pipeline 7 company the right of eminent domain for an interstate hazardous 8 liquid pipeline project unless the company first acquires all 9 applicable pipeline construction and zoning permits from the 10 other states the project will be constructed in. The company 11 shall submit regular progress reports regarding easement 12 acquisition as determined by the board within the utilities 13 division of the department of commerce. 14 The bill allows a landowner to file a complaint with the 15 board and to notify the relevant county board of supervisors of 16 a violation of land restoration standards. The bill expands 17 the meaning of “landowner” under Code section 479B.20 to 18 include a farm tenant. 19 The bill expands damages that constitute compensable 20 loss under Code section 479B.29 to include soil compaction, 21 damage to soil or water conservation structures, and damage 22 to irrigation or drainage systems, and adds “farm tenant” to 23 the definition of landowner. The bill expands the claims a 24 landowner can bring and receive compensation for to include any 25 identifiable compensable loss resulting from pipeline activity. 26 A landowner may file an action for relief in small claims or 27 district court against a pipeline company for a violation of 28 Code section 479B.29. 29 The bill modifies the definition of damages for purposes 30 of construction damages under Code section 479B.30 to include 31 compensable losses listed under Code section 479B.29. 32 The bill takes effect upon enactment. 33 The bill applies retroactively to all applications for a 34 permit to construct a pipeline pursuant to Code chapter 479B 35 -6- LSB 1404HV (1) 90 es/rn 6/ 7