HF 565 (LSB 1404HV (1) 90)

HOUSE FILE 565

BY  COMMITTEE ON JUDICIARY

(SUCCESSOR TO HF 368)

A BILL FOR

An Act relating to specified utility construction project requirements, and including effective date and applicability provisions.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:

    Section 1.  Section 479A.11, Code 2023, is amended to read as follows:
   479A.11  Damages.
   1.  A pipeline company operating pipelines or underground storage shall be given reasonable access to the pipelines and storage areas for the purpose of constructing, operating, maintaining, or locating their pipes, pumps, pressure apparatus, or other stations, wells, devices, or equipment used in or upon a pipeline or storage area, but shall pay the owner of the lands for the right of entry and the owner of crops on the land all damages caused by entering, using, or occupying the lands for these purposes; and shall pay to the owner of the lands, after the completion of construction of the pipeline or storage, all damages caused by settling of the soil along and above the pipeline, and wash or erosion of the soil along the pipeline due to the construction of the pipeline. However, this section does not prevent the execution of an agreement with other terms between the pipeline company and the owner of the land or crops with reference to their use.
   2.  A claim for crop yield loss damages pursuant to this section shall not be precluded from renegotiation under section 6B.52 on the grounds that the damages were apparent at the time of settlement.
    Sec. 2.  Section 479B.4, Code 2023, is amended by adding the following new subsection:
   NEW SUBSECTION.  7.  The board shall not issue a permit, or conduct a contested case proceeding relating to the issuance of a permit, for a liquefied carbon dioxide pipeline until the federal pipeline and hazardous materials safety administration provides new rules updating the safety standards for liquefied carbon dioxide pipelines, including requirements related to emergency preparedness and response.
    Sec. 3.  Section 479B.9, Code 2023, is amended to read as follows:
   479B.9  Final order —— condition.
   The board may grant a permit in whole or in part upon terms, conditions, and restrictions as to location and route as it determines to be just and proper. A permit shall not be granted to a pipeline company unless the board determines that the proposed services will promote the public convenience and necessity.  The board shall not grant a permit to construct a liquefied carbon dioxide pipeline unless such a permit is expressly conditioned upon the pipeline company obtaining all other applicable permits, including federal and state regulatory permits, state and local highway and road crossing permits, and local zoning permits.
    Sec. 4.  Section 479B.16, subsection 1, Code 2023, is amended to read as follows:
   1.  A pipeline company granted a pipeline permit shall, subject to subsections 4 and 5, be vested with the right of eminent domain, to the extent necessary and as prescribed and approved by the board, not exceeding seventy-five feet in width for right-of-way and not exceeding one acre in any one location in addition to right-of-way for the location of pumps, pressure apparatus, or other stations or equipment necessary to the proper operation of its pipeline. The board may grant additional eminent domain rights where the pipeline company has presented sufficient evidence to adequately demonstrate that a greater area is required for the proper construction, operation, and maintenance of the pipeline or for the location of pumps, pressure apparatus, or other stations or equipment necessary to the proper operation of its pipeline.
    Sec. 5.  Section 479B.16, Code 2023, is amended by adding the following new subsections:
   NEW SUBSECTION.  4.  The board shall not grant a liquefied carbon dioxide pipeline company the right of eminent domain under this chapter for an interstate hazardous liquid pipeline project unless the company acquires at least ninety percent of the affected route miles through voluntary easements or through preexisting easements. The company shall submit regular reports on its progress in acquiring voluntary easements as determined by the board.
   NEW SUBSECTION.  5.  The board shall not grant a liquefied carbon dioxide pipeline company the right of eminent domain under this chapter for an interstate hazardous liquid pipeline project unless the company first acquires all applicable pipeline construction and zoning permits from the other states the project will be constructed in.
    Sec. 6.  Section 479B.20, subsection 5, Code 2023, is amended to read as follows:
   5.  If the pipeline company or its contractor does not comply with the requirements of this section, with the land restoration plan or line location, or with an independent agreement on land restoration executed in accordance with subsection 10, the county board of supervisors may petition the board for an order requiring corrective action to be taken. In addition, the county board of supervisors or a landowner may file a complaint with the board seeking imposition of civil penalties under section 479B.21.  A landowner may supply a copy of the complaint to the county board of supervisors where the complaint originated.
    Sec. 7.  Section 479B.20, Code 2023, is amended by adding the following new subsection:
   NEW SUBSECTION.  13.  For the purposes of this section, “landowner” also includes a farm tenant.
    Sec. 8.  Section 479B.29, Code 2023, is amended to read as follows:
   479B.29  Particular damage claims.
   1.  Compensable losses shall include, but are not limited to, all of the following:
   a.  Loss or reduced yield of crops or forage on the pipeline right-of-way, whether caused directly by construction or from disturbance of usual farm operations.
   b.  Loss or reduced yield of crops or yield from land near the pipeline right-of-way resulting from lack of timely access to the land or other disturbance of usual farm operations, including interference with irrigation or drainage.
   c.  Fertilizer, lime, or organic material applied by the landowner to restore land disturbed by construction to full productivity.
   d.  Loss of or damage to trees of commercial or other value that occurs at the time of construction, restoration, or at the time of any subsequent work by the pipeline company.
   e.  The cost of or losses in moving or relocating livestock, and the loss of gain by or the death or injury of livestock caused by the interruption or relocation of normal feeding.
   f.  Erosion and soil compaction on lands attributable to pipeline construction.
   g.  Damage to farm equipment caused by striking a pipeline, debris, or other material reasonably associated with pipeline construction while engaged in normal farming operations as defined in section 480.1.
   h.  Damage to soil or water conservation structures caused by construction, restoration, or subsequent work by the pipeline company including but not limited to terraces, grassed waterways, water and sediment control basins, ponds, saturated buffers, and biofilters.
   i.  Damage to irrigation or drainage systems caused by construction, restoration, or subsequent work by the pipeline company.
   2.  A claim for damage for future crop deficiency within the easement strip damages incurred under this section shall not be precluded from renegotiation under section 6B.52 on the grounds that it was apparent at the time of settlement unless the settlement expressly releases the pipeline company from claims for damage to the productivity of the soil. The landowner shall notify the pipeline company in writing fourteen days prior to harvest in each year to assess crop deficiency.
   3.  For the purposes of this section, “landowner” also includes a farm tenant.
   4.  A landowner that incurred damage under this section is eligible for compensation for damages. A landowner may file an action for relief against a pipeline company in small claims or district court for a violation of this section or pursue remedies under section 479B.30, subsection 7.
    Sec. 9.  Section 479B.30, subsection 7, Code 2023, is amended to read as follows:
   7.  As used in this section, “damages” means compensation for damages to the land, crops, and other personal property caused by the construction of a pipeline and its attendant structures or underground storage facility, or a compensable loss as defined in section 479B.29, subsection 1, but does not include compensation for a property interest, and “landowner” includes a farm tenant.
    Sec. 10.  EFFECTIVE DATE.  This Act, being deemed of immediate importance, takes effect upon enactment.
    Sec. 11.  APPLICABILITY.  This Act applies to all applications for a permit to construct a pipeline pursuant to chapter 479B filed with the Iowa utilities board on or after July 1, 2021, and to permits issued on or after the effective date of this Act.
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 easement requirements for utilities and landowner rights regarding pipeline construction.
   The bill provides that the Iowa utilities board (board) shall not issue a permit for a liquefied carbon dioxide pipeline until the federal pipeline and hazardous materials safety administration provides new rules updating the safety standards for liquefied carbon dioxide pipelines. The bill also provides that the board shall not grant a permit to construct a liquefied carbon dioxide pipeline unless the permit is conditioned upon the pipeline company obtaining all other applicable permits, including federal and state regulatory permits, state and local highway and road crossing permits, and local zoning permits.
   The bill requires a liquefied carbon dioxide pipeline company seeking to use eminent domain to first acquire at least 90 percent of the affected route miles through voluntary easements or through preexisting easements. The bill prohibits the board from granting a liquefied carbon dioxide pipeline company the right of eminent domain for an interstate hazardous liquid pipeline project unless the company first acquires all applicable pipeline construction and zoning permits from the other states the project will be constructed in. The company shall submit regular progress reports regarding easement acquisition as determined by the board within the utilities division of the department of commerce.
   The bill allows a landowner to file a complaint with the board and to notify the relevant county board of supervisors of a violation of land restoration standards. The bill expands the meaning of “landowner” under Code section 479B.20 to include a farm tenant.
   The bill expands damages that constitute compensable loss under Code section 479B.29 to include soil compaction, damage to soil or water conservation structures, and damage to irrigation or drainage systems, and adds “farm tenant” to the definition of landowner. The bill expands the claims a landowner can bring and receive compensation for to include any identifiable compensable loss resulting from pipeline activity. A landowner may file an action for relief in small claims or district court against a pipeline company for a violation of Code section 479B.29.
   The bill modifies the definition of damages for purposes of construction damages under Code section 479B.30 to include compensable losses listed under Code section 479B.29. 
   The bill takes effect upon enactment.
   The bill applies retroactively to all applications for a permit to construct a pipeline pursuant to Code chapter 479B filed with the board on or after July 1, 2021. The bill applies to permits issued by the board on or after the effective date of the bill.