H.F. 576 Section 1. Section 479B.2, Code 2023, is amended by adding 1 the following new subsections: 2 NEW SUBSECTION . 1A. “Carbon sequestration” means the 3 mechanical and artificial process by which gaseous carbon 4 dioxide is intentionally removed from the atmosphere or 5 an industrial source and stored or captured using advanced 6 technology. 7 NEW SUBSECTION . 4A. “Sequestered carbon dioxide” means 8 carbon dioxide that was processed through carbon sequestration 9 methods. 10 Sec. 2. Section 479B.4, subsection 1, Code 2023, is amended 11 to read as follows: 12 1. A pipeline company doing business in this state shall 13 file a verified petition with the board asking for a permit to 14 construct, maintain, and operate a new pipeline along, over, 15 or across the public or private highways, grounds, waters, 16 and streams of any kind in this state. Any pipeline company 17 now owning or operating a pipeline or underground storage 18 facility in this state shall be issued a permit by the board 19 upon supplying the information as provided for in section 20 479B.5, subsections 1 through 5 , and meeting the requirements 21 of section 479B.13 and this section . 22 Sec. 3. Section 479B.4, Code 2023, is amended by adding the 23 following new subsection: 24 NEW SUBSECTION . 7. Notwithstanding any other provision 25 of this chapter, an application for a permit to construct a 26 pipeline for the transportation of sequestered carbon dioxide 27 shall not be approved by the board. 28 Sec. 4. Section 479B.16, subsection 1, Code 2023, is amended 29 to read as follows: 30 1. A pipeline company granted a pipeline permit shall , 31 subject to subsection 4, be vested with the right of eminent 32 domain, to the extent necessary and as prescribed and approved 33 by the board, not exceeding seventy-five feet in width for 34 right-of-way and not exceeding one acre in any one location in 35 -1- LSB 1949YH (4) 90 es/rn 1/ 3

H.F. 576 addition to right-of-way for the location of pumps, pressure 1 apparatus, or other stations or equipment necessary to 2 the proper operation of its pipeline. The board may grant 3 additional eminent domain rights where the pipeline company 4 has presented sufficient evidence to adequately demonstrate 5 that a greater area is required for the proper construction, 6 operation, and maintenance of the pipeline or for the location 7 of pumps, pressure apparatus, or other stations or equipment 8 necessary to the proper operation of its pipeline. 9 Sec. 5. Section 479B.16, Code 2023, is amended by adding the 10 following new subsection: 11 NEW SUBSECTION . 4. The board shall not grant the right of 12 eminent domain to a pipeline company for the construction of 13 a carbon sequestration pipeline. A pipeline company having 14 acquired real property that was obtained for purposes relating 15 to carbon sequestration projects pursuant to section 479B.16 16 shall return the real property to the prior owner and pay 17 the prior owner an amount determined to be just compensation 18 for the value of any interference as a result of pipeline or 19 storage construction. A company having acquired real property 20 by easement or other written agreement for purposes relating 21 to carbon sequestration projects shall terminate the easement 22 or agreement and file an affidavit with the county recorder 23 unencumbering the easement. The company shall pay the prior 24 owner an amount determined to be just compensation for the 25 value of any interference as a result of pipeline or storage 26 construction. 27 Sec. 6. EFFECTIVE DATE. This Act, being deemed of immediate 28 importance, takes effect upon enactment. 29 Sec. 7. APPLICABILITY. This Act applies to applications 30 for a permit to construct a pipeline to transport sequestered 31 carbon dioxide submitted but not yet approved prior to the 32 effective date of this Act, and to applications for a permit to 33 construct a pipeline to transport sequestered carbon dioxide 34 submitted on or after the effective date of this Act. 35 -2- LSB 1949YH (4) 90 es/rn 2/ 3

H.F. 576 EXPLANATION 1 The inclusion of this explanation does not constitute agreement with 2 the explanation’s substance by the members of the general assembly. 3 This bill relates to the prohibition of specified carbon 4 sequestration projects. 5 The bill defines “carbon sequestration” and “sequestered 6 carbon dioxide”. “Carbon sequestration” means the process by 7 which gaseous carbon dioxide is removed from the atmosphere 8 or an industrial source and stored or captured using advanced 9 technology. The bill defines “sequestered carbon dioxide” to 10 mean carbon dioxide processed through carbon sequestration 11 methods. 12 The bill prohibits the Iowa utilities board from 13 granting a construction permit to a pipeline project for the 14 transportation of sequestered carbon dioxide. 15 The bill also prohibits the Iowa utilities board from 16 granting the right of eminent domain to a pipeline company for 17 the construction of a carbon sequestration pipeline. 18 The bill provides that where a pipeline company acquired 19 real property for the purpose of constructing a carbon 20 sequestration pipeline through the right of eminent domain or 21 through an easement, the pipeline company shall return the real 22 property to the prior owner and compensate the prior owner 23 for any interference with the property resulting from carbon 24 sequestration projects. Where a pipeline company secured an 25 easement, the company shall terminate the easement by filing an 26 affidavit with the county recorder’s office. 27 The bill takes effect upon enactment. The bill applies to 28 applications for a permit to construct a pipeline to transport 29 sequestered carbon dioxide submitted but not yet approved prior 30 to the effective date of the bill, and to applications for a 31 permit to construct a pipeline to transport sequestered carbon 32 dioxide submitted on or after the effective date of the bill. 33 -3- LSB 1949YH (4) 90 es/rn 3/ 3