HF 684 (LSB 2208YH (3) 90)

HOUSE FILE 684

BY  ISENHART

A BILL FOR

An Act relating to carbon dioxide sequestration, making an appropriation, and including effective date provisions.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:

    Section 1.  Section 479B.9, Code 2023, is amended to read as follows:
   479B.9  Final order —— condition.
   The board may grant a permit, subject to section 479B.34, 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.
    Sec. 2.  NEW SECTION.  479B.34  Contested case proceeding.
   A pipeline company shall be required to prove to the board in a contested case proceeding subject to chapter 17A that there is no less costly, less burdensome, or more efficient alternative to sequester carbon dioxide than the pipeline company’s application for a permit.
    Sec. 3.  IOWA GEOLOGICAL SURVEY.  There is appropriated from the federal Coronavirus State and Local Fiscal Recovery Funds, 31 C.F.R. §35, to the Iowa geological survey created in section 456.1 for the fiscal year beginning July 1, 2023, and ending June 30, 2024, the following amount, or so much thereof as is necessary, to be used for the purposes designated:
   For the assessment of the geological capacity and feasibility of sequestering industrial carbon emissions in the state:
   ...................................................................... $ 12,500,000

   The Iowa geological survey shall submit quarterly reports to the department of natural resources, the department of economic development, and members of the general assembly, regarding carbon dioxide sequestration and shall submit a final report by June 30, 2024.
   Notwithstanding section 8.33, moneys appropriated in this section that remain unencumbered or unobligated at the close of the fiscal year shall not revert but shall remain available for expenditure for the purposes designated until the close of the succeeding fiscal year.
    Sec. 4.  ECONOMIC DEVELOPMENT AUTHORITY.  There is appropriated from the federal Coronavirus State and Local Fiscal Recovery Funds, 31 C.F.R. §35, to the Iowa economic development authority for the fiscal year beginning July 1, 2023, and ending June 30, 2024, the following amount, or so much thereof as is necessary, to be used for the purposes designated:
   For the support of the office of the governor’s carbon sequestration task force upon a positive feasibility report from the Iowa geological survey, to prepare for and facilitate the capture and sequestration of carbon dioxide in the state by industrial carbon emitters subject to regulation by the department of natural resources in consultation and coordination with stakeholders:
   ...................................................................... $    250,000

   Notwithstanding section 8.33, moneys appropriated in this section that remain unencumbered or unobligated at the close of the fiscal year shall not revert but shall remain available for expenditure for the purposes designated until the close of the succeeding fiscal year.
    Sec. 5.  EFFECTIVE DATE.  This Act, being deemed of immediate importance, takes effect upon enactment.
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 carbon dioxide sequestration.
   The bill requires a pipeline company to prove that there is no less costly, less burdensome, or more efficient alternative to sequester carbon dioxide than the pipeline company’s application for a permit in a contested case proceeding pursuant to Code chapter 17A.
   The bill makes an appropriation to the Iowa geological survey to assess the geological capacity and feasibility of sequestering industrial carbon emissions in the state. The bill requires the Iowa geological survey to submit quarterly reports to specified departments and entities, and submit a final report on June 30, 2024.
   The bill makes an appropriation to the economic development authority for the support of the office of the governor’s carbon sequestration task force, which shall consult and coordinate with stakeholders.
   The bill takes effect upon enactment.