Senate File 136 - Introduced SENATE FILE 136 BY SALMON , CAMPBELL , TAYLOR , ROWLEY , ALONS , LOFGREN , GREEN , EVANS , WESTRICH , and SHIPLEY A BILL FOR An Act relating to hazardous liquid pipelines, including the 1 establishment of setbacks and safety regulations, specified 2 utility construction project requirements, pipeline project 3 investor disclosures, voluntary easement negotiation 4 requirements, and provisions for land surveys in connection 5 with hazardous liquid pipeline construction projects, and 6 including effective date and applicability provisions. 7 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 8 TLSB 1589XS (5) 91 sb/js

S.F. 136 DIVISION I 1 COUNTY SETBACK AND SAFETY REGULATION 2 Section 1. Section 331.301, Code 2025, is amended by adding 3 the following new subsection: 4 NEW SUBSECTION . 27. A county may adopt and enforce setback 5 and safety requirements for hazardous liquid pipeline projects 6 that exceed state and federal laws and regulations. 7 DIVISION II 8 PIPELINE PROJECTS 9 Sec. 2. Section 479.25, Code 2025, is amended to read as 10 follows: 11 479.25 Damages. 12 1. A pipeline company operating a pipeline or a gas 13 storage area shall have reasonable access to the pipeline or 14 gas storage area for the purpose of constructing, operating, 15 maintaining, or locating pipes, pumps, pressure apparatus or 16 other stations, wells, devices, or equipment used in or upon 17 the pipeline or gas storage area; shall pay the owner of the 18 land for the right of entry and the owner of crops for all 19 damages caused by entering, using, or occupying the land; and 20 shall pay to the owner all damages caused by the completion 21 of construction of the pipeline due to wash or erosion of the 22 soil at or along the location of the pipeline and due to the 23 settling of the soil along and above the pipeline. However, 24 this section shall not prevent the execution of an agreement 25 between the pipeline company and the owner of land or crops 26 with reference to the use of the land. 27 2. A claim for crop yield loss damages pursuant to this 28 section shall not be precluded from renegotiation under section 29 6B.52 on the grounds that the damages were apparent at the time 30 of settlement or on the grounds that more than five years have 31 elapsed since the date of the settlement. 32 Sec. 3. Section 479A.11, Code 2025, is amended to read as 33 follows: 34 479A.11 Damages. 35 -1- LSB 1589XS (5) 91 sb/js 1/ 10

S.F. 136 1. A pipeline company operating pipelines or underground 1 storage shall be given reasonable access to the pipelines and 2 storage areas for the purpose of constructing, operating, 3 maintaining, or locating their its pipes, pumps, pressure 4 apparatus, or other stations, wells, devices, or equipment used 5 in or upon a pipeline or storage area, but shall pay the owner 6 of the lands for the right of entry and the owner of crops on 7 the land all damages caused by entering, using, or occupying 8 the lands for these purposes; and shall pay to the owner of the 9 lands, after the completion of construction of the pipeline or 10 storage, all damages caused by settling of the soil along and 11 above the pipeline, and wash or erosion of the soil along the 12 pipeline due to the construction of the pipeline. However, 13 this section does not prevent the execution of an agreement 14 with other terms between the pipeline company and the owner of 15 the land or crops with reference to their use. 16 2. A claim for crop yield loss damages pursuant to this 17 section shall not be precluded from renegotiation under section 18 6B.52 on the grounds that the damages were apparent at the time 19 of settlement or on the grounds that more than five years have 20 elapsed since the date of the settlement. 21 Sec. 4. Section 479B.4, subsection 1, Code 2025, is amended 22 to read as follows: 23 1. A pipeline company doing business in this state shall 24 file a verified petition with the commission asking for a 25 permit to construct, maintain, and operate a new pipeline 26 along, over, or across the public or private highways, grounds, 27 waters, and streams of any kind in this state. Any pipeline 28 company now owning or operating a pipeline or underground 29 storage facility in this state shall be issued a permit by the 30 commission upon supplying the information as provided for in 31 section 479B.5, subsections 1 through 5 , and section 479B.34, 32 and meeting the requirements of section 479B.13 . 33 Sec. 5. Section 479B.4, Code 2025, is amended by adding the 34 following new subsections: 35 -2- LSB 1589XS (5) 91 sb/js 2/ 10

S.F. 136 NEW SUBSECTION . 7. The commission shall not issue a permit, 1 or conduct a contested case proceeding relating to the issuance 2 of a permit, for a liquefied carbon dioxide pipeline unless, 3 after January 1, 2025, the federal pipeline and hazardous 4 materials safety administration has provided new rules updating 5 the safety standards for liquefied carbon dioxide pipelines, 6 including requirements related to emergency preparedness and 7 response. 8 NEW SUBSECTION . 8. A pipeline company must release the 9 results of all plume modeling studies that the company has 10 conducted upon applying for a permit that vests the power of 11 eminent domain pursuant to this chapter. 12 Sec. 6. Section 479B.9, Code 2025, is amended to read as 13 follows: 14 479B.9 Final order —— condition. 15 The commission may grant a permit in whole or in part upon 16 terms, conditions, and restrictions as to location and route 17 as it determines to be just and proper. A permit shall not be 18 granted to a pipeline company unless the commission determines 19 that the proposed services will promote the public convenience 20 and necessity. The commission shall not grant a permit to 21 construct a liquefied carbon dioxide pipeline unless such a 22 permit is expressly conditioned upon the pipeline company 23 burying the pipeline with at least eight feet of cover to allow 24 for future drainage and obtaining all other applicable permits, 25 including federal and state regulatory permits, state and local 26 highway and road crossing permits, and local zoning permits. 27 Sec. 7. Section 479B.16, subsection 1, Code 2025, is amended 28 to read as follows: 29 1. A pipeline company granted a pipeline permit shall , 30 subject to subsection 4, be vested with the right of eminent 31 domain, to the extent necessary and as prescribed and approved 32 by the commission, not exceeding seventy-five feet in width for 33 right-of-way and not exceeding one acre in any one location in 34 addition to right-of-way for the location of pumps, pressure 35 -3- LSB 1589XS (5) 91 sb/js 3/ 10

S.F. 136 apparatus, or other stations or equipment necessary to the 1 proper operation of its pipeline. The commission may grant 2 additional eminent domain rights where the pipeline company 3 has presented sufficient evidence to adequately demonstrate 4 that a greater area is required for the proper construction, 5 operation, and maintenance of the pipeline or for the location 6 of pumps, pressure apparatus, or other stations or equipment 7 necessary to the proper operation of its pipeline. A pipeline 8 company seeking rights under this section is subject to 9 requirements of section 479B.35. 10 Sec. 8. Section 479B.16, Code 2025, is amended by adding the 11 following new subsections: 12 NEW SUBSECTION . 4. The commission shall not grant a 13 liquefied carbon dioxide pipeline company the right of eminent 14 domain under this chapter for an interstate hazardous liquid 15 pipeline project unless the company acquires at least ninety 16 percent of the affected parcels and ninety percent of the 17 pipeline project’s total distance through voluntary easements 18 or through preexisting easements. The company shall submit 19 regular reports on its progress in acquiring voluntary 20 easements as determined by the commission. 21 NEW SUBSECTION . 5. The commission shall not grant a 22 liquefied carbon dioxide pipeline company the right of eminent 23 domain under this chapter for an interstate hazardous liquid 24 pipeline project unless the company first acquires all 25 applicable pipeline construction and zoning permits from the 26 other states the project will be constructed in. 27 Sec. 9. Section 479B.20, subsection 5, Code 2025, is amended 28 to read as follows: 29 5. If the pipeline company or its contractor does not 30 comply with the requirements of this section , with the land 31 restoration plan or line location, or with an independent 32 agreement on land restoration executed in accordance with 33 subsection 10 , the county board of supervisors or a landowner 34 may petition the commission for an order requiring corrective 35 -4- LSB 1589XS (5) 91 sb/js 4/ 10

S.F. 136 action to be taken. In addition, the county board of 1 supervisors or a landowner may file a complaint with the 2 commission seeking imposition of civil penalties under section 3 479B.21 . A landowner may supply a copy of the complaint to the 4 county board of supervisors where the complaint originated. 5 Sec. 10. Section 479B.20, Code 2025, is amended by adding 6 the following new subsection: 7 NEW SUBSECTION . 13. For the purposes of this section, 8 “landowner” also includes a farm tenant. 9 Sec. 11. Section 479B.29, Code 2025, is amended to read as 10 follows: 11 479B.29 Particular damage claims. 12 1. Compensable losses shall include , but are not limited to , 13 all of the following: 14 a. Loss or reduced yield of crops or forage on the pipeline 15 right-of-way, whether caused directly by construction or from 16 disturbance of usual farm operations. 17 b. Loss or reduced yield of crops or yield from land near 18 the pipeline right-of-way resulting from lack of timely access 19 to the land or other disturbance of usual farm operations, 20 including interference with irrigation or drainage . 21 c. Fertilizer, lime, or organic material applied by the 22 landowner to restore land disturbed by construction to full 23 productivity. 24 d. Loss of or damage to trees of commercial or other value 25 that occurs at the time of construction, restoration, or at the 26 time of any subsequent work by the pipeline company. 27 e. The cost of or losses in moving or relocating livestock, 28 and the loss of gain by or the death or injury of livestock 29 caused by the interruption or relocation of normal feeding. 30 f. Erosion and soil compaction on lands attributable to 31 pipeline construction. 32 g. Damage to farm equipment caused by striking a pipeline, 33 debris, or other material reasonably associated with pipeline 34 construction while engaged in normal farming operations as 35 -5- LSB 1589XS (5) 91 sb/js 5/ 10

S.F. 136 defined in section 480.1 . 1 h. Damage to soil or water conservation structures caused 2 by construction, restoration, or subsequent work by the 3 pipeline company including but not limited to terraces, grassed 4 waterways, water and sediment control basins, ponds, saturated 5 buffers, and biofilters. 6 i. Damage to irrigation or drainage systems caused by 7 construction, restoration, or subsequent work by the pipeline 8 company. 9 2. A claim for damage for future crop deficiency within 10 the easement strip damages incurred under this section shall 11 not be precluded from renegotiation under section 6B.52 on the 12 grounds that it was apparent at the time of settlement unless 13 the settlement expressly releases the pipeline company from 14 claims for damage to the productivity of the soil or on the 15 grounds that more than five years have elapsed since the date 16 of the settlement . The landowner shall notify the pipeline 17 company in writing fourteen days prior to harvest in each year 18 to assess crop deficiency. 19 3. A landowner that incurred damage under this section is 20 eligible for compensation for damages. A landowner may file an 21 action for relief against a pipeline company in small claims 22 or district court for a violation of this section or pursue 23 remedies under section 479B.30, subsection 7. 24 4. For the purposes of this section, “landowner” also 25 includes a farm tenant. 26 Sec. 12. Section 479B.30, subsection 7, Code 2025, is 27 amended to read as follows: 28 7. As used in this section , “damages” : 29 a. “Damages” means compensation for damages to the land, 30 crops, and other personal property caused by the construction 31 of a pipeline and its attendant structures or underground 32 storage facility but does not include compensation for a 33 property interest , and “landowner” . 34 b. “Landowner” includes a farm tenant. 35 -6- LSB 1589XS (5) 91 sb/js 6/ 10

S.F. 136 Sec. 13. NEW SECTION . 479B.34 Seeking the right of eminent 1 domain —— investor disclosures. 2 A pipeline company seeking the right of eminent domain for a 3 pipeline project shall include in its permit application all 4 of the following: 5 1. The names of all planned pipeline project investors. 6 2. The home addresses of all planned pipeline project 7 investors. 8 3. Each investor’s range of planned monetary investment as 9 follows: 10 a. At least one dollar, but less than ten thousand dollars. 11 b. At least ten thousand dollars, but less than fifty 12 thousand dollars. 13 c. At least fifty thousand dollars, but less than one 14 hundred thousand dollars. 15 d. At least one hundred thousand dollars, but less than five 16 hundred thousand dollars. 17 e. At least five hundred thousand dollars, but less than one 18 million dollars. 19 f. At least one million dollars. 20 Sec. 14. NEW SECTION . 479B.35 Voluntary easement 21 negotiation requirements. 22 1. A pipeline company intending to apply for a permit under 23 section 479B.4 and seeking a voluntary easement agreement from 24 a landowner shall not engage in easement negotiation unless 25 prior signed, witnessed, and notarized written permission is 26 granted from each affected landowner. 27 2. If consent pursuant to subsection 1 is granted, 28 contact between the company or its land agents and affected 29 landowners shall not exceed two written, verbal, or electronic 30 communications per month unless signed, witnessed, and 31 notarized written permission to exceed two communications from 32 each affected landowner is granted. 33 3. A violation of this section shall be reported to the 34 commission. The commission shall set a public hearing for each 35 -7- LSB 1589XS (5) 91 sb/js 7/ 10

S.F. 136 violation or set of violations alleged by affected landowners. 1 4. Upon a finding of a violation of this section, the 2 commission shall order a one thousand dollar fine per 3 violation. The fine shall be remitted to the affected 4 landowner. 5 5. An affected landowner shall have a cause of action 6 against a pipeline company in violation of this section. 7 Sec. 15. REPEAL. Section 479B.15, Code 2025, is repealed. 8 Sec. 16. EFFECTIVE DATE. This division of this Act, being 9 deemed of immediate importance, takes effect upon enactment. 10 Sec. 17. APPLICABILITY. This division of this Act applies 11 to all applications for a permit to construct a pipeline 12 pursuant to chapter 479B filed with the Iowa utilities 13 commission on or after July 1, 2021, and to permits issued on 14 or after the effective date of this division of this Act. 15 EXPLANATION 16 The inclusion of this explanation does not constitute agreement with 17 the explanation’s substance by the members of the general assembly. 18 This bill relates to hazardous liquid pipelines, including 19 the establishment of setbacks and safety regulations, easement 20 requirements for utilities and landowner rights regarding 21 pipeline construction, voluntary easement negotiation 22 requirements, surveys in connection with hazardous liquid 23 pipeline projects, pipeline project investor disclosures, and 24 provisions relating to entry of land. 25 Division I of the bill allows counties to adopt setback and 26 safety requirements for hazardous liquid pipeline projects that 27 exceed the protections afforded in state and federal laws. 28 Division II of the bill provides that the Iowa utilities 29 commission (commission) shall not issue a permit for a 30 liquefied carbon dioxide pipeline until the federal pipeline 31 and hazardous materials safety administration provides new 32 rules updating the safety standards for liquefied carbon 33 dioxide pipelines. The bill also provides that the commission 34 shall not grant a permit to construct a liquefied carbon 35 -8- LSB 1589XS (5) 91 sb/js 8/ 10

S.F. 136 dioxide pipeline unless the permit is conditioned upon the 1 pipeline company (company) burying the pipeline with at least 2 eight feet of cover to allow for future drainage and obtaining 3 all other applicable permits, including federal and state 4 regulatory permits, state and local highway and road crossing 5 permits, and local zoning permits. The company must release 6 the results of any plume modeling studies upon applying for a 7 permit that vests the company with the power of eminent domain. 8 The bill requires a company seeking to use eminent domain 9 to first acquire at least 90 percent of the affected parcels 10 and 90 percent of the pipeline project’s total distance through 11 voluntary easements or through preexisting easements. The bill 12 prohibits the commission from granting a company the right of 13 eminent domain for an interstate hazardous liquid pipeline 14 project unless the company first acquires all applicable 15 pipeline construction and zoning permits from the other states 16 the project will be constructed in. 17 The bill allows a landowner to file a complaint with 18 the commission and to notify the relevant county board of 19 supervisors of a violation of land restoration standards. The 20 bill expands the meaning of “landowner” under Code section 21 479B.20 to include a farm tenant. 22 The bill expands damages that constitute compensable 23 loss under Code section 479B.29 to include soil compaction, 24 damage to soil or water conservation structures, and damage 25 to irrigation or drainage systems, and adds “farm tenant” to 26 the definition of “landowner”. The bill expands the claims a 27 landowner can bring and receive compensation for to include any 28 identifiable compensable loss resulting from pipeline activity. 29 A landowner may file an action for relief in small claims 30 or district court against a company for a violation of Code 31 section 479B.29. 32 The bill modifies the definition of damages for purposes 33 of construction damages under Code section 479B.30 to include 34 compensable losses listed under Code section 479B.29. 35 -9- LSB 1589XS (5) 91 sb/js 9/ 10

S.F. 136 The bill requires a company applying for a permit and 1 negotiating a voluntary easement to first acquire signed, 2 witnessed, and notarized written permission from an affected 3 landowner. Upon consent being granted, a company or company’s 4 agents shall not exceed two communications per month with a 5 landowner unless the landowner waives the restriction through 6 written permission. Violations of the bill shall be reported 7 to the commission, which shall set a public hearing. If the 8 commission finds a violation has occurred, the commission shall 9 fine the company $1,000 per violation and collect and deliver 10 the amount to the affected landowner. 11 The bill provides an affected landowner a cause of action 12 against a company in violation of the provisions of the bill. 13 The bill provides that a company seeking eminent domain 14 rights shall include investor information in the application 15 for a permit submitted to the commission. The permit 16 application shall include the names and home addresses of all 17 planned pipeline investors and the range of planned investment 18 per investor as indicated in the bill. 19 The bill removes a provision allowing a company to enter upon 20 private land for the purpose of surveying and examining the 21 land by giving 10 days’ written notice to a landowner. 22 Division II of the bill takes effect upon enactment. 23 Division II of the bill applies retroactively to all 24 applications for a permit to construct a pipeline pursuant 25 to Code chapter 479B filed with the commission on or after 26 July 1, 2021. Division II of the bill also applies to permits 27 issued by the commission on or after the effective date of the 28 division. 29 -10- LSB 1589XS (5) 91 sb/js 10/ 10