S.F. 2067 Section 1. NEW SECTION . 479B.1A Legislative intent. 1 It is the goal of the general assembly that the right of 2 eminent domain will not be granted for a hazardous liquid 3 pipeline except when every other reasonably available 4 alternative has been diligently exhausted. Further goals of 5 the general assembly are to promote the production of energy, 6 derived from crops grown and resources gathered within the 7 state of Iowa, and elsewhere within the United States, to 8 ensure long-term, economically competitive and diverse sources 9 of energy for Iowans, for citizens of the United States, 10 and for our customers abroad; to support agriculture in the 11 state of Iowa, and the employment of Iowans in agricultural 12 work and in affiliated industries; to encourage investment 13 in Iowa agriculture, and in the facilities needed to process 14 our produce and to deliver useful products to consumers; to 15 provide reasonable conditions for the planning and construction 16 of linear infrastructure projects that will serve the public 17 convenience and necessity; and to vindicate and safeguard the 18 property rights of all Iowans, including those who prefer not 19 to accommodate the construction of a pipeline on their land, 20 as well as those who would choose to convey an easement for 21 valuable consideration in a voluntary transaction. 22 Sec. 2. Section 479B.2, Code 2026, is amended by adding the 23 following new subsection: 24 NEW SUBSECTION . 6. “Voluntary easement corridor” means land 25 within the county where an informational meeting is held or 26 within a distance of five miles on either side of a proposed 27 pipeline route. 28 Sec. 3. Section 479B.4, subsections 5 and 6, Code 2026, are 29 amended to read as follows: 30 5. a. The notice shall set forth include the following: 31 (1) The name of the applicant. 32 (2) The applicant’s principal place of business. 33 (3) The general description and purpose of the proposed 34 project. 35 -1- LSB 5117XS (15) 91 sb/js 1/ 12

S.F. 2067 (4) The general nature of the right-of-way desired. 1 (5) A map showing the route or location of the proposed 2 project. 3 (6) That A statement that the landowner has a right to 4 be present at the meeting and to file objections with the 5 commission. 6 (7) A designation of the time and place of the meeting. 7 (8) A copy of the template easement to be used for acquiring 8 land for the project. 9 (9) A description of the methodology to be used in 10 determining the value of the easement for initial offers. 11 (10) A statement of the policy for claiming damages. 12 b. The notice shall be served by certified mail with 13 return receipt requested not less than thirty days previous 14 to the time set for the meeting, and shall be published once 15 in a newspaper of general circulation in the county. The 16 publication shall be considered notice to landowners whose 17 residence is not known and to each person in possession of or 18 residing on the property provided a good faith effort to notify 19 can be demonstrated by the pipeline company. 20 6. A pipeline company seeking rights under this chapter 21 shall not negotiate or purchase an easement or other interest 22 in land in a county known to be affected by the proposed 23 project prior to the informational meeting. Nothing in this 24 subsection shall prohibit a company seeking rights under this 25 chapter from holding a meeting to provide general information 26 regarding a project to a community that does not include 27 negotiating specific terms with specific landowners prior to 28 the informational meeting required by this section. 29 Sec. 4. Section 479B.4, Code 2026, is amended by adding the 30 following new subsection: 31 NEW SUBSECTION . 7. Any person may file with the commission 32 comments regarding the terms of the template easement or 33 valuation methodology within fifteen days after it is filed 34 under subsection 5. The company may file responses to such 35 -2- LSB 5117XS (15) 91 sb/js 2/ 12

S.F. 2067 comments within thirty days after its filings pursuant to 1 subsection 5. The commission shall issue an order accepting, 2 rejecting, or requiring modification of the template easement 3 and valuation methodology no more than sixty days after 4 they are filed. This process shall not delay either the 5 informational meetings or the company’s ability to negotiate 6 with landowners, but no easement shall be finalized before the 7 template easement is approved. 8 Sec. 5. Section 479B.16, Code 2026, is amended by adding the 9 following new subsections: 10 NEW SUBSECTION . 4. a. Following the public informational 11 meeting held pursuant to section 479B.4 and proper publication 12 of notice required by section 479B.4, subsection 5, paragraph 13 “b” , a pipeline company may communicate with owners of record 14 of any land within the voluntary easement corridor for the 15 purpose of proposing voluntary transactions for the conveyance 16 of easements for the project, without regard to whether such 17 landowner received prior notice by mail. The pipeline company 18 shall not be required to provide to such landowners prior 19 individual notice of the proposed project before initiating 20 communication. 21 b. Before entering into a voluntary agreement with a 22 landowner who did not receive notice of the informational 23 meeting by mail, the pipeline company shall provide such 24 landowner copies of the informational meeting materials 25 presented by the commission, the consumer advocate, and the 26 company seeking rights under this chapter. 27 c. In a pipeline company’s initial communication with a 28 landowner, the company shall provide a written description of 29 the opt-out procedure described in paragraph “d” . 30 d. A landowner may decline further communication with a 31 pipeline company concerning a possible transaction for easement 32 rights by providing verbal or written notice to the pipeline 33 company that states the landowner does not wish to discuss the 34 matter further, and by submitting to the commission notice 35 -3- LSB 5117XS (15) 91 sb/js 3/ 12

S.F. 2067 through mail or by electronic means stating the same. Upon 1 receipt of such notice from the landowner, the commission shall 2 forward a copy to the pipeline company. Such notice may be 3 given up to seven calendar days after the time a landowner is 4 provided with a written easement offer. 5 e. After receipt of notice by the landowner pursuant to 6 paragraph “d” , the pipeline company shall not initiate further 7 contact with the landowner for the purpose of an easement 8 transaction, except that the company may send one or more 9 letters by certified mail to the landowner making an offer or 10 soliciting further communication. A landowner may rescind such 11 refusal by contacting the pipeline company and notifying the 12 commission no later than seven calendar days after the notice 13 of refusal. Unless the landowner rescinds the refusal, the 14 landowner’s land shall be deemed unavailable for an easement 15 agreement. 16 NEW SUBSECTION . 5. a. This subsection shall apply only 17 to a hazardous liquid pipeline for which a pipeline company 18 requests authority to use eminent domain to acquire interests 19 in land. 20 b. For a hazardous liquid pipeline that is proposed to 21 exceed twenty miles in length within the state, the pipeline 22 company shall make a diligent effort to assemble a route 23 consisting exclusively of easements within the voluntary 24 easement corridor that are acquired through voluntary 25 conveyances. A pipeline company shall not be eligible to 26 request authority to use eminent domain except upon a showing 27 to the commission that it has made such diligent effort. 28 c. After initiating communication with a landowner 29 pursuant to subsection 4, a pipeline company shall provide a 30 landowner with a description of the proposed project and the 31 easement rights the company seeks to acquire, and shall request 32 permission to conduct a civil survey. If the permission for a 33 civil survey is granted, the pipeline company shall conduct the 34 civil survey within ninety business days. 35 -4- LSB 5117XS (15) 91 sb/js 4/ 12

S.F. 2067 d. If a civil survey conducted pursuant to paragraph “c” 1 finds the land is not suitable for purposes of the project, 2 the pipeline company shall promptly provide the landowner 3 with written notice of this finding and shall file with the 4 commission a copy of the notice. Otherwise, within ninety 5 business days of the completion of the civil survey, the 6 pipeline company may submit to the landowner a written offer 7 for purchase of the easement. The pipeline company shall, 8 before filing an application requesting eminent domain, submit 9 such an offer to the owners of land that might be used to 10 assemble a route not including the land for which eminent 11 domain is requested. The offer shall include customary terms 12 and conditions for the conveyance of easements, and shall also 13 include all of the following: 14 (1) A statement of the requirements applicable under the 15 laws of this state and rules adopted by the commission relating 16 to the construction, operation, and maintenance of a hazardous 17 liquid pipeline upon land subject to the proposed easement, 18 including land restoration, tile repair, and damages. 19 (2) A statement that the landowner and the pipeline company 20 may agree to different terms not contrary to Iowa law, but that 21 such provisions shall be set forth expressly in a contract for 22 conveyance of an easement. 23 (3) An offer of cash compensation for the easement, which 24 may differ in amount from the compensation offered to other 25 landowners for easements of similar dimensions on similar land. 26 e. The pipeline company shall seek to execute contracts 27 for the voluntary conveyance of easements within one year of 28 initial communication with the landowners within a particular 29 county. If, however, after no less than six months, the 30 company is unable to execute contracts for easements sufficient 31 to assemble a route for the pipeline, the company shall 32 file with the commission a notice setting forth all of the 33 following: 34 (1) The parcels for which the company has failed to reach 35 -5- LSB 5117XS (15) 91 sb/js 5/ 12

S.F. 2067 easement agreements and for which eminent domain is sought, or 1 that would, if an easement were granted, provide an alternative 2 to each eminent domain parcel, and the names of the owners of 3 those parcels. 4 (2) A list of the contacts made relating to each parcel 5 identified in subparagraph (1), including the date and method 6 of each contact, and a brief description of any issues causing 7 an impasse for that parcel. 8 (3) Either a request for an extension for further 9 negotiations or a statement that no agreement can be reached 10 for that parcel. 11 f. All data in the filing made under paragraph “e” shall 12 be held confidential and shall not be subject to disclosure in 13 response to a request under chapter 22. 14 g. For any easement that the pipeline company seeks to 15 acquire using eminent domain, the company shall file with the 16 commission all of the following: 17 (1) Evidence establishing that the company diligently 18 exhausted all alternatives to assemble a continuous route 19 for the project exclusively by means of voluntarily conveyed 20 easements, and that it was unable to do so for one or more of 21 the following reasons: 22 (a) Inability to obtain voluntary agreements for continuous 23 easements on adjoining parcels within a county where an 24 informational meeting was held, or outside that county but 25 within five miles of the center line of the proposed pipeline 26 route in that county, due to rejection by landowners of offers 27 based on a valuation methodology approved by the commission, or 28 due to the refusal of landowners to engage in communications 29 with the company pursuant to subsection 4, paragraph “d” . 30 (b) Technical or engineering infeasibility of construction 31 in a specific location due to terrain, other natural features, 32 or land conditions. 33 (c) Infeasibility of compliance with safety requirements 34 relating to construction, operation, or maintenance of a 35 -6- LSB 5117XS (15) 91 sb/js 6/ 12

S.F. 2067 pipeline, under applicable federal law or rules, in a specified 1 location, due to terrain, other natural features or land 2 conditions, presence of occupied or other man-made structures, 3 or if the commission finds on engineering evidence that 4 safety would otherwise be adversely impacted by a route using 5 only voluntary easements and such safety would be materially 6 improved by use of a route facilitated by eminent domain. 7 (d) Economic infeasibility of the pipeline due to excessive 8 easement acquisition costs for alternative routes to avoid the 9 use of eminent domain. For purposes of this subparagraph, 10 economic infeasibility shall be shown by clear and convincing 11 evidence. 12 (2) A statement setting forth why the company requires an 13 easement on the specific parcel for which the company seeks 14 eminent domain. 15 h. Deadlines established by subsection 4 and this subsection 16 shall be subject to extension by the commission upon a showing 17 of good cause. 18 Sec. 6. EFFECTIVE DATE. This Act, being deemed of immediate 19 importance, takes effect upon enactment. 20 Sec. 7. APPLICABILITY —— RETROACTIVE APPLICABILITY. 21 1. Except as provided in subsection 2, this Act applies to 22 the construction of any hazardous liquid pipeline for which a 23 petition is filed on or after the effective date of this Act. 24 2. a. Except as provided in paragraph “b”, this Act applies 25 retroactively to the construction of any hazardous liquid 26 pipeline designed for the transportation of liquefied carbon 27 dioxide for which a petition is filed under chapter 479B on or 28 after January 1, 2024. 29 b. The portion of the section of this Act enacting 30 section 479B.16, subsection 4, applies retroactively to the 31 construction of pipelines designed for the transportation of 32 liquefied carbon dioxide for which a petition was filed under 33 chapter 479B on or after January 1, 2022. 34 EXPLANATION 35 -7- LSB 5117XS (15) 91 sb/js 7/ 12

S.F. 2067 The inclusion of this explanation does not constitute agreement with 1 the explanation’s substance by the members of the general assembly. 2 This bill relates to easements for hazardous liquid 3 pipelines, including negotiation requirements, eminent domain 4 authorization, and contract execution. 5 The bill states as the goal of the general assembly that the 6 right of eminent domain will not be granted for a hazardous 7 liquid pipeline except when every other reasonably available 8 alternative has been diligently exhausted. Further stated 9 goals include promoting the production of energy, supporting 10 agriculture in the state of Iowa and the employment of 11 Iowans in agricultural work, encouraging investment in Iowa 12 agriculture, providing reasonable conditions for the planning 13 and construction of linear infrastructure projects, and 14 vindicating and safeguarding the property rights of all Iowans. 15 Under current law, a pipeline company seeking a permit 16 for a new hazardous liquid pipeline must give notice of 17 the informational meeting to each landowner affected by the 18 proposed project and each person in possession of or residing 19 on the property. The notice must contain certain information. 20 The bill provides that, in addition to the currently required 21 information, a copy of the template easement to be used 22 for acquiring land for the project, a description of the 23 methodology to be used in determining the value of the easement 24 for initial offers, and a statement of the policy for claiming 25 damages must be included in the notice. 26 The bill allows any person to file comments with the 27 commission regarding the template easement or valuation 28 methodology within 15 days of the filing, and allows the 29 pipeline company to respond to the comments within 30 days of 30 the company’s filing. 31 The bill requires the commission to issue an order 32 accepting, rejecting, or requiring modification of the template 33 easement or valuation methodology within 60 days of the 34 filing. The bill provides that the process of evaluating the 35 -8- LSB 5117XS (15) 91 sb/js 8/ 12

S.F. 2067 template easement and valuation methodology must not delay the 1 informational meeting or the company’s ability to negotiate 2 with landowners, but stipulates that no easement can be 3 finalized until the template easement is approved. 4 The bill allows a pipeline company to communicate for 5 easement negotiations with landowners within the county where 6 an informational meeting is held or within a five-mile corridor 7 of a proposed pipeline following a public information meeting 8 regardless of whether the landowner received prior notice by 9 mail. The bill states individual notice to landowners prior to 10 initiating communication is not required by a pipeline company. 11 The bill requires the pipeline company to provide landowners 12 who did not receive notice of the informational meeting by mail 13 copies of the informational meeting materials presented by the 14 commission, the consumer advocate, and the company. 15 The bill requires a pipeline company to provide a written 16 description of the opt-out procedure during the initial 17 communication between the company and the landowner. The 18 bill requires the pipeline company to provide landowners 19 who did not receive notice of the informational meeting by 20 mail copies of the informational meeting materials presented 21 by the commission, the consumer advocate, and the company. 22 The opt-out procedure allows a landowner to decline further 23 communication with the company. To initiate this opt-out 24 procedure, the landowner must inform the pipeline company 25 through verbal or written notice and send the Iowa utilities 26 commission (commission) a communication through mail or by 27 electronic means indicating the landowner’s intent to opt 28 out. The bill requires the notice to be sent within seven 29 days from the time the landowner is provided with a written 30 easement offer. The bill directs the commission to forward 31 the communication from the landowner to the company. Once the 32 pipeline company has received notice by the landowner of the 33 landowner’s intent to opt out, the bill prohibits the pipeline 34 company from initiating any further contact with the landowner 35 -9- LSB 5117XS (15) 91 sb/js 9/ 12

S.F. 2067 for the purpose of an easement transaction, except that the 1 company may send one or more letters by certified mail to the 2 landowner making an offer or soliciting further communication. 3 The opt out may be rescinded by the landowner by notifying 4 the pipeline company and the commission and must be received 5 within seven calendar days after the notice of refusal. The 6 bill provides that unless the landowner rescinds the refusal, 7 the landowner’s land is deemed unavailable for an easement 8 agreement. 9 The bill provides that certain requirements are only 10 applicable to a hazardous liquid pipeline for which a pipeline 11 company requests authority to use eminent domain to acquire 12 interests in land. 13 The bill requires a pipeline company proposing a hazardous 14 liquid pipeline exceeding 20 miles in length within the state 15 of Iowa to make a diligent effort to assemble a route made 16 exclusively of voluntary easements. A company will not be 17 eligible to request the authority of eminent domain unless a 18 diligent effort is shown to the commission. 19 The bill requires a pipeline company to provide to the 20 landowner a description of the proposed project and the 21 easement rights the company seeks to acquire, and request 22 permission to conduct a civil survey after initiating 23 communication with a landowner to acquire an easement. 24 If a civil survey is conducted and the land is found 25 unsuitable for the pipeline, the bill requires the company 26 to provide the landowner written notice of the finding and 27 file a copy of the notice with the commission. Otherwise, the 28 bill allows the company to submit to the landowner a written 29 offer for purchase of an easement within 90 business days after 30 completion of the civil survey. The bill directs that before 31 filing an application requesting eminent domain, the pipeline 32 company must submit such offer to the owner of the land that 33 might be used to assemble a route not including that land for 34 which eminent domain is requested. The bill requires any offer 35 -10- LSB 5117XS (15) 91 sb/js 10/ 12

S.F. 2067 to include customary terms and conditions of conveyance of 1 easements, along with a statement of relevant requirements 2 under state law and commission rules, a statement that the 3 landowner and the pipeline company may agree to different terms 4 that will be expressly stated in the contract, and an offer of 5 cash compensation, which may differ from those offered to other 6 landowners. 7 The bill requires a pipeline company to seek execution 8 of contracts for voluntary easements within one year of the 9 initial communication with the landowners within a particular 10 county. If after no less than six months the company has been 11 unable to execute sufficient easement contracts to assemble a 12 route, the bill directs the company to file with the commission 13 a notice that must include the parcels for which no agreement 14 was reached and for which eminent domain is sought, or that 15 would, if an easement were granted, provide an alternative to 16 each eminent domain parcel, the names of the owners of the 17 parcels, a list of contacts made relating to each previously 18 identified parcel that includes the date and method of each 19 contact and a brief description of the issues causing an 20 impasses for that parcel, and either a request for extension 21 to further negotiate or a statement that no agreement can be 22 reached for each parcel. The bill directs this data to be held 23 confidential and such data is not subject to disclosure in 24 response to a request under Code chapter 22. 25 For any easement the pipeline company seeks to acquire using 26 eminent domain, the bill requires the company to file with the 27 commission evidence establishing that the company diligently 28 exhausted all alternatives to assemble a continuous route for 29 the project exclusively through voluntarily conveyed easements 30 and a statement setting forth why the company requires an 31 easement on the specific parcel for which the company seeks 32 eminent domain. 33 The bill allows the commission to extend deadlines 34 established in the bill upon a showing of good cause. 35 -11- LSB 5117XS (15) 91 sb/js 11/ 12

S.F. 2067 The bill takes effect upon enactment. The bill applies 1 retroactively to the construction of any hazardous liquid 2 pipeline designed for the transportation of liquefied carbon 3 dioxide for which a petition is filed under Code chapter 479B 4 on or after January 1, 2024, except that the provisions of new 5 Code section 479B.16(4) apply retroactively to the construction 6 of pipelines designed for the transportation of liquefied 7 carbon dioxide for which a petition was filed under Code 8 chapter 479B on or after January 1, 2022. Otherwise, the bill 9 applies to the construction of any hazardous liquid pipeline 10 for which a petition is filed on or after the effective date of 11 the bill. 12 -12- LSB 5117XS (15) 91 sb/js 12/ 12