SF 239 (LSB 2334XS (2) 91)

SENATE FILE 239

BY  SALMON, CAMPBELL, ALONS, GUTH, WESTRICH, GREEN, and TAYLOR

A BILL FOR

An Act relating to insurance requirements for the granting of a hazardous liquid pipeline permit.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:

    Section 1.  NEW SECTION.  479B.13A  Insurance requirements for permittee.
   1.  In addition to the requirements of section 479B.13, before a permit is granted under this chapter, the applicant shall provide to the commission evidence of an appropriate surety or insurance policy to ensure the payment of all damages resulting from the construction and operation of the hazardous liquid pipeline. The surety or insurance policy must be sufficient to indemnify fully all of the following:
   a.  Any loss arising from or related to any negligent or intentional discharge of content from the pipeline.
   b.  Any injury, including diminution of value of real property, to affected properties due to the construction of the pipeline or the accidental or intentional discharge of content.
   c.  The inability for a person to obtain insurance, or the increased costs for a person to obtain or renew insurance, due to the presence or construction of the pipeline.
   2.  If any person is unable to obtain insurance, or experiences increased costs to obtain or renew insurance, as a result of the presence or construction of the pipeline, the pipeline owner shall either purchase insurance on behalf of the person or reimburse the person for the person’s increased premium costs.
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 insurance requirements for the granting of a hazardous liquid pipeline permit.
   The bill requires an applicant for a hazardous liquid pipeline permit to submit evidence to the Iowa utilities commission of a surety or insurance policy that ensures payment of all damages that may result from the construction or operation of the hazardous liquid pipeline before a permit may be granted by the commission. The surety or insurance policy must be sufficient to cover losses and injury resulting from construction of the hazardous liquid pipeline and from any discharge of content from the pipeline. The surety or insurance policy must also be sufficient to cover any person’s increased insurance costs, or the person’s inability to obtain insurance, due to the construction or presence of the pipeline.
   The bill requires the pipeline company to either purchase insurance on behalf of or reimburse any person who experiences increased insurance premiums or the inability to obtain insurance due to the construction or presence of the pipeline.