SF 249 (LSB 1980XS (3) 91)

SENATE FILE 249

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

A BILL FOR

An Act relating to damages incurred due to releases of carbon dioxide from liquefied carbon dioxide pipelines or carbon dioxide facilities and including effective date provisions.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:

    Section 1.  NEW SECTION.  479B.34  Carbon dioxide release —— cause of action.
   1.  For purposes of this section:
   a.  “Owner” means any person that owns or operates a liquefied carbon dioxide pipeline or carbon dioxide facility or supplies carbon dioxide to a liquefied carbon dioxide pipeline or carbon dioxide facility.
   b.  “Victim” means any person residing, traveling through, or visiting, or owning or leasing property, equipment, or livestock, within a twenty-five-mile radius from the site of a release of carbon dioxide from a liquefied carbon dioxide pipeline or carbon dioxide facility.
   2.  Any victim shall have standing to commence an action for compensation for any and all damages the victim incurred or is projected to incur due to a release of carbon dioxide from a liquefied carbon dioxide pipeline or carbon dioxide facility.
   3.  A victim shall file a claim under subsection 2 not later than one year after the day the cause of action accrues.
   4.  The owner shall be strictly liable for all compensatory and punitive damages. Any judgment lien imposed as a result of an action brought pursuant to subsection 2 shall have priority over any conflicting security interest or lien, including those perfected prior to the judgment.
   5.  If any owner is involved in bankruptcy or receivership, the trustee, conservator, or court responsible for reorganization or liquidation of the owner’s assets must hold the assets in trust for the benefit of potential carbon dioxide victim judgment lienholders for a period of one year from the owner’s last day of controlling the operations of the liquefied carbon dioxide pipeline or carbon dioxide facility or the owner’s last day of producing carbon dioxide that will be transported through a pipeline or sequestered on the property.
    Sec. 2.  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 damages incurred due to the release of carbon dioxide.
   The bill grants any person residing, traveling through, or visiting, or owning or leasing property, equipment, or livestock, within a 25-mile radius from the site of a release of carbon dioxide from a liquefied carbon dioxide pipeline or carbon dioxide facility standing to bring an action against the owner of a liquefied carbon dioxide pipeline or carbon dioxide facility if carbon dioxide is released from a liquefied carbon dioxide pipeline or carbon dioxide facility.
   The bill requires the claim to be filed within one year of the incident occurring.
   The bill imposes strict liability on the owner for all compensatory and punitive damages. The bill provides that any judgment lien for an action brought under the bill has priority over all other security interests or liens.
   The bill requires any assets held by an owner involved in bankruptcy or receivership to be held in trust for the benefit of potential carbon dioxide victim judgment lienholders for a period of one year from the owner’s last day of controlling the operations of the liquefied carbon dioxide pipeline or carbon dioxide facility or the owner’s last day of producing carbon dioxide that will be transported through a pipeline or sequestered on the property.
   The bill is effective upon enactment.