S.F. 299 Section 1. NEW SECTION . 479B.34 Carbon dioxide disaster 1 relief fund. 2 1. The purpose of this section is to establish a dedicated 3 fund for disaster relief and safe, efficient disaster response 4 to incidents involving liquefied carbon dioxide pipeline, 5 transportation, and storage systems. 6 2. For purposes of this section: 7 a. “Disaster” means any catastrophic event, regardless of 8 size, resulting from the release or failure of a liquefied 9 carbon dioxide pipeline, transportation, or storage system, 10 including but not limited to a leakage, rupture, or other 11 hazardous incident. 12 b. “Fund” means the Iowa carbon dioxide disaster relief fund 13 created in subsection 3. 14 c. “Victim” means an individual, family, or community that 15 suffers loss, injury, or property damage as a result of carbon 16 dioxide release. 17 3. a. The Iowa carbon dioxide disaster relief fund 18 is created within the state treasury under control of the 19 department of natural resources. The fund shall consist of 20 moneys appropriated to or deposited in the fund, including 21 moneys deposited pursuant to subsection 4, and donations and 22 gifts to the fund obtained from any source. Moneys in the fund 23 are appropriated to the department of natural resources for 24 purposes provided in paragraph “b” . 25 b. Moneys in the fund shall be used to support the following 26 purposes associated with a liquefied carbon dioxide pipeline or 27 storage system disaster: 28 (1) Immediate disaster response costs that may include 29 containment, emergency response support, and environmental 30 cleanup. 31 (2) Long-term recovery, including full compensation to 32 victims, rebuilding, and environmental restoration. 33 4. a. An excise tax shall be paid by owners of liquefied 34 carbon dioxide pipelines or carbon dioxide facilities and by 35 -1- LSB 1979XS (7) 91 sb/js 1/ 6

S.F. 299 persons supplying carbon dioxide to a liquefied carbon dioxide 1 pipeline or carbon dioxide facility at a rate determined by the 2 general assembly, which may be adjusted pursuant to subsection 3 7. The excise tax shall be administered by the department of 4 revenue and shall be levied on the following: 5 (1) The total transportation capacity of liquefied carbon 6 dioxide pipelines and storage systems operating within Iowa, 7 calculated based on the volume of liquefied carbon dioxide that 8 could potentially be transported through the pipeline system 9 annually. 10 (2) The actual amount of liquefied carbon dioxide 11 transported through Iowa annually, calculated on the volume of 12 liquefied carbon dioxide that is moved through pipelines within 13 and through the state. 14 b. Section 422.25, subsection 4, sections 422.30, 422.67, 15 and 422.68, section 422.69, subsection 1, sections 422.70, 16 422.71, 422.72, 422.74, and 422.75, section 423.14, subsection 17 1, and sections 423.23, 423.24, 423.25, 423.31 through 18 423.35, 423.37 through 423.42, and 423.47, consistent with the 19 provisions of this section, shall apply with respect to the tax 20 authorized under this subsection, in the same manner and with 21 the same effect as if the excise taxes on the transportation 22 capacity or actual transportation of liquefied carbon dioxide 23 were retail sales taxes within the meaning of those statutes. 24 Notwithstanding this paragraph, the director shall provide for 25 monthly filing of returns and for other than monthly filing 26 of returns both as prescribed in section 423.31. All taxes 27 collected under this subsection are deemed to be held in trust 28 for the state of Iowa. 29 c. All moneys received and all refunds shall be deposited 30 in or withdrawn from the fund. 31 d. The department of revenue shall adopt rules to administer 32 the tax authorized by this subsection. 33 5. A minimum of ten billion dollars must be maintained 34 in the fund in order for any common carrier liquefied carbon 35 -2- LSB 1979XS (7) 91 sb/js 2/ 6

S.F. 299 dioxide pipeline to transport liquefied carbon dioxide 1 within the state. The state shall require all common carrier 2 liquefied carbon dioxide pipelines to cease the transportation 3 of liquefied carbon within the state if the fund is below the 4 amount required in this subsection. 5 6. a. The oversight board is created and shall consist 6 of no fewer than five members appointed by the governor and 7 confirmed by the senate to serve five-year terms beginning and 8 ending as provided in section 69.19. Expertise in financial 9 management, public policy, and disaster relief shall be 10 considered when determining the appointment of members to the 11 oversight board. Members of the oversight board shall have the 12 following duties and responsibilities: 13 (1) Maintain the fiduciary integrity of the fund by ensuring 14 the moneys are used exclusively for victim relief purposes and 15 that there are no conflicts of interest or mismanagement. 16 (2) Meet at least quarterly to review the financial health 17 of the fund, oversee tax revenues and distributions, and 18 make recommendations for necessary adjustments to the fund’s 19 purposes. 20 (3) Determine and acquire an appropriate amount of 21 insurance to protect the fund and the victims. 22 b. The victim assistance board is created and shall consist 23 of no fewer than seven members appointed by the governor. 24 The members shall include at least one member representing a 25 local government, one member representing an environmental 26 organization, one member representing a disaster relief agency, 27 one member who is a landowner affected by an easement placed 28 by eminent domain, and one member who is a legal expert in 29 liability and victims’ rights. The victim assistance board 30 shall have the following duties and responsibilities: 31 (1) Ensuring the fund’s resources are equitably and 32 efficiently distributed to disaster victims. 33 (2) Assessing the needs of victims, prioritizing claims, 34 and monitoring recovery progress. 35 -3- LSB 1979XS (7) 91 sb/js 3/ 6

S.F. 299 (3) Advising the oversight board on any adjustments needed 1 in the disaster response process or funding levels. 2 (4) Creating and maintaining an on-demand, 3 three-dimensional plume model network that will use topography, 4 wind speed, wind direction, temperature, humidity, and the 5 amount of released carbon dioxide to accurately predict 6 movement of a plume to assist first responders to efficiently 7 evacuate victims and limit potential property damage. 8 (5) Determining equipment and training required for local 9 first responders and compensating local first responder units. 10 7. a. The general assembly shall review the operation of 11 the fund every two years to ensure it meets its objectives, 12 adjust the excise tax rate as needed to keep pace with 13 inflation or changing disaster needs, and evaluate the 14 effectiveness of disaster response protocols. 15 b. Recommendations for improvements or changes in disaster 16 relief policies may be proposed by the oversight board or the 17 victims assistance board. 18 EXPLANATION 19 The inclusion of this explanation does not constitute agreement with 20 the explanation’s substance by the members of the general assembly. 21 This bill establishes the Iowa carbon dioxide disaster 22 relief fund (fund). The bill creates the fund in the state 23 treasury under the control of the department of natural 24 resources (DNR). The fund shall consist of moneys deposited 25 into the fund, including moneys collected from the excise 26 tax assessed under the bill and gifts and donations received 27 for the fund. Moneys in the fund are appropriated to DNR to 28 respond to catastrophic events, regardless of size, resulting 29 from the release or failure of a liquefied carbon dioxide 30 pipeline, transportation, or storage system, including but not 31 limited to a leakage, rupture, or other hazardous incident. 32 The moneys may be used by the department for immediate disaster 33 response, including containment, emergency response support, 34 or environmental cleanup or long-term recovery, including 35 -4- LSB 1979XS (7) 91 sb/js 4/ 6

S.F. 299 compensation to victims, rebuilding, and environmental 1 restoration. 2 The fund is financed through an excise tax at a rate 3 determined by the general assembly. The bill imposes the 4 excise tax on the total annual transportation capacity 5 of liquefied carbon dioxide pipelines and storage systems 6 operating within Iowa and the actual amount of liquefied carbon 7 dioxide transported through Iowa annually. 8 The bill requires a minimum of $10 billion to be maintained 9 in the fund in order for any common carrier liquefied carbon 10 dioxide pipeline to transport liquefied carbon dioxide within 11 the state. 12 The bill creates two fiduciary oversight boards, the 13 oversight board and the victim assistance board. The oversight 14 board consists of at least five members appointed to five-year 15 terms by the governor and confirmed by the senate. Expertise 16 in financial relief, public policy, and disaster relief is 17 considered when appointing the members. The members are 18 responsible for maintaining the integrity of the fund, meeting 19 at least quarterly to review the fund and oversee tax revenues 20 and distributions, making recommendations for changes, and 21 acquiring appropriate insurance to protect the fund and 22 victims. 23 The victim assistance board consists of at least seven 24 members, five of which must meet certain qualifications 25 provided in the bill. The members are responsible for ensuring 26 that the fund’s resources are equitably and efficiently 27 distributed to disaster victims, assessing the needs of 28 victims, prioritizing claims, monitoring the recovery progress, 29 advising the oversight board on any adjustments needed in the 30 disaster response process or funding levels, creating and 31 maintaining an on-demand, three-dimensional plume model network 32 to accurately predict movement of a carbon dioxide plume, 33 determining equipment and training required for local first 34 responders, and compensating local first responder units. 35 -5- LSB 1979XS (7) 91 sb/js 5/ 6

S.F. 299 The bill requires the general assembly to review the 1 operation of the fund every two years to ensure it meets its 2 objectives, adjust the excise tax rate as needed to keep pace 3 with inflation or changing disaster needs, and evaluate the 4 effectiveness of disaster response protocols. 5 The bill allows the oversight board or the victims 6 assistance board to recommend improvements or changes to 7 disaster relief policies. 8 -6- LSB 1979XS (7) 91 sb/js 6/ 6