SF 299 (LSB 1979XS (7) 91)

SENATE FILE 299

BY  SALMON, CAMPBELL, WESTRICH, GUTH, KRAAYENBRINK, LOFGREN, ROWLEY, and TAYLOR

A BILL FOR

An Act establishing the Iowa carbon dioxide disaster relief fund, creating an excise tax, and making appropriations.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:

    Section 1.  NEW SECTION.  479B.34  Carbon dioxide disaster relief fund.
   1.  The purpose of this section is to establish a dedicated fund for disaster relief and safe, efficient disaster response to incidents involving liquefied carbon dioxide pipeline, transportation, and storage systems.
   2.  For purposes of this section:
   a.  “Disaster” means any catastrophic event, regardless of size, resulting from the release or failure of a liquefied carbon dioxide pipeline, transportation, or storage system, including but not limited to a leakage, rupture, or other hazardous incident.
   b.  “Fund” means the Iowa carbon dioxide disaster relief fund created in subsection 3.
   c.  “Victim” means an individual, family, or community that suffers loss, injury, or property damage as a result of carbon dioxide release.
   3.  a.  The Iowa carbon dioxide disaster relief fund is created within the state treasury under control of the department of natural resources. The fund shall consist of moneys appropriated to or deposited in the fund, including moneys deposited pursuant to subsection 4, and donations and gifts to the fund obtained from any source. Moneys in the fund are appropriated to the department of natural resources for purposes provided in paragraph “b”.
   b.  Moneys in the fund shall be used to support the following purposes associated with a liquefied carbon dioxide pipeline or storage system disaster:
   (1)  Immediate disaster response costs that may include containment, emergency response support, and environmental cleanup.
   (2)  Long-term recovery, including full compensation to victims, rebuilding, and environmental restoration.
   4.  a.  An excise tax shall be paid by owners of liquefied carbon dioxide pipelines or carbon dioxide facilities and by persons supplying carbon dioxide to a liquefied carbon dioxide pipeline or carbon dioxide facility at a rate determined by the general assembly, which may be adjusted pursuant to subsection 7. The excise tax shall be administered by the department of revenue and shall be levied on the following:
   (1)  The total transportation capacity of liquefied carbon dioxide pipelines and storage systems operating within Iowa, calculated based on the volume of liquefied carbon dioxide that could potentially be transported through the pipeline system annually.
   (2)  The actual amount of liquefied carbon dioxide transported through Iowa annually, calculated on the volume of liquefied carbon dioxide that is moved through pipelines within and through the state.
   b.  Section 422.25, subsection 4, sections 422.30, 422.67, and 422.68, section 422.69, subsection 1, sections 422.70, 422.71, 422.72, 422.74, and 422.75, section 423.14, subsection 1, and sections 423.23, 423.24, 423.25, 423.31 through 423.35, 423.37 through 423.42, and 423.47, consistent with the provisions of this section, shall apply with respect to the tax authorized under this subsection, in the same manner and with the same effect as if the excise taxes on the transportation capacity or actual transportation of liquefied carbon dioxide were retail sales taxes within the meaning of those statutes. Notwithstanding this paragraph, the director shall provide for monthly filing of returns and for other than monthly filing of returns both as prescribed in section 423.31. All taxes collected under this subsection are deemed to be held in trust for the state of Iowa.
   c.  All moneys received and all refunds shall be deposited in or withdrawn from the fund.
   d.  The department of revenue shall adopt rules to administer the tax authorized by this subsection.
   5.  A minimum of ten billion dollars must be maintained in the fund in order for any common carrier liquefied carbon dioxide pipeline to transport liquefied carbon dioxide within the state. The state shall require all common carrier liquefied carbon dioxide pipelines to cease the transportation of liquefied carbon within the state if the fund is below the amount required in this subsection.
   6.  a.  The oversight board is created and shall consist of no fewer than five members appointed by the governor and confirmed by the senate to serve five-year terms beginning and ending as provided in section 69.19. Expertise in financial management, public policy, and disaster relief shall be considered when determining the appointment of members to the oversight board. Members of the oversight board shall have the following duties and responsibilities:
   (1)  Maintain the fiduciary integrity of the fund by ensuring the moneys are used exclusively for victim relief purposes and that there are no conflicts of interest or mismanagement.
   (2)  Meet at least quarterly to review the financial health of the fund, oversee tax revenues and distributions, and make recommendations for necessary adjustments to the fund’s purposes.
   (3)  Determine and acquire an appropriate amount of insurance to protect the fund and the victims.
   b.  The victim assistance board is created and shall consist of no fewer than seven members appointed by the governor. The members shall include at least one member representing a local government, one member representing an environmental organization, one member representing a disaster relief agency, one member who is a landowner affected by an easement placed by eminent domain, and one member who is a legal expert in liability and victims’ rights. The victim assistance board shall have the following duties and responsibilities:
   (1)  Ensuring the fund’s resources are equitably and efficiently distributed to disaster victims.
   (2)  Assessing the needs of victims, prioritizing claims, and monitoring recovery progress.
   (3)  Advising the oversight board on any adjustments needed in the disaster response process or funding levels.
   (4)  Creating and maintaining an on-demand, three-dimensional plume model network that will use topography, wind speed, wind direction, temperature, humidity, and the amount of released carbon dioxide to accurately predict movement of a plume to assist first responders to efficiently evacuate victims and limit potential property damage.
   (5)  Determining equipment and training required for local first responders and compensating local first responder units.
   7.  a.  The general assembly shall review the operation of the fund every two years to ensure it meets its objectives, adjust the excise tax rate as needed to keep pace with inflation or changing disaster needs, and evaluate the effectiveness of disaster response protocols.
   b.  Recommendations for improvements or changes in disaster relief policies may be proposed by the oversight board or the victims assistance board.
EXPLANATION
The inclusion of this explanation does not constitute agreement with
the explanation’s substance by the members of the general assembly.
   This bill establishes the Iowa carbon dioxide disaster relief fund (fund). The bill creates the fund in the state treasury under the control of the department of natural resources (DNR). The fund shall consist of moneys deposited into the fund, including moneys collected from the excise tax assessed under the bill and gifts and donations received for the fund. Moneys in the fund are appropriated to DNR to respond to catastrophic events, regardless of size, resulting from the release or failure of a liquefied carbon dioxide pipeline, transportation, or storage system, including but not limited to a leakage, rupture, or other hazardous incident. The moneys may be used by the department for immediate disaster response, including containment, emergency response support, or environmental cleanup or long-term recovery, including compensation to victims, rebuilding, and environmental restoration.
   The fund is financed through an excise tax at a rate determined by the general assembly. The bill imposes the excise tax on the total annual transportation capacity of liquefied carbon dioxide pipelines and storage systems operating within Iowa and the actual amount of liquefied carbon dioxide transported through Iowa annually.
   The bill requires a minimum of $10 billion to be maintained in the fund in order for any common carrier liquefied carbon dioxide pipeline to transport liquefied carbon dioxide within the state.
   The bill creates two fiduciary oversight boards, the oversight board and the victim assistance board. The oversight board consists of at least five members appointed to five-year terms by the governor and confirmed by the senate. Expertise in financial relief, public policy, and disaster relief is considered when appointing the members. The members are responsible for maintaining the integrity of the fund, meeting at least quarterly to review the fund and oversee tax revenues and distributions, making recommendations for changes, and acquiring appropriate insurance to protect the fund and victims.
   The victim assistance board consists of at least seven members, five of which must meet certain qualifications provided in the bill. The members are responsible for ensuring that the fund’s resources are equitably and efficiently distributed to disaster victims, assessing the needs of victims, prioritizing claims, monitoring the recovery progress, advising the oversight board on any adjustments needed in the disaster response process or funding levels, creating and maintaining an on-demand, three-dimensional plume model network to accurately predict movement of a carbon dioxide plume, determining equipment and training required for local first responders, and compensating local first responder units.
   The bill requires the general assembly to review the operation of the fund every two years to ensure it meets its objectives, adjust the excise tax rate as needed to keep pace with inflation or changing disaster needs, and evaluate the effectiveness of disaster response protocols.
   The bill allows the oversight board or the victims assistance board to recommend improvements or changes to disaster relief policies.