SSB 1113 (LSB 2104XC (2) 91)

SENATE FILE _____ 

BY  (PROPOSED COMMITTEE ON COMMERCE BILL BY CHAIRPERSON BOUSSELOT)

A BILL FOR

An Act relating to electric transmission lines approved by federally registered planning authority transmission plans including right of first refusal and land restoration requirements, and including effective date and applicability provisions.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:

    Section 1.  Section 478.16, Code 2025, is amended to read as follows:
   478.16  Electric transmission lines —— federally registered planning authority transmission plans.
   1.  Development and investment in high-voltage transmission is urgently needed to ensure the reliable, adequate, secure, and stable delivery of electricity to consumers. To ensure reliable electric service to the people of Iowa as a matter of public policy, it is the intent of the general assembly to express a preference for further investment in Iowa transmission infrastructure by electric transmission owners who have already dedicated significant resources to develop the infrastructure on which Iowans rely and who are better able to provide reliable electric service to local electric utilities and retail customers in Iowa.
   1.  2.  As used in this section, unless the context otherwise requires:
   a.  “Electric transmission line” means a high-voltage electric transmission line located in this state with a capacity voltage of one hundred kilovolts or more and any associated electric transmission facility, including any substation or other equipment located in this state.
   b.  “Electric transmission owner” means an individual or entity who, as of July 1, 2020, formed, located, or headquartered in any state who owns and maintains an electric transmission line in this state that is required for rate-regulated electric utilities, municipal electric utilities, and rural electric cooperatives in this state to provide electric service to the public for compensation.
   c.  “Incumbent electric transmission owner” means any an individual or entity meeting the definition of the following:
   (1)  A public utility or a municipally owned utility that owns, operates, and maintains an electric transmission line in this state.
   (2)  An electric cooperative corporation or association or municipally owned utility that owns an electric transmission facility in this state and has turned over the functional control of such facility to a federally approved authority.
   (3)  An an “electric transmission owner” as defined in paragraph “b” on or before July 1, 2024.
   d.  “Landowner” means the same as defined in section 478.2 

“Initial construction” means the construction necessary to establish and place an electric transmission line into initial operation.
   e.  “Load ratio share” means the amount, expressed as a percentage, of a public power utility’s electric load divided by the total electric load in the applicable incumbent electric transmission owner’s pricing zone.
   e.  f.  “Municipally owned utility” means a “city utility” as defined in section 362.2, or an “electric power agency” as defined in section 390.9 which that is comprised solely of cities or solely of cities and other political subdivisions.
   g.  “Public power utility” means a municipally owned utility or an electric cooperative corporation or association that receives transmission service from an incumbent electric transmission owner, or that is subject to regional cost allocation for the electric transmission line, or both.
   h.  “Qualified individual” means someone who is capable and knowledgable enough to determine compliance with the standards set forth in this section.
   2.  3.  a.  An incumbent electric transmission owner has the right to construct, own, and maintain an electric transmission line that has been approved for construction in a federally registered planning authority transmission plan and which that directly connects to an electric transmission facility owned by the incumbent electric transmission owner. Where a proposed electric transmission line would directly connect to electric transmission facilities owned by two or more incumbent electric transmission owners, each incumbent electric transmission owner whose facility connects to the electric transmission line has the right to construct, own, and maintain the electric transmission line individually and equally. If an incumbent electric transmission owner declines to construct, own, and maintain its portion of an electric transmission line that would connect to electric transmission facilities owned by two or more incumbent electric transmission owners, then the other incumbent electric transmission owner or owners that own an electric transmission facility to which the electric transmission line connects has the right to construct, own, and maintain the electric transmission line individually.
   b.  An eligible incumbent electric transmission owner exercising the right to construct, own, and maintain an electric transmission line pursuant to paragraph “a” shall offer public power utilities an opportunity to jointly own a portion of the electric transmission line and such offer shall be in an amount not less than a public power utility’s load ratio share, pursuant to a written agreement. Nothing in this section shall be construed to prohibit an incumbent electric transmission owner and a public power utility from agreeing to joint ownership of an electric transmission line in an amount different than the public power utility’s load ratio share. A public power utility may transfer or assign joint ownership rights acquired under this section to another public power utility or group of public power utilities by mutual consent of the eligible contracting parties.
   c.  An eligible incumbent electric transmission owner exercising the right to construct, own, and maintain an electric transmission line pursuant to paragraph “a” may contract with another electric transmission owner or electric public utility as defined in section 476.1 to jointly own a portion of the electric transmission line pursuant to a written agreement.
   d.  For purposes of this section, a municipally owned utility or an electric cooperative corporation or association may elect to be an incumbent electric transmission owner or a public power utility but cannot act as both with respect to a single transmission line.
   3.  4.  If an electric transmission line has been approved for construction in a federally registered planning authority transmission plan, and the electric transmission line is not subject to a right of first refusal in accordance with the tariff of a federally registered planning authority and would otherwise be subject to a competitive developer process, then within the later of ninety days of approval for construction or ninety days after enactment of this Act, an incumbent electric transmission owner, or owners if there is more than one owner, that owns a connecting electric transmission facility shall give written notice to the commission regarding whether the incumbent electric transmission owner or owners intend to construct, own, and maintain the electric transmission line. If the incumbent electric transmission owner or owners give notice of intent to construct the electric transmission line, the incumbent electric transmission owner or owners shall follow the applicable franchise requirements pursuant to this chapter.  The incumbent electric transmission owner shall update the notice to construct an electric transmission line to include information concerning the implementation of joint ownership as described in subsection 3, paragraphs “b” and “c”, within thirty days after a written agreement has been reached between the parties. If the incumbent electric transmission owner or owners give notice declining to construct the electric transmission line, the commission may determine whether another person may construct the electric transmission line.
   4.  5.  For projects where for which an election to construct an electric transmission line has been made under this section, all of the following cost accountability measures shall apply:
   a.  Within thirty days after the issuance of a franchise pursuant to this chapter for the electric transmission line, the incumbent electric transmission owner or owners shall provide to the commission an estimate of the cost to construct complete the initial construction of the electric transmission line.
   b.  Until the initial construction of the electric transmission line is complete, the incumbent electric transmission owner or owners shall provide a quarterly report to the commission, which shall include an updated estimate of the cost to construct the electric transmission line, and an explanation of changes in the cost estimate from the prior cost estimate, and documentation that the incumbent electric transmission owner or owners have used competitively bid construction contracts that meet all the technical, commercial, and other specifications, such as safety performance, that are required by the incumbent electric transmission owner or owners with respect to the initial construction of the electric transmission line.
   c.  The consumer advocate appointed under section 475A.1 shall have free access to documents, reports, and information submitted to the commission pursuant to this subsection, consistent with section 475A.4. To the extent relevant, the commission and the consumer advocate may use the information for any purpose properly within the scope of their respective duties including but not limited to use in proceedings before the federal energy regulatory commission to challenge the costs incurred by the incumbent electric transmission owner. However, this subsection does not create a private cause of action or complaint.
   5.  6.  This section shall not modify the authority of the commission under this chapter, the rights of landowners under this chapter, or the requirements, rights, and obligations relating to the construction, maintenance, and operation of electric transmission lines pursuant to this chapter.
   6.  7.  This section shall not apply to an electric transmission line to be placed underground that has not been approved for construction in a federally registered planning authority transmission plan.
   7.  8.  The commission shall adopt rules pursuant to chapter 17A to administer this section, which shall include rules regarding the restoration of agricultural lands following the initial construction of an electric transmission line, as specified in subsection 9.
   9.  The commission shall adopt rules to implement the following requirements, which shall not apply within the corporate limits of a city or to any construction, activity, or electric transmission lines other than the initial construction of an electric transmission line with a voltage of two hundred or more kilovolts and for which an election to construct has been made under this section:
   a.  An incumbent electric transmission owner shall repair a damaged underground drain tile as soon as practicable during construction of the electric transmission line. Permanent repairs to the damaged underground drain tile shall be completed as soon as practicable after the initial construction of the electric transmission line is complete. The repairs made to the damaged drain tile shall be of at least equal quality, size, and flow capacity of the original drain tile. 
   b.  Following the initial construction of an electric transmission line, the incumbent electric transmission owner shall remove from the easement area all rock larger than three inches in average diameter not native to the soil of the excavated land. The rock removed from the excavated land that cannot be used to backfill shall be disposed of at a location and in a manner agreed upon by the incumbent electric transmission owner and the landowner. 
   c.  Upon completion of construction activities on a property, the incumbent electric transmission owner shall deep till agricultural land, including right-of-way access points or roads traversed by heavy construction equipment, to alleviate soil compaction. The land shall be tilled at least eighteen inches deep in land used for crop production and twelve inches deep in other lands unless otherwise agreed to by the landowner.
   d.  Upon completion of the electric transmission line, the incumbent electric transmission owner shall restore the soil conservation practices and structures damaged during construction of the electric transmission line to the elevation and grade existing on the land prior to the construction. The soil used to repair embankments intended to retain water shall be well compacted. Any vegetation disturbed during construction shall be reestablished, including cover crops when appropriate.
   e.  Following compaction of the land, agricultural land that is not in row crop or small grain production at the time of construction, including hay ground and land in conservation or set-aside programs, shall be reseeded and a cover crop shall be utilized when appropriate. Seeding for cover crops may be delayed if the construction of the electric transmission line is completed too late in the year for a cover crop to become established and is not required if the land will be tilled in the following year. The landowner may request ground cover to prevent soil erosion in areas where construction on the electric transmission line is completed if the season is not suitable for seeding a cover crop.
   f.  Unless agreed upon by the incumbent electric transmission owner and the landowner, the incumbent electric transmission owner shall remove field entrances or temporary roads built for the purpose of constructing the electric transmission line upon the completion of the initial construction and restore the area to its previous use.
   g.  An incumbent electric transmission owner shall use good utility practices for constructing the electric transmission line in wet conditions, such as electing to use matting or padding when utilizing heavy equipment. An incumbent electric transmission owner shall grade and till any rutted land to restore, to the extent practicable, the original condition of the land prior to the construction of the electric transmission line. If agreed upon by the incumbent electric transmission owner and the landowner, the landowner may repair any damage caused by construction activities in wet conditions and the incumbent electric transmission owner shall reimburse the landowner for the reasonable cost incurred to repair the damage. If an incumbent electric transmission owner utilizes heavy equipment in wetlands or mudflats, mats or other measures shall be utilized to minimize soil disturbance.
   h.  For each electric transmission line, the incumbent electric transmission owner shall designate a point of contact for inquiries or claims from an affected person. The designation shall include a name, a telephone number, an email address, and an address.
   10.  a.  If an incumbent electric transmission owner and a landowner dispute a potential violation of the restoration standards provided in subsection 9, the commission may appoint a qualified individual to inspect the property for compliance. If the qualified individual determines that there has been a violation of the applicable restoration standards, the commission shall provide oral notice, followed by written notice, to the incumbent electric transmission owner and the contractor operating for the incumbent electric transmission owner and order corrective action to comply with the restoration standards. The incumbent electric transmission owner shall be responsible for the costs of the corrective action.
   b.  If the incumbent electric transmission owner or the contractor for the incumbent electric transmission owner does not comply with a valid order for corrective action issued by the commission, the commission may issue an order requiring corrective action to be taken and may impose civil penalties under section 478.29.
   c.  The commission shall instruct the inspector appointed by the commission regarding the content of the statutes and rules and the responsibility of the inspector to require restoration conforming with the standards established in subsection 9. 
   11.  a.  A petitioner for a franchise for an electric transmission line shall file with the petition a written land restoration plan that documents how the requirements and rules of subsection 9 will be met. The petitioner shall provide a copy of the plan to all landowners of property that will be disturbed by the initial construction. 
   b.  Nothing in this section shall preclude the application of provisions for protecting or restoring property that are different than those prescribed in subsection 9, in rules adopted under subsection 9, or in the land restoration plan, if the alternative provisions are contained in agreements independently executed by the incumbent electric transmission owner and the landowner. Independent agreements for land restoration between the incumbent electric transmission owner and the landowner shall be in writing and provided to the commission.
   c.  The commission may by waiver allow variations from the requirements of subsection 9 if the incumbent electric transmission owner requesting a waiver satisfies the standards set forth in section 17A.9A and if the alternative methods proposed by the incumbent electric transmission owner would restore the land to a condition as good as or better than as provided for in subsection 9. 
   d.  The commission may waive preparation of a separate land restoration plan if the incumbent electric transmission owner enters into an agricultural impact mitigation plan or similar agreement with the appropriate agencies of this state that satisfies the requirements of subsection 9. If a mitigation plan or agreement is used to fully or partially meet the requirements of a land restoration plan, the statement or agreement shall be filed with the commission and shall be considered to be, or to be part of, the land restoration plan for purposes of subsection 9. 
   12.  Nothing in this section shall limit, expand, or otherwise modify the rights of access and obligations for damages set forth in section 478.17.
    Sec. 2.  Section 478.18, Code 2025, is amended to read as follows:
   478.18  Supervision of construction —— location.
   1.  The utilities commission shall have power of supervision over the construction of a transmission line and over its future operation and maintenance, including inspections for compliance with the standards adopted under section 478.16 after restoration of the land is complete.
   2.  A transmission line shall be constructed near and parallel to roads, to the right-of-way of the railways of the state, or along the division lines of the lands, according to the government survey, wherever the same is practicable and reasonable, and so as not to interfere with the use by the public of the highways or streams of the state, nor unnecessarily interfere with the use of any lands by the occupant.
   3.  The utilities commission may contract a qualified individual for the purpose of inspections authorized under section 478.16. The reasonable cost of the inspection shall be paid by the incumbent electric transmission owner. The utilities commission shall instruct the inspector appointed by the commission regarding the content of the statutes and rules and the responsibility of the inspector to require restoration conforming with the applicable standards established in section 478.16. For purposes of this section, “qualified individual” means the same as defined in section 478.16.
    Sec. 3.  EFFECTIVE DATE.  This Act, being deemed of immediate importance, takes effect upon enactment.
    Sec. 4.  RETROACTIVE APPLICABILITY.  With the exception of the portion of the section of this Act amending section 478.16, subsection 3, paragraph “b”, as amended by this Act, this Act applies retroactively to transmission lines included in a federally registered planning authority long-term transmission plan approved on or after July 1, 2020. The portion of the section of this Act amending section 478.16, subsection 3, paragraph “b”, as amended by this Act, shall apply retroactively to transmission lines included in a federally registered planning authority long-term transmission plan approved on or after July 1, 2024.
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 electric transmission lines approved by federally registered planning authority transmission plans including right of first refusal and land restoration requirements.
   The bill expounds the legislative purpose of Code section 478.16, identifying Iowa consumers’ urgent need for development and investment in high-voltage transmission. The bill provides that an incumbent electric transmission owner may be formed, located, or headquartered in any state as long as the electric transmission line is located in Iowa.
   The bill defines an “incumbent electric transmission owner” as an individual or entity who, as of July 1, 2024, owns and maintains an electric transmission line in this state that is required for rate-regulated electric utilities, municipal electric utilities, and rural electric cooperatives in the state to provide electric service to the public for compensation.
   Under the bill, an incumbent electric transmission facility owner has the right to construct, own, and maintain an electric transmission line that directly connects to the electric transmission facility. If a proposed transmission line would directly connect to facilities owned by two or more facility owners, each owner has the right to construct, own, and maintain the electric transmission line individually and equally.
   The bill requires an incumbent electric transmission owner exercising its right to construct, own, and maintain an electric transmission line to offer public power utilities an opportunity to jointly own a portion of the electric transmission line. The offered amount must be at least the amount of the public power utility’s electric load divided by the total electric load in the applicable incumbent electric transmission owner’s pricing zone. The bill does not prohibit the entities from agreeing to joint ownership in a different amount. Additionally, the bill allows the public power utility to transfer or assign its joint ownership rights to another public power utility or group of public power utilities with the consent of the incumbent electric transmission owner.
   The bill allows an incumbent electric transmission owner exercising its right to construct, own, and maintain an electric transmission line to contract with another electric transmission owner or electric public utility to jointly own a portion of the electric transmission line.
   The bill requires the incumbent electric transmission owner or owners with approved electric transmission lines not subject to right of first refusal in a federally registered planning authority transmission plan to give notice to the commission whether the owner or owners intend to construct, own, and maintain the electric transmission line. The notice shall be given within the later of 90 days of approval for construction or 90 days after enactment of the bill. The commission may determine whether another person may construct the electric transmission line if the incumbent electric transmission owner or owners give notice declining to construct or do not give timely notice.
   The bill requires incumbent electric transmission owners to provide documentation to the commission that shows utilization of competitively bid construction contracts that meet all necessary technical, commercial, and other specifications required for compliant construction.
   The bill allows the consumer advocate free access to all documents, reports, and information submitted to the commission regarding cost accountability measures for the construction of electric transmission lines. These documents, reports, and information may be used by the consumer advocate for any purpose within the scope of the consumer advocate’s duties. These provisions do not create a private cause of action or complaint.
   The bill directs the commission to adopt rules to implement the land restoration requirements after initial construction of an electric transmission line as set forth in the bill.
   The bill requires incumbent electric transmission owners to repair drain tiles damaged during construction as soon as practicable and to complete permanent repairs as soon as practicable after initial construction. The permanent repairs must be of the same quality, size, and flow capacity of the original drain tile.
   The bill requires incumbent electric transmission owners to remove all nonnative rocks larger than three inches in diameter from the easement area. The disposal of rock that cannot be used as backfill must be done at a location and in a manner agreed to between the incumbent electric transmission owner and the landowner.
   The bill requires the incumbent electric transmission owner to till agricultural land affected by construction, including right-of-way access points or roads, after electric transmission line construction activities are completed on the affected property. The land must be tilled at least 18 inches deep in land used for crop production and 12 inches deep in all other land, unless otherwise agreed to by the landowner.
   The bill requires the incumbent electric transmission owner to restore soil conservation practices and structures damaged during construction to their previous state, compact the soil used to repair embankments intended to retain water, and reestablish any vegetation disturbed during construction, including cover crops.
   The bill requires the incumbent electric transmission owner to reseed the agricultural land, excluding row crops and small grain production, following compaction of the land. Seeding for cover crops may be delayed if construction is completed too late in the year and is not required if the land will be tilled the following year. When the season is not suitable for the seeding of cover crops, the landowner may request ground cover to prevent soil erosion.
   The bill requires the incumbent electric transmission owner to remove all field entrances and temporary roads used during construction and to restore the areas to their previous state following the completion of the initial construction.
   The bill requires the incumbent electric transmission owner to use good practices when constructing in wet conditions and to grade and till any rutted land in order to restore the land to its original condition to the extent practicable. Additionally, the bill allows the landowner to repair damage caused by construction in wet conditions. The incumbent electric transmission owner shall then reimburse the landowner for reasonable costs of repair. The bill requires an electric transmission owner to utilize mudflats, mats, or other measures to minimize soil disturbance when using heavy equipment in wetlands.
   The bill requires the incumbent electric transmission owner to provide contact information to all persons affected by the construction of each transmission line.
   The bill allows the commission to appoint an inspector to determine compliance with restoration standards in the event the incumbent electric transmission owner and the landowner dispute over potential violations. The cost of the inspection shall be paid by the incumbent electric transmission owner. If the inspector determines there have been violations of the restoration standards, the commission will provide oral and written notice to the incumbent electric transmission owner. The commission will order corrective actions be taken to comply with the standards. The costs of the corrective actions will be borne by the electric transmission owner.
   The bill allows the commission to issue an order requiring corrective action and impose civil penalties if the incumbent electric transmission owner or its contractor do not comply with the required standards.
   The bill requires the commission to instruct the inspectors on the statutes, rules, and responsibilities regarding restoration standards.
   The bill requires petitioners for a franchise for electric transmission construction to file a land restoration plan outlining how the construction will conform to the required standards. The restoration plan will also be provided to all property owners affected by the construction.
   The bill allows alternative provisions in independent agreements with landowners regarding protecting or restoring property as long as these provisions are in writing and are provided to the commission.
   The bill allows electric transmission owners to propose alternate methods of land restoration to the commission. The commission, by waiver, may allow variations to the land restoration requirements if the proposed alternate methods would restore the land to a condition as good or better than those required by the bill.
   The bill allows the commission to waive the preparation of a separate land restoration plan, in whole or in part, if the incumbent electric transmission owner satisfies the requirements through similar agreement with other agencies in the state. The relevant agreements must be filed with the commission.
   The bill does not limit, expand, or otherwise modify the rights of access and obligations for damages set forth in Code section 478.17.
   The bill takes effect upon enactment.
   The bill applies retroactively to an electric transmission line included in a federally registered planning authority long-term transmission plan approved on or after July 1, 2020, with the exception of the provisions requiring incumbent electric transmission owners to offer public power utilities the option to jointly own qualifying electric transmission lines. For this exception, the bill applies retroactively to July 1, 2024.