SSB 1166 (LSB 2733XC (1) 91)

SENATE FILE _____ 

BY  (PROPOSED COMMITTEE ON JUDICIARY BILL BY CHAIRPERSON SCHULTZ)

A BILL FOR

An Act relating to applications for permits to construct electric transmission lines, pipelines and underground storage facilities, and hazardous liquid pipelines, making penalties applicable, providing fees, and including effective date and applicability provisions.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:

    Section 1.  Section 6A.22, subsection 2, paragraph b, Code 2025, is amended to read as follows:
   b.  Except as specifically included in the definition in paragraph “a”, “public use” or “public purpose” or “public improvement” does not mean the construction of pipelines, roads, electric transmission lines, or internet cables, except within a city or village, or economic development activities resulting in increased tax revenues, increased employment opportunities, privately owned or privately funded housing and residential development, privately owned or privately funded commercial or industrial development, or the lease of publicly owned property to a private party.
    Sec. 2.  Section 6B.2B, Code 2025, is amended to read as follows:
   6B.2B  Acquisition negotiation.
   1.  The acquiring agency shall make a good faith effort to negotiate with the owner to purchase the private property or property interest before filing an application for condemnation or otherwise proceeding with the condemnation process.  A landowner shall have the right to bring a cause of action against an acquiring agency who fails to negotiate in good faith. An acquiring agency shall not make an offer to purchase the property or property interest that is less than the fair market value the acquiring agency has established for the property or property interest pursuant to the appraisal required in section 6B.45 or less than the value determined under the acquiring agency’s waiver procedure established pursuant to section 6B.54, subsection 2, for acquisition of property with a low fair market value. A purchase offer made by an acquiring agency shall include provisions for payment to the owner of expenses, including relocation expenses, expenses listed in section 6B.54, subsection 10, and other expenses required by law to be paid by an acquiring agency to a condemnee. However, in the alternative, the acquiring agency may make, and the owner may accept, a purchase offer from the acquiring agency that is an amount equal to one hundred thirty percent of the appraisal amount plus payment to the owner of expenses listed in section 6B.54, subsection 10, once those expenses have been determined. If the owner accepts such a purchase offer, the owner is barred from claiming payment from the acquiring agency for any other expenses allowed by law. An acquiring agency need not make an offer in excess of the amounts described in this section in order to satisfy the requirement to negotiate in good faith. The option to make an alternative purchase offer does not apply when property is being acquired for street and highway projects undertaken by the state, a county, or a city.
   2.  An acquiring agency shall disclose all of a landowner’s legal rights in each purchase offer, including but not limited to all of the following:
   a.  The statement of individual rights created pursuant to section 6B.2A.
   b.  The damages and costs for which the acquiring agency is liable.
   c.  The acquiring agency’s obligations relating to land restoration.
    Sec. 3.  Section 476A.7, subsection 1, Code 2025, is amended to read as follows:
   1.  Issuance of a certificate by the commission authorizes all of the following:
   a.  Authorizes The construction of the facility on the site designated in the certificate according to the terms and conditions stated in the certificate and licenses and permits issued by regulatory agencies during the proceeding; and,.
   b.  Gives the applicant The use of the power of eminent domain by the applicant to the extent and under such conditions as the commission may approve, prescribe, and find necessary for the public convenience, use, and necessity, subject to subsection 4, proceeding in the manner of works of internal improvement under chapter 6B. The burden of proving the necessity for the exercise of the power of eminent domain shall be on the person issued the certificate.
    Sec. 4.  Section 476A.7, Code 2025, is amended by adding the following new subsection:
   NEW SUBSECTION.  4.  The commission shall not grant eminent domain rights to a person, company, or corporation having secured a certificate as provided in this chapter unless at least nine-tenths of the affected parcels and three-quarters of the total distance of the facility have been acquired through voluntary easements. The commission shall not require more than nine-tenths of easements to be voluntary.
    Sec. 5.  Section 478.2, subsection 4, Code 2025, is amended to read as follows:
   4.  a.  A person seeking rights under this chapter shall not negotiate or purchase any easements or other interests in land in any county known to be affected by the proposed project prior to the informational meeting.  A person seeking rights under this chapter shall not engage in communication with landowners prior to negotiations without obtaining a landowner’s written consent to the communication, except for an initial contact to seek such written consent.
   b.  A person seeking rights under this chapter may contact landowners within five miles of the project’s proposed route for the purpose of seeking voluntary easements under the same conditions as paragraph “a”.
    Sec. 6.  Section 478.3, Code 2025, is amended by adding the following new subsection:
   NEW SUBSECTION.  4.  An individual, company, or corporation seeking to exercise eminent domain shall submit with the petition a fee set by the commission for purposes of paying the cost of communication between the commission and the landowner.
    Sec. 7.  Section 478.6, subsection 2, Code 2025, is amended to read as follows:
   2.  Where a petition seeks the use of the right of eminent domain over specific parcels of real property, the commission shall prescribe the notice to be served upon the owners of record and parties in possession of the property over which the use of the right of eminent domain is sought. The notice shall include the disclose all of a landowner’s legal rights including but not limited to all of the following:
   a.  The statement of individual rights required pursuant to section 6B.2A, subsection 1.
   b.  The damages a person, company, or corporation with a franchise is liable for under section 478.17A.
   c.  The person, company, or corporation’s obligations relating to land restoration pursuant to section 478.35.
    Sec. 8.  Section 478.15, subsections 1 and 2, Code 2025, are amended to read as follows:
   1.  Any person, company, or corporation having secured a franchise as provided in this chapter, subject to subsection 1A, shall thereupon be vested with the right of eminent domain to such extent as the utilities commission may approve, prescribe, and find to be necessary for public use, not exceeding one hundred feet in width for right-of-way and not exceeding one hundred sixty acres in any one location, in addition to right-of-way, for the location of electric substations to carry out the purposes of said franchise; provided, however, that where two hundred kilovolt lines or higher voltage lines are to be constructed, the person, company, or corporation may apply to the commission for a wider right-of-way not to exceed two hundred feet, and the commission may for good cause extend the width of such right-of-way for such lines to the person, company, or corporation applying for the same. The burden of proving the necessity for public use shall be on the person, company, or corporation seeking the franchise. A homestead site, cemetery, orchard, or schoolhouse location shall not be condemned for the purpose of erecting an electric substation. If agreement cannot be made with the private owner of lands as to damages caused by the construction of said transmission line, or electric substations, the same proceedings shall be taken as provided for taking private property for works of internal improvement.
   2.  Any person, company, or corporation proposing to construct a transmission line or other facility that involves the taking of property under the right of eminent domain and desiring to enter upon the land, which it proposes to appropriate, for the purpose of examining or surveying the same, shall first file with the utilities commission a written statement under oath setting forth the proposed routing of the line or facility including a description of the lands to be crossed, the names and addresses of owners, together with request that a permit be issued by the commission authorizing the person, company, or corporation or its duly appointed representative to enter upon the land for the purpose of examining and surveying and to take and use on the land any vehicle and surveying equipment necessary in making the survey. The commission shall within ten days after the request issue a permit, accompanied by such bond in such amount as the commission shall approve pursuant to subsection 2A, to the person, company, or corporation making the application, if in the commission’s opinion the application is made in good faith and not for the purpose of harassing the owner of the land. If the commission is of the opinion that the application is not made in good faith or made for the purpose of harassment to the owner of the land, the commission shall set the matter for hearing. The matter shall be heard not more than twenty days after filing the application. Notice of the time and place of hearing shall be given by the commission, to the owner of the land by registered mail with a return receipt requested, not less than ten days preceding the date of hearing.
    Sec. 9.  Section 478.15, Code 2025, is amended by adding the following new subsections:
   NEW SUBSECTION.  1A.  The commission shall not grant eminent domain rights to a person, company, or corporation having secured a franchise as provided in this chapter unless at least nine-tenths of the affected parcels and three-quarters of the transmission line, wire, or cable’s total distance have been acquired through voluntary easements. The commission shall not require more than nine-tenths of easements to be voluntary.
   NEW SUBSECTION.  2A.  Before a person, company, or corporation seeking a franchise is granted a franchise under this chapter, the person, company, or corporation must satisfy the commission that the applicant has property within this state other than a transmission line, wire, or cable subject to execution of a value in excess of one million dollars, or the person, company, or corporation must file and maintain with the commission a surety bond in the penal sum of the lesser of one million dollars or one percent of the project value with surety approved by the commission, conditioned that the person, company, or corporation will pay any and all damages legally recovered against it growing out of the construction or operation of its transmission line, wire, or cable in the state of Iowa. When the person, company, or corporation seeking a franchise under this chapter deposits with the commission security satisfactory to the commission as a guaranty for the payment of the damages, or furnishes to the commission satisfactory proofs of its solvency and financial ability to pay the damages, the person, company, or corporation seeking a franchise under this chapter is relieved of the provisions requiring bond.
    Sec. 10.  NEW SECTION.  478.17A  Transmission line operation —— damages.
   1.  Any person, company, or corporation having secured a franchise as provided in this chapter shall be responsible for damages resulting from construction, operation, or maintenance, including damages resulting from an environmental disaster, to local livestock, or other damages attributable to the construction, operation, or maintenance.
   2.  A claim for damage for future crop deficiency within the easement strip shall not be precluded from renegotiation under section 6B.52 on the grounds that it was apparent at the time of settlement. The landowner shall notify the person, company, or corporation seeking the franchise in writing fourteen days prior to harvest in each year to assess crop deficiency or by providing global positioning system yield monitoring data or similar assessment data demonstrating crop deficiency to the company within thirty days of harvest.
    Sec. 11.  NEW SECTION.  478.34  Liability.
   Notwithstanding any provision in this chapter to the contrary, except when a landowner’s actions constitute gross negligence and the landowner commits critical infrastructure sabotage as defined in section 716.11, the landowner shall not be liable for any damages to a transmission line, wire, or cable.
    Sec. 12.  NEW SECTION.  478.35  Land restoration standard.
   1.  The commission, pursuant to chapter 17A, shall adopt rules establishing standards for the restoration of agricultural lands during and after a transmission line, wire, or cable construction. In addition to the requirements of section 17A.4, the commission shall distribute copies of the notice of intended action and opportunity for oral presentations to each county board of supervisors. Any county board of supervisors may, under the provisions of chapter 17A, and subsequent to the rulemaking proceedings, petition under those provisions for additional rulemaking to establish standards for land restoration after a transmission line, wire, or cable construction within that county. Upon the request of the petitioning county, the commission shall schedule a hearing to consider the merits of the petition. Rules adopted under this section shall not apply to land located within city boundaries unless the land is used for agricultural purposes. Rules adopted under this section shall address, but are not limited to, all of the following subject matters:
   a.  Topsoil separation and replacement.
   b.  Temporary and permanent repair to drain tile.
   c.  Removal of rocks and debris from the right-of-way.
   d.  Restoration of areas of soil compaction.
   e.  Restoration of terraces, waterways, and other erosion control structures.
   f.  Revegetation of untilled land.
   g.  Future installation of drain tile or soil conservation structures.
   h.  Restoration of land slope and contour.
   i.  Restoration of areas used for field entrances and temporary roads.
   j.  Construction in wet conditions.
   k.  Designation of a person, company, or corporation seeking a franchise point of contact for landowner inquiries or claims.
   2.  The county board of supervisors shall cause an on-site inspection for compliance with the standards adopted under this section to be performed at any transmission line, wire, or cable construction project in the county. A licensed professional engineer familiar with the standards adopted under this section and registered under chapter 542B shall be responsible for the inspection. A county board of supervisors may contract for the services of a licensed professional engineer for the purposes of the inspection. The reasonable costs of the inspection shall be paid by the person, company, or corporation seeking the franchise.
   3.  If the inspector determines that there has been a violation of the standards adopted under this section, of the land restoration plan, or of an independent agreement on land restoration or line location executed in accordance with subsection 10, the inspector shall give oral notice, followed by written notice, to the person, company, or corporation seeking the franchise and the contractor operating for the person, company, or corporation seeking the franchise and order corrective action to be taken in compliance with the standards. The costs of the corrective action shall be borne by the contractor operating for the person, company, or corporation seeking the franchise.
   4.  An inspector shall adequately inspect underground improvements altered during transmission line, wire, or cable construction. An inspection shall be conducted at the time of the replacement or repair of the underground improvements. An inspector shall be present on the site at all times at each phase and separate activity of the opening of the trench, if applicable, the restoration of underground improvements, and backfilling. The person, company, or corporation seeking the franchise and its contractor shall keep an inspector continually informed of the work schedule and any schedule changes. If proper notice is given, construction shall not be delayed due to an inspector’s failure to be present on the site.
   5.  If the person, company, or corporation seeking the franchise or its contractor does not comply with the requirements of this section, with the land restoration plan or line location, or with an independent agreement on land restoration executed in accordance with subsection 10, the county board of supervisors may petition the commission for an order requiring corrective action to be taken. In addition, the county board of supervisors may file a complaint with the commission seeking imposition of civil penalties under section 478.29.
   6.  The person, company, or corporation seeking the franchise shall allow landowners and the inspector to view the proposed center line of the transmission line, wire, or cable prior to commencing trenching operations to ensure that construction takes place in its proper location.
   7.  An inspector may temporarily halt the construction if the construction is not in compliance with this chapter and the standards adopted pursuant to this chapter, the land restoration plan, or the terms of an independent agreement with the person, company, or corporation seeking the franchise regarding land restoration or line location executed in accordance with subsection 10, until the inspector consults with the supervisory personnel of the person, company, or corporation seeking the franchise.
   8.  The commission shall instruct inspectors appointed by the board of supervisors regarding the content of the statutes and rules and the inspectors’ responsibility to require construction conforming with the standards provided by this chapter.
   9.  A person, company, or corporation having secured a franchise as provided in this chapter shall file with the petition a written land restoration plan showing how the requirements of this section, and of rules adopted pursuant to this section, will be met. The person, company, or corporation seeking the franchise shall provide copies of the plan to all landowners of property that will be disturbed by the construction.
   10.  This section does not preclude the application of provisions for protecting or restoring property that are different than those prescribed in this section, in rules adopted under this section, or in the land restoration plan, if the alternative provisions are contained in agreements independently executed by the person, company, or corporation seeking the franchise and the landowner, and if the alternative provisions are not inconsistent with state law or with rules adopted by the commission. Independent agreements on land restoration or line location between the landowner and person, company, or corporation seeking the franchise shall be in writing and a copy shall be provided to the county inspector.
    Sec. 13.  Section 479.5, subsection 5, Code 2025, is amended to read as follows:
   5.  a.  A pipeline company seeking rights under this chapter shall not negotiate or purchase any easements or other interests in land in any county known to be affected by the proposed project prior to the informational meeting.  A pipeline company seeking rights under this chapter shall not engage in communication with landowners prior to negotiations without obtaining a landowner’s written consent to the communication, except for an initial contact to seek such written consent.
   b.  A person seeking rights under this chapter may contact landowners within five miles of the project’s proposed route for the purpose of seeking voluntary easements under the same conditions as paragraph “a”.
    Sec. 14.  Section 479.7, subsection 2, Code 2025, is amended to read as follows:
   2.  Where a petition seeks the use of the right of eminent domain over specific parcels of real property, the commission shall prescribe the notice to be served upon the owners of record and parties in possession of the property over which the use of the right of eminent domain is sought. The notice shall include the disclose all of a landowner’s legal rights including but not limited to all of the following:
   a.  The statement of individual rights required pursuant to section 6B.2A.
   b.  The costs a pipeline company is liable for under sections 479.25, 479.45, and 479.47.
   c.  The pipeline company’s obligations relating to land restoration pursuant to section 479.29.
    Sec. 15.  Section 479.24, subsection 1, Code 2025, is amended to read as follows:
   1.  A pipeline company granted a pipeline permit under this chapter shall, subject to subsection 3, be vested with the right of eminent domain to the extent necessary and as prescribed and approved by the commission, not exceeding seventy-five feet in width for right-of-way and not exceeding one acre in any one location in addition to right-of-way for the location of pumps, pressure apparatus, or other stations or equipment necessary to the proper operation of its pipeline. The commission may grant additional eminent domain rights where the pipeline company has presented sufficient evidence to adequately demonstrate that a greater area is required for the proper construction, operation, and maintenance of the pipeline or for the location of pumps, pressure apparatus, or other stations or equipment necessary to the proper operation of its pipeline.
    Sec. 16.  Section 479.24, Code 2025, is amended by adding the following new subsections:
   NEW SUBSECTION.  3.  The commission shall not grant eminent domain rights to a pipeline company seeking a permit under this section unless at least nine-tenths of the affected parcels and three-quarters of the pipeline project’s total distance have been acquired through voluntary easements. The commission shall not require more than nine-tenths of easements to be voluntary.
   NEW SUBSECTION.  4.  When constructing on property obtained by eminent domain, a pipeline company must construct its pipeline or underground storage facility at least eight feet underground, unless otherwise negotiated with the landowner.
    Sec. 17.  Section 479.25, Code 2025, is amended to read as follows:
   479.25  Damages.
   1.  A pipeline company operating a pipeline or a gas storage area shall have reasonable access to the pipeline or gas storage area for the purpose of constructing, operating, maintaining, or locating pipes, pumps, pressure apparatus or other stations, wells, devices, or equipment used in or upon the pipeline or gas storage area; shall pay the owner of the land for the right of entry and the owner of crops for all damages caused by entering, using, or occupying the land; and shall pay to the owner all damages caused by the completion of construction of the pipeline due to wash or erosion of the soil at or along the location of the pipeline and due to the settling of the soil along and above the pipeline. However, this section shall not prevent the execution of an agreement between the pipeline company and the owner of land or crops with reference to the use of the land.
   2.  A pipeline company operating a pipeline or a gas storage area shall be responsible for damages resulting from construction, operation, or maintenance, including damages resulting from an environmental disaster, to local livestock, or other damages attributable to the construction, operation, or maintenance.
    Sec. 18.  Section 479.26, Code 2025, is amended to read as follows:
   479.26  Financial condition of permittee —— bond.
   Before any permit is granted under this chapter the applicant must satisfy the commission that the applicant has property within this state other than pipelines, subject to execution of a value in excess of two hundred fifty thousand one million dollars, or the applicant must file and maintain with the commission a surety bond in the penal sum of two hundred fifty thousand the lesser of one million dollars or one percent of the project value with surety approved by the commission, conditioned that the applicant will pay any and all damages legally recovered against it growing out of the construction or operation of its pipeline and gas storage facilities in the state of Iowa. When the pipeline company deposits with the commission security satisfactory to the commission as a guaranty for the payment of the damages, or furnishes to the commission satisfactory proofs of its solvency and financial ability to pay the damages, the pipeline company is relieved of the provisions requiring bond.
    Sec. 19.  NEW SECTION.  479.35  Liability.
   Notwithstanding any provision in this chapter to the contrary, except when a landowner’s actions constitute gross negligence and the landowner commits critical infrastructure sabotage as defined in section 716.11, the landowner shall not be liable for any damages to a pipeline or gas storage area.
    Sec. 20.  Section 479.45, subsection 2, Code 2025, is amended to read as follows:
   2.  A claim for damage for future crop deficiency within the easement strip shall not be precluded from renegotiation under section 6B.52 on the grounds that it was apparent at the time of settlement unless the settlement expressly releases the pipeline company from claims for damage to the productivity of the soil. The landowner shall notify the company in writing fourteen days prior to harvest in each year to assess crop deficiency or by providing global positioning system yield monitoring data or similar assessment data demonstrating crop deficiency to the company within thirty days of harvest.
    Sec. 21.  Section 479B.4, subsection 6, Code 2025, is amended to read as follows:
   6.  a.  A pipeline company seeking rights under this chapter shall not negotiate or purchase an easement or other interest in land in a county known to be affected by the proposed project prior to the informational meeting.  A pipeline company seeking rights under this chapter shall not engage in communication with landowners prior to negotiations without obtaining a landowner’s written consent to the communication, other than an initial contact for the purpose of seeking written consent.
   b.  A person seeking rights under this chapter may contact landowners within five miles of the project’s proposed route for the purpose of seeking voluntary easements under the same conditions as paragraph “a”.
    Sec. 22.  Section 479B.6, Code 2025, is amended by adding the following new subsections:
   NEW SUBSECTION.  3.  Upon the filing of the petition, a pipeline company shall provide notice of such filing served by certified mail to landowners.
   NEW SUBSECTION.  4.  Where a petition seeks the use of the right of eminent domain over specific parcels of real property, the commission shall prescribe the notice to be served upon the owners of record and parties in possession of the property over which the use of the right of eminent domain is sought. The notice shall disclose all of a landowner’s legal rights including but not limited to all of the following:
   a.  The statement of individual rights created pursuant to section 6B.2A.
   b.  The costs a pipeline company is liable for under sections 479B.29 and 479B.31.
   c.  The pipeline company’s obligations relating to land restoration pursuant to section 479B.20.
    Sec. 23.  Section 479B.13, Code 2025, is amended to read as follows:
   479B.13  Financial condition of permittee —— bond.
   Before a permit is granted under this chapter the applicant must satisfy the commission that the applicant has property within this state other than pipelines or underground storage facilities, subject to execution of a value in excess of two hundred fifty thousand one million dollars, or the applicant must file and maintain with the commission a surety bond in the penal sum of two hundred fifty thousand the lesser of one million dollars or one percent of the project value with surety approved by the commission, conditioned that the applicant will pay any and all damages legally recovered against it growing out of the construction, maintenance, or operation of its pipeline or underground storage facilities in this state. When the pipeline company deposits with the commission security satisfactory to the commission as a guaranty for the payment of the damages, or furnishes to the commission satisfactory proofs of its solvency and financial ability to pay the damages, the pipeline company is relieved of the provisions requiring bond.
    Sec. 24.  Section 479B.16, subsection 1, Code 2025, is amended to read as follows:
   1.  A pipeline company granted a pipeline permit shall, subject to subsection 4, be vested with the right of eminent domain, to the extent necessary and as prescribed and approved by the commission, not exceeding seventy-five feet in width for right-of-way and not exceeding one acre in any one location in addition to right-of-way for the location of pumps, pressure apparatus, or other stations or equipment necessary to the proper operation of its pipeline. The commission may grant additional eminent domain rights where the pipeline company has presented sufficient evidence to adequately demonstrate that a greater area is required for the proper construction, operation, and maintenance of the pipeline or for the location of pumps, pressure apparatus, or other stations or equipment necessary to the proper operation of its pipeline.
    Sec. 25.  Section 479B.16, Code 2025, is amended by adding the following new subsections:
   NEW SUBSECTION.  4.  The commission shall not grant eminent domain rights to a pipeline company seeking a permit under this section unless at least nine-tenths of the affected parcels and three-quarters of the pipeline project’s total distance have been acquired through voluntary easements. The commission shall not require more than nine-tenths of easements to be voluntary.
   NEW SUBSECTION.  5.  When constructing on property obtained by eminent domain, a pipeline company must construct its pipeline or underground storage facility at least eight feet underground, unless otherwise negotiated with the landowner.
    Sec. 26.  Section 479B.17, Code 2025, is amended to read as follows:
   479B.17  Damages.
   1.  A pipeline company operating a pipeline or an underground storage facility shall have reasonable access to the pipeline or underground storage facility for the purpose of constructing, operating, maintaining, or locating pipes, pumps, pressure apparatus, or other stations, wells, devices, or equipment used in or upon the pipeline or underground storage facility. A pipeline company shall pay the owner of the land for the right of entry and the owner of crops for all damages caused by entering, using, or occupying the lands and shall pay to the owner all damages caused by the completion of construction of the pipeline due to wash or erosion of the soil at or along the location of the pipeline and due to the settling of the soil along and above the pipeline. However, this section does not prevent the execution of an agreement between the pipeline company and the owner of the land or crops with reference to the use of the land.
   2.  A pipeline company operating a pipeline or an underground storage facility shall be responsible for damages resulting from construction, operation, or maintenance, including damages resulting from an environmental disaster, to local livestock, or other damages attributable to the construction, operation, or maintenance.
    Sec. 27.  Section 479B.29, subsection 2, Code 2025, is amended to read as follows:
   2.  A claim for damage for future crop deficiency within the easement strip shall not be precluded from renegotiation under section 6B.52 on the grounds that it was apparent at the time of settlement unless the settlement expressly releases the pipeline company from claims for damage to the productivity of the soil. The landowner shall notify the pipeline company in writing fourteen days prior to harvest in each year to assess crop deficiency or by providing global positioning system yield monitoring data or similar assessment data demonstrating crop deficiency to the company within thirty days of harvest.
    Sec. 28.  NEW SECTION.  479B.34  Liability.
   Notwithstanding any provision in this chapter to the contrary, except when a landowner’s actions constitute gross negligence and the landowner commits critical infrastructure sabotage as defined in section 716.11, the landowner shall not be liable for any damages to a pipeline or gas storage area.
    Sec. 29.  EFFECTIVE DATE.  This Act, being deemed of immediate importance, takes effect upon enactment.
    Sec. 30.  APPLICABILITY.
   1.  The following apply to applications for a permit submitted pursuant to chapters 478, 479, and 479B prior to, on, or after the effective date of this Act:
   a.  The section of this Act enacting section 478.17A.
   b.  The section of this Act enacting section 478.34.
   c.  The section of this Act amending section 479.25.
   d.  The section of this Act enacting section 479.35.
   e.  The section of this Act amending section 479B.17.
   f.  The section of this Act enacting section 479B.34.
   2.  Remaining sections of this Act apply to applications for a permit submitted pursuant to chapters 476A, 478, 479, and 479B regarding which the first informational meeting for a petition is held on or after the effective date of this Act.
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 applications for permits to construct electric transmission lines, pipelines and underground storage facilities, and hazardous liquid pipelines under the purview of the Iowa utilities commission (commission).
   The bill excludes the construction of pipelines, roads, electric transmission lines, or internet cables other than within a city or village from the definition of a public use, public purpose, or public improvement for purposes of eminent domain.
   The bill requires an acquiring agency to notify a landowner of the landowner’s rights in each purchase offer and creates a cause of action for a landowner when an acquiring agency fails to negotiate in good faith.
   The bill modifies eminent domain rights for matters under Code chapters 476A (electric power generation and transmission), 478 (electric transmission lines), 479 (pipelines and underground gas storage), and 479B (hazardous liquid pipelines and storage facilities). The bill requires landowner communication consent, specified surety bond amounts, liability, notice, and damage provisions for permits under the respective Code sections.
   The bill prohibits the commission from granting eminent domain rights to an entity seeking those rights under Code chapters 476A, 478, 479, and 479B unless at least nine-tenths of the affected parcels and three-quarters of the area of the proposed project are first acquired through voluntary easements. The commission is prohibited from requiring more than 90 percent of the easements to be voluntary.
   The bill requires a person or entity granted a franchise for an electric transmission line to pay a fee established by the commission to cover the costs of the commission’s communications with landowners.
   The bill requires the commission to notify a landowner of the landowner’s rights when an electric transmission line, pipeline, underground storage facility, or hazardous liquid pipeline seeks to exercise eminent domain.
   The bill requires a person, company, or corporation seeking a franchise under Code chapter 478 to satisfy a bond amount with the commission. The franchise must satisfy the commission that the franchisee has property in the state of a value over $1 million (not including the value of the proposed project) or file and maintain with the commission a surety bond of $1 million or 1 percent of the project value with surety approved by the commission, conditioned that the franchisee will pay any and all damages legally recovered against it growing out of the construction or operation of the project in the state. When a franchisee deposits security satisfactory to the commission as a guaranty for the payment of the damages or furnishes to the commission satisfactory proofs of its solvency and financial ability to pay the damages, the franchisee shall be relieved of the provisions requiring bond.
   The bill prohibits persons seeking rights to construct projects under Code chapter 478, 479, or 479B from contacting landowners regarding negotiations for land acquisition without first obtaining the landowner’s written consent allowing communication, other than an initial contact to seek such written consent. The bill allows persons seeking rights to construct such projects to contact landowners within five miles of the project’s proposed route for the purpose of obtaining a voluntary easement.
   The bill adds provisions to Code chapters 478, 479, and 479B requiring a person seeking to construct projects under those chapters to be held liable for damages resulting from construction, operation, or maintenance, including damages resulting from an environmental disaster, to local livestock, or other damages attributable to the construction, operation, or maintenance.
   The bill requires pipeline companies constructing on property obtained by eminent domain under Code chapter 479 or 479B to build their projects at least eight feet underground, unless otherwise negotiated with the landowner.
   The bill provides that a claim for damages related to future crop deficiency within an easement strip under Code chapter 478 shall not be precluded from renegotiation under Code section 6B.52 relating to eminent domain procedure for the renegotiation of damages. The landowner shall notify the franchisee in writing 14 days prior to harvest in each year to assess crop deficiency or by providing global positioning system yield monitoring data or similar assessment data demonstrating crop deficiency to the company within 30 days of harvest. The bill modifies claims for future crop deficiency damages pursuant to Code chapters 479 and 479B to allow a landowner to notify a company in writing by providing global positioning system yield monitoring data or similar assessment data demonstrating crop deficiency to the company within 30 days of harvest, and strikes language providing that a settlement may expressly release a company from soil productivity damage claims.
   The bill creates new provisions relating to landowner liability in Code chapters 478, 479, and 479B. The bill provides that except when a landowner’s actions constitute gross negligence and the landowner commits critical infrastructure sabotage as defined in Code section 716.11 (relating to critical infrastructure sabotage definitions), the landowner shall not be liable for any damages to a project permitted under Code chapters 478, 479, and 479B.
   The bill includes provisions relating to land restoration standards. The bill adds a land restoration section in Code chapter 478 that mirrors land restoration standards in Code chapters 479 and 479B. The new Code section includes requirements that the commission adopt rules related to the restoration of agricultural lands during and after transmission line, wire, or cable construction and distribute notice of intended actions to county boards of supervisors. Rules shall include subject matters relating to topsoil, temporary, permanent, and future drain tile issues, removal of rocks and debris, soil compaction, terraces, waterways, and other erosion control structures, revegetation, restoration of land slope and contour, restoration of field entrance and temporary road areas, construction in wet conditions, and designation of a franchisee point of contact.
   The bill provides that a county board of supervisors may require an on-site compliance inspection at any time to be performed by a specialized licensed professional engineer. The reasonable costs of the inspection shall be paid by the franchisee. Notice of a violation relating to provisions regarding land restoration, the land restoration plan created by the franchisee and submitted to the commission, or of an independent agreement shall be given to the franchisee or a contractor for the franchisee. Corrective action shall be taken by the franchisee and the costs of the corrective action shall be borne by the contractor of the franchisee.
   The bill provides that a franchisee shall file a written land restoration plan with their petition. The franchisee shall provide copies of the plan to all landowners of property that will be disturbed by the construction. The bill does not preclude additional means of land protection or restoration in addition to the plan, rules regarding the plan, or other written agreements.
   The bill provides that an inspector shall adequately inspect underground improvements altered during transmission line, wire, or cable construction, and the inspection shall be conducted at the time of the replacement or repair of the underground improvements. Additionally, an inspector shall be present on-site at all times and the franchisee and its contractor shall keep an inspector continually informed of the work schedule and any schedule changes. The county board of supervisors may petition the commission for an order requiring corrective action to be taken when the franchisee or its contractor is in noncompliance. In addition, the county board of supervisors may file a complaint with the commission seeking imposition of civil penalties of not more than $100 per violation or $1,000 per day of a continuing violation, whichever is greater, under Code section 478.29.
   The bill provides that a franchisee shall allow landowners and the inspector to view the proposed center line of the transmission line, wire, or cable prior to commencing trenching operations to ensure that construction takes place in its proper location, and an inspector may temporarily halt the construction for noncompliance until the inspector consults with the supervisory personnel of the franchisee. The commission shall instruct appointed inspectors of the content of the statutes and rules and the inspectors’ responsibility to require compliant construction.
   The bill modifies surety bond amounts for projects constructed pursuant to Code chapters 479 and 479B. The bill changes the amount that an applicant for a permit shall demonstrate in property value in Iowa (other than pipelines) to more than $1 million rather than $250,000. The applicant may instead file and maintain with the commission a surety bond of $1 million or 1 percent of the project value, whichever is lesser, rather than a surety bond of $250,000.
   The bill is effective upon enactment and includes applicability provisions. The bill applies to an application for a permit pursuant to Code chapters 476A, 478, 479, and 479B when the first informational meeting for a petition is held on or after the effective date of the bill, except when otherwise provided. For sections of the bill relating to liability regarding a landowner’s gross negligence and critical infrastructure sabotage and sections of the bill regarding petitioner responsibility for damages under Code chapters 478, 479, and 479B, the bill shall apply retroactively to all applications for a permit under those Code chapters.