House File 639 - Reprinted HOUSE FILE 639 BY COMMITTEE ON JUDICIARY (SUCCESSOR TO HF 240) (COMPANION TO SF 239 BY SALMON) (As Amended and Passed by the House March 26, 2025 ) A BILL FOR An Act relating to hazardous liquid pipelines, including common 1 carrier requirements, proceedings under the Iowa utilities 2 commission, including commission member attendance at 3 hearings and informational meetings, including allowing 4 certain persons to intervene in such proceedings, including 5 sanctions on intervenors in contested cases, and permit, 6 permit renewal, and operation limitations, and including 7 effective date and applicability provisions. 8 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 9 HF 639 (3) 91 sb/js/md

H.F. 639 Section 1. Section 6A.21, subsection 1, Code 2025, is 1 amended to read as follows: 2 1. Except as otherwise provided, for purposes of this 3 chapter and chapter 6B : 4 a. “Aboveground merchant line” means “merchant line” as 5 defined in section 478.6A, subsection 1 , excluding those 6 merchant lines that are underground. 7 b. “Agricultural land” means real property owned by a person 8 in tracts of ten acres or more and not laid off into lots of 9 less than ten acres or divided by streets and alleys into 10 parcels of less than ten acres, and that has been used for 11 the production of agricultural commodities during three out 12 of the past five years. Such use of property includes, but 13 is not limited to, the raising, harvesting, handling, drying, 14 or storage of crops used for feed, food, seed, or fiber; the 15 care or feeding of livestock; the handling or transportation 16 of crops or livestock; the storage, treatment, or disposal 17 of livestock manure; and the application of fertilizers, 18 soil conditioners, pesticides, and herbicides on crops. 19 Agricultural land includes land on which is located farm 20 residences or outbuildings used for agricultural purposes and 21 land on which is located facilities, structures, or equipment 22 for agricultural purposes. Agricultural land includes 23 land taken out of agricultural production for purposes of 24 environmental protection or preservation. 25 c. “Commodity” means a product that is used by an individual 26 consumer or is used to produce a product used by an individual 27 consumer. 28 d. “Common carrier” means a commercial enterprise that holds 29 itself out as ready to engage in the transportation of goods 30 or passengers for hire, as a public employment, and not as a 31 casual occupation, and that undertakes to carry for all persons 32 indifferently, within the limits of the enterprise’s capacity 33 and the sphere of business required of it. For a carrier 34 engaged in the transportation of a hazardous liquid to qualify 35 -1- HF 639 (3) 91 sb/js/md 1/ 7

H.F. 639 as a common carrier, the carrier must establish by clear and 1 convincing evidence that it will transport a commodity for 2 one or more shippers not affiliated with the carrier who 3 will either retain ownership of the commodity or sell the 4 commodity to a party other than the carrier. A common carrier 5 determination by the federal energy regulatory commission shall 6 be controlling for purposes of this paragraph. 7 c. e. “Private development purposes” means the 8 construction of, or improvement related to, recreational 9 trails, recreational development paid for primarily with 10 private funds, aboveground merchant lines, housing and 11 residential development, or commercial or industrial enterprise 12 development. 13 d. f. “Public use” or “public purpose” or “public 14 improvement” does not include the authority to condemn 15 agricultural land for private development purposes unless the 16 owner of the agricultural land consents to the condemnation. 17 Sec. 2. Section 6A.24, Code 2025, is amended by adding the 18 following new subsection: 19 NEW SUBSECTION . 4. Notwithstanding subsection 3, an 20 acquiring agency proposing to acquire property by eminent 21 domain pursuant to a grant under chapter 479B shall have the 22 burden of establishing by clear and convincing evidence that 23 the proposed use meets the definition of a public use, public 24 purpose, or public improvement. 25 Sec. 3. Section 476.33, Code 2025, is amended by adding the 26 following new subsection: 27 NEW SUBSECTION . 5. For hearings initiated under this 28 chapter, all members of the commission shall be present during 29 any live testimony. If at any point during live testimony at 30 a hearing not all members are available for any reason, the 31 meeting shall pause until all members of the commission return. 32 Sec. 4. Section 478.2, subsection 2, paragraph a, Code 2025, 33 is amended to read as follows: 34 a. A member of the commission, the counsel of the 35 -2- HF 639 (3) 91 sb/js/md 2/ 7

H.F. 639 commission, or a presiding officer designated by the commission 1 shall serve as the presiding officer at each meeting, shall 2 present an agenda for such meeting , which shall include 3 a summary of the legal rights of the affected landowners, 4 and shall distribute and review the statement of individual 5 rights required under section 6B.2A, subsection 1 . At least 6 one member of the commission shall attend each informational 7 meeting. If at any point during the meeting no member of the 8 commission is available for any reason, the meeting shall pause 9 until at least one member of the commission returns. A formal 10 record of the meeting shall not be required. 11 Sec. 5. NEW SECTION . 478.34 Hearing —— commission member 12 attendance. 13 All hearings initiated under this chapter shall follow the 14 attendance rules governing commission members as provided in 15 section 476.33, subsection 5. 16 Sec. 6. Section 479.5, subsection 3, paragraph a, Code 2025, 17 is amended to read as follows: 18 a. A pipeline company shall hold informational meetings 19 in each county in which real property or property rights will 20 be affected at least thirty days prior to filing the petition 21 for a new pipeline. A member of the commission or a person 22 designated by the commission shall serve as the presiding 23 officer at each meeting, shall present an agenda for the 24 meeting , which shall include a summary of the legal rights 25 of the affected landowners, and shall distribute and review 26 the statement of individual rights required under section 27 6B.2A . At least one member of the commission shall attend each 28 informational meeting. If at any point during the meeting 29 no member of the commission is available for any reason, the 30 meeting shall pause until at least one member of the commission 31 returns. A formal record of the meeting shall not be required. 32 Sec. 7. NEW SECTION . 479.50 Hearing —— commission member 33 attendance. 34 All hearings initiated under this chapter shall follow the 35 -3- HF 639 (3) 91 sb/js/md 3/ 7

H.F. 639 attendance rules governing commission members as provided in 1 section 476.33, subsection 5. 2 Sec. 8. Section 479B.4, subsection 3, Code 2025, is amended 3 to read as follows: 4 3. The pipeline company shall hold informational meetings 5 in each county in which real property or property rights will 6 be affected at least thirty days prior to filing the petition 7 for a new pipeline. A member of the commission, or a person 8 designated by the commission, shall serve as the presiding 9 officer at each meeting and present an agenda for the meeting , 10 which shall include a summary of the legal rights of the 11 affected landowners. At least one member of the commission 12 shall attend each informational meeting. If at any point 13 during the meeting no member of the commission is available for 14 any reason, the meeting shall pause until at least one member 15 of the commission returns. No formal record of the meeting 16 shall be required. The meeting shall be held at a location 17 reasonably accessible to all persons who may be affected by 18 granting the permit. 19 Sec. 9. Section 476.33, Code 2025, is amended by adding the 20 following new subsection: 21 NEW SUBSECTION . 5. The following persons are entitled 22 as of right to intervene in any proceeding conducted by the 23 commission: 24 a. A member of the general assembly. 25 b. An elected county or city official. 26 c. Any resident with a minimally plausible interest in the 27 proceeding. 28 Sec. 10. Section 474.3, Code 2025, is amended to read as 29 follows: 30 474.3 Proceedings. 31 1. The utilities commission may in all cases conduct its 32 proceedings, when not otherwise prescribed by law, in such 33 manner as will best conduce to the proper dispatch of business 34 and the attainment of justice. 35 -4- HF 639 (3) 91 sb/js/md 4/ 7

H.F. 639 2. The utilities commission shall not threaten or impose 1 sanctions against any intervenor unless the utilities 2 commission determines the intervenor engaged in conduct that 3 satisfies all the following conditions: 4 a. The intervenor was knowingly dishonest or in violation 5 of a criminal statute. 6 b. The intervenor caused actual injury to the utilities 7 commission, which injury is quantifiable and exceeds five 8 hundred dollars. 9 Sec. 11. NEW SECTION . 479B.13A Insurance requirements for 10 permittee. 11 1. In addition to the requirements of section 479B.13, 12 before a permit is granted under this chapter, the applicant 13 shall provide to the commission evidence of an appropriate 14 surety or insurance policy to ensure the payment of all damages 15 resulting from the construction and operation of the hazardous 16 liquid pipeline. The surety or insurance policy must be 17 sufficient to indemnify fully all of the following: 18 a. Any loss arising from or related to any negligent or 19 intentional discharge of content from the pipeline. 20 b. Any injury, including diminution of value of real 21 property, to affected properties due to the construction of the 22 pipeline or the accidental or intentional discharge of content. 23 c. The inability for a person to obtain insurance, or the 24 increased costs for a person to obtain or renew insurance, due 25 to the presence or construction of the pipeline. 26 2. If any person is unable to obtain insurance, or 27 experiences increased costs to obtain or renew insurance, as 28 a result of the presence or construction of the pipeline, the 29 pipeline owner shall either purchase insurance on behalf of 30 the person or reimburse the person for the person’s increased 31 premium costs. 32 Sec. 12. Section 479B.16, subsection 1, Code 2025, is 33 amended to read as follows: 34 1. A pipeline company granted a pipeline permit shall , 35 -5- HF 639 (3) 91 sb/js/md 5/ 7

H.F. 639 subject to subsection 4, be vested with the right of eminent 1 domain, to the extent necessary and as prescribed and approved 2 by the commission, not exceeding seventy-five feet in width for 3 right-of-way and not exceeding one acre in any one location in 4 addition to right-of-way for the location of pumps, pressure 5 apparatus, or other stations or equipment necessary to the 6 proper operation of its pipeline. The commission may grant 7 additional eminent domain rights where when the pipeline 8 company has presented sufficient evidence to adequately 9 demonstrate that a greater area is required for the proper 10 construction, operation, and maintenance of the pipeline or for 11 the location of pumps, pressure apparatus, or other stations or 12 equipment necessary to the proper operation of its pipeline. 13 Sec. 13. Section 479B.16, Code 2025, is amended by adding 14 the following new subsection: 15 NEW SUBSECTION . 4. A pipeline company granted a pipeline 16 permit shall not be vested with the right of eminent domain 17 unless the pipeline company is a common carrier, as defined in 18 section 6A.21. 19 Sec. 14. NEW SECTION . 479B.34 Hearing —— commission member 20 attendance. 21 All hearings initiated under this chapter shall follow the 22 attendance rules governing commission members as provided in 23 section 476.33, subsection 5. 24 Sec. 15. Section 479B.14, subsection 2, Code 2025, is 25 amended to read as follows: 26 2. The commission shall not grant an exclusive right to 27 any pipeline company to construct, maintain, or operate its 28 pipeline along, over, or across any public or private highway, 29 grounds, waters, or streams. The commission shall not grant 30 a permit for longer than twenty-five years. The commission 31 shall not renew a permit granted to a pipeline that transports 32 liquefied carbon dioxide and no pipeline that transports 33 liquefied carbon dioxide shall be permitted to operate for 34 longer than twenty-five years. 35 -6- HF 639 (3) 91 sb/js/md 6/ 7