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Senate Study Bill 1166 - IntroducedA Bill ForAn Act 1relating to applications for permits to construct
2electric transmission lines, pipelines and underground
3storage facilities, and hazardous liquid pipelines,
4making penalties applicable, providing fees, and including
5effective date and applicability provisions.
6BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
1 Section 1. Section 6A.22, subsection 2, paragraph b, Code
22025, is amended to read as follows:
3b. Except as specifically included in the definition in
4paragraph “a”, “public use” or “public purpose” or “public
5improvement” does not mean the construction of pipelines, roads,
6electric transmission lines, or internet cables, except within
7a city or village, or economic development activities resulting
8in increased tax revenues, increased employment opportunities,
9privately owned or privately funded housing and residential
10development, privately owned or privately funded commercial or
11industrial development, or the lease of publicly owned property
12to a private party.
13 Sec. 2. Section 6B.2B, Code 2025, is amended to read as
14follows:
156B.2B Acquisition negotiation.
161. The acquiring agency shall make a good faith effort to
17negotiate with the owner to purchase the private property or
18property interest before filing an application for condemnation
19or otherwise proceeding with the condemnation process. A
20landowner shall have the right to bring a cause of action
21against an acquiring agency who fails to negotiate in good
22faith. An acquiring agency shall not make an offer to purchase
23the property or property interest that is less than the
24fair market value the acquiring agency has established for
25the property or property interest pursuant to the appraisal
26required in section 6B.45 or less than the value determined
27under the acquiring agency’s waiver procedure established
28pursuant to section 6B.54, subsection 2, for acquisition of
29property with a low fair market value. A purchase offer made
30by an acquiring agency shall include provisions for payment
31to the owner of expenses, including relocation expenses,
32expenses listed in section 6B.54, subsection 10, and other
33expenses required by law to be paid by an acquiring agency to a
34condemnee. However, in the alternative, the acquiring agency
35may make, and the owner may accept, a purchase offer from the
-1-1acquiring agency that is an amount equal to one hundred thirty
2percent of the appraisal amount plus payment to the owner of
3expenses listed in section 6B.54, subsection 10, once those
4expenses have been determined. If the owner accepts such a
5purchase offer, the owner is barred from claiming payment
6from the acquiring agency for any other expenses allowed by
7law. An acquiring agency need not make an offer in excess of
8the amounts described in this section in order to satisfy the
9requirement to negotiate in good faith. The option to make
10an alternative purchase offer does not apply when property is
11being acquired for street and highway projects undertaken by
12the state, a county, or a city.
132. An acquiring agency shall disclose all of a landowner’s
14legal rights in each purchase offer, including but not limited
15to all of the following:
16a. The statement of individual rights created pursuant to
17section 6B.2A.
18b. The damages and costs for which the acquiring agency is
19liable.
20c. The acquiring agency’s obligations relating to land
21restoration.
22 Sec. 3. Section 476A.7, subsection 1, Code 2025, is amended
23to read as follows:
241. Issuance of a certificate by the commission authorizes
25all of the following:
26a. Authorizes The construction of the facility on the
27site designated in the certificate according to the terms and
28conditions stated in the certificate and licenses and permits
29issued by regulatory agencies during the proceeding; and,.
30b. Gives the applicant The use of the power of eminent
31domain by the applicant to the extent and under such conditions
32as the commission may approve, prescribe, and find necessary
33for the public convenience, use, and necessity, subject to
34subsection 4, proceeding in the manner of works of internal
35improvement under chapter 6B. The burden of proving the
-2-1necessity for the exercise of the power of eminent domain shall
2be on the person issued the certificate.
3 Sec. 4. Section 476A.7, Code 2025, is amended by adding the
4following new subsection:
5 NEW SUBSECTION. 4. The commission shall not grant eminent
6domain rights to a person, company, or corporation having
7secured a certificate as provided in this chapter unless at
8least nine-tenths of the affected parcels and three-quarters of
9the total distance of the facility have been acquired through
10voluntary easements. The commission shall not require more
11than nine-tenths of easements to be voluntary.
12 Sec. 5. Section 478.2, subsection 4, Code 2025, is amended
13to read as follows:
144. a. A person seeking rights under this chapter shall
15not negotiate or purchase any easements or other interests
16in land in any county known to be affected by the proposed
17project prior to the informational meeting. A person seeking
18rights under this chapter shall not engage in communication
19with landowners prior to negotiations without obtaining a
20landowner’s written consent to the communication, except for an
21initial contact to seek such written consent.
22b. A person seeking rights under this chapter may contact
23landowners within five miles of the project’s proposed route
24for the purpose of seeking voluntary easements under the same
25conditions as paragraph “a”.
26 Sec. 6. Section 478.3, Code 2025, is amended by adding the
27following new subsection:
28 NEW SUBSECTION. 4. An individual, company, or corporation
29seeking to exercise eminent domain shall submit with the
30petition a fee set by the commission for purposes of paying the
31cost of communication between the commission and the landowner.
32 Sec. 7. Section 478.6, subsection 2, Code 2025, is amended
33to read as follows:
342. Where a petition seeks the use of the right of eminent
35domain over specific parcels of real property, the commission
-3-1shall prescribe the notice to be served upon the owners of
2record and parties in possession of the property over which
3the use of the right of eminent domain is sought. The notice
4shall include the disclose all of a landowner’s legal rights
5including but not limited to all of the following:
6a. Thestatement of individual rights required pursuant to
7section 6B.2A, subsection 1.
8b. The damages a person, company, or corporation with a
9franchise is liable for under section 478.17A.
10c. The person, company, or corporation’s obligations
11relating to land restoration pursuant to section 478.35.
12 Sec. 8. Section 478.15, subsections 1 and 2, Code 2025, are
13amended to read as follows:
141. Any person, company, or corporation having secured a
15franchise as provided in this chapter, subject to subsection
161A, shall thereupon be vested with the right of eminent
17domain to such extent as the utilities commission may approve,
18prescribe, and find to be necessary for public use, not
19exceeding one hundred feet in width for right-of-way and
20not exceeding one hundred sixty acres in any one location,
21in addition to right-of-way, for the location of electric
22substations to carry out the purposes of said franchise;
23provided, however, that where two hundred kilovolt lines
24or higher voltage lines are to be constructed, the person,
25company, or corporation may apply to the commission for a wider
26right-of-way not to exceed two hundred feet, and the commission
27may for good cause extend the width of such right-of-way for
28such lines to the person, company, or corporation applying for
29the same. The burden of proving the necessity for public use
30shall be on the person, company, or corporation seeking the
31franchise. A homestead site, cemetery, orchard, or schoolhouse
32location shall not be condemned for the purpose of erecting
33an electric substation. If agreement cannot be made with the
34private owner of lands as to damages caused by the construction
35of said transmission line, or electric substations, the same
-4-1proceedings shall be taken as provided for taking private
2property for works of internal improvement.
32. Any person, company, or corporation proposing to
4construct a transmission line or other facility that involves
5the taking of property under the right of eminent domain
6and desiring to enter upon the land, which it proposes to
7appropriate, for the purpose of examining or surveying the
8same, shall first file with the utilities commission a written
9statement under oath setting forth the proposed routing of
10the line or facility including a description of the lands to
11be crossed, the names and addresses of owners, together with
12request that a permit be issued by the commission authorizing
13the person, company, or corporation or its duly appointed
14representative to enter upon the land for the purpose of
15examining and surveying and to take and use on the land any
16vehicle and surveying equipment necessary in making the survey.
17The commission shall within ten days after the request issue
18a permit, accompanied by such bond in such amount as the
19commission shall approve pursuant to subsection 2A, to the
20person, company, or corporation making the application, if in
21the commission’s opinion the application is made in good faith
22and not for the purpose of harassing the owner of the land. If
23the commission is of the opinion that the application is not
24made in good faith or made for the purpose of harassment to
25the owner of the land, the commission shall set the matter for
26hearing. The matter shall be heard not more than twenty days
27after filing the application. Notice of the time and place of
28hearing shall be given by the commission, to the owner of the
29land by registered mail with a return receipt requested, not
30less than ten days preceding the date of hearing.
31 Sec. 9. Section 478.15, Code 2025, is amended by adding the
32following new subsections:
33 NEW SUBSECTION. 1A. The commission shall not grant eminent
34domain rights to a person, company, or corporation having
35secured a franchise as provided in this chapter unless at least
-5-1nine-tenths of the affected parcels and three-quarters of the
2transmission line, wire, or cable’s total distance have been
3acquired through voluntary easements. The commission shall not
4require more than nine-tenths of easements to be voluntary.
5 NEW SUBSECTION. 2A. Before a person, company, or
6corporation seeking a franchise is granted a franchise under
7this chapter, the person, company, or corporation must satisfy
8the commission that the applicant has property within this
9state other than a transmission line, wire, or cable subject
10to execution of a value in excess of one million dollars, or
11the person, company, or corporation must file and maintain with
12the commission a surety bond in the penal sum of the lesser
13of one million dollars or one percent of the project value
14with surety approved by the commission, conditioned that the
15person, company, or corporation will pay any and all damages
16legally recovered against it growing out of the construction or
17operation of its transmission line, wire, or cable in the state
18of Iowa. When the person, company, or corporation seeking
19a franchise under this chapter deposits with the commission
20security satisfactory to the commission as a guaranty for
21the payment of the damages, or furnishes to the commission
22satisfactory proofs of its solvency and financial ability to
23pay the damages, the person, company, or corporation seeking
24a franchise under this chapter is relieved of the provisions
25requiring bond.
26 Sec. 10. NEW SECTION. 478.17A Transmission line operation
27— damages.
281. Any person, company, or corporation having secured a
29franchise as provided in this chapter shall be responsible for
30damages resulting from construction, operation, or maintenance,
31including damages resulting from an environmental disaster,
32to local livestock, or other damages attributable to the
33construction, operation, or maintenance.
342. A claim for damage for future crop deficiency within the
35easement strip shall not be precluded from renegotiation under
-6-1section 6B.52 on the grounds that it was apparent at the time
2of settlement. The landowner shall notify the person, company,
3or corporation seeking the franchise in writing fourteen days
4prior to harvest in each year to assess crop deficiency or by
5providing global positioning system yield monitoring data or
6similar assessment data demonstrating crop deficiency to the
7company within thirty days of harvest.
8 Sec. 11. NEW SECTION. 478.34 Liability.
9Notwithstanding any provision in this chapter to the
10contrary, except when a landowner’s actions constitute gross
11negligence and the landowner commits critical infrastructure
12sabotage as defined in section 716.11, the landowner shall not
13be liable for any damages to a transmission line, wire, or
14cable.
15 Sec. 12. NEW SECTION. 478.35 Land restoration standard.
161. The commission, pursuant to chapter 17A, shall
17adopt rules establishing standards for the restoration of
18agricultural lands during and after a transmission line,
19wire, or cable construction. In addition to the requirements
20of section 17A.4, the commission shall distribute copies
21of the notice of intended action and opportunity for oral
22presentations to each county board of supervisors. Any county
23board of supervisors may, under the provisions of chapter
2417A, and subsequent to the rulemaking proceedings, petition
25under those provisions for additional rulemaking to establish
26standards for land restoration after a transmission line, wire,
27or cable construction within that county. Upon the request
28of the petitioning county, the commission shall schedule a
29hearing to consider the merits of the petition. Rules adopted
30under this section shall not apply to land located within city
31boundaries unless the land is used for agricultural purposes.
32Rules adopted under this section shall address, but are not
33limited to, all of the following subject matters:
34a. Topsoil separation and replacement.
35b. Temporary and permanent repair to drain tile.
-7- 1c. Removal of rocks and debris from the right-of-way.
2d. Restoration of areas of soil compaction.
3e. Restoration of terraces, waterways, and other erosion
4control structures.
5f. Revegetation of untilled land.
6g. Future installation of drain tile or soil conservation
7structures.
8h. Restoration of land slope and contour.
9i. Restoration of areas used for field entrances and
10temporary roads.
11j. Construction in wet conditions.
12k. Designation of a person, company, or corporation seeking
13a franchise point of contact for landowner inquiries or claims.
142. The county board of supervisors shall cause an on-site
15inspection for compliance with the standards adopted under
16this section to be performed at any transmission line, wire,
17or cable construction project in the county. A licensed
18professional engineer familiar with the standards adopted
19under this section and registered under chapter 542B shall be
20responsible for the inspection. A county board of supervisors
21may contract for the services of a licensed professional
22engineer for the purposes of the inspection. The reasonable
23costs of the inspection shall be paid by the person, company,
24or corporation seeking the franchise.
253. If the inspector determines that there has been a
26violation of the standards adopted under this section, of
27the land restoration plan, or of an independent agreement on
28land restoration or line location executed in accordance with
29subsection 10, the inspector shall give oral notice, followed
30by written notice, to the person, company, or corporation
31seeking the franchise and the contractor operating for the
32person, company, or corporation seeking the franchise and order
33corrective action to be taken in compliance with the standards.
34The costs of the corrective action shall be borne by the
35contractor operating for the person, company, or corporation
-8-1seeking the franchise.
24. An inspector shall adequately inspect underground
3improvements altered during transmission line, wire, or cable
4construction. An inspection shall be conducted at the time of
5the replacement or repair of the underground improvements. An
6inspector shall be present on the site at all times at each
7phase and separate activity of the opening of the trench, if
8applicable, the restoration of underground improvements, and
9backfilling. The person, company, or corporation seeking
10the franchise and its contractor shall keep an inspector
11continually informed of the work schedule and any schedule
12changes. If proper notice is given, construction shall not
13be delayed due to an inspector’s failure to be present on the
14site.
155. If the person, company, or corporation seeking
16the franchise or its contractor does not comply with the
17requirements of this section, with the land restoration plan
18or line location, or with an independent agreement on land
19restoration executed in accordance with subsection 10, the
20county board of supervisors may petition the commission for an
21order requiring corrective action to be taken. In addition,
22the county board of supervisors may file a complaint with the
23commission seeking imposition of civil penalties under section
24478.29.
256. The person, company, or corporation seeking the
26franchise shall allow landowners and the inspector to view
27the proposed center line of the transmission line, wire, or
28cable prior to commencing trenching operations to ensure that
29construction takes place in its proper location.
307. An inspector may temporarily halt the construction
31if the construction is not in compliance with this chapter
32and the standards adopted pursuant to this chapter, the land
33restoration plan, or the terms of an independent agreement
34with the person, company, or corporation seeking the franchise
35regarding land restoration or line location executed in
-9-1accordance with subsection 10, until the inspector consults
2with the supervisory personnel of the person, company, or
3corporation seeking the franchise.
48. The commission shall instruct inspectors appointed by
5the board of supervisors regarding the content of the statutes
6and rules and the inspectors’ responsibility to require
7construction conforming with the standards provided by this
8chapter.
99. A person, company, or corporation having secured a
10franchise as provided in this chapter shall file with the
11petition a written land restoration plan showing how the
12requirements of this section, and of rules adopted pursuant to
13this section, will be met. The person, company, or corporation
14seeking the franchise shall provide copies of the plan to
15all landowners of property that will be disturbed by the
16construction.
1710. This section does not preclude the application of
18provisions for protecting or restoring property that are
19different than those prescribed in this section, in rules
20adopted under this section, or in the land restoration plan,
21if the alternative provisions are contained in agreements
22independently executed by the person, company, or corporation
23seeking the franchise and the landowner, and if the alternative
24provisions are not inconsistent with state law or with rules
25adopted by the commission. Independent agreements on land
26restoration or line location between the landowner and person,
27company, or corporation seeking the franchise shall be in
28writing and a copy shall be provided to the county inspector.
29 Sec. 13. Section 479.5, subsection 5, Code 2025, is amended
30to read as follows:
315. a. A pipeline company seeking rights under this
32chapter shall not negotiate or purchase any easements or
33other interests in land in any county known to be affected by
34the proposed project prior to the informational meeting. A
35pipeline company seeking rights under this chapter shall not
-10-1engage in communication with landowners prior to negotiations
2without obtaining a landowner’s written consent to the
3communication, except for an initial contact to seek such
4written consent.
5b. A person seeking rights under this chapter may contact
6landowners within five miles of the project’s proposed route
7for the purpose of seeking voluntary easements under the same
8conditions as paragraph “a”.
9 Sec. 14. Section 479.7, subsection 2, Code 2025, is amended
10to read as follows:
112. Where a petition seeks the use of the right of eminent
12domain over specific parcels of real property, the commission
13shall prescribe the notice to be served upon the owners of
14record and parties in possession of the property over which
15the use of the right of eminent domain is sought. The notice
16shall include the disclose all of a landowner’s legal rights
17including but not limited to all of the following:
18a. Thestatement of individual rights required pursuant to
19section 6B.2A.
20b. The costs a pipeline company is liable for under sections
21479.25, 479.45, and 479.47.
22c. The pipeline company’s obligations relating to land
23restoration pursuant to section 479.29.
24 Sec. 15. Section 479.24, subsection 1, Code 2025, is amended
25to read as follows:
261. A pipeline company granted a pipeline permit under
27this chapter shall, subject to subsection 3, be vested with
28the right of eminent domain to the extent necessary and as
29prescribed and approved by the commission, not exceeding
30seventy-five feet in width for right-of-way and not exceeding
31one acre in any one location in addition to right-of-way for
32the location of pumps, pressure apparatus, or other stations or
33equipment necessary to the proper operation of its pipeline.
34The commission may grant additional eminent domain rights where
35the pipeline company has presented sufficient evidence to
-11-1adequately demonstrate that a greater area is required for the
2proper construction, operation, and maintenance of the pipeline
3or for the location of pumps, pressure apparatus, or other
4stations or equipment necessary to the proper operation of its
5pipeline.
6 Sec. 16. Section 479.24, Code 2025, is amended by adding the
7following new subsections:
8 NEW SUBSECTION. 3. The commission shall not grant eminent
9domain rights to a pipeline company seeking a permit under this
10section unless at least nine-tenths of the affected parcels
11and three-quarters of the pipeline project’s total distance
12have been acquired through voluntary easements. The commission
13shall not require more than nine-tenths of easements to be
14voluntary.
15 NEW SUBSECTION. 4. When constructing on property obtained
16by eminent domain, a pipeline company must construct its
17pipeline or underground storage facility at least eight feet
18underground, unless otherwise negotiated with the landowner.
19 Sec. 17. Section 479.25, Code 2025, is amended to read as
20follows:
21479.25 Damages.
221. A pipeline company operating a pipeline or a gas
23storage area shall have reasonable access to the pipeline or
24gas storage area for the purpose of constructing, operating,
25maintaining, or locating pipes, pumps, pressure apparatus or
26other stations, wells, devices, or equipment used in or upon
27the pipeline or gas storage area; shall pay the owner of the
28land for the right of entry and the owner of crops for all
29damages caused by entering, using, or occupying the land; and
30shall pay to the owner all damages caused by the completion
31of construction of the pipeline due to wash or erosion of the
32soil at or along the location of the pipeline and due to the
33settling of the soil along and above the pipeline. However,
34this section shall not prevent the execution of an agreement
35between the pipeline company and the owner of land or crops
-12-1with reference to the use of the land.
22. A pipeline company operating a pipeline or a gas
3storage area shall be responsible for damages resulting from
4construction, operation, or maintenance, including damages
5resulting from an environmental disaster, to local livestock,
6or other damages attributable to the construction, operation,
7or maintenance.
8 Sec. 18. Section 479.26, Code 2025, is amended to read as
9follows:
10479.26 Financial condition of permittee — bond.
11Before any permit is granted under this chapter the
12applicant must satisfy the commission that the applicant has
13property within this state other than pipelines, subject to
14execution of a value in excess of two hundred fifty thousand
15 one million dollars, or the applicant must file and maintain
16with the commission a surety bond in the penal sum of two
17hundred fifty thousand the lesser of one million dollars or
18one percent of the project value with surety approved by the
19commission, conditioned that the applicant will pay any and
20all damages legally recovered against it growing out of the
21construction or operation of its pipeline and gas storage
22facilities in the state of Iowa. When the pipeline company
23deposits with the commission security satisfactory to the
24commission as a guaranty for the payment of the damages, or
25furnishes to the commission satisfactory proofs of its solvency
26and financial ability to pay the damages, the pipeline company
27is relieved of the provisions requiring bond.
28 Sec. 19. NEW SECTION. 479.35 Liability.
29Notwithstanding any provision in this chapter to the
30contrary, except when a landowner’s actions constitute gross
31negligence and the landowner commits critical infrastructure
32sabotage as defined in section 716.11, the landowner shall not
33be liable for any damages to a pipeline or gas storage area.
34 Sec. 20. Section 479.45, subsection 2, Code 2025, is amended
35to read as follows:
-13- 12. A claim for damage for future crop deficiency within
2the easement strip shall not be precluded from renegotiation
3under section 6B.52 on the grounds that it was apparent at the
4time of settlement unless the settlement expressly releases the
5pipeline company from claims for damage to the productivity of
6the soil. The landowner shall notify the company in writing
7fourteen days prior to harvest in each year to assess crop
8deficiency or by providing global positioning system yield
9monitoring data or similar assessment data demonstrating crop
10deficiency to the company within thirty days of harvest.
11 Sec. 21. Section 479B.4, subsection 6, Code 2025, is amended
12to read as follows:
136. a. A pipeline company seeking rights under this chapter
14shall not negotiate or purchase an easement or other interest
15in land in a county known to be affected by the proposed
16project prior to the informational meeting. A pipeline
17company seeking rights under this chapter shall not engage in
18communication with landowners prior to negotiations without
19obtaining a landowner’s written consent to the communication,
20other than an initial contact for the purpose of seeking
21written consent.
22b. A person seeking rights under this chapter may contact
23landowners within five miles of the project’s proposed route
24for the purpose of seeking voluntary easements under the same
25conditions as paragraph “a”.
26 Sec. 22. Section 479B.6, Code 2025, is amended by adding the
27following new subsections:
28 NEW SUBSECTION. 3. Upon the filing of the petition, a
29pipeline company shall provide notice of such filing served by
30certified mail to landowners.
31 NEW SUBSECTION. 4. Where a petition seeks the use of the
32right of eminent domain over specific parcels of real property,
33the commission shall prescribe the notice to be served upon
34the owners of record and parties in possession of the property
35over which the use of the right of eminent domain is sought.
-14-1The notice shall disclose all of a landowner’s legal rights
2including but not limited to all of the following:
3a. The statement of individual rights created pursuant to
4section 6B.2A.
5b. The costs a pipeline company is liable for under sections
6479B.29 and 479B.31.
7c. The pipeline company’s obligations relating to land
8restoration pursuant to section 479B.20.
9 Sec. 23. Section 479B.13, Code 2025, is amended to read as
10follows:
11479B.13 Financial condition of permittee — bond.
12Before a permit is granted under this chapter the applicant
13must satisfy the commission that the applicant has property
14within this state other than pipelines or underground storage
15facilities, subject to execution of a value in excess of two
16hundred fifty thousand one million dollars, or the applicant
17must file and maintain with the commission a surety bond in
18the penal sum of two hundred fifty thousand the lesser of one
19million dollars or one percent of the project value with surety
20approved by the commission, conditioned that the applicant will
21pay any and all damages legally recovered against it growing
22out of the construction, maintenance, or operation of its
23pipeline or underground storage facilities in this state. When
24the pipeline company deposits with the commission security
25satisfactory to the commission as a guaranty for the payment of
26the damages, or furnishes to the commission satisfactory proofs
27of its solvency and financial ability to pay the damages, the
28pipeline company is relieved of the provisions requiring bond.
29 Sec. 24. Section 479B.16, subsection 1, Code 2025, is
30amended to read as follows:
311. A pipeline company granted a pipeline permit shall,
32subject to subsection 4, be vested with the right of eminent
33domain, to the extent necessary and as prescribed and approved
34by the commission, not exceeding seventy-five feet in width for
35right-of-way and not exceeding one acre in any one location in
-15-1addition to right-of-way for the location of pumps, pressure
2apparatus, or other stations or equipment necessary to the
3proper operation of its pipeline. The commission may grant
4additional eminent domain rights where the pipeline company
5has presented sufficient evidence to adequately demonstrate
6that a greater area is required for the proper construction,
7operation, and maintenance of the pipeline or for the location
8of pumps, pressure apparatus, or other stations or equipment
9necessary to the proper operation of its pipeline.
10 Sec. 25. Section 479B.16, Code 2025, is amended by adding
11the following new subsections:
12 NEW SUBSECTION. 4. The commission shall not grant eminent
13domain rights to a pipeline company seeking a permit under this
14section unless at least nine-tenths of the affected parcels
15and three-quarters of the pipeline project’s total distance
16have been acquired through voluntary easements. The commission
17shall not require more than nine-tenths of easements to be
18voluntary.
19 NEW SUBSECTION. 5. When constructing on property obtained
20by eminent domain, a pipeline company must construct its
21pipeline or underground storage facility at least eight feet
22underground, unless otherwise negotiated with the landowner.
23 Sec. 26. Section 479B.17, Code 2025, is amended to read as
24follows:
25479B.17 Damages.
261. A pipeline company operating a pipeline or an
27underground storage facility shall have reasonable access to
28the pipeline or underground storage facility for the purpose
29of constructing, operating, maintaining, or locating pipes,
30pumps, pressure apparatus, or other stations, wells, devices,
31or equipment used in or upon the pipeline or underground
32storage facility. A pipeline company shall pay the owner of
33the land for the right of entry and the owner of crops for all
34damages caused by entering, using, or occupying the lands and
35shall pay to the owner all damages caused by the completion
-16-1of construction of the pipeline due to wash or erosion of the
2soil at or along the location of the pipeline and due to the
3settling of the soil along and above the pipeline. However,
4this section does not prevent the execution of an agreement
5between the pipeline company and the owner of the land or crops
6with reference to the use of the land.
72. A pipeline company operating a pipeline or an underground
8storage facility shall be responsible for damages resulting
9from construction, operation, or maintenance, including damages
10resulting from an environmental disaster, to local livestock,
11or other damages attributable to the construction, operation,
12or maintenance.
13 Sec. 27. Section 479B.29, subsection 2, Code 2025, is
14amended to read as follows:
152. A claim for damage for future crop deficiency within
16the easement strip shall not be precluded from renegotiation
17under section 6B.52 on the grounds that it was apparent at the
18time of settlement unless the settlement expressly releases the
19pipeline company from claims for damage to the productivity of
20the soil. The landowner shall notify the pipeline company in
21writing fourteen days prior to harvest in each year to assess
22crop deficiency or by providing global positioning system yield
23monitoring data or similar assessment data demonstrating crop
24deficiency to the company within thirty days of harvest.
25 Sec. 28. NEW SECTION. 479B.34 Liability.
26Notwithstanding any provision in this chapter to the
27contrary, except when a landowner’s actions constitute gross
28negligence and the landowner commits critical infrastructure
29sabotage as defined in section 716.11, the landowner shall not
30be liable for any damages to a pipeline or gas storage area.
31 Sec. 29. EFFECTIVE DATE. This Act, being deemed of
32immediate importance, takes effect upon enactment.
33 Sec. 30. APPLICABILITY.
341. The following apply to applications for a permit
35submitted pursuant to chapters 478, 479, and 479B prior to, on,
-17-1or after the effective date of this Act:
2a. The section of this Act enacting section 478.17A.
3b. The section of this Act enacting section 478.34.
4c. The section of this Act amending section 479.25.
5d. The section of this Act enacting section 479.35.
6e. The section of this Act amending section 479B.17.
7f. The section of this Act enacting section 479B.34.
82. Remaining sections of this Act apply to applications
9for a permit submitted pursuant to chapters 476A, 478, 479,
10and 479B regarding which the first informational meeting for a
11petition is held on or after the effective date of this Act.
12EXPLANATION
13The inclusion of this explanation does not constitute agreement with
14the explanation’s substance by the members of the general assembly.
15This bill relates to applications for permits to construct
16electric transmission lines, pipelines and underground storage
17facilities, and hazardous liquid pipelines under the purview of
18the Iowa utilities commission (commission).
19The bill excludes the construction of pipelines, roads,
20electric transmission lines, or internet cables other than
21within a city or village from the definition of a public use,
22public purpose, or public improvement for purposes of eminent
23domain.
24The bill requires an acquiring agency to notify a landowner
25of the landowner’s rights in each purchase offer and creates a
26cause of action for a landowner when an acquiring agency fails
27to negotiate in good faith.
28The bill modifies eminent domain rights for matters
29under Code chapters 476A (electric power generation and
30transmission), 478 (electric transmission lines), 479
31(pipelines and underground gas storage), and 479B (hazardous
32liquid pipelines and storage facilities). The bill requires
33landowner communication consent, specified surety bond amounts,
34liability, notice, and damage provisions for permits under the
35respective Code sections.
-18- 1The bill prohibits the commission from granting eminent
2domain rights to an entity seeking those rights under Code
3chapters 476A, 478, 479, and 479B unless at least nine-tenths
4of the affected parcels and three-quarters of the area of
5the proposed project are first acquired through voluntary
6easements. The commission is prohibited from requiring more
7than 90 percent of the easements to be voluntary.
8The bill requires a person or entity granted a franchise
9for an electric transmission line to pay a fee established
10by the commission to cover the costs of the commission’s
11communications with landowners.
12The bill requires the commission to notify a landowner of
13the landowner’s rights when an electric transmission line,
14pipeline, underground storage facility, or hazardous liquid
15pipeline seeks to exercise eminent domain.
16The bill requires a person, company, or corporation seeking
17a franchise under Code chapter 478 to satisfy a bond amount
18with the commission. The franchise must satisfy the commission
19that the franchisee has property in the state of a value over
20$1 million (not including the value of the proposed project)
21or file and maintain with the commission a surety bond of $1
22million or 1 percent of the project value with surety approved
23by the commission, conditioned that the franchisee will pay any
24and all damages legally recovered against it growing out of the
25construction or operation of the project in the state. When a
26franchisee deposits security satisfactory to the commission as
27a guaranty for the payment of the damages or furnishes to the
28commission satisfactory proofs of its solvency and financial
29ability to pay the damages, the franchisee shall be relieved of
30the provisions requiring bond.
31The bill prohibits persons seeking rights to construct
32projects under Code chapter 478, 479, or 479B from contacting
33landowners regarding negotiations for land acquisition without
34first obtaining the landowner’s written consent allowing
35communication, other than an initial contact to seek such
-19-1written consent. The bill allows persons seeking rights to
2construct such projects to contact landowners within five miles
3of the project’s proposed route for the purpose of obtaining a
4voluntary easement.
5The bill adds provisions to Code chapters 478, 479, and
6479B requiring a person seeking to construct projects under
7those chapters to be held liable for damages resulting from
8construction, operation, or maintenance, including damages
9resulting from an environmental disaster, to local livestock,
10or other damages attributable to the construction, operation,
11or maintenance.
12The bill requires pipeline companies constructing on
13property obtained by eminent domain under Code chapter 479 or
14479B to build their projects at least eight feet underground,
15unless otherwise negotiated with the landowner.
16The bill provides that a claim for damages related to
17future crop deficiency within an easement strip under Code
18chapter 478 shall not be precluded from renegotiation under
19Code section 6B.52 relating to eminent domain procedure for
20the renegotiation of damages. The landowner shall notify the
21franchisee in writing 14 days prior to harvest in each year
22to assess crop deficiency or by providing global positioning
23system yield monitoring data or similar assessment data
24demonstrating crop deficiency to the company within 30
25days of harvest. The bill modifies claims for future crop
26deficiency damages pursuant to Code chapters 479 and 479B to
27allow a landowner to notify a company in writing by providing
28global positioning system yield monitoring data or similar
29assessment data demonstrating crop deficiency to the company
30within 30 days of harvest, and strikes language providing
31that a settlement may expressly release a company from soil
32productivity damage claims.
33The bill creates new provisions relating to landowner
34liability in Code chapters 478, 479, and 479B. The bill
35provides that except when a landowner’s actions constitute
-20-1gross negligence and the landowner commits critical
2infrastructure sabotage as defined in Code section 716.11
3(relating to critical infrastructure sabotage definitions),
4the landowner shall not be liable for any damages to a project
5permitted under Code chapters 478, 479, and 479B.
6The bill includes provisions relating to land restoration
7standards. The bill adds a land restoration section in
8Code chapter 478 that mirrors land restoration standards in
9Code chapters 479 and 479B. The new Code section includes
10requirements that the commission adopt rules related to the
11restoration of agricultural lands during and after transmission
12line, wire, or cable construction and distribute notice of
13intended actions to county boards of supervisors. Rules
14shall include subject matters relating to topsoil, temporary,
15permanent, and future drain tile issues, removal of rocks and
16debris, soil compaction, terraces, waterways, and other erosion
17control structures, revegetation, restoration of land slope
18and contour, restoration of field entrance and temporary road
19areas, construction in wet conditions, and designation of a
20franchisee point of contact.
21The bill provides that a county board of supervisors may
22require an on-site compliance inspection at any time to be
23performed by a specialized licensed professional engineer.
24The reasonable costs of the inspection shall be paid by the
25franchisee. Notice of a violation relating to provisions
26regarding land restoration, the land restoration plan created
27by the franchisee and submitted to the commission, or of an
28independent agreement shall be given to the franchisee or a
29contractor for the franchisee. Corrective action shall be
30taken by the franchisee and the costs of the corrective action
31shall be borne by the contractor of the franchisee.
32The bill provides that a franchisee shall file a written
33land restoration plan with their petition. The franchisee
34shall provide copies of the plan to all landowners of property
35that will be disturbed by the construction. The bill does not
-21-1preclude additional means of land protection or restoration
2in addition to the plan, rules regarding the plan, or other
3written agreements.
4The bill provides that an inspector shall adequately
5inspect underground improvements altered during transmission
6line, wire, or cable construction, and the inspection shall
7be conducted at the time of the replacement or repair of
8the underground improvements. Additionally, an inspector
9shall be present on-site at all times and the franchisee and
10its contractor shall keep an inspector continually informed
11of the work schedule and any schedule changes. The county
12board of supervisors may petition the commission for an order
13requiring corrective action to be taken when the franchisee or
14its contractor is in noncompliance. In addition, the county
15board of supervisors may file a complaint with the commission
16seeking imposition of civil penalties of not more than $100
17per violation or $1,000 per day of a continuing violation,
18whichever is greater, under Code section 478.29.
19The bill provides that a franchisee shall allow landowners
20and the inspector to view the proposed center line of the
21transmission line, wire, or cable prior to commencing trenching
22operations to ensure that construction takes place in its
23proper location, and an inspector may temporarily halt the
24construction for noncompliance until the inspector consults
25with the supervisory personnel of the franchisee. The
26commission shall instruct appointed inspectors of the content
27of the statutes and rules and the inspectors’ responsibility to
28require compliant construction.
29The bill modifies surety bond amounts for projects
30constructed pursuant to Code chapters 479 and 479B. The
31bill changes the amount that an applicant for a permit shall
32demonstrate in property value in Iowa (other than pipelines)
33to more than $1 million rather than $250,000. The applicant
34may instead file and maintain with the commission a surety bond
35of $1 million or 1 percent of the project value, whichever is
-22-1lesser, rather than a surety bond of $250,000.
2The bill is effective upon enactment and includes
3applicability provisions. The bill applies to an application
4for a permit pursuant to Code chapters 476A, 478, 479, and
5479B when the first informational meeting for a petition is
6held on or after the effective date of the bill, except when
7otherwise provided. For sections of the bill relating to
8liability regarding a landowner’s gross negligence and critical
9infrastructure sabotage and sections of the bill regarding
10petitioner responsibility for damages under Code chapters
11478, 479, and 479B, the bill shall apply retroactively to all
12applications for a permit under those Code chapters.
-23-sc/js
2electric transmission lines, pipelines and underground
3storage facilities, and hazardous liquid pipelines,
4making penalties applicable, providing fees, and including
5effective date and applicability provisions.
6BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
1 Section 1. Section 6A.22, subsection 2, paragraph b, Code
22025, is amended to read as follows:
3b. Except as specifically included in the definition in
4paragraph “a”, “public use” or “public purpose” or “public
5improvement” does not mean the construction of pipelines, roads,
6electric transmission lines, or internet cables, except within
7a city or village, or economic development activities resulting
8in increased tax revenues, increased employment opportunities,
9privately owned or privately funded housing and residential
10development, privately owned or privately funded commercial or
11industrial development, or the lease of publicly owned property
12to a private party.
13 Sec. 2. Section 6B.2B, Code 2025, is amended to read as
14follows:
156B.2B Acquisition negotiation.
161. The acquiring agency shall make a good faith effort to
17negotiate with the owner to purchase the private property or
18property interest before filing an application for condemnation
19or otherwise proceeding with the condemnation process. A
20landowner shall have the right to bring a cause of action
21against an acquiring agency who fails to negotiate in good
22faith. An acquiring agency shall not make an offer to purchase
23the property or property interest that is less than the
24fair market value the acquiring agency has established for
25the property or property interest pursuant to the appraisal
26required in section 6B.45 or less than the value determined
27under the acquiring agency’s waiver procedure established
28pursuant to section 6B.54, subsection 2, for acquisition of
29property with a low fair market value. A purchase offer made
30by an acquiring agency shall include provisions for payment
31to the owner of expenses, including relocation expenses,
32expenses listed in section 6B.54, subsection 10, and other
33expenses required by law to be paid by an acquiring agency to a
34condemnee. However, in the alternative, the acquiring agency
35may make, and the owner may accept, a purchase offer from the
-1-1acquiring agency that is an amount equal to one hundred thirty
2percent of the appraisal amount plus payment to the owner of
3expenses listed in section 6B.54, subsection 10, once those
4expenses have been determined. If the owner accepts such a
5purchase offer, the owner is barred from claiming payment
6from the acquiring agency for any other expenses allowed by
7law. An acquiring agency need not make an offer in excess of
8the amounts described in this section in order to satisfy the
9requirement to negotiate in good faith. The option to make
10an alternative purchase offer does not apply when property is
11being acquired for street and highway projects undertaken by
12the state, a county, or a city.
132. An acquiring agency shall disclose all of a landowner’s
14legal rights in each purchase offer, including but not limited
15to all of the following:
16a. The statement of individual rights created pursuant to
17section 6B.2A.
18b. The damages and costs for which the acquiring agency is
19liable.
20c. The acquiring agency’s obligations relating to land
21restoration.
22 Sec. 3. Section 476A.7, subsection 1, Code 2025, is amended
23to read as follows:
241. Issuance of a certificate by the commission authorizes
25all of the following:
26a. Authorizes The construction of the facility on the
27site designated in the certificate according to the terms and
28conditions stated in the certificate and licenses and permits
29issued by regulatory agencies during the proceeding; and,.
30b. Gives the applicant The use of the power of eminent
31domain by the applicant to the extent and under such conditions
32as the commission may approve, prescribe, and find necessary
33for the public convenience, use, and necessity, subject to
34subsection 4, proceeding in the manner of works of internal
35improvement under chapter 6B. The burden of proving the
-2-1necessity for the exercise of the power of eminent domain shall
2be on the person issued the certificate.
3 Sec. 4. Section 476A.7, Code 2025, is amended by adding the
4following new subsection:
5 NEW SUBSECTION. 4. The commission shall not grant eminent
6domain rights to a person, company, or corporation having
7secured a certificate as provided in this chapter unless at
8least nine-tenths of the affected parcels and three-quarters of
9the total distance of the facility have been acquired through
10voluntary easements. The commission shall not require more
11than nine-tenths of easements to be voluntary.
12 Sec. 5. Section 478.2, subsection 4, Code 2025, is amended
13to read as follows:
144. a. A person seeking rights under this chapter shall
15not negotiate or purchase any easements or other interests
16in land in any county known to be affected by the proposed
17project prior to the informational meeting. A person seeking
18rights under this chapter shall not engage in communication
19with landowners prior to negotiations without obtaining a
20landowner’s written consent to the communication, except for an
21initial contact to seek such written consent.
22b. A person seeking rights under this chapter may contact
23landowners within five miles of the project’s proposed route
24for the purpose of seeking voluntary easements under the same
25conditions as paragraph “a”.
26 Sec. 6. Section 478.3, Code 2025, is amended by adding the
27following new subsection:
28 NEW SUBSECTION. 4. An individual, company, or corporation
29seeking to exercise eminent domain shall submit with the
30petition a fee set by the commission for purposes of paying the
31cost of communication between the commission and the landowner.
32 Sec. 7. Section 478.6, subsection 2, Code 2025, is amended
33to read as follows:
342. Where a petition seeks the use of the right of eminent
35domain over specific parcels of real property, the commission
-3-1shall prescribe the notice to be served upon the owners of
2record and parties in possession of the property over which
3the use of the right of eminent domain is sought. The notice
4shall include the disclose all of a landowner’s legal rights
5including but not limited to all of the following:
6a. Thestatement of individual rights required pursuant to
7section 6B.2A, subsection 1.
8b. The damages a person, company, or corporation with a
9franchise is liable for under section 478.17A.
10c. The person, company, or corporation’s obligations
11relating to land restoration pursuant to section 478.35.
12 Sec. 8. Section 478.15, subsections 1 and 2, Code 2025, are
13amended to read as follows:
141. Any person, company, or corporation having secured a
15franchise as provided in this chapter, subject to subsection
161A, shall thereupon be vested with the right of eminent
17domain to such extent as the utilities commission may approve,
18prescribe, and find to be necessary for public use, not
19exceeding one hundred feet in width for right-of-way and
20not exceeding one hundred sixty acres in any one location,
21in addition to right-of-way, for the location of electric
22substations to carry out the purposes of said franchise;
23provided, however, that where two hundred kilovolt lines
24or higher voltage lines are to be constructed, the person,
25company, or corporation may apply to the commission for a wider
26right-of-way not to exceed two hundred feet, and the commission
27may for good cause extend the width of such right-of-way for
28such lines to the person, company, or corporation applying for
29the same. The burden of proving the necessity for public use
30shall be on the person, company, or corporation seeking the
31franchise. A homestead site, cemetery, orchard, or schoolhouse
32location shall not be condemned for the purpose of erecting
33an electric substation. If agreement cannot be made with the
34private owner of lands as to damages caused by the construction
35of said transmission line, or electric substations, the same
-4-1proceedings shall be taken as provided for taking private
2property for works of internal improvement.
32. Any person, company, or corporation proposing to
4construct a transmission line or other facility that involves
5the taking of property under the right of eminent domain
6and desiring to enter upon the land, which it proposes to
7appropriate, for the purpose of examining or surveying the
8same, shall first file with the utilities commission a written
9statement under oath setting forth the proposed routing of
10the line or facility including a description of the lands to
11be crossed, the names and addresses of owners, together with
12request that a permit be issued by the commission authorizing
13the person, company, or corporation or its duly appointed
14representative to enter upon the land for the purpose of
15examining and surveying and to take and use on the land any
16vehicle and surveying equipment necessary in making the survey.
17The commission shall within ten days after the request issue
18a permit, accompanied by such bond in such amount as the
19commission shall approve pursuant to subsection 2A, to the
20person, company, or corporation making the application, if in
21the commission’s opinion the application is made in good faith
22and not for the purpose of harassing the owner of the land. If
23the commission is of the opinion that the application is not
24made in good faith or made for the purpose of harassment to
25the owner of the land, the commission shall set the matter for
26hearing. The matter shall be heard not more than twenty days
27after filing the application. Notice of the time and place of
28hearing shall be given by the commission, to the owner of the
29land by registered mail with a return receipt requested, not
30less than ten days preceding the date of hearing.
31 Sec. 9. Section 478.15, Code 2025, is amended by adding the
32following new subsections:
33 NEW SUBSECTION. 1A. The commission shall not grant eminent
34domain rights to a person, company, or corporation having
35secured a franchise as provided in this chapter unless at least
-5-1nine-tenths of the affected parcels and three-quarters of the
2transmission line, wire, or cable’s total distance have been
3acquired through voluntary easements. The commission shall not
4require more than nine-tenths of easements to be voluntary.
5 NEW SUBSECTION. 2A. Before a person, company, or
6corporation seeking a franchise is granted a franchise under
7this chapter, the person, company, or corporation must satisfy
8the commission that the applicant has property within this
9state other than a transmission line, wire, or cable subject
10to execution of a value in excess of one million dollars, or
11the person, company, or corporation must file and maintain with
12the commission a surety bond in the penal sum of the lesser
13of one million dollars or one percent of the project value
14with surety approved by the commission, conditioned that the
15person, company, or corporation will pay any and all damages
16legally recovered against it growing out of the construction or
17operation of its transmission line, wire, or cable in the state
18of Iowa. When the person, company, or corporation seeking
19a franchise under this chapter deposits with the commission
20security satisfactory to the commission as a guaranty for
21the payment of the damages, or furnishes to the commission
22satisfactory proofs of its solvency and financial ability to
23pay the damages, the person, company, or corporation seeking
24a franchise under this chapter is relieved of the provisions
25requiring bond.
26 Sec. 10. NEW SECTION. 478.17A Transmission line operation
27— damages.
281. Any person, company, or corporation having secured a
29franchise as provided in this chapter shall be responsible for
30damages resulting from construction, operation, or maintenance,
31including damages resulting from an environmental disaster,
32to local livestock, or other damages attributable to the
33construction, operation, or maintenance.
342. A claim for damage for future crop deficiency within the
35easement strip shall not be precluded from renegotiation under
-6-1section 6B.52 on the grounds that it was apparent at the time
2of settlement. The landowner shall notify the person, company,
3or corporation seeking the franchise in writing fourteen days
4prior to harvest in each year to assess crop deficiency or by
5providing global positioning system yield monitoring data or
6similar assessment data demonstrating crop deficiency to the
7company within thirty days of harvest.
8 Sec. 11. NEW SECTION. 478.34 Liability.
9Notwithstanding any provision in this chapter to the
10contrary, except when a landowner’s actions constitute gross
11negligence and the landowner commits critical infrastructure
12sabotage as defined in section 716.11, the landowner shall not
13be liable for any damages to a transmission line, wire, or
14cable.
15 Sec. 12. NEW SECTION. 478.35 Land restoration standard.
161. The commission, pursuant to chapter 17A, shall
17adopt rules establishing standards for the restoration of
18agricultural lands during and after a transmission line,
19wire, or cable construction. In addition to the requirements
20of section 17A.4, the commission shall distribute copies
21of the notice of intended action and opportunity for oral
22presentations to each county board of supervisors. Any county
23board of supervisors may, under the provisions of chapter
2417A, and subsequent to the rulemaking proceedings, petition
25under those provisions for additional rulemaking to establish
26standards for land restoration after a transmission line, wire,
27or cable construction within that county. Upon the request
28of the petitioning county, the commission shall schedule a
29hearing to consider the merits of the petition. Rules adopted
30under this section shall not apply to land located within city
31boundaries unless the land is used for agricultural purposes.
32Rules adopted under this section shall address, but are not
33limited to, all of the following subject matters:
34a. Topsoil separation and replacement.
35b. Temporary and permanent repair to drain tile.
-7- 1c. Removal of rocks and debris from the right-of-way.
2d. Restoration of areas of soil compaction.
3e. Restoration of terraces, waterways, and other erosion
4control structures.
5f. Revegetation of untilled land.
6g. Future installation of drain tile or soil conservation
7structures.
8h. Restoration of land slope and contour.
9i. Restoration of areas used for field entrances and
10temporary roads.
11j. Construction in wet conditions.
12k. Designation of a person, company, or corporation seeking
13a franchise point of contact for landowner inquiries or claims.
142. The county board of supervisors shall cause an on-site
15inspection for compliance with the standards adopted under
16this section to be performed at any transmission line, wire,
17or cable construction project in the county. A licensed
18professional engineer familiar with the standards adopted
19under this section and registered under chapter 542B shall be
20responsible for the inspection. A county board of supervisors
21may contract for the services of a licensed professional
22engineer for the purposes of the inspection. The reasonable
23costs of the inspection shall be paid by the person, company,
24or corporation seeking the franchise.
253. If the inspector determines that there has been a
26violation of the standards adopted under this section, of
27the land restoration plan, or of an independent agreement on
28land restoration or line location executed in accordance with
29subsection 10, the inspector shall give oral notice, followed
30by written notice, to the person, company, or corporation
31seeking the franchise and the contractor operating for the
32person, company, or corporation seeking the franchise and order
33corrective action to be taken in compliance with the standards.
34The costs of the corrective action shall be borne by the
35contractor operating for the person, company, or corporation
-8-1seeking the franchise.
24. An inspector shall adequately inspect underground
3improvements altered during transmission line, wire, or cable
4construction. An inspection shall be conducted at the time of
5the replacement or repair of the underground improvements. An
6inspector shall be present on the site at all times at each
7phase and separate activity of the opening of the trench, if
8applicable, the restoration of underground improvements, and
9backfilling. The person, company, or corporation seeking
10the franchise and its contractor shall keep an inspector
11continually informed of the work schedule and any schedule
12changes. If proper notice is given, construction shall not
13be delayed due to an inspector’s failure to be present on the
14site.
155. If the person, company, or corporation seeking
16the franchise or its contractor does not comply with the
17requirements of this section, with the land restoration plan
18or line location, or with an independent agreement on land
19restoration executed in accordance with subsection 10, the
20county board of supervisors may petition the commission for an
21order requiring corrective action to be taken. In addition,
22the county board of supervisors may file a complaint with the
23commission seeking imposition of civil penalties under section
24478.29.
256. The person, company, or corporation seeking the
26franchise shall allow landowners and the inspector to view
27the proposed center line of the transmission line, wire, or
28cable prior to commencing trenching operations to ensure that
29construction takes place in its proper location.
307. An inspector may temporarily halt the construction
31if the construction is not in compliance with this chapter
32and the standards adopted pursuant to this chapter, the land
33restoration plan, or the terms of an independent agreement
34with the person, company, or corporation seeking the franchise
35regarding land restoration or line location executed in
-9-1accordance with subsection 10, until the inspector consults
2with the supervisory personnel of the person, company, or
3corporation seeking the franchise.
48. The commission shall instruct inspectors appointed by
5the board of supervisors regarding the content of the statutes
6and rules and the inspectors’ responsibility to require
7construction conforming with the standards provided by this
8chapter.
99. A person, company, or corporation having secured a
10franchise as provided in this chapter shall file with the
11petition a written land restoration plan showing how the
12requirements of this section, and of rules adopted pursuant to
13this section, will be met. The person, company, or corporation
14seeking the franchise shall provide copies of the plan to
15all landowners of property that will be disturbed by the
16construction.
1710. This section does not preclude the application of
18provisions for protecting or restoring property that are
19different than those prescribed in this section, in rules
20adopted under this section, or in the land restoration plan,
21if the alternative provisions are contained in agreements
22independently executed by the person, company, or corporation
23seeking the franchise and the landowner, and if the alternative
24provisions are not inconsistent with state law or with rules
25adopted by the commission. Independent agreements on land
26restoration or line location between the landowner and person,
27company, or corporation seeking the franchise shall be in
28writing and a copy shall be provided to the county inspector.
29 Sec. 13. Section 479.5, subsection 5, Code 2025, is amended
30to read as follows:
315. a. A pipeline company seeking rights under this
32chapter shall not negotiate or purchase any easements or
33other interests in land in any county known to be affected by
34the proposed project prior to the informational meeting. A
35pipeline company seeking rights under this chapter shall not
-10-1engage in communication with landowners prior to negotiations
2without obtaining a landowner’s written consent to the
3communication, except for an initial contact to seek such
4written consent.
5b. A person seeking rights under this chapter may contact
6landowners within five miles of the project’s proposed route
7for the purpose of seeking voluntary easements under the same
8conditions as paragraph “a”.
9 Sec. 14. Section 479.7, subsection 2, Code 2025, is amended
10to read as follows:
112. Where a petition seeks the use of the right of eminent
12domain over specific parcels of real property, the commission
13shall prescribe the notice to be served upon the owners of
14record and parties in possession of the property over which
15the use of the right of eminent domain is sought. The notice
16shall include the disclose all of a landowner’s legal rights
17including but not limited to all of the following:
18a. Thestatement of individual rights required pursuant to
19section 6B.2A.
20b. The costs a pipeline company is liable for under sections
21479.25, 479.45, and 479.47.
22c. The pipeline company’s obligations relating to land
23restoration pursuant to section 479.29.
24 Sec. 15. Section 479.24, subsection 1, Code 2025, is amended
25to read as follows:
261. A pipeline company granted a pipeline permit under
27this chapter shall, subject to subsection 3, be vested with
28the right of eminent domain to the extent necessary and as
29prescribed and approved by the commission, not exceeding
30seventy-five feet in width for right-of-way and not exceeding
31one acre in any one location in addition to right-of-way for
32the location of pumps, pressure apparatus, or other stations or
33equipment necessary to the proper operation of its pipeline.
34The commission may grant additional eminent domain rights where
35the pipeline company has presented sufficient evidence to
-11-1adequately demonstrate that a greater area is required for the
2proper construction, operation, and maintenance of the pipeline
3or for the location of pumps, pressure apparatus, or other
4stations or equipment necessary to the proper operation of its
5pipeline.
6 Sec. 16. Section 479.24, Code 2025, is amended by adding the
7following new subsections:
8 NEW SUBSECTION. 3. The commission shall not grant eminent
9domain rights to a pipeline company seeking a permit under this
10section unless at least nine-tenths of the affected parcels
11and three-quarters of the pipeline project’s total distance
12have been acquired through voluntary easements. The commission
13shall not require more than nine-tenths of easements to be
14voluntary.
15 NEW SUBSECTION. 4. When constructing on property obtained
16by eminent domain, a pipeline company must construct its
17pipeline or underground storage facility at least eight feet
18underground, unless otherwise negotiated with the landowner.
19 Sec. 17. Section 479.25, Code 2025, is amended to read as
20follows:
21479.25 Damages.
221. A pipeline company operating a pipeline or a gas
23storage area shall have reasonable access to the pipeline or
24gas storage area for the purpose of constructing, operating,
25maintaining, or locating pipes, pumps, pressure apparatus or
26other stations, wells, devices, or equipment used in or upon
27the pipeline or gas storage area; shall pay the owner of the
28land for the right of entry and the owner of crops for all
29damages caused by entering, using, or occupying the land; and
30shall pay to the owner all damages caused by the completion
31of construction of the pipeline due to wash or erosion of the
32soil at or along the location of the pipeline and due to the
33settling of the soil along and above the pipeline. However,
34this section shall not prevent the execution of an agreement
35between the pipeline company and the owner of land or crops
-12-1with reference to the use of the land.
22. A pipeline company operating a pipeline or a gas
3storage area shall be responsible for damages resulting from
4construction, operation, or maintenance, including damages
5resulting from an environmental disaster, to local livestock,
6or other damages attributable to the construction, operation,
7or maintenance.
8 Sec. 18. Section 479.26, Code 2025, is amended to read as
9follows:
10479.26 Financial condition of permittee — bond.
11Before any permit is granted under this chapter the
12applicant must satisfy the commission that the applicant has
13property within this state other than pipelines, subject to
14execution of a value in excess of two hundred fifty thousand
15 one million dollars, or the applicant must file and maintain
16with the commission a surety bond in the penal sum of two
17hundred fifty thousand the lesser of one million dollars or
18one percent of the project value with surety approved by the
19commission, conditioned that the applicant will pay any and
20all damages legally recovered against it growing out of the
21construction or operation of its pipeline and gas storage
22facilities in the state of Iowa. When the pipeline company
23deposits with the commission security satisfactory to the
24commission as a guaranty for the payment of the damages, or
25furnishes to the commission satisfactory proofs of its solvency
26and financial ability to pay the damages, the pipeline company
27is relieved of the provisions requiring bond.
28 Sec. 19. NEW SECTION. 479.35 Liability.
29Notwithstanding any provision in this chapter to the
30contrary, except when a landowner’s actions constitute gross
31negligence and the landowner commits critical infrastructure
32sabotage as defined in section 716.11, the landowner shall not
33be liable for any damages to a pipeline or gas storage area.
34 Sec. 20. Section 479.45, subsection 2, Code 2025, is amended
35to read as follows:
-13- 12. A claim for damage for future crop deficiency within
2the easement strip shall not be precluded from renegotiation
3under section 6B.52 on the grounds that it was apparent at the
4time of settlement unless the settlement expressly releases the
5pipeline company from claims for damage to the productivity of
6the soil. The landowner shall notify the company in writing
7fourteen days prior to harvest in each year to assess crop
8deficiency or by providing global positioning system yield
9monitoring data or similar assessment data demonstrating crop
10deficiency to the company within thirty days of harvest.
11 Sec. 21. Section 479B.4, subsection 6, Code 2025, is amended
12to read as follows:
136. a. A pipeline company seeking rights under this chapter
14shall not negotiate or purchase an easement or other interest
15in land in a county known to be affected by the proposed
16project prior to the informational meeting. A pipeline
17company seeking rights under this chapter shall not engage in
18communication with landowners prior to negotiations without
19obtaining a landowner’s written consent to the communication,
20other than an initial contact for the purpose of seeking
21written consent.
22b. A person seeking rights under this chapter may contact
23landowners within five miles of the project’s proposed route
24for the purpose of seeking voluntary easements under the same
25conditions as paragraph “a”.
26 Sec. 22. Section 479B.6, Code 2025, is amended by adding the
27following new subsections:
28 NEW SUBSECTION. 3. Upon the filing of the petition, a
29pipeline company shall provide notice of such filing served by
30certified mail to landowners.
31 NEW SUBSECTION. 4. Where a petition seeks the use of the
32right of eminent domain over specific parcels of real property,
33the commission shall prescribe the notice to be served upon
34the owners of record and parties in possession of the property
35over which the use of the right of eminent domain is sought.
-14-1The notice shall disclose all of a landowner’s legal rights
2including but not limited to all of the following:
3a. The statement of individual rights created pursuant to
4section 6B.2A.
5b. The costs a pipeline company is liable for under sections
6479B.29 and 479B.31.
7c. The pipeline company’s obligations relating to land
8restoration pursuant to section 479B.20.
9 Sec. 23. Section 479B.13, Code 2025, is amended to read as
10follows:
11479B.13 Financial condition of permittee — bond.
12Before a permit is granted under this chapter the applicant
13must satisfy the commission that the applicant has property
14within this state other than pipelines or underground storage
15facilities, subject to execution of a value in excess of two
16hundred fifty thousand one million dollars, or the applicant
17must file and maintain with the commission a surety bond in
18the penal sum of two hundred fifty thousand the lesser of one
19million dollars or one percent of the project value with surety
20approved by the commission, conditioned that the applicant will
21pay any and all damages legally recovered against it growing
22out of the construction, maintenance, or operation of its
23pipeline or underground storage facilities in this state. When
24the pipeline company deposits with the commission security
25satisfactory to the commission as a guaranty for the payment of
26the damages, or furnishes to the commission satisfactory proofs
27of its solvency and financial ability to pay the damages, the
28pipeline company is relieved of the provisions requiring bond.
29 Sec. 24. Section 479B.16, subsection 1, Code 2025, is
30amended to read as follows:
311. A pipeline company granted a pipeline permit shall,
32subject to subsection 4, be vested with the right of eminent
33domain, to the extent necessary and as prescribed and approved
34by the commission, not exceeding seventy-five feet in width for
35right-of-way and not exceeding one acre in any one location in
-15-1addition to right-of-way for the location of pumps, pressure
2apparatus, or other stations or equipment necessary to the
3proper operation of its pipeline. The commission may grant
4additional eminent domain rights where the pipeline company
5has presented sufficient evidence to adequately demonstrate
6that a greater area is required for the proper construction,
7operation, and maintenance of the pipeline or for the location
8of pumps, pressure apparatus, or other stations or equipment
9necessary to the proper operation of its pipeline.
10 Sec. 25. Section 479B.16, Code 2025, is amended by adding
11the following new subsections:
12 NEW SUBSECTION. 4. The commission shall not grant eminent
13domain rights to a pipeline company seeking a permit under this
14section unless at least nine-tenths of the affected parcels
15and three-quarters of the pipeline project’s total distance
16have been acquired through voluntary easements. The commission
17shall not require more than nine-tenths of easements to be
18voluntary.
19 NEW SUBSECTION. 5. When constructing on property obtained
20by eminent domain, a pipeline company must construct its
21pipeline or underground storage facility at least eight feet
22underground, unless otherwise negotiated with the landowner.
23 Sec. 26. Section 479B.17, Code 2025, is amended to read as
24follows:
25479B.17 Damages.
261. A pipeline company operating a pipeline or an
27underground storage facility shall have reasonable access to
28the pipeline or underground storage facility for the purpose
29of constructing, operating, maintaining, or locating pipes,
30pumps, pressure apparatus, or other stations, wells, devices,
31or equipment used in or upon the pipeline or underground
32storage facility. A pipeline company shall pay the owner of
33the land for the right of entry and the owner of crops for all
34damages caused by entering, using, or occupying the lands and
35shall pay to the owner all damages caused by the completion
-16-1of construction of the pipeline due to wash or erosion of the
2soil at or along the location of the pipeline and due to the
3settling of the soil along and above the pipeline. However,
4this section does not prevent the execution of an agreement
5between the pipeline company and the owner of the land or crops
6with reference to the use of the land.
72. A pipeline company operating a pipeline or an underground
8storage facility shall be responsible for damages resulting
9from construction, operation, or maintenance, including damages
10resulting from an environmental disaster, to local livestock,
11or other damages attributable to the construction, operation,
12or maintenance.
13 Sec. 27. Section 479B.29, subsection 2, Code 2025, is
14amended to read as follows:
152. A claim for damage for future crop deficiency within
16the easement strip shall not be precluded from renegotiation
17under section 6B.52 on the grounds that it was apparent at the
18time of settlement unless the settlement expressly releases the
19pipeline company from claims for damage to the productivity of
20the soil. The landowner shall notify the pipeline company in
21writing fourteen days prior to harvest in each year to assess
22crop deficiency or by providing global positioning system yield
23monitoring data or similar assessment data demonstrating crop
24deficiency to the company within thirty days of harvest.
25 Sec. 28. NEW SECTION. 479B.34 Liability.
26Notwithstanding any provision in this chapter to the
27contrary, except when a landowner’s actions constitute gross
28negligence and the landowner commits critical infrastructure
29sabotage as defined in section 716.11, the landowner shall not
30be liable for any damages to a pipeline or gas storage area.
31 Sec. 29. EFFECTIVE DATE. This Act, being deemed of
32immediate importance, takes effect upon enactment.
33 Sec. 30. APPLICABILITY.
341. The following apply to applications for a permit
35submitted pursuant to chapters 478, 479, and 479B prior to, on,
-17-1or after the effective date of this Act:
2a. The section of this Act enacting section 478.17A.
3b. The section of this Act enacting section 478.34.
4c. The section of this Act amending section 479.25.
5d. The section of this Act enacting section 479.35.
6e. The section of this Act amending section 479B.17.
7f. The section of this Act enacting section 479B.34.
82. Remaining sections of this Act apply to applications
9for a permit submitted pursuant to chapters 476A, 478, 479,
10and 479B regarding which the first informational meeting for a
11petition is held on or after the effective date of this Act.
12EXPLANATION
13The inclusion of this explanation does not constitute agreement with
14the explanation’s substance by the members of the general assembly.
15This bill relates to applications for permits to construct
16electric transmission lines, pipelines and underground storage
17facilities, and hazardous liquid pipelines under the purview of
18the Iowa utilities commission (commission).
19The bill excludes the construction of pipelines, roads,
20electric transmission lines, or internet cables other than
21within a city or village from the definition of a public use,
22public purpose, or public improvement for purposes of eminent
23domain.
24The bill requires an acquiring agency to notify a landowner
25of the landowner’s rights in each purchase offer and creates a
26cause of action for a landowner when an acquiring agency fails
27to negotiate in good faith.
28The bill modifies eminent domain rights for matters
29under Code chapters 476A (electric power generation and
30transmission), 478 (electric transmission lines), 479
31(pipelines and underground gas storage), and 479B (hazardous
32liquid pipelines and storage facilities). The bill requires
33landowner communication consent, specified surety bond amounts,
34liability, notice, and damage provisions for permits under the
35respective Code sections.
-18- 1The bill prohibits the commission from granting eminent
2domain rights to an entity seeking those rights under Code
3chapters 476A, 478, 479, and 479B unless at least nine-tenths
4of the affected parcels and three-quarters of the area of
5the proposed project are first acquired through voluntary
6easements. The commission is prohibited from requiring more
7than 90 percent of the easements to be voluntary.
8The bill requires a person or entity granted a franchise
9for an electric transmission line to pay a fee established
10by the commission to cover the costs of the commission’s
11communications with landowners.
12The bill requires the commission to notify a landowner of
13the landowner’s rights when an electric transmission line,
14pipeline, underground storage facility, or hazardous liquid
15pipeline seeks to exercise eminent domain.
16The bill requires a person, company, or corporation seeking
17a franchise under Code chapter 478 to satisfy a bond amount
18with the commission. The franchise must satisfy the commission
19that the franchisee has property in the state of a value over
20$1 million (not including the value of the proposed project)
21or file and maintain with the commission a surety bond of $1
22million or 1 percent of the project value with surety approved
23by the commission, conditioned that the franchisee will pay any
24and all damages legally recovered against it growing out of the
25construction or operation of the project in the state. When a
26franchisee deposits security satisfactory to the commission as
27a guaranty for the payment of the damages or furnishes to the
28commission satisfactory proofs of its solvency and financial
29ability to pay the damages, the franchisee shall be relieved of
30the provisions requiring bond.
31The bill prohibits persons seeking rights to construct
32projects under Code chapter 478, 479, or 479B from contacting
33landowners regarding negotiations for land acquisition without
34first obtaining the landowner’s written consent allowing
35communication, other than an initial contact to seek such
-19-1written consent. The bill allows persons seeking rights to
2construct such projects to contact landowners within five miles
3of the project’s proposed route for the purpose of obtaining a
4voluntary easement.
5The bill adds provisions to Code chapters 478, 479, and
6479B requiring a person seeking to construct projects under
7those chapters to be held liable for damages resulting from
8construction, operation, or maintenance, including damages
9resulting from an environmental disaster, to local livestock,
10or other damages attributable to the construction, operation,
11or maintenance.
12The bill requires pipeline companies constructing on
13property obtained by eminent domain under Code chapter 479 or
14479B to build their projects at least eight feet underground,
15unless otherwise negotiated with the landowner.
16The bill provides that a claim for damages related to
17future crop deficiency within an easement strip under Code
18chapter 478 shall not be precluded from renegotiation under
19Code section 6B.52 relating to eminent domain procedure for
20the renegotiation of damages. The landowner shall notify the
21franchisee in writing 14 days prior to harvest in each year
22to assess crop deficiency or by providing global positioning
23system yield monitoring data or similar assessment data
24demonstrating crop deficiency to the company within 30
25days of harvest. The bill modifies claims for future crop
26deficiency damages pursuant to Code chapters 479 and 479B to
27allow a landowner to notify a company in writing by providing
28global positioning system yield monitoring data or similar
29assessment data demonstrating crop deficiency to the company
30within 30 days of harvest, and strikes language providing
31that a settlement may expressly release a company from soil
32productivity damage claims.
33The bill creates new provisions relating to landowner
34liability in Code chapters 478, 479, and 479B. The bill
35provides that except when a landowner’s actions constitute
-20-1gross negligence and the landowner commits critical
2infrastructure sabotage as defined in Code section 716.11
3(relating to critical infrastructure sabotage definitions),
4the landowner shall not be liable for any damages to a project
5permitted under Code chapters 478, 479, and 479B.
6The bill includes provisions relating to land restoration
7standards. The bill adds a land restoration section in
8Code chapter 478 that mirrors land restoration standards in
9Code chapters 479 and 479B. The new Code section includes
10requirements that the commission adopt rules related to the
11restoration of agricultural lands during and after transmission
12line, wire, or cable construction and distribute notice of
13intended actions to county boards of supervisors. Rules
14shall include subject matters relating to topsoil, temporary,
15permanent, and future drain tile issues, removal of rocks and
16debris, soil compaction, terraces, waterways, and other erosion
17control structures, revegetation, restoration of land slope
18and contour, restoration of field entrance and temporary road
19areas, construction in wet conditions, and designation of a
20franchisee point of contact.
21The bill provides that a county board of supervisors may
22require an on-site compliance inspection at any time to be
23performed by a specialized licensed professional engineer.
24The reasonable costs of the inspection shall be paid by the
25franchisee. Notice of a violation relating to provisions
26regarding land restoration, the land restoration plan created
27by the franchisee and submitted to the commission, or of an
28independent agreement shall be given to the franchisee or a
29contractor for the franchisee. Corrective action shall be
30taken by the franchisee and the costs of the corrective action
31shall be borne by the contractor of the franchisee.
32The bill provides that a franchisee shall file a written
33land restoration plan with their petition. The franchisee
34shall provide copies of the plan to all landowners of property
35that will be disturbed by the construction. The bill does not
-21-1preclude additional means of land protection or restoration
2in addition to the plan, rules regarding the plan, or other
3written agreements.
4The bill provides that an inspector shall adequately
5inspect underground improvements altered during transmission
6line, wire, or cable construction, and the inspection shall
7be conducted at the time of the replacement or repair of
8the underground improvements. Additionally, an inspector
9shall be present on-site at all times and the franchisee and
10its contractor shall keep an inspector continually informed
11of the work schedule and any schedule changes. The county
12board of supervisors may petition the commission for an order
13requiring corrective action to be taken when the franchisee or
14its contractor is in noncompliance. In addition, the county
15board of supervisors may file a complaint with the commission
16seeking imposition of civil penalties of not more than $100
17per violation or $1,000 per day of a continuing violation,
18whichever is greater, under Code section 478.29.
19The bill provides that a franchisee shall allow landowners
20and the inspector to view the proposed center line of the
21transmission line, wire, or cable prior to commencing trenching
22operations to ensure that construction takes place in its
23proper location, and an inspector may temporarily halt the
24construction for noncompliance until the inspector consults
25with the supervisory personnel of the franchisee. The
26commission shall instruct appointed inspectors of the content
27of the statutes and rules and the inspectors’ responsibility to
28require compliant construction.
29The bill modifies surety bond amounts for projects
30constructed pursuant to Code chapters 479 and 479B. The
31bill changes the amount that an applicant for a permit shall
32demonstrate in property value in Iowa (other than pipelines)
33to more than $1 million rather than $250,000. The applicant
34may instead file and maintain with the commission a surety bond
35of $1 million or 1 percent of the project value, whichever is
-22-1lesser, rather than a surety bond of $250,000.
2The bill is effective upon enactment and includes
3applicability provisions. The bill applies to an application
4for a permit pursuant to Code chapters 476A, 478, 479, and
5479B when the first informational meeting for a petition is
6held on or after the effective date of the bill, except when
7otherwise provided. For sections of the bill relating to
8liability regarding a landowner’s gross negligence and critical
9infrastructure sabotage and sections of the bill regarding
10petitioner responsibility for damages under Code chapters
11478, 479, and 479B, the bill shall apply retroactively to all
12applications for a permit under those Code chapters.
-23-sc/js