Senate File 346 - Introduced SENATE FILE 346 BY GUTH A BILL FOR An Act relating to applications for permits to construct 1 electric transmission lines, pipelines and underground 2 storage facilities, and hazardous liquid pipelines, making 3 penalties applicable, and including effective date and 4 applicability provisions. 5 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 6 TLSB 2334XS (4) 90 es/rn
S.F. 346 Section 1. Section 476A.7, subsection 1, paragraph b, Code 1 2023, is amended to read as follows: 2 b. Gives the applicant the power of eminent domain to the 3 extent and under such conditions as the board may approve, 4 prescribe and find necessary for the public convenience, use 5 and necessity , subject to subsection 4 , proceeding in the 6 manner of works of internal improvement under chapter 6B . 7 The burden of proving the necessity for the exercise of the 8 power of eminent domain shall be on the person issued the 9 certificate. 10 Sec. 2. Section 476A.7, Code 2023, is amended by adding the 11 following new subsection: 12 NEW SUBSECTION . 4. The board shall not grant eminent domain 13 rights to a person, company, or corporation having secured 14 a certificate as provided in this chapter unless at least 15 two-thirds of the affected parcels and two-thirds of the total 16 distance of the facility have been acquired through voluntary 17 easements. The board shall not require more than nine-tenths 18 of easements to be voluntary. 19 Sec. 3. Section 478.2, subsection 4, Code 2023, is amended 20 to read as follows: 21 4. A person seeking rights under this chapter shall not 22 negotiate or purchase any easements or other interests in 23 land in any county known to be affected by the proposed 24 project prior to the informational meeting. A person seeking 25 rights under this chapter shall not engage in communication 26 with landowners prior to negotiations without obtaining a 27 landowners written consent to the communication. 28 Sec. 4. Section 478.15, subsections 1 and 2, Code 2023, are 29 amended to read as follows: 30 1. Any person, company, or corporation having secured 31 a franchise as provided in this chapter , shall , subject 32 to subsection 1A, thereupon be vested with the right of 33 eminent domain to such extent as the utilities board may 34 approve, prescribe and find to be necessary for public use, 35 -1- LSB 2334XS (4) 90 es/rn 1/ 18
S.F. 346 not exceeding one hundred feet in width for right-of-way and 1 not exceeding one hundred sixty acres in any one location, 2 in addition to right-of-way, for the location of electric 3 substations to carry out the purposes of said franchise; 4 provided however, that where two hundred kilovolt lines 5 or higher voltage lines are to be constructed, the person, 6 company, or corporation may apply to the board for a wider 7 right-of-way not to exceed two hundred feet, and the board 8 may for good cause extend the width of such right-of-way for 9 such lines to the person, company, or corporation applying for 10 the same. The burden of proving the necessity for public use 11 shall be on the person, company, or corporation seeking the 12 franchise. A homestead site, cemetery, orchard, or schoolhouse 13 location shall not be condemned for the purpose of erecting 14 an electric substation. If agreement cannot be made with the 15 private owner of lands as to damages caused by the construction 16 of said transmission line, or electric substations, the same 17 proceedings shall be taken as provided for taking private 18 property for works of internal improvement. 19 2. Any person, company, or corporation proposing to 20 construct a transmission line or other facility which involves 21 the taking of property under the right of eminent domain 22 and desiring to enter upon the land, which it proposes to 23 appropriate, for the purpose of examining or surveying the 24 same, shall first file with the utilities board, a written 25 statement under oath setting forth the proposed routing of 26 the line or facility including a description of the lands 27 to be crossed, the names and addresses of owners, together 28 with request that a permit be issued by the board authorizing 29 the person, company, or corporation or its duly appointed 30 representative to enter upon the land for the purpose of 31 examining and surveying and to take and use on the land 32 any vehicle and surveying equipment necessary in making the 33 survey. The board shall within ten days after the request 34 issue a permit, accompanied by such bond in such amount as the 35 -2- LSB 2334XS (4) 90 es/rn 2/ 18
S.F. 346 board shall approve pursuant to subsection 2A , to the person, 1 company, or corporation making the application, if in the 2 boards opinion the application is made in good faith and not 3 for the purpose of harassing the owner of the land. If the 4 board is of the opinion that the application is not made in 5 good faith or made for the purpose of harassment to the owner 6 of the land the board shall set the matter for hearing. The 7 matter shall be heard not more than twenty days after filing 8 the application. Notice of the time and place of hearing shall 9 be given by the board, to the owner of the land by registered 10 mail with a return receipt requested, not less than ten days 11 preceding the date of hearing. 12 Sec. 5. Section 478.15, Code 2023, is amended by adding the 13 following new subsections: 14 NEW SUBSECTION . 1A. The board shall not grant eminent 15 domain rights to a person, company, or corporation having 16 secured a franchise as provided in this chapter unless at 17 least two-thirds of the affected parcels and two-thirds of the 18 transmission line, wire, or cables total distance have been 19 acquired through voluntary easements. The board shall not 20 require more than nine-tenths of easements to be voluntary. 21 NEW SUBSECTION . 2A. Before a person, company, or 22 corporation seeking a franchise is granted a franchise under 23 this chapter, the person, company, or corporation must satisfy 24 the board that the applicant has property within this state 25 other than a transmission line, wire, or cable subject to 26 execution of a value in excess of one million dollars, or the 27 person, company, or corporation must file and maintain with 28 the board a surety bond in the penal sum of the lesser of one 29 million dollars or one percent of the project value with surety 30 approved by the board, conditioned that the person, company, 31 or corporation will pay any and all damages legally recovered 32 against it growing out of the construction or operation of its 33 transmission line, wire, or cable in the state of Iowa. When 34 the person, company, or corporation seeking a franchise under 35 -3- LSB 2334XS (4) 90 es/rn 3/ 18
S.F. 346 this chapter deposits with the board security satisfactory to 1 the board as a guaranty for the payment of the damages, or 2 furnishes to the board satisfactory proofs of its solvency and 3 financial ability to pay the damages, the person, company, or 4 corporation seeking a franchise under this chapter is relieved 5 of the provisions requiring bond. 6 Sec. 6. NEW SECTION . 478.17A Transmission line operation 7 damages. 8 1. Any person, company, or corporation having secured a 9 franchise as provided in this chapter shall be responsible for 10 damages resulting from construction, operation, or maintenance, 11 including damages resulting from an environmental disaster, 12 to local livestock, or other damages attributable to the 13 construction, operation, or maintenance. 14 2. A claim for damage for future crop deficiency within the 15 easement strip shall not be precluded from renegotiation under 16 section 6B.52 on the grounds that it was apparent at the time 17 of settlement. The landowner shall notify the person, company, 18 or corporation seeking the franchise in writing fourteen days 19 prior to harvest in each year to assess crop deficiency or by 20 providing global positioning system yield monitoring data or 21 similar assessment data demonstrating crop deficiency to the 22 company within thirty days of harvest. 23 Sec. 7. NEW SECTION . 478.34 Liability. 24 Notwithstanding any provision in this chapter to the 25 contrary, except where a landowners actions constitute gross 26 negligence and the landowner commits critical infrastructure 27 sabotage as defined in section 716.11, the landowner shall not 28 be liable for any damages to a transmission line, wire, or 29 cable. 30 Sec. 8. NEW SECTION . 478.35 Land restoration standard. 31 1. The board, pursuant to chapter 17A, shall adopt rules 32 establishing standards for the restoration of agricultural 33 lands during and after a transmission line, wire, or cable 34 construction. In addition to the requirements of section 35 -4- LSB 2334XS (4) 90 es/rn 4/ 18
S.F. 346 17A.4, the board shall distribute copies of the notice of 1 intended action and opportunity for oral presentations to each 2 county board of supervisors. Any county board of supervisors 3 may, under the provisions of chapter 17A, and subsequent to 4 the rulemaking proceedings, petition under those provisions 5 for additional rulemaking to establish standards for land 6 restoration after a transmission line, wire, or cable within 7 that county. Upon the request of the petitioning county, the 8 board shall schedule a hearing to consider the merits of the 9 petition. Rules adopted under this section shall not apply to 10 land located within city boundaries unless the land is used for 11 agricultural purposes. Rules adopted under this section shall 12 address, but are not limited to, all of the following subject 13 matters: 14 a. Topsoil separation and replacement. 15 b. Temporary and permanent repair to drain tile. 16 c. Removal of rocks and debris from the right-of-way. 17 d. Restoration of areas of soil compaction. 18 e. Restoration of terraces, waterways, and other erosion 19 control structures. 20 f. Revegetation of untilled land. 21 g. Future installation of drain tile or soil conservation 22 structures. 23 h. Restoration of land slope and contour. 24 i. Restoration of areas used for field entrances and 25 temporary roads. 26 j. Construction in wet conditions. 27 k. Designation of a person, company, or corporation seeking 28 a franchise point of contact for landowner inquiries or claims. 29 2. The county board of supervisors shall cause an on-site 30 inspection for compliance with the standards adopted under 31 this section to be performed at any transmission line, wire, 32 or cable construction project in the county. A licensed 33 professional engineer familiar with the standards adopted 34 under this section and registered under chapter 542B shall be 35 -5- LSB 2334XS (4) 90 es/rn 5/ 18
S.F. 346 responsible for the inspection. A county board of supervisors 1 may contract for the services of a licensed professional 2 engineer for the purposes of the inspection. The reasonable 3 costs of the inspection shall be paid by the person, company, 4 or corporation seeking the franchise. 5 3. If the inspector determines that there has been a 6 violation of the standards adopted under this section, of 7 the land restoration plan, or of an independent agreement on 8 land restoration or line location executed in accordance with 9 subsection 10, the inspector shall give oral notice, followed 10 by written notice, to the person, company, or corporation 11 seeking the franchise and the contractor operating for the 12 person, company, or corporation seeking the franchise and order 13 corrective action to be taken in compliance with the standards. 14 The costs of the corrective action shall be borne by the 15 contractor operating for the person, company, or corporation 16 seeking the franchise. 17 4. An inspector shall adequately inspect underground 18 improvements altered during transmission line, wire, or cable 19 construction. An inspection shall be conducted at the time of 20 the replacement or repair of the underground improvements. An 21 inspector shall be present on the site at all times at each 22 phase and separate activity of the opening of the trench, if 23 applicable, the restoration of underground improvements, and 24 backfilling. The person, company, or corporation seeking 25 the franchise and its contractor shall keep an inspector 26 continually informed of the work schedule and any schedule 27 changes. If proper notice is given, construction shall not 28 be delayed due to an inspectors failure to be present on the 29 site. 30 5. If the person, company, or corporation seeking 31 the franchise or its contractor does not comply with the 32 requirements of this section, with the land restoration plan 33 or line location, or with an independent agreement on land 34 restoration executed in accordance with subsection 10, the 35 -6- LSB 2334XS (4) 90 es/rn 6/ 18
S.F. 346 county board of supervisors may petition the board for an order 1 requiring corrective action to be taken. In addition, the 2 county board of supervisors may file a complaint with the board 3 seeking imposition of civil penalties under section 478.29. 4 6. The person, company, or corporation seeking the 5 franchise shall allow landowners and the inspector to view 6 the proposed center line of the transmission line, wire, or 7 cable prior to commencing trenching operations to ensure that 8 construction takes place in its proper location. 9 7. An inspector may temporarily halt the construction 10 if the construction is not in compliance with this chapter 11 and the standards adopted pursuant to this chapter, the land 12 restoration plan, or the terms of an independent agreement 13 with the person, company, or corporation seeking the franchise 14 regarding land restoration or line location executed in 15 accordance with subsection 10, until the inspector consults 16 with the supervisory personnel of the person, company, or 17 corporation seeking the franchise. 18 8. The board shall instruct inspectors appointed by the 19 board of supervisors regarding the content of the statutes 20 and rules and the inspectors responsibility to require 21 construction conforming with the standards provided by this 22 chapter. 23 9. A person, company, or corporation having secured a 24 franchise as provided in this chapter shall file with the 25 petition a written land restoration plan showing how the 26 requirements of this section, and of rules adopted pursuant to 27 this section, will be met. The person, company, or corporation 28 seeking the franchise shall provide copies of the plan to 29 all landowners of property that will be disturbed by the 30 construction. 31 10. This section does not preclude the application of 32 provisions for protecting or restoring property that are 33 different than those prescribed in this section, in rules 34 adopted under this section, or in the land restoration plan, 35 -7- LSB 2334XS (4) 90 es/rn 7/ 18
S.F. 346 if the alternative provisions are contained in agreements 1 independently executed by the person, company, or corporation 2 seeking the franchise and the landowner, and if the alternative 3 provisions are not inconsistent with state law or with 4 rules adopted by the board. Independent agreements on land 5 restoration or line location between the landowner and person, 6 company, or corporation seeking the franchise shall be in 7 writing and a copy provided to the county inspector. 8 Sec. 9. Section 479.5, subsection 5, Code 2023, is amended 9 to read as follows: 10 5. A pipeline company seeking rights under this chapter 11 shall not negotiate or purchase any easements or other 12 interests in land in any county known to be affected by 13 the proposed project prior to the informational meeting. A 14 pipeline company seeking rights under this chapter shall not 15 engage in communication with landowners prior to negotiations 16 without obtaining a landowners written consent to the 17 communication. 18 Sec. 10. Section 479.7, Code 2023, is amended by adding the 19 following new subsection: 20 NEW SUBSECTION . 3. Upon the filing of the petition, a 21 pipeline company shall provide notice of such filing served by 22 certified mail to landowners. 23 Sec. 11. Section 479.24, subsection 1, Code 2023, is amended 24 to read as follows: 25 1. A pipeline company granted a pipeline permit under 26 this chapter shall , subject to subsection 3, be vested 27 with the right of eminent domain to the extent necessary 28 and as prescribed and approved by the board, not exceeding 29 seventy-five feet in width for right-of-way and not exceeding 30 one acre in any one location in addition to right-of-way for 31 the location of pumps, pressure apparatus, or other stations or 32 equipment necessary to the proper operation of its pipeline. 33 The board may grant additional eminent domain rights where 34 the pipeline company has presented sufficient evidence to 35 -8- LSB 2334XS (4) 90 es/rn 8/ 18
S.F. 346 adequately demonstrate that a greater area is required for the 1 proper construction, operation, and maintenance of the pipeline 2 or for the location of pumps, pressure apparatus, or other 3 stations or equipment necessary to the proper operation of its 4 pipeline. 5 Sec. 12. Section 479.24, Code 2023, is amended by adding the 6 following new subsection: 7 NEW SUBSECTION . 3. The board shall not grant eminent 8 domain rights to a pipeline company seeking a permit under this 9 section unless at least two-thirds of the affected parcels and 10 two-thirds of the pipeline projects total distance have been 11 acquired through voluntary easements. The board shall not 12 require more than nine-tenths of easements to be voluntary. 13 Sec. 13. Section 479.25, Code 2023, is amended to read as 14 follows: 15 479.25 Damages. 16 1. A pipeline company operating a pipeline or a gas 17 storage area shall have reasonable access to the pipeline or 18 gas storage area for the purpose of constructing, operating, 19 maintaining, or locating pipes, pumps, pressure apparatus or 20 other stations, wells, devices, or equipment used in or upon 21 the pipeline or gas storage area; shall pay the owner of the 22 land for the right of entry and the owner of crops for all 23 damages caused by entering, using, or occupying the land; and 24 shall pay to the owner all damages caused by the completion 25 of construction of the pipeline due to wash or erosion of the 26 soil at or along the location of the pipeline and due to the 27 settling of the soil along and above the pipeline. However, 28 this section shall not prevent the execution of an agreement 29 between the pipeline company and the owner of land or crops 30 with reference to the use of the land. 31 2. A pipeline company operating a pipeline or a gas 32 storage area shall be responsible for damages resulting from 33 construction, operation, or maintenance, including damages 34 resulting from an environmental disaster, to local livestock, 35 -9- LSB 2334XS (4) 90 es/rn 9/ 18
S.F. 346 or other damages attributable to the construction, operation, 1 or maintenance. 2 Sec. 14. Section 479.26, Code 2023, is amended to read as 3 follows: 4 479.26 Financial condition of permittee bond. 5 Before any permit is granted under this chapter the 6 applicant must satisfy the board that the applicant has 7 property within this state other than pipelines, subject to 8 execution of a value in excess of two hundred fifty thousand 9 one million dollars, or the applicant must file and maintain 10 with the board a surety bond in the penal sum of two hundred 11 fifty thousand the lesser of one million dollars or one 12 percent of the project value with surety approved by the board, 13 conditioned that the applicant will pay any and all damages 14 legally recovered against it growing out of the construction 15 or operation of its pipeline and gas storage facilities in the 16 state of Iowa. When the pipeline company deposits with the 17 board security satisfactory to the board as a guaranty for the 18 payment of the damages, or furnishes to the board satisfactory 19 proofs of its solvency and financial ability to pay the 20 damages, the pipeline company is relieved of the provisions 21 requiring bond. 22 Sec. 15. NEW SECTION . 479.35 Liability. 23 Notwithstanding any provision in this chapter to the 24 contrary, except where a landowners actions constitute gross 25 negligence and the landowner commits critical infrastructure 26 sabotage as defined in section 716.11, the landowner shall not 27 be liable for any damages to a pipeline or gas storage area. 28 Sec. 16. Section 479.45, subsection 2, Code 2023, is amended 29 to read as follows: 30 2. A claim for damage for future crop deficiency within 31 the easement strip shall not be precluded from renegotiation 32 under section 6B.52 on the grounds that it was apparent at the 33 time of settlement unless the settlement expressly releases the 34 pipeline company from claims for damage to the productivity of 35 -10- LSB 2334XS (4) 90 es/rn 10/ 18
S.F. 346 the soil . The landowner shall notify the company in writing 1 fourteen days prior to harvest in each year to assess crop 2 deficiency or by providing global positioning system yield 3 monitoring data or similar assessment data demonstrating crop 4 deficiency to the company within thirty days of harvest . 5 Sec. 17. Section 479B.4, subsection 6, Code 2023, is amended 6 to read as follows: 7 6. A pipeline company seeking rights under this chapter 8 shall not negotiate or purchase an easement or other interest 9 in land in a county known to be affected by the proposed 10 project prior to the informational meeting. A pipeline 11 company seeking rights under this chapter shall not engage in 12 communication with landowners prior to negotiations without 13 obtaining a landowners written consent to the communication. 14 Sec. 18. Section 479B.6, Code 2023, is amended by adding the 15 following new subsection: 16 NEW SUBSECTION . 3. Upon the filing of the petition, a 17 pipeline company shall provide notice of such filing served by 18 certified mail to landowners. 19 Sec. 19. Section 479B.13, Code 2023, is amended to read as 20 follows: 21 479B.13 Financial condition of permittee bond. 22 Before a permit is granted under this chapter the applicant 23 must satisfy the board that the applicant has property within 24 this state other than pipelines or underground storage 25 facilities, subject to execution of a value in excess of two 26 hundred fifty thousand one million dollars, or the applicant 27 must file and maintain with the board a surety bond in the 28 penal sum of two hundred fifty thousand the lesser of one 29 million dollars or one percent of the project value with surety 30 approved by the board, conditioned that the applicant will pay 31 any and all damages legally recovered against it growing out 32 of the construction, maintenance, or operation of its pipeline 33 or underground storage facilities in this state. When the 34 pipeline company deposits with the board security satisfactory 35 -11- LSB 2334XS (4) 90 es/rn 11/ 18
S.F. 346 to the board as a guaranty for the payment of the damages, or 1 furnishes to the board satisfactory proofs of its solvency and 2 financial ability to pay the damages, the pipeline company is 3 relieved of the provisions requiring bond. 4 Sec. 20. Section 479B.16, subsection 1, Code 2023, is 5 amended to read as follows: 6 1. A pipeline company granted a pipeline permit shall , 7 subject to subsection 4, be vested with the right of eminent 8 domain, to the extent necessary and as prescribed and approved 9 by the board, not exceeding seventy-five feet in width for 10 right-of-way and not exceeding one acre in any one location in 11 addition to right-of-way for the location of pumps, pressure 12 apparatus, or other stations or equipment necessary to 13 the proper operation of its pipeline. The board may grant 14 additional eminent domain rights where the pipeline company 15 has presented sufficient evidence to adequately demonstrate 16 that a greater area is required for the proper construction, 17 operation, and maintenance of the pipeline or for the location 18 of pumps, pressure apparatus, or other stations or equipment 19 necessary to the proper operation of its pipeline. 20 Sec. 21. Section 479B.16, Code 2023, is amended by adding 21 the following new subsection: 22 NEW SUBSECTION . 4. The board shall not grant eminent 23 domain rights to a pipeline company seeking a permit under this 24 section unless at least two-thirds of the affected parcels and 25 two-thirds of the pipeline projects total distance have been 26 acquired through voluntary easements. The board shall not 27 require more than nine-tenths of easements to be voluntary. 28 Sec. 22. Section 479B.17, Code 2023, is amended to read as 29 follows: 30 479B.17 Damages. 31 1. A pipeline company operating a pipeline or an 32 underground storage facility shall have reasonable access to 33 the pipeline or underground storage facility for the purpose 34 of constructing, operating, maintaining, or locating pipes, 35 -12- LSB 2334XS (4) 90 es/rn 12/ 18
S.F. 346 pumps, pressure apparatus, or other stations, wells, devices, 1 or equipment used in or upon the pipeline or underground 2 storage facility. A pipeline company shall pay the owner of 3 the land for the right of entry and the owner of crops for all 4 damages caused by entering, using, or occupying the lands and 5 shall pay to the owner all damages caused by the completion 6 of construction of the pipeline due to wash or erosion of the 7 soil at or along the location of the pipeline and due to the 8 settling of the soil along and above the pipeline. However, 9 this section does not prevent the execution of an agreement 10 between the pipeline company and the owner of the land or crops 11 with reference to the use of the land. 12 2. A pipeline company operating a pipeline or an underground 13 storage facility shall be responsible for damages resulting 14 from construction, operation, or maintenance, including damages 15 resulting from an environmental disaster, to local livestock, 16 or other damages attributable to the construction, operation, 17 or maintenance. 18 Sec. 23. Section 479B.29, subsection 2, Code 2023, is 19 amended to read as follows: 20 2. A claim for damage for future crop deficiency within 21 the easement strip shall not be precluded from renegotiation 22 under section 6B.52 on the grounds that it was apparent at the 23 time of settlement unless the settlement expressly releases the 24 pipeline company from claims for damage to the productivity of 25 the soil . The landowner shall notify the pipeline company in 26 writing fourteen days prior to harvest in each year to assess 27 crop deficiency or by providing global positioning system yield 28 monitoring data or similar assessment data demonstrating crop 29 deficiency to the company within thirty days of harvest . 30 Sec. 24. NEW SECTION . 479B.34 Liability. 31 Notwithstanding any provision in this chapter to the 32 contrary, except where a landowners actions constitute gross 33 negligence and the landowner commits critical infrastructure 34 sabotage as defined in section 716.11, the landowner shall not 35 -13- LSB 2334XS (4) 90 es/rn 13/ 18
S.F. 346 be liable for any damages to a pipeline or gas storage area. 1 Sec. 25. EFFECTIVE DATE. This Act, being deemed of 2 immediate importance, takes effect upon enactment. 3 Sec. 26. APPLICABILITY. 4 1. The following apply to applications for a permit 5 submitted pursuant to chapters 478, 479, and 479B prior to, on, 6 or after the effective date of this Act: 7 a. The section of this Act enacting section 478.17A. 8 b. The section of this Act enacting section 478.34. 9 c. The section of this Act amending section 479.25. 10 d. The section of this Act enacting section 479.35. 11 e. The section of this Act amending section 479B.17. 12 f. The section of this Act enacting section 479B.34. 13 2. Remaining sections of this Act apply to applications for 14 a permit submitted pursuant to Code chapters 476A, 478, 479, 15 and 479B regarding which the first informational meeting for a 16 petition is held on or after the effective date of this Act. 17 EXPLANATION 18 The inclusion of this explanation does not constitute agreement with 19 the explanations substance by the members of the general assembly. 20 This bill relates to applications for permits to construct 21 electric transmission lines, pipelines and underground storage, 22 and hazardous liquid pipelines under the purview of the Iowa 23 utilities board (board). 24 The bill modifies eminent domain rights for matters under 25 Code chapter 476A (electric power generation and transmission), 26 Code chapter 478 (electric transmission lines), Code chapter 27 479 (pipelines and underground gas storage), and Code chapter 28 479B (hazardous liquid pipelines and storage facilities). The 29 bill requires landowner communication consent, specified surety 30 bond amounts, liability, and damage provisions for permits 31 under the respective Code sections. 32 The bill prohibits the board from granting eminent domain 33 rights to an entity seeking those rights under Code chapters 34 476A, 478, 479, and 479B unless at least two-thirds of the 35 -14- LSB 2334XS (4) 90 es/rn 14/ 18
S.F. 346 affected parcels and two-thirds of the area of the proposed 1 project are first acquired through voluntary easements. The 2 board is prohibited from requiring more than 90 percent of the 3 easements to be voluntary. 4 The bill requires a person, company, or corporation seeking 5 a franchise under Code chapter 478 to satisfy a bond amount 6 with the board. The franchise must satisfy the board that 7 the franchisee has property in the state of a value over $1 8 million (not including the value of the proposed project) or 9 file and maintain with the board a surety bond of $1 million 10 or 1 percent of the project value with surety approved by 11 the board, conditioned that the franchisee will pay any and 12 all damages legally recovered against it growing out of the 13 construction or operation of the project in the state. When 14 a franchisee deposits security satisfactory to the board as a 15 guaranty for the payment of the damages or furnishes to the 16 board satisfactory proofs of its solvency and financial ability 17 to pay the damages, the franchisee shall be relieved of the 18 provisions requiring bond. 19 The bill prohibits persons seeking rights to construct 20 projects under Code chapter 478, 479, or 479B from contacting 21 landowners regarding negotiations for land acquisition without 22 first obtaining the landowners written consent allowing 23 communication. A person, company, or corporation seeking 24 to acquire an easement or other property interest shall not 25 contact a landowner unless first provided written consent by 26 the landowner. 27 The bill adds provisions to Code chapters 478, 479, and 28 479B requiring a person seeking to construct projects under 29 those chapters to be held liable for damages resulting from 30 construction, operation, or maintenance, including damages 31 resulting from an environmental disaster, to local livestock, 32 or other damages attributable to the construction, operation, 33 or maintenance. 34 The bill provides that a claim for damages related to 35 -15- LSB 2334XS (4) 90 es/rn 15/ 18
S.F. 346 future crop deficiency within an easement strip under Code 1 chapter 478 shall not be precluded from renegotiation under 2 Code section 6B.52 relating to eminent domain procedure for 3 the renegotiation of damages. The landowner shall notify the 4 franchisee in writing 14 days prior to harvest in each year 5 to assess crop deficiency or by providing global positioning 6 system yield monitoring data or similar assessment data 7 demonstrating crop deficiency to the company within 30 8 days of harvest. The bill modifies claims for future crop 9 deficiency damages pursuant to Code chapters 479 and 479B to 10 allow a landowner to notify a company in writing by providing 11 global positioning system yield monitoring data or similar 12 assessment data demonstrating crop deficiency to the company 13 within 30 days of harvest, and strikes language providing 14 that a settlement may expressly release a company from soil 15 productivity damage claims. 16 The bill creates new provisions relating to landowner 17 liability in Code chapters 478, 479, and 479B. The bill 18 provides that except where a landowners actions constitute 19 gross negligence and the landowner commits critical 20 infrastructure sabotage as defined in Code section 716.11 21 (relating to critical infrastructure sabotage definitions), 22 the landowner shall not be liable for any damages to a project 23 permitted under Code chapters 478, 479, and 479B. 24 The bill includes provisions relating to land restoration 25 standards. The bill adds a land restoration section in 26 Code chapter 478 that mirrors land restoration standards in 27 Code chapters 479 and 479B. The new Code section includes 28 requirements that the board adopt rules related to the 29 restoration of agricultural lands during and after transmission 30 line, wire, or cable construction and distribute notice of 31 intended actions to county boards of supervisors. Rules 32 shall include subject matters relating to topsoil, temporary, 33 permanent, and future drain tile issues, removal of rocks and 34 debris, soil compaction, terraces, waterways, and other erosion 35 -16- LSB 2334XS (4) 90 es/rn 16/ 18
S.F. 346 control structures, revegetation, restoration of land slope 1 and contour, restoration of field entrance and temporary road 2 areas, construction in wet conditions, and designation of a 3 franchisee point of contact. 4 The bill provides that a county board of supervisors may 5 require an on-site compliance inspection at any time to be 6 performed by a specialized licensed professional engineer. 7 The reasonable costs of the inspection shall be paid by the 8 franchisee. Notice of a violation relating to provisions 9 regarding land restoration, the land restoration plan created 10 by the franchisee and submitted to the board, or of an 11 independent agreement shall be given to the franchisee or a 12 contractor for the franchisee. Corrective action shall be 13 taken by the franchisee and the costs of the corrective action 14 shall be borne by the contractor of the franchisee. 15 The bill provides that a franchisee shall file a written 16 land restoration plan with their petition. The franchisee 17 shall provide copies of the plan to all landowners of property 18 that will be disturbed by the construction. The bill does not 19 preclude additional means of land protection or restoration 20 in addition to the plan, rules regarding the plan, or other 21 written agreements. 22 The bill provides that an inspector shall adequately 23 inspect underground improvements altered during transmission 24 line, wire, or cable construction, and the inspection shall 25 be conducted at the time of the replacement or repair of the 26 underground improvements. Additionally, an inspector shall 27 be present on-site at all times and the franchisee and its 28 contractor shall keep an inspector continually informed of 29 the work schedule and any schedule changes. The county board 30 of supervisors may petition the board for an order requiring 31 corrective action to be taken where the franchisee or its 32 contractor is in noncompliance. In addition, the county 33 board of supervisors may file a complaint with the board 34 seeking imposition of civil penalties of not more than $100 35 -17- LSB 2334XS (4) 90 es/rn 17/ 18
S.F. 346 per violation or $1,000 per day of a continuing violation, 1 whichever is greater, under Code section 478.29. 2 The bill provides that a franchisee shall allow landowners 3 and the inspector to view the proposed center line of the 4 transmission line, wire, or cable prior to commencing trenching 5 operations to ensure that construction takes place in its 6 proper location, and an inspector may temporarily halt the 7 construction for noncompliance until the inspector consults 8 with the supervisory personnel of the franchisee. The board 9 shall instruct appointed inspectors of the content of the 10 statutes and rules and the inspectors responsibility to 11 require compliant construction. 12 The bill modifies surety bond amounts for projects 13 constructed pursuant to Code chapters 479 and 479B. The 14 bill changes the amount that an applicant for a permit shall 15 demonstrate in property value (other than pipelines) in excess 16 of $1 million from $250,000. The bill also requires the 17 applicant to file and maintain with the board a surety bond 18 of $1 million or 1 percent of the project value, whichever is 19 lesser, from a surety bond of $250,000. 20 The bill is effective upon enactment and includes 21 applicability provisions. The bill applies to an application 22 for a permit pursuant to Code chapters 476A, 478, 479, and 23 479B where the first informational meeting for a petition is 24 held on or after the effective date of the bill, except where 25 otherwise provided. For sections of the bill relating to 26 liability regarding a landowners gross negligence and critical 27 infrastructure sabotage and sections of the bill regarding 28 petitioner responsibility for damages under Code chapters 29 478, 479, and 479B, the bill shall apply retroactively to all 30 applications for a permit under those Code chapters. 31 -18- LSB 2334XS (4) 90 es/rn 18/ 18