Iowa House Bill HF834 Latest Draft

                            House File 834 - Introduced   HOUSE FILE 834   BY COMMITTEE ON COMMERCE   (SUCCESSOR TO HSB 123)   A BILL FOR   An Act relating to energy systems by modifying electric power 1   generation, energy storage, and transmission facility 2   ratemaking principles, creating tariffs for public utility 3   innovation programs, implementing land restoration 4   standards, including right of first refusal, modifying 5   the energy infrastructure revolving loan program, and 6   creating regulations for anaerobic digester systems, making 7   appropriations, providing penalties, and including effective 8   date and applicability provisions. 9   BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 10   TLSB 1121HV (2) 91   sb/js  

  H.F. 834   DIVISION I 1   ELECTRIC POWER GENERATION, ENERGY STORAGE, AND TRANSMISSION 2   FACILITY RATEMAKING PRINCIPLES 3   Section 1. NEW SECTION   . 476.52A Definitions. 4   As used in this subchapter unless the context otherwise 5   requires: 6   1. Alternate energy production facility means the same as 7   defined in section 476.42. 8   2. Energy storage means any system, equipment, facility, 9   or technology that is capable of absorbing energy, storing the 10   energy for a period of time, and dispatching the energy through 11   one of the following manners: 12   a. Using mechanical, electrochemical, thermal, 13   electrolysis, or other processes to convert and store electric 14   energy that was generated at an earlier time for use at a later 15   time. 16   b. Using mechanical, electrochemical, biochemical, or 17   thermal processes to convert and store energy generated 18   from mechanical processes that would otherwise be wasted for 19   delivery at a later time. 20   c. Storing energy in an electric, thermal, or gaseous 21   state for direct use for heating or cooling at a later time 22   in a manner that avoids the need to use electricity or other 23   fuel sources at that later time, such as a grid-enabled water 24   heater. 25   3. Nuclear reactor means an apparatus designed to produce 26   electrical or heat energy through sustained nuclear fission in 27   a self-supporting chain reaction. 28   4. Repowering means either the complete dismantling and 29   replacement of generation equipment at an existing project 30   site, or the installation of new parts and equipment to an 31   existing alternate energy production facility in order to 32   increase energy production, reduce load, increase service 33   capacity, improve project reliability, or extend the useful 34   life of the facility. 35   -1-   LSB 1121HV (2) 91   sb/js   1/ 53   

  H.F. 834   Sec. 2. Section 476.53, subsection 1, Code 2025, is amended 1   to read as follows: 2   1. It is the intent of the general assembly to attract 3   the development of electric power generating , energy storage,   4   and transmission facilities within the state in sufficient 5   quantity to ensure reliable electric service to Iowa consumers , 6   ensure an adequate base load, and provide economic benefits to 7   the state. Ensuring reliable electric service and providing 8   economic benefits may require public utilities to consider   9   diverse electric power generating technologies and energy 10   storage technologies, including alternate energy production   11   facilities, nuclear reactors, and energy storage facilities. 12   It is also the intent of the general assembly to encourage 13   rate-regulated public utilities to consider altering existing 14   electric power   generating facilities, where when reasonable, 15   to manage carbon emission intensity in order to facilitate the 16   transition to a carbon-constrained environment. It is also the 17   intent of the general assembly to encourage the development   18   of nuclear electric power generation within the state using   19   nuclear reactors and to use nuclear power to meet local and 20   regional electric needs.   21   Sec. 3. Section 476.53, subsection 3, paragraphs a, b, c, 22   and d, Code 2025, are amended to read as follows: 23   a. The commission shall specify in advance, by order issued   24   after conduct a contested case proceeding , the ratemaking 25   principles that will apply when the costs of the electric power 26   generating facility or alternate energy production facility are 27   included in regulated electric rates whenever a rate-regulated 28   public utility does seeks ratemaking principles for any of the 29   following: 30   (1) (a) Files an application pursuant to   section 476A.3 31   to construct   The costs of constructing in Iowa a baseload an 32   electric power generating facility with a nameplate generating 33   capacity equal to or greater than three hundred   forty megawatts 34   or a combined-cycle electric power generating facility , or an 35   -2-   LSB 1121HV (2) 91   sb/js   2/ 53                                     

  H.F. 834   alternate energy production facility as defined in section 1   476.42 , or an energy storage facility,   or the construction 2   costs to significantly alter an existing electric power 3   generating facility , alternate energy production facility, or 4   energy storage facility   . For purposes of this subparagraph, 5   a significant alteration of an existing generating facility ,   6   alternate energy production facility, or energy storage 7   facility must, in order to qualify for establishment of 8   ratemaking principles, fall into one of the following 9   categories: 10   (i) Conversion of a coal fueled   an electric power generating 11   facility into a gas fueled to an alternate fuel type for the 12   electric power generating facility. 13   (ii) Addition of carbon capture and storage facilities at a   14   coal fueled to an existing electric power generating facility. 15   (iii) Addition of gas fueled capability to a coal fueled 16   facility, in order to convert the facility to one that will 17   rely primarily on gas for future generation   facilities to 18   capture exhaust heat and thereby generate additional electric   19   power at an existing electric power generating facility . 20   (iv)   Addition of a biomass fueled capability to a coal 21   fueled facility. 22   (v)   (iv) Repowering of an alternate energy production 23   facility. For purposes of this subparagraph subdivision, 24   repowering shall mean either the complete dismantling and 25   replacement of generation equipment at an existing project 26   site, or the installation of new parts and equipment to an 27   existing alternate energy production facility in order to 28   increase energy production, reduce load, increase service 29   capacity, improve project reliability, or extend the useful   30   life of the facility. 31   (v)   Addition of energy storage at an existing electric power 32   generating facility, alternate energy production facility, or 33   energy storage facility.   34   (b) With respect to a significant alteration of an 35   -3-   LSB 1121HV (2) 91   sb/js   3/ 53                                             

  H.F. 834   existing generating facility, an original facility shall 1   not be required to be either a baseload or a combined-cycle   2   facility. Only only the incremental investment undertaken 3   by a utility under subparagraph division (a), subparagraph 4   subdivision (i), (ii), or   (iii), or (iv) shall be eligible 5   to apply the ratemaking principles established by the order 6   issued pursuant to paragraph e . Facilities for which advanced   7   advance ratemaking principles are obtained pursuant to this 8   section shall not be subject to a subsequent commission review 9   pursuant to section 476.6, subsection 19 , to the extent that 10   the investment has been considered by the commission under 11   this section . To the extent an eligible utility has been 12   authorized to make capital investments subject to section 13   476.6, subsection 19 , such investments shall not be eligible 14   for ratemaking principles pursuant to this section . 15   (2) Leases or owns   When leased or owned in Iowa, in whole or 16   in part, a new baseload electric power generating facility with 17   a nameplate generating capacity equal to or greater than three   18   hundred   forty megawatts or a combined-cycle electric power 19   generating , a new energy storage facility, or a new alternate 20   energy production facility as defined in section 476.42 . 21   b. If the commission finds that the utilitys application   22   meets the requirements of paragraph   c , the commission shall 23   specify by order issued after the contested case proceeding 24   the ratemaking principles that will apply when the costs of 25   the electric power generating facility or alternate energy 26   production facility are included in regulated electric rates. 27   In determining the applicable ratemaking principles, the 28   commission shall not be limited to traditional ratemaking 29   principles or traditional cost recovery mechanisms. Among the 30   principles and mechanisms the commission may consider, the 31   commission has the authority to approve ratemaking principles 32   proposed by a rate-regulated public utility that provide for 33   reasonable restrictions upon the ability of the public utility 34   to seek a general increase in electric rates under section 35   -4-   LSB 1121HV (2) 91   sb/js   4/ 53                           

  H.F. 834   476.6 for at least three years after the generating facility 1   begins providing service to Iowa customers. 2   c. In determining the applicable ratemaking principles, the 3   commission shall make the following findings: 4   (1) The rate-regulated public utility has in effect a 5   commission-approved energy efficiency plan as required under 6   section 476.6, subsection 15 . 7   (2) The rate-regulated public utility has demonstrated to 8   the commission that the public utility has considered other 9   sources for long-term electric supply and that the facility or 10   lease is reasonable when compared to other feasible alternative 11   sources of supply. The rate-regulated public utility shall   12   provide support of reasonability with an electric utility 13   resource plan pursuant to section 476.53C that has been updated   14   no more than twenty-four months prior to the filing of the 15   public utilitys application. 16   d. The applicable ratemaking principles shall be determined 17   in a   contested case proceeding , which proceeding required by 18   paragraph   a may be combined with the proceeding for issuance 19   of a certificate conducted pursuant to chapter 476A . 20   Sec. 4. NEW SECTION   . 476.53B Commission authority and 21   proceedings. 22   The commission shall adopt rules pursuant to chapter 17A 23   to provide for the completion of proceedings under section 24   476.53 within ten months after the date of the filing of an 25   application under section 476.53, subsection 3. The rules 26   shall include reasonable time limitations for the submission or   27   completion of comments and testimony, and exhibits, briefs, and 28   hearings, and may provide for the granting of additional time 29   upon the request of a party to the proceeding for good cause 30   shown.   31   Sec. 5. NEW SECTION   . 476.53C Electric utility resource 32   planning. 33   1. An electric utility required to be rate-regulated by the 34   commission shall file a resource plan at least once every five 35   -5-   LSB 1121HV (2) 91   sb/js   5/ 53               

  H.F. 834   years. A resource plan shall consider all reasonable resources 1   proposed by the utility for meeting the probable future demand 2   for energy, including supply resources and conservation and 3   management of demand. For conservation and management of 4   demand, an electric utilitys resource plan shall include 5   programs approved in the electric utilitys most recent energy 6   efficiency plan approved by the commission under section 476.6, 7   subsection 15. The objectives of a resource plan include but 8   are not limited to adequate, cost-effective, and reliable 9   energy service considering costs, fuel diversity, and probable 10   future demand for energy. A resource plan shall not require a 11   specific outcome or specific investment decisions. A resource 12   plan shall reflect the circumstances and management judgment 13   of an electric utility. This section does not restrict an 14   electric utility from making planning decisions based on future 15   resource needs subject to the ratemaking oversight of the 16   commission. 17   2. The commission shall review a resource plan. Within 18   ninety days of filing the final resource plan, the commission 19   shall issue an order acknowledging it has received the plan. 20   In the order acknowledging receipt, the commission may provide 21   recommendations to an electric utility regarding any additional 22   analyses or actions that the electric utility should consider 23   completing in its next resource plan. 24   3. The commission shall adopt rules pursuant to chapter 25   17A regarding the timeline and stakeholder process to review 26   and provide comments on the resource plan. The stakeholder 27   process shall include the electric utility organizing and 28   facilitating a stakeholder conference for the resource plan. 29   The stakeholder conference shall include representatives of the 30   commission, the consumer advocate, and the electric utilitys 31   customers. The electric utility shall make a good faith effort 32   to inform and consider input from the commission, the consumer 33   advocate, and stakeholders. 34   DIVISION II   35   -6-   LSB 1121HV (2) 91   sb/js   6/ 53  

  H.F. 834   TARIFFS FOR PUBLIC UTILITY INNOVATION PROGRAMS 1   Sec. 6. Section 476.6, Code 2025, is amended by adding the 2   following new subsection: 3   NEW SUBSECTION   . 22. Innovative utility programs. 4   a. It is the intent of the general assembly to encourage 5   public utilities to pursue innovation in pricing and programs 6   to meet the dynamic needs of current and prospective customers, 7   enable price-responsive solutions, and to provide economic, 8   environmental, employment, and other benefits to the state. 9   It is also the intent of the general assembly that these 10   new endeavors shall not negatively impact nonparticipating 11   customers. Therefore, the general assembly declares that 12   innovative utility programs are essential to further the 13   attraction and retention of customers to benefit the states 14   economy and to support economical and sustainable energy 15   production. 16   b. (1) A tariff authorized under this subsection shall 17   comply with all of the following conditions: 18   (a) A program created under the tariff shall be available to 19   interested energy customers and customer participation shall 20   be optional. 21   (b) A tariff shall define the eligible customer groups. 22   (c) An eligible customer group shall not exclude directly 23   competing customers in the same customer service territory. 24   For purposes of this subparagraph, directly competing 25   customers means customers that make the same end product or 26   offer the same service for the same general group of customers, 27   and excludes customers that only produce component parts of the 28   same end product. 29   (d) Participating customers shall bear all program costs. 30   Program costs include direct costs associated with the 31   construction, operation, maintenance, and interconnection of 32   facilities, including new transmission infrastructure directly 33   arising from the tariff program and costs related to the 34   implementation of tariff programs. Participants in a tariff 35   -7-   LSB 1121HV (2) 91   sb/js   7/ 53   

  H.F. 834   approved pursuant to this section shall participate in future 1   indirect costs allocated to customers of that utility without 2   regard for the existence of a tariff approved pursuant to this 3   section. 4   (e) A tariff shall not alter the existing base rates or 5   charges of the public utility. Refund, credit, or waiver of 6   existing base rates or charges offered as part of the program 7   shall not be considered an alteration of existing base rates 8   or charges. 9   (f) The program created under the tariff shall not 10   negatively impact nonparticipating customers. Additional 11   costs incurred by nonparticipating customers due to costs 12   arising from the tariff, tariff participants no longer sharing 13   in customer class costs, or decreased customer benefit from 14   existing infrastructure shall be considered negative impacts. 15   (2) A tariff authorized under this subsection may include 16   any of the following: 17   (a) Recovery of costs associated with program-specific 18   services or facilities, including but not limited to energy 19   storage, renewable hydrogen, transmission, electric generating 20   facilities, electric distribution facilities, renewable natural 21   gas generation facilities, renewable natural gas distribution 22   facilities, utility-assisted hourly prices, or liquefied 23   natural gas facilities, or administrative and other overhead 24   costs relating to the same. 25   (b) A negotiated rate of return, for new or existing 26   facilities or services provided by the electric utility that 27   are serving the program created under the tariff, applicable to 28   the program for its duration. The use of existing facilities 29   would require reconciliation of impact to existing customers 30   and would no longer be subject to previously approved advance 31   ratemaking principles. In the event that the tariff or its 32   eligible customer class cease to exist, no charges shall be 33   imposed on or costs recovered from existing customers unless 34   approved in a general rate case. A utility may seek to 35   -8-   LSB 1121HV (2) 91   sb/js   8/ 53  

  H.F. 834   demonstrate the prudence, necessity, and use and usefulness 1   of program-specific facilities or services as defined in 2   subparagraph division (a) and recovery of costs for the same in 3   a general rate proceeding, without any presumption regarding 4   approval of such request. 5   (c) Application of the program to readily identifiable 6   customer usage patterns, customer characteristics, or output 7   of specified facilities. 8   (d) Assignment of program benefits, including nonmonetary 9   benefits that may derive from dynamically balancing supply and 10   demand, providing ancillary services, or the production of 11   renewable energy attributes. 12   (e) Refund, credit, or waive the base rate or charge for 13   the replaced service when the program created under the tariff 14   replaces a service for which the public utility collects an 15   existing base rate or charge. A participating customer shall 16   pay the costs of remaining services received from the public 17   utility unless those costs are refunded, credited, or waived 18   under the program created by the tariff. 19   (3) If a utility can demonstrate to the commission that 20   a proposed tariff generates excess revenue for the utility 21   as compared to total revenue without the tariff, such excess 22   revenue may be retained by the utility. 23   c. (1) A public utilitys participation under this 24   subsection is not mandatory. A public utility that elects to 25   propose a tariff or tariff amendment under this subsection 26   shall file an application for approval with the commission. 27   The application shall include an identification of costs and 28   benefits related to the program for the commissions review of 29   the conditions specified in paragraph b , subparagraph (1). 30   (2) Within thirty days, the commission shall approve, deny, 31   or docket for further review an application for a tariff or 32   amended tariff submitted pursuant to this subsection. If the 33   application is docketed for further review, the commission 34   shall render a decision within ninety days from the date of 35   -9-   LSB 1121HV (2) 91   sb/js   9/ 53  

  H.F. 834   application filing unless an objection has been filed with the 1   commission. If the application proposes to amend a tariff 2   previously approved under this subsection, the commission shall 3   not reconsider existing programs previously approved under the 4   tariff unless proposed as part of the amendment. All further 5   review shall be conducted as a contested case pursuant to 6   chapter 17A. 7   (3) If the application proposes to amend a tariff previously 8   approved under this subsection as described in paragraph b , 9   subparagraph (2), the commission shall act on the application 10   as described in subparagraph (2) of this paragraph, but shall 11   not reconsider existing programs previously approved under the 12   tariff unless proposed as part of the amendment. 13   (4) In the exercise of its authority under this subsection, 14   the commission shall not: 15   (a) Limit the number of applications a public utility may 16   file pursuant to this subsection. 17   (b) Deny a tariff because a public utility is subject to an 18   alternative regulatory mechanism, nor require a public utility 19   subject to an alternative regulatory mechanism to record the 20   revenues and costs associated with the program inconsistent 21   with the federal energy regulatory commissions uniform system 22   of accounts; provided, however, that this provision shall not 23   prohibit the utilities commission from denying a tariff if the 24   proposed tariff would result in detrimental treatment of other 25   customers, or require adjustment to the calculation of the 26   alternative regulatory mechanism to reflect the impact of an 27   approved tariff. 28   (c) Condition its approval on the public utility changing 29   its proposal if the public utility has not agreed to such 30   changes. This subparagraph division shall not be interpreted 31   to prevent the commission from identifying changes to the 32   proposal that might result in approval. 33   (5) Tariffs and programs approved pursuant to this 34   subsection shall be rebuttably presumed just and reasonable in 35   -10-   LSB 1121HV (2) 91   sb/js   10/ 53  

  H.F. 834   any subsequent general rate case proceeding. 1   d. The commission shall not condition approval or denial of 2   a tariff on final adoption of rules by the commission. 3   e. The commission shall adopt rules pursuant to chapter 17A 4   to implement this subsection. 5   Sec. 7. APPLICABILITY. This division of this Act applies 6   to a public utility filing an application with the utilities 7   commission for review of a tariff on or after the effective 8   date of this division of this Act. 9   DIVISION III 10   LAND RESTORATION  ELECTRIC TRANSMISSION LINES APPROVED BY 11   FEDERALLY REGISTERED PLANNING AUTHORITY TRANSMISSION PLANS 12   Sec. 8. Section 478.16, Code 2025, is amended to read as 13   follows: 14   478.16 Electric transmission lines  federally registered 15   planning authority transmission plans. 16   1.   Development and investment in high-voltage transmission 17   is urgently needed to ensure the reliable, adequate, secure,   18   and stable delivery of electricity to consumers. To ensure   19   reliable electric service to the people of Iowa as a matter 20   of public policy, it is the intent of the general assembly   21   to express a preference for further investment in Iowa 22   transmission infrastructure by electric transmission owners who   23   have already dedicated significant resources to develop the 24   infrastructure on which Iowans rely and who are better able to 25   provide reliable electric service to local electric utilities 26   and retail customers in Iowa. 27   1. 2. As used in this section , unless the context otherwise 28   requires: 29   a. Electric transmission line means a high-voltage 30   electric transmission line located in this state   with a   31   capacity   voltage of one hundred kilovolts or more and any 32   associated electric transmission facility, including any 33   substation or other equipment located in this state   . 34   b. Electric transmission owner means an individual 35   -11-   LSB 1121HV (2) 91   sb/js   11/ 53                     

  H.F. 834   or entity who, as of July 1, 2020, formed, located, or 1   headquartered in any state who   owns and maintains an 2   electric transmission line in this state that is required 3   for rate-regulated electric utilities, municipal electric 4   utilities, and rural electric cooperatives in this state   to 5   provide electric service to the public for compensation. 6   c. Incumbent electric transmission owner means any   an 7   individual or entity meeting the definition of the following: 8   (1)   A public utility or a municipally owned utility that 9   owns, operates, and maintains an electric transmission line in 10   this state.   11   (2) An electric cooperative corporation or association or 12   municipally owned utility that owns an electric transmission 13   facility in this state and has turned over the functional   14   control of such facility to a federally approved authority. 15   (3) An an electric transmission owner as defined in 16   paragraph b on or before July 1, 2024 . 17   d. Landowner   means the same as defined in section 478.2 18   Initial construction   means the construction necessary to 19   establish and place an electric transmission line into initial 20   operation   . 21   e. Load ratio share means the amount, expressed as a 22   percentage, of a public power utilitys electric load divided   23   by the total electric load in the applicable incumbent electric 24   transmission owners pricing zone. 25   e. f. Municipally owned utility means a city utility 26   as defined in section 362.2 , or an electric power agency as 27   defined in section 390.9 which that is comprised solely of 28   cities or solely of cities and other political subdivisions. 29   g.   Public power utility means a municipally owned utility 30   or an electric cooperative corporation or association that 31   receives transmission service from an incumbent electric   32   transmission owner, or that is subject to regional cost 33   allocation for the electric transmission line, or both.   34   h.   Qualified individual means someone who is capable and 35   -12-   LSB 1121HV (2) 91   sb/js   12/ 53                                                         

  H.F. 834   knowledgable enough to determine compliance with the standards 1   set forth in this section.   2   2. 3. a. An incumbent electric transmission owner has the 3   right to construct, own, and maintain an electric transmission 4   line that has been approved for construction in a federally 5   registered planning authority transmission plan and which that 6   directly connects to an electric transmission facility owned by 7   the incumbent electric transmission owner. Where a proposed 8   electric transmission line would directly   connect to electric 9   transmission facilities owned by two or more incumbent electric 10   transmission owners, each incumbent electric transmission owner 11   whose facility connects to the electric transmission line 12   has the right to construct, own, and maintain the electric 13   transmission line individually and equally. If an incumbent 14   electric transmission owner declines to construct, own, and 15   maintain its portion of an electric transmission line that 16   would connect to electric transmission facilities owned by 17   two or more incumbent electric transmission owners, then the 18   other incumbent electric transmission owner or owners that 19   own an electric transmission facility to which the electric 20   transmission line connects has the right to construct, own, and 21   maintain the electric transmission line individually. 22   b.   An eligible incumbent electric transmission owner 23   exercising the right to construct, own, and maintain an 24   electric transmission line pursuant to paragraph a shall 25   offer public power utilities an opportunity to jointly own a 26   portion of the electric transmission line and such offer shall 27   be in an amount not less than a public power utilitys load   28   ratio share, pursuant to a written agreement. Nothing in this 29   section shall be construed to prohibit an incumbent electric   30   transmission owner and a public power utility from agreeing to 31   joint ownership of an electric transmission line in an amount   32   different than the public power utilitys load ratio share. A   33   public power utility may transfer or assign joint ownership   34   rights acquired under this section to another public power 35   -13-   LSB 1121HV (2) 91   sb/js   13/ 53                             

  H.F. 834   utility or group of public power utilities by mutual consent of 1   the eligible contracting parties.   2   c. An eligible incumbent electric transmission owner 3   exercising the right to construct, own, and maintain an 4   electric transmission line pursuant to paragraph   a may 5   contract with another electric transmission owner or electric   6   public utility as defined in section 476.1 to jointly own a 7   portion of the electric transmission line pursuant to a written 8   agreement.   9   d. For purposes of this section, a municipally owned utility 10   or an electric cooperative corporation or association may elect   11   to be an incumbent electric transmission owner or a public 12   power utility but cannot act as both with respect to a single 13   transmission line.   14   3. 4. If an electric transmission line has been approved 15   for construction in a federally registered planning authority 16   transmission plan, and the electric transmission line is 17   not subject to a right of first refusal in accordance with 18   the tariff of a federally registered planning authority 19   and would otherwise be subject to a competitive developer   20   process   , then within the later of ninety days of approval for 21   construction or ninety days after enactment of this division 22   of this Act   , an incumbent electric transmission owner, or 23   owners if there is more than one owner, that owns a connecting 24   electric transmission facility shall give written notice 25   to the commission regarding whether the incumbent electric 26   transmission owner or owners intend to construct, own, and   27   maintain the electric transmission line. If the incumbent 28   electric transmission owner or owners give notice of intent 29   to construct the electric transmission line, the incumbent 30   electric transmission owner or owners shall follow the   31   applicable franchise requirements pursuant to this chapter . 32   The incumbent electric transmission owner shall update the   33   notice to construct an electric transmission line to include   34   information concerning the implementation of joint ownership 35   -14-   LSB 1121HV (2) 91   sb/js   14/ 53                                

  H.F. 834   as described in subsection 3, paragraphs b and c , within 1   thirty days after a written agreement has been reached between   2   the parties. If the incumbent electric transmission owner 3   or owners give notice declining to construct the electric 4   transmission line, the commission may determine whether another 5   person may construct the electric transmission line. 6   4. 5. For projects where for which an election to construct 7   an electric transmission line has been made under this section , 8   all of the following cost accountability measures shall apply: 9   a. Within thirty days after the issuance of a franchise 10   pursuant to this chapter for the electric transmission line, 11   the incumbent electric transmission owner or owners shall 12   provide to the commission an estimate of the cost to construct   13   complete the initial construction of   the electric transmission 14   line. 15   b. Until the initial construction of the electric 16   transmission line is complete, the incumbent electric 17   transmission owner or owners shall provide a quarterly report 18   to the commission, which shall include an updated estimate of 19   the cost to construct the electric transmission line ,   and an 20   explanation of changes in the cost estimate from the prior 21   cost estimate , and documentation that the incumbent electric   22   transmission owner or owners have used competitively bid   23   construction contracts that meet all the technical, commercial, 24   and other specifications, such as safety performance, that 25   are required by the incumbent electric transmission owner or 26   owners with respect to the initial construction of the electric 27   transmission line .   28   c.   The consumer advocate appointed under section 475A.1 29   shall have free access to documents, reports, and information   30   submitted to the commission pursuant to this subsection, 31   consistent with section 475A.4. To the extent relevant, the   32   commission and the consumer advocate may use the information 33   for any purpose properly within the scope of their respective   34   duties including but not limited to use in proceedings before 35   -15-   LSB 1121HV (2) 91   sb/js   15/ 53                                  

  H.F. 834   the federal energy regulatory commission to challenge the 1   costs incurred by the incumbent electric transmission owner.   2   However, this subsection does not create a private cause of 3   action or complaint. 4   5.   6. This section shall not modify the authority of the 5   commission under this chapter , the rights of landowners under 6   this chapter , or the requirements, rights, and obligations 7   relating to the construction, maintenance, and operation of 8   electric transmission lines pursuant to this chapter . 9   6.   7. This section shall not apply to an electric 10   transmission line to be placed underground that has not been 11   approved for construction in a federally registered planning 12   authority transmission plan. 13   7.   8. The commission shall adopt rules pursuant to chapter 14   17A to administer this section , which shall include rules 15   regarding the restoration of agricultural lands following the 16   initial construction of an electric transmission line, as 17   specified in subsection 9   . 18   9.   The commission shall adopt rules to implement the 19   following requirements, which shall not apply within the 20   corporate limits of a city or to any construction, activity, or   21   electric transmission lines other than the initial construction 22   of an electric transmission line with a voltage of two hundred   23   or more kilovolts and for which an election to construct has 24   been made under this section: 25   a. An incumbent electric transmission owner shall repair a 26   damaged underground drain tile as soon as practicable during 27   construction of the electric transmission line. Permanent 28   repairs to the damaged underground drain tile shall be 29   completed as soon as practicable after the initial construction   30   of the electric transmission line is complete. The repairs 31   made to the damaged drain tile shall be of at least equal   32   quality, size, and flow capacity of the original drain tile. 33   b.   Following the initial construction of an electric 34   transmission line, the incumbent electric transmission owner 35   -16-   LSB 1121HV (2) 91   sb/js   16/ 53                                       

  H.F. 834   shall remove from the easement area all rock larger than 1   three inches in average diameter not native to the soil of   2   the excavated land. The rock removed from the excavated land 3   that cannot be used to backfill shall be disposed of at a 4   location and in a manner agreed upon by the incumbent electric   5   transmission owner and the landowner.   6   c. Upon completion of construction activities on a property, 7   the incumbent electric transmission owner shall deep till 8   agricultural land, including right-of-way access points or   9   roads traversed by heavy construction equipment, to alleviate 10   soil compaction. The land shall be tilled at least eighteen   11   inches deep in land used for crop production and twelve 12   inches deep in other lands unless otherwise agreed to by the 13   landowner.   14   d. Upon completion of the electric transmission line, 15   the incumbent electric transmission owner shall restore the 16   soil conservation practices and structures damaged during 17   construction of the electric transmission line to the elevation   18   and grade existing on the land prior to the construction.   19   The soil used to repair embankments intended to retain water 20   shall be well compacted. Any vegetation disturbed during   21   construction shall be reestablished, including cover crops when 22   appropriate.   23   e. Following compaction of the land, agricultural land that 24   is not in row crop or small grain production at the time of 25   construction, including hay ground and land in conservation or 26   set-aside programs, shall be reseeded and a cover crop shall 27   be utilized when appropriate. Seeding for cover crops may be 28   delayed if the construction of the electric transmission line 29   is completed too late in the year for a cover crop to become   30   established and is not required if the land will be tilled in 31   the following year. The landowner may request ground cover   32   to prevent soil erosion in areas where construction on the 33   electric transmission line is completed if the season is not   34   suitable for seeding a cover crop. 35   -17-   LSB 1121HV (2) 91   sb/js   17/ 53                                           

  H.F. 834   f. Unless agreed upon by the incumbent electric transmission 1   owner and the landowner, the incumbent electric transmission   2   owner shall remove field entrances or temporary roads built for 3   the purpose of constructing the electric transmission line upon 4   the completion of the initial construction and restore the area   5   to its previous use.   6   g. An incumbent electric transmission owner shall use good 7   utility practices for constructing the electric transmission 8   line in wet conditions, such as electing to use matting or   9   padding when utilizing heavy equipment. An incumbent electric 10   transmission owner shall grade and till any rutted land to   11   restore, to the extent practicable, the original condition of 12   the land prior to the construction of the electric transmission 13   line. If agreed upon by the incumbent electric transmission   14   owner and the landowner, the landowner may repair any damage 15   caused by construction activities in wet conditions and the 16   incumbent electric transmission owner shall reimburse the 17   landowner for the reasonable cost incurred to repair the   18   damage. If an incumbent electric transmission owner utilizes   19   heavy equipment in wetlands or mudflats, mats or other measures 20   shall be utilized to minimize soil disturbance.   21   h. For each electric transmission line, the incumbent 22   electric transmission owner shall designate a point of   23   contact for inquiries or claims from an affected person. The 24   designation shall include a name, a telephone number, an email 25   address, and an address. 26   10. a. If an incumbent electric transmission owner and 27   a landowner dispute a potential violation of the restoration 28   standards provided in subsection 9, the commission may 29   appoint a qualified individual to inspect the property for   30   compliance. If the qualified individual determines that 31   there has been a violation of the applicable restoration   32   standards, the commission shall provide oral notice, followed 33   by written notice, to the incumbent electric transmission   34   owner and the contractor operating for the incumbent electric 35   -18-   LSB 1121HV (2) 91   sb/js   18/ 53                                               

  H.F. 834   transmission owner and order corrective action to comply with 1   the restoration standards. The incumbent electric transmission   2   owner shall be responsible for the costs of the corrective 3   action. 4   b.   If the incumbent electric transmission owner or the 5   contractor for the incumbent electric transmission owner does   6   not comply with a valid order for corrective action issued by 7   the commission, the commission may issue an order requiring 8   corrective action to be taken and may impose civil penalties   9   under section 478.29. 10   c.   The commission shall instruct the inspector appointed by 11   the commission regarding the content of the statutes and rules 12   and the responsibility of the inspector to require restoration 13   conforming with the standards established in subsection 9.   14   11. a. A petitioner for a franchise for an electric 15   transmission line shall file with the petition a written land 16   restoration plan that documents how the requirements and rules 17   of subsection 9 will be met. The petitioner shall provide a   18   copy of the plan to all landowners of property that will be   19   disturbed by the initial construction. 20   b.   Nothing in this section shall preclude the application 21   of provisions for protecting or restoring property that are 22   different than those prescribed in subsection 9, in rules   23   adopted under subsection 9, or in the land restoration plan, 24   if the alternative provisions are contained in agreements 25   independently executed by the incumbent electric transmission 26   owner and the landowner. Independent agreements for land 27   restoration between the incumbent electric transmission owner 28   and the landowner shall be in writing and provided to the 29   commission.   30   c. The commission may by waiver allow variations from 31   the requirements of subsection 9 if the incumbent electric   32   transmission owner requesting a waiver satisfies the standards 33   set forth in section 17A.9A and if the alternative methods   34   proposed by the incumbent electric transmission owner would 35   -19-   LSB 1121HV (2) 91   sb/js   19/ 53                                                 

  H.F. 834   restore the land to a condition as good as or better than as 1   provided for in subsection 9.   2   d. The commission may waive preparation of a separate 3   land restoration plan if the incumbent electric transmission 4   owner enters into an agricultural impact mitigation plan   5   or similar agreement with the appropriate agencies of this   6   state that satisfies the requirements of subsection 9. If a 7   mitigation plan or agreement is used to fully or partially meet 8   the requirements of a land restoration plan, the statement   9   or agreement shall be filed with the commission and shall be 10   considered to be, or to be part of, the land restoration plan   11   for purposes of subsection 9. 12   12. Nothing in this section shall limit, expand, or 13   otherwise modify the rights of access and obligations for   14   damages set forth in section 478.17. 15   Sec. 9. Section 478.18, Code 2025, is amended to read as 16   follows: 17   478.18 Supervision of construction  location. 18   1. The utilities commission shall have power of supervision 19   over the construction of a transmission line and over its 20   future operation and maintenance , including inspections for   21   compliance with the standards adopted under section 478.16 22   after restoration of the land is complete   . 23   2. A transmission line shall be constructed near and 24   parallel to roads, to the right-of-way of the railways of the 25   state, or along the division lines of the lands, according 26   to the government survey, wherever the same is practicable 27   and reasonable, and so as not to interfere with the use   28   by the public of the highways or streams of the state, nor 29   unnecessarily interfere with the use of any lands by the 30   occupant. 31   3.   The utilities commission may contract a qualified 32   individual for the purpose of inspections authorized under 33   section 478.16. The reasonable cost of the inspection shall   34   be paid by the incumbent electric transmission owner. The 35   -20-   LSB 1121HV (2) 91   sb/js   20/ 53                              

  H.F. 834   utilities commission shall instruct the inspector appointed by 1   the commission regarding the content of the statutes and rules   2   and the responsibility of the inspector to require restoration 3   conforming with the applicable standards established in section 4   478.16. For purposes of this section,   qualified individual 5   means the same as defined in section 478.16.   6   Sec. 10. EFFECTIVE DATE. This division of this Act, being 7   deemed of immediate importance, takes effect upon enactment. 8   Sec. 11. RETROACTIVE APPLICABILITY. With the exception 9   of the portion of the section of this division of this Act 10   amending section 478.16, subsection 3, paragraph b, this 11   division of this Act applies retroactively to transmission 12   lines included in a federally registered planning authority 13   long-term transmission plan approved on or after July 1, 14   2020. The portion of the section of this division of this 15   Act amending section 478.16, subsection 3, paragraph b, 16   shall apply retroactively to transmission lines included in a 17   federally registered planning authority long-term transmission 18   plan approved on or after July 1, 2024. 19   DIVISION IV 20   ENERGY AND WATER INFRASTRUCTURE REVOLVING LOAN PROGRAM 21   Sec. 12. Section 476.46A, Code 2025, is amended to read as 22   follows: 23   476.46A Energy and water   infrastructure revolving loan 24   program. 25   1. a. An energy and water infrastructure revolving loan 26   fund is created in the office of the treasurer of state and   27   shall be administered by the Iowa energy center   economic 28   development authority established in section 15.120 15.105 . 29   b. The fund may be administered as a revolving fund and may 30   consist of any moneys appropriated by the general assembly for 31   purposes of this section and any other moneys that are lawfully 32   directed to the fund.   33   c. Moneys in the fund shall be used to provide financial 34   assistance for the development and construction of energy or   35   -21-   LSB 1121HV (2) 91   sb/js   21/ 53                 

  H.F. 834   water infrastructure , including projects that support electric 1   or gas generation transmission, storage, or distribution;   2   electric grid modernization; energy-sector workforce 3   development; emergency preparedness for rural and underserved 4   areas; the expansion of biomass, biogas, and renewable   5   natural gas; innovative technologies; and the development of   6   infrastructure for alternative fuel vehicles that support 7   economic development . 8   d. Notwithstanding section 8.33 , moneys appropriated in this 9   section that remain unencumbered or unobligated at the close of 10   the fiscal year shall not revert but shall remain available for 11   expenditure for the purposes designated until the close of the 12   succeeding fiscal year. 13   e. Notwithstanding section 12C.7, subsection 2 , interest or 14   earnings on moneys in the fund shall be credited to the fund. 15   2. a. The Iowa energy center   economic development 16   authority shall establish and administer an energy and 17   water   infrastructure revolving loan program to encourage the 18   development of energy and water   infrastructure within the 19   state. 20   b. An individual, business, rural electric cooperative,   21   or municipal utility located and operating in this state 22   shall be eligible for financial assistance under the program.   23   With the approval of the Iowa energy center governing board 24   established under section 15.120, subsection 2 , the economic 25   development authority shall determine the amount and the 26   terms of all financial assistance awarded to an individual, 27   business, rural electric cooperative, or municipal utility 28   under the program. All agreements and administrative authority 29   shall be vested in the Iowa energy center governing board.   30   To be eligible for a financial assistance award under the 31   energy and water infrastructure revolving loan program, an   32   eligible borrower must demonstrate that the proposed project 33   will attract and encourage the location of new industrial   34   enterprise or the expansion of existing industrial enterprise. 35   -22-   LSB 1121HV (2) 91   sb/js   22/ 53                                   

  H.F. 834   Eligible borrowers may be awarded financial assistance 1   under the program for projects that support electric or gas   2   generation transmission, storage, or distribution; electric 3   grid modernization; energy sector workforce development; 4   emergency preparedness for rural and underserved areas; the   5   expansion of biomass, biogas, and renewable natural gas; or   6   innovative technologies and drinking water treatment systems 7   and wastewater treatment systems. The economic development 8   authority shall determine the amount and the terms of all   9   financial assistance awarded to an eligible borrower under the 10   program. All agreements and administrative authority shall be   11   vested in the economic development authority. The economic 12   development authority may adopt rules for the implementation of 13   this program.   14   c. The economic development authority may use not more than 15   five percent of the moneys in the fund at the beginning of each 16   fiscal year for purposes of administrative costs, marketing, 17   technical assistance, and other program support. 18   d.   Each fiscal year beginning July 1, 2025, the economic 19   development authority shall be authorized to transfer an amount 20   not to exceed six hundred thirty-three thousand dollars from   21   the energy and water infrastructure revolving loan fund to Iowa 22   state university of science and technology to be used for the   23   purposes of providing financial assistance to the state load 24   forecasting center. 25   3. For the purposes of this section : 26   a. Eligible borrower means an individual, business, 27   county, city, rural electric cooperative, or municipal utility 28   located and operating in this state. 29   a.   b. Energy infrastructure means land, buildings, 30   physical plant and equipment, and services directly related 31   to the development of projects used for, or useful for, 32   electricity or gas generation, transmission, storage, or 33   distribution. 34   b.   c. Financial assistance means the same as defined in 35   -23-   LSB 1121HV (2) 91   sb/js   23/ 53                                   

  H.F. 834   section 15.102 . 1   d.   Water infrastructure means water pollution control 2   facilities useful for the collection, treatment, and disposal 3   of sewage and industrial waste in a sanitary manner and 4   drinking water facilities useful for providing potable water to   5   residents served by a water system.   6   DIVISION V 7   ANAEROBIC DIGESTER SYSTEMS 8   Sec. 13. NEW SECTION   . 459C.101 Title. 9   This chapter shall be known and may be cited as the Animal 10   Agriculture Compliance Act for Anaerobic Digester Systems . 11   Sec. 14. NEW SECTION   . 459C.102 Definitions. 12   1. For purposes of this chapter, unless the context 13   otherwise requires: 14   a. Anaerobic digester system or digester means a covered 15   manure storage structure, if the function of the manure storage 16   structure is to process manure, by employing environmental 17   conditions including bacteria to break down organic matter in 18   the absence of oxygen, and is used for producing, collecting, 19   and utilizing a biogas, and may also process on-farm and 20   off-farm organic feedstocks, and food products or food for 21   human consumption if approved by the department pursuant to 22   section 459C.201, subsection 4. Anaerobic digester system 23   also includes related buildings, storage structures, transfer 24   pipes, and stockpiles associated with the digester process. 25   b. Digestate means the dry or liquid nutrient-rich 26   material that remains after the anaerobic digestion of organic 27   matter, such as agricultural residues, food waste, or manure. 28   c. Off-farm organic feedstocks means organic materials 29   that originate from outside the farm but can be used within 30   farming systems, particularly for soil enrichment, composting, 31   or other agricultural purposes. 32   d. On-farm organic feedstocks means organic materials 33   that are produced as by-products of farming activities that 34   typically come from plant or animal sources and may include 35   -24-   LSB 1121HV (2) 91   sb/js   24/ 53            

  H.F. 834   crop residues and other organic waste generated during farm 1   operations. 2   e. Owner means the person who owns an anaerobic digester 3   system. 4   2. Where not in conflict with the definitions set out in 5   subsection 1, the definitions provided in sections 459.102, 6   459A.102, and 459B.102 shall control. 7   Sec. 15. NEW SECTION   . 459C.103 General authority  8   commission and department  purpose  compliance. 9   1. The commission shall establish, by rule adopted pursuant 10   to chapter 17A, requirements relating to the construction, 11   including expansion, or operation of anaerobic digester 12   systems, including related buildings, storage structures, 13   transfer pipes, and stockpiles. 14   2. The purpose of this chapter is to provide requirements 15   relating to the construction, including the expansion, and 16   operation of anaerobic digester systems and the control of 17   digestate, which purpose shall be construed to supplement 18   applicable provisions of chapters 459, 459A, and 459B. If 19   there is a conflict between the provisions of this chapter and 20   chapters 459, 459A, and 459B, the provisions of this chapter 21   shall prevail. 22   Sec. 16. NEW SECTION   . 459C.201 Anaerobic digester systems 23    permit requirements. 24   1. The department shall approve applications for permits 25   for the construction, including the expansion, of anaerobic 26   digester systems, as provided by rules adopted pursuant to this 27   chapter. The departments decision to approve a permit for the 28   construction of an anaerobic digester system shall be based on 29   whether the application is submitted according to procedures 30   required by the department and the application meets standards 31   established by the department. Construction of an anaerobic 32   digester system requiring a permit under this section shall not 33   begin until the department first approves the application and 34   issues a construction permit. 35   -25-   LSB 1121HV (2) 91   sb/js   25/ 53    

  H.F. 834   2. In addition to the construction permit application under 1   subsection 1, the following must be submitted in order for the 2   department to approve the application: 3   a. A two hundred fifty dollar construction permit 4   application fee. 5   b. A written plan for the disposal of the digestate. 6   c. A written operation plan for the anaerobic digester 7   system detailing the responsibilities of all owners, animal 8   feeding operations, or other entities involved in the anaerobic 9   digester system processes. 10   3. Every anaerobic digester system shall obtain a 11   construction permit, regardless of size of the anaerobic 12   digester system or facility. The owner of the anaerobic 13   digester system is considered the applicant and shall be 14   responsible for the construction and operation of the anaerobic 15   digester system. 16   4. a. Every anaerobic digester system is intended to accept 17   only manure unless department approval is obtained for the 18   inclusion of on-farm and off-farm organic by-products, food 19   products, or food for human consumption. Nonmanure material 20   shall not exceed ten percent of the total material added to the 21   anaerobic digester system. 22   b. Daily records of the volumes of all materials added 23   to the anaerobic digester system shall be required to be 24   maintained at the facility. 25   c. The department may require additional testing or 26   monitoring of any manure or nonmanure component being added 27   to the anaerobic digester system. The department may require 28   additional testing of the digestate. 29   d. Medical wastes, including expired or unused antibiotics, 30   petroleum products not designed for use in manure storage 31   facilities, pesticides, paints, solvents, hazardous materials, 32   municipal or sanitary waste or sludge, industrial wastewater, 33   contaminated feedstock, slaughterhouse wastes, and residues 34   from processing of food materials that have not been deemed 35   -26-   LSB 1121HV (2) 91   sb/js   26/ 53  

  H.F. 834   acceptable for human consumption shall not be processed in the 1   anaerobic digester system. 2   Sec. 17. NEW SECTION   . 459C.202 Construction design standard 3    anaerobic digester systems. 4   1. The department shall adopt rules establishing 5   construction design standards for formed manure storage 6   structures that are part of an anaerobic digester system. 7   2. The construction design standards shall be based, to 8   every extent possible, upon uniform standards such as available 9   standards promulgated by the American society for testing and 10   materials international. The department may require that all 11   or part of a formed manure storage structure be constructed of 12   concrete. 13   3. The construction design standards for concrete shall 14   provide for all of the following: 15   a. The concretes minimum compressive strength calculated on 16   a pounds-per-square-inch basis. 17   b. The use of reinforcement, including but not limited to 18   the grade, amount, and location of steel rebar, fiberglass, or 19   similar materials set in the concrete, or the use of exterior 20   braces to support joints. 21   c. The depth of footings. 22   d. The thickness of the footings, the floor, and walls. 23   4. A person shall only construct a formed manure storage 24   structure on karst terrain or an area that drains into a known 25   sinkhole pursuant to upgraded construction design standards 26   necessary to ensure that the structure does not pollute 27   groundwater sources. The construction of unformed manure 28   storage structures is prohibited on karst terrain. 29   Sec. 18. NEW SECTION   . 459C.203 Distance requirements. 30   1. Water quality related requirements. 31   a. Except as provided in paragraph b , the following 32   requirements shall apply to the location of an anaerobic 33   digester system manure storage structure: 34   (1) An anaerobic digester system manure storage structure 35   -27-   LSB 1121HV (2) 91   sb/js   27/ 53    

  H.F. 834   shall not be constructed closer than five hundred feet away 1   from the surface intake of an agricultural drainage well. An 2   anaerobic digester system manure storage structure shall not 3   be constructed closer than two thousand feet from a wellhead, 4   cistern of an agricultural drainage well, or known sinkhole. 5   (2) An anaerobic digester system manure storage structure 6   shall not be constructed if the anaerobic digester system 7   manure storage structure as constructed is closer than any of 8   the following: 9   (a) Five hundred feet away from a water source other than a 10   major water source. 11   (b) One thousand feet away from a major water source. 12   (c) Two thousand five hundred feet away from a designated 13   wetland. 14   (3) (a) A water source, other than a major water source, 15   shall not be constructed, expanded, or diverted, if the water 16   source as constructed, expanded, or diverted is closer than 17   five hundred feet away from an anaerobic digester system manure 18   storage structure. 19   (b) A major water source shall not be constructed, expanded, 20   or diverted, if the major water source as constructed, 21   expanded, or diverted is closer than one thousand feet from an 22   anaerobic digester system manure storage structure. 23   (c) A designated wetland shall not be established, if the 24   designated wetland is closer than two thousand five hundred 25   feet away from an anaerobic digester system manure storage 26   structure.   27   (4) An anaerobic digester system manure storage structure 28   shall not be constructed on land that is part of a one 29   hundred year floodplain as designated by rules adopted by the 30   department pursuant to section 459.301. 31   b. A separation distance required in paragraph a shall not 32   apply to any of the following: 33   (1) A location or object and a farm pond or privately owned 34   lake, as defined in section 462A.2.   35   -28-   LSB 1121HV (2) 91   sb/js   28/ 53  

  H.F. 834   (2) An anaerobic digester system manure storage structure 1   constructed with a secondary containment barrier. The 2   department shall adopt rules providing for the construction and 3   use of a secondary containment barrier, including construction 4   design standards. 5   2. Air quality related requirements. 6   a. Except as provided in paragraph b , the following 7   requirements shall apply to the location of an anaerobic 8   digester system manure storage structure: 9   (1) An anaerobic digester system manure storage structure 10   shall not be constructed closer than three thousand feet from 11   a residence not owned by the owner of the anaerobic digester 12   system or the owner of the animal feeding operation where the 13   anaerobic digester system is located; a bona fide religious 14   institution; a public use area; a commercial enterprise; or an 15   educational institution. 16   (2) An anaerobic digester system manure storage structure 17   shall not be constructed closer than one hundred feet from a 18   public thoroughfare. 19   b. A separation distance required in paragraph a shall not 20   apply to any of the following: 21   (1) (a) An anaerobic digester system manure storage 22   structure that is constructed or expanded, if the titleholder 23   of the land benefiting from the distance separation requirement 24   executes a written waiver with the titleholder of the land 25   where the structure is located. If an anaerobic digester 26   system manure storage structure is constructed or expanded 27   within the separation distance required between an anaerobic 28   digester system manure storage structure and a public 29   thoroughfare, the state or a political subdivision constructing 30   or maintaining the public thoroughfare benefiting from the 31   distance separation requirement may execute a written waiver 32   with the titleholder of the land where the structure is 33   located. 34   (b) A written waiver under this subsection becomes 35   -29-   LSB 1121HV (2) 91   sb/js   29/ 53  

  H.F. 834   effective only upon the recording of the waiver in the office 1   of the recorder of the county in which the benefited land is 2   located. The filed waiver shall preclude enforcement by the 3   state as it relates to a distance requirement between the 4   anaerobic digester system manure storage structure and the 5   location or object benefiting from the separation distance 6   requirement. 7   (2) An anaerobic digester system manure storage structure 8   that is constructed or expanded within any distance from a 9   residence, educational institution, commercial enterprise, bona 10   fide religious institution, city, or public use area, if the 11   residence, educational institution, commercial enterprise, or 12   bona fide religious institution was constructed or expanded, or 13   the boundaries of the city or public use area were expanded, 14   after the date that the anaerobic digester system manure 15   storage structure was established. The date the anaerobic 16   digester system manure storage structure was established is 17   the date on which the anaerobic digester system commenced 18   operating. A change in ownership or expansion of the anaerobic 19   digester system shall not change the established date of 20   operation. 21   Sec. 19. NEW SECTION   . 459C.301 Minimum requirements for 22   digestate control. 23   1. An anaerobic digester system shall retain all digestate 24   produced by the operation between periods of digestate disposal 25   or delivery to animal feeding operations. For purposes of 26   this section, dry digestate may be retained by stockpiling as 27   provided in this subchapter. An anaerobic digester system 28   shall not discharge digestate directly into water of the state 29   or into a tile line that discharges directly into water of the 30   state.   31   2. Digestate from an anaerobic digester system shall be 32   disposed of in a manner that will not cause surface water or 33   groundwater pollution. 34   3. The owner of the anaerobic digester system that 35   -30-   LSB 1121HV (2) 91   sb/js   30/ 53   

  H.F. 834   discontinues the use of the operation shall remove all 1   digestate from related anaerobic digester system structures 2   used to store digestate within six months following the date 3   that the anaerobic digester system is discontinued. 4   Sec. 20. NEW SECTION . 459C.302 Disposal of digestate 5   requirements. 6   1. If digestate is returned to an animal feeding operation 7   for land application, the material must be accounted for in the 8   animal feeding operations manure management plan or nutrient 9   management plan. 10   2. For any portion of the digestate not returned to an 11   animal feeding operation, the owner of the anaerobic digester 12   system shall satisfy all applicable law for proper application 13   of the digestate. 14   Sec. 21. NEW SECTION   . 459C.401 Stockpiling requirements. 15   1. An anaerobic digester system may stockpile materials 16   prior to digestation or dry digestate so long as the facility 17   stockpiles the materials and dry digestate in compliance with 18   restrictions applicable to stockpiling as provided in this 19   subchapter. 20   2. Anaerobic digester system stockpiles shall not be 21   commingled with animal feeding operation stockpiles. 22   3. A person shall not stockpile the materials and dry 23   digestate within the following distances from any of the 24   following: 25   a. A terrace tile inlet or surface tile inlet, two hundred 26   feet. However, this paragraph does not apply to a person who 27   stockpiles the dry digestate in a manner that does not allow 28   precipitation-induced runoff to drain from the stockpile to the 29   terrace tile inlet or surface tile inlet. A terrace tile inlet   30   or surface tile inlet does not include a tile inlet that is not   31   directly connected to a tile line that discharges directly into 32   a water of the state. 33   b. (1) A designated area, four hundred feet. However, an 34   increased separation distance of eight hundred feet shall apply 35   -31-   LSB 1121HV (2) 91   sb/js   31/ 53    

  H.F. 834   to all of the following: 1   (a) A high-quality water resource. 2   (b) An agricultural drainage well. 3   (c) A known sinkhole. 4   (2) Subparagraph (1) does not apply to a person who 5   stockpiles materials or dry digestate in a manner that does not 6   allow precipitation-induced runoff to drain from the stockpile 7   to the designated area. 8   c. One thousand two hundred fifty feet from a residence 9   not owned by the owner of the anaerobic digester system or 10   the owner of the animal feeding operation where the anaerobic 11   digester system is located; a bona fide religious institution; 12   a public use area; a commercial enterprise; or an educational 13   institution. 14   4. A person shall not stockpile materials or dry digestate 15   in a grassed waterway. 16   5. A person shall not stockpile materials or dry digestate 17   on land having a slope of more than three percent. However, 18   this subsection shall not apply to a person who stockpiles 19   materials or dry digestate using methods, structures, or 20   practices that contain the stockpile, including but not limited 21   to silt fences, temporary earthen berms, or other effective 22   measures, and that prevent or diminish precipitation-induced 23   runoff from the stockpile. 24   6. A person stockpiling materials or dry digestate on 25   terrain, other than karst terrain, for more than fifteen 26   consecutive days shall comply with any of the following: 27   a. Stockpile materials or dry digestate using a qualified 28   stockpile structure or qualified stockpile cover. However, the 29   person shall not stockpile materials or dry digestate using a 30   qualified stockpile cover at a long-term stockpile location 31   unless the person stockpiles the materials or dry digestate 32   on compacted soil, compacted granular aggregates, asphalt, 33   concrete, or other similar materials.   34   b. Deliver a stockpile inspection statement to the 35   -32-   LSB 1121HV (2) 91   sb/js   32/ 53  

  H.F. 834   department by the fifteenth day of each month in writing, which 1   may be on a form prescribed by the department. The stockpile 2   inspection statement shall provide the location of the 3   stockpile and document the results of an inspection conducted 4   by the person during the previous month. The inspection must 5   evaluate whether precipitation-induced runoff is draining 6   away from the stockpile and, if so, describe actions taken 7   to prevent the runoff. If an inspection by the department 8   documents that precipitation-induced runoff is draining away 9   from a stockpile, the person shall immediately remove dry 10   digestate from the stockpile in compliance with this chapter 11   or comply with all directives of the department to prevent the 12   runoff. 13   7. A person stockpiling materials or dry digestate on karst 14   terrain shall comply with all of the following: 15   a. If the proposed stockpile is located in potential karst 16   terrain, a professional engineer licensed in Iowa or a staff 17   person or organization qualified through the Iowa natural 18   resource conservation service shall submit a soil report to 19   the department, based on the results from soil corings, test 20   pits, or acceptable well log data, describing the subsurface 21   materials and vertical separation distance from the proposed 22   bottom of the stockpile to the underlying limestone, dolomite, 23   or soluble rock. A minimum of two soil corings spaced equally 24   within the stockpile location or two test pits located within 25   five feet of the outside of the stockpile location are required 26   if acceptable well log data is not available. The soil 27   corings shall be taken to a minimum depth of twenty-five feet 28   below the bottom elevation of the proposed stockpile or into 29   bedrock, whichever is shallower. After the soil exploration 30   is complete, each coring or test pit shall be properly plugged 31   with concrete grout, bentonite, or similar materials and 32   completion of this activity shall be documented in the soil 33   report. If a twenty-five-foot vertical separation distance can 34   be maintained between the bottom of the proposed stockpile and 35   -33-   LSB 1121HV (2) 91   sb/js   33/ 53  

  H.F. 834   limestone, dolomite, or other soluble rock, then the structure 1   is not considered to be in karst terrain. 2   b. The person shall stockpile the dry digestate at a 3   location where there is a vertical separation distance of at 4   least five feet between the bottom of the stockpile and the 5   underlying limestone, dolomite, or other soluble rock. 6   c. A person who stockpiles materials or dry digestate 7   for more than fifteen consecutive days shall use any of the 8   following: 9   (1) A qualified stockpile structure. 10   (2) A qualified stockpile cover. However, the person shall 11   not stockpile materials or dry digestate using a qualified 12   stockpile cover at a long-term stockpile location unless the 13   stockpile is located on reinforced concrete at least five 14   inches thick. 15   8. A person stockpiling materials or dry digestate shall 16   comply with applicable national pollutant discharge elimination 17   system permit requirements pursuant to the federal Water 18   Pollution Control Act, 33 U.S.C. ch. 26, as amended, and 40 19   C.F.R. pts. 122 and 412. 20   9. A person stockpiling materials or dry digestate shall 21   remove the dry digestate and apply it in accordance with 22   the provisions of this chapter within six months after the 23   materials or dry digestate are first stockpiled. 24   Sec. 22. NEW SECTION   . 459C.501 General enforcement. 25   The department and the attorney general shall enforce the 26   provisions of this chapter in the same manner as provided in 27   chapter 459, subchapter VI. 28   Sec. 23. NEW SECTION   . 459C.502 Violations  civil penalty. 29   A person who violates a provision of this chapter for which 30   the alleged harm is related to air quality shall be subject 31   to the same penalty as provided in section 459.602. A person 32   who violates a provision of this chapter for which the alleged 33   harm is related to water quality shall be subject to the same 34   penalties and restrictions as provided in section 459.603. A 35   -34-   LSB 1121HV (2) 91   sb/js   34/ 53    

  H.F. 834   habitual violator of the provisions of this chapter shall be 1   subject to the same penalties and restrictions as provided in 2   sections 459.604 and 459.605. Any collected civil penalty 3   and interest on a civil penalty shall be credited to the Iowa 4   nutrient research fund created in section 466B.46. 5   Sec. 24. CODE EDITOR DIRECTIVE. 6   1. The Code editor shall designate sections 459C.101 7   through 459C.502, as enacted by this division of this Act, as 8   new chapter 459C, entitled Anaerobic Digester Systems. 9   2. The Code editor shall designate sections 459C.101 10   through 459C.103, as enacted by this division of this Act, 11   as a new subchapter within chapter 459C, entitled General 12   Provisions. 13   3. The Code editor shall designate sections 459C.201 14   through 459C.203, as enacted by this division of this Act, as 15   a new subchapter within chapter 459C, entitled Construction 16   Provisions. 17   4. The Code editor shall designate sections 459C.301 18   through 459C.302, as enacted by this division of this Act, 19   as a new subchapter within chapter 459C, entitled Digestate 20   Disposal. 21   5. The Code editor shall designate section 459C.401, as 22   enacted by this division of this Act, as a new subchapter 23   within chapter 459C, entitled Stockpiling Provisions. 24   6. The Code editor shall designate sections 459C.501 25   through 459C.502, as enacted by this division of this Act, as 26   a new subchapter within chapter 459C, entitled Enforcement 27   Provisions. 28   EXPLANATION 29   The inclusion of this explanation does not constitute agreement with 30   the explanations substance by the members of the general assembly. 31   This bill relates to rate-regulated utilities by modifying 32   provisions relating to electric power generation, energy 33   storage, and transmission facility ratemaking principles, 34   creating tariffs for public utility innovation programs, 35   -35-   LSB 1121HV (2) 91   sb/js   35/ 53  

  H.F. 834   implementing land restoration standards, and modifying the 1   energy infrastructure revolving loan program. 2   Division I of the bill modifies intent language to reflect 3   an intent to attract energy storage and develop nuclear power 4   generation for consumers in the state. 5   Division I of the bill alters ratemaking principle 6   processes and modifies when a rate-regulated public utility 7   may seek ratemaking principles. In addition to electric 8   power generating facilities and alternate energy production 9   facilities, the utilities commission (commission) may specify 10   the ratemaking principles applying to an energy storage 11   facility. 12   Division I of the bill provides that a rate-regulated 13   public utility may seek ratemaking principles from the 14   commission when there are construction-related costs of an 15   electric power generating facility with a nameplate generating 16   capacity equal to or greater than 40 megawatts, an alternate 17   energy production facility, or an energy storage facility, 18   or significant alterations to an existing electric power 19   generating facility, alternate energy production facility, 20   or energy storage facility. Current law generally provides 21   that when a rate-regulated public utility files an application 22   to construct a baseload electric power generating facility 23   with a nameplate generating capacity equal to or greater than 24   300 megawatts or a combined-cycle electric power generating 25   facility or an alternate energy production facility, or to 26   significantly alter an existing generating facility or a new 27   alternate energy production facility, the commission shall 28   specify in advance the ratemaking principles that will apply. 29   Division I of the bill modifies the requirements for a 30   significant alteration of an existing generating facility 31   to qualify for the establishment of ratemaking principles. 32   Division I of the bill provides that to qualify for ratemaking 33   principles, the significant alteration can convert an electric 34   power generating facility to an alternate fuel type, add 35   -36-   LSB 1121HV (2) 91   sb/js   36/ 53  

  H.F. 834   carbon capture and carbon storage to an electric power 1   generating facility, add a facility to capture exhaust heat to 2   an electric power generating facility, repower an alternate 3   energy production facility, or add energy storage to an 4   existing electric power generating facility, alternate energy 5   production facility, or energy storage facility. Current 6   law provides that to qualify for ratemaking principles, the 7   significant alteration can convert a coal-fueled facility into 8   a gas-fueled facility, add carbon capture and carbon storage 9   to a coal-fueled facility, add gas-fueled capability to a 10   coal-fueled facility, add a biomass-fueled capability to a 11   coal-fueled facility, or repower an alternate energy production 12   facility. 13   Division I of the bill provides that a utility investment to 14   convert an electric power generating facility to a different 15   fuel type, add carbon capture and carbon storage to an electric 16   power generating facility, or add a fuel type to an electric 17   power generating facility shall be eligible to apply the 18   ratemaking principles established by an order issued prior to 19   construction or lease of a facility. 20   Division I of the bill provides that a rate-regulated 21   public utility may seek ratemaking principles for leasing 22   or owning a new electric power generating facility with a 23   nameplate generating capacity equal to or greater than 40 24   megawatts, a new energy storage facility, or a new alternate 25   energy production facility. Current law provides that 26   a rate-regulated public utility leasing or owning a new 27   baseload electric power generating facility with a nameplate 28   generating capacity equal to or greater than 300 megawatts, 29   a combined-cycle electric power generating facility, or a 30   new alternate energy production facility may seek ratemaking 31   principles. 32   Division I of the bill requires the commission to issue an 33   order after the contested case proceeding that the ratemaking 34   principles will apply when the costs of the electric power 35   -37-   LSB 1121HV (2) 91   sb/js   37/ 53  

  H.F. 834   generating facility or alternate energy production facility 1   are included in regulated electric rates once the commission 2   finds that the rate-regulated public utilitys application for 3   ratemaking principles meets all the commissions requirements. 4   Division I of the bill requires a rate-regulated public 5   utility seeking ratemaking principles to provide support of 6   reasonability with an electric utility resource plan that has 7   been updated within 24 months of filing the application. 8   Division I of the bill requires the commission to adopt 9   rules for proceedings to conclude 10 months after a petition is 10   filed. 11   Division I of the bill requires rate-regulated electric 12   utilities to file a resource plan at least once every five 13   years. The resource plan must consider all reasonable 14   resources by the utility for meeting the probable future demand 15   for energy, including supply resources and conservation and 16   management of demand. For conservation and management of 17   demand, the resource plan shall include programs approved in 18   the electric utilitys most recently approved energy efficiency 19   plan. The objectives of the resource plan include but are 20   not limited to adequate, cost-effective, and reliable energy 21   service considering costs, fuel diversity, and probable future 22   demand for energy, and should reflect the circumstances and 23   management judgment of the electric utility. The resource 24   plan does not require specific outcomes or specific investment 25   decisions. 26   Division I of the bill directs the commission to issue an   27   order within 90 days of the resource plan acknowledging receipt 28   of the plan. This order may provide recommendations to an 29   electric utility regarding any additional analyses or actions 30   that the electric utility should consider completing in its 31   next resource plan. 32   Division I of the bill directs the commission to adopt rules 33   regarding the timeline and stakeholder process to review and 34   provide comments on the resource plan. The stakeholder process 35   -38-   LSB 1121HV (2) 91   sb/js   38/ 53  

  H.F. 834   shall include the electric utility organizing and facilitating 1   a stakeholder conference with representatives of the 2   commission, the consumer advocate, and the electric utilitys 3   customers. Division I of the bill directs the electric utility 4   to make a good faith effort to inform and consider input from 5   the commission, the consumer advocate, and stakeholders. 6   Division II of the bill provides that it is the intent of 7   the general assembly to encourage public utility innovation 8   in pricing and programs, and that the new innovations not 9   negatively impact nonparticipating customers. Division II 10   of the bill additionally provides that it is the intent of 11   the general assembly to attract and retain customers for the 12   benefit of the states economy, support of economical energy 13   production, and support of sustainable energy production. 14   Division II of the bill authorizes a tariff program. 15   Division II of the bill provides that a tariff shall comply 16   with several provisions. The tariff shall be optional for 17   customers, define eligible customer groups, and assess 18   program costs to participating customers. Program costs 19   shall include specified direct costs arising from the tariff 20   program and costs related to the implementation of tariff 21   programs. Participants of a tariff program shall participate 22   in future indirect costs allocated to customers of that 23   utility without regard for the existence of an approved tariff. 24   The tariff shall not allow for an eligible customer group 25   excluding directly competing customers in the same customer 26   service territory, alter existing base rate or charges of 27   the public utility, or negatively impact nonparticipating 28   customers. Negative impacts include additional costs incurred 29   by nonparticipating customers due to costs arising from the 30   tariff, tariff participants no longer sharing in customer 31   class costs, or decreased customer benefit from existing 32   infrastructure. 33   Division II of the bill explains that a tariff may include 34   provisions relating to recovery of costs, rate of return, 35   -39-   LSB 1121HV (2) 91   sb/js   39/ 53  

  H.F. 834   application of the program to other specified patterns, program 1   benefits, and refunds, credits, or waivers when the program 2   replaces an existing service, or recovery of costs associated 3   with existing facilities. A participating program customer 4   shall pay the costs of the services received from the public 5   utility unless the costs are refunded, credited, or waived 6   under the program. Division II of the bill provides that 7   if the program or eligible customer group cease to exist and 8   the public utility seeks recovery of the program-specific 9   facilities through a general rate case proceeding, the public 10   utility shall demonstrate the reasonableness and prudence 11   without any presumption regarding approval of such request. A 12   public utility shall be allowed to recover program-specific 13   facilities through general rate case proceedings. If the 14   utility can demonstrate to the commission that the proposed 15   tariff generates excess revenue for the utility as compared to 16   total revenue without the tariff, the excess revenue may be 17   retained by the utility. 18   Division II of the bill provides for tariff application 19   and approval. A public utilitys authority is not mandatory 20   regarding tariffs. Division II of the bill provides that an 21   application for a tariff or amendment to a tariff shall be 22   filed with the commission. The commission shall approve, deny, 23   or docket for further review an application within 30 days. 24   If the commission dockets the application for further review, 25   the commission shall render a decision within 90 days from the 26   date of application filing, unless an objection is filed. The 27   commission shall not reconsider existing programs previously 28   approved under the tariff during a review of an application 29   for an amendment to a tariff unless the review of a program is 30   proposed as part of the amendment. 31   Division II of the bill prohibits the commission from 32   certain actions. Division II of the bill provides that 33   the commission shall not limit the number of applications a 34   public utility may file, deny, or condition the approval of a 35   -40-   LSB 1121HV (2) 91   sb/js   40/ 53  

  H.F. 834   tariff because a public utility is subject to an alternative 1   regulatory mechanism, or require a public utility subject to an 2   alternative regulatory mechanism to record revenues and costs 3   in an inconsistent manner with specified federal standards, 4   provided that the proposed tariff would not result in 5   detrimental treatment of other customers or require adjustment 6   to the calculation of the alternative regulatory mechanism to 7   reflect the impact of an approved tariff. Division II of the 8   bill prohibits the commission from conditioning approval of a 9   tariff on the requirement that the public utility change the 10   proposal to unagreed-upon terms, but this prohibition does not 11   prevent the commission from identifying changes to the proposal 12   that might result in approval. 13   Division II of the bill provides that tariffs and programs 14   approved pursuant to division II of the bill shall be 15   rebuttably presumed to be just and reasonable in general rate 16   case proceedings. Division II of the bill prohibits the 17   commission from conditioning approval or denial of a tariff 18   on the final adoption of rules and requires the commission to 19   adopt rules related to division II of the bill. 20   Division II of the bill applies to a public utility filing an 21   application with the commission for review of a tariff on or 22   after the effective date of division II of the bill. 23   Division III of the bill relates to electric transmission 24   lines and electric transmission owners. Division III of the 25   bill expounds the legislative purpose of Code section 478.16, 26   identifying Iowa consumers urgent need for development and 27   investment in high-voltage transmission. Division III of the 28   bill provides that an incumbent electric transmission owner may 29   be formed, located, or headquartered in any state as long as 30   the electric transmission line is located in Iowa. 31   Division III of the bill defines an incumbent electric 32   transmission owner as an individual or entity who, as of July 33   1, 2024, owns and maintains an electric transmission line   34   in this state that is required for rate-regulated electric 35   -41-   LSB 1121HV (2) 91   sb/js   41/ 53  

  H.F. 834   utilities, municipal electric utilities, and rural electric 1   cooperatives in the state to provide electric service to the 2   public for compensation. 3   Under division III of the bill, an incumbent electric 4   transmission facility owner has the right to construct, own, 5   and maintain an electric transmission line that directly 6   connects to the electric transmission facility. If a proposed 7   transmission line would directly connect to facilities owned 8   by two or more facility owners, each owner has the right to 9   construct, own, and maintain the electric transmission line 10   individually and equally. 11   Division III of the bill requires an incumbent electric 12   transmission owner exercising its right to construct, own, 13   and maintain an electric transmission line to offer public 14   power utilities an opportunity to jointly own a portion of the 15   electric transmission line. The offered amount must be at 16   least the amount of the public power utilitys electric load 17   divided by the total electric load in the applicable incumbent 18   electric transmission owners pricing zone. Division III of 19   the bill does not prohibit the entities from agreeing to joint 20   ownership in a different amount. Additionally, division III of 21   the bill allows the public power utility to transfer or assign 22   its joint ownership rights to another public power utility 23   or group of public power utilities with the consent of the 24   incumbent electric transmission owner. 25   Division III of the bill allows an incumbent electric 26   transmission owner exercising its right to construct, own, 27   and maintain an electric transmission line to contract with   28   another electric transmission owner or electric public utility 29   to jointly own a portion of the electric transmission line. 30   Division III of the bill requires the incumbent electric 31   transmission owner or owners with approved electric 32   transmission lines not subject to right of first refusal 33   in a federally registered planning authority transmission 34   plan to give notice to the commission whether the owner or 35   -42-   LSB 1121HV (2) 91   sb/js   42/ 53  

  H.F. 834   owners intend to construct, own, and maintain the electric 1   transmission line. The notice shall be given within the later 2   of 90 days of approval for construction or 90 days after 3   enactment of division III of the bill. The commission may 4   determine whether another person may construct the electric 5   transmission line if the incumbent electric transmission owner 6   or owners give notice declining to construct or do not give 7   timely notice. 8   Division III of the bill requires incumbent electric 9   transmission owners to provide documentation to the commission 10   that shows utilization of competitively bid construction 11   contracts that meet all necessary technical, commercial, and 12   other specifications required for compliant construction. 13   Division III of the bill allows the consumer advocate free 14   access to all documents, reports, and information submitted to 15   the commission regarding cost accountability measures for the 16   construction of electric transmission lines. These documents, 17   reports, and information may be used by the consumer advocate 18   for any purpose within the scope of the consumer advocates 19   duties. These provisions do not create a private cause of 20   action or complaint. 21   Division III of the bill directs the commission to adopt 22   rules to implement the land restoration requirements after 23   initial construction of an electric transmission line as set 24   forth in division III of the bill. 25   Division III of the bill requires incumbent electric 26   transmission owners to repair drain tiles damaged during 27   construction as soon as practicable and to complete permanent 28   repairs as soon as practicable after initial construction. The 29   permanent repairs must be of the same quality, size, and flow 30   capacity of the original drain tile. 31   Division III of the bill requires incumbent electric 32   transmission owners to remove all nonnative rocks larger 33   than three inches in diameter from the easement area. The   34   disposal of rock that cannot be used as backfill must be done 35   -43-   LSB 1121HV (2) 91   sb/js   43/ 53  

  H.F. 834   at a location and in a manner agreed to between the incumbent 1   electric transmission owner and the landowner. 2   Division III of the bill requires the incumbent electric 3   transmission owner to till agricultural land affected by 4   construction, including right-of-way access points or roads, 5   after electric transmission line construction activities are 6   completed on the affected property. The land must be tilled 7   at least 18 inches deep in land used for crop production and 12 8   inches deep in all other land, unless otherwise agreed to by 9   the landowner. 10   Division III of the bill requires the incumbent electric 11   transmission owner to restore soil conservation practices 12   and structures damaged during construction to their previous 13   state, compact the soil used to repair embankments intended to 14   retain water, and reestablish any vegetation disturbed during 15   construction, including cover crops. 16   Division III of the bill requires the incumbent electric 17   transmission owner to reseed the agricultural land, excluding 18   row crops and small grain production, following compaction 19   of the land. Seeding for cover crops may be delayed if 20   construction is completed too late in the year and is not 21   required if the land will be tilled the following year. When 22   the season is not suitable for the seeding of cover crops, the 23   landowner may request ground cover to prevent soil erosion. 24   Division III of the bill requires the incumbent electric 25   transmission owner to remove all field entrances and temporary 26   roads used during construction and to restore the areas to 27   their previous state following the completion of the initial 28   construction. 29   Division III of the bill requires the incumbent electric 30   transmission owner to use good practices when constructing in 31   wet conditions and to grade and till any rutted land in order 32   to restore the land to its original condition to the extent 33   practicable. Additionally, division III of the bill allows 34   the landowner to repair damage caused by construction in wet 35   -44-   LSB 1121HV (2) 91   sb/js   44/ 53  

  H.F. 834   conditions. The incumbent electric transmission owner shall 1   then reimburse the landowner for reasonable costs of repair. 2   Division III of the bill requires an electric transmission 3   owner to utilize mudflats, mats, or other measures to minimize 4   soil disturbance when using heavy equipment in wetlands. 5   Division III of the bill requires the incumbent electric 6   transmission owner to provide contact information to all 7   persons affected by the construction of each transmission line. 8   Division III of the bill allows the commission to appoint an 9   inspector to determine compliance with restoration standards 10   in the event the incumbent electric transmission owner and the 11   landowner dispute over potential violations. The cost of the 12   inspection shall be paid by the incumbent electric transmission 13   owner. If the inspector determines there have been violations 14   of the restoration standards, the commission will provide oral 15   and written notice to the incumbent electric transmission 16   owner. The commission will order corrective actions be taken 17   to comply with the standards. The costs of the corrective 18   actions will be borne by the electric transmission owner. 19   Division III of the bill allows the commission to issue an 20   order requiring corrective action and impose civil penalties if 21   the incumbent electric transmission owner or its contractor do 22   not comply with the required standards. 23   Division III of the bill requires the commission to instruct 24   the inspectors on the statutes, rules, and responsibilities 25   regarding restoration standards. 26   Division III of the bill requires petitioners for a 27   franchise for electric transmission construction to file a land   28   restoration plan outlining how the construction will conform 29   to the required standards. The restoration plan will also be 30   provided to all property owners affected by the construction. 31   Division III of the bill allows alternative provisions in 32   independent agreements with landowners regarding protecting or 33   restoring property as long as these provisions are in writing 34   and are provided to the commission. 35   -45-   LSB 1121HV (2) 91   sb/js   45/ 53  

  H.F. 834   Division III of the bill allows electric transmission 1   owners to propose alternate methods of land restoration to the 2   commission. The commission, by waiver, may allow variations 3   to the land restoration requirements if the proposed alternate 4   methods would restore the land to a condition as good or better 5   than those required by division III of the bill. 6   Division III of the bill allows the commission to waive the 7   preparation of a separate land restoration plan, in whole or in 8   part, if the incumbent electric transmission owner satisfies 9   the requirements through similar agreement with other agencies 10   in the state. The relevant agreements must be filed with the 11   commission. 12   Division III of the bill does not limit, expand, or otherwise 13   modify the rights of access and obligations for damages set 14   forth in Code section 478.17. 15   Division III of the bill takes effect upon enactment. 16   Division III of the bill applies retroactively to an 17   electric transmission line included in a federally registered 18   planning authority long-term transmission plan approved on 19   or after July 1, 2020, with the exception of the provisions 20   requiring incumbent electric transmission owners to offer 21   public power utilities the option to jointly own qualifying 22   electric transmission lines. For this exception, division III 23   of the bill applies retroactively to July 1, 2024. 24   Division IV of the bill relates to the energy infrastructure 25   revolving loan program, which is renamed as the energy and 26   water infrastructure revolving loan program. 27   Under current law, the energy infrastructure revolving loan 28   fund (fund) and program are administered by the Iowa energy 29   center (center). Division IV of the bill instead places 30   the administrative duty with the Iowa economic development 31   authority (IEDA) and renames the fund the energy and water 32   infrastructure revolving loan fund. 33   Division IV of the bill adds financial assistance for the   34   development and construction of water infrastructure that 35   -46-   LSB 1121HV (2) 91   sb/js   46/ 53  

  H.F. 834   supports economic development to the funds approved uses, 1   including drinking water treatment systems and wastewater 2   treatment systems. 3   Division IV of the bill expands the entities eligible for 4   assistance under the fund to include a county or city. 5   Under current law, the approval of the centers governing 6   board is required before IEDA can determine the amount and 7   the terms of all financial assistance awarded to an eligible 8   borrower and all agreements and administrative authority are 9   vested in the centers governing board. Division IV of the 10   bill removes the approval requirement by the center and its 11   authority regarding agreements. 12   Division IV of the bill adds that to be eligible for 13   a financial assistance award under the energy and water 14   infrastructure revolving loan program, an eligible borrower 15   must demonstrate that the proposed project will attract and 16   encourage the location of new industrial enterprise or the 17   expansion of existing industrial enterprise. Division IV 18   of the bill states that IEDA shall determine the amount and 19   the terms of all financial assistance awarded to an eligible 20   borrower under the program and that all agreements and 21   administrative authority shall be vested in IEDA. Division 22   IV of the bill provides that IEDA may adopt rules for the 23   implementation of this program. 24   Division IV of the bill grants IEDA the ability to authorize 25   the transfer of up to $633,000 annually to Iowa state 26   university of science and technology to be used for providing 27   financial assistance to the state load forecasting center. 28   Division V of the bill relates to anaerobic digester 29   systems. Division V of the bill states its purpose is to 30   provide requirements relating to the construction, including 31   the expansion, and operation of anaerobic digester systems and 32   the control of digestate. Division V of the bill directs the 33   environmental protection commission to make rules for this 34   stated purpose. Division V of the bill states that if the 35   -47-   LSB 1121HV (2) 91   sb/js   47/ 53  

  H.F. 834   provisions of new Code chapter 459C conflict with Code chapter 1   459, 459A, or 459B, the provisions of Code chapter 459C shall 2   prevail. 3   Division V of the bill directs the department of natural 4   resources (DNR) to approve applications for permits for 5   construction, including expansion, of anaerobic digester 6   systems based on procedures required in division V of the 7   bill and rules created by DNR pursuant to division V of the 8   bill. Division V of the bill prohibits the construction of 9   an anaerobic digester system, regardless of size, until the 10   construction permit has been approved. The applicant must 11   also submit a $250 permit application fee, a written plan for 12   disposal of the digestate, and a written operation plan for an 13   anaerobic digester system. 14   Division V of the bill requires an anaerobic digester 15   system to accept only manure unless DNR otherwise approves the 16   inclusion of organic by-product, food product, or food for 17   human consumption. Nonmanure materials shall not compose more 18   than 10 percent of the total material added to an anaerobic 19   digester system. 20   Division V of the bill requires a daily record of materials 21   added to an anaerobic digester system to be kept and maintained 22   at the facility and grants DNR the authority for additional 23   testing or monitoring of the materials added to an anaerobic 24   digester system and the digestate. 25   Division V of the bill prohibits medical wastes, including 26   expired or unused antibiotics, petroleum products not designed 27   for use in manure storage facilities, pesticides, paints, 28   solvents, hazardous materials, municipal or sanitary waste 29   or sludge, industrial wastewater, contaminated feedstock, 30   slaughterhouse wastes, and residues from processing of food 31   materials that have not been deemed acceptable for human 32   consumption from being processed in an anaerobic digester 33   system. 34   Division V of the bill directs DNR to adopt rules to 35   -48-   LSB 1121HV (2) 91   sb/js   48/ 53  

  H.F. 834   establish construction design standards for formed manure 1   storage structures that are part of an anaerobic digester 2   system. Division V of the bill requires construction design 3   standards to be based upon uniform standards and provides 4   construction design standards for concrete. 5   Division V of the bill prohibits the construction of 6   unformed manure storage structures on karst terrain, but allows 7   the construction of a formed manure storage structure on 8   karst terrain or an area that drains into a known sinkhole if 9   upgraded construction design standards necessary to ensure that 10   the structure does not pollute groundwater sources are used. 11   Division V of the bill provides separation distance 12   requirements between an anaerobic digester system manure 13   storage structure and a surface intake of a drainage well, 14   wellhead, cistern of an agricultural well, known sinkhole, 15   water source, or wetland. Division V of the bill provides 16   exceptions for a location or object and a farm pond or 17   privately owned lake. 18   Division V of the bill prohibits construction, expansion, 19   or diversion of a water source or the designation of a 20   wetland if the action would cause an anaerobic digester system 21   manure storage structure to be in violation of the distance 22   requirements. 23   Division V of the bill prohibits an anaerobic digester 24   system manure storage structure from being constructed on land 25   that is part of a 100 year floodplain as determined by DNR. 26   Division V of the bill states there are no distance   27   requirements between a location or object and a farm pond or 28   privately owned lake. Additionally, distance requirements 29   do not apply to an anaerobic digester system manure storage 30   structure constructed with a secondary containment barrier 31   approved by DNR. 32   Division V of the bill provides separation distances between 33   an anaerobic digester system manure storage structure and a 34   residence, bona fide religious institution, public use area, 35   -49-   LSB 1121HV (2) 91   sb/js   49/ 53  

  H.F. 834   commercial enterprise, educational institution, or public 1   thoroughfare. Division V of the bill allows the titleholder 2   of the land benefiting from the distance requirements to waive 3   the distance requirements. Division V of the bill allows the 4   state or political subdivision to waive distance requirements 5   of public thoroughfares. The waivers must be filed with the 6   county recorder before becoming effective. 7   Division V of the bill allows an anaerobic digester 8   system manure storage structure to be within the distance 9   requirement from a residence, educational institution, 10   commercial enterprise, bona fide religious institution, city, 11   or public use area if the anaerobic digester system manure 12   storage structure was operating in conformance with distance 13   requirements, but was brought within the distance requirement 14   due to the expansion or construction of a residence, 15   educational institution, commercial enterprise, bona fide 16   religious institution, city, or public use area. A change in 17   ownership or expansion of an anaerobic digester system shall 18   not change the established date of operation. 19   Division V of the bill requires an anaerobic digester system 20   to retain all digestate produced by operation between periods 21   of digestate disposal or delivery to animal feeding operations 22   and to dispose the digestate in a manner that will not cause 23   surface water or groundwater pollution. 24   Division V of the bill requires the owner of an anaerobic 25   digester system that discontinues the use of the operation to 26   remove all digestate from related anaerobic digester system 27   structures used to store digestate within six months following 28   the date that the anaerobic digester system is discontinued. 29   Division V of the bill requires materials returned to an 30   animal feeding operation for land application be accounted for 31   in the animal feeding operations manure management plan or 32   nutrient management plan and that the owner of the anaerobic 33   digester system must satisfy all applicable laws for proper 34   application of any portion of the digestate not returned to an 35   -50-   LSB 1121HV (2) 91   sb/js   50/ 53  

  H.F. 834   animal feeding operation. 1   Division V of the bill allows an anaerobic digester system to 2   stockpile materials prior to digestation or dry digestate so 3   long as the facility stockpiles the materials and dry digestate 4   in compliance with restrictions applicable to stockpiling as 5   provided in division V of the bill. Division V of the bill 6   prohibits anaerobic digester system stockpiles from commingling 7   with animal feeding operation stockpiles. 8   Division V of the bill provides separation distance 9   requirements between a stockpile and a designated area that 10   includes a known sinkhole, a cistern, an abandoned well, an 11   unplugged agricultural drainage well, an agricultural drainage 12   well surface inlet, a drinking water well, a designated 13   wetland, or a water source. Special separation distance 14   requirements are provided for a high-quality water resource, an 15   agricultural drainage well, or a known sinkhole. Division V 16   of the bill provides special separation distance requirements 17   between a stockpile and a terrace tile inlet or surface tile 18   inlet. An exception allows a stockpile to be located closer 19   than otherwise required from these water sources so long as it 20   is maintained in a manner that will not allow precipitation 21   induced runoff to drain from the material or dry digestate. 22   Division V of the bill also provides separation distance 23   requirements between a stockpile and a residence, bona fide 24   religious institution, public use area, commercial enterprise, 25   or educational institution. 26   Division V of the bill provides that a stockpile cannot be 27   located in a grassed waterway. The stockpile also cannot be 28   located on a slope of a certain grade, unless efforts are taken 29   to contain the stockpile and prevent runoff. 30   If the materials or dry digestate are not stockpiled on 31   karst terrain, division V of the bill does not provide any 32   requirements so long as the materials or dry digestate are 33   stockpiled for 15 days or less. Otherwise, division V of the 34   bill requires a person to comply with stockpiling requirements 35   -51-   LSB 1121HV (2) 91   sb/js   51/ 53  

  H.F. 834   or file a monthly inspection report with DNR. The special 1   stockpiling requirements include either the use of a structure 2   or the use of an impermeable cover. However, if the stockpile 3   is covered on a long-term basis, it must be sited on compacted 4   or other prepared ground. 5   Division V of the bill states that if a proposed stockpile 6   is located on potential karst terrain, a qualified person must 7   test the ground in conformance with requirements described in 8   division V of the bill and submit a soil report to confirm 9   whether the proposed stockpile location is on karst terrain. 10   If the material or dry digestate is stockpiled on karst 11   terrain, there must be a separation distance between the bottom 12   of the stockpile and the soluble rock, regardless of how long 13   the stockpile is located at that location. For material or dry 14   digestate that is stockpiled for more than 15 days, special 15   compliance requirements apply, including either the use of a 16   structure or an impermeable cover. If the stockpile is located 17   at that location on a long-term basis, it must be sited on 18   concrete. 19   Division V of the bill requires a person stockpiling 20   material or dry digestate to comply with all applicable 21   national pollutant discharge elimination system permit 22   requirements pursuant to the federal Water Pollution Control 23   Act. 24   Division V of the bill requires a person stockpiling 25   materials or dry digestate to remove the dry digestate and 26   apply it in accordance with the provisions of division V of the 27   bill within six months after the materials or dry digestate are 28   first stockpiled. 29   Division V of the bill directs DNR and the attorney general 30   to enforce Code chapter 459C in the same manner as provided in 31   Code chapter 459, subchapter VI. A person who violates the 32   provisions of division V of the bill for which the alleged harm 33   is related to air quality shall be subject to the same penalty 34   as provided in Code section 459.602. A person who violates 35   -52-   LSB 1121HV (2) 91   sb/js   52/ 53  

  H.F. 834   the provisions of division V of the bill for which the alleged 1   harm is related to water quality shall be subject to the same 2   penalties as provided in Code section 459.603. A habitual 3   violator of the provisions of division V of the bill shall be 4   subject to the same penalties and restrictions as provided in 5   Code sections 459.604 and 459.605. Any collected civil penalty 6   and interest on a civil penalty shall be credited to the Iowa 7   nutrient research fund created in Code section 466B.46. 8   -53-   LSB 1121HV (2) 91   sb/js   53/ 53