House Study Bill 123 - Introduced SENATE/HOUSE FILE _____ BY (PROPOSED GOVERNOR BILL) 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 1121XL (9) 91 sb/js
S.F. _____ H.F. _____ DIVISION I 1 ELECTRIC POWER GENERATION, ENERGY STORAGE, AND TRANSMISSION 2 FACILITY RATEMAKING PRINCIPLES 3 Section 1. Section 476.25, subsection 2, Code 2025, is 4 amended to read as follows: 5 2. Contracts between electric utilities to designate 6 service areas and customers to be served by the electric 7 utilities or for the exchange of customers between electric 8 utilities, when approved by the commission, shall be valid and 9 enforceable and shall be incorporated into the appropriate 10 exclusive service areas established pursuant to subsection 1 11 of this section . The commission shall approve a contract if 12 it finds that the contract will eliminate or avoid unnecessary 13 duplication of facilities, will provide adequate electric 14 service to all areas and customers affected, will promote the 15 efficient and economical use and development of the electric 16 systems of the contracting electric utilities, and is in the 17 public interest. The commission shall also approve a contract 18 if it finds that the contract will promote economic development 19 within the state. 20 Sec. 2. NEW SECTION . 476.52A Definitions. 21 As used in this subchapter unless the context otherwise 22 requires: 23 1. Alternate energy production facility means the same as 24 defined in section 476.42. 25 2. Energy storage means any system, equipment, facility, 26 or technology that is capable of absorbing energy, storing the 27 energy for a period of time, and dispatching the energy through 28 one of the following manners: 29 a. Using mechanical, electrochemical, thermal, 30 electrolysis, or other processes to convert and store electric 31 energy that was generated at an earlier time for use at a later 32 time. 33 b. Using mechanical, electrochemical, biochemical, or 34 thermal processes to convert and store energy generated 35 -1- LSB 1121XL (9) 91 sb/js 1/ 53
S.F. _____ H.F. _____ from mechanical processes that would otherwise be wasted for 1 delivery at a later time. 2 c. Storing energy in an electric, thermal, or gaseous 3 state for direct use for heating or cooling at a later time 4 in a manner that avoids the need to use electricity or other 5 fuel sources at that later time, such as a grid-enabled water 6 heater. 7 3. Nuclear reactor means an apparatus designed to produce 8 electrical or heat energy through sustained nuclear fission in 9 a self-supporting chain reaction. 10 4. Repowering means either the complete dismantling and 11 replacement of generation equipment at an existing project 12 site, or the installation of new parts and equipment to an 13 existing alternate energy production facility in order to 14 increase energy production, reduce load, increase service 15 capacity, improve project reliability, or extend the useful 16 life of the facility. 17 Sec. 3. Section 476.53, subsection 1, Code 2025, is amended 18 to read as follows: 19 1. It is the intent of the general assembly to attract 20 the development of electric power generating , energy storage, 21 and transmission facilities within the state in sufficient 22 quantity to ensure reliable electric service to Iowa consumers , 23 ensure an adequate base load, and provide economic benefits to 24 the state. Ensuring reliable electric service and providing 25 economic benefits may require public utilities to consider 26 diverse electric power generating technologies and energy 27 storage technologies, including alternate energy production 28 facilities, nuclear reactors, and energy storage facilities. 29 It is also the intent of the general assembly to encourage 30 rate-regulated public utilities to consider altering existing 31 electric power generating facilities, where when reasonable, 32 to manage carbon emission intensity in order to facilitate the 33 transition to a carbon-constrained environment. It is also the 34 intent of the general assembly to encourage the development 35 -2- LSB 1121XL (9) 91 sb/js 2/ 53
S.F. _____ H.F. _____ of nuclear electric power generation within the state using 1 nuclear reactors and to use nuclear power to meet local and 2 regional electric needs. 3 Sec. 4. Section 476.53, subsection 3, paragraphs a, b, c, 4 and d, Code 2025, are amended to read as follows: 5 a. The commission shall specify in advance, by order issued 6 after conduct a contested case proceeding , the ratemaking 7 principles that will apply when the costs of the electric power 8 generating facility or alternate energy production facility are 9 included in regulated electric rates whenever a rate-regulated 10 public utility does seeks ratemaking principles for any of the 11 following: 12 (1) (a) Files an application pursuant to section 476A.3 13 to construct The costs of constructing in Iowa a baseload an 14 electric power generating facility with a nameplate generating 15 capacity equal to or greater than three hundred forty megawatts 16 or a combined-cycle electric power generating facility , or an 17 alternate energy production facility as defined in section 18 476.42 , or an energy storage facility, or the construction 19 costs to significantly alter an existing electric power 20 generating facility , alternate energy production facility, or 21 energy storage facility . For purposes of this subparagraph, 22 a significant alteration of an existing generating facility , 23 alternate energy production facility, or energy storage 24 facility must, in order to qualify for establishment of 25 ratemaking principles, fall into one of the following 26 categories: 27 (i) Conversion of a coal fueled an electric power generating 28 facility into a gas fueled to an alternate fuel type for the 29 electric power generating facility. 30 (ii) Addition of carbon capture and storage facilities at a 31 coal fueled to an existing electric power generating facility. 32 (iii) Addition of gas fueled capability to a coal fueled 33 facility, in order to convert the facility to one that will 34 rely primarily on gas for future generation facilities to 35 -3- LSB 1121XL (9) 91 sb/js 3/ 53
S.F. _____ H.F. _____ capture exhaust heat and thereby generate additional electric 1 power at an existing electric power generating facility . 2 (iv) Addition of a biomass fueled capability to a coal 3 fueled facility. 4 (v) (iv) Repowering of an alternate energy production 5 facility. For purposes of this subparagraph subdivision, 6 repowering shall mean either the complete dismantling and 7 replacement of generation equipment at an existing project 8 site, or the installation of new parts and equipment to an 9 existing alternate energy production facility in order to 10 increase energy production, reduce load, increase service 11 capacity, improve project reliability, or extend the useful 12 life of the facility. 13 (v) Addition of energy storage at an existing electric power 14 generating facility, alternate energy production facility, or 15 energy storage facility. 16 (b) With respect to a significant alteration of an 17 existing generating facility, an original facility shall 18 not be required to be either a baseload or a combined-cycle 19 facility. Only only the incremental investment undertaken 20 by a utility under subparagraph division (a), subparagraph 21 subdivision (i), (ii), or (iii), or (iv) shall be eligible 22 to apply the ratemaking principles established by the order 23 issued pursuant to paragraph e . Facilities for which advanced 24 advance ratemaking principles are obtained pursuant to this 25 section shall not be subject to a subsequent commission review 26 pursuant to section 476.6, subsection 19 , to the extent that 27 the investment has been considered by the commission under 28 this section . To the extent an eligible utility has been 29 authorized to make capital investments subject to section 30 476.6, subsection 19 , such investments shall not be eligible 31 for ratemaking principles pursuant to this section . 32 (2) Leases or owns When leased or owned in Iowa, in whole or 33 in part, a new baseload electric power generating facility with 34 a nameplate generating capacity equal to or greater than three 35 -4- LSB 1121XL (9) 91 sb/js 4/ 53
S.F. _____ H.F. _____ hundred forty megawatts or a combined-cycle electric power 1 generating , a new energy storage facility, or a new alternate 2 energy production facility as defined in section 476.42 . 3 b. If the commission finds that the utilitys application 4 meets the requirements of paragraph c , the commission shall 5 specify by order issued after the contested case proceeding 6 the ratemaking principles that will apply when the costs of 7 the electric power generating facility or alternate energy 8 production facility are included in regulated electric rates. 9 In determining the applicable ratemaking principles, the 10 commission shall not be limited to traditional ratemaking 11 principles or traditional cost recovery mechanisms. Among the 12 principles and mechanisms the commission may consider, the 13 commission has the authority to approve ratemaking principles 14 proposed by a rate-regulated public utility that provide for 15 reasonable restrictions upon the ability of the public utility 16 to seek a general increase in electric rates under section 17 476.6 for at least three years after the generating facility 18 begins providing service to Iowa customers. 19 c. In determining the applicable ratemaking principles, the 20 commission shall make the following findings: 21 (1) The rate-regulated public utility has in effect a 22 commission-approved energy efficiency plan as required under 23 section 476.6, subsection 15 . 24 (2) The rate-regulated public utility has demonstrated to 25 the commission that the public utility has considered other 26 sources for long-term electric supply and that the facility or 27 lease is reasonable when compared to other feasible alternative 28 sources of supply. The rate-regulated public utility shall 29 provide support of reasonability with an electric utility 30 resource plan pursuant to section 476.53C that has been updated 31 no more than twenty-four months prior to the filing of the 32 public utilitys application. 33 d. The applicable ratemaking principles shall be determined 34 in a contested case proceeding , which proceeding required by 35 -5- LSB 1121XL (9) 91 sb/js 5/ 53
S.F. _____ H.F. _____ paragraph a may be combined with the proceeding for issuance 1 of a certificate conducted pursuant to chapter 476A . 2 Sec. 5. NEW SECTION . 476.53B Commission authority and 3 proceedings. 4 The commission shall adopt rules pursuant to chapter 17A 5 to provide for the completion of proceedings under section 6 476.53 within ten months after the date of the filing of an 7 application under section 476.53, subsection 3. The rules 8 shall include reasonable time limitations for the submission or 9 completion of comments and testimony, and exhibits, briefs, and 10 hearings, and may provide for the granting of additional time 11 upon the request of a party to the proceeding for good cause 12 shown. 13 Sec. 6. NEW SECTION . 476.53C Electric utility resource 14 planning. 15 1. An electric utility required to be rate-regulated by the 16 commission shall file a resource plan at least once every five 17 years. A resource plan shall consider all reasonable resources 18 proposed by the utility for meeting the probable future demand 19 for energy, including supply resources and conservation and 20 management of demand. For conservation and management of 21 demand, an electric utilitys resource plan shall include 22 programs approved in the electric utilitys most recent energy 23 efficiency plan approved by the commission under section 476.6, 24 subsection 15. The objectives of a resource plan include but 25 are not limited to adequate, cost-effective, and reliable 26 energy service considering costs, fuel diversity, and probable 27 future demand for energy. A resource plan shall not require a 28 specific outcome or specific investment decisions. A resource 29 plan shall reflect the circumstances and management judgment 30 of an electric utility. This section does not restrict an 31 electric utility from making planning decisions based on future 32 resource needs subject to the ratemaking oversight of the 33 commission. 34 2. The commission shall review a resource plan. Within 35 -6- LSB 1121XL (9) 91 sb/js 6/ 53
S.F. _____ H.F. _____ ninety days of filing the final resource plan, the commission 1 shall issue an order acknowledging it has received the plan. 2 In the order acknowledging receipt, the commission may provide 3 recommendations to an electric utility regarding any additional 4 analyses or actions that the electric utility should consider 5 completing in its next resource plan. 6 3. The commission shall adopt rules pursuant to chapter 7 17A regarding the timeline and stakeholder process to review 8 and provide comments on the resource plan. The stakeholder 9 process shall include the electric utility organizing and 10 facilitating a stakeholder conference for the resource plan. 11 The stakeholder conference shall include representatives of the 12 commission, the consumer advocate, and the electric utilitys 13 customers. The electric utility shall make a good faith effort 14 to inform and consider input from the commission, the consumer 15 advocate, and stakeholders. 16 DIVISION II 17 TARIFFS FOR PUBLIC UTILITY INNOVATION PROGRAMS 18 Sec. 7. Section 476.6, Code 2025, is amended by adding the 19 following new subsection: 20 NEW SUBSECTION . 22. Innovative utility programs. 21 a. It is the intent of the general assembly to encourage 22 public utilities to pursue innovation in pricing and programs 23 to meet the dynamic needs of current and prospective customers, 24 enable price-responsive solutions, and to provide economic, 25 environmental, employment, and other benefits to the state. 26 It is also the intent of the general assembly that these 27 new endeavors shall not negatively impact nonparticipating 28 customers. Therefore, the general assembly declares that 29 innovative utility programs are essential to further the 30 attraction and retention of customers to benefit the states 31 economy and to support economical and sustainable energy 32 production. 33 b. (1) A tariff authorized under this subsection shall 34 comply with all of the following conditions: 35 -7- LSB 1121XL (9) 91 sb/js 7/ 53
S.F. _____ H.F. _____ (a) A program created under the tariff shall be available to 1 interested energy customers and customer participation shall 2 be optional. 3 (b) A tariff shall define the eligible customer groups. 4 (c) An eligible customer group shall not exclude directly 5 competing customers in the same customer service territory. 6 For purposes of this subparagraph, directly competing 7 customers means customers that make the same end product or 8 offer the same service for the same general group of customers, 9 and excludes customers that only produce component parts of the 10 same end product. 11 (d) Participating customers shall bear all program costs. 12 Program costs include direct costs associated with the 13 construction, operation, maintenance, and interconnection of 14 facilities, including new transmission infrastructure directly 15 arising from the tariff program and costs related to the 16 implementation of tariff programs. Participants in a tariff 17 approved pursuant to this section shall participate in future 18 indirect costs allocated to customers of that utility without 19 regard for the existence of a tariff approved pursuant to this 20 section. 21 (e) A tariff shall not alter the existing base rates or 22 charges of the public utility. Refund, credit, or waiver of 23 existing base rates or charges offered as part of the program 24 shall not be considered an alteration of existing base rates 25 or charges. 26 (f) The program created under the tariff shall not 27 negatively impact nonparticipating customers. Additional 28 costs incurred by nonparticipating customers due to costs 29 arising from the tariff, tariff participants no longer sharing 30 in customer class costs, or decreased customer benefit from 31 existing infrastructure shall be considered negative impacts. 32 (2) A tariff authorized under this subsection may include 33 any of the following: 34 (a) Recovery of costs associated with program-specific 35 -8- LSB 1121XL (9) 91 sb/js 8/ 53
S.F. _____ H.F. _____ services or facilities, including but not limited to energy 1 storage, renewable hydrogen, transmission, electric generating 2 facilities, electric distribution facilities, renewable natural 3 gas generation facilities, renewable natural gas distribution 4 facilities, utility-assisted hourly prices, or liquefied 5 natural gas facilities, or administrative and other overhead 6 costs relating to the same. 7 (b) A negotiated rate of return, for new or existing 8 facilities or services provided by the electric utility that 9 are serving the program created under the tariff, applicable to 10 the program for its duration. The use of existing facilities 11 would require reconciliation of impact to existing customers 12 and would no longer be subject to previously approved advance 13 ratemaking principles. In the event that the tariff or its 14 eligible customer class cease to exist, no charges shall be 15 imposed on or costs recovered from existing customers unless 16 approved in a general rate case. A utility may seek to 17 demonstrate the prudence, necessity, and use and usefulness 18 of program-specific facilities or services as defined in 19 subparagraph division (a) and recovery of costs for the same in 20 a general rate proceeding, without any presumption regarding 21 approval of such request. 22 (c) Application of the program to readily identifiable 23 customer usage patterns, customer characteristics, or output 24 of specified facilities. 25 (d) Assignment of program benefits, including nonmonetary 26 benefits that may derive from dynamically balancing supply and 27 demand, providing ancillary services, or the production of 28 renewable energy attributes. 29 (e) Refund, credit, or waive the base rate or charge for 30 the replaced service when the program created under the tariff 31 replaces a service for which the public utility collects an 32 existing base rate or charge. A participating customer shall 33 pay the costs of remaining services received from the public 34 utility unless those costs are refunded, credited, or waived 35 -9- LSB 1121XL (9) 91 sb/js 9/ 53
S.F. _____ H.F. _____ under the program created by the tariff. 1 (3) If a utility can demonstrate to the commission that 2 a proposed tariff generates excess revenue for the utility 3 as compared to total revenue without the tariff, such excess 4 revenue may be retained by the utility. 5 c. (1) A public utilitys participation under this 6 subsection is not mandatory. A public utility that elects to 7 propose a tariff or tariff amendment under this subsection 8 shall file an application for approval with the commission. 9 The application shall include an identification of costs and 10 benefits related to the program for the commissions review of 11 the conditions specified in paragraph b , subparagraph (1). 12 (2) Within thirty days, the commission shall approve, deny, 13 or docket for further review an application for a tariff or 14 amended tariff submitted pursuant to this subsection. If the 15 application is docketed for further review, the commission 16 shall render a decision within ninety days from the date of 17 application filing unless an objection has been filed with the 18 commission. If the application proposes to amend a tariff 19 previously approved under this subsection, the commission shall 20 not reconsider existing programs previously approved under the 21 tariff unless proposed as part of the amendment. All further 22 review shall be conducted as a contested case pursuant to 23 chapter 17A. 24 (3) If the application proposes to amend a tariff previously 25 approved under this subsection as described in paragraph b , 26 subparagraph (2), the commission shall act on the application 27 as described in subparagraph (2) of this paragraph, but shall 28 not reconsider existing programs previously approved under the 29 tariff unless proposed as part of the amendment. 30 (4) In the exercise of its authority under this subsection, 31 the commission shall not: 32 (a) Limit the number of applications a public utility may 33 file pursuant to this subsection. 34 (b) Deny a tariff because a public utility is subject to an 35 -10- LSB 1121XL (9) 91 sb/js 10/ 53
S.F. _____ H.F. _____ alternative regulatory mechanism, nor require a public utility 1 subject to an alternative regulatory mechanism to record the 2 revenues and costs associated with the program inconsistent 3 with the federal energy regulatory commissions uniform system 4 of accounts; provided, however, that this provision shall not 5 prohibit the utilities commission from denying a tariff if the 6 proposed tariff would result in detrimental treatment of other 7 customers, or require adjustment to the calculation of the 8 alternative regulatory mechanism to reflect the impact of an 9 approved tariff. 10 (c) Condition its approval on the public utility changing 11 its proposal if the public utility has not agreed to such 12 changes. This subparagraph division shall not be interpreted 13 to prevent the commission from identifying changes to the 14 proposal that might result in approval. 15 (5) Tariffs and programs approved pursuant to this 16 subsection shall be rebuttably presumed just and reasonable in 17 any subsequent general rate case proceeding. 18 d. The commission shall not condition approval or denial of 19 a tariff on final adoption of rules by the commission. 20 e. The commission shall adopt rules pursuant to chapter 17A 21 to implement this subsection. 22 Sec. 8. APPLICABILITY. This division of this Act applies 23 to a public utility filing an application with the utilities 24 commission for review of a tariff on or after the effective 25 date of this division of this Act. 26 DIVISION III 27 LAND RESTORATION ELECTRIC TRANSMISSION LINES APPROVED BY 28 FEDERALLY REGISTERED PLANNING AUTHORITY TRANSMISSION PLANS 29 Sec. 9. Section 478.16, Code 2025, is amended to read as 30 follows: 31 478.16 Electric transmission lines federally registered 32 planning authority transmission plans. 33 1. Development and investment in high-voltage transmission 34 is urgently needed to ensure the reliable, adequate, secure, 35 -11- LSB 1121XL (9) 91 sb/js 11/ 53
S.F. _____ H.F. _____ and stable delivery of electricity to consumers. To ensure 1 reliable electric service to the people of Iowa as a matter 2 of public policy, it is the intent of the general assembly 3 to express a preference for further investment in Iowa 4 transmission infrastructure by electric transmission owners who 5 have already dedicated significant resources to develop the 6 infrastructure on which Iowans rely and who are better able to 7 provide reliable electric service to local electric utilities 8 and retail customers in Iowa. 9 1. 2. As used in this section , unless the context otherwise 10 requires: 11 a. Electric transmission line means a high-voltage 12 electric transmission line located in this state with a 13 capacity voltage of one hundred kilovolts or more and any 14 associated electric transmission facility, including any 15 substation or other equipment located in this state . 16 b. Electric transmission owner means an individual 17 or entity who, as of July 1, 2020, formed, located, or 18 headquartered in any state who owns and maintains an 19 electric transmission line in this state that is required 20 for rate-regulated electric utilities, municipal electric 21 utilities, and rural electric cooperatives in this state to 22 provide electric service to the public for compensation. 23 c. Incumbent electric transmission owner means any an 24 individual or entity meeting the definition of the following: 25 (1) A public utility or a municipally owned utility that 26 owns, operates, and maintains an electric transmission line in 27 this state. 28 (2) An electric cooperative corporation or association or 29 municipally owned utility that owns an electric transmission 30 facility in this state and has turned over the functional 31 control of such facility to a federally approved authority. 32 (3) An an electric transmission owner as defined in 33 paragraph b on or before July 1, 2024 . 34 d. Landowner means the same as defined in section 478.2 35 -12- LSB 1121XL (9) 91 sb/js 12/ 53
S.F. _____ H.F. _____ Initial construction means the construction necessary to 1 establish and place an electric transmission line into initial 2 operation . 3 e. Load ratio share means the amount, expressed as a 4 percentage, of a public power utilitys electric load divided 5 by the total electric load in the applicable incumbent electric 6 transmission owners pricing zone. 7 e. f. Municipally owned utility means a city utility 8 as defined in section 362.2 , or an electric power agency as 9 defined in section 390.9 which that is comprised solely of 10 cities or solely of cities and other political subdivisions. 11 g. Public power utility means a municipally owned utility 12 or an electric cooperative corporation or association that 13 receives transmission service from an incumbent electric 14 transmission owner, or that is subject to regional cost 15 allocation for the electric transmission line, or both. 16 h. Qualified individual means someone who is capable and 17 knowledgable enough to determine compliance with the standards 18 set forth in this section. 19 2. 3. a. An incumbent electric transmission owner has the 20 right to construct, own, and maintain an electric transmission 21 line that has been approved for construction in a federally 22 registered planning authority transmission plan and which that 23 directly connects to an electric transmission facility owned by 24 the incumbent electric transmission owner. Where a proposed 25 electric transmission line would directly connect to electric 26 transmission facilities owned by two or more incumbent electric 27 transmission owners, each incumbent electric transmission owner 28 whose facility connects to the electric transmission line 29 has the right to construct, own, and maintain the electric 30 transmission line individually and equally. If an incumbent 31 electric transmission owner declines to construct, own, and 32 maintain its portion of an electric transmission line that 33 would connect to electric transmission facilities owned by 34 two or more incumbent electric transmission owners, then the 35 -13- LSB 1121XL (9) 91 sb/js 13/ 53
S.F. _____ H.F. _____ other incumbent electric transmission owner or owners that 1 own an electric transmission facility to which the electric 2 transmission line connects has the right to construct, own, and 3 maintain the electric transmission line individually. 4 b. An eligible incumbent electric transmission owner 5 exercising the right to construct, own, and maintain an 6 electric transmission line pursuant to paragraph a shall 7 offer public power utilities an opportunity to jointly own a 8 portion of the electric transmission line and such offer shall 9 be in an amount not less than a public power utilitys load 10 ratio share, pursuant to a written agreement. Nothing in this 11 section shall be construed to prohibit an incumbent electric 12 transmission owner and a public power utility from agreeing to 13 joint ownership of an electric transmission line in an amount 14 different than the public power utilitys load ratio share. A 15 public power utility may transfer or assign joint ownership 16 rights acquired under this section to another public power 17 utility or group of public power utilities by mutual consent of 18 the eligible contracting parties. 19 c. An eligible incumbent electric transmission owner 20 exercising the right to construct, own, and maintain an 21 electric transmission line pursuant to paragraph a may 22 contract with another electric transmission owner or electric 23 public utility as defined in section 476.1 to jointly own a 24 portion of the electric transmission line pursuant to a written 25 agreement. 26 d. For purposes of this section, a municipally owned utility 27 or an electric cooperative corporation or association may elect 28 to be an incumbent electric transmission owner or a public 29 power utility but cannot act as both with respect to a single 30 transmission line. 31 3. 4. If an electric transmission line has been approved 32 for construction in a federally registered planning authority 33 transmission plan, and the electric transmission line is 34 not subject to a right of first refusal in accordance with 35 -14- LSB 1121XL (9) 91 sb/js 14/ 53
S.F. _____ H.F. _____ the tariff of a federally registered planning authority 1 and would otherwise be subject to a competitive developer 2 process , then within the later of ninety days of approval for 3 construction or ninety days after enactment of this division 4 of this Act , an incumbent electric transmission owner, or 5 owners if there is more than one owner, that owns a connecting 6 electric transmission facility shall give written notice 7 to the commission regarding whether the incumbent electric 8 transmission owner or owners intend to construct, own, and 9 maintain the electric transmission line. If the incumbent 10 electric transmission owner or owners give notice of intent 11 to construct the electric transmission line, the incumbent 12 electric transmission owner or owners shall follow the 13 applicable franchise requirements pursuant to this chapter . 14 The incumbent electric transmission owner shall update the 15 notice to construct an electric transmission line to include 16 information concerning the implementation of joint ownership 17 as described in subsection 3, paragraphs b and c , within 18 thirty days after a written agreement has been reached between 19 the parties. If the incumbent electric transmission owner 20 or owners give notice declining to construct the electric 21 transmission line, the commission may determine whether another 22 person may construct the electric transmission line. 23 4. 5. For projects where for which an election to construct 24 an electric transmission line has been made under this section , 25 all of the following cost accountability measures shall apply: 26 a. Within thirty days after the issuance of a franchise 27 pursuant to this chapter for the electric transmission line, 28 the incumbent electric transmission owner or owners shall 29 provide to the commission an estimate of the cost to construct 30 complete the initial construction of the electric transmission 31 line. 32 b. Until the initial construction of the electric 33 transmission line is complete, the incumbent electric 34 transmission owner or owners shall provide a quarterly report 35 -15- LSB 1121XL (9) 91 sb/js 15/ 53
S.F. _____ H.F. _____ to the commission, which shall include an updated estimate of 1 the cost to construct the electric transmission line , and an 2 explanation of changes in the cost estimate from the prior 3 cost estimate , and documentation that the incumbent electric 4 transmission owner or owners have used competitively bid 5 construction contracts that meet all the technical, commercial, 6 and other specifications, such as safety performance, that 7 are required by the incumbent electric transmission owner or 8 owners with respect to the initial construction of the electric 9 transmission line . 10 c. The consumer advocate appointed under section 475A.1 11 shall have free access to documents, reports, and information 12 submitted to the commission pursuant to this subsection, 13 consistent with section 475A.4. To the extent relevant, the 14 commission and the consumer advocate may use the information 15 for any purpose properly within the scope of their respective 16 duties including but not limited to use in proceedings before 17 the federal energy regulatory commission to challenge the 18 costs incurred by the incumbent electric transmission owner. 19 However, this subsection does not create a private cause of 20 action or complaint. 21 5. 6. This section shall not modify the authority of the 22 commission under this chapter , the rights of landowners under 23 this chapter , or the requirements, rights, and obligations 24 relating to the construction, maintenance, and operation of 25 electric transmission lines pursuant to this chapter . 26 6. 7. This section shall not apply to an electric 27 transmission line to be placed underground that has not been 28 approved for construction in a federally registered planning 29 authority transmission plan. 30 7. 8. The commission shall adopt rules pursuant to chapter 31 17A to administer this section , which shall include rules 32 regarding the restoration of agricultural lands following the 33 initial construction of an electric transmission line, as 34 specified in subsection 9 . 35 -16- LSB 1121XL (9) 91 sb/js 16/ 53
S.F. _____ H.F. _____ 9. The commission shall adopt rules to implement the 1 following requirements, which shall not apply within the 2 corporate limits of a city or to any construction, activity, or 3 electric transmission lines other than the initial construction 4 of an electric transmission line with a voltage of two hundred 5 or more kilovolts and for which an election to construct has 6 been made under this section: 7 a. An incumbent electric transmission owner shall repair a 8 damaged underground drain tile as soon as practicable during 9 construction of the electric transmission line. Permanent 10 repairs to the damaged underground drain tile shall be 11 completed as soon as practicable after the initial construction 12 of the electric transmission line is complete. The repairs 13 made to the damaged drain tile shall be of at least equal 14 quality, size, and flow capacity of the original drain tile. 15 b. Following the initial construction of an electric 16 transmission line, the incumbent electric transmission owner 17 shall remove from the easement area all rock larger than 18 three inches in average diameter not native to the soil of 19 the excavated land. The rock removed from the excavated land 20 that cannot be used to backfill shall be disposed of at a 21 location and in a manner agreed upon by the incumbent electric 22 transmission owner and the landowner. 23 c. Upon completion of construction activities on a property, 24 the incumbent electric transmission owner shall deep till 25 agricultural land, including right-of-way access points or 26 roads traversed by heavy construction equipment, to alleviate 27 soil compaction. The land shall be tilled at least eighteen 28 inches deep in land used for crop production and twelve 29 inches deep in other lands unless otherwise agreed to by the 30 landowner. 31 d. Upon completion of the electric transmission line, 32 the incumbent electric transmission owner shall restore the 33 soil conservation practices and structures damaged during 34 construction of the electric transmission line to the elevation 35 -17- LSB 1121XL (9) 91 sb/js 17/ 53
S.F. _____ H.F. _____ and grade existing on the land prior to the construction. 1 The soil used to repair embankments intended to retain water 2 shall be well compacted. Any vegetation disturbed during 3 construction shall be reestablished, including cover crops when 4 appropriate. 5 e. Following compaction of the land, agricultural land that 6 is not in row crop or small grain production at the time of 7 construction, including hay ground and land in conservation or 8 set-aside programs, shall be reseeded and a cover crop shall 9 be utilized when appropriate. Seeding for cover crops may be 10 delayed if the construction of the electric transmission line 11 is completed too late in the year for a cover crop to become 12 established and is not required if the land will be tilled in 13 the following year. The landowner may request ground cover 14 to prevent soil erosion in areas where construction on the 15 electric transmission line is completed if the season is not 16 suitable for seeding a cover crop. 17 f. Unless agreed upon by the incumbent electric transmission 18 owner and the landowner, the incumbent electric transmission 19 owner shall remove field entrances or temporary roads built for 20 the purpose of constructing the electric transmission line upon 21 the completion of the initial construction and restore the area 22 to its previous use. 23 g. An incumbent electric transmission owner shall use good 24 utility practices for constructing the electric transmission 25 line in wet conditions, such as electing to use matting or 26 padding when utilizing heavy equipment. An incumbent electric 27 transmission owner shall grade and till any rutted land to 28 restore, to the extent practicable, the original condition of 29 the land prior to the construction of the electric transmission 30 line. If agreed upon by the incumbent electric transmission 31 owner and the landowner, the landowner may repair any damage 32 caused by construction activities in wet conditions and the 33 incumbent electric transmission owner shall reimburse the 34 landowner for the reasonable cost incurred to repair the 35 -18- LSB 1121XL (9) 91 sb/js 18/ 53
S.F. _____ H.F. _____ damage. If an incumbent electric transmission owner utilizes 1 heavy equipment in wetlands or mudflats, mats or other measures 2 shall be utilized to minimize soil disturbance. 3 h. For each electric transmission line, the incumbent 4 electric transmission owner shall designate a point of 5 contact for inquiries or claims from an affected person. The 6 designation shall include a name, a telephone number, an email 7 address, and an address. 8 10. a. If an incumbent electric transmission owner and 9 a landowner dispute a potential violation of the restoration 10 standards provided in subsection 9, the commission may 11 appoint a qualified individual to inspect the property for 12 compliance. If the qualified individual determines that 13 there has been a violation of the applicable restoration 14 standards, the commission shall provide oral notice, followed 15 by written notice, to the incumbent electric transmission 16 owner and the contractor operating for the incumbent electric 17 transmission owner and order corrective action to comply with 18 the restoration standards. The incumbent electric transmission 19 owner shall be responsible for the costs of the corrective 20 action. 21 b. If the incumbent electric transmission owner or the 22 contractor for the incumbent electric transmission owner does 23 not comply with a valid order for corrective action issued by 24 the commission, the commission may issue an order requiring 25 corrective action to be taken and may impose civil penalties 26 under section 478.29. 27 c. The commission shall instruct the inspector appointed by 28 the commission regarding the content of the statutes and rules 29 and the responsibility of the inspector to require restoration 30 conforming with the standards established in subsection 9. 31 11. a. A petitioner for a franchise for an electric 32 transmission line shall file with the petition a written land 33 restoration plan that documents how the requirements and rules 34 of subsection 9 will be met. The petitioner shall provide a 35 -19- LSB 1121XL (9) 91 sb/js 19/ 53
S.F. _____ H.F. _____ copy of the plan to all landowners of property that will be 1 disturbed by the initial construction. 2 b. Nothing in this section shall preclude the application 3 of provisions for protecting or restoring property that are 4 different than those prescribed in subsection 9, in rules 5 adopted under subsection 9, or in the land restoration plan, 6 if the alternative provisions are contained in agreements 7 independently executed by the incumbent electric transmission 8 owner and the landowner. Independent agreements for land 9 restoration between the incumbent electric transmission owner 10 and the landowner shall be in writing and provided to the 11 commission. 12 c. The commission may by waiver allow variations from 13 the requirements of subsection 9 if the incumbent electric 14 transmission owner requesting a waiver satisfies the standards 15 set forth in section 17A.9A and if the alternative methods 16 proposed by the incumbent electric transmission owner would 17 restore the land to a condition as good as or better than as 18 provided for in subsection 9. 19 d. The commission may waive preparation of a separate 20 land restoration plan if the incumbent electric transmission 21 owner enters into an agricultural impact mitigation plan 22 or similar agreement with the appropriate agencies of this 23 state that satisfies the requirements of subsection 9. If a 24 mitigation plan or agreement is used to fully or partially meet 25 the requirements of a land restoration plan, the statement 26 or agreement shall be filed with the commission and shall be 27 considered to be, or to be part of, the land restoration plan 28 for purposes of subsection 9. 29 12. Nothing in this section shall limit, expand, or 30 otherwise modify the rights of access and obligations for 31 damages set forth in section 478.17. 32 Sec. 10. Section 478.18, Code 2025, is amended to read as 33 follows: 34 478.18 Supervision of construction location. 35 -20- LSB 1121XL (9) 91 sb/js 20/ 53
S.F. _____ H.F. _____ 1. The utilities commission shall have power of supervision 1 over the construction of a transmission line and over its 2 future operation and maintenance , including inspections for 3 compliance with the standards adopted under section 478.16 4 after restoration of the land is complete . 5 2. A transmission line shall be constructed near and 6 parallel to roads, to the right-of-way of the railways of the 7 state, or along the division lines of the lands, according 8 to the government survey, wherever the same is practicable 9 and reasonable, and so as not to interfere with the use 10 by the public of the highways or streams of the state, nor 11 unnecessarily interfere with the use of any lands by the 12 occupant. 13 3. The utilities commission may contract a qualified 14 individual for the purpose of inspections authorized under 15 section 478.16. The reasonable cost of the inspection shall 16 be paid by the incumbent electric transmission owner. The 17 utilities commission shall instruct the inspector appointed by 18 the commission regarding the content of the statutes and rules 19 and the responsibility of the inspector to require restoration 20 conforming with the applicable standards established in section 21 478.16. For purposes of this section, qualified individual 22 means the same as defined in section 478.16. 23 Sec. 11. EFFECTIVE DATE. This division of this Act, being 24 deemed of immediate importance, takes effect upon enactment. 25 Sec. 12. RETROACTIVE APPLICABILITY. With the exception 26 of the portion of the section of this division of this Act 27 amending section 478.16, subsection 3, paragraph b, this 28 division of this Act applies retroactively to transmission 29 lines included in a federally registered planning authority 30 long-term transmission plan approved on or after July 1, 31 2020. The portion of the section of this division of this 32 Act amending section 478.16, subsection 3, paragraph b, 33 shall apply retroactively to transmission lines included in a 34 federally registered planning authority long-term transmission 35 -21- LSB 1121XL (9) 91 sb/js 21/ 53
S.F. _____ H.F. _____ plan approved on or after July 1, 2024. 1 DIVISION IV 2 ENERGY AND WATER INFRASTRUCTURE REVOLVING LOAN PROGRAM 3 Sec. 13. Section 476.46A, Code 2025, is amended to read as 4 follows: 5 476.46A Energy and water infrastructure revolving loan 6 program. 7 1. a. An energy and water infrastructure revolving loan 8 fund is created in the office of the treasurer of state and 9 shall be administered by the Iowa energy center economic 10 development authority established in section 15.120 15.105 . 11 b. The fund may be administered as a revolving fund and may 12 consist of any moneys appropriated by the general assembly for 13 purposes of this section and any other moneys that are lawfully 14 directed to the fund. 15 c. Moneys in the fund shall be used to provide financial 16 assistance for the development and construction of energy or 17 water infrastructure , including projects that support electric 18 or gas generation transmission, storage, or distribution; 19 electric grid modernization; energy-sector workforce 20 development; emergency preparedness for rural and underserved 21 areas; the expansion of biomass, biogas, and renewable 22 natural gas; innovative technologies; and the development of 23 infrastructure for alternative fuel vehicles that support 24 economic development . 25 d. Notwithstanding section 8.33 , moneys appropriated in this 26 section that remain unencumbered or unobligated at the close of 27 the fiscal year shall not revert but shall remain available for 28 expenditure for the purposes designated until the close of the 29 succeeding fiscal year. 30 e. Notwithstanding section 12C.7, subsection 2 , interest or 31 earnings on moneys in the fund shall be credited to the fund. 32 2. a. The Iowa energy center economic development 33 authority shall establish and administer an energy and 34 water infrastructure revolving loan program to encourage the 35 -22- LSB 1121XL (9) 91 sb/js 22/ 53
S.F. _____ H.F. _____ development of energy and water infrastructure within the 1 state. 2 b. An individual, business, rural electric cooperative, 3 or municipal utility located and operating in this state 4 shall be eligible for financial assistance under the program. 5 With the approval of the Iowa energy center governing board 6 established under section 15.120, subsection 2 , the economic 7 development authority shall determine the amount and the 8 terms of all financial assistance awarded to an individual, 9 business, rural electric cooperative, or municipal utility 10 under the program. All agreements and administrative authority 11 shall be vested in the Iowa energy center governing board. 12 To be eligible for a financial assistance award under the 13 energy and water infrastructure revolving loan program, an 14 eligible borrower must demonstrate that the proposed project 15 will attract and encourage the location of new industrial 16 enterprise or the expansion of existing industrial enterprise. 17 Eligible borrowers may be awarded financial assistance 18 under the program for projects that support electric or gas 19 generation transmission, storage, or distribution; electric 20 grid modernization; energy sector workforce development; 21 emergency preparedness for rural and underserved areas; the 22 expansion of biomass, biogas, and renewable natural gas; or 23 innovative technologies and drinking water treatment systems 24 and wastewater treatment systems. The economic development 25 authority shall determine the amount and the terms of all 26 financial assistance awarded to an eligible borrower under the 27 program. All agreements and administrative authority shall be 28 vested in the economic development authority. The economic 29 development authority may adopt rules for the implementation of 30 this program. 31 c. The economic development authority may use not more than 32 five percent of the moneys in the fund at the beginning of each 33 fiscal year for purposes of administrative costs, marketing, 34 technical assistance, and other program support. 35 -23- LSB 1121XL (9) 91 sb/js 23/ 53
S.F. _____ H.F. _____ d. Each fiscal year beginning July 1, 2025, the economic 1 development authority shall be authorized to transfer an amount 2 not to exceed six hundred thirty-three thousand dollars from 3 the energy and water infrastructure revolving loan fund to Iowa 4 state university of science and technology to be used for the 5 purposes of providing financial assistance to the state load 6 forecasting center. 7 3. For the purposes of this section : 8 a. Eligible borrower means an individual, business, 9 county, city, rural electric cooperative, or municipal utility 10 located and operating in this state. 11 a. b. Energy infrastructure means land, buildings, 12 physical plant and equipment, and services directly related 13 to the development of projects used for, or useful for, 14 electricity or gas generation, transmission, storage, or 15 distribution. 16 b. c. Financial assistance means the same as defined in 17 section 15.102 . 18 d. Water infrastructure means water pollution control 19 facilities useful for the collection, treatment, and disposal 20 of sewage and industrial waste in a sanitary manner and 21 drinking water facilities useful for providing potable water to 22 residents served by a water system. 23 DIVISION V 24 ANAEROBIC DIGESTER SYSTEMS 25 Sec. 14. NEW SECTION . 459C.101 Title. 26 This chapter shall be known and may be cited as the Animal 27 Agriculture Compliance Act for Anaerobic Digester Systems . 28 Sec. 15. NEW SECTION . 459C.102 Definitions. 29 1. For purposes of this chapter, unless the context 30 otherwise requires: 31 a. Anaerobic digester system or digester means a covered 32 manure storage structure, if the function of the manure storage 33 structure is to process manure, by employing environmental 34 conditions including bacteria to break down organic matter in 35 -24- LSB 1121XL (9) 91 sb/js 24/ 53
S.F. _____ H.F. _____ the absence of oxygen, and is used for producing, collecting, 1 and utilizing a biogas, and may also process on-farm and 2 off-farm organic feedstocks, and food products or food for 3 human consumption if approved by the department pursuant to 4 section 459C.201, subsection 4. Anaerobic digester system 5 also includes related buildings, storage structures, transfer 6 pipes, and stockpiles associated with the digester process. 7 b. Digestate means the dry or liquid nutrient-rich 8 material that remains after the anaerobic digestion of organic 9 matter, such as agricultural residues, food waste, or manure. 10 c. Off-farm organic feedstocks means organic materials 11 that originate from outside the farm but can be used within 12 farming systems, particularly for soil enrichment, composting, 13 or other agricultural purposes. 14 d. On-farm organic feedstocks means organic materials 15 that are produced as by-products of farming activities that 16 typically come from plant or animal sources and may include 17 crop residues and other organic waste generated during farm 18 operations. 19 e. Owner means the person who owns an anaerobic digester 20 system. 21 2. Where not in conflict with the definitions set out in 22 subsection 1, the definitions provided in sections 459.102, 23 459A.102, and 459B.102 shall control. 24 Sec. 16. NEW SECTION . 459C.103 General authority 25 commission and department purpose compliance. 26 1. The commission shall establish, by rule adopted pursuant 27 to chapter 17A, requirements relating to the construction, 28 including expansion, or operation of anaerobic digester 29 systems, including related buildings, storage structures, 30 transfer pipes, and stockpiles. 31 2. The purpose of this chapter is to provide requirements 32 relating to the construction, including the expansion, and 33 operation of anaerobic digester systems and the control of 34 digestate, which purpose shall be construed to supplement 35 -25- LSB 1121XL (9) 91 sb/js 25/ 53
S.F. _____ H.F. _____ applicable provisions of chapters 459, 459A, and 459B. If 1 there is a conflict between the provisions of this chapter and 2 chapters 459, 459A, and 459B, the provisions of this chapter 3 shall prevail. 4 Sec. 17. NEW SECTION . 459C.201 Anaerobic digester systems 5 permit requirements. 6 1. The department shall approve applications for permits 7 for the construction, including the expansion, of anaerobic 8 digester systems, as provided by rules adopted pursuant to this 9 chapter. The departments decision to approve a permit for the 10 construction of an anaerobic digester system shall be based on 11 whether the application is submitted according to procedures 12 required by the department and the application meets standards 13 established by the department. Construction of an anaerobic 14 digester system requiring a permit under this section shall not 15 begin until the department first approves the application and 16 issues a construction permit. 17 2. In addition to the construction permit application under 18 subsection 1, the following must be submitted in order for the 19 department to approve the application: 20 a. A two hundred fifty dollar construction permit 21 application fee. 22 b. A written plan for the disposal of the digestate. 23 c. A written operation plan for the anaerobic digester 24 system detailing the responsibilities of all owners, animal 25 feeding operations, or other entities involved in the anaerobic 26 digester system processes. 27 3. Every anaerobic digester system shall obtain a 28 construction permit, regardless of size of the anaerobic 29 digester system or facility. The owner of the anaerobic 30 digester system is considered the applicant and shall be 31 responsible for the construction and operation of the anaerobic 32 digester system. 33 4. a. Every anaerobic digester system is intended to accept 34 only manure unless department approval is obtained for the 35 -26- LSB 1121XL (9) 91 sb/js 26/ 53
S.F. _____ H.F. _____ inclusion of on-farm and off-farm organic by-products, food 1 products, or food for human consumption. Nonmanure material 2 shall not exceed ten percent of the total material added to the 3 anaerobic digester system. 4 b. Daily records of the volumes of all materials added 5 to the anaerobic digester system shall be required to be 6 maintained at the facility. 7 c. The department may require additional testing or 8 monitoring of any manure or nonmanure component being added 9 to the anaerobic digester system. The department may require 10 additional testing of the digestate. 11 d. Medical wastes, including expired or unused antibiotics, 12 petroleum products not designed for use in manure storage 13 facilities, pesticides, paints, solvents, hazardous materials, 14 municipal or sanitary waste or sludge, industrial wastewater, 15 contaminated feedstock, slaughterhouse wastes, and residues 16 from processing of food materials that have not been deemed 17 acceptable for human consumption shall not be processed in the 18 anaerobic digester system. 19 Sec. 18. NEW SECTION . 459C.202 Construction design standard 20 anaerobic digester systems. 21 1. The department shall adopt rules establishing 22 construction design standards for formed manure storage 23 structures that are part of an anaerobic digester system. 24 2. The construction design standards shall be based, to 25 every extent possible, upon uniform standards such as available 26 standards promulgated by the American society for testing and 27 materials international. The department may require that all 28 or part of a formed manure storage structure be constructed of 29 concrete. 30 3. The construction design standards for concrete shall 31 provide for all of the following: 32 a. The concretes minimum compressive strength calculated on 33 a pounds-per-square-inch basis. 34 b. The use of reinforcement, including but not limited to 35 -27- LSB 1121XL (9) 91 sb/js 27/ 53
S.F. _____ H.F. _____ the grade, amount, and location of steel rebar, fiberglass, or 1 similar materials set in the concrete, or the use of exterior 2 braces to support joints. 3 c. The depth of footings. 4 d. The thickness of the footings, the floor, and walls. 5 4. A person shall only construct a formed manure storage 6 structure on karst terrain or an area that drains into a known 7 sinkhole pursuant to upgraded construction design standards 8 necessary to ensure that the structure does not pollute 9 groundwater sources. The construction of unformed manure 10 storage structures is prohibited on karst terrain. 11 Sec. 19. NEW SECTION . 459C.203 Distance requirements. 12 1. Water quality related requirements. 13 a. Except as provided in paragraph b , the following 14 requirements shall apply to the location of an anaerobic 15 digester system manure storage structure: 16 (1) An anaerobic digester system manure storage structure 17 shall not be constructed closer than five hundred feet away 18 from the surface intake of an agricultural drainage well. An 19 anaerobic digester system manure storage structure shall not 20 be constructed closer than two thousand feet from a wellhead, 21 cistern of an agricultural drainage well, or known sinkhole. 22 (2) An anaerobic digester system manure storage structure 23 shall not be constructed if the anaerobic digester system 24 manure storage structure as constructed is closer than any of 25 the following: 26 (a) Five hundred feet away from a water source other than a 27 major water source. 28 (b) One thousand feet away from a major water source. 29 (c) Two thousand five hundred feet away from a designated 30 wetland. 31 (3) (a) A water source, other than a major water source, 32 shall not be constructed, expanded, or diverted, if the water 33 source as constructed, expanded, or diverted is closer than 34 five hundred feet away from an anaerobic digester system manure 35 -28- LSB 1121XL (9) 91 sb/js 28/ 53
S.F. _____ H.F. _____ storage structure. 1 (b) A major water source shall not be constructed, expanded, 2 or diverted, if the major water source as constructed, 3 expanded, or diverted is closer than one thousand feet from an 4 anaerobic digester system manure storage structure. 5 (c) A designated wetland shall not be established, if the 6 designated wetland is closer than two thousand five hundred 7 feet away from an anaerobic digester system manure storage 8 structure. 9 (4) An anaerobic digester system manure storage structure 10 shall not be constructed on land that is part of a one 11 hundred year floodplain as designated by rules adopted by the 12 department pursuant to section 459.301. 13 b. A separation distance required in paragraph a shall not 14 apply to any of the following: 15 (1) A location or object and a farm pond or privately owned 16 lake, as defined in section 462A.2. 17 (2) An anaerobic digester system manure storage structure 18 constructed with a secondary containment barrier. The 19 department shall adopt rules providing for the construction and 20 use of a secondary containment barrier, including construction 21 design standards. 22 2. Air quality related requirements. 23 a. Except as provided in paragraph b , the following 24 requirements shall apply to the location of an anaerobic 25 digester system manure storage structure: 26 (1) An anaerobic digester system manure storage structure 27 shall not be constructed closer than three thousand feet from 28 a residence not owned by the owner of the anaerobic digester 29 system or the owner of the animal feeding operation where the 30 anaerobic digester system is located; a bona fide religious 31 institution; a public use area; a commercial enterprise; or an 32 educational institution. 33 (2) An anaerobic digester system manure storage structure 34 shall not be constructed closer than one hundred feet from a 35 -29- LSB 1121XL (9) 91 sb/js 29/ 53
S.F. _____ H.F. _____ public thoroughfare. 1 b. A separation distance required in paragraph a shall not 2 apply to any of the following: 3 (1) (a) An anaerobic digester system manure storage 4 structure that is constructed or expanded, if the titleholder 5 of the land benefiting from the distance separation requirement 6 executes a written waiver with the titleholder of the land 7 where the structure is located. If an anaerobic digester 8 system manure storage structure is constructed or expanded 9 within the separation distance required between an anaerobic 10 digester system manure storage structure and a public 11 thoroughfare, the state or a political subdivision constructing 12 or maintaining the public thoroughfare benefiting from the 13 distance separation requirement may execute a written waiver 14 with the titleholder of the land where the structure is 15 located. 16 (b) A written waiver under this subsection becomes 17 effective only upon the recording of the waiver in the office 18 of the recorder of the county in which the benefited land is 19 located. The filed waiver shall preclude enforcement by the 20 state as it relates to a distance requirement between the 21 anaerobic digester system manure storage structure and the 22 location or object benefiting from the separation distance 23 requirement. 24 (2) An anaerobic digester system manure storage structure 25 that is constructed or expanded within any distance from a 26 residence, educational institution, commercial enterprise, bona 27 fide religious institution, city, or public use area, if the 28 residence, educational institution, commercial enterprise, or 29 bona fide religious institution was constructed or expanded, or 30 the boundaries of the city or public use area were expanded, 31 after the date that the anaerobic digester system manure 32 storage structure was established. The date the anaerobic 33 digester system manure storage structure was established is 34 the date on which the anaerobic digester system commenced 35 -30- LSB 1121XL (9) 91 sb/js 30/ 53
S.F. _____ H.F. _____ operating. A change in ownership or expansion of the anaerobic 1 digester system shall not change the established date of 2 operation. 3 Sec. 20. NEW SECTION . 459C.301 Minimum requirements for 4 digestate control. 5 1. An anaerobic digester system shall retain all digestate 6 produced by the operation between periods of digestate disposal 7 or delivery to animal feeding operations. For purposes of 8 this section, dry digestate may be retained by stockpiling as 9 provided in this subchapter. An anaerobic digester system 10 shall not discharge digestate directly into water of the state 11 or into a tile line that discharges directly into water of the 12 state. 13 2. Digestate from an anaerobic digester system shall be 14 disposed of in a manner that will not cause surface water or 15 groundwater pollution. 16 3. The owner of the anaerobic digester system that 17 discontinues the use of the operation shall remove all 18 digestate from related anaerobic digester system structures 19 used to store digestate within six months following the date 20 that the anaerobic digester system is discontinued. 21 Sec. 21. NEW SECTION . 459C.302 Disposal of digestate 22 requirements. 23 1. If digestate is returned to an animal feeding operation 24 for land application, the material must be accounted for in the 25 animal feeding operations manure management plan or nutrient 26 management plan. 27 2. For any portion of the digestate not returned to an 28 animal feeding operation, the owner of the anaerobic digester 29 system shall satisfy all applicable law for proper application 30 of the digestate. 31 Sec. 22. NEW SECTION . 459C.401 Stockpiling requirements. 32 1. An anaerobic digester system may stockpile materials 33 prior to digestation or dry digestate so long as the facility 34 stockpiles the materials and dry digestate in compliance with 35 -31- LSB 1121XL (9) 91 sb/js 31/ 53
S.F. _____ H.F. _____ restrictions applicable to stockpiling as provided in this 1 subchapter. 2 2. Anaerobic digester system stockpiles shall not be 3 commingled with animal feeding operation stockpiles. 4 3. A person shall not stockpile the materials and dry 5 digestate within the following distances from any of the 6 following: 7 a. A terrace tile inlet or surface tile inlet, two hundred 8 feet. However, this paragraph does not apply to a person who 9 stockpiles the dry digestate in a manner that does not allow 10 precipitation-induced runoff to drain from the stockpile to the 11 terrace tile inlet or surface tile inlet. A terrace tile inlet 12 or surface tile inlet does not include a tile inlet that is not 13 directly connected to a tile line that discharges directly into 14 a water of the state. 15 b. (1) A designated area, four hundred feet. However, an 16 increased separation distance of eight hundred feet shall apply 17 to all of the following: 18 (a) A high-quality water resource. 19 (b) An agricultural drainage well. 20 (c) A known sinkhole. 21 (2) Subparagraph (1) does not apply to a person who 22 stockpiles materials or dry digestate in a manner that does not 23 allow precipitation-induced runoff to drain from the stockpile 24 to the designated area. 25 c. One thousand two hundred fifty feet from a residence 26 not owned by the owner of the anaerobic digester system or 27 the owner of the animal feeding operation where the anaerobic 28 digester system is located; a bona fide religious institution; 29 a public use area; a commercial enterprise; or an educational 30 institution. 31 4. A person shall not stockpile materials or dry digestate 32 in a grassed waterway. 33 5. A person shall not stockpile materials or dry digestate 34 on land having a slope of more than three percent. However, 35 -32- LSB 1121XL (9) 91 sb/js 32/ 53
S.F. _____ H.F. _____ this subsection shall not apply to a person who stockpiles 1 materials or dry digestate using methods, structures, or 2 practices that contain the stockpile, including but not limited 3 to silt fences, temporary earthen berms, or other effective 4 measures, and that prevent or diminish precipitation-induced 5 runoff from the stockpile. 6 6. A person stockpiling materials or dry digestate on 7 terrain, other than karst terrain, for more than fifteen 8 consecutive days shall comply with any of the following: 9 a. Stockpile materials or dry digestate using a qualified 10 stockpile structure or qualified stockpile cover. However, the 11 person shall not stockpile materials or dry digestate using a 12 qualified stockpile cover at a long-term stockpile location 13 unless the person stockpiles the materials or dry digestate 14 on compacted soil, compacted granular aggregates, asphalt, 15 concrete, or other similar materials. 16 b. Deliver a stockpile inspection statement to the 17 department by the fifteenth day of each month in writing, which 18 may be on a form prescribed by the department. The stockpile 19 inspection statement shall provide the location of the 20 stockpile and document the results of an inspection conducted 21 by the person during the previous month. The inspection must 22 evaluate whether precipitation-induced runoff is draining 23 away from the stockpile and, if so, describe actions taken 24 to prevent the runoff. If an inspection by the department 25 documents that precipitation-induced runoff is draining away 26 from a stockpile, the person shall immediately remove dry 27 digestate from the stockpile in compliance with this chapter 28 or comply with all directives of the department to prevent the 29 runoff. 30 7. A person stockpiling materials or dry digestate on karst 31 terrain shall comply with all of the following: 32 a. If the proposed stockpile is located in potential karst 33 terrain, a professional engineer licensed in Iowa or a staff 34 person or organization qualified through the Iowa natural 35 -33- LSB 1121XL (9) 91 sb/js 33/ 53
S.F. _____ H.F. _____ resource conservation service shall submit a soil report to 1 the department, based on the results from soil corings, test 2 pits, or acceptable well log data, describing the subsurface 3 materials and vertical separation distance from the proposed 4 bottom of the stockpile to the underlying limestone, dolomite, 5 or soluble rock. A minimum of two soil corings spaced equally 6 within the stockpile location or two test pits located within 7 five feet of the outside of the stockpile location are required 8 if acceptable well log data is not available. The soil 9 corings shall be taken to a minimum depth of twenty-five feet 10 below the bottom elevation of the proposed stockpile or into 11 bedrock, whichever is shallower. After the soil exploration 12 is complete, each coring or test pit shall be properly plugged 13 with concrete grout, bentonite, or similar materials and 14 completion of this activity shall be documented in the soil 15 report. If a twenty-five-foot vertical separation distance can 16 be maintained between the bottom of the proposed stockpile and 17 limestone, dolomite, or other soluble rock, then the structure 18 is not considered to be in karst terrain. 19 b. The person shall stockpile the dry digestate at a 20 location where there is a vertical separation distance of at 21 least five feet between the bottom of the stockpile and the 22 underlying limestone, dolomite, or other soluble rock. 23 c. A person who stockpiles materials or dry digestate 24 for more than fifteen consecutive days shall use any of the 25 following: 26 (1) A qualified stockpile structure. 27 (2) A qualified stockpile cover. However, the person shall 28 not stockpile materials or dry digestate using a qualified 29 stockpile cover at a long-term stockpile location unless the 30 stockpile is located on reinforced concrete at least five 31 inches thick. 32 8. A person stockpiling materials or dry digestate shall 33 comply with applicable national pollutant discharge elimination 34 system permit requirements pursuant to the federal Water 35 -34- LSB 1121XL (9) 91 sb/js 34/ 53
S.F. _____ H.F. _____ Pollution Control Act, 33 U.S.C. ch. 26, as amended, and 40 1 C.F.R. pts. 122 and 412. 2 9. A person stockpiling materials or dry digestate shall 3 remove the dry digestate and apply it in accordance with 4 the provisions of this chapter within six months after the 5 materials or dry digestate are first stockpiled. 6 Sec. 23. NEW SECTION . 459C.501 General enforcement. 7 The department and the attorney general shall enforce the 8 provisions of this chapter in the same manner as provided in 9 chapter 459, subchapter VI. 10 Sec. 24. NEW SECTION . 459C.502 Violations civil penalty. 11 A person who violates a provision of this chapter for which 12 the alleged harm is related to air quality shall be subject 13 to the same penalty as provided in section 459.602. A person 14 who violates a provision of this chapter for which the alleged 15 harm is related to water quality shall be subject to the same 16 penalties and restrictions as provided in section 459.603. A 17 habitual violator of the provisions of this chapter shall be 18 subject to the same penalties and restrictions as provided in 19 sections 459.604 and 459.605. Any collected civil penalty 20 and interest on a civil penalty shall be credited to the Iowa 21 nutrient research fund created in section 466B.46. 22 Sec. 25. CODE EDITOR DIRECTIVE. 23 1. The Code editor shall designate sections 459C.101 24 through 459C.502, as enacted by this division of this Act, as 25 new chapter 459C, entitled Anaerobic Digester Systems. 26 2. The Code editor shall designate sections 459C.101 27 through 459C.103, as enacted by this division of this Act, 28 as a new subchapter within chapter 459C, entitled General 29 Provisions. 30 3. The Code editor shall designate sections 459C.201 31 through 459C.203, as enacted by this division of this Act, as 32 a new subchapter within chapter 459C, entitled Construction 33 Provisions. 34 4. The Code editor shall designate sections 459C.301 35 -35- LSB 1121XL (9) 91 sb/js 35/ 53
S.F. _____ H.F. _____ through 459C.302, as enacted by this division of this Act, 1 as a new subchapter within chapter 459C, entitled Digestate 2 Disposal. 3 5. The Code editor shall designate section 459C.401, as 4 enacted by this division of this Act, as a new subchapter 5 within chapter 459C, entitled Stockpiling Provisions. 6 6. The Code editor shall designate sections 459C.501 7 through 459C.502, as enacted by this division of this Act, as 8 a new subchapter within chapter 459C, entitled Enforcement 9 Provisions. 10 EXPLANATION 11 The inclusion of this explanation does not constitute agreement with 12 the explanations substance by the members of the general assembly. 13 This bill relates to rate-regulated utilities by modifying 14 provisions relating to electric power generation, energy 15 storage, and transmission facility ratemaking principles, 16 creating tariffs for public utility innovation programs, 17 implementing land restoration standards, and modifying the 18 energy infrastructure revolving loan program. 19 Division I of the bill modifies intent language to reflect 20 an intent to attract energy storage and develop nuclear power 21 generation for consumers in the state. 22 Division I of the bill alters ratemaking principle 23 processes and modifies when a rate-regulated public utility 24 may seek ratemaking principles. In addition to electric 25 power generating facilities and alternate energy production 26 facilities, the utilities commission (commission) may specify 27 the ratemaking principles applying to an energy storage 28 facility. 29 Division I of the bill provides that a rate-regulated 30 public utility may seek ratemaking principles from the 31 commission when there are construction-related costs of an 32 electric power generating facility with a nameplate generating 33 capacity equal to or greater than 40 megawatts, an alternate 34 energy production facility, or an energy storage facility, 35 -36- LSB 1121XL (9) 91 sb/js 36/ 53
S.F. _____ H.F. _____ or significant alterations to an existing electric power 1 generating facility, alternate energy production facility, 2 or energy storage facility. Current law generally provides 3 that when a rate-regulated public utility files an application 4 to construct a baseload electric power generating facility 5 with a nameplate generating capacity equal to or greater than 6 300 megawatts or a combined-cycle electric power generating 7 facility or an alternate energy production facility, or to 8 significantly alter an existing generating facility or a new 9 alternate energy production facility, the commission shall 10 specify in advance the ratemaking principles that will apply. 11 Division I of the bill modifies the requirements for a 12 significant alteration of an existing generating facility 13 to qualify for the establishment of ratemaking principles. 14 Division I of the bill provides that to qualify for ratemaking 15 principles, the significant alteration can convert an electric 16 power generating facility to an alternate fuel type, add 17 carbon capture and carbon storage to an electric power 18 generating facility, add a facility to capture exhaust heat to 19 an electric power generating facility, repower an alternate 20 energy production facility, or add energy storage to an 21 existing electric power generating facility, alternate energy 22 production facility, or energy storage facility. Current 23 law provides that to qualify for ratemaking principles, the 24 significant alteration can convert a coal-fueled facility into 25 a gas-fueled facility, add carbon capture and carbon storage 26 to a coal-fueled facility, add gas-fueled capability to a 27 coal-fueled facility, add a biomass-fueled capability to a 28 coal-fueled facility, or repower an alternate energy production 29 facility. 30 Division I of the bill provides that a utility investment to 31 convert an electric power generating facility to a different 32 fuel type, add carbon capture and carbon storage to an electric 33 power generating facility, or add a fuel type to an electric 34 power generating facility shall be eligible to apply the 35 -37- LSB 1121XL (9) 91 sb/js 37/ 53
S.F. _____ H.F. _____ ratemaking principles established by an order issued prior to 1 construction or lease of a facility. 2 Division I of the bill provides that a rate-regulated 3 public utility may seek ratemaking principles for leasing 4 or owning a new electric power generating facility with a 5 nameplate generating capacity equal to or greater than 40 6 megawatts, a new energy storage facility, or a new alternate 7 energy production facility. Current law provides that 8 a rate-regulated public utility leasing or owning a new 9 baseload electric power generating facility with a nameplate 10 generating capacity equal to or greater than 300 megawatts, 11 a combined-cycle electric power generating facility, or a 12 new alternate energy production facility may seek ratemaking 13 principles. 14 Division I of the bill requires the commission to issue an 15 order after the contested case proceeding that the ratemaking 16 principles will apply when the costs of the electric power 17 generating facility or alternate energy production facility 18 are included in regulated electric rates once the commission 19 finds that the rate-regulated public utilitys application for 20 ratemaking principles meets all the commissions requirements. 21 Division I of the bill requires a rate-regulated public 22 utility seeking ratemaking principles to provide support of 23 reasonability with an electric utility resource plan that has 24 been updated within 24 months of filing the application. 25 Division I of the bill requires the commission to adopt 26 rules for proceedings to conclude 10 months after a petition is 27 filed. 28 Division I of the bill requires rate-regulated electric 29 utilities to file a resource plan at least once every five 30 years. The resource plan must consider all reasonable 31 resources by the utility for meeting the probable future demand 32 for energy, including supply resources and conservation and 33 management of demand. For conservation and management of 34 demand, the resource plan shall include programs approved in 35 -38- LSB 1121XL (9) 91 sb/js 38/ 53
S.F. _____ H.F. _____ the electric utilitys most recently approved energy efficiency 1 plan. The objectives of the resource plan include but are 2 not limited to adequate, cost-effective, and reliable energy 3 service considering costs, fuel diversity, and probable future 4 demand for energy, and should reflect the circumstances and 5 management judgment of the electric utility. The resource 6 plan does not require specific outcomes or specific investment 7 decisions. 8 Division I of the bill directs the commission to issue an 9 order within 90 days of the resource plan acknowledging receipt 10 of the plan. This order may provide recommendations to an 11 electric utility regarding any additional analyses or actions 12 that the electric utility should consider completing in its 13 next resource plan. 14 Division I of the bill directs the commission to adopt rules 15 regarding the timeline and stakeholder process to review and 16 provide comments on the resource plan. The stakeholder process 17 shall include the electric utility organizing and facilitating 18 a stakeholder conference with representatives of the 19 commission, the consumer advocate, and the electric utilitys 20 customers. Division I of the bill directs the electric utility 21 to make a good faith effort to inform and consider input from 22 the commission, the consumer advocate, and stakeholders. 23 Division II of the bill provides that it is the intent of 24 the general assembly to encourage public utility innovation 25 in pricing and programs, and that the new innovations not 26 negatively impact nonparticipating customers. Division II 27 of the bill additionally provides that it is the intent of 28 the general assembly to attract and retain customers for the 29 benefit of the states economy, support of economical energy 30 production, and support of sustainable energy production. 31 Division II of the bill authorizes a tariff program. 32 Division II of the bill provides that a tariff shall comply 33 with several provisions. The tariff shall be optional for 34 customers, define eligible customer groups, and assess 35 -39- LSB 1121XL (9) 91 sb/js 39/ 53
S.F. _____ H.F. _____ program costs to participating customers. Program costs 1 shall include specified direct costs arising from the tariff 2 program and costs related to the implementation of tariff 3 programs. Participants of a tariff program shall participate 4 in future indirect costs allocated to customers of that 5 utility without regard for the existence of an approved tariff. 6 The tariff shall not allow for an eligible customer group 7 excluding directly competing customers in the same customer 8 service territory, alter existing base rate or charges of 9 the public utility, or negatively impact nonparticipating 10 customers. Negative impacts include additional costs incurred 11 by nonparticipating customers due to costs arising from the 12 tariff, tariff participants no longer sharing in customer 13 class costs, or decreased customer benefit from existing 14 infrastructure. 15 Division II of the bill explains that a tariff may include 16 provisions relating to recovery of costs, rate of return, 17 application of the program to other specified patterns, program 18 benefits, and refunds, credits, or waivers when the program 19 replaces an existing service, or recovery of costs associated 20 with existing facilities. A participating program customer 21 shall pay the costs of the services received from the public 22 utility unless the costs are refunded, credited, or waived 23 under the program. Division II of the bill provides that 24 if the program or eligible customer group cease to exist and 25 the public utility seeks recovery of the program-specific 26 facilities through a general rate case proceeding, the public 27 utility shall demonstrate the reasonableness and prudence 28 without any presumption regarding approval of such request. A 29 public utility shall be allowed to recover program-specific 30 facilities through general rate case proceedings. If the 31 utility can demonstrate to the commission that the proposed 32 tariff generates excess revenue for the utility as compared to 33 total revenue without the tariff, the excess revenue may be 34 retained by the utility. 35 -40- LSB 1121XL (9) 91 sb/js 40/ 53
S.F. _____ H.F. _____ Division II of the bill provides for tariff application 1 and approval. A public utilitys authority is not mandatory 2 regarding tariffs. Division II of the bill provides that an 3 application for a tariff or amendment to a tariff shall be 4 filed with the commission. The commission shall approve, deny, 5 or docket for further review an application within 30 days. 6 If the commission dockets the application for further review, 7 the commission shall render a decision within 90 days from the 8 date of application filing, unless an objection is filed. The 9 commission shall not reconsider existing programs previously 10 approved under the tariff during a review of an application 11 for an amendment to a tariff unless the review of a program is 12 proposed as part of the amendment. 13 Division II of the bill prohibits the commission from 14 certain actions. Division II of the bill provides that 15 the commission shall not limit the number of applications a 16 public utility may file, deny, or condition the approval of a 17 tariff because a public utility is subject to an alternative 18 regulatory mechanism, or require a public utility subject to an 19 alternative regulatory mechanism to record revenues and costs 20 in an inconsistent manner with specified federal standards, 21 provided that the proposed tariff would not result in 22 detrimental treatment of other customers or require adjustment 23 to the calculation of the alternative regulatory mechanism to 24 reflect the impact of an approved tariff. Division II of the 25 bill prohibits the commission from conditioning approval of a 26 tariff on the requirement that the public utility change the 27 proposal to unagreed-upon terms, but this prohibition does not 28 prevent the commission from identifying changes to the proposal 29 that might result in approval. 30 Division II of the bill provides that tariffs and programs 31 approved pursuant to division II of the bill shall be 32 rebuttably presumed to be just and reasonable in general rate 33 case proceedings. Division II of the bill prohibits the 34 commission from conditioning approval or denial of a tariff 35 -41- LSB 1121XL (9) 91 sb/js 41/ 53
S.F. _____ H.F. _____ on the final adoption of rules and requires the commission to 1 adopt rules related to division II of the bill. 2 Division II of the bill applies to a public utility filing an 3 application with the commission for review of a tariff on or 4 after the effective date of division II of the bill. 5 Division III of the bill relates to electric transmission 6 lines and electric transmission owners. Division III of the 7 bill expounds the legislative purpose of Code section 478.16, 8 identifying Iowa consumers urgent need for development and 9 investment in high-voltage transmission. Division III of the 10 bill provides that an incumbent electric transmission owner may 11 be formed, located, or headquartered in any state as long as 12 the electric transmission line is located in Iowa. 13 Division III of the bill defines an incumbent electric 14 transmission owner as an individual or entity who, as of July 15 1, 2024, owns and maintains an electric transmission line 16 in this state that is required for rate-regulated electric 17 utilities, municipal electric utilities, and rural electric 18 cooperatives in the state to provide electric service to the 19 public for compensation. 20 Under division III of the bill, an incumbent electric 21 transmission facility owner has the right to construct, own, 22 and maintain an electric transmission line that directly 23 connects to the electric transmission facility. If a proposed 24 transmission line would directly connect to facilities owned 25 by two or more facility owners, each owner has the right to 26 construct, own, and maintain the electric transmission line 27 individually and equally. 28 Division III of the bill requires an incumbent electric 29 transmission owner exercising its right to construct, own, 30 and maintain an electric transmission line to offer public 31 power utilities an opportunity to jointly own a portion of the 32 electric transmission line. The offered amount must be at 33 least the amount of the public power utilitys electric load 34 divided by the total electric load in the applicable incumbent 35 -42- LSB 1121XL (9) 91 sb/js 42/ 53
S.F. _____ H.F. _____ electric transmission owners pricing zone. Division III of 1 the bill does not prohibit the entities from agreeing to joint 2 ownership in a different amount. Additionally, division III of 3 the bill allows the public power utility to transfer or assign 4 its joint ownership rights to another public power utility 5 or group of public power utilities with the consent of the 6 incumbent electric transmission owner. 7 Division III of the bill allows an incumbent electric 8 transmission owner exercising its right to construct, own, 9 and maintain an electric transmission line to contract with 10 another electric transmission owner or electric public utility 11 to jointly own a portion of the electric transmission line. 12 Division III of the bill requires the incumbent electric 13 transmission owner or owners with approved electric 14 transmission lines not subject to right of first refusal 15 in a federally registered planning authority transmission 16 plan to give notice to the commission whether the owner or 17 owners intend to construct, own, and maintain the electric 18 transmission line. The notice shall be given within the later 19 of 90 days of approval for construction or 90 days after 20 enactment of division III of the bill. The commission may 21 determine whether another person may construct the electric 22 transmission line if the incumbent electric transmission owner 23 or owners give notice declining to construct or do not give 24 timely notice. 25 Division III of the bill requires incumbent electric 26 transmission owners to provide documentation to the commission 27 that shows utilization of competitively bid construction 28 contracts that meet all necessary technical, commercial, and 29 other specifications required for compliant construction. 30 Division III of the bill allows the consumer advocate free 31 access to all documents, reports, and information submitted to 32 the commission regarding cost accountability measures for the 33 construction of electric transmission lines. These documents, 34 reports, and information may be used by the consumer advocate 35 -43- LSB 1121XL (9) 91 sb/js 43/ 53
S.F. _____ H.F. _____ for any purpose within the scope of the consumer advocates 1 duties. These provisions do not create a private cause of 2 action or complaint. 3 Division III of the bill directs the commission to adopt 4 rules to implement the land restoration requirements after 5 initial construction of an electric transmission line as set 6 forth in division III of the bill. 7 Division III of the bill requires incumbent electric 8 transmission owners to repair drain tiles damaged during 9 construction as soon as practicable and to complete permanent 10 repairs as soon as practicable after initial construction. The 11 permanent repairs must be of the same quality, size, and flow 12 capacity of the original drain tile. 13 Division III of the bill requires incumbent electric 14 transmission owners to remove all nonnative rocks larger 15 than three inches in diameter from the easement area. The 16 disposal of rock that cannot be used as backfill must be done 17 at a location and in a manner agreed to between the incumbent 18 electric transmission owner and the landowner. 19 Division III of the bill requires the incumbent electric 20 transmission owner to till agricultural land affected by 21 construction, including right-of-way access points or roads, 22 after electric transmission line construction activities are 23 completed on the affected property. The land must be tilled 24 at least 18 inches deep in land used for crop production and 12 25 inches deep in all other land, unless otherwise agreed to by 26 the landowner. 27 Division III of the bill requires the incumbent electric 28 transmission owner to restore soil conservation practices 29 and structures damaged during construction to their previous 30 state, compact the soil used to repair embankments intended to 31 retain water, and reestablish any vegetation disturbed during 32 construction, including cover crops. 33 Division III of the bill requires the incumbent electric 34 transmission owner to reseed the agricultural land, excluding 35 -44- LSB 1121XL (9) 91 sb/js 44/ 53
S.F. _____ H.F. _____ row crops and small grain production, following compaction 1 of the land. Seeding for cover crops may be delayed if 2 construction is completed too late in the year and is not 3 required if the land will be tilled the following year. When 4 the season is not suitable for the seeding of cover crops, the 5 landowner may request ground cover to prevent soil erosion. 6 Division III of the bill requires the incumbent electric 7 transmission owner to remove all field entrances and temporary 8 roads used during construction and to restore the areas to 9 their previous state following the completion of the initial 10 construction. 11 Division III of the bill requires the incumbent electric 12 transmission owner to use good practices when constructing in 13 wet conditions and to grade and till any rutted land in order 14 to restore the land to its original condition to the extent 15 practicable. Additionally, division III of the bill allows 16 the landowner to repair damage caused by construction in wet 17 conditions. The incumbent electric transmission owner shall 18 then reimburse the landowner for reasonable costs of repair. 19 Division III of the bill requires an electric transmission 20 owner to utilize mudflats, mats, or other measures to minimize 21 soil disturbance when using heavy equipment in wetlands. 22 Division III of the bill requires the incumbent electric 23 transmission owner to provide contact information to all 24 persons affected by the construction of each transmission line. 25 Division III of the bill allows the commission to appoint an 26 inspector to determine compliance with restoration standards 27 in the event the incumbent electric transmission owner and the 28 landowner dispute over potential violations. The cost of the 29 inspection shall be paid by the incumbent electric transmission 30 owner. If the inspector determines there have been violations 31 of the restoration standards, the commission will provide oral 32 and written notice to the incumbent electric transmission 33 owner. The commission will order corrective actions be taken 34 to comply with the standards. The costs of the corrective 35 -45- LSB 1121XL (9) 91 sb/js 45/ 53
S.F. _____ H.F. _____ actions will be borne by the electric transmission owner. 1 Division III of the bill allows the commission to issue an 2 order requiring corrective action and impose civil penalties if 3 the incumbent electric transmission owner or its contractor do 4 not comply with the required standards. 5 Division III of the bill requires the commission to instruct 6 the inspectors on the statutes, rules, and responsibilities 7 regarding restoration standards. 8 Division III of the bill requires petitioners for a 9 franchise for electric transmission construction to file a land 10 restoration plan outlining how the construction will conform 11 to the required standards. The restoration plan will also be 12 provided to all property owners affected by the construction. 13 Division III of the bill allows alternative provisions in 14 independent agreements with landowners regarding protecting or 15 restoring property as long as these provisions are in writing 16 and are provided to the commission. 17 Division III of the bill allows electric transmission 18 owners to propose alternate methods of land restoration to the 19 commission. The commission, by waiver, may allow variations 20 to the land restoration requirements if the proposed alternate 21 methods would restore the land to a condition as good or better 22 than those required by division III of the bill. 23 Division III of the bill allows the commission to waive the 24 preparation of a separate land restoration plan, in whole or in 25 part, if the incumbent electric transmission owner satisfies 26 the requirements through similar agreement with other agencies 27 in the state. The relevant agreements must be filed with the 28 commission. 29 Division III of the bill does not limit, expand, or otherwise 30 modify the rights of access and obligations for damages set 31 forth in Code section 478.17. 32 Division III of the bill takes effect upon enactment. 33 Division III of the bill applies retroactively to an 34 electric transmission line included in a federally registered 35 -46- LSB 1121XL (9) 91 sb/js 46/ 53
S.F. _____ H.F. _____ planning authority long-term transmission plan approved on 1 or after July 1, 2020, with the exception of the provisions 2 requiring incumbent electric transmission owners to offer 3 public power utilities the option to jointly own qualifying 4 electric transmission lines. For this exception, division III 5 of the bill applies retroactively to July 1, 2024. 6 Division IV of the bill relates to the energy infrastructure 7 revolving loan program, which is renamed as the energy and 8 water infrastructure revolving loan program. 9 Under current law, the energy infrastructure revolving loan 10 fund (fund) and program are administered by the Iowa energy 11 center (center). Division IV of the bill instead places 12 the administrative duty with the Iowa economic development 13 authority (IEDA) and renames the fund the energy and water 14 infrastructure revolving loan fund. 15 Division IV of the bill adds financial assistance for the 16 development and construction of water infrastructure that 17 supports economic development to the funds approved uses, 18 including drinking water treatment systems and wastewater 19 treatment systems. 20 Division IV of the bill expands the entities eligible for 21 assistance under the fund to include a county or city. 22 Under current law, the approval of the centers governing 23 board is required before IEDA can determine the amount and 24 the terms of all financial assistance awarded to an eligible 25 borrower and all agreements and administrative authority are 26 vested in the centers governing board. Division IV of the 27 bill removes the approval requirement by the center and its 28 authority regarding agreements. 29 Division IV of the bill adds that to be eligible for 30 a financial assistance award under the energy and water 31 infrastructure revolving loan program, an eligible borrower 32 must demonstrate that the proposed project will attract and 33 encourage the location of new industrial enterprise or the 34 expansion of existing industrial enterprise. Division IV 35 -47- LSB 1121XL (9) 91 sb/js 47/ 53
S.F. _____ H.F. _____ of the bill states that IEDA shall determine the amount and 1 the terms of all financial assistance awarded to an eligible 2 borrower under the program and that all agreements and 3 administrative authority shall be vested in IEDA. Division 4 IV of the bill provides that IEDA may adopt rules for the 5 implementation of this program. 6 Division IV of the bill grants IEDA the ability to authorize 7 the transfer of up to $633,000 annually to Iowa state 8 university of science and technology to be used for providing 9 financial assistance to the state load forecasting center. 10 Division V of the bill relates to anaerobic digester 11 systems. Division V of the bill states its purpose is to 12 provide requirements relating to the construction, including 13 the expansion, and operation of anaerobic digester systems and 14 the control of digestate. Division V of the bill directs the 15 environmental protection commission to make rules for this 16 stated purpose. Division V of the bill states that if the 17 provisions of new Code chapter 459C conflict with Code chapter 18 459, 459A, or 459B, the provisions of Code chapter 459C shall 19 prevail. 20 Division V of the bill directs the department of natural 21 resources (DNR) to approve applications for permits for 22 construction, including expansion, of anaerobic digester 23 systems based on procedures required in division V of the 24 bill and rules created by DNR pursuant to division V of the 25 bill. Division V of the bill prohibits the construction of 26 an anaerobic digester system, regardless of size, until the 27 construction permit has been approved. The applicant must 28 also submit a $250 permit application fee, a written plan for 29 disposal of the digestate, and a written operation plan for an 30 anaerobic digester system. 31 Division V of the bill requires an anaerobic digester 32 system to accept only manure unless DNR otherwise approves the 33 inclusion of organic by-product, food product, or food for 34 human consumption. Nonmanure materials shall not compose more 35 -48- LSB 1121XL (9) 91 sb/js 48/ 53
S.F. _____ H.F. _____ than 10 percent of the total material added to an anaerobic 1 digester system. 2 Division V of the bill requires a daily record of materials 3 added to an anaerobic digester system to be kept and maintained 4 at the facility and grants DNR the authority for additional 5 testing or monitoring of the materials added to an anaerobic 6 digester system and the digestate. 7 Division V of the bill prohibits medical wastes, including 8 expired or unused antibiotics, petroleum products not designed 9 for use in manure storage facilities, pesticides, paints, 10 solvents, hazardous materials, municipal or sanitary waste 11 or sludge, industrial wastewater, contaminated feedstock, 12 slaughterhouse wastes, and residues from processing of food 13 materials that have not been deemed acceptable for human 14 consumption from being processed in an anaerobic digester 15 system. 16 Division V of the bill directs DNR to adopt rules to 17 establish construction design standards for formed manure 18 storage structures that are part of an anaerobic digester 19 system. Division V of the bill requires construction design 20 standards to be based upon uniform standards and provides 21 construction design standards for concrete. 22 Division V of the bill prohibits the construction of 23 unformed manure storage structures on karst terrain, but allows 24 the construction of a formed manure storage structure on 25 karst terrain or an area that drains into a known sinkhole if 26 upgraded construction design standards necessary to ensure that 27 the structure does not pollute groundwater sources are used. 28 Division V of the bill provides separation distance 29 requirements between an anaerobic digester system manure 30 storage structure and a surface intake of a drainage well, 31 wellhead, cistern of an agricultural well, known sinkhole, 32 water source, or wetland. Division V of the bill provides 33 exceptions for a location or object and a farm pond or 34 privately owned lake. 35 -49- LSB 1121XL (9) 91 sb/js 49/ 53
S.F. _____ H.F. _____ Division V of the bill prohibits construction, expansion, 1 or diversion of a water source or the designation of a 2 wetland if the action would cause an anaerobic digester system 3 manure storage structure to be in violation of the distance 4 requirements. 5 Division V of the bill prohibits an anaerobic digester 6 system manure storage structure from being constructed on land 7 that is part of a 100 year floodplain as determined by DNR. 8 Division V of the bill states there are no distance 9 requirements between a location or object and a farm pond or 10 privately owned lake. Additionally, distance requirements 11 do not apply to an anaerobic digester system manure storage 12 structure constructed with a secondary containment barrier 13 approved by DNR. 14 Division V of the bill provides separation distances between 15 an anaerobic digester system manure storage structure and a 16 residence, bona fide religious institution, public use area, 17 commercial enterprise, educational institution, or public 18 thoroughfare. Division V of the bill allows the titleholder 19 of the land benefiting from the distance requirements to waive 20 the distance requirements. Division V of the bill allows the 21 state or political subdivision to waive distance requirements 22 of public thoroughfares. The waivers must be filed with the 23 county recorder before becoming effective. 24 Division V of the bill allows an anaerobic digester 25 system manure storage structure to be within the distance 26 requirement from a residence, educational institution, 27 commercial enterprise, bona fide religious institution, city, 28 or public use area if the anaerobic digester system manure 29 storage structure was operating in conformance with distance 30 requirements, but was brought within the distance requirement 31 due to the expansion or construction of a residence, 32 educational institution, commercial enterprise, bona fide 33 religious institution, city, or public use area. A change in 34 ownership or expansion of an anaerobic digester system shall 35 -50- LSB 1121XL (9) 91 sb/js 50/ 53
S.F. _____ H.F. _____ not change the established date of operation. 1 Division V of the bill requires an anaerobic digester system 2 to retain all digestate produced by operation between periods 3 of digestate disposal or delivery to animal feeding operations 4 and to dispose the digestate in a manner that will not cause 5 surface water or groundwater pollution. 6 Division V of the bill requires the owner of an anaerobic 7 digester system that discontinues the use of the operation to 8 remove all digestate from related anaerobic digester system 9 structures used to store digestate within six months following 10 the date that the anaerobic digester system is discontinued. 11 Division V of the bill requires materials returned to an 12 animal feeding operation for land application be accounted for 13 in the animal feeding operations manure management plan or 14 nutrient management plan and that the owner of the anaerobic 15 digester system must satisfy all applicable laws for proper 16 application of any portion of the digestate not returned to an 17 animal feeding operation. 18 Division V of the bill allows an anaerobic digester system to 19 stockpile materials prior to digestation or dry digestate so 20 long as the facility stockpiles the materials and dry digestate 21 in compliance with restrictions applicable to stockpiling as 22 provided in division V of the bill. Division V of the bill 23 prohibits anaerobic digester system stockpiles from commingling 24 with animal feeding operation stockpiles. 25 Division V of the bill provides separation distance 26 requirements between a stockpile and a designated area that 27 includes a known sinkhole, a cistern, an abandoned well, an 28 unplugged agricultural drainage well, an agricultural drainage 29 well surface inlet, a drinking water well, a designated 30 wetland, or a water source. Special separation distance 31 requirements are provided for a high-quality water resource, an 32 agricultural drainage well, or a known sinkhole. Division V 33 of the bill provides special separation distance requirements 34 between a stockpile and a terrace tile inlet or surface tile 35 -51- LSB 1121XL (9) 91 sb/js 51/ 53
S.F. _____ H.F. _____ inlet. An exception allows a stockpile to be located closer 1 than otherwise required from these water sources so long as it 2 is maintained in a manner that will not allow precipitation 3 induced runoff to drain from the material or dry digestate. 4 Division V of the bill also provides separation distance 5 requirements between a stockpile and a residence, bona fide 6 religious institution, public use area, commercial enterprise, 7 or educational institution. 8 Division V of the bill provides that a stockpile cannot be 9 located in a grassed waterway. The stockpile also cannot be 10 located on a slope of a certain grade, unless efforts are taken 11 to contain the stockpile and prevent runoff. 12 If the materials or dry digestate are not stockpiled on 13 karst terrain, division V of the bill does not provide any 14 requirements so long as the materials or dry digestate are 15 stockpiled for 15 days or less. Otherwise, division V of the 16 bill requires a person to comply with stockpiling requirements 17 or file a monthly inspection report with DNR. The special 18 stockpiling requirements include either the use of a structure 19 or the use of an impermeable cover. However, if the stockpile 20 is covered on a long-term basis, it must be sited on compacted 21 or other prepared ground. 22 Division V of the bill states that if a proposed stockpile 23 is located on potential karst terrain, a qualified person must 24 test the ground in conformance with requirements described in 25 division V of the bill and submit a soil report to confirm 26 whether the proposed stockpile location is on karst terrain. 27 If the material or dry digestate is stockpiled on karst 28 terrain, there must be a separation distance between the bottom 29 of the stockpile and the soluble rock, regardless of how long 30 the stockpile is located at that location. For material or dry 31 digestate that is stockpiled for more than 15 days, special 32 compliance requirements apply, including either the use of a 33 structure or an impermeable cover. If the stockpile is located 34 at that location on a long-term basis, it must be sited on 35 -52- LSB 1121XL (9) 91 sb/js 52/ 53
S.F. _____ H.F. _____ concrete. 1 Division V of the bill requires a person stockpiling 2 material or dry digestate to comply with all applicable 3 national pollutant discharge elimination system permit 4 requirements pursuant to the federal Water Pollution Control 5 Act. 6 Division V of the bill requires a person stockpiling 7 materials or dry digestate to remove the dry digestate and 8 apply it in accordance with the provisions of division V of the 9 bill within six months after the materials or dry digestate are 10 first stockpiled. 11 Division V of the bill directs DNR and the attorney general 12 to enforce Code chapter 459C in the same manner as provided in 13 Code chapter 459, subchapter VI. A person who violates the 14 provisions of division V of the bill for which the alleged harm 15 is related to air quality shall be subject to the same penalty 16 as provided in Code section 459.602. A person who violates 17 the provisions of division V of the bill for which the alleged 18 harm is related to water quality shall be subject to the same 19 penalties as provided in Code section 459.603. A habitual 20 violator of the provisions of division V of the bill shall be 21 subject to the same penalties and restrictions as provided in 22 Code sections 459.604 and 459.605. Any collected civil penalty 23 and interest on a civil penalty shall be credited to the Iowa 24 nutrient research fund created in Code section 466B.46. 25 -53- LSB 1121XL (9) 91 sb/js 53/ 53