Senate File 239 - Introduced SENATE FILE 239 BY SALMON , CAMPBELL , ALONS , GUTH , WESTRICH , GREEN , and TAYLOR A BILL FOR An Act relating to insurance requirements for the granting of a 1 hazardous liquid pipeline permit. 2 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 3 TLSB 2334XS (2) 91 sb/js
S.F. 239 Section 1. NEW SECTION . 479B.13A Insurance requirements 1 for permittee. 2 1. In addition to the requirements of section 479B.13, 3 before a permit is granted under this chapter, the applicant 4 shall provide to the commission evidence of an appropriate 5 surety or insurance policy to ensure the payment of all damages 6 resulting from the construction and operation of the hazardous 7 liquid pipeline. The surety or insurance policy must be 8 sufficient to indemnify fully all of the following: 9 a. Any loss arising from or related to any negligent or 10 intentional discharge of content from the pipeline. 11 b. Any injury, including diminution of value of real 12 property, to affected properties due to the construction of the 13 pipeline or the accidental or intentional discharge of content. 14 c. The inability for a person to obtain insurance, or the 15 increased costs for a person to obtain or renew insurance, due 16 to the presence or construction of the pipeline. 17 2. If any person is unable to obtain insurance, or 18 experiences increased costs to obtain or renew insurance, as 19 a result of the presence or construction of the pipeline, the 20 pipeline owner shall either purchase insurance on behalf of 21 the person or reimburse the person for the persons increased 22 premium costs. 23 EXPLANATION 24 The inclusion of this explanation does not constitute agreement with 25 the explanations substance by the members of the general assembly. 26 This bill relates to insurance requirements for the granting 27 of a hazardous liquid pipeline permit. 28 The bill requires an applicant for a hazardous liquid 29 pipeline permit to submit evidence to the Iowa utilities 30 commission of a surety or insurance policy that ensures 31 payment of all damages that may result from the construction 32 or operation of the hazardous liquid pipeline before a permit 33 may be granted by the commission. The surety or insurance 34 policy must be sufficient to cover losses and injury resulting 35 -1- LSB 2334XS (2) 91 sb/js 1/ 2
S.F. 239 from construction of the hazardous liquid pipeline and from 1 any discharge of content from the pipeline. The surety or 2 insurance policy must also be sufficient to cover any persons 3 increased insurance costs, or the persons inability to obtain 4 insurance, due to the construction or presence of the pipeline. 5 The bill requires the pipeline company to either purchase 6 insurance on behalf of or reimburse any person who experiences 7 increased insurance premiums or the inability to obtain 8 insurance due to the construction or presence of the pipeline. 9 -2- LSB 2334XS (2) 91 sb/js 2/ 2