Senate Study Bill 1166 - Introduced SENATE FILE _____ BY (PROPOSED COMMITTEE ON JUDICIARY BILL BY CHAIRPERSON SCHULTZ) A BILL FOR An Act relating to applications for permits to construct 1 electric transmission lines, pipelines and underground 2 storage facilities, and hazardous liquid pipelines, 3 making penalties applicable, providing fees, and including 4 effective date and applicability provisions. 5 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 6 TLSB 2733XC (1) 91 sc/js
S.F. _____ Section 1. Section 6A.22, subsection 2, paragraph b, Code 1 2025, is amended to read as follows: 2 b. Except as specifically included in the definition in 3 paragraph a , public use or public purpose or public 4 improvement does not mean the construction of pipelines, roads, 5 electric transmission lines, or internet cables, except within 6 a city or village, or economic development activities resulting 7 in increased tax revenues, increased employment opportunities, 8 privately owned or privately funded housing and residential 9 development, privately owned or privately funded commercial or 10 industrial development, or the lease of publicly owned property 11 to a private party. 12 Sec. 2. Section 6B.2B, Code 2025, is amended to read as 13 follows: 14 6B.2B Acquisition negotiation. 15 1. The acquiring agency shall make a good faith effort to 16 negotiate with the owner to purchase the private property or 17 property interest before filing an application for condemnation 18 or otherwise proceeding with the condemnation process. A 19 landowner shall have the right to bring a cause of action 20 against an acquiring agency who fails to negotiate in good 21 faith. An acquiring agency shall not make an offer to purchase 22 the property or property interest that is less than the 23 fair market value the acquiring agency has established for 24 the property or property interest pursuant to the appraisal 25 required in section 6B.45 or less than the value determined 26 under the acquiring agencys waiver procedure established 27 pursuant to section 6B.54, subsection 2 , for acquisition of 28 property with a low fair market value. A purchase offer made 29 by an acquiring agency shall include provisions for payment 30 to the owner of expenses, including relocation expenses, 31 expenses listed in section 6B.54, subsection 10 , and other 32 expenses required by law to be paid by an acquiring agency to a 33 condemnee. However, in the alternative, the acquiring agency 34 may make, and the owner may accept, a purchase offer from the 35 -1- LSB 2733XC (1) 91 sc/js 1/ 23
S.F. _____ acquiring agency that is an amount equal to one hundred thirty 1 percent of the appraisal amount plus payment to the owner of 2 expenses listed in section 6B.54, subsection 10 , once those 3 expenses have been determined. If the owner accepts such a 4 purchase offer, the owner is barred from claiming payment 5 from the acquiring agency for any other expenses allowed by 6 law. An acquiring agency need not make an offer in excess of 7 the amounts described in this section in order to satisfy the 8 requirement to negotiate in good faith. The option to make 9 an alternative purchase offer does not apply when property is 10 being acquired for street and highway projects undertaken by 11 the state, a county, or a city. 12 2. An acquiring agency shall disclose all of a landowners 13 legal rights in each purchase offer, including but not limited 14 to all of the following: 15 a. The statement of individual rights created pursuant to 16 section 6B.2A. 17 b. The damages and costs for which the acquiring agency is 18 liable. 19 c. The acquiring agencys obligations relating to land 20 restoration. 21 Sec. 3. Section 476A.7, subsection 1, Code 2025, is amended 22 to read as follows: 23 1. Issuance of a certificate by the commission authorizes 24 all of the following : 25 a. Authorizes The construction of the facility on the 26 site designated in the certificate according to the terms and 27 conditions stated in the certificate and licenses and permits 28 issued by regulatory agencies during the proceeding ; and, . 29 b. Gives the applicant The use of the power of eminent 30 domain by the applicant to the extent and under such conditions 31 as the commission may approve, prescribe , and find necessary 32 for the public convenience, use , and necessity, subject to 33 subsection 4, proceeding in the manner of works of internal 34 improvement under chapter 6B . The burden of proving the 35 -2- LSB 2733XC (1) 91 sc/js 2/ 23
S.F. _____ necessity for the exercise of the power of eminent domain shall 1 be on the person issued the certificate. 2 Sec. 4. Section 476A.7, Code 2025, is amended by adding the 3 following new subsection: 4 NEW SUBSECTION . 4. The commission shall not grant eminent 5 domain rights to a person, company, or corporation having 6 secured a certificate as provided in this chapter unless at 7 least nine-tenths of the affected parcels and three-quarters of 8 the total distance of the facility have been acquired through 9 voluntary easements. The commission shall not require more 10 than nine-tenths of easements to be voluntary. 11 Sec. 5. Section 478.2, subsection 4, Code 2025, is amended 12 to read as follows: 13 4. a. A person seeking rights under this chapter shall 14 not negotiate or purchase any easements or other interests 15 in land in any county known to be affected by the proposed 16 project prior to the informational meeting. A person seeking 17 rights under this chapter shall not engage in communication 18 with landowners prior to negotiations without obtaining a 19 landowners written consent to the communication, except for an 20 initial contact to seek such written consent. 21 b. A person seeking rights under this chapter may contact 22 landowners within five miles of the projects proposed route 23 for the purpose of seeking voluntary easements under the same 24 conditions as paragraph a . 25 Sec. 6. Section 478.3, Code 2025, is amended by adding the 26 following new subsection: 27 NEW SUBSECTION . 4. An individual, company, or corporation 28 seeking to exercise eminent domain shall submit with the 29 petition a fee set by the commission for purposes of paying the 30 cost of communication between the commission and the landowner. 31 Sec. 7. Section 478.6, subsection 2, Code 2025, is amended 32 to read as follows: 33 2. Where a petition seeks the use of the right of eminent 34 domain over specific parcels of real property, the commission 35 -3- LSB 2733XC (1) 91 sc/js 3/ 23
S.F. _____ shall prescribe the notice to be served upon the owners of 1 record and parties in possession of the property over which 2 the use of the right of eminent domain is sought. The notice 3 shall include the disclose all of a landowners legal rights 4 including but not limited to all of the following: 5 a. The statement of individual rights required pursuant to 6 section 6B.2A, subsection 1 . 7 b. The damages a person, company, or corporation with a 8 franchise is liable for under section 478.17A. 9 c. The person, company, or corporations obligations 10 relating to land restoration pursuant to section 478.35. 11 Sec. 8. Section 478.15, subsections 1 and 2, Code 2025, are 12 amended to read as follows: 13 1. Any person, company, or corporation having secured a 14 franchise as provided in this chapter , subject to subsection 15 1A, shall thereupon be vested with the right of eminent 16 domain to such extent as the utilities commission may approve, 17 prescribe, and find to be necessary for public use, not 18 exceeding one hundred feet in width for right-of-way and 19 not exceeding one hundred sixty acres in any one location, 20 in addition to right-of-way, for the location of electric 21 substations to carry out the purposes of said franchise; 22 provided, however, that where two hundred kilovolt lines 23 or higher voltage lines are to be constructed, the person, 24 company, or corporation may apply to the commission for a wider 25 right-of-way not to exceed two hundred feet, and the commission 26 may for good cause extend the width of such right-of-way for 27 such lines to the person, company, or corporation applying for 28 the same. The burden of proving the necessity for public use 29 shall be on the person, company, or corporation seeking the 30 franchise. A homestead site, cemetery, orchard, or schoolhouse 31 location shall not be condemned for the purpose of erecting 32 an electric substation. If agreement cannot be made with the 33 private owner of lands as to damages caused by the construction 34 of said transmission line, or electric substations, the same 35 -4- LSB 2733XC (1) 91 sc/js 4/ 23
S.F. _____ proceedings shall be taken as provided for taking private 1 property for works of internal improvement. 2 2. Any person, company, or corporation proposing to 3 construct a transmission line or other facility that involves 4 the taking of property under the right of eminent domain 5 and desiring to enter upon the land, which it proposes to 6 appropriate, for the purpose of examining or surveying the 7 same, shall first file with the utilities commission a written 8 statement under oath setting forth the proposed routing of 9 the line or facility including a description of the lands to 10 be crossed, the names and addresses of owners, together with 11 request that a permit be issued by the commission authorizing 12 the person, company, or corporation or its duly appointed 13 representative to enter upon the land for the purpose of 14 examining and surveying and to take and use on the land any 15 vehicle and surveying equipment necessary in making the survey. 16 The commission shall within ten days after the request issue 17 a permit, accompanied by such bond in such amount as the 18 commission shall approve pursuant to subsection 2A , to the 19 person, company, or corporation making the application, if in 20 the commissions opinion the application is made in good faith 21 and not for the purpose of harassing the owner of the land. If 22 the commission is of the opinion that the application is not 23 made in good faith or made for the purpose of harassment to 24 the owner of the land, the commission shall set the matter for 25 hearing. The matter shall be heard not more than twenty days 26 after filing the application. Notice of the time and place of 27 hearing shall be given by the commission, to the owner of the 28 land by registered mail with a return receipt requested, not 29 less than ten days preceding the date of hearing. 30 Sec. 9. Section 478.15, Code 2025, is amended by adding the 31 following new subsections: 32 NEW SUBSECTION . 1A. The commission shall not grant eminent 33 domain rights to a person, company, or corporation having 34 secured a franchise as provided in this chapter unless at least 35 -5- LSB 2733XC (1) 91 sc/js 5/ 23
S.F. _____ nine-tenths of the affected parcels and three-quarters of the 1 transmission line, wire, or cables total distance have been 2 acquired through voluntary easements. The commission shall not 3 require more than nine-tenths of easements to be voluntary. 4 NEW SUBSECTION . 2A. Before a person, company, or 5 corporation seeking a franchise is granted a franchise under 6 this chapter, the person, company, or corporation must satisfy 7 the commission that the applicant has property within this 8 state other than a transmission line, wire, or cable subject 9 to execution of a value in excess of one million dollars, or 10 the person, company, or corporation must file and maintain with 11 the commission a surety bond in the penal sum of the lesser 12 of one million dollars or one percent of the project value 13 with surety approved by the commission, conditioned that the 14 person, company, or corporation will pay any and all damages 15 legally recovered against it growing out of the construction or 16 operation of its transmission line, wire, or cable in the state 17 of Iowa. When the person, company, or corporation seeking 18 a franchise under this chapter deposits with the commission 19 security satisfactory to the commission as a guaranty for 20 the payment of the damages, or furnishes to the commission 21 satisfactory proofs of its solvency and financial ability to 22 pay the damages, the person, company, or corporation seeking 23 a franchise under this chapter is relieved of the provisions 24 requiring bond. 25 Sec. 10. NEW SECTION . 478.17A Transmission line operation 26 damages. 27 1. Any person, company, or corporation having secured a 28 franchise as provided in this chapter shall be responsible for 29 damages resulting from construction, operation, or maintenance, 30 including damages resulting from an environmental disaster, 31 to local livestock, or other damages attributable to the 32 construction, operation, or maintenance. 33 2. A claim for damage for future crop deficiency within the 34 easement strip shall not be precluded from renegotiation under 35 -6- LSB 2733XC (1) 91 sc/js 6/ 23
S.F. _____ section 6B.52 on the grounds that it was apparent at the time 1 of settlement. The landowner shall notify the person, company, 2 or corporation seeking the franchise in writing fourteen days 3 prior to harvest in each year to assess crop deficiency or by 4 providing global positioning system yield monitoring data or 5 similar assessment data demonstrating crop deficiency to the 6 company within thirty days of harvest. 7 Sec. 11. NEW SECTION . 478.34 Liability. 8 Notwithstanding any provision in this chapter to the 9 contrary, except when a landowners actions constitute gross 10 negligence and the landowner commits critical infrastructure 11 sabotage as defined in section 716.11, the landowner shall not 12 be liable for any damages to a transmission line, wire, or 13 cable. 14 Sec. 12. NEW SECTION . 478.35 Land restoration standard. 15 1. The commission, pursuant to chapter 17A, shall 16 adopt rules establishing standards for the restoration of 17 agricultural lands during and after a transmission line, 18 wire, or cable construction. In addition to the requirements 19 of section 17A.4, the commission shall distribute copies 20 of the notice of intended action and opportunity for oral 21 presentations to each county board of supervisors. Any county 22 board of supervisors may, under the provisions of chapter 23 17A, and subsequent to the rulemaking proceedings, petition 24 under those provisions for additional rulemaking to establish 25 standards for land restoration after a transmission line, wire, 26 or cable construction within that county. Upon the request 27 of the petitioning county, the commission shall schedule a 28 hearing to consider the merits of the petition. Rules adopted 29 under this section shall not apply to land located within city 30 boundaries unless the land is used for agricultural purposes. 31 Rules adopted under this section shall address, but are not 32 limited to, all of the following subject matters: 33 a. Topsoil separation and replacement. 34 b. Temporary and permanent repair to drain tile. 35 -7- LSB 2733XC (1) 91 sc/js 7/ 23
S.F. _____ c. Removal of rocks and debris from the right-of-way. 1 d. Restoration of areas of soil compaction. 2 e. Restoration of terraces, waterways, and other erosion 3 control structures. 4 f. Revegetation of untilled land. 5 g. Future installation of drain tile or soil conservation 6 structures. 7 h. Restoration of land slope and contour. 8 i. Restoration of areas used for field entrances and 9 temporary roads. 10 j. Construction in wet conditions. 11 k. Designation of a person, company, or corporation seeking 12 a franchise point of contact for landowner inquiries or claims. 13 2. The county board of supervisors shall cause an on-site 14 inspection for compliance with the standards adopted under 15 this section to be performed at any transmission line, wire, 16 or cable construction project in the county. A licensed 17 professional engineer familiar with the standards adopted 18 under this section and registered under chapter 542B shall be 19 responsible for the inspection. A county board of supervisors 20 may contract for the services of a licensed professional 21 engineer for the purposes of the inspection. The reasonable 22 costs of the inspection shall be paid by the person, company, 23 or corporation seeking the franchise. 24 3. If the inspector determines that there has been a 25 violation of the standards adopted under this section, of 26 the land restoration plan, or of an independent agreement on 27 land restoration or line location executed in accordance with 28 subsection 10, the inspector shall give oral notice, followed 29 by written notice, to the person, company, or corporation 30 seeking the franchise and the contractor operating for the 31 person, company, or corporation seeking the franchise and order 32 corrective action to be taken in compliance with the standards. 33 The costs of the corrective action shall be borne by the 34 contractor operating for the person, company, or corporation 35 -8- LSB 2733XC (1) 91 sc/js 8/ 23
S.F. _____ seeking the franchise. 1 4. An inspector shall adequately inspect underground 2 improvements altered during transmission line, wire, or cable 3 construction. An inspection shall be conducted at the time of 4 the replacement or repair of the underground improvements. An 5 inspector shall be present on the site at all times at each 6 phase and separate activity of the opening of the trench, if 7 applicable, the restoration of underground improvements, and 8 backfilling. The person, company, or corporation seeking 9 the franchise and its contractor shall keep an inspector 10 continually informed of the work schedule and any schedule 11 changes. If proper notice is given, construction shall not 12 be delayed due to an inspectors failure to be present on the 13 site. 14 5. If the person, company, or corporation seeking 15 the franchise or its contractor does not comply with the 16 requirements of this section, with the land restoration plan 17 or line location, or with an independent agreement on land 18 restoration executed in accordance with subsection 10, the 19 county board of supervisors may petition the commission for an 20 order requiring corrective action to be taken. In addition, 21 the county board of supervisors may file a complaint with the 22 commission seeking imposition of civil penalties under section 23 478.29. 24 6. The person, company, or corporation seeking the 25 franchise shall allow landowners and the inspector to view 26 the proposed center line of the transmission line, wire, or 27 cable prior to commencing trenching operations to ensure that 28 construction takes place in its proper location. 29 7. An inspector may temporarily halt the construction 30 if the construction is not in compliance with this chapter 31 and the standards adopted pursuant to this chapter, the land 32 restoration plan, or the terms of an independent agreement 33 with the person, company, or corporation seeking the franchise 34 regarding land restoration or line location executed in 35 -9- LSB 2733XC (1) 91 sc/js 9/ 23
S.F. _____ accordance with subsection 10, until the inspector consults 1 with the supervisory personnel of the person, company, or 2 corporation seeking the franchise. 3 8. The commission shall instruct inspectors appointed by 4 the board of supervisors regarding the content of the statutes 5 and rules and the inspectors responsibility to require 6 construction conforming with the standards provided by this 7 chapter. 8 9. A person, company, or corporation having secured a 9 franchise as provided in this chapter shall file with the 10 petition a written land restoration plan showing how the 11 requirements of this section, and of rules adopted pursuant to 12 this section, will be met. The person, company, or corporation 13 seeking the franchise shall provide copies of the plan to 14 all landowners of property that will be disturbed by the 15 construction. 16 10. This section does not preclude the application of 17 provisions for protecting or restoring property that are 18 different than those prescribed in this section, in rules 19 adopted under this section, or in the land restoration plan, 20 if the alternative provisions are contained in agreements 21 independently executed by the person, company, or corporation 22 seeking the franchise and the landowner, and if the alternative 23 provisions are not inconsistent with state law or with rules 24 adopted by the commission. Independent agreements on land 25 restoration or line location between the landowner and person, 26 company, or corporation seeking the franchise shall be in 27 writing and a copy shall be provided to the county inspector. 28 Sec. 13. Section 479.5, subsection 5, Code 2025, is amended 29 to read as follows: 30 5. a. A pipeline company seeking rights under this 31 chapter shall not negotiate or purchase any easements or 32 other interests in land in any county known to be affected by 33 the proposed project prior to the informational meeting. A 34 pipeline company seeking rights under this chapter shall not 35 -10- LSB 2733XC (1) 91 sc/js 10/ 23
S.F. _____ engage in communication with landowners prior to negotiations 1 without obtaining a landowners written consent to the 2 communication, except for an initial contact to seek such 3 written consent. 4 b. A person seeking rights under this chapter may contact 5 landowners within five miles of the projects proposed route 6 for the purpose of seeking voluntary easements under the same 7 conditions as paragraph a . 8 Sec. 14. Section 479.7, subsection 2, Code 2025, is amended 9 to read as follows: 10 2. Where a petition seeks the use of the right of eminent 11 domain over specific parcels of real property, the commission 12 shall prescribe the notice to be served upon the owners of 13 record and parties in possession of the property over which 14 the use of the right of eminent domain is sought. The notice 15 shall include the disclose all of a landowners legal rights 16 including but not limited to all of the following: 17 a. The statement of individual rights required pursuant to 18 section 6B.2A . 19 b. The costs a pipeline company is liable for under sections 20 479.25, 479.45, and 479.47. 21 c. The pipeline companys obligations relating to land 22 restoration pursuant to section 479.29. 23 Sec. 15. Section 479.24, subsection 1, Code 2025, is amended 24 to read as follows: 25 1. A pipeline company granted a pipeline permit under 26 this chapter shall , subject to subsection 3, be vested with 27 the right of eminent domain to the extent necessary and as 28 prescribed and approved by the commission, not exceeding 29 seventy-five feet in width for right-of-way and not exceeding 30 one acre in any one location in addition to right-of-way for 31 the location of pumps, pressure apparatus, or other stations or 32 equipment necessary to the proper operation of its pipeline. 33 The commission may grant additional eminent domain rights where 34 the pipeline company has presented sufficient evidence to 35 -11- LSB 2733XC (1) 91 sc/js 11/ 23
S.F. _____ adequately demonstrate that a greater area is required for the 1 proper construction, operation, and maintenance of the pipeline 2 or for the location of pumps, pressure apparatus, or other 3 stations or equipment necessary to the proper operation of its 4 pipeline. 5 Sec. 16. Section 479.24, Code 2025, is amended by adding the 6 following new subsections: 7 NEW SUBSECTION . 3. The commission shall not grant eminent 8 domain rights to a pipeline company seeking a permit under this 9 section unless at least nine-tenths of the affected parcels 10 and three-quarters of the pipeline projects total distance 11 have been acquired through voluntary easements. The commission 12 shall not require more than nine-tenths of easements to be 13 voluntary. 14 NEW SUBSECTION . 4. When constructing on property obtained 15 by eminent domain, a pipeline company must construct its 16 pipeline or underground storage facility at least eight feet 17 underground, unless otherwise negotiated with the landowner. 18 Sec. 17. Section 479.25, Code 2025, is amended to read as 19 follows: 20 479.25 Damages. 21 1. A pipeline company operating a pipeline or a gas 22 storage area shall have reasonable access to the pipeline or 23 gas storage area for the purpose of constructing, operating, 24 maintaining, or locating pipes, pumps, pressure apparatus or 25 other stations, wells, devices, or equipment used in or upon 26 the pipeline or gas storage area; shall pay the owner of the 27 land for the right of entry and the owner of crops for all 28 damages caused by entering, using, or occupying the land; and 29 shall pay to the owner all damages caused by the completion 30 of construction of the pipeline due to wash or erosion of the 31 soil at or along the location of the pipeline and due to the 32 settling of the soil along and above the pipeline. However, 33 this section shall not prevent the execution of an agreement 34 between the pipeline company and the owner of land or crops 35 -12- LSB 2733XC (1) 91 sc/js 12/ 23
S.F. _____ with reference to the use of the land. 1 2. A pipeline company operating a pipeline or a gas 2 storage area shall be responsible for damages resulting from 3 construction, operation, or maintenance, including damages 4 resulting from an environmental disaster, to local livestock, 5 or other damages attributable to the construction, operation, 6 or maintenance. 7 Sec. 18. Section 479.26, Code 2025, is amended to read as 8 follows: 9 479.26 Financial condition of permittee bond. 10 Before any permit is granted under this chapter the 11 applicant must satisfy the commission that the applicant has 12 property within this state other than pipelines, subject to 13 execution of a value in excess of two hundred fifty thousand 14 one million dollars, or the applicant must file and maintain 15 with the commission a surety bond in the penal sum of two 16 hundred fifty thousand the lesser of one million dollars or 17 one percent of the project value with surety approved by the 18 commission, conditioned that the applicant will pay any and 19 all damages legally recovered against it growing out of the 20 construction or operation of its pipeline and gas storage 21 facilities in the state of Iowa. When the pipeline company 22 deposits with the commission security satisfactory to the 23 commission as a guaranty for the payment of the damages, or 24 furnishes to the commission satisfactory proofs of its solvency 25 and financial ability to pay the damages, the pipeline company 26 is relieved of the provisions requiring bond. 27 Sec. 19. NEW SECTION . 479.35 Liability. 28 Notwithstanding any provision in this chapter to the 29 contrary, except when a landowners actions constitute gross 30 negligence and the landowner commits critical infrastructure 31 sabotage as defined in section 716.11, the landowner shall not 32 be liable for any damages to a pipeline or gas storage area. 33 Sec. 20. Section 479.45, subsection 2, Code 2025, is amended 34 to read as follows: 35 -13- LSB 2733XC (1) 91 sc/js 13/ 23
S.F. _____ 2. A claim for damage for future crop deficiency within 1 the easement strip shall not be precluded from renegotiation 2 under section 6B.52 on the grounds that it was apparent at the 3 time of settlement unless the settlement expressly releases the 4 pipeline company from claims for damage to the productivity of 5 the soil . The landowner shall notify the company in writing 6 fourteen days prior to harvest in each year to assess crop 7 deficiency or by providing global positioning system yield 8 monitoring data or similar assessment data demonstrating crop 9 deficiency to the company within thirty days of harvest . 10 Sec. 21. Section 479B.4, subsection 6, Code 2025, is amended 11 to read as follows: 12 6. a. A pipeline company seeking rights under this chapter 13 shall not negotiate or purchase an easement or other interest 14 in land in a county known to be affected by the proposed 15 project prior to the informational meeting. A pipeline 16 company seeking rights under this chapter shall not engage in 17 communication with landowners prior to negotiations without 18 obtaining a landowners written consent to the communication, 19 other than an initial contact for the purpose of seeking 20 written consent. 21 b. A person seeking rights under this chapter may contact 22 landowners within five miles of the projects proposed route 23 for the purpose of seeking voluntary easements under the same 24 conditions as paragraph a . 25 Sec. 22. Section 479B.6, Code 2025, is amended by adding the 26 following new subsections: 27 NEW SUBSECTION . 3. Upon the filing of the petition, a 28 pipeline company shall provide notice of such filing served by 29 certified mail to landowners. 30 NEW SUBSECTION . 4. Where a petition seeks the use of the 31 right of eminent domain over specific parcels of real property, 32 the commission shall prescribe the notice to be served upon 33 the owners of record and parties in possession of the property 34 over which the use of the right of eminent domain is sought. 35 -14- LSB 2733XC (1) 91 sc/js 14/ 23
S.F. _____ The notice shall disclose all of a landowners legal rights 1 including but not limited to all of the following: 2 a. The statement of individual rights created pursuant to 3 section 6B.2A. 4 b. The costs a pipeline company is liable for under sections 5 479B.29 and 479B.31. 6 c. The pipeline companys obligations relating to land 7 restoration pursuant to section 479B.20. 8 Sec. 23. Section 479B.13, Code 2025, is amended to read as 9 follows: 10 479B.13 Financial condition of permittee bond. 11 Before a permit is granted under this chapter the applicant 12 must satisfy the commission that the applicant has property 13 within this state other than pipelines or underground storage 14 facilities, subject to execution of a value in excess of two 15 hundred fifty thousand one million dollars, or the applicant 16 must file and maintain with the commission a surety bond in 17 the penal sum of two hundred fifty thousand the lesser of one 18 million dollars or one percent of the project value with surety 19 approved by the commission, conditioned that the applicant will 20 pay any and all damages legally recovered against it growing 21 out of the construction, maintenance, or operation of its 22 pipeline or underground storage facilities in this state. When 23 the pipeline company deposits with the commission security 24 satisfactory to the commission as a guaranty for the payment of 25 the damages, or furnishes to the commission satisfactory proofs 26 of its solvency and financial ability to pay the damages, the 27 pipeline company is relieved of the provisions requiring bond. 28 Sec. 24. Section 479B.16, subsection 1, Code 2025, is 29 amended to read as follows: 30 1. A pipeline company granted a pipeline permit shall , 31 subject to subsection 4, be vested with the right of eminent 32 domain, to the extent necessary and as prescribed and approved 33 by the commission, not exceeding seventy-five feet in width for 34 right-of-way and not exceeding one acre in any one location in 35 -15- LSB 2733XC (1) 91 sc/js 15/ 23
S.F. _____ addition to right-of-way for the location of pumps, pressure 1 apparatus, or other stations or equipment necessary to the 2 proper operation of its pipeline. The commission may grant 3 additional eminent domain rights where the pipeline company 4 has presented sufficient evidence to adequately demonstrate 5 that a greater area is required for the proper construction, 6 operation, and maintenance of the pipeline or for the location 7 of pumps, pressure apparatus, or other stations or equipment 8 necessary to the proper operation of its pipeline. 9 Sec. 25. Section 479B.16, Code 2025, is amended by adding 10 the following new subsections: 11 NEW SUBSECTION . 4. The commission shall not grant eminent 12 domain rights to a pipeline company seeking a permit under this 13 section unless at least nine-tenths of the affected parcels 14 and three-quarters of the pipeline projects total distance 15 have been acquired through voluntary easements. The commission 16 shall not require more than nine-tenths of easements to be 17 voluntary. 18 NEW SUBSECTION . 5. When constructing on property obtained 19 by eminent domain, a pipeline company must construct its 20 pipeline or underground storage facility at least eight feet 21 underground, unless otherwise negotiated with the landowner. 22 Sec. 26. Section 479B.17, Code 2025, is amended to read as 23 follows: 24 479B.17 Damages. 25 1. A pipeline company operating a pipeline or an 26 underground storage facility shall have reasonable access to 27 the pipeline or underground storage facility for the purpose 28 of constructing, operating, maintaining, or locating pipes, 29 pumps, pressure apparatus, or other stations, wells, devices, 30 or equipment used in or upon the pipeline or underground 31 storage facility. A pipeline company shall pay the owner of 32 the land for the right of entry and the owner of crops for all 33 damages caused by entering, using, or occupying the lands and 34 shall pay to the owner all damages caused by the completion 35 -16- LSB 2733XC (1) 91 sc/js 16/ 23
S.F. _____ of construction of the pipeline due to wash or erosion of the 1 soil at or along the location of the pipeline and due to the 2 settling of the soil along and above the pipeline. However, 3 this section does not prevent the execution of an agreement 4 between the pipeline company and the owner of the land or crops 5 with reference to the use of the land. 6 2. A pipeline company operating a pipeline or an underground 7 storage facility shall be responsible for damages resulting 8 from construction, operation, or maintenance, including damages 9 resulting from an environmental disaster, to local livestock, 10 or other damages attributable to the construction, operation, 11 or maintenance. 12 Sec. 27. Section 479B.29, subsection 2, Code 2025, is 13 amended to read as follows: 14 2. A claim for damage for future crop deficiency within 15 the easement strip shall not be precluded from renegotiation 16 under section 6B.52 on the grounds that it was apparent at the 17 time of settlement unless the settlement expressly releases the 18 pipeline company from claims for damage to the productivity of 19 the soil . The landowner shall notify the pipeline company in 20 writing fourteen days prior to harvest in each year to assess 21 crop deficiency or by providing global positioning system yield 22 monitoring data or similar assessment data demonstrating crop 23 deficiency to the company within thirty days of harvest . 24 Sec. 28. NEW SECTION . 479B.34 Liability. 25 Notwithstanding any provision in this chapter to the 26 contrary, except when a landowners actions constitute gross 27 negligence and the landowner commits critical infrastructure 28 sabotage as defined in section 716.11, the landowner shall not 29 be liable for any damages to a pipeline or gas storage area. 30 Sec. 29. EFFECTIVE DATE. This Act, being deemed of 31 immediate importance, takes effect upon enactment. 32 Sec. 30. APPLICABILITY. 33 1. The following apply to applications for a permit 34 submitted pursuant to chapters 478, 479, and 479B prior to, on, 35 -17- LSB 2733XC (1) 91 sc/js 17/ 23
S.F. _____ or after the effective date of this Act: 1 a. The section of this Act enacting section 478.17A. 2 b. The section of this Act enacting section 478.34. 3 c. The section of this Act amending section 479.25. 4 d. The section of this Act enacting section 479.35. 5 e. The section of this Act amending section 479B.17. 6 f. The section of this Act enacting section 479B.34. 7 2. Remaining sections of this Act apply to applications 8 for a permit submitted pursuant to chapters 476A, 478, 479, 9 and 479B regarding which the first informational meeting for a 10 petition is held on or after the effective date of this Act. 11 EXPLANATION 12 The inclusion of this explanation does not constitute agreement with 13 the explanations substance by the members of the general assembly. 14 This bill relates to applications for permits to construct 15 electric transmission lines, pipelines and underground storage 16 facilities, and hazardous liquid pipelines under the purview of 17 the Iowa utilities commission (commission). 18 The bill excludes the construction of pipelines, roads, 19 electric transmission lines, or internet cables other than 20 within a city or village from the definition of a public use, 21 public purpose, or public improvement for purposes of eminent 22 domain. 23 The bill requires an acquiring agency to notify a landowner 24 of the landowners rights in each purchase offer and creates a 25 cause of action for a landowner when an acquiring agency fails 26 to negotiate in good faith. 27 The bill modifies eminent domain rights for matters 28 under Code chapters 476A (electric power generation and 29 transmission), 478 (electric transmission lines), 479 30 (pipelines and underground gas storage), and 479B (hazardous 31 liquid pipelines and storage facilities). The bill requires 32 landowner communication consent, specified surety bond amounts, 33 liability, notice, and damage provisions for permits under the 34 respective Code sections. 35 -18- LSB 2733XC (1) 91 sc/js 18/ 23
S.F. _____ The bill prohibits the commission from granting eminent 1 domain rights to an entity seeking those rights under Code 2 chapters 476A, 478, 479, and 479B unless at least nine-tenths 3 of the affected parcels and three-quarters of the area of 4 the proposed project are first acquired through voluntary 5 easements. The commission is prohibited from requiring more 6 than 90 percent of the easements to be voluntary. 7 The bill requires a person or entity granted a franchise 8 for an electric transmission line to pay a fee established 9 by the commission to cover the costs of the commissions 10 communications with landowners. 11 The bill requires the commission to notify a landowner of 12 the landowners rights when an electric transmission line, 13 pipeline, underground storage facility, or hazardous liquid 14 pipeline seeks to exercise eminent domain. 15 The bill requires a person, company, or corporation seeking 16 a franchise under Code chapter 478 to satisfy a bond amount 17 with the commission. The franchise must satisfy the commission 18 that the franchisee has property in the state of a value over 19 $1 million (not including the value of the proposed project) 20 or file and maintain with the commission a surety bond of $1 21 million or 1 percent of the project value with surety approved 22 by the commission, conditioned that the franchisee will pay any 23 and all damages legally recovered against it growing out of the 24 construction or operation of the project in the state. When a 25 franchisee deposits security satisfactory to the commission as 26 a guaranty for the payment of the damages or furnishes to the 27 commission satisfactory proofs of its solvency and financial 28 ability to pay the damages, the franchisee shall be relieved of 29 the provisions requiring bond. 30 The bill prohibits persons seeking rights to construct 31 projects under Code chapter 478, 479, or 479B from contacting 32 landowners regarding negotiations for land acquisition without 33 first obtaining the landowners written consent allowing 34 communication, other than an initial contact to seek such 35 -19- LSB 2733XC (1) 91 sc/js 19/ 23
S.F. _____ written consent. The bill allows persons seeking rights to 1 construct such projects to contact landowners within five miles 2 of the projects proposed route for the purpose of obtaining a 3 voluntary easement. 4 The bill adds provisions to Code chapters 478, 479, and 5 479B requiring a person seeking to construct projects under 6 those chapters to be held liable for damages resulting from 7 construction, operation, or maintenance, including damages 8 resulting from an environmental disaster, to local livestock, 9 or other damages attributable to the construction, operation, 10 or maintenance. 11 The bill requires pipeline companies constructing on 12 property obtained by eminent domain under Code chapter 479 or 13 479B to build their projects at least eight feet underground, 14 unless otherwise negotiated with the landowner. 15 The bill provides that a claim for damages related to 16 future crop deficiency within an easement strip under Code 17 chapter 478 shall not be precluded from renegotiation under 18 Code section 6B.52 relating to eminent domain procedure for 19 the renegotiation of damages. The landowner shall notify the 20 franchisee in writing 14 days prior to harvest in each year 21 to assess crop deficiency or by providing global positioning 22 system yield monitoring data or similar assessment data 23 demonstrating crop deficiency to the company within 30 24 days of harvest. The bill modifies claims for future crop 25 deficiency damages pursuant to Code chapters 479 and 479B to 26 allow a landowner to notify a company in writing by providing 27 global positioning system yield monitoring data or similar 28 assessment data demonstrating crop deficiency to the company 29 within 30 days of harvest, and strikes language providing 30 that a settlement may expressly release a company from soil 31 productivity damage claims. 32 The bill creates new provisions relating to landowner 33 liability in Code chapters 478, 479, and 479B. The bill 34 provides that except when a landowners actions constitute 35 -20- LSB 2733XC (1) 91 sc/js 20/ 23
S.F. _____ gross negligence and the landowner commits critical 1 infrastructure sabotage as defined in Code section 716.11 2 (relating to critical infrastructure sabotage definitions), 3 the landowner shall not be liable for any damages to a project 4 permitted under Code chapters 478, 479, and 479B. 5 The bill includes provisions relating to land restoration 6 standards. The bill adds a land restoration section in 7 Code chapter 478 that mirrors land restoration standards in 8 Code chapters 479 and 479B. The new Code section includes 9 requirements that the commission adopt rules related to the 10 restoration of agricultural lands during and after transmission 11 line, wire, or cable construction and distribute notice of 12 intended actions to county boards of supervisors. Rules 13 shall include subject matters relating to topsoil, temporary, 14 permanent, and future drain tile issues, removal of rocks and 15 debris, soil compaction, terraces, waterways, and other erosion 16 control structures, revegetation, restoration of land slope 17 and contour, restoration of field entrance and temporary road 18 areas, construction in wet conditions, and designation of a 19 franchisee point of contact. 20 The bill provides that a county board of supervisors may 21 require an on-site compliance inspection at any time to be 22 performed by a specialized licensed professional engineer. 23 The reasonable costs of the inspection shall be paid by the 24 franchisee. Notice of a violation relating to provisions 25 regarding land restoration, the land restoration plan created 26 by the franchisee and submitted to the commission, or of an 27 independent agreement shall be given to the franchisee or a 28 contractor for the franchisee. Corrective action shall be 29 taken by the franchisee and the costs of the corrective action 30 shall be borne by the contractor of the franchisee. 31 The bill provides that a franchisee shall file a written 32 land restoration plan with their petition. The franchisee 33 shall provide copies of the plan to all landowners of property 34 that will be disturbed by the construction. The bill does not 35 -21- LSB 2733XC (1) 91 sc/js 21/ 23
S.F. _____ preclude additional means of land protection or restoration 1 in addition to the plan, rules regarding the plan, or other 2 written agreements. 3 The bill provides that an inspector shall adequately 4 inspect underground improvements altered during transmission 5 line, wire, or cable construction, and the inspection shall 6 be conducted at the time of the replacement or repair of 7 the underground improvements. Additionally, an inspector 8 shall be present on-site at all times and the franchisee and 9 its contractor shall keep an inspector continually informed 10 of the work schedule and any schedule changes. The county 11 board of supervisors may petition the commission for an order 12 requiring corrective action to be taken when the franchisee or 13 its contractor is in noncompliance. In addition, the county 14 board of supervisors may file a complaint with the commission 15 seeking imposition of civil penalties of not more than $100 16 per violation or $1,000 per day of a continuing violation, 17 whichever is greater, under Code section 478.29. 18 The bill provides that a franchisee shall allow landowners 19 and the inspector to view the proposed center line of the 20 transmission line, wire, or cable prior to commencing trenching 21 operations to ensure that construction takes place in its 22 proper location, and an inspector may temporarily halt the 23 construction for noncompliance until the inspector consults 24 with the supervisory personnel of the franchisee. The 25 commission shall instruct appointed inspectors of the content 26 of the statutes and rules and the inspectors responsibility to 27 require compliant construction. 28 The bill modifies surety bond amounts for projects 29 constructed pursuant to Code chapters 479 and 479B. The 30 bill changes the amount that an applicant for a permit shall 31 demonstrate in property value in Iowa (other than pipelines) 32 to more than $1 million rather than $250,000. The applicant 33 may instead file and maintain with the commission a surety bond 34 of $1 million or 1 percent of the project value, whichever is 35 -22- LSB 2733XC (1) 91 sc/js 22/ 23
S.F. _____ lesser, rather than a surety bond of $250,000. 1 The bill is effective upon enactment and includes 2 applicability provisions. The bill applies to an application 3 for a permit pursuant to Code chapters 476A, 478, 479, and 4 479B when the first informational meeting for a petition is 5 held on or after the effective date of the bill, except when 6 otherwise provided. For sections of the bill relating to 7 liability regarding a landowners gross negligence and critical 8 infrastructure sabotage and sections of the bill regarding 9 petitioner responsibility for damages under Code chapters 10 478, 479, and 479B, the bill shall apply retroactively to all 11 applications for a permit under those Code chapters. 12 -23- LSB 2733XC (1) 91 sc/js 23/ 23