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SF585 • 2026

A bill for an act relating to energy systems by modifying electric power generation, energy storage, and transmission facility ratemaking principles, creating tariffs for public utility innovation programs, implementing land restoration standards, including right of first refusal, modifying the energy infrastructure revolving loan program, and creating regulations for anaerobic digester systems, making appropriations, providing penalties, and including effective date and applicability provisions.(Formerly SSB 1112 .)

A bill for an act relating to energy systems by modifying electric power generation, energy storage, and transmission facility ratemaking principles, creating tariffs for public utility innovation programs, implementing land restoration standards, including right of first refusal, modifying the energy infrastructure revolving loan program, and creating regulations for anaerobic digester systems, making appropriations, providing penalties, and including effective date and applicability provisions.(Formerly SSB 1112 .)

Budget Energy
Passed Legislature

This bill passed both chambers and reached final enrollment, even if later executive action is not shown here.

Sponsor
COMMITTEE ON COMMERCE
Last action
2025-03-31
Official status
Subcommittee recommends passage.
Effective date
Not listed

Plain English Breakdown

Using official source text because the generated explanation was unavailable or could not be confirmed against the official bill text.

A bill for an act relating to energy systems by modifying electric power generation, energy storage, and transmission facility ratemaking principles, creating tariffs for public utility innovation programs, implementing land restoration standards, including right of first refusal, modifying the energy infrastructure revolving loan program, and creating regulations for anaerobic digester systems, making appropriations, providing penalties, and including effective date and applicability provisions.(Formerly SSB 1112 .)

A bill for an act relating to energy systems by modifying electric power generation, energy storage, and transmission facility ratemaking principles, creating tariffs for public utility innovation programs, implementing land restoration standards, including right of first refusal, modifying the energy infrastructure revolving loan program, and creating regulations for anaerobic digester systems, making appropriations, providing penalties, and including effective date and applicability provisions.(Formerly SSB 1112 .)

What This Bill Does

  • A bill for an act relating to energy systems by modifying electric power generation, energy storage, and transmission facility ratemaking principles, creating tariffs for public utility innovation programs, implementing land restoration standards, including right of first refusal, modifying the energy infrastructure revolving loan program, and creating regulations for anaerobic digester systems, making appropriations, providing penalties, and including effective date and applicability provisions.(Formerly SSB 1112 .)

Limits and Unknowns

  • This entry is temporarily using official source text because the generated explanation could not be confirmed against the official bill text during the last sync.

Bill History

  1. 2025-03-31 Iowa Legislature

    Subcommittee recommends passage.

  2. 2025-03-27 Iowa Legislature

    Subcommittee Meeting: 03/31/2025 1:30PM Senate Lounge.

  3. 2025-03-12 Iowa Legislature

    Subcommittee: Bousselot, Knox, and Warme. S.J. 507 .

  4. 2025-03-11 Iowa Legislature

    Referred to Appropriations. S.J. 480 .

  5. 2025-03-10 Iowa Legislature

    Committee report, approving bill. S.J. 470 .

  6. 2025-03-10 Iowa Legislature

    Introduced, placed on calendar. S.J. 462 .

Official Summary Text

A bill for an act relating to energy systems by modifying electric power generation, energy storage, and transmission facility ratemaking principles, creating tariffs for public utility innovation programs, implementing land restoration standards, including right of first refusal, modifying the energy infrastructure revolving loan program, and creating regulations for anaerobic digester systems, making appropriations, providing penalties, and including effective date and applicability provisions.(Formerly SSB 1112 .)

Current Bill Text

Read the full stored bill text
Senate

File

585

-

Introduced

SENATE

FILE

585

BY

COMMITTEE

ON

COMMERCE

(SUCCESSOR

TO

SSB

1112)

(COMPANION

TO

HF

834

BY

COMMITTEE

ON

COMMERCE)

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:

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DIVISION

I

1

ELECTRIC

POWER

GENERATION,

ENERGY

STORAGE,

AND

TRANSMISSION

2

FACILITY

RATEMAKING

PRINCIPLES

3

Section

1.

NEW

SECTION

.

476.52A

Definitions.

4

As

used

in

this

subchapter

unless

the

context

otherwise

5

requires:

6

1.

“Alternate

energy

production

facility”

means

the

same

as

7

defined

in

section

476.42.

8

2.

“Energy

storage”

means

any

system,

equipment,

facility,

9

or

technology

that

is

capable

of

absorbing

energy,

storing

the

10

energy

for

a

period

of

time,

and

dispatching

the

energy

through

11

one

of

the

following

manners:

12

a.

Using

mechanical,

electrochemical,

thermal,

13

electrolysis,

or

other

processes

to

convert

and

store

electric

14

energy

that

was

generated

at

an

earlier

time

for

use

at

a

later

15

time.

16

b.

Using

mechanical,

electrochemical,

biochemical,

or

17

thermal

processes

to

convert

and

store

energy

generated

18

from

mechanical

processes

that

would

otherwise

be

wasted

for

19

delivery

at

a

later

time.

20

c.

Storing

energy

in

an

electric,

thermal,

or

gaseous

21

state

for

direct

use

for

heating

or

cooling

at

a

later

time

22

in

a

manner

that

avoids

the

need

to

use

electricity

or

other

23

fuel

sources

at

that

later

time,

such

as

a

grid-enabled

water

24

heater.

25

3.

“Nuclear

reactor”

means

an

apparatus

designed

to

produce

26

electrical

or

heat

energy

through

sustained

nuclear

fission

in

27

a

self-supporting

chain

reaction.

28

4.

“Repowering”

means

either

the

complete

dismantling

and

29

replacement

of

generation

equipment

at

an

existing

project

30

site,

or

the

installation

of

new

parts

and

equipment

to

an

31

existing

alternate

energy

production

facility

in

order

to

32

increase

energy

production,

reduce

load,

increase

service

33

capacity,

improve

project

reliability,

or

extend

the

useful

34

life

of

the

facility.

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585

Sec.

2.

Section

476.53,

subsection

1,

Code

2025,

is

amended

1

to

read

as

follows:

2

1.

It

is

the

intent

of

the

general

assembly

to

attract

3

the

development

of

electric

power

generating

,

energy

storage,

4

and

transmission

facilities

within

the

state

in

sufficient

5

quantity

to

ensure

reliable

electric

service

to

Iowa

consumers

,

6

ensure

an

adequate

base

load,

and

provide

economic

benefits

to

7

the

state.

Ensuring

reliable

electric

service

and

providing

8

economic

benefits

may

require

public

utilities

to

consider

9

diverse

electric

power

generating

technologies

and

energy

10

storage

technologies,

including

alternate

energy

production

11

facilities,

nuclear

reactors,

and

energy

storage

facilities.

12

It

is

also

the

intent

of

the

general

assembly

to

encourage

13

rate-regulated

public

utilities

to

consider

altering

existing

14

electric

power

generating

facilities,

where

when

reasonable,

15

to

manage

carbon

emission

intensity

in

order

to

facilitate

the

16

transition

to

a

carbon-constrained

environment.

It

is

also

the

17

intent

of

the

general

assembly

to

encourage

the

development

18

of

nuclear

electric

power

generation

within

the

state

using

19

nuclear

reactors

and

to

use

nuclear

power

to

meet

local

and

20

regional

electric

needs.

21

Sec.

3.

Section

476.53,

subsection

3,

paragraphs

a,

b,

c,

22

and

d,

Code

2025,

are

amended

to

read

as

follows:

23

a.

The

commission

shall

specify

in

advance,

by

order

issued

24

after

conduct

a

contested

case

proceeding

,

the

ratemaking

25

principles

that

will

apply

when

the

costs

of

the

electric

power

26

generating

facility

or

alternate

energy

production

facility

are

27

included

in

regulated

electric

rates

whenever

a

rate-regulated

28

public

utility

does

seeks

ratemaking

principles

for

any

of

the

29

following:

30

(1)

(a)

Files

an

application

pursuant

to

section

476A.3

31

to

construct

The

costs

of

constructing

in

Iowa

a

baseload

an

32

electric

power

generating

facility

with

a

nameplate

generating

33

capacity

equal

to

or

greater

than

three

hundred

forty

megawatts

34

or

a

combined-cycle

electric

power

generating

facility

,

or

an

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alternate

energy

production

facility

as

defined

in

section

1

476.42

,

or

an

energy

storage

facility,

or

the

construction

2

costs

to

significantly

alter

an

existing

electric

power

3

generating

facility

,

alternate

energy

production

facility,

or

4

energy

storage

facility

.

For

purposes

of

this

subparagraph,

5

a

significant

alteration

of

an

existing

generating

facility

,

6

alternate

energy

production

facility,

or

energy

storage

7

facility

must,

in

order

to

qualify

for

establishment

of

8

ratemaking

principles,

fall

into

one

of

the

following

9

categories:

10

(i)

Conversion

of

a

coal

fueled

an

electric

power

generating

11

facility

into

a

gas

fueled

to

an

alternate

fuel

type

for

the

12

electric

power

generating

facility.

13

(ii)

Addition

of

carbon

capture

and

storage

facilities

at

a

14

coal

fueled

to

an

existing

electric

power

generating

facility.

15

(iii)

Addition

of

gas

fueled

capability

to

a

coal

fueled

16

facility,

in

order

to

convert

the

facility

to

one

that

will

17

rely

primarily

on

gas

for

future

generation

facilities

to

18

capture

exhaust

heat

and

thereby

generate

additional

electric

19

power

at

an

existing

electric

power

generating

facility

.

20

(iv)

Addition

of

a

biomass

fueled

capability

to

a

coal

21

fueled

facility.

22

(v)

(iv)

Repowering

of

an

alternate

energy

production

23

facility.

For

purposes

of

this

subparagraph

subdivision,

24

“repowering”

shall

mean

either

the

complete

dismantling

and

25

replacement

of

generation

equipment

at

an

existing

project

26

site,

or

the

installation

of

new

parts

and

equipment

to

an

27

existing

alternate

energy

production

facility

in

order

to

28

increase

energy

production,

reduce

load,

increase

service

29

capacity,

improve

project

reliability,

or

extend

the

useful

30

life

of

the

facility.

31

(v)

Addition

of

energy

storage

at

an

existing

electric

power

32

generating

facility,

alternate

energy

production

facility,

or

33

energy

storage

facility.

34

(b)

With

respect

to

a

significant

alteration

of

an

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existing

generating

facility,

an

original

facility

shall

1

not

be

required

to

be

either

a

baseload

or

a

combined-cycle

2

facility.

Only

only

the

incremental

investment

undertaken

3

by

a

utility

under

subparagraph

division

(a),

subparagraph

4

subdivision

(i),

(ii),

or

(iii),

or

(iv)

shall

be

eligible

5

to

apply

the

ratemaking

principles

established

by

the

order

6

issued

pursuant

to

paragraph

“e”

.

Facilities

for

which

advanced

7

advance

ratemaking

principles

are

obtained

pursuant

to

this

8

section

shall

not

be

subject

to

a

subsequent

commission

review

9

pursuant

to

section

476.6,

subsection

19

,

to

the

extent

that

10

the

investment

has

been

considered

by

the

commission

under

11

this

section

.

To

the

extent

an

eligible

utility

has

been

12

authorized

to

make

capital

investments

subject

to

section

13

476.6,

subsection

19

,

such

investments

shall

not

be

eligible

14

for

ratemaking

principles

pursuant

to

this

section

.

15

(2)

Leases

or

owns

When

leased

or

owned

in

Iowa,

in

whole

or

16

in

part,

a

new

baseload

electric

power

generating

facility

with

17

a

nameplate

generating

capacity

equal

to

or

greater

than

three

18

hundred

forty

megawatts

or

a

combined-cycle

electric

power

19

generating

,

a

new

energy

storage

facility,

or

a

new

alternate

20

energy

production

facility

as

defined

in

section

476.42

.

21

b.

If

the

commission

finds

that

the

utility’s

application

22

meets

the

requirements

of

paragraph

“c”

,

the

commission

shall

23

specify

by

order

issued

after

the

contested

case

proceeding

24

the

ratemaking

principles

that

will

apply

when

the

costs

of

25

the

electric

power

generating

facility

or

alternate

energy

26

production

facility

are

included

in

regulated

electric

rates.

27

In

determining

the

applicable

ratemaking

principles,

the

28

commission

shall

not

be

limited

to

traditional

ratemaking

29

principles

or

traditional

cost

recovery

mechanisms.

Among

the

30

principles

and

mechanisms

the

commission

may

consider,

the

31

commission

has

the

authority

to

approve

ratemaking

principles

32

proposed

by

a

rate-regulated

public

utility

that

provide

for

33

reasonable

restrictions

upon

the

ability

of

the

public

utility

34

to

seek

a

general

increase

in

electric

rates

under

section

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476.6

for

at

least

three

years

after

the

generating

facility

1

begins

providing

service

to

Iowa

customers.

2

c.

In

determining

the

applicable

ratemaking

principles,

the

3

commission

shall

make

the

following

findings:

4

(1)

The

rate-regulated

public

utility

has

in

effect

a

5

commission-approved

energy

efficiency

plan

as

required

under

6

section

476.6,

subsection

15

.

7

(2)

The

rate-regulated

public

utility

has

demonstrated

to

8

the

commission

that

the

public

utility

has

considered

other

9

sources

for

long-term

electric

supply

and

that

the

facility

or

10

lease

is

reasonable

when

compared

to

other

feasible

alternative

11

sources

of

supply.

The

rate-regulated

public

utility

shall

12

provide

support

of

reasonability

with

an

electric

utility

13

resource

plan

pursuant

to

section

476.53C

that

has

been

updated

14

no

more

than

twenty-four

months

prior

to

the

filing

of

the

15

public

utility’s

application.

16

d.

The

applicable

ratemaking

principles

shall

be

determined

17

in

a

contested

case

proceeding

,

which

proceeding

required

by

18

paragraph

“a”

may

be

combined

with

the

proceeding

for

issuance

19

of

a

certificate

conducted

pursuant

to

chapter

476A

.

20

Sec.

4.

NEW

SECTION

.

476.53B

Commission

authority

and

21

proceedings.

22

The

commission

shall

adopt

rules

pursuant

to

chapter

17A

23

to

provide

for

the

completion

of

proceedings

under

section

24

476.53

within

ten

months

after

the

date

of

the

filing

of

an

25

application

under

section

476.53,

subsection

3.

The

rules

26

shall

include

reasonable

time

limitations

for

the

submission

or

27

completion

of

comments

and

testimony,

and

exhibits,

briefs,

and

28

hearings,

and

may

provide

for

the

granting

of

additional

time

29

upon

the

request

of

a

party

to

the

proceeding

for

good

cause

30

shown.

31

Sec.

5.

NEW

SECTION

.

476.53C

Electric

utility

resource

32

planning.

33

1.

An

electric

utility

required

to

be

rate-regulated

by

the

34

commission

shall

file

a

resource

plan

at

least

once

every

five

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years.

A

resource

plan

shall

consider

all

reasonable

resources

1

proposed

by

the

utility

for

meeting

the

probable

future

demand

2

for

energy,

including

supply

resources

and

conservation

and

3

management

of

demand.

For

conservation

and

management

of

4

demand,

an

electric

utility’s

resource

plan

shall

include

5

programs

approved

in

the

electric

utility’s

most

recent

energy

6

efficiency

plan

approved

by

the

commission

under

section

476.6,

7

subsection

15.

The

objectives

of

a

resource

plan

include

but

8

are

not

limited

to

adequate,

cost-effective,

and

reliable

9

energy

service

considering

costs,

fuel

diversity,

and

probable

10

future

demand

for

energy.

A

resource

plan

shall

not

require

a

11

specific

outcome

or

specific

investment

decisions.

A

resource

12

plan

shall

reflect

the

circumstances

and

management

judgment

13

of

an

electric

utility.

This

section

does

not

restrict

an

14

electric

utility

from

making

planning

decisions

based

on

future

15

resource

needs

subject

to

the

ratemaking

oversight

of

the

16

commission.

17

2.

The

commission

shall

review

a

resource

plan.

Within

18

ninety

days

of

filing

the

final

resource

plan,

the

commission

19

shall

issue

an

order

acknowledging

it

has

received

the

plan.

20

In

the

order

acknowledging

receipt,

the

commission

may

provide

21

recommendations

to

an

electric

utility

regarding

any

additional

22

analyses

or

actions

that

the

electric

utility

should

consider

23

completing

in

its

next

resource

plan.

24

3.

The

commission

shall

adopt

rules

pursuant

to

chapter

25

17A

regarding

the

timeline

and

stakeholder

process

to

review

26

and

provide

comments

on

the

resource

plan.

The

stakeholder

27

process

shall

include

the

electric

utility

organizing

and

28

facilitating

a

stakeholder

conference

for

the

resource

plan.

29

The

stakeholder

conference

shall

include

representatives

of

the

30

commission,

the

consumer

advocate,

and

the

electric

utility’s

31

customers.

The

electric

utility

shall

make

a

good

faith

effort

32

to

inform

and

consider

input

from

the

commission,

the

consumer

33

advocate,

and

stakeholders.

34

DIVISION

II

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TARIFFS

FOR

PUBLIC

UTILITY

INNOVATION

PROGRAMS

1

Sec.

6.

Section

476.6,

Code

2025,

is

amended

by

adding

the

2

following

new

subsection:

3

NEW

SUBSECTION

.

22.

Innovative

utility

programs.

4

a.

It

is

the

intent

of

the

general

assembly

to

encourage

5

public

utilities

to

pursue

innovation

in

pricing

and

programs

6

to

meet

the

dynamic

needs

of

current

and

prospective

customers,

7

enable

price-responsive

solutions,

and

to

provide

economic,

8

environmental,

employment,

and

other

benefits

to

the

state.

9

It

is

also

the

intent

of

the

general

assembly

that

these

10

new

endeavors

shall

not

negatively

impact

nonparticipating

11

customers.

Therefore,

the

general

assembly

declares

that

12

innovative

utility

programs

are

essential

to

further

the

13

attraction

and

retention

of

customers

to

benefit

the

state’s

14

economy

and

to

support

economical

and

sustainable

energy

15

production.

16

b.

(1)

A

tariff

authorized

under

this

subsection

shall

17

comply

with

all

of

the

following

conditions:

18

(a)

A

program

created

under

the

tariff

shall

be

available

to

19

interested

energy

customers

and

customer

participation

shall

20

be

optional.

21

(b)

A

tariff

shall

define

the

eligible

customer

groups.

22

(c)

An

eligible

customer

group

shall

not

exclude

directly

23

competing

customers

in

the

same

customer

service

territory.

24

For

purposes

of

this

subparagraph,

“directly

competing

25

customers”

means

customers

that

make

the

same

end

product

or

26

offer

the

same

service

for

the

same

general

group

of

customers,

27

and

excludes

customers

that

only

produce

component

parts

of

the

28

same

end

product.

29

(d)

Participating

customers

shall

bear

all

program

costs.

30

Program

costs

include

direct

costs

associated

with

the

31

construction,

operation,

maintenance,

and

interconnection

of

32

facilities,

including

new

transmission

infrastructure

directly

33

arising

from

the

tariff

program

and

costs

related

to

the

34

implementation

of

tariff

programs.

Participants

in

a

tariff

35

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approved

pursuant

to

this

section

shall

participate

in

future

1

indirect

costs

allocated

to

customers

of

that

utility

without

2

regard

for

the

existence

of

a

tariff

approved

pursuant

to

this

3

section.

4

(e)

A

tariff

shall

not

alter

the

existing

base

rates

or

5

charges

of

the

public

utility.

Refund,

credit,

or

waiver

of

6

existing

base

rates

or

charges

offered

as

part

of

the

program

7

shall

not

be

considered

an

alteration

of

existing

base

rates

8

or

charges.

9

(f)

The

program

created

under

the

tariff

shall

not

10

negatively

impact

nonparticipating

customers.

Additional

11

costs

incurred

by

nonparticipating

customers

due

to

costs

12

arising

from

the

tariff,

tariff

participants

no

longer

sharing

13

in

customer

class

costs,

or

decreased

customer

benefit

from

14

existing

infrastructure

shall

be

considered

negative

impacts.

15

(2)

A

tariff

authorized

under

this

subsection

may

include

16

any

of

the

following:

17

(a)

Recovery

of

costs

associated

with

program-specific

18

services

or

facilities,

including

but

not

limited

to

energy

19

storage,

renewable

hydrogen,

transmission,

electric

generating

20

facilities,

electric

distribution

facilities,

renewable

natural

21

gas

generation

facilities,

renewable

natural

gas

distribution

22

facilities,

utility-assisted

hourly

prices,

or

liquefied

23

natural

gas

facilities,

or

administrative

and

other

overhead

24

costs

relating

to

the

same.

25

(b)

A

negotiated

rate

of

return,

for

new

or

existing

26

facilities

or

services

provided

by

the

electric

utility

that

27

are

serving

the

program

created

under

the

tariff,

applicable

to

28

the

program

for

its

duration.

The

use

of

existing

facilities

29

would

require

reconciliation

of

impact

to

existing

customers

30

and

would

no

longer

be

subject

to

previously

approved

advance

31

ratemaking

principles.

In

the

event

that

the

tariff

or

its

32

eligible

customer

class

cease

to

exist,

no

charges

shall

be

33

imposed

on

or

costs

recovered

from

existing

customers

unless

34

approved

in

a

general

rate

case.

A

utility

may

seek

to

35

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demonstrate

the

prudence,

necessity,

and

use

and

usefulness

1

of

program-specific

facilities

or

services

as

defined

in

2

subparagraph

division

(a)

and

recovery

of

costs

for

the

same

in

3

a

general

rate

proceeding,

without

any

presumption

regarding

4

approval

of

such

request.

5

(c)

Application

of

the

program

to

readily

identifiable

6

customer

usage

patterns,

customer

characteristics,

or

output

7

of

specified

facilities.

8

(d)

Assignment

of

program

benefits,

including

nonmonetary

9

benefits

that

may

derive

from

dynamically

balancing

supply

and

10

demand,

providing

ancillary

services,

or

the

production

of

11

renewable

energy

attributes.

12

(e)

Refund,

credit,

or

waive

the

base

rate

or

charge

for

13

the

replaced

service

when

the

program

created

under

the

tariff

14

replaces

a

service

for

which

the

public

utility

collects

an

15

existing

base

rate

or

charge.

A

participating

customer

shall

16

pay

the

costs

of

remaining

services

received

from

the

public

17

utility

unless

those

costs

are

refunded,

credited,

or

waived

18

under

the

program

created

by

the

tariff.

19

(3)

If

a

utility

can

demonstrate

to

the

commission

that

20

a

proposed

tariff

generates

excess

revenue

for

the

utility

21

as

compared

to

total

revenue

without

the

tariff,

such

excess

22

revenue

may

be

retained

by

the

utility.

23

c.

(1)

A

public

utility’s

participation

under

this

24

subsection

is

not

mandatory.

A

public

utility

that

elects

to

25

propose

a

tariff

or

tariff

amendment

under

this

subsection

26

shall

file

an

application

for

approval

with

the

commission.

27

The

application

shall

include

an

identification

of

costs

and

28

benefits

related

to

the

program

for

the

commission’s

review

of

29

the

conditions

specified

in

paragraph

“b”

,

subparagraph

(1).

30

(2)

Within

thirty

days,

the

commission

shall

approve,

deny,

31

or

docket

for

further

review

an

application

for

a

tariff

or

32

amended

tariff

submitted

pursuant

to

this

subsection.

If

the

33

application

is

docketed

for

further

review,

the

commission

34

shall

render

a

decision

within

ninety

days

from

the

date

of

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application

filing

unless

an

objection

has

been

filed

with

the

1

commission.

If

the

application

proposes

to

amend

a

tariff

2

previously

approved

under

this

subsection,

the

commission

shall

3

not

reconsider

existing

programs

previously

approved

under

the

4

tariff

unless

proposed

as

part

of

the

amendment.

All

further

5

review

shall

be

conducted

as

a

contested

case

pursuant

to

6

chapter

17A.

7

(3)

If

the

application

proposes

to

amend

a

tariff

previously

8

approved

under

this

subsection

as

described

in

paragraph

“b”

,

9

subparagraph

(2),

the

commission

shall

act

on

the

application

10

as

described

in

subparagraph

(2)

of

this

paragraph,

but

shall

11

not

reconsider

existing

programs

previously

approved

under

the

12

tariff

unless

proposed

as

part

of

the

amendment.

13

(4)

In

the

exercise

of

its

authority

under

this

subsection,

14

the

commission

shall

not:

15

(a)

Limit

the

number

of

applications

a

public

utility

may

16

file

pursuant

to

this

subsection.

17

(b)

Deny

a

tariff

because

a

public

utility

is

subject

to

an

18

alternative

regulatory

mechanism,

nor

require

a

public

utility

19

subject

to

an

alternative

regulatory

mechanism

to

record

the

20

revenues

and

costs

associated

with

the

program

inconsistent

21

with

the

federal

energy

regulatory

commission’s

uniform

system

22

of

accounts;

provided,

however,

that

this

provision

shall

not

23

prohibit

the

utilities

commission

from

denying

a

tariff

if

the

24

proposed

tariff

would

result

in

detrimental

treatment

of

other

25

customers,

or

require

adjustment

to

the

calculation

of

the

26

alternative

regulatory

mechanism

to

reflect

the

impact

of

an

27

approved

tariff.

28

(c)

Condition

its

approval

on

the

public

utility

changing

29

its

proposal

if

the

public

utility

has

not

agreed

to

such

30

changes.

This

subparagraph

division

shall

not

be

interpreted

31

to

prevent

the

commission

from

identifying

changes

to

the

32

proposal

that

might

result

in

approval.

33

(5)

Tariffs

and

programs

approved

pursuant

to

this

34

subsection

shall

be

rebuttably

presumed

just

and

reasonable

in

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any

subsequent

general

rate

case

proceeding.

1

d.

The

commission

shall

not

condition

approval

or

denial

of

2

a

tariff

on

final

adoption

of

rules

by

the

commission.

3

e.

The

commission

shall

adopt

rules

pursuant

to

chapter

17A

4

to

implement

this

subsection.

5

Sec.

7.

APPLICABILITY.

This

division

of

this

Act

applies

6

to

a

public

utility

filing

an

application

with

the

utilities

7

commission

for

review

of

a

tariff

on

or

after

the

effective

8

date

of

this

division

of

this

Act.

9

DIVISION

III

10

LAND

RESTORATION

——

ELECTRIC

TRANSMISSION

LINES

APPROVED

BY

11

FEDERALLY

REGISTERED

PLANNING

AUTHORITY

TRANSMISSION

PLANS

12

Sec.

8.

Section

478.16,

Code

2025,

is

amended

to

read

as

13

follows:

14

478.16

Electric

transmission

lines

——

federally

registered

15

planning

authority

transmission

plans.

16

1.

Development

and

investment

in

high-voltage

transmission

17

is

urgently

needed

to

ensure

the

reliable,

adequate,

secure,

18

and

stable

delivery

of

electricity

to

consumers.

To

ensure

19

reliable

electric

service

to

the

people

of

Iowa

as

a

matter

20

of

public

policy,

it

is

the

intent

of

the

general

assembly

21

to

express

a

preference

for

further

investment

in

Iowa

22

transmission

infrastructure

by

electric

transmission

owners

who

23

have

already

dedicated

significant

resources

to

develop

the

24

infrastructure

on

which

Iowans

rely

and

who

are

better

able

to

25

provide

reliable

electric

service

to

local

electric

utilities

26

and

retail

customers

in

Iowa.

27

1.

2.

As

used

in

this

section

,

unless

the

context

otherwise

28

requires:

29

a.

“Electric

transmission

line”

means

a

high-voltage

30

electric

transmission

line

located

in

this

state

with

a

31

capacity

voltage

of

one

hundred

kilovolts

or

more

and

any

32

associated

electric

transmission

facility,

including

any

33

substation

or

other

equipment

located

in

this

state

.

34

b.

“Electric

transmission

owner”

means

an

individual

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or

entity

who,

as

of

July

1,

2020,

formed,

located,

or

1

headquartered

in

any

state

who

owns

and

maintains

an

2

electric

transmission

line

in

this

state

that

is

required

3

for

rate-regulated

electric

utilities,

municipal

electric

4

utilities,

and

rural

electric

cooperatives

in

this

state

to

5

provide

electric

service

to

the

public

for

compensation.

6

c.

“Incumbent

electric

transmission

owner”

means

any

an

7

individual

or

entity

meeting

the

definition

of

the

following:

8

(1)

A

public

utility

or

a

municipally

owned

utility

that

9

owns,

operates,

and

maintains

an

electric

transmission

line

in

10

this

state.

11

(2)

An

electric

cooperative

corporation

or

association

or

12

municipally

owned

utility

that

owns

an

electric

transmission

13

facility

in

this

state

and

has

turned

over

the

functional

14

control

of

such

facility

to

a

federally

approved

authority.

15

(3)

An

an

“electric

transmission

owner”

as

defined

in

16

paragraph

“b”

on

or

before

July

1,

2024

.

17

d.

“Landowner”

means

the

same

as

defined

in

section

478.2

18

“Initial

construction”

means

the

construction

necessary

to

19

establish

and

place

an

electric

transmission

line

into

initial

20

operation

.

21

e.

“Load

ratio

share”

means

the

amount,

expressed

as

a

22

percentage,

of

a

public

power

utility’s

electric

load

divided

23

by

the

total

electric

load

in

the

applicable

incumbent

electric

24

transmission

owner’s

pricing

zone.

25

e.

f.

“Municipally

owned

utility”

means

a

“city

utility”

26

as

defined

in

section

362.2

,

or

an

“electric

power

agency”

as

27

defined

in

section

390.9

which

that

is

comprised

solely

of

28

cities

or

solely

of

cities

and

other

political

subdivisions.

29

g.

“Public

power

utility”

means

a

municipally

owned

utility

30

or

an

electric

cooperative

corporation

or

association

that

31

receives

transmission

service

from

an

incumbent

electric

32

transmission

owner,

or

that

is

subject

to

regional

cost

33

allocation

for

the

electric

transmission

line,

or

both.

34

h.

“Qualified

individual”

means

someone

who

is

capable

and

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knowledgable

enough

to

determine

compliance

with

the

standards

1

set

forth

in

this

section.

2

2.

3.

a.

An

incumbent

electric

transmission

owner

has

the

3

right

to

construct,

own,

and

maintain

an

electric

transmission

4

line

that

has

been

approved

for

construction

in

a

federally

5

registered

planning

authority

transmission

plan

and

which

that

6

directly

connects

to

an

electric

transmission

facility

owned

by

7

the

incumbent

electric

transmission

owner.

Where

a

proposed

8

electric

transmission

line

would

directly

connect

to

electric

9

transmission

facilities

owned

by

two

or

more

incumbent

electric

10

transmission

owners,

each

incumbent

electric

transmission

owner

11

whose

facility

connects

to

the

electric

transmission

line

12

has

the

right

to

construct,

own,

and

maintain

the

electric

13

transmission

line

individually

and

equally.

If

an

incumbent

14

electric

transmission

owner

declines

to

construct,

own,

and

15

maintain

its

portion

of

an

electric

transmission

line

that

16

would

connect

to

electric

transmission

facilities

owned

by

17

two

or

more

incumbent

electric

transmission

owners,

then

the

18

other

incumbent

electric

transmission

owner

or

owners

that

19

own

an

electric

transmission

facility

to

which

the

electric

20

transmission

line

connects

has

the

right

to

construct,

own,

and

21

maintain

the

electric

transmission

line

individually.

22

b.

An

eligible

incumbent

electric

transmission

owner

23

exercising

the

right

to

construct,

own,

and

maintain

an

24

electric

transmission

line

pursuant

to

paragraph

“a”

shall

25

offer

public

power

utilities

an

opportunity

to

jointly

own

a

26

portion

of

the

electric

transmission

line

and

such

offer

shall

27

be

in

an

amount

not

less

than

a

public

power

utility’s

load

28

ratio

share,

pursuant

to

a

written

agreement.

Nothing

in

this

29

section

shall

be

construed

to

prohibit

an

incumbent

electric

30

transmission

owner

and

a

public

power

utility

from

agreeing

to

31

joint

ownership

of

an

electric

transmission

line

in

an

amount

32

different

than

the

public

power

utility’s

load

ratio

share.

A

33

public

power

utility

may

transfer

or

assign

joint

ownership

34

rights

acquired

under

this

section

to

another

public

power

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utility

or

group

of

public

power

utilities

by

mutual

consent

of

1

the

eligible

contracting

parties.

2

c.

An

eligible

incumbent

electric

transmission

owner

3

exercising

the

right

to

construct,

own,

and

maintain

an

4

electric

transmission

line

pursuant

to

paragraph

“a”

may

5

contract

with

another

electric

transmission

owner

or

electric

6

public

utility

as

defined

in

section

476.1

to

jointly

own

a

7

portion

of

the

electric

transmission

line

pursuant

to

a

written

8

agreement.

9

d.

For

purposes

of

this

section,

a

municipally

owned

utility

10

or

an

electric

cooperative

corporation

or

association

may

elect

11

to

be

an

incumbent

electric

transmission

owner

or

a

public

12

power

utility

but

cannot

act

as

both

with

respect

to

a

single

13

transmission

line.

14

3.

4.

If

an

electric

transmission

line

has

been

approved

15

for

construction

in

a

federally

registered

planning

authority

16

transmission

plan,

and

the

electric

transmission

line

is

17

not

subject

to

a

right

of

first

refusal

in

accordance

with

18

the

tariff

of

a

federally

registered

planning

authority

19

and

would

otherwise

be

subject

to

a

competitive

developer

20

process

,

then

within

the

later

of

ninety

days

of

approval

for

21

construction

or

ninety

days

after

enactment

of

this

division

22

of

this

Act

,

an

incumbent

electric

transmission

owner,

or

23

owners

if

there

is

more

than

one

owner,

that

owns

a

connecting

24

electric

transmission

facility

shall

give

written

notice

25

to

the

commission

regarding

whether

the

incumbent

electric

26

transmission

owner

or

owners

intend

to

construct,

own,

and

27

maintain

the

electric

transmission

line.

If

the

incumbent

28

electric

transmission

owner

or

owners

give

notice

of

intent

29

to

construct

the

electric

transmission

line,

the

incumbent

30

electric

transmission

owner

or

owners

shall

follow

the

31

applicable

franchise

requirements

pursuant

to

this

chapter

.

32

The

incumbent

electric

transmission

owner

shall

update

the

33

notice

to

construct

an

electric

transmission

line

to

include

34

information

concerning

the

implementation

of

joint

ownership

35

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as

described

in

subsection

3,

paragraphs

“b”

and

“c”

,

within

1

thirty

days

after

a

written

agreement

has

been

reached

between

2

the

parties.

If

the

incumbent

electric

transmission

owner

3

or

owners

give

notice

declining

to

construct

the

electric

4

transmission

line,

the

commission

may

determine

whether

another

5

person

may

construct

the

electric

transmission

line.

6

4.

5.

For

projects

where

for

which

an

election

to

construct

7

an

electric

transmission

line

has

been

made

under

this

section

,

8

all

of

the

following

cost

accountability

measures

shall

apply:

9

a.

Within

thirty

days

after

the

issuance

of

a

franchise

10

pursuant

to

this

chapter

for

the

electric

transmission

line,

11

the

incumbent

electric

transmission

owner

or

owners

shall

12

provide

to

the

commission

an

estimate

of

the

cost

to

construct

13

complete

the

initial

construction

of

the

electric

transmission

14

line.

15

b.

Until

the

initial

construction

of

the

electric

16

transmission

line

is

complete,

the

incumbent

electric

17

transmission

owner

or

owners

shall

provide

a

quarterly

report

18

to

the

commission,

which

shall

include

an

updated

estimate

of

19

the

cost

to

construct

the

electric

transmission

line

,

and

an

20

explanation

of

changes

in

the

cost

estimate

from

the

prior

21

cost

estimate

,

and

documentation

that

the

incumbent

electric

22

transmission

owner

or

owners

have

used

competitively

bid

23

construction

contracts

that

meet

all

the

technical,

commercial,

24

and

other

specifications,

such

as

safety

performance,

that

25

are

required

by

the

incumbent

electric

transmission

owner

or

26

owners

with

respect

to

the

initial

construction

of

the

electric

27

transmission

line

.

28

c.

The

consumer

advocate

appointed

under

section

475A.1

29

shall

have

free

access

to

documents,

reports,

and

information

30

submitted

to

the

commission

pursuant

to

this

subsection,

31

consistent

with

section

475A.4.

To

the

extent

relevant,

the

32

commission

and

the

consumer

advocate

may

use

the

information

33

for

any

purpose

properly

within

the

scope

of

their

respective

34

duties

including

but

not

limited

to

use

in

proceedings

before

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the

federal

energy

regulatory

commission

to

challenge

the

1

costs

incurred

by

the

incumbent

electric

transmission

owner.

2

However,

this

subsection

does

not

create

a

private

cause

of

3

action

or

complaint.

4

5.

6.

This

section

shall

not

modify

the

authority

of

the

5

commission

under

this

chapter

,

the

rights

of

landowners

under

6

this

chapter

,

or

the

requirements,

rights,

and

obligations

7

relating

to

the

construction,

maintenance,

and

operation

of

8

electric

transmission

lines

pursuant

to

this

chapter

.

9

6.

7.

This

section

shall

not

apply

to

an

electric

10

transmission

line

to

be

placed

underground

that

has

not

been

11

approved

for

construction

in

a

federally

registered

planning

12

authority

transmission

plan.

13

7.

8.

The

commission

shall

adopt

rules

pursuant

to

chapter

14

17A

to

administer

this

section

,

which

shall

include

rules

15

regarding

the

restoration

of

agricultural

lands

following

the

16

initial

construction

of

an

electric

transmission

line,

as

17

specified

in

subsection

9

.

18

9.

The

commission

shall

adopt

rules

to

implement

the

19

following

requirements,

which

shall

not

apply

within

the

20

corporate

limits

of

a

city

or

to

any

construction,

activity,

or

21

electric

transmission

lines

other

than

the

initial

construction

22

of

an

electric

transmission

line

with

a

voltage

of

two

hundred

23

or

more

kilovolts

and

for

which

an

election

to

construct

has

24

been

made

under

this

section:

25

a.

An

incumbent

electric

transmission

owner

shall

repair

a

26

damaged

underground

drain

tile

as

soon

as

practicable

during

27

construction

of

the

electric

transmission

line.

Permanent

28

repairs

to

the

damaged

underground

drain

tile

shall

be

29

completed

as

soon

as

practicable

after

the

initial

construction

30

of

the

electric

transmission

line

is

complete.

The

repairs

31

made

to

the

damaged

drain

tile

shall

be

of

at

least

equal

32

quality,

size,

and

flow

capacity

of

the

original

drain

tile.

33

b.

Following

the

initial

construction

of

an

electric

34

transmission

line,

the

incumbent

electric

transmission

owner

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shall

remove

from

the

easement

area

all

rock

larger

than

1

three

inches

in

average

diameter

not

native

to

the

soil

of

2

the

excavated

land.

The

rock

removed

from

the

excavated

land

3

that

cannot

be

used

to

backfill

shall

be

disposed

of

at

a

4

location

and

in

a

manner

agreed

upon

by

the

incumbent

electric

5

transmission

owner

and

the

landowner.

6

c.

Upon

completion

of

construction

activities

on

a

property,

7

the

incumbent

electric

transmission

owner

shall

deep

till

8

agricultural

land,

including

right-of-way

access

points

or

9

roads

traversed

by

heavy

construction

equipment,

to

alleviate

10

soil

compaction.

The

land

shall

be

tilled

at

least

eighteen

11

inches

deep

in

land

used

for

crop

production

and

twelve

12

inches

deep

in

other

lands

unless

otherwise

agreed

to

by

the

13

landowner.

14

d.

Upon

completion

of

the

electric

transmission

line,

15

the

incumbent

electric

transmission

owner

shall

restore

the

16

soil

conservation

practices

and

structures

damaged

during

17

construction

of

the

electric

transmission

line

to

the

elevation

18

and

grade

existing

on

the

land

prior

to

the

construction.

19

The

soil

used

to

repair

embankments

intended

to

retain

water

20

shall

be

well

compacted.

Any

vegetation

disturbed

during

21

construction

shall

be

reestablished,

including

cover

crops

when

22

appropriate.

23

e.

Following

compaction

of

the

land,

agricultural

land

that

24

is

not

in

row

crop

or

small

grain

production

at

the

time

of

25

construction,

including

hay

ground

and

land

in

conservation

or

26

set-aside

programs,

shall

be

reseeded

and

a

cover

crop

shall

27

be

utilized

when

appropriate.

Seeding

for

cover

crops

may

be

28

delayed

if

the

construction

of

the

electric

transmission

line

29

is

completed

too

late

in

the

year

for

a

cover

crop

to

become

30

established

and

is

not

required

if

the

land

will

be

tilled

in

31

the

following

year.

The

landowner

may

request

ground

cover

32

to

prevent

soil

erosion

in

areas

where

construction

on

the

33

electric

transmission

line

is

completed

if

the

season

is

not

34

suitable

for

seeding

a

cover

crop.

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f.

Unless

agreed

upon

by

the

incumbent

electric

transmission

1

owner

and

the

landowner,

the

incumbent

electric

transmission

2

owner

shall

remove

field

entrances

or

temporary

roads

built

for

3

the

purpose

of

constructing

the

electric

transmission

line

upon

4

the

completion

of

the

initial

construction

and

restore

the

area

5

to

its

previous

use.

6

g.

An

incumbent

electric

transmission

owner

shall

use

good

7

utility

practices

for

constructing

the

electric

transmission

8

line

in

wet

conditions,

such

as

electing

to

use

matting

or

9

padding

when

utilizing

heavy

equipment.

An

incumbent

electric

10

transmission

owner

shall

grade

and

till

any

rutted

land

to

11

restore,

to

the

extent

practicable,

the

original

condition

of

12

the

land

prior

to

the

construction

of

the

electric

transmission

13

line.

If

agreed

upon

by

the

incumbent

electric

transmission

14

owner

and

the

landowner,

the

landowner

may

repair

any

damage

15

caused

by

construction

activities

in

wet

conditions

and

the

16

incumbent

electric

transmission

owner

shall

reimburse

the

17

landowner

for

the

reasonable

cost

incurred

to

repair

the

18

damage.

If

an

incumbent

electric

transmission

owner

utilizes

19

heavy

equipment

in

wetlands

or

mudflats,

mats

or

other

measures

20

shall

be

utilized

to

minimize

soil

disturbance.

21

h.

For

each

electric

transmission

line,

the

incumbent

22

electric

transmission

owner

shall

designate

a

point

of

23

contact

for

inquiries

or

claims

from

an

affected

person.

The

24

designation

shall

include

a

name,

a

telephone

number,

an

email

25

address,

and

an

address.

26

10.

a.

If

an

incumbent

electric

transmission

owner

and

27

a

landowner

dispute

a

potential

violation

of

the

restoration

28

standards

provided

in

subsection

9,

the

commission

may

29

appoint

a

qualified

individual

to

inspect

the

property

for

30

compliance.

If

the

qualified

individual

determines

that

31

there

has

been

a

violation

of

the

applicable

restoration

32

standards,

the

commission

shall

provide

oral

notice,

followed

33

by

written

notice,

to

the

incumbent

electric

transmission

34

owner

and

the

contractor

operating

for

the

incumbent

electric

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transmission

owner

and

order

corrective

action

to

comply

with

1

the

restoration

standards.

The

incumbent

electric

transmission

2

owner

shall

be

responsible

for

the

costs

of

the

corrective

3

action.

4

b.

If

the

incumbent

electric

transmission

owner

or

the

5

contractor

for

the

incumbent

electric

transmission

owner

does

6

not

comply

with

a

valid

order

for

corrective

action

issued

by

7

the

commission,

the

commission

may

issue

an

order

requiring

8

corrective

action

to

be

taken

and

may

impose

civil

penalties

9

under

section

478.29.

10

c.

The

commission

shall

instruct

the

inspector

appointed

by

11

the

commission

regarding

the

content

of

the

statutes

and

rules

12

and

the

responsibility

of

the

inspector

to

require

restoration

13

conforming

with

the

standards

established

in

subsection

9.

14

11.

a.

A

petitioner

for

a

franchise

for

an

electric

15

transmission

line

shall

file

with

the

petition

a

written

land

16

restoration

plan

that

documents

how

the

requirements

and

rules

17

of

subsection

9

will

be

met.

The

petitioner

shall

provide

a

18

copy

of

the

plan

to

all

landowners

of

property

that

will

be

19

disturbed

by

the

initial

construction.

20

b.

Nothing

in

this

section

shall

preclude

the

application

21

of

provisions

for

protecting

or

restoring

property

that

are

22

different

than

those

prescribed

in

subsection

9,

in

rules

23

adopted

under

subsection

9,

or

in

the

land

restoration

plan,

24

if

the

alternative

provisions

are

contained

in

agreements

25

independently

executed

by

the

incumbent

electric

transmission

26

owner

and

the

landowner.

Independent

agreements

for

land

27

restoration

between

the

incumbent

electric

transmission

owner

28

and

the

landowner

shall

be

in

writing

and

provided

to

the

29

commission.

30

c.

The

commission

may

by

waiver

allow

variations

from

31

the

requirements

of

subsection

9

if

the

incumbent

electric

32

transmission

owner

requesting

a

waiver

satisfies

the

standards

33

set

forth

in

section

17A.9A

and

if

the

alternative

methods

34

proposed

by

the

incumbent

electric

transmission

owner

would

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restore

the

land

to

a

condition

as

good

as

or

better

than

as

1

provided

for

in

subsection

9.

2

d.

The

commission

may

waive

preparation

of

a

separate

3

land

restoration

plan

if

the

incumbent

electric

transmission

4

owner

enters

into

an

agricultural

impact

mitigation

plan

5

or

similar

agreement

with

the

appropriate

agencies

of

this

6

state

that

satisfies

the

requirements

of

subsection

9.

If

a

7

mitigation

plan

or

agreement

is

used

to

fully

or

partially

meet

8

the

requirements

of

a

land

restoration

plan,

the

statement

9

or

agreement

shall

be

filed

with

the

commission

and

shall

be

10

considered

to

be,

or

to

be

part

of,

the

land

restoration

plan

11

for

purposes

of

subsection

9.

12

12.

Nothing

in

this

section

shall

limit,

expand,

or

13

otherwise

modify

the

rights

of

access

and

obligations

for

14

damages

set

forth

in

section

478.17.

15

Sec.

9.

Section

478.18,

Code

2025,

is

amended

to

read

as

16

follows:

17

478.18

Supervision

of

construction

——

location.

18

1.

The

utilities

commission

shall

have

power

of

supervision

19

over

the

construction

of

a

transmission

line

and

over

its

20

future

operation

and

maintenance

,

including

inspections

for

21

compliance

with

the

standards

adopted

under

section

478.16

22

after

restoration

of

the

land

is

complete

.

23

2.

A

transmission

line

shall

be

constructed

near

and

24

parallel

to

roads,

to

the

right-of-way

of

the

railways

of

the

25

state,

or

along

the

division

lines

of

the

lands,

according

26

to

the

government

survey,

wherever

the

same

is

practicable

27

and

reasonable,

and

so

as

not

to

interfere

with

the

use

28

by

the

public

of

the

highways

or

streams

of

the

state,

nor

29

unnecessarily

interfere

with

the

use

of

any

lands

by

the

30

occupant.

31

3.

The

utilities

commission

may

contract

a

qualified

32

individual

for

the

purpose

of

inspections

authorized

under

33

section

478.16.

The

reasonable

cost

of

the

inspection

shall

34

be

paid

by

the

incumbent

electric

transmission

owner.

The

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utilities

commission

shall

instruct

the

inspector

appointed

by

1

the

commission

regarding

the

content

of

the

statutes

and

rules

2

and

the

responsibility

of

the

inspector

to

require

restoration

3

conforming

with

the

applicable

standards

established

in

section

4

478.16.

For

purposes

of

this

section,

“qualified

individual”

5

means

the

same

as

defined

in

section

478.16.

6

Sec.

10.

EFFECTIVE

DATE.

This

division

of

this

Act,

being

7

deemed

of

immediate

importance,

takes

effect

upon

enactment.

8

Sec.

11.

RETROACTIVE

APPLICABILITY.

With

the

exception

9

of

the

portion

of

the

section

of

this

division

of

this

Act

10

amending

section

478.16,

subsection

3,

paragraph

“b”,

this

11

division

of

this

Act

applies

retroactively

to

transmission

12

lines

included

in

a

federally

registered

planning

authority

13

long-term

transmission

plan

approved

on

or

after

July

1,

14

2020.

The

portion

of

the

section

of

this

division

of

this

15

Act

amending

section

478.16,

subsection

3,

paragraph

“b”,

16

shall

apply

retroactively

to

transmission

lines

included

in

a

17

federally

registered

planning

authority

long-term

transmission

18

plan

approved

on

or

after

July

1,

2024.

19

DIVISION

IV

20

ENERGY

AND

WATER

INFRASTRUCTURE

REVOLVING

LOAN

PROGRAM

21

Sec.

12.

Section

476.46A,

Code

2025,

is

amended

to

read

as

22

follows:

23

476.46A

Energy

and

water

infrastructure

revolving

loan

24

program.

25

1.

a.

An

energy

and

water

infrastructure

revolving

loan

26

fund

is

created

in

the

office

of

the

treasurer

of

state

and

27

shall

be

administered

by

the

Iowa

energy

center

economic

28

development

authority

established

in

section

15.120

15.105

.

29

b.

The

fund

may

be

administered

as

a

revolving

fund

and

may

30

consist

of

any

moneys

appropriated

by

the

general

assembly

for

31

purposes

of

this

section

and

any

other

moneys

that

are

lawfully

32

directed

to

the

fund.

33

c.

Moneys

in

the

fund

shall

be

used

to

provide

financial

34

assistance

for

the

development

and

construction

of

energy

or

35

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water

infrastructure

,

including

projects

that

support

electric

1

or

gas

generation

transmission,

storage,

or

distribution;

2

electric

grid

modernization;

energy-sector

workforce

3

development;

emergency

preparedness

for

rural

and

underserved

4

areas;

the

expansion

of

biomass,

biogas,

and

renewable

5

natural

gas;

innovative

technologies;

and

the

development

of

6

infrastructure

for

alternative

fuel

vehicles

that

support

7

economic

development

.

8

d.

Notwithstanding

section

8.33

,

moneys

appropriated

in

this

9

section

that

remain

unencumbered

or

unobligated

at

the

close

of

10

the

fiscal

year

shall

not

revert

but

shall

remain

available

for

11

expenditure

for

the

purposes

designated

until

the

close

of

the

12

succeeding

fiscal

year.

13

e.

Notwithstanding

section

12C.7,

subsection

2

,

interest

or

14

earnings

on

moneys

in

the

fund

shall

be

credited

to

the

fund.

15

2.

a.

The

Iowa

energy

center

economic

development

16

authority

shall

establish

and

administer

an

energy

and

17

water

infrastructure

revolving

loan

program

to

encourage

the

18

development

of

energy

and

water

infrastructure

within

the

19

state.

20

b.

An

individual,

business,

rural

electric

cooperative,

21

or

municipal

utility

located

and

operating

in

this

state

22

shall

be

eligible

for

financial

assistance

under

the

program.

23

With

the

approval

of

the

Iowa

energy

center

governing

board

24

established

under

section

15.120,

subsection

2

,

the

economic

25

development

authority

shall

determine

the

amount

and

the

26

terms

of

all

financial

assistance

awarded

to

an

individual,

27

business,

rural

electric

cooperative,

or

municipal

utility

28

under

the

program.

All

agreements

and

administrative

authority

29

shall

be

vested

in

the

Iowa

energy

center

governing

board.

30

To

be

eligible

for

a

financial

assistance

award

under

the

31

energy

and

water

infrastructure

revolving

loan

program,

an

32

eligible

borrower

must

demonstrate

that

the

proposed

project

33

will

attract

and

encourage

the

location

of

new

industrial

34

enterprise

or

the

expansion

of

existing

industrial

enterprise.

35

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Eligible

borrowers

may

be

awarded

financial

assistance

1

under

the

program

for

projects

that

support

electric

or

gas

2

generation

transmission,

storage,

or

distribution;

electric

3

grid

modernization;

energy

sector

workforce

development;

4

emergency

preparedness

for

rural

and

underserved

areas;

the

5

expansion

of

biomass,

biogas,

and

renewable

natural

gas;

or

6

innovative

technologies

and

drinking

water

treatment

systems

7

and

wastewater

treatment

systems.

The

economic

development

8

authority

shall

determine

the

amount

and

the

terms

of

all

9

financial

assistance

awarded

to

an

eligible

borrower

under

the

10

program.

All

agreements

and

administrative

authority

shall

be

11

vested

in

the

economic

development

authority.

The

economic

12

development

authority

may

adopt

rules

for

the

implementation

of

13

this

program.

14

c.

The

economic

development

authority

may

use

not

more

than

15

five

percent

of

the

moneys

in

the

fund

at

the

beginning

of

each

16

fiscal

year

for

purposes

of

administrative

costs,

marketing,

17

technical

assistance,

and

other

program

support.

18

d.

Each

fiscal

year

beginning

July

1,

2025,

the

economic

19

development

authority

shall

be

authorized

to

transfer

an

amount

20

not

to

exceed

six

hundred

thirty-three

thousand

dollars

from

21

the

energy

and

water

infrastructure

revolving

loan

fund

to

Iowa

22

state

university

of

science

and

technology

to

be

used

for

the

23

purposes

of

providing

financial

assistance

to

the

state

load

24

forecasting

center.

25

3.

For

the

purposes

of

this

section

:

26

a.

“Eligible

borrower”

means

an

individual,

business,

27

county,

city,

rural

electric

cooperative,

or

municipal

utility

28

located

and

operating

in

this

state.

29

a.

b.

“Energy

infrastructure”

means

land,

buildings,

30

physical

plant

and

equipment,

and

services

directly

related

31

to

the

development

of

projects

used

for,

or

useful

for,

32

electricity

or

gas

generation,

transmission,

storage,

or

33

distribution.

34

b.

c.

“Financial

assistance”

means

the

same

as

defined

in

35

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section

15.102

.

1

d.

“Water

infrastructure”

means

water

pollution

control

2

facilities

useful

for

the

collection,

treatment,

and

disposal

3

of

sewage

and

industrial

waste

in

a

sanitary

manner

and

4

drinking

water

facilities

useful

for

providing

potable

water

to

5

residents

served

by

a

water

system.

6

DIVISION

V

7

ANAEROBIC

DIGESTER

SYSTEMS

8

Sec.

13.

NEW

SECTION

.

459C.101

Title.

9

This

chapter

shall

be

known

and

may

be

cited

as

the

“Animal

10

Agriculture

Compliance

Act

for

Anaerobic

Digester

Systems”

.

11

Sec.

14.

NEW

SECTION

.

459C.102

Definitions.

12

1.

For

purposes

of

this

chapter,

unless

the

context

13

otherwise

requires:

14

a.

“Anaerobic

digester

system”

or

“digester”

means

a

covered

15

manure

storage

structure,

if

the

function

of

the

manure

storage

16

structure

is

to

process

manure,

by

employing

environmental

17

conditions

including

bacteria

to

break

down

organic

matter

in

18

the

absence

of

oxygen,

and

is

used

for

producing,

collecting,

19

and

utilizing

a

biogas,

and

may

also

process

on-farm

and

20

off-farm

organic

feedstocks,

and

food

products

or

food

for

21

human

consumption

if

approved

by

the

department

pursuant

to

22

section

459C.201,

subsection

4.

“Anaerobic

digester

system”

23

also

includes

related

buildings,

storage

structures,

transfer

24

pipes,

and

stockpiles

associated

with

the

digester

process.

25

b.

“Digestate”

means

the

dry

or

liquid

nutrient-rich

26

material

that

remains

after

the

anaerobic

digestion

of

organic

27

matter,

such

as

agricultural

residues,

food

waste,

or

manure.

28

c.

“Off-farm

organic

feedstocks”

means

organic

materials

29

that

originate

from

outside

the

farm

but

can

be

used

within

30

farming

systems,

particularly

for

soil

enrichment,

composting,

31

or

other

agricultural

purposes.

32

d.

“On-farm

organic

feedstocks”

means

organic

materials

33

that

are

produced

as

by-products

of

farming

activities

that

34

typically

come

from

plant

or

animal

sources

and

may

include

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crop

residues

and

other

organic

waste

generated

during

farm

1

operations.

2

e.

“Owner”

means

the

person

who

owns

an

anaerobic

digester

3

system.

4

2.

Where

not

in

conflict

with

the

definitions

set

out

in

5

subsection

1,

the

definitions

provided

in

sections

459.102,

6

459A.102,

and

459B.102

shall

control.

7

Sec.

15.

NEW

SECTION

.

459C.103

General

authority

——

8

commission

and

department

——

purpose

——

compliance.

9

1.

The

commission

shall

establish,

by

rule

adopted

pursuant

10

to

chapter

17A,

requirements

relating

to

the

construction,

11

including

expansion,

or

operation

of

anaerobic

digester

12

systems,

including

related

buildings,

storage

structures,

13

transfer

pipes,

and

stockpiles.

14

2.

The

purpose

of

this

chapter

is

to

provide

requirements

15

relating

to

the

construction,

including

the

expansion,

and

16

operation

of

anaerobic

digester

systems

and

the

control

of

17

digestate,

which

purpose

shall

be

construed

to

supplement

18

applicable

provisions

of

chapters

459,

459A,

and

459B.

If

19

there

is

a

conflict

between

the

provisions

of

this

chapter

and

20

chapters

459,

459A,

and

459B,

the

provisions

of

this

chapter

21

shall

prevail.

22

Sec.

16.

NEW

SECTION

.

459C.201

Anaerobic

digester

systems

23

——

permit

requirements.

24

1.

The

department

shall

approve

applications

for

permits

25

for

the

construction,

including

the

expansion,

of

anaerobic

26

digester

systems,

as

provided

by

rules

adopted

pursuant

to

this

27

chapter.

The

department’s

decision

to

approve

a

permit

for

the

28

construction

of

an

anaerobic

digester

system

shall

be

based

on

29

whether

the

application

is

submitted

according

to

procedures

30

required

by

the

department

and

the

application

meets

standards

31

established

by

the

department.

Construction

of

an

anaerobic

32

digester

system

requiring

a

permit

under

this

section

shall

not

33

begin

until

the

department

first

approves

the

application

and

34

issues

a

construction

permit.

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2.

In

addition

to

the

construction

permit

application

under

1

subsection

1,

the

following

must

be

submitted

in

order

for

the

2

department

to

approve

the

application:

3

a.

A

two

hundred

fifty

dollar

construction

permit

4

application

fee.

5

b.

A

written

plan

for

the

disposal

of

the

digestate.

6

c.

A

written

operation

plan

for

the

anaerobic

digester

7

system

detailing

the

responsibilities

of

all

owners,

animal

8

feeding

operations,

or

other

entities

involved

in

the

anaerobic

9

digester

system

processes.

10

3.

Every

anaerobic

digester

system

shall

obtain

a

11

construction

permit,

regardless

of

size

of

the

anaerobic

12

digester

system

or

facility.

The

owner

of

the

anaerobic

13

digester

system

is

considered

the

applicant

and

shall

be

14

responsible

for

the

construction

and

operation

of

the

anaerobic

15

digester

system.

16

4.

a.

Every

anaerobic

digester

system

is

intended

to

accept

17

only

manure

unless

department

approval

is

obtained

for

the

18

inclusion

of

on-farm

and

off-farm

organic

by-products,

food

19

products,

or

food

for

human

consumption.

Nonmanure

material

20

shall

not

exceed

ten

percent

of

the

total

material

added

to

the

21

anaerobic

digester

system.

22

b.

Daily

records

of

the

volumes

of

all

materials

added

23

to

the

anaerobic

digester

system

shall

be

required

to

be

24

maintained

at

the

facility.

25

c.

The

department

may

require

additional

testing

or

26

monitoring

of

any

manure

or

nonmanure

component

being

added

27

to

the

anaerobic

digester

system.

The

department

may

require

28

additional

testing

of

the

digestate.

29

d.

Medical

wastes,

including

expired

or

unused

antibiotics,

30

petroleum

products

not

designed

for

use

in

manure

storage

31

facilities,

pesticides,

paints,

solvents,

hazardous

materials,

32

municipal

or

sanitary

waste

or

sludge,

industrial

wastewater,

33

contaminated

feedstock,

slaughterhouse

wastes,

and

residues

34

from

processing

of

food

materials

that

have

not

been

deemed

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acceptable

for

human

consumption

shall

not

be

processed

in

the

1

anaerobic

digester

system.

2

Sec.

17.

NEW

SECTION

.

459C.202

Construction

design

standard

3

——

anaerobic

digester

systems.

4

1.

The

department

shall

adopt

rules

establishing

5

construction

design

standards

for

formed

manure

storage

6

structures

that

are

part

of

an

anaerobic

digester

system.

7

2.

The

construction

design

standards

shall

be

based,

to

8

every

extent

possible,

upon

uniform

standards

such

as

available

9

standards

promulgated

by

the

American

society

for

testing

and

10

materials

international.

The

department

may

require

that

all

11

or

part

of

a

formed

manure

storage

structure

be

constructed

of

12

concrete.

13

3.

The

construction

design

standards

for

concrete

shall

14

provide

for

all

of

the

following:

15

a.

The

concrete’s

minimum

compressive

strength

calculated

on

16

a

pounds-per-square-inch

basis.

17

b.

The

use

of

reinforcement,

including

but

not

limited

to

18

the

grade,

amount,

and

location

of

steel

rebar,

fiberglass,

or

19

similar

materials

set

in

the

concrete,

or

the

use

of

exterior

20

braces

to

support

joints.

21

c.

The

depth

of

footings.

22

d.

The

thickness

of

the

footings,

the

floor,

and

walls.

23

4.

A

person

shall

only

construct

a

formed

manure

storage

24

structure

on

karst

terrain

or

an

area

that

drains

into

a

known

25

sinkhole

pursuant

to

upgraded

construction

design

standards

26

necessary

to

ensure

that

the

structure

does

not

pollute

27

groundwater

sources.

The

construction

of

unformed

manure

28

storage

structures

is

prohibited

on

karst

terrain.

29

Sec.

18.

NEW

SECTION

.

459C.203

Distance

requirements.

30

1.

Water

quality

related

requirements.

31

a.

Except

as

provided

in

paragraph

“b”

,

the

following

32

requirements

shall

apply

to

the

location

of

an

anaerobic

33

digester

system

manure

storage

structure:

34

(1)

An

anaerobic

digester

system

manure

storage

structure

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shall

not

be

constructed

closer

than

five

hundred

feet

away

1

from

the

surface

intake

of

an

agricultural

drainage

well.

An

2

anaerobic

digester

system

manure

storage

structure

shall

not

3

be

constructed

closer

than

two

thousand

feet

from

a

wellhead,

4

cistern

of

an

agricultural

drainage

well,

or

known

sinkhole.

5

(2)

An

anaerobic

digester

system

manure

storage

structure

6

shall

not

be

constructed

if

the

anaerobic

digester

system

7

manure

storage

structure

as

constructed

is

closer

than

any

of

8

the

following:

9

(a)

Five

hundred

feet

away

from

a

water

source

other

than

a

10

major

water

source.

11

(b)

One

thousand

feet

away

from

a

major

water

source.

12

(c)

Two

thousand

five

hundred

feet

away

from

a

designated

13

wetland.

14

(3)

(a)

A

water

source,

other

than

a

major

water

source,

15

shall

not

be

constructed,

expanded,

or

diverted,

if

the

water

16

source

as

constructed,

expanded,

or

diverted

is

closer

than

17

five

hundred

feet

away

from

an

anaerobic

digester

system

manure

18

storage

structure.

19

(b)

A

major

water

source

shall

not

be

constructed,

expanded,

20

or

diverted,

if

the

major

water

source

as

constructed,

21

expanded,

or

diverted

is

closer

than

one

thousand

feet

from

an

22

anaerobic

digester

system

manure

storage

structure.

23

(c)

A

designated

wetland

shall

not

be

established,

if

the

24

designated

wetland

is

closer

than

two

thousand

five

hundred

25

feet

away

from

an

anaerobic

digester

system

manure

storage

26

structure.

27

(4)

An

anaerobic

digester

system

manure

storage

structure

28

shall

not

be

constructed

on

land

that

is

part

of

a

one

29

hundred

year

floodplain

as

designated

by

rules

adopted

by

the

30

department

pursuant

to

section

459.301.

31

b.

A

separation

distance

required

in

paragraph

“a”

shall

not

32

apply

to

any

of

the

following:

33

(1)

A

location

or

object

and

a

farm

pond

or

privately

owned

34

lake,

as

defined

in

section

462A.2.

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(2)

An

anaerobic

digester

system

manure

storage

structure

1

constructed

with

a

secondary

containment

barrier.

The

2

department

shall

adopt

rules

providing

for

the

construction

and

3

use

of

a

secondary

containment

barrier,

including

construction

4

design

standards.

5

2.

Air

quality

related

requirements.

6

a.

Except

as

provided

in

paragraph

“b”

,

the

following

7

requirements

shall

apply

to

the

location

of

an

anaerobic

8

digester

system

manure

storage

structure:

9

(1)

An

anaerobic

digester

system

manure

storage

structure

10

shall

not

be

constructed

closer

than

three

thousand

feet

from

11

a

residence

not

owned

by

the

owner

of

the

anaerobic

digester

12

system

or

the

owner

of

the

animal

feeding

operation

where

the

13

anaerobic

digester

system

is

located;

a

bona

fide

religious

14

institution;

a

public

use

area;

a

commercial

enterprise;

or

an

15

educational

institution.

16

(2)

An

anaerobic

digester

system

manure

storage

structure

17

shall

not

be

constructed

closer

than

one

hundred

feet

from

a

18

public

thoroughfare.

19

b.

A

separation

distance

required

in

paragraph

“a”

shall

not

20

apply

to

any

of

the

following:

21

(1)

(a)

An

anaerobic

digester

system

manure

storage

22

structure

that

is

constructed

or

expanded,

if

the

titleholder

23

of

the

land

benefiting

from

the

distance

separation

requirement

24

executes

a

written

waiver

with

the

titleholder

of

the

land

25

where

the

structure

is

located.

If

an

anaerobic

digester

26

system

manure

storage

structure

is

constructed

or

expanded

27

within

the

separation

distance

required

between

an

anaerobic

28

digester

system

manure

storage

structure

and

a

public

29

thoroughfare,

the

state

or

a

political

subdivision

constructing

30

or

maintaining

the

public

thoroughfare

benefiting

from

the

31

distance

separation

requirement

may

execute

a

written

waiver

32

with

the

titleholder

of

the

land

where

the

structure

is

33

located.

34

(b)

A

written

waiver

under

this

subsection

becomes

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effective

only

upon

the

recording

of

the

waiver

in

the

office

1

of

the

recorder

of

the

county

in

which

the

benefited

land

is

2

located.

The

filed

waiver

shall

preclude

enforcement

by

the

3

state

as

it

relates

to

a

distance

requirement

between

the

4

anaerobic

digester

system

manure

storage

structure

and

the

5

location

or

object

benefiting

from

the

separation

distance

6

requirement.

7

(2)

An

anaerobic

digester

system

manure

storage

structure

8

that

is

constructed

or

expanded

within

any

distance

from

a

9

residence,

educational

institution,

commercial

enterprise,

bona

10

fide

religious

institution,

city,

or

public

use

area,

if

the

11

residence,

educational

institution,

commercial

enterprise,

or

12

bona

fide

religious

institution

was

constructed

or

expanded,

or

13

the

boundaries

of

the

city

or

public

use

area

were

expanded,

14

after

the

date

that

the

anaerobic

digester

system

manure

15

storage

structure

was

established.

The

date

the

anaerobic

16

digester

system

manure

storage

structure

was

established

is

17

the

date

on

which

the

anaerobic

digester

system

commenced

18

operating.

A

change

in

ownership

or

expansion

of

the

anaerobic

19

digester

system

shall

not

change

the

established

date

of

20

operation.

21

Sec.

19.

NEW

SECTION

.

459C.301

Minimum

requirements

for

22

digestate

control.

23

1.

An

anaerobic

digester

system

shall

retain

all

digestate

24

produced

by

the

operation

between

periods

of

digestate

disposal

25

or

delivery

to

animal

feeding

operations.

For

purposes

of

26

this

section,

dry

digestate

may

be

retained

by

stockpiling

as

27

provided

in

this

subchapter.

An

anaerobic

digester

system

28

shall

not

discharge

digestate

directly

into

water

of

the

state

29

or

into

a

tile

line

that

discharges

directly

into

water

of

the

30

state.

31

2.

Digestate

from

an

anaerobic

digester

system

shall

be

32

disposed

of

in

a

manner

that

will

not

cause

surface

water

or

33

groundwater

pollution.

34

3.

The

owner

of

the

anaerobic

digester

system

that

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discontinues

the

use

of

the

operation

shall

remove

all

1

digestate

from

related

anaerobic

digester

system

structures

2

used

to

store

digestate

within

six

months

following

the

date

3

that

the

anaerobic

digester

system

is

discontinued.

4

Sec.

20.

NEW

SECTION

.

459C.302

Disposal

of

digestate

5

requirements.

6

1.

If

digestate

is

returned

to

an

animal

feeding

operation

7

for

land

application,

the

material

must

be

accounted

for

in

the

8

animal

feeding

operation’s

manure

management

plan

or

nutrient

9

management

plan.

10

2.

For

any

portion

of

the

digestate

not

returned

to

an

11

animal

feeding

operation,

the

owner

of

the

anaerobic

digester

12

system

shall

satisfy

all

applicable

law

for

proper

application

13

of

the

digestate.

14

Sec.

21.

NEW

SECTION

.

459C.401

Stockpiling

requirements.

15

1.

An

anaerobic

digester

system

may

stockpile

materials

16

prior

to

digestation

or

dry

digestate

so

long

as

the

facility

17

stockpiles

the

materials

and

dry

digestate

in

compliance

with

18

restrictions

applicable

to

stockpiling

as

provided

in

this

19

subchapter.

20

2.

Anaerobic

digester

system

stockpiles

shall

not

be

21

commingled

with

animal

feeding

operation

stockpiles.

22

3.

A

person

shall

not

stockpile

the

materials

and

dry

23

digestate

within

the

following

distances

from

any

of

the

24

following:

25

a.

A

terrace

tile

inlet

or

surface

tile

inlet,

two

hundred

26

feet.

However,

this

paragraph

does

not

apply

to

a

person

who

27

stockpiles

the

dry

digestate

in

a

manner

that

does

not

allow

28

precipitation-induced

runoff

to

drain

from

the

stockpile

to

the

29

terrace

tile

inlet

or

surface

tile

inlet.

A

terrace

tile

inlet

30

or

surface

tile

inlet

does

not

include

a

tile

inlet

that

is

not

31

directly

connected

to

a

tile

line

that

discharges

directly

into

32

a

water

of

the

state.

33

b.

(1)

A

designated

area,

four

hundred

feet.

However,

an

34

increased

separation

distance

of

eight

hundred

feet

shall

apply

35

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to

all

of

the

following:

1

(a)

A

high-quality

water

resource.

2

(b)

An

agricultural

drainage

well.

3

(c)

A

known

sinkhole.

4

(2)

Subparagraph

(1)

does

not

apply

to

a

person

who

5

stockpiles

materials

or

dry

digestate

in

a

manner

that

does

not

6

allow

precipitation-induced

runoff

to

drain

from

the

stockpile

7

to

the

designated

area.

8

c.

One

thousand

two

hundred

fifty

feet

from

a

residence

9

not

owned

by

the

owner

of

the

anaerobic

digester

system

or

10

the

owner

of

the

animal

feeding

operation

where

the

anaerobic

11

digester

system

is

located;

a

bona

fide

religious

institution;

12

a

public

use

area;

a

commercial

enterprise;

or

an

educational

13

institution.

14

4.

A

person

shall

not

stockpile

materials

or

dry

digestate

15

in

a

grassed

waterway.

16

5.

A

person

shall

not

stockpile

materials

or

dry

digestate

17

on

land

having

a

slope

of

more

than

three

percent.

However,

18

this

subsection

shall

not

apply

to

a

person

who

stockpiles

19

materials

or

dry

digestate

using

methods,

structures,

or

20

practices

that

contain

the

stockpile,

including

but

not

limited

21

to

silt

fences,

temporary

earthen

berms,

or

other

effective

22

measures,

and

that

prevent

or

diminish

precipitation-induced

23

runoff

from

the

stockpile.

24

6.

A

person

stockpiling

materials

or

dry

digestate

on

25

terrain,

other

than

karst

terrain,

for

more

than

fifteen

26

consecutive

days

shall

comply

with

any

of

the

following:

27

a.

Stockpile

materials

or

dry

digestate

using

a

qualified

28

stockpile

structure

or

qualified

stockpile

cover.

However,

the

29

person

shall

not

stockpile

materials

or

dry

digestate

using

a

30

qualified

stockpile

cover

at

a

long-term

stockpile

location

31

unless

the

person

stockpiles

the

materials

or

dry

digestate

32

on

compacted

soil,

compacted

granular

aggregates,

asphalt,

33

concrete,

or

other

similar

materials.

34

b.

Deliver

a

stockpile

inspection

statement

to

the

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department

by

the

fifteenth

day

of

each

month

in

writing,

which

1

may

be

on

a

form

prescribed

by

the

department.

The

stockpile

2

inspection

statement

shall

provide

the

location

of

the

3

stockpile

and

document

the

results

of

an

inspection

conducted

4

by

the

person

during

the

previous

month.

The

inspection

must

5

evaluate

whether

precipitation-induced

runoff

is

draining

6

away

from

the

stockpile

and,

if

so,

describe

actions

taken

7

to

prevent

the

runoff.

If

an

inspection

by

the

department

8

documents

that

precipitation-induced

runoff

is

draining

away

9

from

a

stockpile,

the

person

shall

immediately

remove

dry

10

digestate

from

the

stockpile

in

compliance

with

this

chapter

11

or

comply

with

all

directives

of

the

department

to

prevent

the

12

runoff.

13

7.

A

person

stockpiling

materials

or

dry

digestate

on

karst

14

terrain

shall

comply

with

all

of

the

following:

15

a.

If

the

proposed

stockpile

is

located

in

potential

karst

16

terrain,

a

professional

engineer

licensed

in

Iowa

or

a

staff

17

person

or

organization

qualified

through

the

Iowa

natural

18

resource

conservation

service

shall

submit

a

soil

report

to

19

the

department,

based

on

the

results

from

soil

corings,

test

20

pits,

or

acceptable

well

log

data,

describing

the

subsurface

21

materials

and

vertical

separation

distance

from

the

proposed

22

bottom

of

the

stockpile

to

the

underlying

limestone,

dolomite,

23

or

soluble

rock.

A

minimum

of

two

soil

corings

spaced

equally

24

within

the

stockpile

location

or

two

test

pits

located

within

25

five

feet

of

the

outside

of

the

stockpile

location

are

required

26

if

acceptable

well

log

data

is

not

available.

The

soil

27

corings

shall

be

taken

to

a

minimum

depth

of

twenty-five

feet

28

below

the

bottom

elevation

of

the

proposed

stockpile

or

into

29

bedrock,

whichever

is

shallower.

After

the

soil

exploration

30

is

complete,

each

coring

or

test

pit

shall

be

properly

plugged

31

with

concrete

grout,

bentonite,

or

similar

materials

and

32

completion

of

this

activity

shall

be

documented

in

the

soil

33

report.

If

a

twenty-five-foot

vertical

separation

distance

can

34

be

maintained

between

the

bottom

of

the

proposed

stockpile

and

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limestone,

dolomite,

or

other

soluble

rock,

then

the

structure

1

is

not

considered

to

be

in

karst

terrain.

2

b.

The

person

shall

stockpile

the

dry

digestate

at

a

3

location

where

there

is

a

vertical

separation

distance

of

at

4

least

five

feet

between

the

bottom

of

the

stockpile

and

the

5

underlying

limestone,

dolomite,

or

other

soluble

rock.

6

c.

A

person

who

stockpiles

materials

or

dry

digestate

7

for

more

than

fifteen

consecutive

days

shall

use

any

of

the

8

following:

9

(1)

A

qualified

stockpile

structure.

10

(2)

A

qualified

stockpile

cover.

However,

the

person

shall

11

not

stockpile

materials

or

dry

digestate

using

a

qualified

12

stockpile

cover

at

a

long-term

stockpile

location

unless

the

13

stockpile

is

located

on

reinforced

concrete

at

least

five

14

inches

thick.

15

8.

A

person

stockpiling

materials

or

dry

digestate

shall

16

comply

with

applicable

national

pollutant

discharge

elimination

17

system

permit

requirements

pursuant

to

the

federal

Water

18

Pollution

Control

Act,

33

U.S.C.

ch.

26,

as

amended,

and

40

19

C.F.R.

pts.

122

and

412.

20

9.

A

person

stockpiling

materials

or

dry

digestate

shall

21

remove

the

dry

digestate

and

apply

it

in

accordance

with

22

the

provisions

of

this

chapter

within

six

months

after

the

23

materials

or

dry

digestate

are

first

stockpiled.

24

Sec.

22.

NEW

SECTION

.

459C.501

General

enforcement.

25

The

department

and

the

attorney

general

shall

enforce

the

26

provisions

of

this

chapter

in

the

same

manner

as

provided

in

27

chapter

459,

subchapter

VI.

28

Sec.

23.

NEW

SECTION

.

459C.502

Violations

——

civil

penalty.

29

A

person

who

violates

a

provision

of

this

chapter

for

which

30

the

alleged

harm

is

related

to

air

quality

shall

be

subject

31

to

the

same

penalty

as

provided

in

section

459.602.

A

person

32

who

violates

a

provision

of

this

chapter

for

which

the

alleged

33

harm

is

related

to

water

quality

shall

be

subject

to

the

same

34

penalties

and

restrictions

as

provided

in

section

459.603.

A

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habitual

violator

of

the

provisions

of

this

chapter

shall

be

1

subject

to

the

same

penalties

and

restrictions

as

provided

in

2

sections

459.604

and

459.605.

Any

collected

civil

penalty

3

and

interest

on

a

civil

penalty

shall

be

credited

to

the

Iowa

4

nutrient

research

fund

created

in

section

466B.46.

5

Sec.

24.

CODE

EDITOR

DIRECTIVE.

6

1.

The

Code

editor

shall

designate

sections

459C.101

7

through

459C.502,

as

enacted

by

this

division

of

this

Act,

as

8

new

chapter

459C,

entitled

“Anaerobic

Digester

Systems”.

9

2.

The

Code

editor

shall

designate

sections

459C.101

10

through

459C.103,

as

enacted

by

this

division

of

this

Act,

11

as

a

new

subchapter

within

chapter

459C,

entitled

“General

12

Provisions”.

13

3.

The

Code

editor

shall

designate

sections

459C.201

14

through

459C.203,

as

enacted

by

this

division

of

this

Act,

as

15

a

new

subchapter

within

chapter

459C,

entitled

“Construction

16

Provisions”.

17

4.

The

Code

editor

shall

designate

sections

459C.301

18

through

459C.302,

as

enacted

by

this

division

of

this

Act,

19

as

a

new

subchapter

within

chapter

459C,

entitled

“Digestate

20

Disposal”.

21

5.

The

Code

editor

shall

designate

section

459C.401,

as

22

enacted

by

this

division

of

this

Act,

as

a

new

subchapter

23

within

chapter

459C,

entitled

“Stockpiling

Provisions”.

24

6.

The

Code

editor

shall

designate

sections

459C.501

25

through

459C.502,

as

enacted

by

this

division

of

this

Act,

as

26

a

new

subchapter

within

chapter

459C,

entitled

“Enforcement

27

Provisions”.

28

EXPLANATION

29

The

inclusion

of

this

explanation

does

not

constitute

agreement

with

30

the

explanation’s

substance

by

the

members

of

the

general

assembly.

31

This

bill

relates

to

rate-regulated

utilities

by

modifying

32

provisions

relating

to

electric

power

generation,

energy

33

storage,

and

transmission

facility

ratemaking

principles,

34

creating

tariffs

for

public

utility

innovation

programs,

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implementing

land

restoration

standards,

and

modifying

the

1

energy

infrastructure

revolving

loan

program.

2

Division

I

of

the

bill

modifies

intent

language

to

reflect

3

an

intent

to

attract

energy

storage

and

develop

nuclear

power

4

generation

for

consumers

in

the

state.

5

Division

I

of

the

bill

alters

ratemaking

principle

6

processes

and

modifies

when

a

rate-regulated

public

utility

7

may

seek

ratemaking

principles.

In

addition

to

electric

8

power

generating

facilities

and

alternate

energy

production

9

facilities,

the

utilities

commission

(commission)

may

specify

10

the

ratemaking

principles

applying

to

an

energy

storage

11

facility.

12

Division

I

of

the

bill

provides

that

a

rate-regulated

13

public

utility

may

seek

ratemaking

principles

from

the

14

commission

when

there

are

construction-related

costs

of

an

15

electric

power

generating

facility

with

a

nameplate

generating

16

capacity

equal

to

or

greater

than

40

megawatts,

an

alternate

17

energy

production

facility,

or

an

energy

storage

facility,

18

or

significant

alterations

to

an

existing

electric

power

19

generating

facility,

alternate

energy

production

facility,

20

or

energy

storage

facility.

Current

law

generally

provides

21

that

when

a

rate-regulated

public

utility

files

an

application

22

to

construct

a

baseload

electric

power

generating

facility

23

with

a

nameplate

generating

capacity

equal

to

or

greater

than

24

300

megawatts

or

a

combined-cycle

electric

power

generating

25

facility

or

an

alternate

energy

production

facility,

or

to

26

significantly

alter

an

existing

generating

facility

or

a

new

27

alternate

energy

production

facility,

the

commission

shall

28

specify

in

advance

the

ratemaking

principles

that

will

apply.

29

Division

I

of

the

bill

modifies

the

requirements

for

a

30

significant

alteration

of

an

existing

generating

facility

31

to

qualify

for

the

establishment

of

ratemaking

principles.

32

Division

I

of

the

bill

provides

that

to

qualify

for

ratemaking

33

principles,

the

significant

alteration

can

convert

an

electric

34

power

generating

facility

to

an

alternate

fuel

type,

add

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carbon

capture

and

carbon

storage

to

an

electric

power

1

generating

facility,

add

a

facility

to

capture

exhaust

heat

to

2

an

electric

power

generating

facility,

repower

an

alternate

3

energy

production

facility,

or

add

energy

storage

to

an

4

existing

electric

power

generating

facility,

alternate

energy

5

production

facility,

or

energy

storage

facility.

Current

6

law

provides

that

to

qualify

for

ratemaking

principles,

the

7

significant

alteration

can

convert

a

coal-fueled

facility

into

8

a

gas-fueled

facility,

add

carbon

capture

and

carbon

storage

9

to

a

coal-fueled

facility,

add

gas-fueled

capability

to

a

10

coal-fueled

facility,

add

a

biomass-fueled

capability

to

a

11

coal-fueled

facility,

or

repower

an

alternate

energy

production

12

facility.

13

Division

I

of

the

bill

provides

that

a

utility

investment

to

14

convert

an

electric

power

generating

facility

to

a

different

15

fuel

type,

add

carbon

capture

and

carbon

storage

to

an

electric

16

power

generating

facility,

or

add

a

fuel

type

to

an

electric

17

power

generating

facility

shall

be

eligible

to

apply

the

18

ratemaking

principles

established

by

an

order

issued

prior

to

19

construction

or

lease

of

a

facility.

20

Division

I

of

the

bill

provides

that

a

rate-regulated

21

public

utility

may

seek

ratemaking

principles

for

leasing

22

or

owning

a

new

electric

power

generating

facility

with

a

23

nameplate

generating

capacity

equal

to

or

greater

than

40

24

megawatts,

a

new

energy

storage

facility,

or

a

new

alternate

25

energy

production

facility.

Current

law

provides

that

26

a

rate-regulated

public

utility

leasing

or

owning

a

new

27

baseload

electric

power

generating

facility

with

a

nameplate

28

generating

capacity

equal

to

or

greater

than

300

megawatts,

29

a

combined-cycle

electric

power

generating

facility,

or

a

30

new

alternate

energy

production

facility

may

seek

ratemaking

31

principles.

32

Division

I

of

the

bill

requires

the

commission

to

issue

an

33

order

after

the

contested

case

proceeding

that

the

ratemaking

34

principles

will

apply

when

the

costs

of

the

electric

power

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generating

facility

or

alternate

energy

production

facility

1

are

included

in

regulated

electric

rates

once

the

commission

2

finds

that

the

rate-regulated

public

utility’s

application

for

3

ratemaking

principles

meets

all

the

commission’s

requirements.

4

Division

I

of

the

bill

requires

a

rate-regulated

public

5

utility

seeking

ratemaking

principles

to

provide

support

of

6

reasonability

with

an

electric

utility

resource

plan

that

has

7

been

updated

within

24

months

of

filing

the

application.

8

Division

I

of

the

bill

requires

the

commission

to

adopt

9

rules

for

proceedings

to

conclude

10

months

after

a

petition

is

10

filed.

11

Division

I

of

the

bill

requires

rate-regulated

electric

12

utilities

to

file

a

resource

plan

at

least

once

every

five

13

years.

The

resource

plan

must

consider

all

reasonable

14

resources

by

the

utility

for

meeting

the

probable

future

demand

15

for

energy,

including

supply

resources

and

conservation

and

16

management

of

demand.

For

conservation

and

management

of

17

demand,

the

resource

plan

shall

include

programs

approved

in

18

the

electric

utility’s

most

recently

approved

energy

efficiency

19

plan.

The

objectives

of

the

resource

plan

include

but

are

20

not

limited

to

adequate,

cost-effective,

and

reliable

energy

21

service

considering

costs,

fuel

diversity,

and

probable

future

22

demand

for

energy,

and

should

reflect

the

circumstances

and

23

management

judgment

of

the

electric

utility.

The

resource

24

plan

does

not

require

specific

outcomes

or

specific

investment

25

decisions.

26

Division

I

of

the

bill

directs

the

commission

to

issue

an

27

order

within

90

days

of

the

resource

plan

acknowledging

receipt

28

of

the

plan.

This

order

may

provide

recommendations

to

an

29

electric

utility

regarding

any

additional

analyses

or

actions

30

that

the

electric

utility

should

consider

completing

in

its

31

next

resource

plan.

32

Division

I

of

the

bill

directs

the

commission

to

adopt

rules

33

regarding

the

timeline

and

stakeholder

process

to

review

and

34

provide

comments

on

the

resource

plan.

The

stakeholder

process

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shall

include

the

electric

utility

organizing

and

facilitating

1

a

stakeholder

conference

with

representatives

of

the

2

commission,

the

consumer

advocate,

and

the

electric

utility’s

3

customers.

Division

I

of

the

bill

directs

the

electric

utility

4

to

make

a

good

faith

effort

to

inform

and

consider

input

from

5

the

commission,

the

consumer

advocate,

and

stakeholders.

6

Division

II

of

the

bill

provides

that

it

is

the

intent

of

7

the

general

assembly

to

encourage

public

utility

innovation

8

in

pricing

and

programs,

and

that

the

new

innovations

not

9

negatively

impact

nonparticipating

customers.

Division

II

10

of

the

bill

additionally

provides

that

it

is

the

intent

of

11

the

general

assembly

to

attract

and

retain

customers

for

the

12

benefit

of

the

state’s

economy,

support

of

economical

energy

13

production,

and

support

of

sustainable

energy

production.

14

Division

II

of

the

bill

authorizes

a

tariff

program.

15

Division

II

of

the

bill

provides

that

a

tariff

shall

comply

16

with

several

provisions.

The

tariff

shall

be

optional

for

17

customers,

define

eligible

customer

groups,

and

assess

18

program

costs

to

participating

customers.

Program

costs

19

shall

include

specified

direct

costs

arising

from

the

tariff

20

program

and

costs

related

to

the

implementation

of

tariff

21

programs.

Participants

of

a

tariff

program

shall

participate

22

in

future

indirect

costs

allocated

to

customers

of

that

23

utility

without

regard

for

the

existence

of

an

approved

tariff.

24

The

tariff

shall

not

allow

for

an

eligible

customer

group

25

excluding

directly

competing

customers

in

the

same

customer

26

service

territory,

alter

existing

base

rate

or

charges

of

27

the

public

utility,

or

negatively

impact

nonparticipating

28

customers.

Negative

impacts

include

additional

costs

incurred

29

by

nonparticipating

customers

due

to

costs

arising

from

the

30

tariff,

tariff

participants

no

longer

sharing

in

customer

31

class

costs,

or

decreased

customer

benefit

from

existing

32

infrastructure.

33

Division

II

of

the

bill

explains

that

a

tariff

may

include

34

provisions

relating

to

recovery

of

costs,

rate

of

return,

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application

of

the

program

to

other

specified

patterns,

program

1

benefits,

and

refunds,

credits,

or

waivers

when

the

program

2

replaces

an

existing

service,

or

recovery

of

costs

associated

3

with

existing

facilities.

A

participating

program

customer

4

shall

pay

the

costs

of

the

services

received

from

the

public

5

utility

unless

the

costs

are

refunded,

credited,

or

waived

6

under

the

program.

Division

II

of

the

bill

provides

that

7

if

the

program

or

eligible

customer

group

cease

to

exist

and

8

the

public

utility

seeks

recovery

of

the

program-specific

9

facilities

through

a

general

rate

case

proceeding,

the

public

10

utility

shall

demonstrate

the

reasonableness

and

prudence

11

without

any

presumption

regarding

approval

of

such

request.

A

12

public

utility

shall

be

allowed

to

recover

program-specific

13

facilities

through

general

rate

case

proceedings.

If

the

14

utility

can

demonstrate

to

the

commission

that

the

proposed

15

tariff

generates

excess

revenue

for

the

utility

as

compared

to

16

total

revenue

without

the

tariff,

the

excess

revenue

may

be

17

retained

by

the

utility.

18

Division

II

of

the

bill

provides

for

tariff

application

19

and

approval.

A

public

utility’s

authority

is

not

mandatory

20

regarding

tariffs.

Division

II

of

the

bill

provides

that

an

21

application

for

a

tariff

or

amendment

to

a

tariff

shall

be

22

filed

with

the

commission.

The

commission

shall

approve,

deny,

23

or

docket

for

further

review

an

application

within

30

days.

24

If

the

commission

dockets

the

application

for

further

review,

25

the

commission

shall

render

a

decision

within

90

days

from

the

26

date

of

application

filing,

unless

an

objection

is

filed.

The

27

commission

shall

not

reconsider

existing

programs

previously

28

approved

under

the

tariff

during

a

review

of

an

application

29

for

an

amendment

to

a

tariff

unless

the

review

of

a

program

is

30

proposed

as

part

of

the

amendment.

31

Division

II

of

the

bill

prohibits

the

commission

from

32

certain

actions.

Division

II

of

the

bill

provides

that

33

the

commission

shall

not

limit

the

number

of

applications

a

34

public

utility

may

file,

deny,

or

condition

the

approval

of

a

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tariff

because

a

public

utility

is

subject

to

an

alternative

1

regulatory

mechanism,

or

require

a

public

utility

subject

to

an

2

alternative

regulatory

mechanism

to

record

revenues

and

costs

3

in

an

inconsistent

manner

with

specified

federal

standards,

4

provided

that

the

proposed

tariff

would

not

result

in

5

detrimental

treatment

of

other

customers

or

require

adjustment

6

to

the

calculation

of

the

alternative

regulatory

mechanism

to

7

reflect

the

impact

of

an

approved

tariff.

Division

II

of

the

8

bill

prohibits

the

commission

from

conditioning

approval

of

a

9

tariff

on

the

requirement

that

the

public

utility

change

the

10

proposal

to

unagreed-upon

terms,

but

this

prohibition

does

not

11

prevent

the

commission

from

identifying

changes

to

the

proposal

12

that

might

result

in

approval.

13

Division

II

of

the

bill

provides

that

tariffs

and

programs

14

approved

pursuant

to

division

II

of

the

bill

shall

be

15

rebuttably

presumed

to

be

just

and

reasonable

in

general

rate

16

case

proceedings.

Division

II

of

the

bill

prohibits

the

17

commission

from

conditioning

approval

or

denial

of

a

tariff

18

on

the

final

adoption

of

rules

and

requires

the

commission

to

19

adopt

rules

related

to

division

II

of

the

bill.

20

Division

II

of

the

bill

applies

to

a

public

utility

filing

an

21

application

with

the

commission

for

review

of

a

tariff

on

or

22

after

the

effective

date

of

division

II

of

the

bill.

23

Division

III

of

the

bill

relates

to

electric

transmission

24

lines

and

electric

transmission

owners.

Division

III

of

the

25

bill

expounds

the

legislative

purpose

of

Code

section

478.16,

26

identifying

Iowa

consumers’

urgent

need

for

development

and

27

investment

in

high-voltage

transmission.

Division

III

of

the

28

bill

provides

that

an

incumbent

electric

transmission

owner

may

29

be

formed,

located,

or

headquartered

in

any

state

as

long

as

30

the

electric

transmission

line

is

located

in

Iowa.

31

Division

III

of

the

bill

defines

an

“incumbent

electric

32

transmission

owner”

as

an

individual

or

entity

who,

as

of

July

33

1,

2024,

owns

and

maintains

an

electric

transmission

line

34

in

this

state

that

is

required

for

rate-regulated

electric

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utilities,

municipal

electric

utilities,

and

rural

electric

1

cooperatives

in

the

state

to

provide

electric

service

to

the

2

public

for

compensation.

3

Under

division

III

of

the

bill,

an

incumbent

electric

4

transmission

facility

owner

has

the

right

to

construct,

own,

5

and

maintain

an

electric

transmission

line

that

directly

6

connects

to

the

electric

transmission

facility.

If

a

proposed

7

transmission

line

would

directly

connect

to

facilities

owned

8

by

two

or

more

facility

owners,

each

owner

has

the

right

to

9

construct,

own,

and

maintain

the

electric

transmission

line

10

individually

and

equally.

11

Division

III

of

the

bill

requires

an

incumbent

electric

12

transmission

owner

exercising

its

right

to

construct,

own,

13

and

maintain

an

electric

transmission

line

to

offer

public

14

power

utilities

an

opportunity

to

jointly

own

a

portion

of

the

15

electric

transmission

line.

The

offered

amount

must

be

at

16

least

the

amount

of

the

public

power

utility’s

electric

load

17

divided

by

the

total

electric

load

in

the

applicable

incumbent

18

electric

transmission

owner’s

pricing

zone.

Division

III

of

19

the

bill

does

not

prohibit

the

entities

from

agreeing

to

joint

20

ownership

in

a

different

amount.

Additionally,

division

III

of

21

the

bill

allows

the

public

power

utility

to

transfer

or

assign

22

its

joint

ownership

rights

to

another

public

power

utility

23

or

group

of

public

power

utilities

with

the

consent

of

the

24

incumbent

electric

transmission

owner.

25

Division

III

of

the

bill

allows

an

incumbent

electric

26

transmission

owner

exercising

its

right

to

construct,

own,

27

and

maintain

an

electric

transmission

line

to

contract

with

28

another

electric

transmission

owner

or

electric

public

utility

29

to

jointly

own

a

portion

of

the

electric

transmission

line.

30

Division

III

of

the

bill

requires

the

incumbent

electric

31

transmission

owner

or

owners

with

approved

electric

32

transmission

lines

not

subject

to

right

of

first

refusal

33

in

a

federally

registered

planning

authority

transmission

34

plan

to

give

notice

to

the

commission

whether

the

owner

or

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owners

intend

to

construct,

own,

and

maintain

the

electric

1

transmission

line.

The

notice

shall

be

given

within

the

later

2

of

90

days

of

approval

for

construction

or

90

days

after

3

enactment

of

division

III

of

the

bill.

The

commission

may

4

determine

whether

another

person

may

construct

the

electric

5

transmission

line

if

the

incumbent

electric

transmission

owner

6

or

owners

give

notice

declining

to

construct

or

do

not

give

7

timely

notice.

8

Division

III

of

the

bill

requires

incumbent

electric

9

transmission

owners

to

provide

documentation

to

the

commission

10

that

shows

utilization

of

competitively

bid

construction

11

contracts

that

meet

all

necessary

technical,

commercial,

and

12

other

specifications

required

for

compliant

construction.

13

Division

III

of

the

bill

allows

the

consumer

advocate

free

14

access

to

all

documents,

reports,

and

information

submitted

to

15

the

commission

regarding

cost

accountability

measures

for

the

16

construction

of

electric

transmission

lines.

These

documents,

17

reports,

and

information

may

be

used

by

the

consumer

advocate

18

for

any

purpose

within

the

scope

of

the

consumer

advocate’s

19

duties.

These

provisions

do

not

create

a

private

cause

of

20

action

or

complaint.

21

Division

III

of

the

bill

directs

the

commission

to

adopt

22

rules

to

implement

the

land

restoration

requirements

after

23

initial

construction

of

an

electric

transmission

line

as

set

24

forth

in

division

III

of

the

bill.

25

Division

III

of

the

bill

requires

incumbent

electric

26

transmission

owners

to

repair

drain

tiles

damaged

during

27

construction

as

soon

as

practicable

and

to

complete

permanent

28

repairs

as

soon

as

practicable

after

initial

construction.

The

29

permanent

repairs

must

be

of

the

same

quality,

size,

and

flow

30

capacity

of

the

original

drain

tile.

31

Division

III

of

the

bill

requires

incumbent

electric

32

transmission

owners

to

remove

all

nonnative

rocks

larger

33

than

three

inches

in

diameter

from

the

easement

area.

The

34

disposal

of

rock

that

cannot

be

used

as

backfill

must

be

done

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at

a

location

and

in

a

manner

agreed

to

between

the

incumbent

1

electric

transmission

owner

and

the

landowner.

2

Division

III

of

the

bill

requires

the

incumbent

electric

3

transmission

owner

to

till

agricultural

land

affected

by

4

construction,

including

right-of-way

access

points

or

roads,

5

after

electric

transmission

line

construction

activities

are

6

completed

on

the

affected

property.

The

land

must

be

tilled

7

at

least

18

inches

deep

in

land

used

for

crop

production

and

12

8

inches

deep

in

all

other

land,

unless

otherwise

agreed

to

by

9

the

landowner.

10

Division

III

of

the

bill

requires

the

incumbent

electric

11

transmission

owner

to

restore

soil

conservation

practices

12

and

structures

damaged

during

construction

to

their

previous

13

state,

compact

the

soil

used

to

repair

embankments

intended

to

14

retain

water,

and

reestablish

any

vegetation

disturbed

during

15

construction,

including

cover

crops.

16

Division

III

of

the

bill

requires

the

incumbent

electric

17

transmission

owner

to

reseed

the

agricultural

land,

excluding

18

row

crops

and

small

grain

production,

following

compaction

19

of

the

land.

Seeding

for

cover

crops

may

be

delayed

if

20

construction

is

completed

too

late

in

the

year

and

is

not

21

required

if

the

land

will

be

tilled

the

following

year.

When

22

the

season

is

not

suitable

for

the

seeding

of

cover

crops,

the

23

landowner

may

request

ground

cover

to

prevent

soil

erosion.

24

Division

III

of

the

bill

requires

the

incumbent

electric

25

transmission

owner

to

remove

all

field

entrances

and

temporary

26

roads

used

during

construction

and

to

restore

the

areas

to

27

their

previous

state

following

the

completion

of

the

initial

28

construction.

29

Division

III

of

the

bill

requires

the

incumbent

electric

30

transmission

owner

to

use

good

practices

when

constructing

in

31

wet

conditions

and

to

grade

and

till

any

rutted

land

in

order

32

to

restore

the

land

to

its

original

condition

to

the

extent

33

practicable.

Additionally,

division

III

of

the

bill

allows

34

the

landowner

to

repair

damage

caused

by

construction

in

wet

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conditions.

The

incumbent

electric

transmission

owner

shall

1

then

reimburse

the

landowner

for

reasonable

costs

of

repair.

2

Division

III

of

the

bill

requires

an

electric

transmission

3

owner

to

utilize

mudflats,

mats,

or

other

measures

to

minimize

4

soil

disturbance

when

using

heavy

equipment

in

wetlands.

5

Division

III

of

the

bill

requires

the

incumbent

electric

6

transmission

owner

to

provide

contact

information

to

all

7

persons

affected

by

the

construction

of

each

transmission

line.

8

Division

III

of

the

bill

allows

the

commission

to

appoint

an

9

inspector

to

determine

compliance

with

restoration

standards

10

in

the

event

the

incumbent

electric

transmission

owner

and

the

11

landowner

dispute

over

potential

violations.

The

cost

of

the

12

inspection

shall

be

paid

by

the

incumbent

electric

transmission

13

owner.

If

the

inspector

determines

there

have

been

violations

14

of

the

restoration

standards,

the

commission

will

provide

oral

15

and

written

notice

to

the

incumbent

electric

transmission

16

owner.

The

commission

will

order

corrective

actions

be

taken

17

to

comply

with

the

standards.

The

costs

of

the

corrective

18

actions

will

be

borne

by

the

electric

transmission

owner.

19

Division

III

of

the

bill

allows

the

commission

to

issue

an

20

order

requiring

corrective

action

and

impose

civil

penalties

if

21

the

incumbent

electric

transmission

owner

or

its

contractor

do

22

not

comply

with

the

required

standards.

23

Division

III

of

the

bill

requires

the

commission

to

instruct

24

the

inspectors

on

the

statutes,

rules,

and

responsibilities

25

regarding

restoration

standards.

26

Division

III

of

the

bill

requires

petitioners

for

a

27

franchise

for

electric

transmission

construction

to

file

a

land

28

restoration

plan

outlining

how

the

construction

will

conform

29

to

the

required

standards.

The

restoration

plan

will

also

be

30

provided

to

all

property

owners

affected

by

the

construction.

31

Division

III

of

the

bill

allows

alternative

provisions

in

32

independent

agreements

with

landowners

regarding

protecting

or

33

restoring

property

as

long

as

these

provisions

are

in

writing

34

and

are

provided

to

the

commission.

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Division

III

of

the

bill

allows

electric

transmission

1

owners

to

propose

alternate

methods

of

land

restoration

to

the

2

commission.

The

commission,

by

waiver,

may

allow

variations

3

to

the

land

restoration

requirements

if

the

proposed

alternate

4

methods

would

restore

the

land

to

a

condition

as

good

or

better

5

than

those

required

by

division

III

of

the

bill.

6

Division

III

of

the

bill

allows

the

commission

to

waive

the

7

preparation

of

a

separate

land

restoration

plan,

in

whole

or

in

8

part,

if

the

incumbent

electric

transmission

owner

satisfies

9

the

requirements

through

similar

agreement

with

other

agencies

10

in

the

state.

The

relevant

agreements

must

be

filed

with

the

11

commission.

12

Division

III

of

the

bill

does

not

limit,

expand,

or

otherwise

13

modify

the

rights

of

access

and

obligations

for

damages

set

14

forth

in

Code

section

478.17.

15

Division

III

of

the

bill

takes

effect

upon

enactment.

16

Division

III

of

the

bill

applies

retroactively

to

an

17

electric

transmission

line

included

in

a

federally

registered

18

planning

authority

long-term

transmission

plan

approved

on

19

or

after

July

1,

2020,

with

the

exception

of

the

provisions

20

requiring

incumbent

electric

transmission

owners

to

offer

21

public

power

utilities

the

option

to

jointly

own

qualifying

22

electric

transmission

lines.

For

this

exception,

division

III

23

of

the

bill

applies

retroactively

to

July

1,

2024.

24

Division

IV

of

the

bill

relates

to

the

energy

infrastructure

25

revolving

loan

program,

which

is

renamed

as

the

“energy

and

26

water

infrastructure

revolving

loan

program”.

27

Under

current

law,

the

energy

infrastructure

revolving

loan

28

fund

(fund)

and

program

are

administered

by

the

Iowa

energy

29

center

(center).

Division

IV

of

the

bill

instead

places

30

the

administrative

duty

with

the

Iowa

economic

development

31

authority

(IEDA)

and

renames

the

fund

the

“energy

and

water

32

infrastructure

revolving

loan

fund”.

33

Division

IV

of

the

bill

adds

financial

assistance

for

the

34

development

and

construction

of

water

infrastructure

that

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supports

economic

development

to

the

fund’s

approved

uses,

1

including

drinking

water

treatment

systems

and

wastewater

2

treatment

systems.

3

Division

IV

of

the

bill

expands

the

entities

eligible

for

4

assistance

under

the

fund

to

include

a

county

or

city.

5

Under

current

law,

the

approval

of

the

center’s

governing

6

board

is

required

before

IEDA

can

determine

the

amount

and

7

the

terms

of

all

financial

assistance

awarded

to

an

eligible

8

borrower

and

all

agreements

and

administrative

authority

are

9

vested

in

the

center’s

governing

board.

Division

IV

of

the

10

bill

removes

the

approval

requirement

by

the

center

and

its

11

authority

regarding

agreements.

12

Division

IV

of

the

bill

adds

that

to

be

eligible

for

13

a

financial

assistance

award

under

the

energy

and

water

14

infrastructure

revolving

loan

program,

an

eligible

borrower

15

must

demonstrate

that

the

proposed

project

will

attract

and

16

encourage

the

location

of

new

industrial

enterprise

or

the

17

expansion

of

existing

industrial

enterprise.

Division

IV

18

of

the

bill

states

that

IEDA

shall

determine

the

amount

and

19

the

terms

of

all

financial

assistance

awarded

to

an

eligible

20

borrower

under

the

program

and

that

all

agreements

and

21

administrative

authority

shall

be

vested

in

IEDA.

Division

22

IV

of

the

bill

provides

that

IEDA

may

adopt

rules

for

the

23

implementation

of

this

program.

24

Division

IV

of

the

bill

grants

IEDA

the

ability

to

authorize

25

the

transfer

of

up

to

$633,000

annually

to

Iowa

state

26

university

of

science

and

technology

to

be

used

for

providing

27

financial

assistance

to

the

state

load

forecasting

center.

28

Division

V

of

the

bill

relates

to

anaerobic

digester

29

systems.

Division

V

of

the

bill

states

its

purpose

is

to

30

provide

requirements

relating

to

the

construction,

including

31

the

expansion,

and

operation

of

anaerobic

digester

systems

and

32

the

control

of

digestate.

Division

V

of

the

bill

directs

the

33

environmental

protection

commission

to

make

rules

for

this

34

stated

purpose.

Division

V

of

the

bill

states

that

if

the

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585

provisions

of

new

Code

chapter

459C

conflict

with

Code

chapter

1

459,

459A,

or

459B,

the

provisions

of

Code

chapter

459C

shall

2

prevail.

3

Division

V

of

the

bill

directs

the

department

of

natural

4

resources

(DNR)

to

approve

applications

for

permits

for

5

construction,

including

expansion,

of

anaerobic

digester

6

systems

based

on

procedures

required

in

division

V

of

the

7

bill

and

rules

created

by

DNR

pursuant

to

division

V

of

the

8

bill.

Division

V

of

the

bill

prohibits

the

construction

of

9

an

anaerobic

digester

system,

regardless

of

size,

until

the

10

construction

permit

has

been

approved.

The

applicant

must

11

also

submit

a

$250

permit

application

fee,

a

written

plan

for

12

disposal

of

the

digestate,

and

a

written

operation

plan

for

an

13

anaerobic

digester

system.

14

Division

V

of

the

bill

requires

an

anaerobic

digester

15

system

to

accept

only

manure

unless

DNR

otherwise

approves

the

16

inclusion

of

organic

by-product,

food

product,

or

food

for

17

human

consumption.

Nonmanure

materials

shall

not

compose

more

18

than

10

percent

of

the

total

material

added

to

an

anaerobic

19

digester

system.

20

Division

V

of

the

bill

requires

a

daily

record

of

materials

21

added

to

an

anaerobic

digester

system

to

be

kept

and

maintained

22

at

the

facility

and

grants

DNR

the

authority

for

additional

23

testing

or

monitoring

of

the

materials

added

to

an

anaerobic

24

digester

system

and

the

digestate.

25

Division

V

of

the

bill

prohibits

medical

wastes,

including

26

expired

or

unused

antibiotics,

petroleum

products

not

designed

27

for

use

in

manure

storage

facilities,

pesticides,

paints,

28

solvents,

hazardous

materials,

municipal

or

sanitary

waste

29

or

sludge,

industrial

wastewater,

contaminated

feedstock,

30

slaughterhouse

wastes,

and

residues

from

processing

of

food

31

materials

that

have

not

been

deemed

acceptable

for

human

32

consumption

from

being

processed

in

an

anaerobic

digester

33

system.

34

Division

V

of

the

bill

directs

DNR

to

adopt

rules

to

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establish

construction

design

standards

for

formed

manure

1

storage

structures

that

are

part

of

an

anaerobic

digester

2

system.

Division

V

of

the

bill

requires

construction

design

3

standards

to

be

based

upon

uniform

standards

and

provides

4

construction

design

standards

for

concrete.

5

Division

V

of

the

bill

prohibits

the

construction

of

6

unformed

manure

storage

structures

on

karst

terrain,

but

allows

7

the

construction

of

a

formed

manure

storage

structure

on

8

karst

terrain

or

an

area

that

drains

into

a

known

sinkhole

if

9

upgraded

construction

design

standards

necessary

to

ensure

that

10

the

structure

does

not

pollute

groundwater

sources

are

used.

11

Division

V

of

the

bill

provides

separation

distance

12

requirements

between

an

anaerobic

digester

system

manure

13

storage

structure

and

a

surface

intake

of

a

drainage

well,

14

wellhead,

cistern

of

an

agricultural

well,

known

sinkhole,

15

water

source,

or

wetland.

Division

V

of

the

bill

provides

16

exceptions

for

a

location

or

object

and

a

farm

pond

or

17

privately

owned

lake.

18

Division

V

of

the

bill

prohibits

construction,

expansion,

19

or

diversion

of

a

water

source

or

the

designation

of

a

20

wetland

if

the

action

would

cause

an

anaerobic

digester

system

21

manure

storage

structure

to

be

in

violation

of

the

distance

22

requirements.

23

Division

V

of

the

bill

prohibits

an

anaerobic

digester

24

system

manure

storage

structure

from

being

constructed

on

land

25

that

is

part

of

a

100

year

floodplain

as

determined

by

DNR.

26

Division

V

of

the

bill

states

there

are

no

distance

27

requirements

between

a

location

or

object

and

a

farm

pond

or

28

privately

owned

lake.

Additionally,

distance

requirements

29

do

not

apply

to

an

anaerobic

digester

system

manure

storage

30

structure

constructed

with

a

secondary

containment

barrier

31

approved

by

DNR.

32

Division

V

of

the

bill

provides

separation

distances

between

33

an

anaerobic

digester

system

manure

storage

structure

and

a

34

residence,

bona

fide

religious

institution,

public

use

area,

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commercial

enterprise,

educational

institution,

or

public

1

thoroughfare.

Division

V

of

the

bill

allows

the

titleholder

2

of

the

land

benefiting

from

the

distance

requirements

to

waive

3

the

distance

requirements.

Division

V

of

the

bill

allows

the

4

state

or

political

subdivision

to

waive

distance

requirements

5

of

public

thoroughfares.

The

waivers

must

be

filed

with

the

6

county

recorder

before

becoming

effective.

7

Division

V

of

the

bill

allows

an

anaerobic

digester

8

system

manure

storage

structure

to

be

within

the

distance

9

requirement

from

a

residence,

educational

institution,

10

commercial

enterprise,

bona

fide

religious

institution,

city,

11

or

public

use

area

if

the

anaerobic

digester

system

manure

12

storage

structure

was

operating

in

conformance

with

distance

13

requirements,

but

was

brought

within

the

distance

requirement

14

due

to

the

expansion

or

construction

of

a

residence,

15

educational

institution,

commercial

enterprise,

bona

fide

16

religious

institution,

city,

or

public

use

area.

A

change

in

17

ownership

or

expansion

of

an

anaerobic

digester

system

shall

18

not

change

the

established

date

of

operation.

19

Division

V

of

the

bill

requires

an

anaerobic

digester

system

20

to

retain

all

digestate

produced

by

operation

between

periods

21

of

digestate

disposal

or

delivery

to

animal

feeding

operations

22

and

to

dispose

the

digestate

in

a

manner

that

will

not

cause

23

surface

water

or

groundwater

pollution.

24

Division

V

of

the

bill

requires

the

owner

of

an

anaerobic

25

digester

system

that

discontinues

the

use

of

the

operation

to

26

remove

all

digestate

from

related

anaerobic

digester

system

27

structures

used

to

store

digestate

within

six

months

following

28

the

date

that

the

anaerobic

digester

system

is

discontinued.

29

Division

V

of

the

bill

requires

materials

returned

to

an

30

animal

feeding

operation

for

land

application

be

accounted

for

31

in

the

animal

feeding

operation’s

manure

management

plan

or

32

nutrient

management

plan

and

that

the

owner

of

the

anaerobic

33

digester

system

must

satisfy

all

applicable

laws

for

proper

34

application

of

any

portion

of

the

digestate

not

returned

to

an

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animal

feeding

operation.

1

Division

V

of

the

bill

allows

an

anaerobic

digester

system

to

2

stockpile

materials

prior

to

digestation

or

dry

digestate

so

3

long

as

the

facility

stockpiles

the

materials

and

dry

digestate

4

in

compliance

with

restrictions

applicable

to

stockpiling

as

5

provided

in

division

V

of

the

bill.

Division

V

of

the

bill

6

prohibits

anaerobic

digester

system

stockpiles

from

commingling

7

with

animal

feeding

operation

stockpiles.

8

Division

V

of

the

bill

provides

separation

distance

9

requirements

between

a

stockpile

and

a

designated

area

that

10

includes

a

known

sinkhole,

a

cistern,

an

abandoned

well,

an

11

unplugged

agricultural

drainage

well,

an

agricultural

drainage

12

well

surface

inlet,

a

drinking

water

well,

a

designated

13

wetland,

or

a

water

source.

Special

separation

distance

14

requirements

are

provided

for

a

high-quality

water

resource,

an

15

agricultural

drainage

well,

or

a

known

sinkhole.

Division

V

16

of

the

bill

provides

special

separation

distance

requirements

17

between

a

stockpile

and

a

terrace

tile

inlet

or

surface

tile

18

inlet.

An

exception

allows

a

stockpile

to

be

located

closer

19

than

otherwise

required

from

these

water

sources

so

long

as

it

20

is

maintained

in

a

manner

that

will

not

allow

precipitation

21

induced

runoff

to

drain

from

the

material

or

dry

digestate.

22

Division

V

of

the

bill

also

provides

separation

distance

23

requirements

between

a

stockpile

and

a

residence,

bona

fide

24

religious

institution,

public

use

area,

commercial

enterprise,

25

or

educational

institution.

26

Division

V

of

the

bill

provides

that

a

stockpile

cannot

be

27

located

in

a

grassed

waterway.

The

stockpile

also

cannot

be

28

located

on

a

slope

of

a

certain

grade,

unless

efforts

are

taken

29

to

contain

the

stockpile

and

prevent

runoff.

30

If

the

materials

or

dry

digestate

are

not

stockpiled

on

31

karst

terrain,

division

V

of

the

bill

does

not

provide

any

32

requirements

so

long

as

the

materials

or

dry

digestate

are

33

stockpiled

for

15

days

or

less.

Otherwise,

division

V

of

the

34

bill

requires

a

person

to

comply

with

stockpiling

requirements

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or

file

a

monthly

inspection

report

with

DNR.

The

special

1

stockpiling

requirements

include

either

the

use

of

a

structure

2

or

the

use

of

an

impermeable

cover.

However,

if

the

stockpile

3

is

covered

on

a

long-term

basis,

it

must

be

sited

on

compacted

4

or

other

prepared

ground.

5

Division

V

of

the

bill

states

that

if

a

proposed

stockpile

6

is

located

on

potential

karst

terrain,

a

qualified

person

must

7

test

the

ground

in

conformance

with

requirements

described

in

8

division

V

of

the

bill

and

submit

a

soil

report

to

confirm

9

whether

the

proposed

stockpile

location

is

on

karst

terrain.

10

If

the

material

or

dry

digestate

is

stockpiled

on

karst

11

terrain,

there

must

be

a

separation

distance

between

the

bottom

12

of

the

stockpile

and

the

soluble

rock,

regardless

of

how

long

13

the

stockpile

is

located

at

that

location.

For

material

or

dry

14

digestate

that

is

stockpiled

for

more

than

15

days,

special

15

compliance

requirements

apply,

including

either

the

use

of

a

16

structure

or

an

impermeable

cover.

If

the

stockpile

is

located

17

at

that

location

on

a

long-term

basis,

it

must

be

sited

on

18

concrete.

19

Division

V

of

the

bill

requires

a

person

stockpiling

20

material

or

dry

digestate

to

comply

with

all

applicable

21

national

pollutant

discharge

elimination

system

permit

22

requirements

pursuant

to

the

federal

Water

Pollution

Control

23

Act.

24

Division

V

of

the

bill

requires

a

person

stockpiling

25

materials

or

dry

digestate

to

remove

the

dry

digestate

and

26

apply

it

in

accordance

with

the

provisions

of

division

V

of

the

27

bill

within

six

months

after

the

materials

or

dry

digestate

are

28

first

stockpiled.

29

Division

V

of

the

bill

directs

DNR

and

the

attorney

general

30

to

enforce

Code

chapter

459C

in

the

same

manner

as

provided

in

31

Code

chapter

459,

subchapter

VI.

A

person

who

violates

the

32

provisions

of

division

V

of

the

bill

for

which

the

alleged

harm

33

is

related

to

air

quality

shall

be

subject

to

the

same

penalty

34

as

provided

in

Code

section

459.602.

A

person

who

violates

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the

provisions

of

division

V

of

the

bill

for

which

the

alleged

1

harm

is

related

to

water

quality

shall

be

subject

to

the

same

2

penalties

as

provided

in

Code

section

459.603.

A

habitual

3

violator

of

the

provisions

of

division

V

of

the

bill

shall

be

4

subject

to

the

same

penalties

and

restrictions

as

provided

in

5

Code

sections

459.604

and

459.605.

Any

collected

civil

penalty

6

and

interest

on

a

civil

penalty

shall

be

credited

to

the

Iowa

7

nutrient

research

fund

created

in

Code

section

466B.46.

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