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IA HF240

IA HF240
A bill for an act relating to insurance requirements for the granting of a hazardous liquid pipeline permit.(See HF 639.)


summary

Introduced
02/06/2025
In Committee
02/06/2025
Crossed Over
Passed
Dead

Introduced Session

91st General Assembly

Bill Summary

This bill relates to insurance requirements for the granting of a hazardous liquid pipeline permit. The bill requires an applicant for a hazardous liquid pipeline permit to submit evidence to the Iowa utilities commission of a surety or insurance policy that ensures payment of all damages that may result from the construction or operation of the hazardous liquid pipeline before a permit may be granted by the commission. The surety or insurance policy must be sufficient to cover losses and injury resulting from construction of the hazardous liquid pipeline and from any discharge of content from the pipeline. The surety or insurance policy must also be sufficient to cover any person’s increased insurance costs, or the person’s inability to obtain insurance, due to the construction or presence of the pipeline. The bill requires the pipeline company to either purchase insurance on behalf of or reimburse any person who experiences increased insurance premiums or the inability to obtain insurance due to the construction or presence of the pipeline.

AI Summary

This bill addresses insurance requirements for companies seeking a hazardous liquid pipeline permit in Iowa. The bill requires pipeline permit applicants to provide evidence of a surety or insurance policy that fully covers potential damages before the Iowa utilities commission will grant a permit. The insurance must protect against three key areas of potential harm: (1) losses from any negligent or intentional discharge of pipeline contents, (2) injuries and property value reductions caused by pipeline construction or content discharge, and (3) insurance-related impacts on nearby property owners. Specifically, if local property owners find themselves unable to obtain insurance or face increased insurance premiums due to the pipeline's presence or construction, the pipeline company must either purchase insurance on their behalf or directly reimburse them for the additional insurance costs. This legislation aims to ensure that pipeline companies, not local landowners, bear the financial risk associated with potential pipeline-related damages and insurance complications.

Committee Categories

Justice

Sponsors (19)

Last Action

Withdrawn. H.J. 871. (on 03/31/2025)

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