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HF 413

A bill for an act relating to damages incurred due to releases of carbon dioxide from liquefied carbon dioxide pipelines or carbon dioxide facilities and including effective date provisions.

2025-2026 Regular Session Introduced by Cindy Golding

Imposes strict liability on CO2 pipeline/facility owners for damages from releases within 25 miles, with standing for victims, 1-year claims, and lien priority in bankruptcy.

Introduced, referred to Judiciary.
#carbondioxide #pipelines #pollution #utilities
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Bill Summary · HF 413

Summary of HF 413 (Introduced Feb 13, 2025)

Overview

HF 413 proposes a new civil remedy related to damages from releases of carbon dioxide (CO2) from liquefied CO2 pipelines or CO2 facilities. The bill creates a broad, strict-liability framework for victims within a 25-mile radius of a release, detailing standing, claim timing, damages, and priority lien treatment, including in bankruptcy scenarios. The act is deemed of immediate importance and takes effect upon enactment.

  • Sponsor: Golding (primary)
  • Status: Introduced and referred to the Judiciary
  • Introduced: February 13, 2025
  • Section added: NEW Section 479B.34

Purpose and Intent

  • To provide a direct mechanism for victims of CO2 releases to obtain compensation for damages incurred or projected to be incurred.
  • To establish strict liability for owners of CO2 pipelines/facilities for damages resulting from CO2 releases.
  • To prioritize lien recovery for CO2 victims and protect potential lienholders in bankruptcy or receivership scenarios.

Key Provisions

  • Definitions

    • Owner: Any person who owns or operates a liquefied CO2 pipeline or CO2 facility, or who supplies CO2 to such a pipeline/facility.
    • Victim: Any person residing, traveling through, or visiting, or owning/leasing property, equipment, or livestock within a 25-mile radius of the release site.

  • Standing and Authority to Sue

    • Victims have standing to commence an action seeking compensation for damages arising from a CO2 release.

  • Time Limits

    • A victim must file a claim within one year after the cause of action accrues.

  • Liability and Damages

    • The owner is strictly liable for all compensatory and punitive damages arising from the release.

  • Lien Priority

    • Any judgment lien from a CO2 release action takes priority over conflicting security interests or liens, including those perfected prior to judgment.

  • Bankruptcy/Receivership Provisions

    • If the owner is in bankruptcy or receivership, the trustee/conservator/court must hold the owner’s assets in trust for the benefit of CO2 victim lienholders for one year.
    • This holds until the owner’s last day of controlling operations (or last day producing CO2 for transport/sequestration).

  • Effective Date

    • The act takes effect upon enactment (immediate importance).

Who Is Affected

  • Victims: Individuals or entities within 25 miles of a CO2 release site who incur or anticipate damages.
  • Owners: Operators or suppliers related to liquefied CO2 pipelines or CO2 facilities.
  • Creditors/Lienholders: Secured interests and those with preexisting liens affected by the new priority.
  • Bankruptcy/Receivership Parties: Trustees, conservators, or courts overseeing reorganizations or liquidations must manage asset protections for lienholders.

Procedural and Timeline Aspects

  • Initiation: Victims must file within one year of accrual.
  • Remedies: Strict liability for damages; potential for punitive damages.
  • lien priority: Judgment liens have enhanced priority over existing security interests.
  • Bankruptcy treatment: Temporary protective trust for lienholders for up to one year.

Potential Impacts and Considerations

  • Shifts risk to CO2 owners by imposing strict liability and punitive damage exposure.
  • Broad geographic scope (25-mile radius) may increase eligible victims.
  • Tight filing window (one year) creates a narrow window for pursuing claims.
  • The immediate effectiveness highlights urgency for owners to assess exposure and liability planning.
  • No specified monetary caps; punitive damages are permitted, potentially increasing compensation risk for owners.

Compiled from official sources — confirm details with the bill’s official record.

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