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HF 639

A bill for an act relating to hazardous liquid pipelines, including common carrier requirements, proceedings under the Iowa utilities commission, including commission member attendance at hearings and informational meetings, including allowing certain persons to intervene in such proceedings, including sanctions on intervenors in contested cases, and permit, permit renewal, and operation limitations, and including effective date and applicability provisions.

2025-2026 Regular Session

HF 639 limits eminent-domain power for hazardous-liquid pipelines to common-carrier firms, requires proof of public use, and tightens permits and landowner protections.

Vetoed by Governor.
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WeVote Research Nonpartisan
Bill Summary · HF 639

Summary — HF 639 (2025): Hazardous liquid pipelines, eminent domain, utilities commission procedures

Status: Passed both chambers (House 85–10; Senate 27–22), enrolled and sent to Governor; vetoed by Governor on 2025-06-11.

Purpose
- To regulate the construction, permitting, and eminent-domain authority for hazardous liquid pipelines (including liquefied CO2 pipelines and aboveground “merchant lines”), to clarify when a pipeline operator may exercise condemnation, and to add procedures and protections for landowners and for proceedings before the Iowa Utilities Commission (IUB).

Key provisions (by topic)

  1. Definitions and limits on condemnation (Section 6A.21 and related)
  2. Revises definitions relevant to condemnation of agricultural land, including:
    • “Agricultural land” (tracts of ≥10 acres and recent agricultural use).
    • “Aboveground merchant line” (merchant line excluding underground merchant lines).
    • “Common carrier” — defined as a commercial enterprise that transports hazardous liquids for unaffiliated shippers who retain or sell the commodity; a FERC common-carrier determination is controlling.
  3. Clarifies that condemnation for “private development purposes” is not a public use/purpose unless the landowner consents.
  4. The limitation on treating private development as a public use is retained broadly but exceptions are specified for roads, railways, airports, utilities under IUB jurisdiction — explicitly carved out for hazardous liquid pipelines carrying liquefied CO2 and aboveground merchant lines.

  5. Eminent domain and permitting for pipelines (Section 479B.16 & applicability)

  6. A pipeline permittee may be granted eminent-domain rights for right-of-way not exceeding 75 feet and up to one acre for stations/equipment, with the commission able to grant more only on sufficient evidence demonstrating necessity.

  7. New rule: eminent-domain authority is available only to pipeline companies that qualify as a “common carrier” (per the bill’s definition).

  8. Burden of proof: where land is acquired under a grant in chapter 479B, the acquiring agency must prove by clear and convincing evidence that the use is a “public use/purpose/improvement.”

  9. Effective date: provision takes effect upon enactment and applies to condemnation proceedings with applications filed on or after that date.

  10. Iowa Utilities Commission procedures and intervention

  11. Adds an attendance rule: for hearings initiated under chapter 476, a majority of IUB members must be present during any live testimony; hearings pause if a majority is not present.

  12. Extends the attendance rule to chapter 476A proceedings.

  13. Creates procedural provisions allowing persons (including government entities) to file written objections to projects where eminent domain is sought; objections generally must be filed at least five days before hearing (with commission discretion to allow later filings and permit response time).

  14. Some amendment drafts would have allowed certain parties to intervene as of right (e.g., legislators, elected local officials, and “any resident with a minimally plausible interest”), though multiple amendment versions were filed/withdrawn; the enrolled/reprinted text reflects competing amendment activity.

  15. Landowner protections, restoration, and liabilities (chapter 476A additions in various amendments)

  16. Provisions appearing in amendment drafts require:

    • Repair/replacement liability for drainage tile damaged by facility construction, including full replacement costs and topsoil restoration.
    • Commission rulemaking to set land restoration standards (topsoil management, rock removal, deep tilling to relieve compaction, restoration of terraces/erosion controls, revegetation).
    • Reasonable access rights to transmission lines with compensation for crop/land damages and procedures for crop-yield damage renegotiation.
  17. Those protections were prominent in several amendment packages considered by committees and the Senate.

  18. Insurance / financial responsibility (appears in reprinted/committee language)

  19. Draft language requires pipeline permit applicants to secure surety or insurance sufficient to cover damages from construction or releases and to cover increased insurance costs (or inability to obtain insurance) experienced by nearby persons; the pipeline company must purchase insurance on behalf of, or reimburse, affected persons.

Timelines and procedural notes
- IUB must issue a decision on an application requesting eminent domain no later than one year after the request is received (language present in amendment packages).
- The bill underwent many amendment filings and withdrawals in the Senate; several broad amendment packages addressed IUB hearing rules, land restoration, intervenor rights, and eminent-domain limitations.
- Final enrolled bill was transmitted to the Governor and subsequently vetoed (2025-06-11).

Who is affected
- Landowners and farmers (particularly owners of agricultural land ≥10 acres) — property rights, restoration standards, drainage tile repairs, and compensation processes.
- Pipeline companies and utilities — limits on eminent-domain authority unless qualifying as common carriers, permit conditions, insurance obligations, and possible additional restoration obligations.
- Local governments and elected officials — procedural participation rights and potential project objections.
- Iowa Utilities Commission — new attendance and procedural requirements for hearings; new duties for timely decisions and rulemaking on land restoration.

Notes on legislative history
- HF 639 originated in the House (introduced 2/28/2025), passed the House with several adopted amendments (H-1185, etc.), was amended multiple times in the Senate (many amendments filed, withdrawn, or rejected), enrolled, and vetoed by the Governor on 2025-06-11. Several provisions described above reflect amendment language considered during floor and committee action; specific final statutory text would have depended on the exact amendment package enrolled prior to the veto.

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

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