DES MOINES, Iowa (IOWA CAPITAL DISPATCH) – A House subcommittee advanced a bill Thursday that would allow landowners to renegotiate damage claims and file complaints with the Iowa Utilities Commission, or court, for damages and yield losses due to pipeline construction.  Rep. David Young, R-Van Meter, sponsored the bill and said it was really about “the premise of you want to leave what you found … in the same condition if not better.”

Young specified that House Study Bill 691 was not related to any particular pipeline, but would provide “predictability” and “consistency” in the standards protecting landowners. The bill was supported by agricultural commodity groups including Iowa Corn Growers Association, Iowa Cattlemen’s Association, Iowa Soybean Association and the Iowa Farm Bureau Federation. Summit Carbon Solutions, a company seeking to build a carbon sequestration pipeline through Iowa, along with the Iowa Renewable Fuels Association, also registered in support of the bill.

Doug Struyk said some members of the Iowa Soybean Association, which he represented at the subcommittee meeting, are still dealing with yield losses from pipelines built close to a decade ago. The bill allows landowners to renegotiate damage claims for compensation with pipeline companies even if damages were apparent at the time of settlement, or it has been more than five years since a settlement was reached.

HSB 691 also allows landowners, rather than just county supervisors, to file complaints directly with the Iowa Utilities Commission. Landowners can also file claims in small claims or district courts for “violations of damage payment provisions” with the pipeline company.

Onnalee Gettler, a lobbyist for MidAmerican Energy Company, opposed the bill but offered an amendment to lawmakers that would “avoid unintended” legal outcomes of the bill text. Gettler said the ability for landowners to renegotiate claims past five years could lead to them reopening damage claims “in perpetuity,” and MidAmerican would like to see that language changed. She explained that part of the proposed amendment would also clarify the relationship between landowners and farm tenants to ensure a pipeline company is not required to compensate both landowners and tenants for the same parcel. Gettler said the utility company would support the bill if the amendment were adopted.

Rep. Charley Thomson, R-Charles City, chaired the subcommittee and said he intends to take a “closer look” at some of the language raised by MidAmerican. The Iowa Utility Association, American Petroleum Institute and Black Hills Energy were also registered against the bill, but did not speak at the hearing. Kevin Kuhle, speaking on behalf of the Iowa Farm Bureau Federation, said the language in the bill is supported by Farm Bureau policies set in 2022.

Under the bill, farmers could also seek compensation for things like lost or reduced yield, soil compaction, damage to irrigation systems and damage to soil or water conservation structures. Speakers and lawmakers on the committee noted that similar language has been brought up in the Legislature in the past, including in 2023 when a bill to restrict eminent domain for pipelines passed in the House.

The bill heads next to the House Commerce Committee.