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.

Iowa House File 413 (HF413) is a proposed law that allows individuals within a 25-mile radius of a carbon dioxide (CO₂) release from pipelines or facilities to sue the responsible company for damages. The company is held strictly liable for all compensatory and punitive damages, meaning they are responsible regardless of fault. Claims must be filed within one year of the incident. If the company goes bankrupt, its assets are held in trust for potential victims for one year after it ceases operations. The law would take effect immediately upon enactment.

Supporters of HF413 argue that it provides necessary protections for communities near CO₂ pipelines and facilities. By holding companies strictly liable, the bill ensures that victims can receive compensation without the burden of proving negligence. This accountability may encourage companies to implement stricter safety measures, thereby preventing future incidents. The immediate effect of the law is seen as a proactive step in safeguarding public health and property.

Critics of HF413 contend that imposing strict liability on companies could deter investment in carbon capture and storage projects, which are vital for reducing greenhouse gas emissions. They argue that the one-year statute of limitations may be insufficient for victims to assess and file claims, especially for long-term health effects. Additionally, the requirement to hold assets in trust during bankruptcy could complicate financial restructuring, potentially leading to prolonged legal battles and delayed compensation for victims.