The bill establishes new insurance requirements for applicants seeking a hazardous liquid pipeline permit in Iowa. Before a permit can be granted, the applicant must provide evidence of a surety or insurance policy that adequately covers all potential damages resulting from the pipeline's construction and operation. This includes coverage for losses related to any negligent or intentional discharge from the pipeline, injuries to affected properties, and any increased insurance costs or inability to obtain insurance due to the pipeline's presence.

Additionally, the bill mandates that if any individual is unable to secure insurance or faces higher premiums as a result of the pipeline, the pipeline owner is responsible for either purchasing insurance on their behalf or reimbursing them for the increased costs. This provision aims to protect property owners and ensure that they are not financially burdened due to the pipeline's construction and operation.