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 arising from the construction and operation of the pipeline. This includes coverage for losses related to negligent or intentional discharges from the pipeline, injuries to affected properties, and any increased insurance costs or inability to obtain insurance for individuals impacted by the pipeline's presence.

Additionally, the bill mandates that if any person is unable to secure insurance or faces higher premiums due to 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 individuals and property owners from financial burdens associated with the pipeline's construction and operation.