In Des Moines, Iowa, a proposed carbon-capture pipeline covering several Midwestern states is encountering potential obstacles in Iowa as a group of a dozen Republican state senators push for the issue to be voted on.
Summit Carbon Solutions, the company behind the ambitious $8.9 billion, 2,500-mile pipeline project, might need to alter its plans after South Dakota’s governor enacted a prohibition against the use of eminent domain for acquiring land specifically for carbon dioxide pipelines.
The situation in Iowa has grown more complex as 12 Republican state senators have expressed their intent not to approve any budget—something the Legislature is required by law to finalize—until the pipeline bill is presented for discussion.
In a joint letter, these senators noted that “The people of South Dakota emphatically stated that eminent domain will never be granted for this pipeline to cross South Dakota, and it is past time for Iowa to do the same,” emphasizing that for them, “addressing eminent domain is more important than the budget or any other priority for the 2025 session.”
It remains uncertain whether their call will be heeded or what the contents of a chamber-approved bill might include, given the spectrum of opinions held by the 34 Senate Republicans who maintain a supermajority.
The proposed pipeline is designed to transport carbon emissions from ethanol plants located in Iowa, Minnesota, Nebraska, North Dakota, and South Dakota, to be permanently stored underground in North Dakota.
By decreasing the carbon emissions from these plants, the pipeline aims to reduce their carbon intensity scores, boosting their competitiveness within the renewable fuels market. Moreover, the project would enable both ethanol producers and Summit to access federal tax incentives.
While the project has secured permit approvals in Iowa, Minnesota, and North Dakota, it faces varied legal challenges and saw its application denied in South Dakota last month.
“Summit Carbon Solutions has invested four years and nearly $175 million into voluntary agreements in Iowa, finalizing over 1,300 agreements with landowners and securing 75% of the Phase One route,” stated Summit spokesperson Sabrina Zenor. “We remain dedicated to the project’s completion, committed to Iowa, and steadfast in cooperating with legislators, even those harboring reservations.”
Despite a traditional allegiance to the ethanol industry, some Midwest farmers have expressed vehement opposition to the pipeline since its inception, worrying about its placement on or near their land and raising concerns about pipeline safety.
In South Dakota, a series of eminent domain legal actions to acquire land sparked widespread opposition, culminating in the issue being addressed at the gubernatorial level. A review of hundreds of cases by Lee Enterprises and others revealed extensive legal efforts by the company to advance the project.
Iowa state Sen. Kevin Alons indicated that the senators advocating for the issue are seeking an amendment akin to South Dakota’s recently enacted law. However, it remains to be seen what elements would be part of a finalized version or whether Republican Governor Kim Reynolds would endorse it.
“A number of Republican Senators are working on policy surrounding eminent domain and pipeline issues and I am optimistic we will find a legislative solution,” Senate Majority Leader Jack Whitver commented.
Numerous proposals have already been forwarded by the Iowa House to the Senate. During House floor debate, state Rep. Steven Holt expressed disappointment over the Senate’s previous inaction on the matter.
“We’re going to fight for it here because it’s the right thing to do, regardless of whether the Senate’s gonna pass it or not,” Holt affirmed.
He further criticized Summit, saying, “You chose to try to trample on the rights of citizens of Iowa and South Dakota, and now the chickens are coming home to roost.”