Iowa Senate Passes Bill Restricting Carbon Capture Pipelines

The Iowa Legislature has passed a bill that would impose stricter regulations on carbon capture and sequestration (CCS) projects, including prohibiting the renewal of permits for carbon dioxide pipelines, limiting pipeline use to 25 years, and increasing insurance requirements, which threatens the viability of the Summit Carbon Solutions pipeline project. This $8.9 billion, 2,500-mile pipeline aims to transport carbon emissions from ethanol plants across several Midwest states to underground storage in North Dakota, helping ethanol producers reduce carbon footprints and access new markets. The legislation also complicates the use of eminent domain, requiring companies to seek voluntary agreements with landowners and explore alternative routes, a move that has divided Iowa lawmakers and raised concerns about property rights. Ethanol industry groups like the Iowa Renewable Fuels Association and Iowa Corn Growers Association criticize the bill for undermining Iowa agriculture and competitiveness, emphasizing that CCS is crucial for expanding ethanol demand globally. Governor Kim Reynolds is currently reviewing the bill, with ethanol interests urging a veto to support the pipeline and the state's agricultural economy. The debate highlights tensions between protecting landowner rights and pursuing infrastructure projects vital for Iowa's agricultural and economic future.