Iowa regulators approve Summit Carbon Solutions pipeline

DES MOINES — Iowa regulators approved an application Tuesday from Summit Carbon Solutions to build a carbon dioxide capture pipeline in the state, capping three years of proceedings and debate and marking the first major approval for the project that crosses into five states.

The Iowa Utilities Board, in a 507-page order approving the project, determined the pipeline would “promote the public convenience and necessity” and found Summit could be granted the right of eminent domain to involuntarily take land — with compensation — for the project. There are 859 remaining parcels of land along the route where owners have not signed voluntary easements, according to the order.

"The momentum will continue as we prepare to file our South Dakota permit application in early July," said Summit Carbon Solutions Chief Executive Officer Lee Blank in a statement Tuesday. "We look forward to engaging with the state throughout this process and are confident in a successful outcome."

Opponents of the pipeline, who have resisted the use of eminent domain for its construction, said Tuesday they would appeal the decision to a court.

The proposed pipeline would cover more than 680 miles in 29 Iowa counties. Summit plans to connect to 57 ethanol plants in Iowa to capture CO2 emissions and shuttle them to an underground reservoir in North Dakota. The pipeline would have the capacity to move 18 million metric tons of carbon dioxide every year, Summit has said.

Iowa corn growers and ethanol producers have backed the project, saying it will be a boon to the corn market by taking advantage of tax credits and allowing ethanol to be sold in low-carbon fuel markets. Advocates also say decarbonization could allow ethanol to be used in sustainable aviation fuel.

“Today’s decision creates monumental opportunities for Iowa farmers faced with falling prices and growing stockpiles,” said Iowa Renewable Fuels Association Executive Director Monte Shaw in a statement. “Whether you think it’s smart or silly, the world’s largest airlines want to decarbonize their fuel. Carbon capture and sequestration gets Iowa ethanol into that market, potentially providing a generational boost to Iowa’s economy. This is just one of several potential new markets.”

While the order grants approval of Summit’s application, it did not immediately grant a permit to the company. The board asked that Summit refile and revise a number of documents before receiving the permit. The order also requires that Summit receive approval in South Dakota and North Dakota before beginning construction.

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Pipeline opponents promise appeal

The project has encountered stark resistance from environmentalists, who argue it would not seriously address greenhouse gas emissions, and from landowners opposed to the use of eminent domain. Opponents argue the project does not “promote the public convenience and necessity,” and therefore should not be granted the authority.

Opponents said Tuesday they would appeal the decision, vowing to continue fighting the pipeline in court. Iowa law allows parties to ask the board for a rehearing after a final order is granted. If the rehearing is denied, a party can appeal to a district court.

Wally Taylor, a lawyer for the Sierra Club, and Brian Jorde, a lawyer representing landowners, said they would follow that route.

“We will take this to district court,” Taylor said. “We think we made an excellent record, with a lot of evidence, and the board simply conducted a completely unfair proceeding, and the record will show that.”

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Jorde said there are many more regulatory obstacles for Summit before it receives full approval for the project, and the opponents would continue to oppose it at each one.

"It's just one small thing in a maze, in a track and field event full of hurdles that they have to get over," he said. "So we're just going to keep our heads down and move forward as we always planned."

House leader floats eminent domain changes

Responding to landowner concerns, state lawmakers have attempted to curtail the eminent domain authority of the projects. Over the last three years, the Iowa House passed three largely bipartisan measures to limit or regulate eminent domain for the projects, but the bills died in the Iowa Senate.

In a statement Tuesday, Iowa House Speaker Pat Grassley, a Republican from New Hartford, said landowner rights are a top priority of House Republicans and said the Legislature would review Iowa’s eminent domain laws.

“This just further confirms what we already knew — that the Legislature must conduct a comprehensive review and update the state's eminent domain laws. We will seek feedback from Iowans on the best way forward and in the meantime, I stand ready to assist my constituents however I can,” Grassley said.

Senate Republican leaders have said their members are split on proposed regulations.

A spokesperson for Gov. Kim Reynolds, a Republican, did not respond to a request for comment. Reynolds previously has expressed support for carbon dioxide capture’s benefits to Iowa agriculture and said it should be balanced with landowner rights.

Summit must meet conditions

The Iowa approval marks the first state-level approval of the project, which is proposed to cross Iowa, Minnesota, Nebraska, South Dakota and North Dakota.

The order states Summit must receive approval in South Dakota and North Dakota before beginning construction. For portions of the pipeline that connect to Minnesota and Nebraska, the company must receive permits there before construction.

The Iowa regulators also said Summit must obtain $100 million in insurance for the project, and that it must provide construction updates every 30 days.

Responding to safety concerns over the potential for a CO2 leak, the board directed Summit to purchase monitors for all emergency response vehicles in affected communities and provide grants for cities to purchase emergency equipment.

While all three members of the Iowa Utilities Board agreed on the broad points of the order, two members dissented on certain points.

Chair Erik Helland disagreed with the portion requiring Summit to receive approval from other states before construction. "I believe an agency should both stay within its jurisdiction and exercise such authority as it is instructed to exercise by law," he wrote.

Board member Joshua Byrnes opposed the approval of one segment of the proposed footprint that connects an ethanol plant in Fremont County to a plant in Ida County. He said the 123 miles of pipe, impacting more than 100 properties, to connect one plant to the rest of the line was not "just and proper."

Second pipeline under consideration

Wolf Carbon Solutions, which in 2022 proposed building a CO2 pipeline from ADM plants in Cedar Rapids and Clinton to a sequestration site in Illinois, has not refiled with the Illinois Commerce Commission after withdrawing its earlier permit application in November. At that time, Wolf leaders said they planned to file a new application in “early 2024,” but a search of the ICC website Tuesday showed just the closed application.

Wolf’s application with the Iowa Utilities Board still is open.

When Wolf applied for the Iowa permit in February 2023, the company said it would not use eminent domain to acquire easements to build 95 miles of pipeline in Iowa.

Erin Jordan of The Gazette contributed to this report.