Iowa House lawmakers consider bill prohibiting use of eminent domain for carbon pipelines

DES MOINES — Companies constructing carbon sequestration pipelines would not be able to use eminent domain to acquire land for their projects under legislation being considered by Iowa lawmakers — the first piece of legislation in what's expected to be a prominent topic during the 2026 session.

During a subcommittee meeting held two hours ahead of Gov. Kim Reynolds’ annual Condition of the State address, landowners, pipeline companies, agricultural associations and unions provided testimony on House Study Bill 507, which would prohibit the use of eminent domain for building carbon capture pipelines.

After a five-year debate in the legislature over balancing landowner rights and projects that companies and agriculture associations argue will enhance economic development, lawmakers have yet to come to a consensus and many in each chamber plan to address it in 2026.

Last year, the Iowa House and Senate passed legislation that would have defined in state law what constitutes public good for the use of eminent domain; required pipeline companies to carry a certain amount of insurance; prohibited pipeline renewal after 25 years; and constrained when and how pipeline companies can sue landowners, among other provisions.

But Reynolds vetoed the legislation on June 12, saying it went too far and threatened the state’s energy reliability, economy and reputation as a place that is welcoming to business.

During his address to lawmakers on the first day of session, House Speaker Pat Grassley said Republicans’ approach will be a “narrowly tailored” focus on eminent domain, but he did not lay out a specific proposal.

Senate Majority Leader Mike Klimesh, R-Spillville, plans to introduce a proposal early in the session allowing pipeline projects to amend their planned and approved routes in order to enter into voluntary easements with landowners and avoid using eminent domain.

House Study Bill 507's sponsor, Rep. Steve Holt, R-Denison, said the Iowa State Constitution only allows the use of eminent domain for public use, arguing that a project proposed by Summit Carbon Solutions does not fit that definition.

“The fundamental right of property is the birthright of every American and the use of eminent domain should be incredibly rare and must meet the constitutional requirement of public use,” Holt said. “Economic development is of profound importance, but it does not trump fundamental constitutional rights.”

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The project at the center of the debate is a 2,500-mile-long carbon sequestration pipeline planned by Summit Carbon Solutions to carry carbon from ethanol plants through Iowa, Minnesota, Nebraska and South Dakota to North Dakota, where it will be stored permanently underground.

Landowners in red shirts — the color adopted by the group to represent landowner rights — crowded a committee room at the Iowa Capitol to express support for the legislation.

Ahead of the subcommittee, the group gathered in the Iowa Capitol’s second-floor rotunda to say a prayer before lobbying their lawmakers.

During the subcommittee, Dan Tronchetti, a Greene County farmer, argued that the bill would be the best way to ensure Iowa landowners are shielded from pipeline companies acquiring their land.

“This is a simple constitutional question,” Tronchetti said. "Nowhere does it say eminent domain can be used for economic development. A carbon dioxide pipeline is not for public use; it is to transport waste product.”

Jake Ketzner, a lobbyist for Summit Carbon Solutions, said the legislation would eliminate new markets for Iowa ethanol and expressed his support for Klimesh’s proposal to widen the corridor to accommodate route adjustments.

“This bill would kill our project. Summit Carbon Solutions is focused on signing voluntary easement agreements and moving off landowners who do not want us,” Ketzer said.

Iowa ethanol producers warned the legislation could put future production — and new investment — at risk, particularly as farmers face a record corn crop and stagnant ethanol output.

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The Iowa Renewable Fuels Association said the bill would effectively block Iowa plants from accessing emerging low-carbon ethanol markets. Executive Director Monte Shaw said those markets are increasingly critical as corn prices have dropped and Iowa ethanol production has plateaued at about 4.6 billion gallons annually for the past three years, while national output has grown.

“This bill would essentially ban CO2 projects in Iowa while our neighboring states are moving forward,” Shaw said in a statement, arguing that carbon capture infrastructure is key to competing for new domestic and export demand, including sustainable aviation fuel and marine fuels. Shaw said using carbon capture technology across Iowa’s ethanol plants could unlock more than $3 billion in federal tax credits, while helping reduce emissions and attract private investment.

The warning comes the same week the U.S. Department of Agriculture reported a record corn harvest, highlighting the need to open up new markets for Iowa growers.

“Iowa farmers cannot afford, literally, to be cut out of the most exciting emerging demand for corn, ultralow carbon ethanol markets,” Shaw said in a statement. “With lower corn prices and stagnating demand, developing new markets is critical.”

Ethanol industry officials noted that states such as Nebraska, Illinois and North Dakota are moving ahead with plant expansions and carbon infrastructure, while Iowa risks losing future growth by restricting tools Iowa ethanol producers need to be compete in emerging markets.

The three-member subcommittee advanced the bill, with Holt and Rep. Charley Thomson, R-Charles City, signing on.

The third subcommittee member, Rep. Ross Wilburn, D-Ames, did not sign on, saying he would like to see more proposals before green-lighting the bill in front of the subcommittee on Tuesday.

“Given that we've been through a five-year process, I think it's important to say what is the willingness across the chamber, and what is the willingness with the governor, to end up with a different result that protects property rights and that also enhances the ability of economic development,” Wilburn said.

The bill could be heard in front of the full Iowa House Judiciary Committee as early as Wednesday, according to Holt.

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Erin Murphy and Tom Barton of The Gazette Des Moines Bureau contributed to this report.