Iowa House passes bill allowing court review of pipeline eminent domain requests

DES MOINES — Iowa House lawmakers passed their latest measure Thursday to rein in eminent domain use for carbon dioxide capture pipelines, passing a bill that would allow individuals or companies to ask a court to review whether forced easements are warranted in a pending pipeline case.

Supporters said it would expand the rights of landowners and clear up constitutional questions about the eminent domain authority for hazardous liquid pipelines.

The bill came out of opposition to the construction of underground pipelines proposed in the state that would capture carbon dioxide emitted at ethanol plants and store it underground out of state, taking advantage of lucrative tax credits.

Summit Carbon Solutions, the company furthest along in the process, is awaiting a decision from the Iowa Utilities Board on its permit application for a pipeline involving five states, including more than 700 miles in Iowa. Summit has asked regulators to grant it eminent domain authority to take land along the route where it has not obtained voluntary easements. Wolf Carbon Solutions is proposing a much smaller pipeline in Eastern Iowa, including Linn County, but the company has said it does not plan to use eminent domain for its construction.

House File 2664 would allow either a landowner or a company applying for a permit from the Iowa Utilities Board to ask a court to review whether eminent domain is warranted in that situation.

The bill passed in the House 86-7. All present Democrats voted in favor, and seven Republicans voted no. Republican Rep. Megan Jones, R-Sioux Rapids, whose family owns land along the Summit pipeline’s proposed route, recused herself.

Rep. Charley Thomson, R-Charles City, the bill’s floor manager, said there is a legitimate legal question about whether eminent domain is allowed for the projects. He said the bill would allow the questions to be cleared up without a lengthy legal process.

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“Instead of having everything in suspense, waiting for the IUB to finish doing its job, this bill permits any affected party, including Summit, or any pipeline proponent, to file for declaratory action to get a ruling on the constitutionality of the question at hand,” Thomson said.

The bill would also allow a person or group to ask a court to review the board’s approval or denial of a pipeline permit request without paying a bond.

House lawmakers have taken measures the last two years attempting to slow down the construction of the C02 pipelines, passing bills that would set a moratorium on new projects and require companies to obtain 90 percent of the route voluntarily before receiving eminent domain authority. Both of those measures failed to pass the Senate.

Spokespeople for Summit and Wolf did not immediately respond to a request for comment. Summit is registered against the bill.

Jess Mazour, the conservation program coordinator for the Sierra Club Iowa Chapter, said in a statement that the bill would level the playing field for landowners.

"We've been at the capitol every single week for 3 years. It's time the Senate gets its priorities straight and quit kowtowing to Summit, Wolf, and (Summit Chief Executive Officer) Bruce Rastetter,” Mazour said.

Supporters of the projects, including the Iowa Renewable Fuels Association and other agriculture groups, have said the pipelines are vital to Iowa agriculture's continued success as more states and countries demand low-carbon fuels.

In an appearance last week on “Iowa Press” on Iowa PBS, Sen. Dan Dawson, R-Council Bluffs, said he was not sure if the bill would come up in the Senate. Dawson is chair of the Senate Ways and Means Committee.

“I think it's a unique way going about it, maybe, compared to some proposals last year, and it's no doubt a priority for people in the House, as well as some people in the Senate too,” he said. “…I think it's definitely something to take a look at.”