Iowa lawmakers divided over CO2 pipeline authority

DES MOINES — As opponents of carbon dioxide capture pipelines continue to lobby lawmakers for restrictions on eminent domain, the prospect of legislative action on the projects this year is unclear.

Proposed pipelines to capture CO2 emitted at ethanol plants for underground storage have sparked controversy as environmentalists and landowners opposed to the use of eminent domain have lobbied to block their construction. The projects are backed by Iowa's ethanol and agricultural industries as a vital tool for boosting profits and breaking into new markets.

Earlier this month, Iowa House lawmakers advanced House File 2522 out of committee. The bill would allow landowners affected by an eminent domain proceeding to petition a court to determine their rights and the constitutionality of the eminent domain request.

The court would be able to determine, before the Iowa Utilities Board makes a final decision, whether the use of eminent domain to involuntarily take land is warranted by the proposed project. That decision could be appealed to higher courts.

Rep. Steve Holt of Denison, chair of the House Judiciary Committee, said it would make the process more fair for all parties.

“We also don't think that would be a bad thing for the energy companies as well, who might spend millions and millions of dollars only to find out at the end of the process that it wasn't constitutional,” Holt said.

The bill originally would have allowed one-fifth of either chamber of the Iowa Legislature to pause eminent domain proceedings, but that piece of the bill was removed in committee.

What are the pipelines proposed in Iowa?

Two pipelines are proposed in Iowa to capture CO2 produced at ethanol plants and store it in underground reservoirs.

Summit Carbon Solutions has proposed a five-state pipeline that would cross 721 miles in Iowa. The company has asked for eminent domain authority along the route of the project. The project is awaiting approval from the Iowa Utilities Board.

Another company, Wolf Carbon Solutions, proposes building a smaller pipeline covering five Eastern Iowa counties including Linn County. The company has said it does not intend to use eminent domain for its construction.

Summit has not taken a position on the House bill to allow court decisions over eminent domain, but Wolf Carbon Solutions has registered as opposed to it.

Opponents say eminent domain should not be used for projects that benefit a private company, and some environmental groups argue they are not an adequate solution for greenhouse gas emissions.

Summit has said the project will drive economic growth in Iowa and support one of its key industries. The project would include $1.6 billion in capital spending and support 258 jobs in the state by 2027, according to Summit.

Are eminent domain restrictions likely?

Though HF 2522 passed in the House Judiciary Committee, it has not been taken up for a floor vote and there is no companion bill in the Iowa Senate. The House has passed bills the last two sessions limiting the scope of eminent domain for carbon capture pipeline projects, but they have not received hearings in the Senate.

The issue has split both the Republican and Democratic caucuses, as competing interests from agriculture, labor, landowners and environmentalists have led to a wide range of positions on the issue.

House Minority Leader Jennifer Konfrst said the responsibility is with the Senate to join the conversation on the issue and take up the bill the House passed last year with majorities of both parties.

That bill would require a pipeline company to receive 90 percent of its route through voluntary easements before being granted eminent domain authority to force easements.

“Senate Republicans have chosen not to bring this up or address it in any way,” Konfrst said. “So it doesn't matter how many bills we pass out if the Senate Republicans and the governor aren't engaged in the conversation. It’s just more politics.”

Senate Majority Leader Jack Whitver, R-Grimes, said during a February appearance on Iowa PBS’s “Iowa Press” that he did not support the provisions that were eventually removed from the House bill, saying they would give power to a “super minority” of lawmakers.

He said his caucus has a wide range of positions on the issue. “And so, it's really a split caucus, which is why you haven't seen action to this point,” he said.

Activists want to regulate water usage, ease lawsuits

Opponents have been making weekly trips to the Capitol to urge lawmakers to enact stricter eminent domain restrictions.

Activists say they want a bill that would make it easier for entities and counties to ask for a pause in construction if a pipeline project gets approved by the Iowa Utilities Board, and stronger regulations on water usage for the projects.

Julie Glade, who owns land in Wright County along Summit Carbon Solutions’ route and has not signed an easement with the company, said she wants to see more action from lawmakers.

“I think what we need is some regulations, something to protect us from the eminent domain piece. The IUB is three people that can determine that eminent domain,” Glade said. “And we really need our senators and representatives to step up to try and protect us from three appointed people making that eminent domain decision.”