Iowa Senate advances bill prohibiting eminent domain for CO2 pipelines, leader plans to amend with own proposal

DES MOINES — Iowa Senate lawmakers advanced a House-passed bill prohibiting eminent domain for carbon capture pipelines, with plans from a top Senate Republican to amend the legislation with his own proposed plan, likely extending a heated debate on the issue.

Iowa Senate Majority Leader Mike Klimesh, who chaired the subcommittee considering the bill, said he planned to amend the legislation, House File 2104, with language from his own proposal released on Jan. 20.

Klimesh, a Republican from Spillville, brought the bill to subcommittee Tuesday morning, less than a week after it was passed in the House, noting that he is listening to input from all sides as he shepherds the legislation through the Senate. He added that Iowans will have the opportunity to give input during a separate subcommittee for his proposed legislation.

“This bill gives both landowners and the CO2 pipeline companies like Summit what they've been asking for all along. It gives landowners the right to choose what happens on their property,” Klimesh said. “I'm not not listening to you, folks. I am. I listen to you all the time, and that's why we were very careful in trying to craft what will be amendments presented on this bill in committee.”

Klimesh’s proposal, which he plans to amend the bill with, would allow hazardous liquid pipeline companies to alter planned and approved routes to enter into voluntary easements with landowners and avoid using eminent domain, if they wished.

It would also require carbon pipeline companies to “diligently exhaust” all alternatives and present “clear and convincing” evidence that they did so before requesting authorization by the Iowa Utilities Commission to use eminent domain.

Democratic Iowa state Sen. Janet Petersen, of Des Moines, who sat on the subcommittee, said she supports legislation banning the use of eminent domain for hazardous liquid pipelines, but didn’t sign on to advance the bill without knowing whether it would be amended with Klimesh’s proposal at the committee level, calling the move a “bait and switch.” She questioned Klimesh on why the subcommittee was held early in the morning in a small committee room, which members of the public and lobbyists packed into.

“My main concern is again, asking you, Senator (Klimesh), what your intent is with this piece of legislation, and if you plan to run another piece of legislation, if Iowans will have the opportunity to be able to participate in the legislative process from start to finish,” Petersen said.

Klimesh said the legislation would balance the rights of landowners while creating new ethanol markets for struggling Iowa farmers as corn prices drop.

In an interview on Iowa PBS’s Iowa Press last week, Klimesh said he plans to “floor manage” or lead the pipeline and property rights legislation being put forth by Senate Republicans through its legislative process — a role rarely undertaken by leaders in either chamber of the Iowa Legislature.

Iowa state Sen. Mike Bousselot, a Republican from Ankeny who managed the pipeline policy and property rights bill preferred by Senate Republican leadership last year, said lawmakers need to do something to address the issue this session.

“We have to do something this session to protect landowners and landowner rights. We have to do that,” Bousselot said. “We also have to make sure that we're not impeding on critical infrastructure and development and jobs that are critical to our state, that are critical to rural communities, that are critical to Iowa workers. I want to find a balance in those goals.”

Bousselot is a previous head of external relations for Summit Agricultural Group, which owns Summit Carbon Solutions, the company that has been approved by state regulators to construct a carbon dioxide pipeline in Iowa.

Klimesh and Bousselot signed on to advance the bill to the full Iowa Senate Commerce Committee, where it is slated for consideration on Wednesday, Jan. 28.

Balancing property rights and pipeline projects

Multiple groups, including the Iowa Renewable Fuels Association and the Iowa Corn Growers Association, opposed the legislation as it passed the House, saying Iowa’s current permitting process for acquiring private land is “designed to create confrontation,” and eminent domain is necessary in some cases.

The groups, however, back Klimesh’s proposed plan to widen the pipeline corridor, arguing that it would help create markets for corn growers in the state, including for sustainable aviation fuel and enhanced oil recovery.

“Right now, you basically have to throw a dart at the wall when you're proposing a route and hope that all the landowners along it are supportive,” Colin Gorton, representing the Iowa Renewable Fuels Association, said. “We're in favor of opening up Iowa's permitting process a little bit to allow companies to go out and talk to landowners, not negotiate."

Multiple labor unions said the legislation would stifle pipeline projects that create union jobs in the state.

Richie Schmidt, representing Laborers’ Local 177, said 2,000 jobs would be created, half of which would come from the union, by a proposed Summit Carbon Solutions CO2 pipeline running through Iowa.

Regulators on the Iowa Utilities Commission in 2024 approved a permit for the Iowa section, including granting Summit eminent domain powers.

“For five years, we've been waiting for this project to be approved, and always see this. This is the same bill that's being introduced year after year after year, it doesn't go anywhere,” Schmidt said. “Workers are suffering. Workers are not getting to work on this project. We've been looking forward to going to work on this project.”

Landowner activists backed the bill, arguing that protecting landowners from the use of eminent domain wouldn’t stifle pipeline projects.

“Nothing in this bill prevents or prohibits construction of a carbon capture pipeline,” Peg Rasmussen, a landowner from Montgomery County, said. “What is in this bill is private property rights protection from the heavy hand of government.”

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Shelby County landowner Cynthia Hansen said she understands the importance of job creation and economic development, but said companies can still find ways to advance their projects without seizing private land.

“Labor jobs are important, and I understand that, and I don't, you know, I don't want you guys losing jobs,” Hansen said. “But farmers are businesses too, and we have jobs. We want our jobs. We want our land safe, to do our jobs.”

Gazette Des Moines Bureau Chief Erin Murphy contributed to this report.