Reynolds, in response to DOJ, says her energy policy aligns with Trump’s

DES MOINES — Iowa Gov. Kim Reynolds, in a letter to the federal justice department Wednesday, assured the administration that she shares President Donald Trump’s goals for energy production.

Reynolds wrote the letter in response to a letter from the U.S. Department of Justice that expressed concern with a right of first refusal provision in Reynolds’ proposed state energy policy legislation.

The DOJ letter, written by Assistant U.S. Attorney General and Trump appointee Abigail Slater in response to questions from a pair of Republican Iowa legislators, warned that the right of first refusal provision could stifle competition and potentially raise prices and lower the quality of service for Iowa electricity customers.

Under a right of first refusal law, utility companies that already have facilities and transmission lines in Iowa would have the right to construct expansion projects for electricity infrastructure.

The six-page DOJ letter cited two examples in which Slater said the absence of right of first refusal policies led to lower project costs. Slater’s letter also referenced a federal court ruling regarding a right of first refusal law in Texas.

Reynolds’ two-page response laid out what she called “factual context” for the three projects in Slater’s letter. Reynolds said one project encountered delays and then electrical line failure, while another went over budget and resulted in higher costs to consumers. And she said her right of first refusal language is similar to a Minnesota law, which she said was upheld by the same federal appeals court that covers Iowa.

In her letter, Reynolds touted Iowa’s energy production, including through renewable sources, and said her legislative proposal is designed to build on that foundation and help the state remain adaptable in the future.

And she attempted to assure the justice department that her energy policy aligns with Trump’s.

“As governor, I am committed to advancing a forward-thinking, all-encompassing energy strategy that ensures affordable energy for consumers and sets the stage for future economic growth,” Reynolds wrote.

“I fully support the president’s goal of ensuring a reliable, diversified, and affordable energy supply,” Reynolds added. “(Trump’s) executive order also emphasizes the timely delivery of energy infrastructure. In Iowa, implementing (right of first refusal) is the most effective way to ensure that federally registered transmission line projects are built efficiently and reliably.”

Reynolds’ proposed energy legislation appears in the form of twin bills, one each in the Iowa Senate and House. Senate File 585 and House File 834 were each approved by the committees on commerce in their respective chambers. Another legislative hearing was held Monday on the Senate bill in that chamber’s budget committee.

One of the bills still must be approved by the full Iowa House and Senate before it could be sent to Reynolds for her approval.

Comments: (515) 355-1300, erin.murphy@thegazette.com

Get the latest Iowa politics and government coverage each morning in the On Iowa Politics newsletter.

Download: 2025.04.02_ASlaterDOJ_GovReynolds_Letter.pdf