Iowa Senate Passes Controversial CCS Pipeline Bill

The Iowa Senate voted late Monday to pass House File 639, a bill described by a trade association as essentially banning carbon capture and sequestration (CCS) pipeline projects throughout the state.

The legislation received 27 votes in favor, limiting the use of eminent domain for these projects—a significant move reported by the Iowa Capital Dispatch.

Key Provisions of the Bill

According to sources, House File 639 introduces several critical changes, including:

• Revising the definitions of common carriers.
• Increasing insurance requirements to cover property damages and reimburse landowners for heightened premiums due to pipelines.
• Setting new requirements for the Iowa Utilities Commission (IUC).
• Expanding the list of individuals and organizations allowed to intervene in IUC proceedings.

Governor Kim Reynolds will now decide whether to sign or veto the bill. Her office stated, “The governor is still reviewing the bill.”

According to Iowa’s Legislative Service Agency, if the governor neither signs nor vetoes a bill within three calendar days, it automatically becomes law. For bills received during the final three calendar days of the session, the governor has 30 days to act.

Mixed Reactions from the Agriculture Community

Responses from agricultural and biofuel sectors have been largely muted. The Iowa Department of Agriculture and Land Stewardship, along with the Renewable Fuels Association, declined to comment, while many other groups have yet to issue statements.

Concerns from the Iowa Renewable Fuels Association (IRFA)

The IRFA, working on behalf of Iowa’s biofuel producers, expressed deep disappointment over the bill. They contend that the new permitting restrictions effectively render CCS projects economically unviable, even with voluntary land easements.

“After enduring the largest two-year income drop in history, farmers are desperate to find new markets. CCS is the key to unlocking massive new demand for ethanol and corn,” stated IRFA Executive Director Monte Shaw.

Shaw emphasized, “If this legislation goes into effect, there will be real economic consequences as states like Nebraska and North Dakota advance with CCS while Iowa remains stagnant.”

Impact on Iowa Corn Growers Association (ICGA)

The ICGA, representing corn producers across all 99 counties, also criticized the bill. ICGA President Stu Swanson stated, “The decision to ban CCS projects cuts off our ability to tap into markets for ultra-low carbon ethanol and puts Iowa corn growers at a disadvantage.”

Swanson concluded, “Iowa has long been known as the corn state, and this decision impacts our ability to stay competitive. Our farmers deserve increased market access, not more barriers.”

As the state awaits Governor Reynolds’ decision, the future of CCS projects in Iowa hangs in the balance, highlighting the ongoing tension between agricultural interests and legislative actions.

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