South Dakota Governor Larry Rhoden signed a bill Thursday (03.06) banning the use of eminent domain for carbon pipelines, which Sierra Club of Iowa Attorney Wally Taylor says should stop Summit Carbon Solutions from building its carbon pipeline in Iowa.
The Iowa Utilities Commission (IUC) approved a permit for the Iowa portion of Summit’s pipeline on the condition they also get permits in the Dakotas before they start construction. The IUC’s decision also opens the door to Summit using eminent domain in Iowa, but Taylor says the company likely needs it to build in South Dakota, too.
Taylor says their focus continues to be on getting Iowa lawmakers to block the use of eminent domain for carbon pipelines here.
Landowners opposed to carbon pipelines and the Sierra Club Iowa Chapter will hold a Carbon Pipeline Opposition Rally at the Capitol Tuesday (03.11) to call on the Iowa Senate to pass a pipeline bill.
A spokesperson for Summit issued this statement: “It’s very unfortunate that, despite our approvals in Iowa, North Dakota, and Minnesota, South Dakota changed the rules in the middle of the game. This kind of regulatory uncertainty creates real challenges, not just for our project, but for the ethanol plants in South Dakota that now face a competitive disadvantage compared to their counterparts in neighboring states. While this presents obstacles, our project moves forward in states that support investment and innovation, and we will have more news on that soon.”
Eminent Domain Bills Aimed at IUC Advance in Iowa House
The Iowa House Judiciary Committee has advanced bills, including legislation led by State Representative Charley Thomson of Charles City, to block hazardous liquid pipelines carrying carbon dioxide from the use of eminent domain.
Two bills also advanced granting rights to intervene in Iowa Utilities Commission (IUC) proceedings, which GOP lawmakers have done against the case of the Summit Carbon Solutions pipeline project.
House Study Bill 287 specifies that “construction of hazardous liquid pipelines for transportation or transmission of liquefied carbon dioxide” does not constitute a public use for the purpose of condemning agricultural land. The bill would apply to any condemnation proceedings made on or after its enactment.
While Committee members voted to advance HSB 287, a companion bill in the Senate will likely be “dead” at the end of the funnel week.
House File 491 would also restrict hazardous liquid pipelines from the right of eminent domain, by adjusting the definition of a common carrier.
Under the bill, a hazardous liquid pipeline would have to establish “clear and convincing evidence” that it transports a commodity used by an individual consumer, or a commodity for one or more shippers not affiliated with the carrier who will also not sell the hazardous liquid to the carrier.
Thomson said the bill “corrects a problem that emerged because of the Summit pipeline docket hearings in front of the Iowa Utilities Commission.” He also noted there will be an amendment to clarify that the bill does not apply to railroads.
House File 610 would allow members of the General Assembly, county and city elected officials and Iowans with “minimally plausible interest” to intervene in an IUC proceeding. House File 237 would prohibit the IUC from “threatening or imposing sanctions” on an intervenor unless they were intentionally dishonest or violated a criminal statute that caused injury to the commission in excess of $500.
