Controversial Bill Limiting Eminent Domain Headed to Iowa Governor’s Desk, Labeled ‘A Hit to Iowa Corn Growers’

The Iowa Senate voted Monday night to pass a bill that one trade association said “essentially bans” carbon capture and sequestration (CCS) pipeline projects in the state. 

Iowa House File 639 passed with 27 yea votes. An Iowa Capital Dispatch report said the bill limits the ability of CCS pipeline projects to use eminent domain. 

“HF 639, as written, changed definitions of a common carrier, increased insurance requirements to cover any damages to property and reimburse landowners for increases in premiums due to the pipeline, set requirements for the [Iowa Utilities Commission (IUC)], and expanded who can intervene in IUC proceedings,” said the report. 

It is now up to Iowa Governor Kim Reynolds to decide if she will sign or veto the bill. When approached by SF for comment, Reynolds’ office said, “The governor is still reviewing the bill.”

According to Iowa’s Legislative Service Agency, “If, during session, the Governor does not sign or veto a bill, it becomes law after three calendar days. Bills received by the Governor during the last three calendar days of session must be signed or vetoed within 30 calendar days.”

Reactions to the bill from the ag and biofuel communities have been few. The Iowa Department of Agriculture and Land Stewardship, Renewable Fuels Association, and American Coalition for Ethanol declined to comment. Several other groups have yet to respond to requests for comments.   

Iowa Renewable Fuels Association (IRFA)

IRFA works on behalf of Iowa biofuel producers. Iowa is the top biofuel-producing state in the country. 

In a statement Monday night, IRFA said the bill “essentially bans” CCS pipeline projects in Iowa through permitting restrictions they argue render CCS projects economically unviable, even with 100% voluntary easements. 

“IRFA is deeply disappointed by today’s vote,” said IRFA Executive Director Monte Shaw. “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 around the world. For three years, IRFA has sought to work on a middle ground approach that enhanced landowner rights and protections but would allow CCS projects a path forward. While a majority of the Iowa Senate turned their back on Iowa agriculture tonight, IRFA thanks those who stood for common sense.”

Shaw continued, “For 25 years, Iowa has benefited greatly from being the most profitable place in the world to convert corn kernels into ethanol. Once the Tallgrass CCS pipeline in Nebraska begins operations later this year, that will no longer be the case. If this legislation goes into effect, there will be very real, very severe economic consequences as others, like Nebraska, North Dakota, and Brazil, move forward with CCS. Iowa is poised to be left behind. Expansion plans will be shelved, and we could see additional plant closures over time as the CCS-enabled plants elsewhere expand. IRFA members will be asking Gov. Reynolds to stand up for their future and the future of rural Iowa by vetoing this misguided legislation.”

Iowa Corn Growers Association (ICGA)

The ICGA represents Iowa corn producers in all 99 counties.

“This is a hit to Iowa corn growers and ethanol producers,” said Stu Swanson, ICGA president and a farmer from Galt, Iowa. “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 compared to states pursuing CCS projects. Iowa has long been known as the corn state, and this decision impacts our ability to stay competitive as other states and countries seize this new opportunity. Our farmers deserve increased market access, not increased barriers. ICGA is disheartened by this decision but appreciates the support of Senate members who voted in the interest of the Iowa farmer.”