Opponents of a proposed carbon sequestration pipeline gather for a rally outside of the Iowa Capitol on Oct. 8, 2024. (Photo by Cami Koons/Iowa Capital Dispatch)
Three bills sponsored by state Rep. Charley Thomson, who has been a vocal opponent of carbon sequestration pipelines in Iowa, advanced from House subcommittee hearings Thursday.
The bills dealt with eminent domain, permit length for a pipeline carrying liquefied carbon dioxide and the office of the consumer advocate. Each bill received unanimous approval.
The legislation was part of a slew of bills introduced last week aimed at the Iowa Utilities Commission, eminent domain and the Summit Carbon Solutions pipeline project.
Restoring Office of the Consumer Advocate
Thomson said House File 239 is an attempt to “fix” some of the problems caused by the government realignment bill passed in 2023, which moved the Office of the Consumer Advocate from an independent office to a division under the attorney general’s office.
The consumer advocate, as its name implies, advocates for members of the public in utility cases, like the Summit Carbon Solutions pipeline project.
Jess Mazour, who spoke on behalf of the Iowa Chapter of the Sierra Club in favor of the bill, said prior to the restructuring of the office, the consumer advocate would file notices that it had reviewed the documents submitted by Summit in its permit application, and it would request further documentation from the company.
Mazour said since the restructure of the office, the consumer advocate has been “almost absent” from the process.
“If we don’t have a consumer advocate that is active in the process and helping the landowners, then we have no one doing that,” Mazour said. “Then we have to rely on members of the public or groups like Sierra Club to make sure that people know their rights and that this process is fair.”
The former consumer advocate left the office after the restructure and said it made the office subject to political persuasion.
Under the new bill, the consumer advocate would be appointed by the governor, instead of the attorney general, would give regular reports to the secretary of agriculture, auditor of the state and state treasurer and head the Office of the Consumer Advocate which would once again be independent.
While much of the conversation on the bill centered on the advocate’s role in the Summit Carbon Solutions pipeline permit, Rep. Lindsay James, D-Dubuque, said increased oversight from the OCA also would be helpful to protect Iowans in mobile homes from private equity firms who are “price gouging.”
Eminent domain
House File 242 would allow Iowa landowners to seek declaratory judgment, or a legally binding explanation of their rights, from a district court if their property were subject to an eminent domain claim in an application before the Iowa Utilities Commission.
Opponents of the bill said it would lengthen the time and the cost of pipeline projects in the state.
Jake Highfill spoke on behalf of the American Petroleum Institute in opposition to the bill, which he said would impact not just carbon sequestration pipelines, but natural gas and oil pipelines as well.
“We would like to ask to make sure we’re not including everybody as we move forward,” Highfill said to the subcommittee.
Proponents, including the Sierra Club Iowa chapter, landowners and the American Civil Liberties Union of Iowa said the bill would help to correct the “shoddy track record, regarding due process” by the IUC.
“At present, due process simply doesn’t exist for these landowners,” Pete McRoberts said on behalf of ACLU of Iowa.
Mazour with Sierra Club requested the final section of the bill be amended to allow the bond for an appeal of an IUC decision to be removed, instead of the bond from a declaratory statement, as the bill currently reads.
A spokesperson for Summit Carbon Solutions said in a statement the regulators in Iowa, North Dakota and Minnesota have “affirmed the project’s safety, economic advantages, and importance for energy independence” with their approval of the projects.
“We have signed easements with more than 1,200 Iowa landowners and have adjusted the route based on feedback from stakeholders and regulatory agencies,” the statement said. “These actions ensure the project responds to concerns, secures the future of ethanol, and opens pathways to low-carbon markets.”
The Iowa Utilities Commission granted Summit Carbon Solutions the use of eminent domain for its carbon sequestration pipeline project that would run through Iowa, Nebraska, South Dakota, North Dakota and Minnesota. Per the permit, construction on the project may not begin until the company has secured a permit in South Dakota, which is still pending.
“Regulatory certainty is crucial for maintaining Iowa’s competitive edge in business, fostering long-term opportunities for farmers, ethanol producers, and rural communities,” the statement from Summit said in response to the advancement of the bills.
25 year permits
House File 238 also advanced unanimously and would limit permits to liquified carbon dioxide pipelines to 25 years and prohibit the IUC from renewing those permits.
Nate Hohnstein opposed the bill on behalf of the Iowa Renewable Fuels Association, noting that pipelines were the safest method of transportation for liquified carbon dioxide.
Supporters of the bill said they wish it went further and restricted the use of eminent domain on agricultural land.
Each of the House files have matching bills introduced and assigned to subcommittees in the Senate, Senate File 229, SF 226, and SF 225.
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