CCS Pipeline Faces Major Blow in Iowa, GOP Lawmakers Tie Budget Eminent Domain Bill

Carbon Capture and Storage (CCS) pipelines could face a major blow if the new push by Iowa GOP lawmakers to force a vote on the Eminent Domain bill sails through. This would make it even more challenging for CCS firms to acquire land for their proposed pipeline projects traversing the Midwestern states.
A dozen Republican state senators in Iowa are attempting to force a vote on legislation addressing eminent domain for carbon capture pipelines, threatening to withhold approval of the state budget until their demand is met.
The move intensifies pressure on Summit Carbon Solutions' proposed $8.9 billion pipeline project, which would transport carbon emissions from ethanol plants across five Midwest states for underground storage in North Dakota.
The project aims to lower ethanol producers' carbon intensity scores, enhancing their competitiveness and eligibility for federal tax credits. This dispute comes as the project faces hurdles in South Dakota following Gov. Kristi Noem's recent signing of a law banning the use of eminent domain to acquire land for carbon pipelines.
Last month, the pipeline’s permit application was also rejected in South Dakota, despite receiving approvals in Iowa, Minnesota and North Dakota.
The 12 Iowa GOP senators sent a letter to their leadership stating they would not vote on any budget bill — a constitutional requirement for the Legislature — until a pipeline bill reaches the floor. The lawmakers argue that addressing eminent domain for the project is "more important than the budget or any other priority for the 2025 session," citing South Dakota's new law.
Despite loyalty to the ethanol industry, some Midwest farmers have opposed the 2,500-mile pipeline, citing concerns over land use and safety.
Summit Carbon Solutions spokesperson Sabrina Zenor said the company has invested significantly in voluntary agreements in Iowa, securing 75% of its Phase One route with over 1,300 landowners.
Zenor added the company is "committed to building this project, committed to Iowa, and remains focused on working with legislators."
However, it remains uncertain whether the senators’ demands will succeed or what a potential bill might contain, given varying opinions among the 34 Senate Republicans who hold a supermajority.