Pipeline Project Greenlighted in Iowa

25 Jun 2024

LINCOLN, Neb. (DTN) -- The Iowa Utilities Board approved Summit Carbon Solutions' proposed carbon pipeline project in an order issued on Tuesday, clearing the way for the company to construct the Iowa segment of the pipeline that covers 688 miles in 29 counties.

The board cleared the way for Summit to use eminent domain to acquire the needed land to complete the project. The board has yet to grant a permit to allow construction to begin.

"After weighing numerous factors for and against Summit Carbon's petition, the board found that the service to be provided by Summit Carbon will promote the public convenience and necessity," the board said in its final 507-page decision and order.

"The board found Summit Carbon could be vested with the right of eminent domain, and based upon this finding, the board examined each of the 859 outstanding parcels subject to a request for eminent domain to determine, based upon the record, whether to approve, deny, or modify each request."

Summit Carbon will be required to submit "numerous revised exhibits" before the board issues a permit and prior to construction beginning.

The board also will require Summit to have at least $100 million in insurance and to "comply with certain construction methods" and to "ensure landowners and tenants are compensated for damages" that may result from the construction.

The order requires Summit to revise and modify the pipeline route on several parcels of land.

Summit continues to jump through regulatory hoops in South Dakota, North Dakota, Iowa, Minnesota and Nebraska before launching construction on a 1,250-mile pipeline connecting to 57 ethanol plants across the Midwest.

The pipeline is considered to be an important factor in whether corn-ethanol plants will be a part of a nascent sustainable aviation fuel industry. Ethanol has the potential to be a key feedstock for SAF plants, if ethanol producers can further lower their carbon footprints. Carbon pipelines are considered to be the most viable way of doing that.

The Iowa Utilities Board held a public hearing on the proposal from Aug. 22, 2023, to Nov. 8, 2023.

Summit CEO Lee Blank said in a statement the project continues to maintain momentum.

"The momentum will continue as we prepare to file our South Dakota permit application in early July," Blank said. "We look forward to engaging with the state throughout this process and are confident in a successful outcome."

Summit Carbon Solutions said on Tuesday it has signed voluntary easement agreements with 75% of Iowa landowners along the route.

Brian Jorde, an attorney with Domina Law Group in Omaha who represents landowners in Iowa, said during a press conference on Tuesday that the Iowa Utilities Board decision is one of many hurdles still ahead for Summit before construction could begin.

Landowners opposing the pipeline project, he said, are willing to let the regulatory and legal processes play out.

"It's with the IUB (Iowa Utilities Board) right now," Jorde said.

"So, you can request the IUB to rehear it, reconsider it. They of course, if we do that, will deny that. They'll stick with their ruling then you appeal. And then you're in the district court and then depending how that goes, you can appeal that further. And ultimately, the Iowa Supreme Court will make the decisions on this, say, two years from now or so."

Jess Mazour, conservation coordinator for the Iowa chapter of the Sierra Club, said during a press conference that landowners will continue to fight the pipeline project.

"Today is a sad day in Iowa," she said.

"The Iowa Utilities Board voted 3-0 against Iowans and impacted landowners in favor of a dangerous and unpopular project that violates private property rights. And the fact that IUB released this decision when a large portion of Summit's route is underwater is shameful and callous. Iowa landowners are currently losing their homes and now to get word that they may be losing their farms. For three years, we made powerful arguments to show that Summit's project is neither convenient nor necessary."

American Carbon Alliance CEO Tom Buis said the board's actions are important to the future of agriculture.

"This decision was the right one and will be transformative for the ag industry and Iowa's economy," Buis said in a statement.

"Capturing carbon to lower the carbon index to open new markets such as sustainable aviation fuels and higher blends for American consumers is the greatest opportunity for farmers since the buildout of the ethanol industry. The Summit carbon pipeline will lead to increased demand for corn, benefiting farmers and increasing farm income, and stimulating economic activity for ethanol plants and ag-related business."

Monte Shaw, executive director of the Iowa Renewable Fuels Association, said the board did all it could to conduct a "thorough and fair" process in considering Summit's proposal.

"Despite the overheated rhetoric of a few, we must not forget that the overwhelming majority of impacted landowners support this project," Shaw said in a statement.

"More importantly, it was the correct decision based on federal and state law. It is encouraging to see the large amount of disinformation did not prevail. Today's decision creates monumental opportunities for Iowa farmers faced with falling prices and growing stockpiles."

The IRFA released the results of a study on the sustainable aviation fuel industry in January 2024.

That study found SAF production would demand an additional 770 million bushels of corn in Iowa while adding over $3 billion to the state's gross domestic product. The study found the typical 1,000-acre Iowa farm would see an additional $13,000 in annual income.

"Today's decision was the first formal step forward," Shaw said. "We hope and expect to see positive news in South Dakota and North Dakota in the near future. The light at the end of the tunnel is getting brighter and so are the prospects for boosting Iowa's farm economy."

Pipeline Project Greenlighted in Iowa

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