South Dakota’s governor signed a bill banning the use of eminent domain for carbon pipelines today. Sierra Club of Iowa Attorney Wally Taylor says that should stop Summit Carbon from building its carbon pipeline in Iowa.
“I think as a practical matter, it does. I mean legally, summit could still get a permit in South Dakota, and if they did, that would allow them to go ahead and construct in Iowa,” Taylor says. The Iowa Utilities Commission approved a permit for the Iowa portion of the Summit pipeline on the condition that they get permits in the Dakotas before they start construction.
Taylor says eminent domain is needed to build in South Dakota.”Because, as I understand it, they have a lot of people there who have not assigned easements, and they would have to get eminent domain, and now they can’t do that. So I think, as a practical matter, it may very well stop the project,” he says.
Taylor says their focus continues to be on getting Iowa lawmakers to block the use of eminent domain for carbon pipelines here. “There have been several eminent domain bills that have come out of the Iowa House, but they get stopped by Senate leadership. This may change the dynamics a little bit in the Senate, and hopefully we could get a bill through the Senate this year,” Taylor says. Taylor can’t says how likely it is Iowa lawmakers will pass such a bill. “It’s hard to know, but it certainly looks like we’ve got a better shot this year,” Taylor says.
A spokesperson for Summit Carbon Solutions issued this statement on the issue:
“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.”