Iowa Utilities Commission Grants Pipeline Permit to Summit Carbon Solutions

The Iowa Utilities Commission has approved a construction permit for Summit Carbon Solutions’ planned hazardous liquid pipeline in Iowa. This decision, made on Wednesday, follows a June 25 order in which the commission approved the project contingent on Summit Carbon meeting several regulatory requirements before the permit could be issued. The commission's conditions included requiring Summit Carbon to obtain and maintain a $100 million insurance policy and to compensate landowners for any damages caused by the pipeline's construction.

On August 5, Summit Carbon submitted the necessary compliance filings, which allowed the commission to proceed with issuing the construction permit. The permit was granted without altering any of the previously set conditions, one of the most significant being that the project must also receive regulatory approval in North Dakota and South Dakota. Summit Carbon aims to begin construction next year, with the pipeline expected to become operational by 2026.

The proposed pipeline, which would be the largest of its kind globally, is designed to transport liquefied carbon dioxide from ethanol plants in Iowa and nearby states to a storage site in North Dakota. The pipeline will span over 2,000 miles across five states, with nearly 700 miles running through Iowa. Summit Carbon has partnered with 57 ethanol plants and claims to have secured voluntary easement agreements with 75% of landowners along the Iowa route.

The Iowa Utilities Commission’s approval of the project includes the provision that Summit Carbon can use eminent domain in Iowa to acquire land from property owners who oppose the project. In recent legislative sessions, the Iowa House passed bills aimed at providing landowners with more leverage in pipeline negotiations. In 2023, the House approved a bill requiring pipeline companies to secure voluntary easements for 90% of their routes before using eminent domain. Another bill passed this year would allow landowners to challenge eminent domain requests earlier in the permitting process. However, neither bill progressed in the Senate.

The pipeline project has sparked significant public debate over the past 30 months, drawing opposition from farmers, environmentalists, and pipeline safety advocates. In August 2023, Summit Carbon’s permit applications were denied in North Dakota, followed by another denial in South Dakota the following month. Since the Iowa Utilities Commission began considering Summit’s permit application two and a half years ago, the panel has reviewed tens of thousands of pages of documents, heard testimony from over 200 witnesses, and considered more than 4,000 comments, objections, and letters of support for the project.