Iowa Utilities Commission issues pipeline permit for Summit Carbon Solutions Updated with Note!
Summit Carbon Solutions wants to sequester the carbon dioxide of more than 50 ethanol producers in five states. (Courtesy of Summit Carbon Solutions)
NOTES from FINAL ORDER: SEVERAL CONDITIONS WILL BE ATTACHED TO THE PERMIT!
“Additionally, as part of the order, Summit Carbon will be required to submit numerous revised exhibits as compliance filings for the Board’s review, prior to the Board issuing the permit or Summit Carbon commencing construction. Several conditions will be attached to the permit as well, including but not limited to requiring Summit Carbon to obtain and maintain at least a $100 million insurance policy, comply with certain construction methods, and ensure landowners and tenants are compensated for damages that may result from the construction of Summit Carbon’s hazardous liquid pipeline.
Included with the order, Board Chair Helland issued a concurrence in part and dissent in part in which he agreed with all of the findings and conclusions except for a condition that prohibits Summit Carbon from beginning construction until it has obtained agency-level approval for a route and sequestration site in North Dakota and a route in South Dakota. Board Chair Helland stated he would not have placed this condition on the permit as it gives away the Board’s authority to another jurisdiction, contrary to the duties assigned to the Board by the Iowa Legislature.
Board Member Byrnes issued a concurrence in part and dissent in part in which he agreed with all of the findings and conclusions except for the approval of the lateral between the Quad County Corn Processors, Inc., facility in Ida County, Iowa, and the Green Plains Shenandoah facility in Fremont County, Iowa. Board Member Byrnes stated he does not find that portion of the route to be just and proper after weighing the evidence.
The concurrences in part and dissents in part do not impact the findings and conclusions of the order as all three Board members find the proposed service provided by Summit Carbon is in the public convenience and necessity and vest Summit Carbon with the right of eminent domain.”
Start of the Article:
The Iowa Utilities Commission has issued a construction permit for Summit Carbon Solutions’ proposed hazardous liquid pipeline across Iowa.
The commission’s decision on Wednesday was not unexpected given a June 25 order in which the panel issued a final decision approving the project while requiring Summit Carbon to submit numerous filings demonstrating compliance with regulatory requirements before a construction permit would be issued.
The commission also required the company to secure and maintain a $100 million insurance policy, and agree to compensate landowners for any damages that result from the pipeline’s construction.
On August 5, Summit Carbon submitted the required compliance filings, clearing the way for the permit to be issued.
The commission issued the permit without modifying the previously imposed conditions Summit Carbon must meet in order to begin construction – the most significant of which is that the project must be approved by regulators in North Dakota and South Dakota.
The company hopes to begin construction next year with the goal of making the pipeline operational in 2026. The pipeline, which would be the largest of its kind anywhere in the world, would carry liquified carbon dioxide from ethanol plants in Iowa and surrounding states to a site in North Dakota, where the company still hopes for approval of a previously denied permit.
The pipeline would cross more than 2,000 miles across five states, including nearly 700 miles in Iowa. In planning the pipeline, Summit has partnered with 57 ethanol plants and the company says it has signed voluntary easement agreements with 75% of the Iowa route’s landowners.
In giving its approval to the project, the Iowa Utilities Commission has stated that Summit will be able to use eminent domain in Iowa to force the sale of land from property owners who are opposed to the use of the property for the project.
The Iowa House approved legislation the past two sessions that would have given landowners more leverage over pipeline negotiations.
In 2023, the House passed a bill requiring pipeline companies to obtain voluntary easements for 90% of their routes before they could use eminent domain for the rest.
This year, the House voted to allow landowners who are subject to eminent domain requests by carbon dioxide pipeline companies to challenge the legitimacy of those requests in court earlier in the permit proceedings. Neither bill advanced in the Senate.
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See IUB Final Order!: