The executive director of the Iowa Renewable Fuels Association says the carbon pipeline bill recently passed by the Iowa Senate could have severe impacts on the future of ethanol.
Monte Shaw tells Brownfield carbon capture and sequestration (CCS) projects are critical to unlocking new demand for ethanol and corn around the world.
“This is a very flawed piece of legislation,” he said. “It doesn’t even do the things that the supporters of it say it does. But what it would do is slam the door on any carbon sequestration projects in Iowa by putting in place permit restrictions that would make any project not viable.”
State senators voted 27-22 Monday to send the bill to Governor Kim Reynolds’ desk for signature, which would restrict eminent domain for carbon pipelines.
Supporters of the legislation say it protects the rights of landowners and requires more insurance for pipelines, among other guardrails.
Shaw says the Summit Carbon Solutions pipeline could be impacted.
“They’ve got one permit, so maybe they are in a slightly different position. I’ll let them speak for themselves,” he said. “It limits the permit to a handful of years and then you can’t renew it. It’s like, who would build a machine shed if you knew in 15 years you had to walk away from it and just leave it there to rust?”
Governor Reynolds has the power to either sign or veto the pipeline bill. Shaw says a decision from the governor is expected within 30 days of passage.
