Carbon Pipeline Company Pledges to Try Again After Failing to Get Regulatory Approval
- Dave Price
- Apr 25
- 2 min read
Updated: May 2
The company that has already invested millions of dollars to construct a five-state, $9 billion carbon sequestration pipeline vows to try again after yet another regulatory setback. Summit Carbon Solutions -- the company based in Ames, Iowa – learned Tuesday its latest permit application was “not viable,” according to regulators with the South Dakota Public Utilities Commission.
Summit has tried for three years to get the necessary permit to build a portion of its pipeline through the state. The company also plans to lay the pipeline through Iowa, Nebraska, Minnesota, and North Dakota, with the latter holding the underground storage facility for the hazardous liquefied carbon dioxide captured from ethanol plants.
The project has the potential to make billions of dollars from reducing greenhouse gas emissions and collecting lucrative federal carbon sequestration tax credits. But South Dakota lawmakers in March banned the use of eminent domain for pipeline projects, which Summit could have used to force access on land where owners were not willing to sign voluntary easements.
The series of setbacks has meant numerous reevaluations of plans for Summit.
RELATED: Other developers have a different way of minimizing carbon emissions rather than using a pipeline.
Iowa Lawmakers Spar Over Eminent Domain Legislation for Pipelines
Iowa regulators have already given Summit permission to use eminent domain for the pipeline’s route through the state. However, Republican lawmakers are fighting with each other on whether to pass legislation to provide additional legal protection for property owners who don’t want give crews or the pipeline access on their land.
A rare occurrence has taken place…twice…on the floor of the state senate when Republican senators complained that their party’s leadership has refused to allow debate on a bill that would curtail or eliminate eminent domain authority for a pipeline company. Republican senators called out their colleagues for two straight days for failing to take a public vote. House Republicans have already agreed to a series of eminent domain use limitations.
Republicans have about two out of every three seats in each chamber, essentially giving them complete control over what the legislature passes. The state’s governor, Kim Reynolds, is also a Republican.
Senate Republican leadership has thus far not allowed the bill to come up on the floor, angering some of the members in the caucus. Governor Reynolds has not publicly pushed for eminent domain protection for landowners either.
Summit is owned by Bruce Rastetter, one of the state’s most prominent business leaders and Republican donors.
States Ask for Federal Waiver for SNAP Benefit Changes
Iowa is one of four Republican-led states that have asked the Trump administration for waivers to limit what some food assistance recipients can buy. Nebraska, Arkansas, and Indiana have also submitted waivers to USDA to no longer allow Supplemental Nutritional Assistance Program (SNAP) recipients to buy certain items like soda, energy drinks, and junk foods (not all the states are asking for the same restrictions).
Any changes to food purchases could impact producers, since 41 million people nationwide receive SNAP benefits.
