Lawmakers Fume after Governor’s Veto, But Energy Leaders Celebrate

A much-anticipated veto by Iowa Governor Kim Reynolds, a Republican, brought a range of reactions because of the potential significance for a proposed five-state, $9 billion carbon sequestration pipeline project. The project by Summit Carbon Solutions -- owned by Bruce Rastetter, a prominent Republican donor and one of Reynolds’ biggest financial supporters – previously reached agreements with about three out of every four property owners in the pathway of the pipeline costing the company tens of millions of dollars.

Summit has the potential to make billions of dollars from the project which would carry hazardous liquid carbon emissions from biofuels plans and bury them in a storage tank in North Dakota. Supporters say this process reduces carbon dioxide emissions in the air and would be better for the environment.

Landowners Hoped for Veto to Block Pipeline Project

But the remaining landowners who did not reach agreement with Summit hoped that a bill passed by the legislature following an overnight debate could potentially thwart the project, even though Summit already received authority from the Iowa Utilities Commission to use eminent domain for access to properties.  

It was a complicated bill that followed nearly four years of disagreements in Iowa’s Republican-led legislature. The legislation did not specifically block the use of eminent domain. However, it did require pipeline companies to have insurance in case the project caused damage to a person’s property, and it changed the definition of what is considered a common carrier.

Governor Reyolds in her veto cited potential harm to the energy industry if the bill became law. “Iowa leads in the nation in biofuels,” the governor’s veto letter stated. “We are at the forefront of turning corn into low-carbon energy – a leadership position we risk losing if we block the infrastructure that makes it possible. Other Midwestern states, like Nebraska, Illinois, and North Dakota are already moving forward with carbon-capture projects that would put Iowa at a competitive disadvantage if this bill became law.”

Senators Demanded the Vote  

The bill made it to the governor only after 12 Republican senators demanded that their party’s leadership stop blocking debate on the bill, a fairly stunning act by members to publicly challenge their own leaders.

The dozen refused to approve the budget agreement for the coming year without that vote. And without their support, Republican leadership in the senate would be unlikely to have the votes to get the budget agreement approved. Democrats, who hold only about one in three seats in the senate, did not seem willing to help Republican leadership finding the necessary votes.

In the end, Republican senator leaders gave in, and the senate – thanks for support from Democrats – agreed to the eminent domain restrictions that the Republican-led house passed.

Republican Legislators Rip Party’s Governor After Veto

Some of the Republican legislators who supported eminent domain restrictions sounded their fury at their party’s governor following her veto.  

“Kim Reynolds has failed the state of Iowa. Kim Reynolds has soiled her legacy,” state Representative Bobby Kaufmann, a Republican from northeast Iowa and the son of Republican Party of Iowa Chairman Jeff Kaufmann, told Radio Iowa. 

“I vow today to work against and kill every single bill she comes up with because I no longer trust her judgement,” Representative Kaufmann said.

State Representative Steve Holt, a Republican from western Iowa who also opposes the pipeline project, said. “The governor had three years to weigh in on this. The governor could have given us her suggestions. She continues to say that she wants to protect landowner rights, but she’s done nothing in three years to do that.”

Republicans in the house have discussed reconvening to override Reynolds’ veto. But their counterparts in the senate have not expressed a similar desire. An override of the governor would require support from two-thirds of legislators in both chambers, making it an unlikely course of action for those frustrated with Reynolds’ action.

American Petroleum Institute Praises Governor’s Veto of Eminent Domain Restrictions

American Petroleum Institute Midwest Regional Director Mike Karbo expressed support for Reynolds’ veto. In a statement Karbo said, “…since there are no refineries in the state, critical energy infrastructure, such as pipelines, are crucial in ensuring Iowans have a reliable source of energy, and certainty is needed to develop the infrastructure network.”

Karbo added, “The vetoed bill had unprecedented and unfeasible requirements for infrastructure development and would have created significant uncertainty in future projects.”

RELATED: South Dakota’s governor blocked the use of eminent domain for the carbon pipeline, leaving the private company with this significant hurdle to overcome.