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Gov. Reynolds vetoes carbon pipeline, eminent domain bill
An Iowa bill that would have put new restrictions on carbon pipelines has been vetoed by Governor Kim Reynolds.
House File 639 aimed to restrict the use of eminent domain for carbon pipelines. In a statement late Wednesday, Governor Reynolds said she shares the bill’s goal of protecting landowners but says the legislation “isn’t just about eminent domain. It goes much further – and in doing so, sets a troubling precedent that threatens Iowa’s energy reliability, economy, and reputation as a place where businesses can invest with confidence.”
Monte Shaw, executive director of the Iowa Renewable Fuels Association, tells Brownfield the governor’s veto is milestone win for the state’s biofuels industry.
“We stand ready to work with people who want to improve the system but not kill the carbon capture projects,” Shaw said. “If people are wanting to do that, we stand ready.”
Shaw says the bill would have held back new markets for Iowa corn farmers.
“Carbon capture and sequestration is the key to unlocking almost all of the new markets for biofuels demand and corn demand,” he said.
Governor Reynolds says the legislation would have blocked a major pipeline project that is using only voluntary easements.
“Those who crafted the bill said they don’t want to stop CO2 pipelines that rely entirely on voluntary agreements. But that is exactly what the bill does. For that reason alone, I cannot sign it,” Gov. Reynolds said.
POET applauded the governor’s veto Wednesday afternoon. POET Founder and CEO Jeff Broin says, “At a time when commodity prices are low, these CO2 investments will expand market access for Iowa corn, biofuels, and bioproducts across the globe, increasing the value of every bushel of corn and every acre of Iowa cropland. This decision will bring benefits to Iowa farmers for generations to come.”
Tom Buis, CEO of the American Carbon Alliance, says, “Farmers and ethanol producers deserve thriving, open markets, not activist government that changes the rules in the middle of the game.”
The Iowa Corn Growers Association said, “Participation in CCS projects will allow Iowa to capitalize on exciting new ethanol market opportunities like Sustainable Aviation Fuels (SAF). Jet fuel demand is projected to be 120 billion gallons by 2035; if 10% of that market could be made into SAF from ethanol, this would equal nearly 19 billion gallons of new ethanol demand or nearly 6.5 billion bushels for new corn demand.”
INTERVIEW: IRFA’s Monte Shaw reacts to Gov. Kim Reynolds’ veto of HF 639
I would like to see the contract with the airline industry for buying ethanol if we lower the carbon score producing ethanol. I believe the airline industry knows about ethanol and doesn’t purchase it now. Understand that the BTU factor for ethanol vs jet A fuel is 50% lower and the airlines would have to carry twice as much fuel for the same length of flight. Secondly the contract if you sign with Summit or not doesn’t matter. As soon as the pipeline is operating and hooked to all these ethanol plants the pipeline will be sold. It happens all the time and the new owner doesn’t have to honor those contracts they didn’t create. What if the new owner is a foreign owner or the Sierra Club? They don’t like the energy industry and shuts down the pipeline. There goes your ethanol industry. What would the price of corn be without ethanol? You have to remember the Green New Energy industry is to get rid of “fossil fuels” and this is a go around way to shut it down. Property rights were rights given to you as a citizen. Reynolds refusal to protect your property rights is another step towards communism.