Iowa Governor Reynolds Vetoes Eminent Domain Limits for Multi-State Carbon Pipeline

Iowa Governor Kim Reynolds vetoed House File 639, a bill aimed at restricting the use of eminent domain for carbon capture pipeline projects like the Summit Carbon Solutions pipeline. The bill would have introduced stricter regulations including limiting pipeline permits to 25 years and increasing insurance requirements, but Reynolds argued it went too far and threatened Iowa's energy reliability, economy, and investment climate. Supporters of the bill, including Iowa House Republicans, viewed it as necessary to protect landowners from property seizures benefiting private investors, while opponents cautioned it could hinder critical infrastructure projects in agriculture, ethanol, and energy. Reynolds emphasized that the bill's provisions could jeopardize existing projects already invested in, and she expressed concern about the broader implications for energy and utility projects beyond just eminent domain issues. Despite the veto, some lawmakers, like Representative Tom Moore, expressed disappointment and indicated a potential special session to attempt an override, while others acknowledged flaws in the bill that did not fully prevent eminent domain use. The governor did enact certain requirements from the bill, such as mandating full Iowa Utilities Commission attendance for pipeline-related hearings.