Iowa Gov. Kim Reynolds on June 11 vetoed H.F. 639, a controversial bill that would have effectively prevented carbon capture and sequestration (CCS) projects from being developed within the state. Biofuel stakeholders are applauding her decision.&nbsp;The bill was introduced in February. The Iowa House of Representatives voted 85 to 10 in favor of the bill in March. The Iowa Senate passed more narrowly approved the bill by a vote of 27 to 22 in May.&nbsp;While language included in H.F. 639 did not create an outright ban on CCS projects, provisions of the bill would have effectively prevented the development of such projects within the state.&nbsp;The legislation aimed to create new restrictions governing the use of eminent domain for CO2 pipeline projects. It would have also impacted CO2 pipeline projects that achieved 100% voluntary easements by establishing new permitting restrictions that would have made it difficult for a project to remain economically viable.&nbsp;Reynolds released an extensive veto message that includes a detailed discussion of her decision to block H.F. 639.&nbsp;“Reasonable people can-and do-disagree about when government, or a private company acting with government approval, should be allowed to take private land,” Reynolds wrote. “That debate is as old as the Republic. At its core, it asks how we protect individual property rights while still building the infrastructure-roads, utilities, pipelines-that modern life depends on.&nbsp;“I respect both sides of that debate. I've consistently said that if eminent domain is used, it must be rare, fair, and a last resort.&nbsp;“But HF 639 isn't just about eminent domain,” she continued. “It goes much further—and in doing so, sets a troubling precedent that threatens Iowa's energy reliability, economy, and reputation a place where businesses can invest with confidence.”For example, she explained that the bill would block CO2 pipeline projects that use only voluntary easements, including a project at Southwest Iowa Renewable Energy that is in the final stages of development. The bill’s attempt to implement new insurance mandates and an arbitrary 25-year limit on CO2 pipelines would effectively kill projects like the one SIRE is developing, she wrote.“I understand this was not the intent,” Reynolds wrote. “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.”Reynolds also addresses safety concerns expressed by proponents of the bill, noting that CO2 pipelines are already subject to robust regulations established by the Department of Transportation’s Pipeline and Hazardous Materials Safety Administration and that such pipelines have an excellent safety performance record.&nbsp;The bill’s impact would not be limited to CO2 pipeline projects, as its provisions apply to all hazardous liquid pipelines. Those provisions would change permitting rules across the board and inject uncertainty into critical energy projects, including those focused on oil, gas and fertilizer, Reynolds explained. &nbsp;“While I share the bill's goal of protecting landowners, good policy should draw clear, careful lines,” she continued. “This bill doesn't. It combines valid concerns with vague legal standards and sweeping mandates that reach far beyond their intended targets.”Reynolds also specifically addresses the impact H.F. 639 would have had on biofuel producers. “Iowa leads the nation in biofuels,” she wrote. “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.”Despite the bill’s flaws, Reynolds notes H.F. 639 did include some helpful provisions. She said that she is committed to working with the Iowa legislature to strengthen landowner protections, modernize permitting and respect private property. In the meantime, she indicated she will ask the Iowa Utilities Commission to require all commissioners to be present for live testimony and ensure that at least one commission attends every information meeting. Reynolds said those changes, which are drawn from H.F. 639, will immediately improve oversight and transparency without the need for new legislation.&nbsp;Representatives of the ethanol industry are applauding Reynolds for vetoing the bill.&nbsp;“We’re deeply grateful to Governor Reynolds for having the conviction to stand up for rural jobs and preserve opportunities for future generations of Iowa farmers,” said Emily Skor, CEO of Growth Energy. “Carbon capture allows farmers and producers to accelerate investment in U.S. energy innovation and tap into growing markets around the world. These projects add value to every bushel of corn and provide a vital lifeline to our farmers in uncertain times. We look forward to working with our elected leaders to find a balanced policy solution that allows our industry to remain competitive and protects the billions of additional dollars these projects could deliver for farmers in Iowa and across the heartland.”&nbsp;“IRFA is deeply grateful for Governor Reynolds’ veto of HF639,” said Monte Shaw, executive director of the Iowa Renewable Fuels Association. “This is a classic example of why our system of government has checks and balances. Any thoughtful review of this bill would determine that it would lead to higher energy prices for Iowans, hamper future economic development, hold back job creation, and stifle new markets for Iowa farmers. IRFA thanks Gov. Reynolds for listening to Iowans, studying the actual legislation, and ignoring the rhetoric that was as inaccurate as it was loud.”“Thank you, Governor Reynolds, for your steadfast support of family farms and bioethanol producers,”&nbsp;said Jeff Broin, POET founder and CEO. “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.”

2025-06-11 - Reynolds vetoes eminent domain, CO2 pipeline bill  (Ethanol Producer Magazine)

thumbnail_Reynolds2024.jpg

Reynolds2024.jpg

Iowa Gov. Kim Reynolds on June 11 vetoed H.F. 639, a controversial bill that would have effectively prevented CCS projects from being developed within the state. Biofuel stakeholders are applauding her decision. 

Reynolds vetoes eminent domain, CO2 pipeline bill

Related Stories

White House OMB completes review of 2 RFS rules

Grassley presses Bessent on 45Z regulations

Department of Commerce officially disbands renewable energy advisory committee

RFA CEO: Time to unleash American ethanol

A Turning Point for Europe and Biofuels?

Upcoming Events

North American SAF Conference & Expo

2026 International Biomass Conference & Expo

Reynolds vetoes eminent domain, CO2 pipeline bill .css-7jxktu{position:absolute;bottom:0px;left:0px;right:0px;height:3px;border-radius:3px;background-color:var(--chakra-colors-brandBlack);}