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Summit Pipeline Moves Forward in Iowa

Todd Neeley 7/02 11:14 AM

LINCOLN, Neb. (DTN) -- While the Iowa Utilities Commission decided to keep a construction ban in place for the proposed Summit Carbon Solutions carbon dioxide pipeline, the commission this week removed a state-specific condition on the ban that could pave the way for the eventual construction.

In addition, the commission denied motions to dismiss the construction permit.

The project hit a major roadblock when the South Dakota Legislature passed House Bill 1052 in March 2025, banning the use of eminent domain for carbon pipelines.

The Iowa Utilities Commission granted a pipeline permit on Aug. 28, 2024, which prohibited the company from starting construction in Iowa until it had obtained regulatory approval also in South Dakota and North Dakota.

This week the commission removed state-specific language from the permit.

The South Dakota law effectively stopped in its tracks the pipeline route through the state.

"While South Dakota House Bill 1052 is not a complete ban on Summit Carbon's route through South Dakota, it does present an issue with the conceivability of obtaining a complete route through South Dakota given the ability of as little as one South Dakota landowner to halt the multi-state project," the commission said this week in its order.

The Polk County District Court sent the permit back to the commission following an appeal filed in court by Summit Carbon to re-examine how the South Dakota law affects the construction ban.

In its order this week, the commission cleared the way for the company to keep the project moving forward.

"The commission's implementation of this condition was not about there being something inherently special about North Dakota or South Dakota, rather the condition was to ensure construction did not commence in Iowa until Summit Carbon established it has a complete route from the producers in Iowa to an ultimate sequestration location," the commission said in its order.

"The commission will modify this condition to be that Summit Carbon cannot commence construction until it has obtained and provided proof to the commission of agency-level or substantially similar approvals for a route from Iowa to a sequestration area, as well as agency-level or substantially similar approvals for a sequestration site for the product to be shipped."

Summit Carbon recently dropped eight Iowa counties from a previously proposed pipeline route and now faces regulatory review in connection to a potential new route. The company also is faced with proving it can achieve a public purpose with the pipeline, and to what extent can the company use eminent domain.

In addition, the original June 2024 permit order still is under review in the Polk County District Court. A ruling could determine whether the project can move forward.

Even with the change by the commission this week, the order said the company has stated the upcoming reviews necessary to begin construction could take a while.

"Summit Carbon argues this will require witnesses, exhibits, cross-examination and potentially commission questions, which will take weeks, not days," the new order said.

The Iowa Farm Bureau asked the commission to restrict Summit Carbon's ability to use eminent domain until the project's viability is determined. Farm Bureau told the commission there needs to be at least two separate hearings on the project, according to the order.

Back in May, Summit filed documents with the commission to remove certain segments of the proposed pipeline route. The company continues to work with a group of 27 ethanol plants in Iowa.

Summit removed proposed routes in Shelby, Pottawattamie, Montgomery, Adams, Page, Fremont, Mitchell and Worth counties in Iowa, while reducing pipeline miles in Crawford, Floyd, Sioux and Dickinson counties. According to a news release from Summit the changes are removing more than 400 landowners from the route and reducing about 200 miles from the project.