United Group Insurance

IUB set to receive numerous written briefs & hear arguments on SCS pipeline permit

Ag/Outdoor, News

November 21st, 2023 by Ric Hanson

(Des Moines, Iowa) – Hundreds of pages of written briefs that argue for and against a hazardous liquid pipeline permit for Summit Carbon Solutions in Iowa are due before the end of the year, with written replies to those arguments due Jan. 19, the Iowa Utilities Board recently ordered. If approved, the pipeline would run through about the western-third of Montgomery County. The Iowa Capital Dispatch reports the three-member IUB board will decide whether to issue or deny a permit to Summit to allow construction of its carbon dioxide pipeline system and whether the company can use eminent domain to obtain land easements for about a quarter of its route.

State law does not set a deadline for that decision, and the board has not estimated when its decision might come. Summit proposes a five-state pipeline system spanning more than 680 miles to transport captured carbon dioxide from ethanol plants to North Dakota for underground sequestration. The board’s evidentiary hearing for Summit’s proposal in Iowa ended Nov. 8. After the hearing’s conclusion, the board said it would allow a briefing schedule that is longer than normal “due to the voluminous record and the upcoming holiday season,” and would accept atypically long initial briefs of up to 150 pages, with some exceptions for even longer filings. It noted that the case file has tens of thousands of pages of testimony and exhibits. Pipeline opponents sought to circumvent the laborious briefing process after the hearing concluded with a motion for the board to deny Summit’s permit application.

More than half of Iowa’s corn is used to produce ethanol, and Summit has argued that supporting the ethanol industry also supports higher corn prices. The company has agreements with ethanol plants to share profits from federal tax credits that reward capturing carbon dioxide and producing low-carbon fuels, along with increased profits from selling those fuels in new markets. The specific details of the agreements have not been made public. Pipeline opponents have argued that those profits will mostly benefit wealthy Summit investors. They further oppose the use of eminent domain to force construction of the pipeline system against landowners’ wishes and worry about damage to farmland and safety threats from potential pipeline breaches.

Summit’s permit application in North Dakota is under reconsideration and has no definitive timeline for completion. The state’s capital city of Bismarck recently sought to intervene in the process because of the pipeline’s proximity, according to documents filed with the state’s Public Service Commission. Bismarck’s petition said it does not support or oppose the company’s proposal, but that it will be affected by it. Specifically, the city said the pipeline route might affect its future growth and the safety of its residents. The city’s fire department might also lead an emergency response to a pipeline rupture. South Dakota rejected Summit’s initial route proposal for that state, and the company has said it plans to reapply with a modified route. The company has not indicated when that might happen.

Summit has delayed the projected operational date of its pipeline system by more than a year to 2026.