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Groups argue in federal court for local control of pipeline routes

Ag/Outdoor, News

May 30th, 2024 by Ric Hanson

(Des Moines, Iowa) – Several groups challenging a recent decision, say a federal judge wrongly limited the authority of county and state officials to restrict the placement of carbon dioxide pipelines for public safety. According to the Iowa Capital Dispatch, the challenges stem from December rulings in which Chief Judge Stephanie Rose, of the federal Southern District of Iowa, blocked Shelby and Story Counties from enforcing ordinances that create minimum separation distances between the pipelines and buildings that are occupied by people or animals. The ordinances were the result of lawsuits Summit Carbon Solutions filed against counties that have attempted to govern where its sprawling pipeline system can go and to require the company to provide plans that show the safety risks of a system breach.

Summit wants to build a pipeline network that would transport captured carbon dioxide from ethanol plants in five states — including 30 in Iowa — to North Dakota for underground storage. Its initial construction permit is awaiting a decision in Iowa, and the company has sued five counties in the state that enacted ordinances. Rose sided with Summit in two of the lawsuits regarding Shelby and Story counties, and the other three are paused until appeals of Rose’s decisions conclude. Summit has argued — and Rose agreed — that state law gives the Iowa Utilities Board the ultimate say on pipeline routes and that the safety-related provisions of the ordinances conflict with federal law.

The counties’ ordinances reflect public apprehensions about the pipelines, which have the potential to create a deadly plume of carbon dioxide if they rupture. Rose said minimum separation distances — or setbacks — are “within the field of safety standards” and are the territory of federal regulators. As such, neither county nor state can impose them, she reasoned. That interpretation of the law is a concern to the Iowa Farm Bureau Federation, which has asked the IUB to keep Summit’s pipe at least 400 feet from homes and livestock buildings.

Chris Gruenhagen an attorney for the Iowa Farm Bureau, wrote in a court brief, in partial support of the appeals, that there are 112 homes and 36 livestock barns within 400 feet of Summit’s initial proposed route. “The district court’s ruling,” he wrote, ” … would restrict the state’s ability to judiciously review the proposed location and routing of the proposed pipeline.” Rose’s interpretation of federal law was contradicted in September by the Pipeline and Hazardous Materials Safety Administration, which regulates the design, construction and operation of carbon dioxide pipelines to ensure public safety. PHMSA sent a letter to Summit that month that said state and local governments are allowed to establish minimum separation distances.

Rose decided the initial versions of the Shelby and Story ordinances were so restrictive they “will lead to a situation where the IUB may grant a permit to construct a pipeline and Summit is unable to do so.” Story County modified its ordinance after the lawsuit was filed to include lesser setbacks. It’s unclear whether the changes would alleviate Rose’s concerns because she did not address the changes in her December ruling. Rose did, however, say state law does not explicitly prevent counties from adopting the setbacks. An attorney for the counties argues there is not evidence the ordinances are overly restrictive, in part because they would allow Summit to ask for exceptions when a pipeline could not comply with the setbacks.

“In reaching these conclusions, the district court fundamentally misapplied Iowa law,” wrote Jason Craig, a Des Moines attorney who is representing the counties in federal court. It’s unclear when the appeals will conclude. They were initiated in December, consolidated in January, and Craig filed a brief with his arguments in early May. Summit’s response is due July 1st. Iowa Farm Bureau, the Pipeline Safety Trust and the Iowa Farmer’s Union have also filed briefs that argue against various determinations by the judge.