An Iowa House committee has advanced legislation that would prohibit the use of eminent domain for CO2 pipelines, keeping property rights at the center of an increasingly divisive debate over the state’s role in supporting carbon capture infrastructure.
House Study Bill 507, sponsored by Representative Steven Holt (R-Denison), would prevent pipeline developers from acquiring land through eminent domain for carbon capture and sequestration projects. The bill is one of several measures expected to shape legislative discussions during the 2026 session as opposition to CO2 pipeline development continues to split lawmakers.
Supporters of the bill argue it protects Iowans’ fundamental property rights. Holt said eminent domain should be used only in rare circumstances that clearly meet constitutional standards for public use, such as roads or essential public infrastructure. He characterized the proposed Summit Carbon Solutions pipeline as an economic development project rather than a public necessity.
Pipeline economics clash with property rights concerns
Opponents of the bill, including representatives of Summit Carbon Solutions, warned the measure could effectively halt the proposed multistate pipeline. The company says it has already secured more than 1,400 voluntary easements from landowners and views the project as a key enabler of low-carbon ethanol production.
Lobbyists for Summit highlighted the project’s access to federal incentives, including 45Z clean fuel production credits for ethanol plants and 45Q tax credits tied to carbon transport, storage and enhanced oil recovery.
They argue the pipeline would strengthen Iowa’s agricultural economy and maintain competitiveness in emerging ultra-low-carbon fuel markets.
Relevant: US Supreme Court Rejects Iowa Counties’ Bid To Regulate Carbon Pipeline
Despite Republican unity in the House, some lawmakers expressed skepticism. Representative Ross Wilburn (D-Ames) cited last year’s Senate inaction and Governor Kim Reynolds’ veto of similar legislation, questioning whether political conditions have changed enough to justify advancing the bill.
Senate leaders have indicated they may pursue alternative legislation allowing pipeline route flexibility to avoid unwilling landowners. House Speaker Pat Grassley said early action on the eminent domain ban signals continued commitment to resolving the issue, noting that parallel efforts in both chambers could open the door to compromise.
As debate intensifies, Iowa’s legislature once again finds itself balancing climate policy ambitions, federal incentives and deeply rooted concerns over private property rights.
Read more: What’s Next For Carbon Capture, Utilization & Storage (CCUS) In 2026?
