Iowa Utilities Board approves Summit Carbon's hazardous liquid pipeline application with modifications

On June 25, 2024, the Iowa Utilities Board (IUB) issued its final decision regarding Summit Carbon Solutions, LLC's, application for a permit to construct, operate, and maintain a hazardous liquid pipeline through 29 counties in Iowa. The IUB approved the application with modifications and will require Summit Carbon to submit additional filings for review before a permit is issued.

Summit Carbon filed its petition on January 28, 2022, for the proposed 688-mile pipeline to transport liquefied carbon dioxide through Iowa and into North Dakota, where it would be permanently sequestered underground.

The decision follows a 34-month process in which the IUB:

• conducted 33 public informational meetings
• received approximately 50,000 pages of prefiled testimony and exhibits from hundreds of witnesses and landowners
• held a public hearing over 25 days
• accepted more than 150 intervenors into the docket
• heard testimony at hearing from more than 200 witnesses and landowners
• reviewed nearly 7,500 pages of hearing transcript, and
• reviewed almost 4,200 written comments, including 600 filed after the deadline set by Iowa law.

In its decision, the IUB unanimously found Summit Carbon met the requirements of Iowa Code Chapter 479B and that the pipeline "will provide a service that is in the public convenience and necessity." The IUB's order approves the proposed overall pipeline route and grants the right of eminent domain over specific parcels listed in the order after the permit is issued.

In reaching its decision, the IUB applied a statutory balancing test, which found the public benefits of the project outweigh the private and public costs with the terms and conditions imposed by the IUB.

Included with the order are concurrences in part and dissents in part regarding specific conditions and the route. The concurrences and dissents do not impact the findings and conclusions of the order as all three Board members find the proposed service provided by Summit Carbon is in the public convenience and necessity and they vest Summit Carbon with the right of eminent domain.

Prior to the IUB issuing a permit and Summit Carbon beginning construction, Summit Carbon will be required to obtain and file proof of a general liability insurance policy of no less than $100 million to cover any damages related to the construction, operation, and maintenance of its Iowa pipeline. Summit Carbon will be required to provide proof of such insurance to the IUB annually.

Summit Carbon is also not allowed to begin construction in Iowa until it has obtained approval from North Dakota for the route and sequestration site and approval from South Dakota for the route. The company also cannot start construction of trunk or lateral lines to ethanol plants in Minnesota and Nebraska until approvals are granted in those states.

Due to the potential for the IUB's involvement in rehearing and/or judicial review, the IUB will not have additional comment in relation to the order.

Today's order and all filings in the docket may be viewed in the IUB's electronic filing system under Docket No. HLP-2021-0001.

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