The Mid America Store

by Cami Koons, 

Iowa lawmakers advanced bills aimed at protecting landowners through the permitting, construction and operation of liquid hazardous pipelines. 

The bills, which passed out of House subcommittees Thursday, would make pipeline operators liable for the increased insurance costs of surrounding landowners and require at least one member of the Iowa Utilities Commission attend public informational hearings. 

Lawmakers and members of the public who spoke in favor of the bills referenced the Summit Carbon Solutions pipeline, which would transport liquid carbon dioxide from biofuel facilities in Iowa to underground storage in North Dakota.

Insurance 

House File 240 would increase the insurance requirements for pipeline operators to cover any potential damage to landowners during construction and from negligent or intentional discharges from the pipeline. 

Additionally, the pipeline operator would have to purchase insurance on behalf of a landowner if they are unable to obtain it due to the presence of the pipeline, or reimburse landowners for insurance cost increases caused by the pipeline. 

The Iowa Utilities Commission issued Summit Carbon Solutions a permit on the project in June with the conditions that the company carry a $100 million insurance policy and receive approval in the other states connected with the pipeline.

Several landowners who would be impacted by the pipeline, shared they would be unable to get liability insurance from their insurers. 

“I just want to make sure that I’m protected, because this isn’t something that I asked for, and I don’t want to have to take that risk,” Peg Rasmussen, a landowner from Montgomery County who spoke in favor of the bill, said. 

Rep. Steve Holt, R-Denison, who chaired the subcommittees for both bills, said he would “enthusiastically” push the insurance bill forward. 

“It is clear that there are profoundly important questions surrounding liability, safety, EMS, training and preparation, safety, equipment needs and risk,” Holt said. 

Holt referenced lawsuits between Summit and counties that have enacted things like setback regulations, and said Summit’s actions “not acceptable.” 

A spokesperson for Summit Carbon Solutions said in a statement the company “is committed to meeting or exceeding all federal safety standards” which are set by the Pipeline and Hazardous Materials Safety Administration. 

“The bill Representative Holt commented on is about insurance,” the statement said. “Summit Carbon Solutions is already required to have insurance, and our Iowa Utilities Commission Order mandates that we carry at least $100 million in coverage.”

Attendance 

House File 241, requires a member of the Iowa Utilities Commission to be present at all informational meetings and hearings. 

Holt said the issue addressed by the bill was evident to him when he attended an informational meeting on the pipeline where no commissioners were present. 

“Unfortunately, this seems to fit the pattern of arrogance toward property owners that has been on display throughout this entire process by the Iowa Utilities Commission when the leadership changed,” Holt said. 

Landowners who testified said IUC sent a representative rather than an actual commissioner to hear landowner perspectives at many of the public information hearings for phase two, an expansion permit proposal from Summit Carbon Solutions.  

Jess Mazour with the Sierra Club Iowa Chapter said there has been an “obvious” change in the IUC in the past four years she has been working with landowners in opposition to carbon sequestration pipelines. 

“From not showing up to meetings, not listening,” Mazour said. “We’re talking about people who’ve put their lives on hold for four years to protect their property … and they don’t even have the ability, or the care, to show up and listen to them.” 

A spokesperson for the Iowa Utilities Commission said: “The IUC has a presiding officer at all informational meetings to ensure that the information provided by the petitioner meets the requirements of 199 Iowa Administrative Code,” in a statement responding to the accusations. 

No lobbyists registered against the bill. 

“It seems like if you’re being paid to do a job, you ought to be at these meetings, unless you have a very good excuse not to be,” said Rep. Brian Meyer, D-Des Moines, who voted in favor of the bill. 

Both bills passed unanimously and will advance to the House Judiciary Committee.

Another pipeline-related bill, House File 239, passed the House Judiciary Committee Thursday morning. The bill, which will advance to the floor, would restore the Office of the Consumer Advocate as an independent office.

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