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STATE OF IOWA
KIM REYNOLDS
GOVERNOR
June 11, 2025
The Honorable Paul Pate
Secretary of State of Iowa
State Capitol Building
LOCAL
Dear Mr. Secretary;
1 hereby transmit House File 639, an Act relating to hazardous liquid pipelines, including
common carrier requirements, proceedings under the Iowa utilities commission,
including commission member attendance at hearings and informational meetings,
including allowing certain persons to intervene in such proceedings, including sanctions
on intervenors in contested cases, and permit, permit renewal, and operation limitations,
and including effective date and applicability provisions.
Reasonable people can—and do—disagree about when government, or a private
company acting with government approval, should be allowed to take private land. That
debate is as old as the Republic. At its core, it asks how we protect individual property
rights while still building the infrastructure—^roads, utilities, pipelines—^that modem life
depends on.
1 respect both sides of that debate. I've consistently said that if eminent domain is used, it
must be rare, fair, and a last resort.
But HF 639 isn't just about eminent domain. It goes much further—and in doing so, sets
a troubling precedent that threatens Iowa's energy reliability, economy, and reputation as
a place where businesses can invest with confidence.
For example, the bill would block a major pipeline project that uses only voluntary
easements. Southwest Iowa Renewable Energy (SIRE) is in the final stages of connecting
to a CO2 pipeline with not a single acre condemned. Yet new insurance mandates and an
arbitrary 25-year limit that HF 639 places on CO2 pipelines would effectively kill the
project^—despite the millions that have already been spent on its development. There is
STATE CAPITOL DES MOINES, IOWA 50319 515.281.5211 WWW.GOVERNOR.IOWA.GOV
no clear or logical basis for that time limit—and it would malce it difficult for companies
like SIRE to justify the additional investment.
I understand this was not the intent. Those who crafted the bill said they don't want to
stop CO2 pipelines that rely entirely on voluntary agreements. But that is exactly what the
bill does. For that reason alone, I cannot sign it.
Proponents of the bill have also voiced safety concerns about CO2 pipelines. I raised
those same concerns with the Trump Administration's Pipeline and Hazardous Materials
Safety Administration (PHMSA) under the Department of Transportation, which
"oversees the safety of roughly 5,300 miles of CO2 pipelines that have been in operation
for decades." PHMSA assured me that CO2 pipelines are subject to "robust regulations"
and "have an excellent safely performance record." In the last 20 years, there has only
been "one serious incident and no fatalities," and the "one serious incident was the result
of third party damage and was not related to pipeline operations." (PHMSA letter
enclosed).
But more broadly, the bill affects more than just CO2 infrastructure. It applies to all
"hazardous liquid pipelines," changing permitting rules across the board and injecting
uncertainty into critical energy projects. That includes oil, gas, and fertilizer pipelines —
the very systems that heat Iowa homes and power Iowa farms.
While I share the bill's goal of protecting landowners, good policy should draw clear,
careful lines. This bill doesn't. It combines valid concerns with vague legal standards and
sweeping mandates that reach far beyond their intended targets.
Iowa leads the nation in biofiiels. We are at the forefront of turning com into low-carbon
energy— a leadership position we risk losing if we block the infrastructure that makes it
possible. Other Midwestem states, like Nebraska, Illinois, and North Dakota are already
moving forward with carbon-capture projects that would put Iowa at a competitive
disadvantage if this bill became law.
That said, this debate has highlighted areas where real progress is possible. I agree we
can do more to limit the use of eminent domain, promote transparency, and ensure
responsible land restoration. While HF 639 includes a few helpful provisions, the
legislature debated—and ultimately declined—to adopt others that would have delivered
meaningful reform.
We can do better. And I'm committed to working with the legislature to strengthen
landowner protections, modemize permitting, and respect private property. In the
meantime, though, I will ask the Iowa Utilities Commission to implement two important
improvements immediately: requiring all commissioners to be present for live testimony,
and ensuring that at least one commissioner attends every informational meeting. These
changes—drawn from HF 639—^will improve oversight and transparency now, without
the need for new legislation.
For these reasons, I must respectfully disapprove House File 639 in its entirety.
Sincerely,
KimNRfeynold^^JGovernor of Iowa
cc: Secretary of the Senate
Clerk of the House
&
U.S. Department 1200 New Jereey Avenue, SE
of Transportation Washington, DC 20590
Pipeline and Hazardous
Materials Safety
Administration
June 9, 2025
The Honorable Kim Reynolds
Governor of Iowa
Iowa State Capitol
1007 East Grand Avenue
Des Moines, lA 50319
Dear Governor Reynolds:
Thank you for your letter regarding carbon dioxide (CO2) pipeline safety. I appreciate your
interest in this important topic and your concern for lowans.
The Department of Transportation's Pipeline and Hazardous Materials Safety Administration
(PHMSA) administers a national regulatory safety program for the approximately 3.3 million
miles of pipelines in the United States, including CO2 pipelines. The Pipeline Safety Act
authorizes PHMSA to regulate the transportation of gas, hazardous liquids, and CO2 by pipeline.
PHMSA regulations govern design, construction, operation, maintenance, emergency response,
personnel qualifications, public awareness, reporting, and many other functions related to the
safe operation of pipelines.
The pipeline projects proposed in Iowa would transport CO2 in a supercritical state, which means
a fluid phase consisting of more than 90 percent compressed CO2 molecules. Title 49 Part 195 of
the Code of Federal Regulations contains robust regulations for such pipelines. The CO2
pipelines proposed in Iowa would be governed by the full set of PHMSA safety regulations
contained in Part 195 and subject to Federal safety inspections and oversight.
PHMSA cuirently oversees the safety of roughly 5,300 miles of CO2 pipelines that have been in
operation for decades. These pipelines have an excellent safety performance record. PHMSA's
CO2 accident data indicate one serious incident and no fatalities in the last 20 years. PHMSA
considers a serious incident as one that results in fatality or injury requiring in-patient
hospitalization. The one serious incident was the result of third party damage and was not related
to pipeline operations.
The Honorable Kim Reynolds
Page 2
Your letter addressed a CO2 pipeline release that occurred on February 22, 2020 near Satartia,
Mississippi. PHMSA's investigation found this event was due to an unusual combination of
factors. The rupture was caused by land movement at a steep embankment following heavy rains.
Weather conditions and unique topography prevented the CO2 vapor from rapidly dispersing as it
would ordinarily, and poor communication between the pipeline operator and local responders
complicated the emergency response. Although numerous individuals were taken to the hospital,
only one was admitted and for reasons unrelated to the pipeline failure.
PHMSA's investigation also found that the pipeline operator violated several regulations. As part
of a Consent Agreement and Order, the operator paid $2,868,100 in civil penalties and agreed to
take numerous coiTective actions. PHMSA subsequently issued an advisory bulletin to all
pipeline operators reminding them of their responsibilities to monitor for, and address, earth
movement and other geological hazards in proximity to their facilities.
C02 pipelines have an overall robust safety track record. Over the last five years, C02 pipelines
have had an average reportable accident per thousand-mile rate of 0.88, lower than the general
hazardous liquid pipeline reportable accident rate of 1.46.
Thank you for taking the time to contact PHMSA about this important topic. Please let me know
if you require additional information, or have your staff contact Emily Wong, Director of
Governmental, International, and Public Affairs, by phone at 202-366-4831 or by e-mail at
emilv.wong@dot.gov.
Sincerely,
Ben Kochman
Acting Administrator
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House File 639
AN ACT
RELATING TO HAZARDOUS LIQUID PIPELINES, INCLUDING COMMON
CARRIER REQUIREMENTS, PROCEEDINGS UNDER THE IOWA UTILITIES
COMMISSION, INCLUDING COMMISSION MEMBER ATTENDANCE AT
HEARINGS AND INFORMATIONAL MEETINGS, INCLUDING ALLOWING
CERTAIN PERSONS TO INTERVENE IN SUCH PROCEEDINGS, INCLUDING
SANCTIONS ON INTERVENORS IN CONTESTED CASES, AND PERMIT,
PERMIT RENEWAL, AND OPERATION LIMITATIONS, AND INCLUDING
EFFECTIVE DATE AND APPLICABILITY PROVISIONS.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
Section 1. Section 6A.21, subsection 1, Code 2025, is
amended to read as follows:
1. Except as otherwise provided, for purposes of this
chapter and chapter 6B:
a. ^Aboveground merchant line" means "^merchant line" as
defined in section 478.6A, subsection 1, excluding those
merchant lines that are underground.
b. '^Agricultural land" means real property owned by a person
in tracts of ten acres or more and not laid off into lots of
less than ten acres or divided by streets and alleys into
parcels of less than ten acres, and that has been used for
the production of agricultural commodities during three out
of the past five years. Such use of property includes, but
is not limited to, the raising, harvesting, handling, drying,
or storage of crops used for feed, food, seed, or fiber; the
care or feeding of livestock; the handling or transportation
House File 639, p. 2
of crops or livestock; the storage, treatment, or disposal
of livestock manure; and the application of fertilizers,
soil conditioners, pesticides, and herbicides on crops.
Agricultural land includes land on which is located farm
residences or outbuildings used for agricultural purposes and
land on which is located facilities, structures, or equipment
for agricultural purposes. Agricultural land includes
land taken out of agricultural production for purposes of
environmental protection or preservation.
c» ^Commodity*' means a product that is used by an individual
consumer or is used to produce a product used by an individual
consumer.
d, '^Common carrier" means a commercial enterprise that holds
itself out as ready to engage in the transportation of goods
or passengers for hire, as a public employment, and not as a
casual occupation, and that undertakes to carry for all persons
indifferently, within the limits of the enterpriser's capacity
and the sphere of business required of it. For a carrier
engaged in the transportation of a hazardous liquid to qualify
as a common carrier, the carrier must establish by clear and
convincing evidence that it will transport a commodity for
one or more shippers not affiliated with the carrier who
will either retain ownership of the commodity or sell the
commodity to a party other than the carrier. A common carrier
determination by the federal energy regulatory commission shall
be controlling for purposes of this paragraph.
Gt '^Private development purposes'' means the
construction of, or improvement related to, recreational
trails, recreational development paid for primarily with
private funds, aboveground merchant lines, housing and
residential development, or commercial or industrial enterprise
development.
d-r ''^Public use" or "'public purpose" or "'public
improvement" does not include the authority to condemn
agricultural land for private development purposes unless the
owner of the agricultural land consents to the condemnation.
Sec. 2. Section 6A.24, Code 2025, is amended by adding the
following new subsection;
NEW SUBSECTION. 4. Notwithstanding subsection 3, an
House File 639, p. 3
acquiring agency proposing to acquire property by eminent
domain pursuant to a grant under chapter 479B shall have the
burden of establishing by clear and convincing evidence that
the proposed use meets the definition of a public use, public
purpose, or public improvement.
Sec. 3. Section 476.33, Code 2025, is amended by adding the
following new subsection:
NEW SUBSECTION. 5. For hearings initiated under this
chapter, all members of the commission shall be present during
any live testimony. If at any point during live testimony at
a hearing not all members are available for any reason, the
meeting shall pause until all members of the commission return.
Sec. 4. Section 478.2, subsection 2, paragraph a. Code 2025,
is amended to read as follows:
a, A member of the commission, the counsel of the
commission, or a presiding officer designated by the commission
shall serve as the presiding officer at each meeting, shall
present an agenda for such meeting^ which shall include
a summary of the legal rights of the affected landowners,
and shall distribute and review the statement of individual
rights required under section 6B.2A, subsection 1. At least
one member of the commission shall attend each informational
meeting. If at any point during the meeting no member of the
commission is available for any reason, the meeting shall pause
until at least one member of the commission returns. A formal
record of the meeting shall not be required.
Sec. 5. NEW SECTION. 478.34 Hearing — commission member
attendance.
All hearings initiated under this chapter shall follow the
attendance rules governing commission members as provided in
section 476.33, subsection 5.
Sec. 6. Section 479.5, subsection 3, paragraph a. Code 2025,
is amended to read as follows:
a, A pipeline company shall hold informational meetings
in each county in which real property or property rights will
be affected at least thirty days prior to filing the petition
for a new pipeline. A member of the commission or a person
designated by the commission shall serve as the presiding
officer at each meeting, shall present an agenda for the
House File 639, p. 4
meeting^ which shall include a summary of the legal rights
of the affected landowners, and shall distribute and review
the statement of individual rights required under section
SB.2A. At least one member of the commission shall attend each
informational meeting. If at any point during the meeting
no member of the commission is available for any reason, the
meeting shall pause until at least one member of the commission
returns. A formal record of the meeting shall not be required.
Sec. 7. NEW SECTION. 479.50 Hearing — commission member
attendance.
All hearings initiated under this chapter shall follow the
attendance rules governing commission members as provided in
section 476.33, subsection 5.
Sec. 8. Section 479B.4, subsection 3, Code 2025, is amended
to read as follows:
3. The pipeline company shall hold informational meetings
in each county in which real property or property rights will
be affected at least thirty days prior to filing the petition
for a new pipeline. A member of the commission, or a person
designated by the commission, shall serve as the presiding
officer at each meeting and present an agenda for the meeting^
which shall include a summary of the legal rights of the
affected landowners. At least one member of the commission
shall attend each informational meeting. If at any point
during the meeting no member of the commission is available for
any reason, the meeting shall pause until at least one member
of the commission returns. No formal record of the meeting
shall be required. The meeting shall be held at a location
reasonably accessible to all persons who may be affected by
granting the permit.
Sec. 9. Section 476.33, Code 2025, is amended by adding the
following new subsection:
NEW SUBSECTION. 5, The following persons are entitled
as of right to intervene in any proceeding conducted by the
commission:
a. A member of the general assembly.
b. An elected county or city official.
c. Any resident with a minimally plausible interest in the
proceeding.
House File 639, p. 5
Sec. 10. Section 474.3, Code 2025, is amended to read as
follows:
474.3 Proceedings.
1. The utilities commission may in all cases conduct its
proceedings, when not otherwise prescribed by law, in such
manner as will best conduce to the proper dispatch of business
and the attainment of justice.
2. The utilities commission shall not threaten or impose
sanctions against any intervenor unless the utilities
commission determines the intervenor engaged in conduct that
satisfies all the following conditions;
a. The intervenor was knowingly dishonest or in violation
of a criminal statute.
b. The intervenor caused actual injury to the utilities
commission, which injury is quantifiable and exceeds five
hundred dollars.
Sec. 11. NEW SECTION. 479B.13A Insurance requirements for
permittee.
1. In addition to the requirements of section 479B.13,
before a permit is granted under this chapter, the applicant
shall provide to the commission evidence of an appropriate
surety or insurance policy to ensure the payment of all damages
resulting from the construction and operation of the hazardous
liquid pipeline. The surety or insurance policy must be
sufficient to indemnify fully all of the following;
a. Any loss arising from or related to any negligent or
intentional discharge of content from the pipeline.
b. Any injury, including diminution of value of real
property, to affected properties due to the construction of the
pipeline or the accidental or intentional discharge of content.
c. The inability for a person to obtain insurance, or the
increased costs for a person to obtain or renew insurance, due
to the presence or construction of the pipeline.
2. If any person is unable to obtain insurance, or
experiences increased costs to obtain or renew insurance, as
a result of the presence or construction of the pipeline, the
pipeline owner shall either purchase insurance on behalf of
the person or reimburse the person for the person's increased
premium costs.
House File 639, p. 6
Sec. 12. Section 479B.16, subsection 1, Code 2025, is
amended to read as follows:
1. A pipeline company granted a pipeline permit shall^^
subject to subsection 4, be vested with the right of eminent
domain, to the extent necessary and as prescribed and approved
by the commission, not exceeding seventy-five feet in width for
right-of-way and not exceeding one acre in any one location in
addition to right-of-way for the location of pumps, pressure
apparatus, or other stations or equipment necessary to the
proper operation of its pipeline. The commission may grant
additional eminent domain rights whore when the pipeline
company has presented sufficient evidence to adequately
demonstrate that a greater area is required for the proper
construction, operation, and maintenance of the pipeline or for
the location of pumps, pressure apparatus, or other stations or
equipment necessary to the proper operation of its pipeline.
Sec. 13. Section 479B.16, Code 2025, is amended by adding
the following new subsection:
NEW SUBSECTION. 4. A pipeline company granted a pipeline
permit shall not be vested with the right of eminent domain
unless the pipeline company is a common carrier, as defined in
section 6A.21.
Sec. 14. NEW SECTION. 479B.34 Hearing — commission member
attendance.
All hearings initiated under this chapter shall follow the
attendance rules governing commission members as provided in
section 476.33, subsection 5.
Sec. 15. Section 479B.14, subsection 2, Code 2025, is
amended to read as follows:
2. The commission shall not grant an exclusive right to
any pipeline company to construct, maintain, or operate its
pipeline along, over, or across any public or private highway,
grounds, waters, or streams. The commission shall not grant
a permit for longer than twenty-five years. The commission
shall not renew a permit granted to a pipeline that transports
liquefied carbon dioxide and no pipeline that transports
liquefied carbon dioxide shall be permitted to operate for
longer than twenty-five years.
House Pile 639, p. 7
Sec. 16. EFFECTIVE DATE. This Act, being deemed of
immediate importance, takes effect upon enactment.
Sec. 17. APPLICABILITY. This Act applies to condemnation
proceedings for which the application filed under section 6B.3
is filed on or after the effective date of this Act.
PAT 6RASSL]
Speaker of the House
AMY SINglffilR
President of the Senate
I hereby certify that this bill originated in the House and
is known as House File 639, Ninety-first General Assembly.
^ aApproved , 2025
MEGHAN NELSON
Chief Klerk o^Vthe House
KIM*H^NOLDS
Govern