House Passed Legislation Will Derail Carbon Capture Technology, Hurting Iowa Ethanol Producers, Farmers, and State Economy

IRFA Seeks Fair and Equitable Path Forward

Contact: Monte Shaw

JOHNSTON, IOWA – Today the Iowa House passed amended legislation that would create a de facto ban on new projects that allow Iowa ethanol producers to install carbon capture and sequestration (CCS) technology. While an amendment removed several problematic provisions, the bill still singles out CO2 pipelines for strict regulations that would not be applied to pipelines carrying flammable or explosive liquids.

“We are disappointed that the Iowa House singled out CCS projects with what in reality is an effective ban,” stated Iowa Renewable Fuels Association (IRFA) Executive Director Monte Shaw. “If this is about property rights, why doesn’t the legislation impact all projects? If this is about safety, why doesn’t the bill apply to pipelines that carry explosive or flammable substances? Singling out CCS is a mistake for Iowa’s future. This bill will hurt Iowa ethanol production, which hurts Iowa corn prices, which hurts Iowa farmers and the economy.”

IRFA recently released a study that found without viable access to CCS, Iowa could see 75 percent of its ethanol production migrate to states that facilitate sequestration. Losing nearly 3.5 billion gallons of Iowa ethanol production would reduce the local corn grind by over one billion bushels. Phase 2 of the study found that the loss of local corn demand would reduce the profitability of corn production in Iowa by an average of 85 percent, resulting in over $1 billion of lost income for Iowa corn farmers.

“IRFA will continue to fight for a fair and equitable path forward for CCS technology in the Iowa Senate,” continued Shaw. “IRFA members are largely Iowa farmers and landowners. They understand the emotions at play in this type of debate. It is important to remember that a super majority of landowners actually impacted by the CCS projects have already signed voluntary easements.”

IRFA does not object to the provisions in the bill that clarify and expand landowner rights that apply to all projects that come before the IUB.

The Iowa Renewable Fuels Association represents the state’s liquid renewable fuels industry and works to foster its growth. Iowa is the nation’s leader in renewable fuels production with 42 ethanol refineries capable of producing 4.5 billion gallons annually – including 34 million gallons of annual cellulosic ethanol production capacity – and 11 biodiesel facilities with the capacity to produce 410 million gallons annually. For more information, visit the Iowa Renewable Fuels Association website at: