By Effectively Banning CCS Pipeline Projects, Legislation Slams the Door on Major New Ag Markets at the Exact Time Farmers are Hurting 

Contact: Emma Koehler
515-252-6249

WEST DES MOINES, IA – Today the Iowa Senate voted 27-22 to pass House File 639, effectively banning carbon capture and sequestration (CCS) projects in the state. The vote goes against farmers and ethanol producers seeking to unlock huge new markets around the world that are demanding ultra-low carbon ethanol.

“IRFA is deeply disappointed by today’s vote,” said Iowa Renewable Fuels Association (IRFA) Executive Director Monte Shaw. “After enduring the largest two-year income drop in history, farmers are desperate to find new markets. CCS is the key to unlocking massive new demand for ethanol and corn around the world. For three years, IRFA has sought to work on a middle ground approach that enhanced landowner rights and protections but would allow CCS projects a path forward. While a majority of the Iowa Senate turned their back on Iowa agriculture tonight, IRFA thanks those who stood for common sense.”

House File 639 essentially bans all CCS projects, even those that might achieve 100% voluntary easement, by putting permit restrictions in place making them not economically viable. Despite rhetoric from supporters of the bill, it fails to enhance property owner rights and targets only CCS projects. All other future privately owned projects, including crude oil, wind and solar, would not be impacted by the bill. The legislation does nothing to enhance support for land restoration, soil compaction remediation, tile replacement, or lost yields.

“For 25 years, Iowa has benefited greatly from being the most profitable place in the world to convert corn kernels into ethanol,” added Shaw. “Once the Tallgrass CCS pipeline in Nebraska begins operations later this year, that will no longer be the case. If this legislation goes into effect, there will be very real, very severe economic consequences as others, like Nebraska, North Dakota, and Brazil, move forward with CCS. Iowa is poised to be left behind. Expansion plans will be shelved, and we could see additional plant closures over time as the CCS-enabled plants elsewhere expand. IRFA members will be asking Gov. Reynolds to stand up for their future and the future of rural Iowa by vetoing this misguided legislation.”

According to the Farm Journal March Ag Economists’ Monthly Monitor, 62% of the 70 ag economists from across the nation confirm the economic decline is expected to continue into 2025. CCS is the most cost-effective and impactful tool to unlock new markets that demand ultra-low carbon ethanol, such as heavy-duty engines, ocean-going vessels, rail and sustainable aviation fuel (SAF). Estimates for SAF alone are pegged at 100 billion gallons annually worldwide, potentially increasing corn grind by billions of bushels.

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 4.7 billion gallons annually – including 34 million gallons of annual cellulosic ethanol production capacity – and 10 biodiesel facilities with the capacity to produce 416 million gallons annually. For more information, visit the Iowa Renewable Fuels Association website at: www.IowaRFA.org.

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