Iowa Senate Advances Bill to Tax Carbon Dioxide Pipelines
The Iowa Senate is advancing Senate File 2069, a bill proposing a tax on carbon dioxide transported through pipelines. Introduced by Senate Majority Leader Mike Klimesh, the bill suggests a tax of $2.50 per metric ton for CO2 transported, with a reduced rate of $1 for CO2 used in enhanced oil recovery. The tax revenue would go to Iowa's Taxpayer Relief Fund. The bill has faced opposition from landowners and environmental advocates, citing concerns over property rights and the bill's implications for eminent domain. The proposed tax is part of ongoing discussions surrounding carbon pipeline projects in Iowa.
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The Iowa Senate is advancing Senate File 2069, which proposes a tax of $2.50 per metric ton on carbon dioxide transported through pipelines, dropping to $1 for CO2 used in enhanced oil recovery. Introduced by Senate Majority Leader Mike Klimesh, the bill aims to facilitate carbon pipeline construction while minimizing eminent domain issues.
Revenue would support Iowa's Taxpayer Relief Fund. Critics, including landowners and environmentalists, argue it does not address property rights adequately and could be premature as no pipelines are currently operational. The bill's advancement follows discussions around carbon capture projects, notably by Summit Carbon Solutions.
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