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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.