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Re:

Iowa Senate Bills Proposed a CO2 Pipeline Tax and Wider Easement Corridors

Iowa’s 2026 proposals separated two pipeline questions: where companies could seek voluntary easements and whether liquefied CO2 transportation should be taxed. Neither bill became law during the session.
From TheFinanceBase Team4 min to read
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Iowa Senate Files 2067 and 2069 proposed two different changes affecting carbon dioxide pipelines: broader areas for companies to seek voluntary land-use agreements, and a tax on liquefied CO2 transported by pipeline. Neither proposal became law during the 2026 session: Radio Iowa reported the plan did not receive a vote, and Senate Majority Leader Mike Klimesh said he intended to offer it again in 2027.

What would Iowa Senate File 2067 change for CO2 pipeline landowners?

SF 2067 proposed expanding where a pipeline company could seek voluntary easements. According to Iowa Public Radio’s January 21, 2026 report, the proposed search area would include land within five miles on either side of a proposed route, as well as any location in a county where the company held an informational meeting.

The bill also proposed allowing landowners to opt out of being contacted except by mail. Before requesting eminent domain, a company would have to explain to the Iowa Utilities Commission why it could not route around landowners who did not want a pipeline on their property.

Why supporters said a wider corridor could matter

Klimesh presented the broader search area as a way for companies to negotiate with more willing property owners and route around unwilling ones. In his January 12 Senate remarks, he described the corridor change as expanding opportunities for voluntary easements. Iowa Public Radio reported that he said the proposals could “all but eliminate the need” for eminent domain. That was his stated expectation, not a demonstrated result of the bill.

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Why opponents questioned landowner protections

Jess Mazour, a Sierra Club conservation program associate, argued that the proposal did not guarantee a landowner could refuse a pipeline. Her objection focused on property rights and the ability to say no. Written public comments submitted to the Legislature also raised concerns about the county-wide search area and eminent domain; those comments represent individual views, not legislative findings.

Summit Carbon Solutions spokesperson Sabrina Zenor said the company was neutral on the bill and wanted clarity, respect for landowner interests, and continued economic opportunity. Iowa Public Radio also reported support for Klimesh’s bill from the American Carbon Alliance and the Iowa Renewable Fuels Association. Those are the organizations’ positions, not evidence that the proposed process would produce a particular outcome.

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Would Iowa tax carbon dioxide transported through pipelines?

SF 2069 proposed a tax on the transportation of liquefied carbon dioxide by pipeline—not a tax on the pipeline structure itself. The introduced bill text set out these proposed rates:

CO2 transportation covered Proposed rate in introduced SF 2069
Liquefied CO2 transported within or through Iowa by pipeline $2.50 per metric ton
CO2 transported for enhanced oil recovery $1 per metric ton

These are rates in the introduced 2026 bill text, not enacted tax rates. The proposal described the tax as additional to other state taxes, assigned administration to the Iowa Department of Revenue, and included reporting and penalty provisions. The Iowa Legislature’s introduced SF 2069 text is the source for those terms; a later or reintroduced version could differ.

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Klimesh described the tax as a potential source of state revenue and connected it to his broader income-tax policy goals. The cited materials do not provide a fiscal analysis estimating how much revenue the tax would raise or establish that it would reduce income taxes.

How the two bills differed

Measure Policy mechanism Who would be directly affected Key proposed terms
SF 2067 Expanded the area for voluntary easement negotiations and set out related contact and routing provisions Landowners and pipeline companies Five miles on either side of a proposed route, plus county-wide search space tied to an informational meeting
SF 2069 Taxed liquefied CO2 transportation by pipeline Pipeline companies; state tax administration and revenue $2.50 per metric ton generally and $1 per metric ton for enhanced oil recovery in the introduced text

The measures addressed separate questions. SF 2067 concerned how companies could look for routes and voluntary agreements; SF 2069 concerned whether Iowa would tax CO2 transportation.

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Did the Iowa Senate pass the pipeline bills?

No. The available 2026 record and later session reporting do not establish enactment. The official SF 2069 bill history records referral to Ways and Means and a subcommittee recommendation for passage on February 4, 2026. That was not full Senate passage or enactment. Radio Iowa reported on May 21, 2026, that Klimesh’s pipeline plan had not come up for a vote during the session and that he planned to offer it again in 2027. Any later proposal would need to be checked on its own terms and status.

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Key dates in the 2026 proposals

  • January 12: Klimesh’s Senate Journal remarks previewed expanded corridors for voluntary easements and a CO2 transportation tax. Iowa Senate Journal.
  • January 21: SF 2067 and SF 2069 were introduced. SF 2069 was referred to Ways and Means; Iowa Public Radio reported on the corridor proposal and differing stakeholder positions.
  • February 4: An SF 2069 subcommittee recommended passage, a committee-stage action rather than enactment.
  • May 21: Radio Iowa reported that the plan had not received a vote during the 2026 session and that Klimesh planned to bring it back in 2027. Radio Iowa’s follow-up.

Product prices and availability are accurate as of the date/time indicated and are subject to change. Any price and availability information displayed on Amazon at the time of purchase will apply.

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