IRFA - Iowa Renewable Fuels Association

06/11/2025 | Press release | Distributed by Public on 06/11/2025 17:34

Governor Reynolds’ Veto of HF 639 Prevents Increased Energy Prices for Iowans and Farmers

Bill Would Have Also Effectively Banned CCS Pipeline Projects, Slamming the Door on Major New Ag Markets at the Exact Time Farmers Are Hurting

Contact: Monte Shaw
515-419-9755

WEST DES MOINES, IA - Today Iowa Governor Kim Reynolds exercised her constitutional authority to veto House File 639. The flawed legislation was widely opposed by farmer organizations, trade unions, energy companies, the American Petroleum Institute, renewable fuels producers, and landowners. If allowed to become law, the bill would have made permitting any and all projects before the Iowa Utilities Commission (IUC) much more difficult and would have required all projects to obtain insurance policies that do not exist anywhere in the world.

"IRFA is deeply grateful for Governor Reynolds' veto of HF639," said Iowa Renewable Fuels Association (IRFA) Executive Director Monte Shaw. "This is a classic example of why our system of government has checks and balances. Any thoughtful review of this bill would determine that it would lead to higher energy prices for Iowans, hamper future economic development, hold back job creation, and stifle new markets for Iowa farmers. IRFA thanks Gov. Reynolds for listening to Iowans, studying the actual legislation, and ignoring the rhetoric that was as inaccurate as it was loud."

In addition to opening up all projects subject to an IUC permit to "death by lawsuit" and untenable insurance requirements, HF 639 also would have effectively banned carbon capture and sequestration (CCS) projects in the state - even those not exercising eminent domain. CCS is key to unlocking huge new markets around the world that demand ultra-low carbon ethanol. CCS is a key part of President Trump's energy dominance agenda and has been highlighted by White House statements and Presidential comments to Congress.

"After enduring the largest two-year income drop in history, farmers are desperate to find new markets," said Shaw. "CCS, the key to unlocking massive new demand for ethanol and corn around the world, is moving forward in several states and around the world. The question is not whether CCS will happen, but rather whether Iowa will be left behind. For 25 years Iowa has benefited greatly from being the most profitable place in the world to convert corn into ethanol. Once the Tallgrass CCS pipeline in Nebraska begins operations later this year, that will no longer be the case. Thanks to today's veto, we hope that is a short-lived situation. Otherwise, there will be very real, very severe economic consequences for Iowa."

The debate over CCS will undoubtedly continue in Iowa. For three years, IRFA attempted to work with parties on legislation to strengthen property rights, improve the IUC permitting process, and allow a path forward for CCS. All attempts to find a middle ground were rejected by state legislators seeking only to kill CCS projects.

"Despite rhetoric from supporters of the bill, it failed to enhance property owner rights and simply sought to kill all CCS projects," said Shaw. "The legislation does nothing to enhance support for land restoration, soil compaction remediation, tile replacement, or lost yields. It did nothing to make the IUC process more flexible to avoid the use of eminent domain. Hopefully today sends a message that those interested in progress, not posturing, should work towards a middle ground approach that enhances landowner rights and protections but would allow CCS projects a path forward. IRFA stands ready."

CCS, a proven technology used around the world for over four decades, 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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