DES MOINES, Iowa — Iowa Governor Kim Reynolds vetoed a bill restricting eminent domain on carbon capture pipelines in Iowa Wednesday.
The bill would not have been a full ban on eminent domain for those types of pipeline but limited its usage, make companies carry more insurance and place new guidelines on the Iowa Utilities Commission.
A group of landowners urged Reynolds to sign the bill saying it gave them more protections over their own land.
Iowa ethanol industry leaders and carbon capture pipelines wanted her to veto it, saying it could push biofuels investments outside of Iowa.
Reynolds said signing the bill would have set a troubling precedent that “threatens Iowa’s energy reliability, economy, and reputation as a place where businesses can invest with confidence.”
She said this bill could have blocked a carbon capture pipeline project that had entirely relied on people who signed voluntary agreements to use their land.
To read Reynolds full statement, click here.
Landowner groups said they “outraged” at Reynolds’ veto.
“The Governor’s decision to veto the bill is also a slap in the face to the 78% of Iowans who told the Des Moines Register in 2023 that they oppose the use of eminent domain to seize landowners’ property for CO2 pipelines,” Mary Powell said in a statement. Powell is a landowner from Shelby County and a team member for the group Iowa Easement.
“It’s no surprise that Gov. Reynolds chose to stand with big monied interests instead of her constituents,” said Emma Schmitt, the Pipeline Fighters Director at Bold Alliance. ” Landowners have proven over the past four years that they don’t give up and Gov. Reynolds just ensured the fight to protect Iowans’ property rights will continue for the foreseeable future.”
Special session possibility
Republican Iowa House Speaker Pat Grassley is calling for a special legislative session, to attempt to override the governor’s veto.
Speaker Grassley released a statement a short time after news of the governor’s veto saying he sent a request to all members to sign a petition to reconvene the legislature in a special session to override the veto.
“This veto is a major setback for Iowa. It is a setback not only for landowners who have been fighting across Iowa, but for the work the House of Representatives has put in for four years to get legislation like HF 639 passed,” Grassley said. “We will not stop fighting and stand firm on our commitment until landowners’ in Iowa are protected against Eminent Domain for private gain.”
Senate Majority Leader Jack Whitver, the Republican leader of the Iowa Senate, responded saying he supported the governor’s decision. He doubts a special session would happen.
“Based on the votes on that bill in the Iowa Senate, a significant majority of our caucus supports a better policy to protect landowner rights,” Whitver said. “I expect that majority of our caucus would not be interested in any attempt to override her veto.”
Fourteen Democrats joined 13 Republicans in the Iowa Senate to get the bill over the finish line. Twenty-one Republicans voted against it in the Senate.
Other bills signed & vetoed
Gov. Reynolds vetoed one other bill and signed several bills into law Wednesday. It is the final set of bills from the 2025 legislative session.
She vetoed a bill that would allow Iowa doctors to prescribe a synthetic version of psilocybin, the psychedelic compound found in mushrooms if the FDA ever approves the drug in the future.
“I recognize and respect the growing body of research into the potential therapeutic benefits of psilocybin for mental health conditions such as depression and PTSD.,” the governor said in a statement. However, this bill, in its current form, moves ahead of where our public health systems regulatory frameworks, and law enforcement infrastructure are prepared to go at this time.”
Reynolds also signed a number of bills, including one that reforms Pharmacy Benefit Manager system. The bill would require pharmacies to be reimbursed at the national or state average cost of the drug and wouldn’t allow PBM’s to limit what pharmacy Iowans use as long as the provider participates in that persons health plan. Republicans say it will help lower the cost of drugs and keep rural pharmacies open. Democrats said they were concerned it would actually increase prices for Iowans.
