Watchdogs troubled by ties to Iowa government by those behind carbon dioxide pipeline

Summit Carbon Solutions, the company behind a huge carbon pipeline proposal in the U.S. Midwest, has close ties to Iowa officials and regulators charged with approving a large part of its route, according to a Reuters review of public documents and company websites.

The proposed Midwest Carbon Express pipeline would connect customers such as ethanol plants in Iowa and Minnesota to a carbon storage facility in North Dakota. Iowa would host the longest portion of the pipeline.

At least four members of Summit's leadership have direct links to the Iowa governor's office or the Iowa Utility Board, both of which could influence the future of the roughly 2,000-mile pipeline, according to the review. These include the top individual donor to Gov. Kim Reynolds and former Iowa Gov. Terry Branstad, who nominated two of the board's three commissioners, including its chair.

The links between Summit's leadership and public officials in Iowa have raised worries among ethics watchdogs and environmental groups over whether project opponents will get a fair hearing.

"I would say there is a valid concern on the part of the [pipeline opponents] that they're not getting equal treatment by the government," said Robert Maguire, research director at the watchdog group Citizens for Responsibility and Ethics in Washington, who examined the Reuters reporting.

Ames, Iowa-based Summit said it was following legal and ethics guidelines and that it is typical for former officials and regulators to take private-sector roles in which their expertise is relevant.

"It's not surprising that the company has attracted a strong bipartisan team with a diverse set of experiences in agriculture, engineering and public policy," Summit spokesman Jesse Harris said.

The project would help the biofuels industry secure a place in a climate-friendly future by reducing its carbon footprint, while also taking advantage of federal and state subsidies for carbon capture and low carbon fuels.

Landowners have expressed concern that the pipeline could reduce farm yields, lower property values or pose a public safety threat if it leaks.

The Reuters review found that Bruce Rastetter, head of Summit's parent company Summit Agricultural Group, is Reynolds' top individual donor. Rastetter gave nearly $150,000 to the Republican governor from 2018 to 2022, according to records maintained by the National Institute on Money in Politics.

Opponents are concerned that Reynolds would veto any bills critical of the pipeline, including one recently passed in the state House that would delay the project's permitting process.

Summit's senior policy adviser is Branstad, a Republican who also served as U.S. ambassador to China during President Donald Trump's administration. During Branstad's 22-year tenure as Iowa governor, he appointed the utility board's chair and another of its three commissioners. The board will decide whether to permit the project.

Utility board spokesman Don Torney said the board members are held to ethics standards and would decide for themselves whether there was a conflict of interest in their participation in the pipeline proceedings "at the appropriate time."

Alex Murphy, spokesman for Reynolds, said the governor conducts "a full, fair and impartial review of every bill that makes it to her desk."

Rastetter's Summit Agricultural Group did not respond to a request for comment.

Jess Mazour, an organizer with the Sierra Club environmental group, said the relationships between Summit and Iowa officials made her worry that public opposition to the project could be ignored.

Some 98.9% of comments in the Summit pipeline docket at the Iowa Utility Board were opposed to the pipeline in March.

Another pipeline company, Navigator CO2 Ventures, is also proposing a carbon pipeline through the region. The main attorney representing Navigator, Samantha Norris, was once general counsel of the utility board, according to the the board's docket.

Norris directed Reuters to Navigator for comment. The company called concerns about the relationship "baseless."