(Radio Iowa) – A bill that would tax the liquid carbon dioxide flowing through a proposed pipeline has cleared an Iowa Senate committee, although lawmakers who advanced the bill say they’ll work on the mechanics of how the state tax would be assessed. Senator Dan Dawson, a Republican from Council Bluffs, says he’s interested in having the state collect taxes from the project.  “The State of Iowa has invested substantially in the ethanol industry,” Dawson said. “…We’ve can’t just exempt things up front, let a bunch of revenue generate and then all the monies that we spent on these things, nothing is ever returned back to the taxpayer.” Jake Ketzner, a lobbyist for Summit Carbon Solutions — the pipeline developer, says the company opposes the bill.

“Just like any other tax, it increases the cost of doing business and it increases the cost of the service we would provide our customers, which in our case is the ethanol plant producers,” Ketzner said. “We’re rather see ethanol producers paying farmers more for their corn instead of paying for a new tax to the government.” Dawson, the chairman of the Senate Ways and Means Committee, questions why Summit should get a special “carve out” after telling the Iowa Utilities Commission its project is a benefit to the public. “You can’t just say it’s a public benefit and then have a declaration made by the IUC for eminent domain and then the public doesn’t benefit,” Dawson said. Pipeline critics urged legislators to focus instead on a different bill focused on eminent domain, to protect the property rights of landowners who don’t want the pipeline on their farms.

Kathy Carter owns land in Floyd County that’s along the proposed pipeline route. “It’s a pat ’em on the head, make ’em feel good gesture,” Carter said. “Throw Iowans a bone and they’ll shut up.” Julie Glade, a Wright County landowner, also testified during the Senate subcommittee hearing. “I guess unless you in the senate know something we don’t, there is no pipeline yet. Why are you looking at a revenue stream from a pipeline project to nowhere right now? It seems like Senate leadership and the governor for some reason want this project to happen so badly, they have to manufacture reasons to push ahead.”

The bill is sponsored by Senate Majority Leader Mike Klimesh. It would set two tax rates, one for carbon that’s eventually used to extract oil from underground reserves and a higher rate for liquid carbon directed to other uses.