Federal appeals court faces backlash after siding with controversial pipeline project: 'Inconsistent with state law'

Yahoo

13-06-2025

Prompting sharp criticism, a federal court of appeals has sided with a pipeline company over local officials and residents, striking down ordinances aimed at regulating pipelines within their communities, the Gazette reported.
Summit Carbon Solutions is seeking to build a pipeline that would transport sequestered carbon dioxide across five states, including Iowa. In response to Summit's plan, two Iowa counties, Shelby and Story, passed laws that put restrictions on pipeline construction within their borders, according to the appeals court decision.
Summit Carbon Solutions then sued the two counties, arguing that both federal and state law preempted local governments' ability to regulate pipeline construction in their own backyards.
Under the Supremacy Clause of the U.S. Constitution, a federal law preempts any state law that is in conflict with it. Similarly, under Iowa state law, a law passed by the Iowa general assembly takes precedence over any local law.
In 2023, a federal district court sided with Summit, ruling that the federal Pipeline Safety Act and Iowa state law both superseded the county ordinances, effectively striking them down. Shelby and Story counties then appealed the decision, taking the case to the U.S. Court of Appeals for the Eighth Circuit.
On June 5, a three-judge panel for the Eighth Circuit released its opinion upholding the lower court ruling.
"The PSA preempts the Shelby and Story ordinances' setback, emergency response, and abandonment provisions," the court found, referring to the federal Pipeline Safety Act.
According to the Gazette, the court also found that the ordinances "would prohibit a pipeline company from building in a certain location, even if the (Iowa Utilities Commission) permits construction there. That possibility makes the pipeline company permitting requirements inconsistent with state law and thus preempted."
Unless the Iowa counties appeal the decision to the U.S. Supreme Court, their pipeline regulations will remain struck down.
This case was significant because it tested the ability of local residents and their representatives in municipal government to challenge the presence of massive, dangerous pipelines passing through their communities.
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Summit Carbon Solutions' plan involved building a 2,500-mile pipeline that would transport carbon captured from ethanol plants across five different states all the way to North Dakota, where it would be pumped underground, according to the Gazette.
Over the course of those 2,500 miles, about the distance from San Francisco to New York City, the pipeline would pass through countless local communities. These communities are the ones who bear the brunt of such pipeline projects: the risks to human health, the property damage, the environmental degradation, and the ever-present-danger of a pipeline disaster.
And yet, as the appeals court decision showed, any effort by residents and municipal governments to use local law to regulate the presence of pipelines in their communities will likely be challenged and potentially struck down.
After the Eighth Circuit released its decision, Summit applauded the ruling, saying it "supports a consistent, lawful permitting process for critical infrastructure projects like ours," according to the Gazette.
While the appellate ruling has frustrated local efforts to have a say in whether and how pipelines pass through their communities, the decision explicitly did not block every available avenue.
"While we had hoped for a more decisive ruling affirming local control, the Court clearly acknowledged that counties can consider safety and implement zoning ordinances," said Emma Schmit, a member of Pipeline Fighters, a group opposed to the project, in a press release.
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