SB 72 – Carbon Dioxide Pipelines and Eminent Domain

Ted Evanoff, writing for the Indy Star, and Gary Welsh at Advance Indiana have some good coverage of the Senate defeat of SB 72, introduced by Sen. Gard, concerning eminent domain for a coal gasification pipeline.

The bill establishes procedures for DNR to issue a certificate of authority for a carbon dioxide transmission pipeline, allowing – among other things – the use of eminent domain for construction and maintenance of the pipeline. The permit can be issued for a pipeline with a carbon monoxide source with a production facility in Indiana that is transmitting the carbon monoxide out of state. On February 8, it was defeated by a vote of 21 to 28.

Ted Evanoff’s story reports that the bill was necessary to clear the way for a special pipeline sought by investors to move carbon dioxide away from the southwestern Indiana plant to buyers on the Gulf Coast.

Without legislation allowing eminent domain for such pipelines, lead investor Leucadia National Corp. doubts it could secure the federal guarantees on construction loans for the $2.6 billion gasification plant it has proposed at Rockport.

Gary Welsh goes on and connects some dots, painting a picture with a lot of cozy relationships among rich people and chides the Star for not making those connections. He also notes the oddity that oversight on this is given to the Department of Natural Resources instead of the Indiana Utility Regulatory Commission which would normally be expected to have oversight of something of this nature.

Sen. Gard suggests that the defeat was caused by a coalition of Democrats who are suspicious of any deal brokered by Gov. Daniels and ultra-conservatives who don’t like anything that says “eminent domain.”