A Guide to 2026 CO2 Legislation in the Midwest
Share this Page
Across the Midwest, legislation has been introduced to address carbon capture pipeline and injection schemes. Iowa, Illinois, Nebraska, and Indiana each have pending legislation. Below is a breakdown of where things stand in each state. As additional states introduce legislation, we will update this post.
Illinois
Bills to Support
Introduced by: Sen. Michael Halpin
Referred to: Energy and Public Utilities
Provides that an owner or operator of a pipeline designed, constructed, and operated to transport carbon dioxide to which the Illinois Commerce Commission has granted a certificate under the Carbon Dioxide Transportation and Sequestration Act shall not seek or exercise eminent domain authority from the Commission.
Indiana
Bills to Support
Introduced by: Sen. Rick Niemeyer, Sen. Spencer Deery
Referred to: Passed Senate 36-12, sent to House Utilities, Energy and Telecommunications
A storage operator may not operate a carbon sequestration project that transports or stores carbon dioxide outside the county where the carbon dioxide is generated unless the project is approved in a public meeting.
Introduced by: Sen. Rick Niemeyer, Sen. Spencer Deery.
Referred to: Utilities Committee.
An application for a carbon dioxide transmission pipeline certificate of authority must include: (1) a risk assessment; and (2) a carbon dioxide injection estimate.
Provides that when determining compensation in eminent domain proceedings, the perceived risk of certain hazardous conditions must be taken into account.
Establishes a carbon sequestration pilot project fee program, and specifies certain conditions in relation to the fee money.
Provides that a transfer of ownership in regard to a carbon sequestration pilot project does not relieve a prior operator from liability for any negligence or willful misconduct that occurred before the transfer.
Requires the Department of Natural Resources to inspect a carbon sequestration pilot project.
Alters the threshold of consent one must obtain in order to use eminent domain or integration in relation to carbon sequestration to require 70% voluntary support from targeted county residents.
Introduced by: Rep. Tim Yocum
Referred to: Utilities, Energy and Telecommunications Committee
Eliminates eminent domain authority for: (1) Acquiring a right-of-way for the construction or operation of a pipeline for transporting carbon dioxide or other carbon oxides. (2) Acquiring underground strata for a well or monitoring facility for underground storage of carbon dioxide or other carbon oxides. (3) A carbon sequestration pilot project or other underground carbon dioxide or other carbon oxides storage project.
Bills to Oppose
Introduced by: Rep. Ed Soliday
Referred to: Utilities, Energy and Telecommunications Committee and passed.
Requires the Natural Resources Commission to obtain the primary enforcement authority from the United States Environmental Protection Agency to regulate Class VI underground injection wells. Grants the Commission authority to adopt rules to regulate Class VI underground injection wells. Provides for the mechanism and regulatory scheme for underground storage of carbon dioxide in Indiana but excludes the carbon sequestration pilot project (aka Wabash Valley Resources) from application of the new requirements.
Introduced by: Rep. Doug Miller
Referred to: Judiciary Committee
Provides that unless expressly authorized by another statute, a municipality or county may not adopt, enforce, or maintain an ordinance, order, or rule regulating conduct in a field of regulation that is occupied by a provision in specified titles
Iowa
Bills to Support
Introduced by: Judiciary Committee
Referred to: Passed House 64-28. Referred to Senate Commerce Committee.
Prohibits the use of eminent domain for carbon oxide pipelines.
Introduced by: Sen. Jeff Taylor
Referred to: Commerce Committee
Requires pipeline companies seeking the right of eminent domain to disclose investor information.
Bills to Oppose
Introduced by: Sen. Mike Klimesh
Referred to: Commerce Committee
Asserts that eminent domain for hazardous liquid pipelines should be a last resort. In the event eminent domain powers are requested, a pipeline company must submit evidence to the Iowa Utilities Commission detailing negotiations and why eminent domain is the best option.
Requires targeted landowners receive notification that includes a copy of the template easement and a description of the methodology to be used in determining the value of the easement for initial offers.
Allows a pipeline company to pursue easements outside of the property of notified landowners.
Provides that a landowner may decline further communication with a pipeline company by verbal or written notice to the pipeline company and by submitting the notice to the Iowa Utilities Commission. However, the pipeline company is still allowed to send easement offer letters.
Asserts that a pipeline company shall seek to execute contracts for the voluntary conveyance of easements within one year of initial communication with the landowners within a particular county.
Requires the following to be kept confidential following six months of attempted easement negotiation: 1) The parcels for which the company has failed to reach easement agreements and for which eminent domain is sought, or that would, if an easement were granted, provide an alternative to each eminent domain parcel, and the names of the owners of those parcels. 2) A list of the contacts made relating to each parcel, including the date and method of each contact, and a brief description of any issues causing an impasse for that parcel.
Nebraska
Bills to Support*
Introduced by: Sen. Glen Meyer
Referred to: Natural Resources Committee
Hearing scheduled Wednesday, January 28, 2026 at 11:30 at the state capitol in room 1023.
Gives authority to the Nebraska Oil and Gas Commission for approving applications for the construction of CO2 pipelines and prohibits the use of eminent domain for the purposes of acquiring right-of-way, constructing CO2 pipelines, and operating CO2 pipelines. The bill also requires CO2 storage operators to obtain the consent of all persons who own reservoir estates within the storage reservoir.
*While Bold supports restricting the use of eminent domain for CO2 pipelines, we oppose giving the Oil and Gas Commission approval authority.
