The 2025 Iowa legislative session officially concluded on May 15. The session, which lasted 123 days, included deliberation on several clean energy issues. CEDI addressed many of these issues in a series of policy briefs prior to the session. In addition, CEDI established a Key Advocate Network (KAN) that met bi-weekly throughout the session and received periodic action alerts regarding proposed legislation.
CARBON PIPELINES
The issue that got the most attention in the press was the passage of a bill limiting eminent domain for carbon pipelines, which restricts the use of eminent domain unless the pipeline company is a common carrier. The bill also requires clear evidence of public benefit and sets new insurance requirements. Governor Reynolds vetoed the bill on June 11.
GOVERNOR’s OMNIBUS ENERGY BILL
CEDI’s Key Advocate Network was more engaged with issues that received less publicity in the press but were quite significant for Iowa ratepayers. Chief among these was a 53-page energy bill (SF 585 and HF 834) proposed by Governor Reynolds that would have:
- Granted incumbent utilities the right of first refusal to build new transmission lines;
- Established a flexible rates tool to help electric utilities attract new, large energy-using customers like data centers;
- Required rate-regulated electric utilities to file a non-contested integrated resource plan (IRP) with the Iowa Utilities Commission once every five years;
- Allowed natural gas peaking plants and small modular nuclear reactors to qualify for advanced ratemaking principles; and
- Reduced the minimum generation capacity size to qualify for advance ratemaking principles, which have historically resulted in higher returns on equity awarded to shareholders and thus higher costs for ratepayers.
CEDI tried to improve Governor Reynolds’ proposed bill–especially the weak resource planning section that favored the interests of utilities over ratepayers. CEDI championed a robust approach to Integrated Resource Planning (IRP) to ensure that ratepayers only pay for what they truly need, not whatever the utility would like to invest in.
Whereas Governor Reynolds supported uncontested resource plans by utilities with little to no public input or review, CEDI supported the development and review of resource plans via “contested” dockets at the Iowa Utilities Commission where stakeholders, ratepayers, and the Consumer Advocate are granted maximum participation, discovery, and investment modeling rights.
As the session approached its end, and multiple concerns were raised about different sections of the bill, it became clear that the Reynolds administration was not willing to revise its proposed legislation. As a result, CEDI joined with key consumer groups like AARP-Iowa and various business groups to urge legislators to “kill the bill” for this session due to concerns that it would raise the cost of energy for Iowa ratepayers. Key to this initiative was a two-page memo to legislators written by former members of the Iowa Utilities Commission.
CEDI invited the commissioners to share their concerns with the Legislature. In the end, Governor Reynolds’ bill was not scheduled for debate in the House or the Senate and thus failed to advance.
COMMUNITY SOLAR and RENEWABLE ENERGY SITING
CEDI and its Key Advocate Network did support bills that would have established third-party-owned community solar programs in the service territories of rate-regulated utilities (Alliant and MidAmerican). While the bills did pass out of committee, they were never scheduled for debate or a vote in either chamber.
CEDI also supported bills that would have established statewide renewable energy siting standards as well as the installation of new transmission lines along state highways. While these bills also did not pass, they are eligible for reconsideration during next year’s session.
STAY INFORMED: Join CEDI’s Key Advocate Network
CEDI expresses its appreciation to all legislators for their dedicated service to their constituents and for supporting energy affordability for Iowa consumers and our communities by not supporting the Governor’s omnibus energy bill. We’re hopeful a better deal for our communities is possible next session.
Anyone who would like to stay informed about energy policy in the Iowa legislature may contact CEDI’s Senior Policy Analyst, Jim Martin-Schramm or REGISTER HERE to receive Key Advocate Network (KAN) updates.
Posted: June 12, 2025
