SD legislature approves carbon pipeline bills

The South Dakota Legislature has passed three bills outlining landowner protections and requiring additional payments from companies if they want to build a carbon pipeline in the state.

After a conference committee meeting on Wednesday, Senate Bill 201 now requires the carbon pipelines pay an additional fee of $1 per foot of pipe where the line runs with county government and landowners sharing the benefits.

House Bill 1185 adds more landowner protections and House Bill 1186 defines the requirements for granting a carbon pipeline easement.

South Dakota Farm Bureau President Scott VanderWal tells Brownfield the bills would open expanded market access for ethanol.

“Probably the biggest and highest profile project right now would be the Sustainable Aviation Fuel plant that’s proposed to be built near Lake Preston,” he says. “And it could give some property tax relief for those affected land owners and preserve local zoning.”

South Dakota Farmers Union lobbyist Mitch Richter says the bill updates don’t address eminent domain.

“You’re taking away property rights, local control from county units of government and giving it away to the Public Utilities Commission to override those decisions if the PUC deems it necessary.”

Governor Kristi Noem says she will sign the bills into law and they’ll go into effect in early July. But Richter says that doesn’t guarantee a carbon pipeline will be built in the state.

“The carbon pipeline will still have to ask for a permit from the PUC in South Dakota. They’ve been denied one time and these bills make it easier for companies to come in. It puts some restrictions in front of those companies, but they know what the game is now.”

Summit Carbon Pipelines is working on a proposed carbon pipeline project that would span five states and access several ethanol production facilities in South Dakota.

In a statement provided to Brownfield, Summit CEO Lee Blank says ” the bill is a win-win for all. We look forward to doing our part to create and maintain successful relationships going forward.”

The South Dakota Legislative session wraps up today.

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