The South Dakota House of Representatives on Jan. 27 voted 49 to 19 to approve a bill that would prevent the use of eminent domain for the development of CO2 pipelines, in a move opponents say will limit the ability to bring landowners to the table that otherwise refuse to engage with developers.The legislation, House Bill 1052, was introduced Jan. 15 and referred to the House State Affairs Committee where it was addressed during a Jan. 24 hearing.&nbsp;During that hearing, numerous landowners testified in support of the bill, while representatives of Summit Carbon Solutions, the South Dakota Ethanol Producers Association, and various ethanol and sustainable aviation fuel (SAF) producers offered testimony opposing the legislation.&nbsp;During the Jan. 24 hearing, Brett Koenecke, an attorney representing Summit Carbon Solutions, explained that Summit is seeking easements from landowners to bury a pipeline underneath the surface. “There is no land grab here,” he stressed. “No one’s farm is being taken. It’s an easement to bury a pipeline and allow most surface uses to continue.”&nbsp;Preventing the use of eminent domain would, however, eliminate the ability of Summit to bring landowners to the table that otherwise refuse to engage with the company regarding development of the pipeline.&nbsp;The South Dakota House of Representatives debated the impacts of the bill prior to the Jan. 27 vote. During that discussion, Rep. Mike Derby spoke out in opposition of the bill, calling the language too broad and stressing the bill acts in opposition to the goals of the Trump administration. “The Trump administration supports CO2 pipelines and biofuels and [sustainable] aviation fuel” he said. “If this bill, the intention is to prohibit CO2 pipelines in the future in any way, shape or form, I’m against it.Rep. William Shorma also spoke out against the bill, arguing it’s unnecessary because the South Dakota Supreme Court has already weighed in on the issue, preventing the use of eminent domain in the development of the portion of Summit’s pipeline project that spans areas within South Dakota.&nbsp;Shorma also brought attention to the economic impacts of the proposed pipeline project, noting that the South Dakota economy is expected to gain $300 to $500 million annually if the pipeline is constructed. He also referenced a letter from Delta Air Lines committing to purchase 100% of the SAF produced in the state.&nbsp;Also discussing the pipeline’s economic development potential, Rep. Mike Stevens stressed its not true that the only people set to benefit from the CO2 pipeline are private companies. He discussed the importance of the state’s ethanol industry in creating good jobs that support rural communities.&nbsp;Rep. Greg Jamison argued the legislation changes the rules in the middle of the game. Summit has already spent millions of dollars working to develop its CO2 pipeline project. When the company embarked on that process, eminent domain was part of the rules of the development process. “This bill is attempt to stop that—change it—prevent them from going forward,” he said, adding “that sends a terrible message to the country.”&nbsp;Like most of the lawmakers commenting on the bill, Rep. Tim Goodwin acknowledged emotions over this issue run high. However, he noted that Summit is not attempting a land-grab with the development of the pipeline and is offering fair compensation to impacted landowners.&nbsp;Rep. John Hughes spoke in opposition to the bill, but said Summit should propose legislation classifying CO2 as a commodity if it wants to exercise eminent domain.&nbsp;Rep. Rim Reisch noted that the bill won’t only impact Summit—it will also impact other companies, including Gevo, which is developing a SAF plant in his district. He called on lawmakers to keep state open for business and not shut the door on new industries.&nbsp;A full replay of the lawmakers’ discussion is available on the South Dakota Legislature <a href="https://sdlegislature.gov/Session/Bill/25581">website</a>.&nbsp;

2025-01-29 - South Dakota House approves bill to prevent use of eminent domain in CO2 pipeline development (3 publications)

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The South Dakota House of Representatives on Jan. 27 voted 49 to 19 to approve a bill that would prevent the use of eminent domain for the development of CO2 pipelines, in a move opponents say will cause economic harm to the state. 

South Dakota House approves bill to prevent use of eminent domain in CO2 pipeline development

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