South Dakota Gov. Larry Rhoden on March 6 signed a bill to prevent the use of eminent domain for the development of CO2 pipelines. The law specifically targets the CO2 pipeline project under development by Summit Carbon Solutions.&nbsp;The legislation, House Bill 1052, was introduced Jan. 15 and referred to the House State Affairs Committee where it was addressed <a href="https://ethanolproducer.com/articles/south-dakota-bill-aims-to-prevent-the-use-of-eminent-domain-for-co2-pipelines">during a Jan. 24 hearing</a>.&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;The South Dakota House <a href="https://ethanolproducer.com/articles/south-dakota-house-approves-bill-to-prevent-use-of-eminent-domain-in-co2-pipeline-development">voted 49 to 19 in favor of the legislation</a> on Jan. 27. The South Dakota Senate approved the bill by a vote of 23 to 12 of March 4. Rhoden signed the legislation into law two days later.&nbsp;Rhoden outlined his reasons for signing the bill in a letter to the legislature and people of South Dakota. “South Dakota landowners feel strongly that the threat of involuntary easements for the proposed carbon dioxide pipeline infringes on their freedoms and their property rights,” he wrote in the letter. “I have said many times that Summit needs to earn back trust from South Dakota landowners. Unfortunately, once trust is lost, it is a difficult thing to regain.&nbsp;“One perspective in this debate is that we should not change the rules in the middle of the game, and I agree,” Rhoden added. “However, as of this letter, the proposed carbon dioxide pipeline is still just that - a proposed project. Summit has not yet received their permit from the Public Utilities Commission.&nbsp;“HB 1052 does not kill the proposed project,” he continued. “Rather than viewing this legislation as an obstacle to the proposed project, I encourage Summit and others to view it as an opportunity for a needed reset. voluntary easements for this proposed project will still be able to move forward and are not impacted by HB 1052. ln fact, without the threat of eminent domain, the opportunity might finally be available for trust to be rebuilt and for more productive conversations to occur between Summit and South Dakota landowners.”Summit Carbon Solutions issued a statement on March 6, noting the new law will negatively impact South Dakota’s ethanol producers. "It’s very unfortunate that, despite our approvals in Iowa, North Dakota, and Minnesota, South Dakota changed the rules in the middle of the game,” the company wrote. “This kind of regulatory uncertainty creates real challenges—not just for our project, but for the ethanol plants in South Dakota that now face a competitive disadvantage compared to their counterparts in neighboring states. While this presents obstacles, our project moves forward in states that support investment and innovation, and we will have more news on that soon.&nbsp;“The governor has made it clear that HB 1052 targets one company – Summit Carbon Solutions. It’s unfortunate that a piece of legislation has been framed around a single company rather than addressing broader infrastructure and economic policy. As for legal action, all options are on the table but we remain focused on working with stakeholders to support the long-term success of the ethanol industry and support the President’s goals of American energy dominance.”The Iowa Renewable Fuels Association is also speaking out against HB 1052. “We are disappointed in today’s news from South Dakota,” said Monte Shaw, executive director of the IRFA. “An unnecessary roadblock has been thrown up between Midwest corn farmers and much needed new markets. The South Dakota law effectively bans carbon pipelines in the state. While this is horrible for South Dakota and unfortunate for nearby states, there are numerous opportunities to sequester and ways to get there that don't include South Dakota. The demand for ultra-low carbon ethanol around the globe is so massive that, at the end of the day, no one state will be able to stop the ethanol industry from accessing that market.“Despite the rhetoric, this bill had nothing to do with protecting property rights,” Shaw continued. “If the authors wanted that they would have had it apply to all projects. They did not. This specifically targeted CO2 pipelines in direct opposition to President Trump's stated energy policies to ensure American energy dominance. While I feel bad for my friends in South Dakota, Iowa will keep working.”

2025-03-07 - South Dakota governor signs bill to prevent the use of eminent domain in CO2 pipeline projects (Ethanol Producer Magazine)

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South Dakota Gov. Larry Rhoden on March 6 signed a bill to prevent the use of eminent domain for the development of CO2 pipelines. The law specifically targets the CO2 pipeline project under development by Summit Carbon Solutions. 

South Dakota governor signs bill to prevent the use of eminent domain in CO2 pipeline projects

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