{"id":10306,"date":"2025-03-07T19:00:36","date_gmt":"2025-03-07T19:00:36","guid":{"rendered":"https:\/\/midamerica.news\/wright-county-monitor\/2025\/03\/07\/south-dakota-governor-signs-eminent-domain-ban-on-carbon-pipelines\/"},"modified":"2025-03-07T19:00:36","modified_gmt":"2025-03-07T19:00:36","slug":"south-dakota-governor-signs-eminent-domain-ban-on-carbon-pipelines","status":"publish","type":"post","link":"https:\/\/midamerica.news\/wright-county-monitor\/2025\/03\/07\/south-dakota-governor-signs-eminent-domain-ban-on-carbon-pipelines\/","title":{"rendered":"South Dakota Governor Signs Eminent Domain Ban on Carbon Pipelines"},"content":{"rendered":"\r\n
\"\"
South Dakota Gov. Larry Rhoden speaks to the media on March 6, 2025, at the Capitol in Pierre. (Photo by Makenzie Huber\/South Dakota Searchlight)<\/figcaption><\/figure>\r\n

By:\u00a0Joshua Haiar<\/em><\/p>\r\n

South Dakota Republican Gov. Larry Rhoden announced Thursday that he signed a bill banning the use of eminent domain for carbon dioxide pipelines, delivering a victory to property-rights activists who spent several years advocating for the bill.<\/p>\r\n

Eminent domain is the right to access private property for projects that benefit the public, with compensation determined by a court. It\u2019s commonly used for projects such as electrical power lines, water pipelines, oil pipelines and highways.<\/p>\r\n

The legislation passed the state Senate<\/a> on Tuesday after passing the House in late January. It prohibits carbon pipeline developers from using eminent domain to acquire land. The issue has been at the center of a contentious debate over Iowa-based Summit Carbon Solutions\u2019 proposed $9 billion carbon capture pipeline.<\/p>\r\n

The project would transport carbon dioxide from more than 50 ethanol plants in five states, including eastern South Dakota, to an underground storage site in North Dakota. It would qualify for billions in federal tax credits<\/a>\u00a0incentivizing the sequestration of heat-trapping greenhouse gas emissions.<\/p>\r\n

In a letter<\/a> explaining his decision, Rhoden, a western South Dakota rancher and former legislator, emphasized his longstanding commitment to property rights and framed the bill as a means to restore trust between landowners and developers.<\/p>\r\n

\u201cI am no stranger to discussions about eminent domain and property rights,\u201d Rhoden wrote. \u201cl\u2019ve fought for private property rights in this Capitol for over 20 years. When I was a legislator, I was the prime sponsor of legislation that reformed eminent domain to protect property rights. I don\u2019t just care about landowners \u2014 I am a landowner.\u201d<\/p>\r\n

Supporters of the bill have argued that private companies like Summit should not be able to access land against the will of its owners. Opponents, however, contended that the measure could harm the ethanol industry, which is seeking ways to lower its carbon footprint as some states and countries limit sales of carbon-intensive fuels.<\/p>\r\n

Rhoden said voluntary land-access agreements known as easements should be the path forward. He said his signature of the bill \u201cdoes not kill the proposed project.\u201d<\/p>\r\n

\u201cI encourage Summit and others to view it as an opportunity for a needed reset,\u201d he wrote. \u201cVoluntary easements for this proposed project will still be able to move forward.\u201d<\/p>\r\n

Summit, in a statement, said the ban \u201cchanged the rules in the middle of the game.\u201d<\/p>\r\n

\u201cThis kind of regulatory uncertainty creates real challenges \u2014 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,\u201d Summit said. \u201cWhile this presents obstacles, our project moves forward in states that support investment and innovation, and we will have more news on that soon.\u201d<\/p>\r\n

In response to a question from South Dakota Searchlight about whether the company might challenge the new law in court, Summit provided a statement that said \u201call 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\u2019s goals of American energy dominance.\u201d<\/p>\r\n

\u201cIt\u2019s unfortunate that a piece of legislation has been framed around a single company rather than addressing broader infrastructure and economic policy,\u201d the company added.<\/p>\r\n

\r\n
\r\n
\r\n

I don’t just care about landowners \u2014 I am a landowner.<\/p>\r\n<\/blockquote>\r\n<\/div>\r\n

\r\n
\r\n

\u2013 South Dakota Gov. Larry Rhoden<\/b><\/p>\r\n<\/blockquote>\r\n<\/div>\r\n<\/div>\r\n

Summit has not yet received a permit from the South Dakota Public Utilities Commission. The company\u2019s initial application was denied<\/a> in 2023, largely due to the route\u2019s conflicts with local ordinances that mandate minimum distances between pipelines and existing features. The company has since made some adjustments to its route and\u00a0reapplied<\/a>, and that application is pending.<\/p>\r\n

The project has received permits in Iowa, Minnesota and North Dakota, while Nebraska does not have a permitting process, and some of the permits have been challenged in court. The company\u2019s Iowa permit does not allow construction to begin<\/a> until it receives permits in the Dakotas.<\/p>\r\n

The bill\u2019s passage follows a shift<\/a> in the South Dakota\u2019s political landscape, with opponents of eminent domain gaining influence in the Legislature. Last year, lawmakers passed a compromise bill<\/a> that imposed new restrictions on carbon pipelines and implemented new protections for landowners and counties, but did not ban eminent domain. That measure faced fierce opposition. It was referred to the ballot in November and defeated<\/a>, and 14 Republican incumbents lost their legislative seats<\/a> in the June primary. This legislative session, some prominent critics of eminent domain were elevated into leadership positions.<\/p>\r\n

Sen. Joy Hohn, R-Sioux Falls, is among the new crop of legislators who supported the eminent domain ban.<\/p>\r\n

\u201cThe use of power of condemnation by a private company for the benefit of potential future markets is not worth the dangerous president it sets for future generations,\u201d Hohn said. \u201cOn behalf of South Dakota citizens and property owners across our great state, we are so grateful to Governor Rhoden.\u201d<\/p>\r\n

\r\n
\r\n
This story was originally published by\u00a0South Dakota Searchlight<\/a>, which is part of States Newsroom, a nonprofit news network supported by grants and a coalition of donors as a 501c(3) public charity. South Dakota Searchlight maintains editorial independence. Contact Editor Seth Tupper for questions: info@southdakotasearchlight.com<\/a>.<\/div>\r\n<\/div>\r\n<\/div>\r\n","protected":false},"excerpt":{"rendered":"

By:\u00a0Joshua Haiar South Dakota Republican Gov. Larry Rhoden announced Thursday that he signed a bill banning the use of eminent domain for carbon dioxide pipelines, delivering a victory to property-rights activists who spent several years advocating for the bill. 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