House panel: No eminent domain for CO2 pipelines
Jan 24, 2025
PIERRE, S.D. (KELO) -- Pipelines that carry carbon gases such as CO2 shouldn't have the power to force their way across private property in South Dakota, according to a panel of state lawmakers.
The House State Affairs Committee on Friday endorsed legislation that would make clear that eminent domain can't be used by CO2 pipelines.
The 10-3 vote sends House Bill 1052 to the House of Representatives, where it could be debated as early as Monday afternoon. If the House approves it, HB1052 would next go to the Senate for further action.
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The meeting room was nearly filled by citizens supporting its passage. Many of them applauded the committee members moments after the meeting adjourned.
This comes after South Dakota voters rejected Senate Bill 201 in the November general election. The "no" side won in 65 of 66 counties. Ethanol producers and Summit Carbon Solutions had supported SB201's passage last year.
In the June 2024 Republican primary elections, many challengers also defeated incumbents who had voted for SB201 last year.
Summit Carbon Solutions applied for a permit from the South Dakota Public Utilities Commission for a pipeline that would collect CO2 from ethanol plants and carry the gas to sites in North Dakota, where it would be sequestered underground. The PUC rejected Summit the first time. Summit has applied a second time.
The South Dakota Supreme Court last year said Summit hadn't shown it was a common carrier that would then qualify for eminent domain under state law and said the landowner plaintiffs were entitled to additional discovery. The Supreme Court returned the case to the circuit court.
The current bill's prime sponsor is Republican Rep. Karla Lems. She faced a challenge Friday from Republican Rep. Greg Jamison about what the Supreme Court said.
"They (the Supreme Court) ruled they (Summit) had not proven to be a common carrier for carrying a commodity," Lems said.
That led Jamison to ask a follow-up: So it's not yet determined?
"That's my understanding," Lems said.