Carbon pipeline, ethanol industry get rare victory in South Dakota House

Lawmakers sign off on state regulations for Summit Carbon Solutions, Gov. Kristi Noem hopes to see compromise

PIERRE — Hopes of finding compromise between ardent opponents and advocates of a carbon sequestration pipeline planned through South Dakota remain alive after a marathon debate at the state Capitol Wednesday.

House lawmakers spent nearly two hours volleying arguments in front of a capacity audience in the gallery before voting 40-30 in favor of Senate Bill 201, which establishes regulations for pipeline projects like the one Summit Carbon Solutions wants to build across multiple upper Midwest states.

“There is a myth being pushed that we can only be fair to the (pipeline) projects or farmers,” said House Majority Leader Will Mortenson, one of the bill’s prime sponsors. “That is a false dichotomy, it is a lie.”

NEWS: South Dakota will have statewide vote on Medicaid work requirement authority

The measure, which has undergone a series of changes since its initial filing late last month, aims to substantially change the way the Public Utilities Commission (PUC) permits pipeline projects. Specifically, it calls for the PUC to be able to override — or preempt – more burdensome county-level restrictions like how far pipelines have to be from certain land uses like buildings, residences or schools.

Right now, PUC makes permitting decisions separate from rulings on overriding local government-level regulations, which factored into the commissioner's rejection of Summit’s initial permit application last year. Additionally, SB 201 would codify a standard where federal regulations trump county ordinances. Proponents of the measure point to the threat of federal litigation that’s likely to come without that provision in state law.