Ag groups support 67% threshold for CO2 easements
The South Dakota Farm Bureau (SDFB) and the South Dakota Corn Growers Association (SDCGA) said they support a legislative proposal that would require CO2 pipeline companies secure voluntary easements for at least 67% of the pipeline before invoking eminent domain.
Those provisions are now proposed in an amended version of Senate Bill 198, whose prime sponsor now is Republican Sen. Jim Mehlhaff. He chairs the Senate State Affairs Committee, which recommended on a 5-3 vote this week that the full Senate approve SB 198.
A key piece of Mehlhaff's bill is that it would apply to any party seeking to use eminent domain to route a project across someone else's property. The full Senate is scheduled to debate SB 198 today.
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A news release from both agriculture organizations cites House Bill 1052 which passed 49 to 19 in the House on Jan. 27. HB1052 would prohibit the use of eminent domain for a pipeline that carries carbon oxide.
Senate passage of SB 198 this afternoon would mean each legislative chamber has its own version of how to reform eminent domain.
Landowner rights and eminent domain as it relates to CO2 pipelines have been the subject of much discussion for several years as originally, two companies proposed CO2 pipelines that would travel through the state.
As of Friday, Summit Carbon Solutions is the only company that has proposed a CO2 pipeline in the state. A few hundred miles of a CO2 pipeline would travel through the state as it gathers CO2 from partner ethanol plants for planned burial in North Dakota.
The South Dakota Public Utilities Commission will hold evidentiary hearings on the proposed project in August.
On Wednesday, Senate Bill 49 which would have prohibited the exercise of the right of eminent domain for the construction of certain facilities and address the preemption of zoning requirement failed in the Senate State Affairs.
The legislative list of bills for 2025 also included several other eminent domain or pipeline-related bills.
Discussions on HB1052 on Jan. 27 included comments about the safety concerns of CO2 pipelines, how the federal government doesn't have money to support tax credits and similar for projects like CO2 sequestration.
Those against HB1052 said the pipeline will have a positive economic impact, it will protect the ethanol industry because it will reduce the industry's carbon footprint and allow it to sell more fuel in carbon-restrictive markets.
The summit will use 45Q for its proposed pipeline. The 45Q program is a tax credit program for carbon sequestration or carbon capture.
Not only are those in the ethanol industry interested in 45Q, oil industry companies are also interested. Within industry media, there is discussion about oil industry investment in carbon capture. Other discussion includes states pursuing permits for CO2 sequestration wells.
A version of this credit has been in place since George W. Bush's presidency and in 2025, it has billions of dollars attached to it.
Some early indications are that the Trump Administration favors carbon capture. Secretary of Interior Doug Burgum mentioned carbon capture in his confirmation testimony. Burgum is the former governor of North Dakota. President Donald Trump expanded use of 45Q during his first term in office.
Capitol Bureau reporter Bob Mercer contributed to this story.
Copyright 2025 Nexstar Media, Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
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