Rep. Carl Perry, R-Aberdeen, hears testimony during a state House Commerce and Energy Committee hearing on Feb. 12, 2024. (Joshua Haiar/South Dakota Searchlight)
PIERRE — Another legislative attempt to stop a proposed carbon sequestration pipeline from using eminent domain failed Monday.
“It is up to us to defend South Dakotans’ property rights,” said Rep. Jon Hansen, R-Dell Rapids, the prime sponsor of the bill.
The legislation was rejected by the House Commerce and Energy Committee in a 7-6 vote. Similar legislation failed during last year’s legislative session .
An Iowa company, Summit Carbon Solutions, is proposing a multi-billion-dollar pipeline to transport carbon dioxide emitted by ethanol plants in multiple states, including South Dakota, to an underground storage site in North Dakota for long-term containment. The project would capitalize on federal tax credits that incentivize the sequestration of heat-trapping gasses, including carbon dioxide.
The legislation, if passed, would have prohibited the use of eminent domain by carbon dioxide pipelines if more than half of the transported carbon dioxide is intended for sequestration rather than commercial uses such as carbonated beverages or enhanced oil recovery. That’s when carbon dioxide is injected into aging oil wells to make it less thick, help it flow better, and cause the oil to expand toward the wells.