Oct. 4 (UPI) — The rights of landowners and local control are on the ballot in South Dakota as Summit Carbon Solutions seeks to build a carbon pipeline across the Midwest.
Despite South Dakota’s Public Utilities Commission denying Summit’s application to build nearly 500 miles of pipeline through South Dakota, the state legislature approved a bill that could help the company push forward with its plans.
Referred Law 21, or Senate Bill 201, would allow counties to impose a $1 per foot charge on CO2 pipelines if they received 45Q tax credits in the prior year. Revenue from this could be given to property owners throughout the county in the form of tax relief. It establishes some requirements for pipeline installation such as minimum depth and operator responsibility for damage to drain tiles, leaks and failure.
The 45Q federal tax credit is meant to incentivize decarbonization by industrial power plants. It is available for 12 years after a company puts carbon capture equipment into service. The deadline to begin construction on qualifying projects is 2032.