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Senate panel passes carbon pipeline eminent domain ban; Amendment looms

The Senate State Affairs committee hears proponent and opponent testimony on a bill to ban the use of eminent domain for liquid carbon pipeline projects.
Lee Strubinger
/
SDPB
The Senate State Affairs committee hears proponent and opponent testimony on a bill to ban the use of eminent domain for liquid carbon pipeline projects.

Summit Carbon Solution’s proposed pipeline would run through Betty Strom’s farmland near Madison.

Strom said Summit has served papers on her twice for eminent domain and surveyed her land without permission.

“It’s been a long process. Three and a half years, plus. I’m tired of it. I’ve spent a lot of money trying to defend my property and my neighbors. It’s just ridiculous," Strom said. "They don’t give up, they keep popping up. I say it’s like ‘whack-a-mole.’”

 A Senate panel is advancing a bill to completely ban the use of eminent domain for carbon pipeline projects.

Critics of the proposal call it a ‘kill shot’ to the pipeline project. They say it would lead to conditions that would negatively affect South Dakota’s corn and ethanol markets. During the hearing, officials with Gevo—a bio jet fuel company proposing a $1 billion dollar plant near Lake Preston—indicated it was assessing other opportunities for its operation.

The legislation is spearheaded by Rep. Karla Lems, R-Canton, who's been a vocal opponent to carbon pipeline projects in the state. Through tears in her eyes, Lems said a lot of people are depending on the bill.

“It’s just a great day when you have people, senators, expressing their thoughts and basically finally seeing things the way the landowners have seen them," Lems said. "We just really appreciate their vote. Again, we’re going to have to get it off the Senate floor.”

The bill banning eminent domain passed Senate State Affairs by a vote of 7 to 2. If it passes the full Senate without any changes, it’ll head to Gov. Larry Rhoden’s desk, who has not signaled his position on arguably the biggest topic heading into this year’s session.

There are competing ideas between chambers on whether the process should get used for these projects.

There’s a pending Senate amendment to the House bill, meaning it could get changed when it’s heard on the floor. That would set a 67 percent of landowners threshold, plus PUC approval, before eminent domain can get used.

Monday morning, House lawmakers changed a bill with similar language to mirror its full ban on eminent domain to have that bill in play.

There are two more weeks left of the 2025 legislative session.

Lee Strubinger is SDPB’s Rapid City-based politics and public policy reporter. Lee is a two-time national Edward R. Murrow Award winning reporter. He holds a master’s in public affairs reporting from the University of Illinois-Springfield.