Pipeline dispute escalates with South Dakota’s new property law

South Dakota’s governor just signed a new law. It stops companies from taking private property to build carbon dioxide pipelines. This is a big setback for a new pipeline planned for the Midwest.

The law will affect Summit Carbon Solutions. The company planned a huge pipeline that would stretch 2,500 miles across the Midwest. The pipeline would transport carbon dioxide from ethanol plants. Ethanol makers need it to help their business. Summit’s $8.9 billion project already has approvals in other states.

Governor’s thoughts on the new law

Governor Larry Rhoden is a Republican. He says the law doesn’t stop the pipeline completely. Instead, he sees it as a chance to rethink things. He made the decision after considering many factors, including his own experience and what’s best for South Dakota.

Summit doesn’t agree with the law. They think South Dakota changed the rules halfway through the project. They say this makes things difficult, not only for their project but also for ethanol plants in South Dakota. The plants now have to compete with plants in other states that don’t have these new laws.

The pipeline’s purpose

Summit’s pipeline is meant to take carbon dioxide from ethanol plants to underground storage in North Dakota. The idea is to help reduce harmful emissions from ethanol production. However, many landowners oppose the pipeline. They are afraid of losing their land or the risks of a potential pipeline leak.

Property rights in South Dakota

Property rights are very important in South Dakota. Last year, voters rejected laws that they felt would take away local control over these kinds of projects. Supporters of the laws called it a “landowner bill of rights.” The new law says companies can’t take private property for a pipeline that is mainly for transporting carbon dioxide.

How the law affects summit’s pipeline plans

Summit already has approvals for part of the pipeline in Iowa, North Dakota, and Minnesota. However, South Dakota regulators rejected the company’s permit last year. Now, new meetings are happening to discuss the project again. It is unclear what Summit will do if they can’t build the pipeline through South Dakota.

Supporters and opponents of the pipeline

Some people believe carbon capture, like Summit’s project, is a good way to fight climate change. They think it will also help the ethanol industry. But others don’t believe carbon capture will make much of a difference. They also worry that the pipeline will let the fossil fuels industry keep going without changing.

The U.S. government offers tax credits for carbon capture projects. This encourages companies to build these projects and make cleaner ethanol. Some say this could even help turn ethanol into jet fuel.

Critics of Summit’s pipeline Project

Republican Rep. Karla Lems sponsored the law and is against Summit’s project. She says Summit has been too forceful with landowners. She believes the project is only about getting tax credits.

Others, like Monte Shaw from the Iowa Renewable Fuels Association, say the new law is bad for the region. They believe it creates an obstacle for corn farmers in the Midwest who need new markets. Shaw says the demand for low-carbon ethanol is huge. In the end, he believes no one state can stop the ethanol industry from growing.

Some opponents argue that the amount of greenhouse gases captured by the pipeline won’t make a big difference. They also worry it might encourage farmers to grow more corn, which could hurt the environment.