A bill aiming to limit a company’s ability to use eminent domain to construct a carbon dioxide pipeline in South Dakota failed.
House Bill 1219 was introduced by Republican Rep. Jon Hansen. He told the House Commerce and Energy Committee Monday the bill does not prohibit the creation of carbon pipelines but limits how companies can go about constructing the pipeline.
Opponents said it would prohibit the state from reaping the benefits of future development, including a proposed sustainable aviation fuel project.
Rep. William Shorma questioned why the pro-pipeline groups changed their main speaking points.
“A year ago, we had some hearings about carbon sequestration and there was very little talk about low-carbon aviation fuel. There was some, but very little," said Shorma. "And today, it seems like it is almost one of the primary components to promote the sequestration of carbon dioxide. What’s changed?”
Sam Nelson is a registered lobbyist for the large biofuel company GEVO. He answered Shorma’s question directly.
“The 45Z and 45Q tax credits that were passed federally were done in such a way where we are incentivized to a much great extent than we were to sequester carbon," said Nelson. "Those combination of changes has made it, from GEVO’s perspective, I won’t speak for Summit or anyone else on the line, but from GEVO’s perspective, it has gone from a nice to have carbon capture and sequestration to a must-have to be viable in South Dakota.”
Republican Rep. Carl Perry was on the committee. He challenged fellow committee members to stand up for what he said is right — supporting the farmer.
“I get tired of kicking the can down the road. For those of you who like to kick the can, go ahead and move it to the 41st day, for those of you who kind of want to make a stand and really support our farmers, even if they lose. I want to be on the winning side,” said Perry.
After a failed do-pass motion, the committee voted to kill the bill in a seven to six vote.
