CO2 pipeline opponents are breathing a sigh of relief after a congressional committee failed to pass a provision that would have granted such projects eminent domain powers.
Now, the same advocates are calling on Rep. Dusty Johnson to take a firmer stance on the issue.
Provision 41006 in the US House Commerce and Energy’s markup of the reconciliation bill would have changed citing powers from the state to the federal government. That includes county ordinances, approval of permits and more.
Despite this provision failing, Chase Jensen with Dakota Rural Action said there are still some “very dangerous” ones left, including a provision allowing companies to pay $10 million fee for an expedited permitting review for environmental reviews.
“Which would limit public input on decisions,” Jensen said. “It would hold the permitting process to a one-year timeframe with a six-month allowance, but then if the agency applicable for it, if they were not able to get a decision within that timeframe the permit would automatically go forward, and it would be unappealable.”
Now, Dakota Rural Action, District 9 State Sen. Joy Hohn and South Dakota Property Rights and Local Control Alliance are asking Rep. Johnson to repeal the 45Q Tax Credit, which incentivizes investment in carbon capture and sequestration.
Jensen said now is the time to look at cutting the 45Q program.
"And the fact that one of the biggest opportunities for abuse and fraud is being safeguarded, that’s kind of insane," Jensen said. "And so, for us, because the topic of fraud and abuse is open, I would say this is the best opportunity that’s likely to happen for a very long time in Congress for the problems with this tax credit to be addressed.”
He said to do this, they need Johnson to advocate against 45Q, something the group said aligns with his constituents’ beliefs.
Jensen said they want to see the 45Q Tax Credit removed from law through the reconciliation process.
"We are calling on Rep. Johnson to die on this hill," Jensen said.
Johnson's office told SDPB there are some changes Congress is weighing on the 45Q program, specifically repeals transferability for projects where construction begins two years after enactment and restricting access to the credit for certain prohibited foreign entities.
“I’ve been on the frontlines to help eliminate ridiculous portions of the Inflation Reduction Act, like EV chargers and other Green New Deal policies," Johnson said. "The One Big, Beautiful Bill is a major accomplishment, but I’m still working with my colleagues to make it more conservative.”
