A happy day for many of us in South Dakota.
From the South Dakota Searchlight.
South Dakota governor signs eminent domain ban on carbon pipelines
by Joshua HaiarSouth Dakota Republican Gov. Larry Rhoden announced Thursday that he signed a bill banning the use of eminent domain for carbon dioxide pipelines, delivering a victory to property-rights activists who spent several years advocating for the bill.
Eminent domain is the right to access private property for projects that benefit the public, with compensation determined by a court. It’s commonly used for projects such as electrical power lines, water pipelines, oil pipelines and highways.
The legislation passed the state Senate on Tuesday after passing the House in late January. It prohibits carbon pipeline developers from using eminent domain to acquire land. The issue has been at the center of a contentious debate over Iowa-based Summit Carbon Solutions’ proposed $9 billion carbon capture pipeline.
The project would transport carbon dioxide from more than 50 ethanol plants in five states, including eastern South Dakota, to an underground storage site in North Dakota. It would qualify for billions in federal tax credits incentivizing the sequestration of heat-trapping greenhouse gas emissions.
In a letter explaining his decision, Rhoden, a western South Dakota rancher and former legislator, emphasized his longstanding commitment to property rights and framed the bill as a means to restore trust between landowners and developers.
“I am no stranger to discussions about eminent domain and property rights,” Rhoden wrote. “l’ve fought for private property rights in this Capitol for over 20 years. When I was a legislator, I was the prime sponsor of legislation that reformed eminent domain to protect property rights. I don’t just care about landowners — I am a landowner.”
Supporters of the bill have argued that private companies like Summit should not be able to access land against the will of its owners. Opponents, however, contended that the measure could harm the ethanol industry, which is seeking ways to lower its carbon footprint as some states and countries limit sales of carbon-intensive fuels.
Rhoden said voluntary land-access agreements known as easements should be the path forward. He said his signature of the bill “does not kill the proposed project.”
“I encourage Summit and others to view it as an opportunity for a needed reset,” he wrote. “Voluntary easements for this proposed project will still be able to move forward.”
Summit, in a statement, said the ban “changed the rules in the middle of the game.”
“This kind of regulatory uncertainty creates real challenges — not just for our project, but for the ethanol plants in South Dakota that now face a competitive disadvantage compared to their counterparts in neighboring states,” Summit said. “While this presents obstacles, our project moves forward in states that support investment and innovation, and we will have more news on that soon.”
In response to a question from South Dakota Searchlight about whether the company might challenge the new law in court, Summit provided a statement that said “all options are on the table but we remain focused on working with stakeholders to support the long-term success of the ethanol industry and support the president’s goals of American energy dominance.”
“It’s unfortunate that a piece of legislation has been framed around a single company rather than addressing broader infrastructure and economic policy,” the company added.
Summit has not yet received a permit from the South Dakota Public Utilities Commission. The company’s initial application was denied in 2023, largely due to the route’s conflicts with local ordinances that mandate minimum distances between pipelines and existing features. The company has since made some adjustments to its route and reapplied, and that application is pending.
The project has received permits in Iowa, Minnesota and North Dakota, while Nebraska does not have a permitting process, and some of the permits have been challenged in court.
The bill’s passage follows a shift in the South Dakota’s political landscape, with opponents of eminent domain gaining influence in the Legislature. Last year, lawmakers passed a compromise bill that imposed new restrictions on carbon pipelines and implemented new protections for landowners and counties, but did not ban eminent domain. That measure faced fierce opposition. It was referred to the ballot in November and defeated, and 14 Republican incumbents lost their legislative seats in the June primary. This legislative session, some prominent critics of eminent domain were elevated into leadership positions.
Sen. Joy Hohn, R-Sioux Falls, is among the new crop of legislators who supported the eminent domain ban.
“The use of power of condemnation by a private company for the benefit of potential future markets is not worth the dangerous president it sets for future generations,” Hohn said. “On behalf of South Dakota citizens and property owners across our great state, we are so grateful to Governor Rhoden.”
Photo: South Dakota Gov. Larry Rhoden speaks to the media on March 6, 2025, at the Capitol in Pierre. (Makenzie Huber/South Dakota Searchlight).
This South Dakota Searchlight article is republished online under Creative Commons license CC BY-NC-ND 4.0.
Related posts
- South Dakota Legislature passes eminent domain ban for carbon pipelines
- Carbon pipeline eminent domain ban advances to South Dakota House; ‘compromise’ bill gutted
- SD House: carbon capture pipeline moratorium and land-agent regulations advance, while environmental analysis bill fails
- SD lawmakers endorse hurdles for eminent domain, enviro studies for carbon pipelines
- CURE action alert: carbon pipelines & CCS not Minnesota's answer to a carbon free future
- Ethanol carbon capture pipeline news digest: stories from South Dakota--and The Atlantic
- Bill supports ND landowners caught in costly legal battles over eminent domain & easements
- State lawmakers vote down six bills to limit carbon capture in North Dakota
- Bill to kill carbon pipeline property tax exemption in North Dakota fails in state senate
- Iowa House GOP lawmakers introduce suite of pipeline bills on IUC, eminent domain issues
- Iowa House subcommittee advances bill to remove climate change language; aimed at stopping ethanol carbon pipeline
- Landowners, energy industry at odds over bills limiting ethanol CO2 pipelines in North Dakota
- Ban on eminent domain for carbon pipelines passes South Dakota House, heads to Senate
- Ethanol carbon pipeline bills set for hearings in North Dakota legislature this week
- Ban on eminent domain for carbon capture pipelines makes it out of SD House committee
- Carbon pipeline company asks court to force SD regulator’s recusal due to alleged conflict
- Summit Carbon Solutions pipeline company formally asks SD regulator to recuse herself
- South Dakota Public Utilities Commissioner stays on new carbon pipeline case after prior recusal, with no explanation this time
- Hundreds pack SD PUC Summit ethanol carbon pipeline hearings in Watertown and Aberdeen
- 100s attend first day of SD PUC ethanol carbon pipeline meetings in Mitchell and Sioux Falls
- Federal regulators announce proposed rule for CO2 pipeline safety
- Carbon pipeline opponents rallied Monday in Pierre amid push for eminent domain ban
- North Dakota landowners appeal Summit ethanol carbon storage decision
- Punt! Lincoln County commissioners push back decision on ethanol carbon pipeline rules
- Summit Carbon Solutions in the news: landowners & counties appeal North Dakota pipeline permit; Summit tells Iowans to cease & desist; Pipeline Fighters Hub & CURE statements
- North Dakota Industrial Commission approves CO2 storage for Summit ethanol carbon pipeline
- Minnesota PUC granted a permit for Summit Carbon Solutions Otter Tail to Wilkin County pipeline
- South Dakota Public Utilities Commission schedules public input meetings on Summit carbon pipeline application
- Summit ethanol CO2 injection wells up for approval but court appeal already in the works
- Oh the irony: ethanol carbon pipeline company has failed to address crossing concerns, DAPL oil pipeline company says
- Iowa Supreme Court upholds land survey abilities of pipeline companies in Summit case
- U.S. appeals court hears Summit pipeline case against Iowa's Shelby and Story counties
- Never mind the voters: ethanol carbon pipeline company reapplies for South Dakota permit
- Summit ethanol carbon pipeline news digest: Summit sues another Iowa county and more!
- North Dakota Public Service Commission approves Summit carbon pipeline route
- North Dakota couple plans to ‘dig in’ if Summit ethanol carbon pipeline is approved
- Summit ethanol carbon pipeline news digest: CO2 pipeline in MN moves forward; ND Public Service Commission decision coming Friday
- SD pipeline foes secure legislative leadership; MN Summit decision could come Dec. 12
- In unofficial results, ethanol carbon-pipeline law tossed out by South Dakota voters
- CURE: MN Administrative Law Judge’s report on Summit’s CO 2 pipeline expected November 4
- Seven South Dakota ballot measures, $7 million and counting: Reports reveal total spending
- Jeepers: ethanol coop kicks in another $400,000 to support carbon pipeline ballot question
- Ethanol carbon news digest: Summit Carbon pipeline in MN, Iowa & North Dakota media
- Summit Carbon Solutions CEO asks for prayer, while MN PUC wants public comment on FEIS of Otter Tail – Wilkin portion of CO2 Pipeline
- Public can comment on Otter Tail – Wilkin Co section of ethanol carbon pipeline until Sept. 11
- VIDEO: Carbon capture in Minnesota: public lands, fast money, and pipe dreams
- Summit pipeline segment enters final permitting stages in Minnesota; CURE raises objections
- Ethanol is fueling support of South Dakota carbon pipeline ballot measure
- Pipeline Fighters Hub: Summit Carbon Solutions numbers don’t add up in South Dakota
- Referred Law 21 & carbon pipelines: A landowner bill of rights or an undermining of local control
- Summit Carbon Solution's ethanol carbon pipeline takes #2 spot on Heatmap's The Most At-Risk Projects of The Energy Transition
- Ethanol carbon pipeline news: Attorneys differ on meaning of common carrier law in Summit case
- Summit Carbon Solutions pipelines won’t capture all carbon emitted by ethanol plants
- South Dakota Supreme Court ruling complicates Summit Carbon Solution’s push for land
- Referred pipeline law puts Summit Carbon Solution's permit quest in limbo
- Breaking crowded South Dakota ballot news: carbon pipeline law referendum validated
- Sustainable jet fuel company Gevo contributes $167K in defense of carbon pipeline law
- South Dakota Property Rights and Local Control Alliance turns in petitions to SD Secretary of State to force a vote on carbon pipeline policy
- South Dakota District 1 GOP House primary news round-up: carbon pipeline politics major issue
- New Midwest battles brew over CO2 pipelines
If you appreciate Bluestem Prairie, you can mail contributions (payable to Sally Jo Sorensen, 600 Maple Street, Summit SD 57266) or use the paypal button in the upper right hand corner of this post.
Or you can contribute via this link to paypal; use email [email protected] as recipient.
I'm on Venmo for those who prefer to use this service: @Sally-Sorensen-6
Comments