On Friday, I posted Federal overreach: Will Congress trample on state laws protecting property rights against ethanol carbon pipelines?, a South Dakota Searchlight article about efforts to assert federal power to stifle state property rights protection.
On Monday, the Searchlight reported that the federal tax credit profiteers may lose that fight against the popular insurrection against ethanol carbon pipelines.
From the South Dakota Searchlight.
Anti-pipeline activists cheer expected removal of federal permit preemption from reconciliation bill
by John HultA provision to let pipeline companies bypass state permitters is expected to be stripped from the “big, beautiful” federal budget reconciliation bill, but anti-pipeline activists want Congress to kill a carbon tax credit program before they pass the bill along to President Donald Trump.
That was the message from a group of South Dakota carbon dioxide pipeline opponents during a virtual press conference Monday. Representatives from Dakota Rural Action, the South Dakota Property Rights and Local Control Alliance, and the South Dakota Stockgrowers Association joined the call.
Last week, groups in the anti-carbon pipeline camp raised alarms about the reconciliation bill over a provision tucked within its 1,100 pages. It would have given the Federal Energy Regulatory Commission exclusive authority to issue licenses for pipelines carrying natural gas, carbon dioxide, hydrogen, oil or other energy products and byproducts.
The state permitting process has been a political minefield for a proposed carbon pipeline from Summit Carbon Solutions that would traverse parts of Iowa, Nebraska, Minnesota and South Dakota, collecting carbon from ethanol plants on its way to a North Dakota sequestration site. The South Dakota Public Utilities Commission has rejected the project twice.
South Dakota Republican Gov. Larry Rhoden signed a bill into law in March banning the use of eminent domain by carbon pipeline companies, stripping Summit of the potential use of state court condemnation actions to build beneath land owned by project opponents.
Anticipated removal of federal provision to preempt state regulators
Critics said the federal permitting provision in the reconciliation bill would’ve allowed Summit to preempt state-level regulations.
The bill passed through a House committee Sunday night. President Trump has called it a “big, beautiful bill” chock full of tax breaks and cuts to wasteful spending; opponents have decried it as a plan to carve large swaths of the citizenry out of entitlement programs such as Medicaid. The complex budget reconciliation process allows the majority party to pass legislation with simple majorities in both chambers, avoiding the U.S. Senate’s usual 60-vote requirement.
The federal pipeline preemption provision will be removed in the House Rules Committee on Wednesday morning, according to Kristen Blakely, who works for U.S. Rep. Dusty Johnson, R-South Dakota.
Opponents of the Summit project celebrated that news on the Monday press call.
“It was good to see that they removed the federal siting authority,” said Republican state Sen. Joy Hohn of Hartford.
Pipeline opponents remain concerned about one other provision that remains in the bill. It would let pipeline companies pay the federal government $10 million for an “expedited environmental review” lasting one year, with a possible extension of up to six months. The current federal review process can take years. Under the provision, an expedited review’s results would not be appealable.
Summit doesn’t need that level of environmental review, though other pipelines – like the controversial Dakota Access crude oil pipeline that Hohn fought to prevent nearly a decade ago – do need them.
Blakely told Searchlight that the expedited environmental review no longer applies to any carbon pipelines, as it was tied to the now-scuttled preemption provision for permits.
Anti-pipeline groups: Johnson should think of governor’s race
Hohn was elected on a landowner rights platform and helped shepherd the eminent domain ban through the statehouse.
Summit’s business model hinges on the company’s intended collection of billions in 45Q tax credits for companies that sequester carbon, keeping it from contributing to climate change.
Hohn and the others on hand for Monday’s press conference want to see Rep. Johnson push for the elimination of that program, which has existed for decades and was beefed up through former President Joe Biden’s Infrastructure Investment and Jobs Act.
“We are calling for Rep. Johnson to die on this hill,” said Chase Jensen of Dakota Rural Action, who called the notion of 45Q credits surviving in a U.S. Capitol transfixed by talk of wasteful spending “insane.”
Ed Fischbach, a board member of Dakota Rural Action, called the 45Q program “nothing but corporate welfare.”
Dennis Fieckert of the South Dakota Property Rights and Local Control Alliance suggested that Johnson’s potential entry into the 2026 South Dakota gubernatorial contest would start off on the wrong foot without a push to end 45Q.
Hohn was one of several state lawmakers who earned their office last year through opposition to eminent domain for carbon pipelines. In that same election, South Dakota voters shot down a law passed by state lawmakers in 2024 that would have granted landowners additional rights but also cleared a path for permitting by Summit.
Rep. Johnson “knows what’s going on here in South Dakota,” Feickert said, adding, “He needs to step up.”
Blakely, Johnson’s spokeswoman, pointed out that the reconciliation bill would alter the tax credit program by limiting access to companies that begin construction within two years of the bill’s enactment. The bill also restricts access to credits by taxpaying companies that are “specified foreign entities” like Chinese defense companies, or taxpaying companies influenced by those entities.
As far as the notion of eliminating 45Q, a statement from Johnson said he’s still working with his colleagues to make the “big, beautiful bill” a “more conservative” piece of legislation.
“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.
Jensen, of Dakota Rural Action, said the credits in 45Q didn’t originate with the Green New Deal, the name attached to a set of policies promoted by some of Congress’ more liberal members. The tax credits originated under a bill signed by President George W. Bush in 2008, and were expanded by President Trump during his first term in office before President Biden’s infrastructure bill expanded them further.
“Our congressman continues to make it sound like this is about getting rid of the Green New Deal, and that this is Biden’s fault, but in reality, this is a bipartisan agenda that we are trying to get rid of,” Jensen said.
Photo: Representatives with Summit Carbon Solutions hand out information and answer questions ahead of a Public Utilities Commission hearing in Sioux Falls on Jan. 15, 2025. (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
- Federal overreach: Will Congress trample on state laws protecting property rights against ethanol carbon pipelines
- Two lawsuits against Summit Carbon Solutions allowed to advance in ND; a third case is pending
- Iowa Senate passes bill restricting eminent domain for ethanol carbon pipelines
- Missing in MNReformer coverage of sustainable aviation fuel: industry groups & fuel stocks
- Why hasn’t a carbon pipeline bill come to Iowa's Senate floor? Lawmakers blame opposing parties
- South Dakota regulators deny ethanol carbon pipeline permit again; company vows to reapply
- CO2 storage law challenged in North Dakota Supreme Court hearing
- South Dakota Public Utilities Commission says ethanol carbon pipeline company must show a path forward to keep permit application active
- Carbon pipeline company files for pause or dismissal of legal fights in South Dakota
- Ethanol carbon pipeline company seeks dismissals of North Dakota court challenges
- CURE wants 45Q tax credit gone; Iowa state representative calls on Summit Carbon Solutions to pull ethanol carbon pipeline application
- Ethanol leaders see irony in Governor Larry Rhoden's ‘Open for Opportunity’ visit after eminent domain ban for carbon pipelines
- Iowa opponents push for a ban on eminent domain for ethanol carbon pipelines
- South Dakota Governor Larry Rhoden signed eminent domain ban on carbon pipelines
- 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