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South Dakota House votes 49-19 to ban the use of eminent domain for carbon dioxide pipelines

PIERRE, S.D. (SDBA) — The South Dakota House voted 49-19 Monday to ban the use of eminent domain for carbon dioxide pipelines.

House Bill 1052 prevents using eminent domain to acquire right-of-way for carbon oxide pipelines.

“South Dakota is open for business, but not at the expense of South Dakota citizens’ rights,” said bill sponsor Rep. Karla Lems, R-Canton.

“Like has been mentioned, in Minnesota, they cannot use eminent domain for this project,” she added. “And guess what? They are getting it done. Property rights should never be controversial. Let’s put the key to property ownership back into the hands of the property owner.”

Representative Julie Auch, R-Yankton, also spoke in support of the bill.

“I, too, have traveled all over the state and spoken with several farmers, ranchers, myself, a farmer included, in reference to Referred Law 21, who I’m sure everyone in this room recognizes,” Auch said. “This bill is not preventing any kind of a company from doing business in this state. It’s just basically saying, if we say no thank you, that means no thank you.”

Opponents argued that the measure could harm economic development. 

Rep. Tim Reisch, R-Howard, argued that a planned $1.5 billion GEVO plant east of Lake Preston in his district would need a carbon pipeline.

“The taxes generated by this plant will greatly benefit local governments, schools, counties that are hurting,” Reich said. “Every ethanol plant in South Dakota supports the pipeline’s construction.”

Rep. Mike Stevens, R-Yankton, also speaking in opposition, said the pipeline benefits extend beyond private companies.

“That ethanol plant does a benefit for the public because they hire people in Scotland that would otherwise have to find other employment. Stevens said. “They get paid a salary so they can stay in their small community and raise their children in a community that they want to be at.”

The bill follows South Dakota voters’ November rejection of Senate Bill 201 and moves next to the Senate.

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In Touch 2/05/25

The folks from the Aberdeen Chamber of Commerce joins us to talk about Business After Hours and more…