(NAFB) The CEO of American Carbon Alliance is disappointed that South Dakota Governor Larry Rhoden has signed legislation eliminating the use of eminent domain to build carbon capture pipelines.
Rhoden announced last week that he had signed House Bill 1052 but also emphasized that the measure does not kill a project proposed by Summit Carbon Solutions.
American Carbon CEO Tom Buis called the bill a lost opportunity for South Dakota to capitalize on growing markets for low-carbon biofuels, including sustainable aviation fuel. Buis said, “Other states are moving forward, and it’s unfortunate to see South Dakota take a step back.”
HB 1052 was a direct response from pipeline opponents frustrated by the actions of the Iowa-based company. They said Summit employees have conducted land surveys without permission and have used misleading information to get landowners to sign leases allowing Summit’s proposed pipeline to be built across their property.
Buis said the “legislation comes at a time when South Dakota farmers and ethanol producers desperately need new markets to restore profitability. Instead of supporting economic growth, this decision creates unnecessary roadblocks and sends the wrong message to agriculture and rural communities.”
Rhoden said Summit needs to earn back the trust of South Dakotans and admitted it won’t be easy for the company to do. He outlined his reasons for signing the bill in a letter to the legislature and the people of South Dakota.
Summit’s proposed pipeline project would connect ethanol companies in Iowa, Minnesota, South Dakota, and North Dakota to an underground storage site in southwestern North Dakota.
