South Dakota landowners have won a massive victory against the green energy agenda. Republican legislators have banned the use of eminent domain for carbon capture pipelines, dealing a significant blow to a massive $8.9 billion project that was set to cross through the state.
At a glance:
• South Dakota has banned eminent domain for carbon capture pipelines, affecting a planned 2,500-mile project
• The $8.9 billion pipeline would transport emissions from over 50 ethanol plants across five Midwest states
• Summit Carbon Solutions must now negotiate with landowners or reroute through Minnesota
• The project is part of Biden administration efforts to reduce carbon emissions and qualify for tax breaks
• Republicans have protected private property rights while challenging the green energy agenda
Protecting Property Rights
South Dakota lawmakers have delivered a powerful blow to a massive carbon capture pipeline project by outlawing the use of eminent domain for such initiatives. The new law directly impacts Summit Carbon Solutions’ proposed 2,500-mile pipeline that would transport greenhouse gas emissions from dozens of ethanol plants across the Midwest.
Republican Rep. Karla Lems, who sponsored the legislation, suggested the company should either “negotiate with landowners in South Dakota” or consider alternate routing options. The law represents a significant victory for property rights advocates who have long opposed government-backed land seizures for private companies.
Summit Carbon Solutions has claimed that “all options are on the table” as they evaluate how to proceed with their $8.9 billion project. The company has already secured more than 2,700 easements and obtained route approvals in Iowa, North Dakota, and parts of Minnesota.
Biden’s Green Agenda Faces Roadblock
The pipeline project is closely tied to the Biden administration’s climate change initiatives and the federal tax incentives they’ve implemented for carbon capture technologies. These tax breaks have been substantially increased under Biden’s leadership, creating financial motivation for ethanol producers to participate in carbon capture schemes.
South Dakota Governor Larry Rhoden emphasized that the new law wasn’t intended to completely halt the project but rather to provide “an opportunity to reset” how the company approaches landowner rights. This stance reflects the growing conservative pushback against green energy projects that trample on private property rights.
Summit Carbon Solutions has insisted that their project “moves forward” despite the legislative setback. The company now faces the challenge of either negotiating voluntary agreements with South Dakota landowners or potentially rerouting portions of the pipeline through neighboring Minnesota.
The ethanol industry has backed the project as it seeks new markets amid decreasing demand for ethanol in gasoline. Carbon capture technology would allow ethanol producers to market their product as more environmentally friendly while tapping into lucrative tax incentives created by the Biden administration.
Uncertain Future
Summit has faced numerous challenges since proposing the pipeline four years ago, including lawsuits from landowners and opposition from state regulators. The South Dakota law represents the most significant obstacle yet, forcing the company to reconsider its approach to securing necessary land rights.
The future of federal policy on carbon capture pipelines remains uncertain, especially with potential changes in administration looming. Conservative lawmakers have increasingly questioned the wisdom of massive government subsidies for such projects, particularly when they infringe on property rights.
Rural communities across the Midwest have been divided by the pipeline proposal, with some welcoming the economic benefits and others staunchly defending their land rights. The South Dakota law has empowered landowners to stand firm against corporate interests backed by federal green energy incentives.
This isn’t just a huge win for South Dakota, but for every landowner in this country.
