Referendum on carbon pipeline law validated for November election

An anti-carbon pipeline sign is set up along the road near Canton. (Makenzie Huber/South Dakota Searchlight)

Makenzie Huber, South Dakota Searchlight

A seventh ballot question has been validated by the Secretary of State’s Office for the Nov. 5 general election. The referendum asks voters to consider a recently adopted state law concerning carbon dioxide pipeline restrictions and landowner rights.

Based on a random sample of signatures, the office estimated that 92% percent of the more than 34,000 signatures on the petition are from South Dakota registered voters, which means the estimated number of valid signatures is 31,432. The petition needed 17,508 to qualify for the election.

Opponents of the law want voters to reject Senate Bill 201, which the Legislature and Gov. Kristi Noem approved last winter. Supporters said the legislation will implement new protections for local governments and landowners while preserving a path forward for pipeline projects. Opponents view it as a capitulation to pipeline companies.

A 30-day window is now open for challenges to the validity of the petition.

The bill came in response to an $8.5 billion pipeline proposed by Summit Carbon Solutions, which is headquartered in Iowa. The pipeline would collect carbon dioxide from 57 ethanol plants in South Dakota and neighboring states and pipe it to North Dakota for underground storage. The project could benefit from federal tax credits that incentivize carbon sequestration to fight climate change.

The Iowa Utilities Board approved Summit’s project in June. The company announced shortly afterward that it plans to apply again for a permit in South Dakota this month, after the Public Utilities Commission denied its initial application last year. The company’s pipeline application in North Dakota is under consideration, and it still needs an underground storage permit in North Dakota.

The South Dakota denial was partly due to conflicts with county ordinances that require minimum distances known as “setbacks” between pipelines and other features. The project has also faced opposition from some landowners concerned about property rights and safety, including health risks associated with potential leaks.

The last referred law to appear on a South Dakota ballot was in 2016, after the state Legislature tried to exempt workers under age 18 from receiving a minimum wage increase (which had been approved by South Dakota voters in 2014). South Dakotans voted by a majority of 71.13% to reject the Legislature’s action.