South Dakota House has passed a bill aimed at making it harder for companies seeking to build pipelines carrying carbon dioxide by using eminent domain. The new legislation comes at the behest of landowners who want to stop pipeline developers looking to have their way through eminent domain rather than voluntary contracts. 

Summit Carbon Solutions, one of the major regional pipeline developers, testified that the bill would prevent them from negotiating with landowners who refused to grant voluntary easements. The company said the pipeline would not physically be on the land but would need easements across it for underground placement. 

Lawmakers on both sides had mixed reactions. Some said the bill was too broad and ran counter to federal policies promoting CO2 pipelines and biofuels, while others said the South Dakota Supreme Court had already weighed in, limiting eminent domain use for part of Summit's project. 

Different views disagreed on the various economic impacts of the pipeline project, with supporters trumpeting possible economic benefits, including increased revenue for the ethanol industry and rural community job creation. 

Lawmakers had further discussions about the impact on the existence of development agreements. Some lawmakers argue that the bill changes the rules unfairly for companies like Summit that have invested substantial resources in the pipeline projects.

The bill's passage has also raised concerns about the state's business climate. Some lawmakers warned that the legislation could deter future investment in emerging industries like SAF production, potentially hindering economic growth.