Pierre Review – South Dakota bill introduction ends and Crossover Day deadline nears

Policy

Today is Day 22 of South Dakota’s 38-day legislative session. Bill introduction ended on Feb. 6. Legislators must now work to move nearly 500 bills out of their house of origin by Feb. 25, which is known as Crossover Day.

A bill that would have changed the siting authority for energy projects more than 50 megawatts (MW) from county decision makers to the PUC was killed in committee. The bill to revise and repeal the functions of the state library has been referred to the Joint Committee on Appropriations with a Do Not Pass recommendation.

See below for more information on the bills we are following and to read our full update.

Let your voice be known.
It is critical that legislators hear from the people they represent. We encourage you to get involved in the legislative process by communicating with elected officials about the issues you care about. If you don’t know who your legislators are, you can find them at this link.

Most testifying is done in person. Currently, it is up to each committee to decide whether or not to allow remote testimony. To make a request to testify remotely, contact the committee that has been assigned to the bill. Email addresses can be found here by clicking on the specific committee. Committees ask that remote testimony requests, written comments, or digital handouts are submitted 24 hours in advance of the committee hearing.

We welcome your input. Feel free to be in touch about these or any other bills you feel are important to rural communities. I can be reached at [email protected] or 605.240.0039.
 

Energy

House Bill (HB) 1007 (brought at the request of the Public Utilities Commission, or PUC) — Monitor: This bill would permit the PUC to recover reimbursement costs from an applicant in a timely manner. Current law permits the PUC to recover actual costs for energy siting dockets for projects such as transmission lines, wind, solar, and pipelines but states “the commission must seek reimbursement for those costs during the next regular legislative session.” This bill would remove the requirement that the PUC wait until the next legislative session to that reimbursement.

HB 1007 was heard on Jan. 24 in the House Commerce and Energy committee and passed 10-3. It was heard on the House floor on Jan. 27 and passed 58-10. It now heads to the Senate Commerce and Energy committee.

HB 1008 (brought at the request of the PUC) — Support: This bill would allow hybrid energy facilities to be regulated by the PUC. HB 1008 was heard and amended to clarify language. During testimony PUC Commissioner Nelson noted that with advances in technology new hybrid energy facilities (such as a combined wind and solar facility) are expected to be proposed. These types of facilities can be complimentary as they produce energy at different times of day. The bill would give the PUC the ability to regulate these types of large energy facilities if they are more than 100 MW combined.

HB 1008 was heard in the House Commerce and Energy committee on Jan. 24 and passed 13-0. It was heard on the House floor on Jan. 28 unopposed. It will now be assigned to a Senate committee.

Senate Bill (SB) 108 (Nelson) — Monitor: This bill reduces the megawattage requirement for energy conversion facilities that are governed by the PUC in chapter 49-41B. Currently, energy facilities, including solar and wind projects, that produce 100 MW or more must go through the PUC siting and permitting process, and facilities that produce less than 100 MW are sited and permitted by the counties.

SB 108 was heard in the Senate Commerce and Energy committee on Feb. 11. The only proponent was the bill sponsor. Opponents included the South Dakota Electric Utilities, Clean Grid Alliance, and NextEra, who argued that this change would create additional layers of regulation and government. The PUC was in attendance and spoke in a neutral capacity. It was noted this change would require additional staffing at the PUC. Overall, the bill was sent to the 41st Day (killed) on a vote of 5-4.

SB 211 (Hohn) — Monitor: This bill would revise and clarify notice and hearing procedures by the PUC for energy conversion and transmission facilities permits. The bill makes several changes to the process, including shortening the time period for notification of nearby landowners of a proposed site, allowing any party to request a prehearing conference and request deadline extension for commission action, and extending the timeline for contested cases.

SB 211 is scheduled for a hearing in the Senate Commerce and Energy committee on Feb. 18.

Carbon pipeline bills

The session has seen a number of bills introduced related to carbon pipelines. These include:

HB 1052 (Lems) — Monitor: Prohibit the exercise of eminent domain for a pipeline that carries carbon oxide.
Passed House State Affairs 10-3 and House floor 49-19.

HB 1085 (Vasgaard) — Monitor: Establish a moratorium on the construction of carbon dioxide pipelines in this state and declare an emergency.
Referred to House Commerce and Energy.

SB49 (Carley) — Monitor: Prohibit the exercise of the right of eminent domain for the construction of certain facilities.
Scheduled for a hearing in Senate State Affairs on Feb. 19.

HB 1228 (Hughes) — Monitor: Require an environmental impact statement from applicants seeking a carbon dioxide transmission facility permit from the PUC of the State of South Dakota.
Referred to House Commerce and Energy.

HB 1249 (Nolz) — Monitor: Protect landowners from the use of deception, fraud, harassment, intimidation, misrepresentation, or threat in acquiring easements for linear infrastructure.
Amended in House Commerce and Energy on Feb. 12.

HB 1251 — Monitor: Establish the minimum compensation for an easement obtained through the exercise of eminent domain for a project affecting multiple landowners. 
Scheduled for a hearing in House Commerce and Energy Feb. 19.

SB 212 — Monitor: Require that pipeline applicants acquire county permits prior to submission of a permit application to the Public Utilities Commission.
Scheduled for a hearing in Senate Commerce and Energy on Feb. 18.
 

Agriculture and conservation

HB 1107 (Auch) — Oppose: This bill would prohibit natural asset companies. A natural asset company is a corporation, limited liability company, or any other entity that has the authority to manage an area for conservation, restoration, ecological performance, or sustainable development. This bill is concerning as it has the potential to limit the ability of organizations such as Ducks Unlimited, the Nature Conservancy, and others that manage land for wildlife habitat or natural resource stewardship to operate in the state.

HB 1107 was heard in the House Commerce and Energy committee on Feb. 3, and was slightly amended before passing 7-5. It was heard on the House floor on Feb. 5 and a Do Pass motion failed on a vote of 28-39.

Economic and community development

SB 86 (Davis) — Support: This bill would expand eligibility for the rural recruitment assistance program to include chiropractors and optometrists. The rural health care recruitment assistance program, operated by the Department of Health, offers financial incentives to medical providers such as physicians, dentists, nurse practitioners, physician assistants, and certified nurse midwives who agree to practice in communities with a population of less than 10,000.

SB 86 is scheduled for a hearing in the Senate committee on Appropriations on Feb. 18.

HB 1132 (Healy) — Support: This bill would create provisions for eligibility in the state’s child care assistance program for certain child care employees. Individuals working at least 20 hours a week for a day care center, family day care, or before or after school program would be able to exclude the income from these positions when determining eligibility for the child care assistance program, which is administered by the South Dakota Department of Social Services.

HB 1132 was heard in the House Health and Human Services committee on Feb. 13 and amended to add a qualification that an applicant’s household income does not exceed 300% of federal poverty level. The amended bill passed 7-6 and now heads to the House floor.

SB 95 (Davis) — Support: This bill makes an appropriation to the Department of Revenue for distribution of county rural access infrastructure funds. SB 95 appropriates $25 million from the general fund to distribute to counties for rural infrastructure improvements. This money would be paid in fiscal years 2026, 2027, and 2028. Counties are allowed to use money from the fund for the construction, rehabilitation, or replacement of small structures (bridges or culverts) on county secondary highways.

SB 95 was amended in the Senate Transportation committee on Feb. 5 and referred to the Joint Committee on Appropriations, where it is scheduled for a hearing Feb. 13.

HB 1041 (brought at the request of the Department of Education) — Oppose: This bill would revise and repeal provisions related to the function of the state library and its board. Former Gov. Noem’s 2025 budget proposed cutting the state library’s general budget by more than $1 million. This cut would eliminate 12.5 positions and reduce the library’s ability to receive over a million dollars in federal funding. The state library serves as a vital resource for rural libraries across South Dakota, and the cuts in funding along with the provisions of this bill would eliminate most of the state library’s services and functions. The State Library Association has provided a fact sheet on the impact of this proposal.

On Feb. 5, HB 1041 was heard in the House Education committee. The Department of Education was the only proponent. Numerous opponents spoke including staff from rural community libraries and schools as well as the South Dakota Municipal League. The committee voted 13-0 to refer HB 1041 to the Joint Committee on Appropriations with a Do Not Pass recommendation.

HB 1111 (Garcia) — Support: This would appropriate $1 million from the general fund for grants to support the purchase of telehealth kiosks. These kiosks would be placed in publicly accessible locations and allow individuals to access remote health care services without an in-office visit. The grants would be awarded with a requirement that the kiosk operate in a county with a population of 15,000 or less and an average life expectancy below the median life expectancy of the state, or a community with limited access to primary health care professionals.

HB 1111 has been referred to the Joint Committee on Appropriations. A hearing has not yet been scheduled.

SB 126 (Reed) — Support: This bill establishes the manner of determining payments for the child care assistance program, including requiring the Department of Social Services to use the ninetieth percentile of the market rate for the area.

SB 126 is scheduled to be heard in the Senate Committee on Appropriations on Feb. 20.

SB 213 (Foster) — Support: This bill would exempt any food grown, raised, or otherwise produced in this state from state sales tax. South Dakota is one of the only states that taxes groceries at the full sales tax rate. Decreasing any type of tax on food has the potential to raise economic security, especially for those with low incomes.

SB 213 is scheduled to be heard in the Senate Taxation committee on Feb. 19.

HB 1089 (Wittman) — Support: This bill would establish parameters to ensure school districts providing free or reduced-price meals to students are reimbursed by the state.

HB 1089 was heard in the House Education committee on Feb. 3. The committee voted 13-2 to refer to the House Committee on Appropriations with Do Not Pass recommendation.
 

Upcoming legislative forums

Aberdeen Area Coffees, Feb. 22, hosted by the Aberdeen Area Chamber of Commerce

Rapid City Area Cracker Barrels, March 8, hosted by Elevate Rapid City

District 7 & 8 Legislative Coffee, Feb. 22, hosted by the Brookings Area Chamber of Commerce

Sioux Falls Area Legislative Coffees, Feb. 22 and March 1, hosted by the League of Women Voters of South Dakota

District 29 Legislative Cracker Barrel, March 1, hosted by the Sturgis Chamber of Commerce & Visitors Bureau

District 4 Legislative Cracker Barrel, Feb. 25, hosted by the Milbank Area Chamber of Commerce

District 18 Legislative Cracker Barrel, Feb. 22 and March 15, hosted by Yankton Thrive

Vermillion Area Legislative Cracker Barrel, March 1, hosted by the Vermillion Area Chamber & Development Co.