The 2024 South Dakota legislative session is coming to a close. Monday was the last day for bills to pass both houses. The 38-day legislative session will officially conclude on March 25, which is reserved for gubernatorial vetoes.
In our last update, we reported that House Bill (HB) 1184, brought by Rep. Linda Duba, was referred to the Joint Committee on Appropriations. The bill would have required the Department of Social Services and Department of Education to apply for and provide an appropriation to administer the Summer Electronic Benefit Transfer for Children program. The bill was heard on Feb. 23, with the committee voting 13-4 to defer it to the 41st legislative day (kill).
Senate Bill (SB) 201, which outlines how carbon pipelines will be regulated, was significantly amended numerous times before passing both the Senate and House.
With the session coming to a close, this will be our final Pierre Review for 2024. While our regular updates have concluded, I encourage you to be in touch about issues you feel are important to rural communities. I can be reached at heidiku@cfra.org, or 605.240.0039.
Energy and environment
SB 201 - Oppose: This bill, brought by Sen. Casey Crabtree, provides new statutory requirements for regulating linear transmission facilities and to declare an emergency. This bill is primarily directed at regulating carbon pipelines. The concerning aspect of this bill is that it undercuts local control. It preempts any local law, ordinance, or regulation that conflicts with the regulations specified in the bill. It also prohibits local governments from setting regulations related to these pipelines, including routing, setbacks, and zoning permits. This sets a troubling precedent of removing local authority over siting and permitting decisions.
SB 201 was heard on Feb. 15 in the Senate Commerce and Energy Committee and amended by the prime sponsor. Proponents included the South Dakota Ethanol Producers Association, South Dakota Corn Growers Association, and Summit Carbon Solutions, as well as others. Opponents included the South Dakota Association of Towns and Townships, South Dakota Farmers Union, South Dakota Stockgrowers Association, and others. The bill passed out of committee 7-2. On Feb. 21, the bill was heard in the Senate and amended to remove the emergency clause. On Feb. 26, the bill was heard in the House Commerce Energy Committee. The bill was amended again, this time to remove the section related to county preemption and replace it with language stating that a facility must obtain a permit from the Public Utilities Commission (PUC) prior to construction and operation and that this permit can preempt any local ordinances or zoning that the PUC rules are unreasonably restrictive or that are preempted by federal law. It passed on an 8-5 vote. On Feb. 28, the House passed the bill 40-30; however, the Senate did not concur with the House’s amendment.
The bill was heard in Conference Committee on March 6 and amended and passed out on a vote of 5-1. The House adopted the Conference Committee bill version on a vote of 39-31, and the Senate concurred 24-20. This final version of the bill maintains that the PUC will determine siting and permitting and that local government ordinances are preempted and superseded. It sets a “landowner bill of rights” outlining some responsibilities that companies must adhere to related to land easements. It now awaits the governor’s signature.
HB 1200 - Neutral: This bill, brought by the Committee on State Affairs, would increase the minimum fee required with an application for construction of an energy conversion and transmission facility, including wind, solar, transmission, and carbon pipelines. HB 1200 was brought to committee after the failure of HB 1052, which was heard during the first week of session. HB 1200 is the result of an agreement between the (PUC) and the South Dakota Electric Utilities Companies to ensure that energy docket costs are paid by the energy company and not the PUC, and ultimately, ratepayers. HB 1200 serves as a compromise, increasing the minimum fee from $8,000 to $20,000 but retaining language that sets a cap on maximum fee amounts.
HB 1200 was heard on Feb. 2 in the House State Affairs Committee and passed 13-0. It passed the House on Feb. 6 on a 66-1 vote. It was heard by the Senate State Affairs Committee on Feb. 28 and amended slightly. It passed on an 8-1 vote. The Senate passed the bill 31-2 on March 4, and the House concurred with the amendments. It now awaits the governor’s signature.
HB 1034 - Support: This bill, brought at the request of the PUC, would require hydrogen pipelines to be permitted by the PUC. Currently, the state does not have a statute governing hydrogen pipelines. This bill would bring permitting authority under the PUC, similar to oil and carbon pipelines.
HB 1034 was heard in the House Commerce and Energy Committee on Jan. 12. It was noted by the Public Utilities Commission that the newly created Heartland Hydrogen Hub, a project of the U.S. Department of Energy, includes the state of South Dakota. The PUC stated that while there are no current hydrogen pipeline applications this is an emerging field and the state needs to have a system in place to govern the permitting process. The bill passed the committee 13-0, the House floor 66-3 on Jan. 16, the Senate Commerce and Energy Committee 5-3 on Jan. 30, and the Senate floor 27-5 on Feb. 8. It was signed by the governor on Feb. 21.
HB 1185 - Support: This bill, brought by Rep. Will Mortenson, would amend provisions regarding entry on private property for examination and survey. HB 1185 relates to eminent domain and statutes governing energy conversion and transmission facilities that require a siting permit. Current law states that, after having filed a siting permit with the PUC, anyone seeking to conduct a survey or examination must give the landowner or tenant 30 days written notice and make a payment to the owner. The amendment adds that this notice must also include the anticipated date and duration of entry, the name and contact information of the person who will be entering the property, and a description of the type and location of property to be surveyed. It also specifies a compensation amount of $500.
HB 1185 was heard in the House Commerce and Energy committee on Feb. 5 and passed 11-1. Proponents included Farm Bureau, South Dakota Corn Growers, South Dakota Ethanol Producers Association, South Dakota Soybean Association, South Dakota Cattlemen's Association, and landowners. Opponents included Summit Carbon Solutions and the South Dakota Electric Utilities Companies. It was debated on the House floor on Feb. 8 and passed 47-17. It was heard Feb. 29 in the Senate Commerce and Energy Committee and passed 8-1. It was amended to state that payment will be made to owners, but that the specified amount of $500 will only apply to carbon pipelines projects. However, the Senate did not concur with this amendment and the bill was sent to Conference Committee. On March 6 it was amended to state that the $500 will apply to all common carriers and passed out of committee 5-1. The House adopted the conference committee amendments 42-28 and the Senate concurred 29-5. It now awaits the governor’s signature.
Economic and community development
HB 1184 - Support: This bill, brought by Rep. Linda Duba, requires the Department of Social Services and the Department of Education to apply for and provide an appropriation to administer the Summer Electronic Benefit Transfer (S-EBT) for Children program. The S-EBT program is federally funded and has been adopted by 36 states, most recently Nebraska, where last week Gov. Jim Pillen announced the state will participate. The bill appropriates more than $28 million in federal funds to be administered from 2025 to 2029. Administrative costs would be split by the state and federal government, with the bill appropriating $150,000 in state funding to pay for half the cost of program administration.
HB 1184 was heard Feb. 14 in the House Education Committee. The prime sponsor amended the bill to remove the emergency clause and provide the state additional time to plan for implementation. During testimony, Rep. Duba noted that currently more than 54,000 students, or 36% of total students in the state, qualify for free and reduced lunch. Proponents of the bill included the American Heart Association, Presentation Sisters, Avera Health, South Dakota Education Association, South Dakota United School Association, South Dakota Advocacy Network for Women, and Large School Group. The Bureau of Finance and Management opposed the bill, citing concerns over administrative burdens to operate the program. The bill was referred to the Joint Committee on Appropriations and heard on Feb. 23. Ultimately the committee voted 13-4 to defer the bill to the 41st legislative day (kill).
SB 124 - Support: This bill, brought by Sen. Joshua Klumb, adds minimum maintenance roads to the list of eligible projects for the rural access infrastructure fund. Created in 2021, the fund is available to counties and townships to use on construction, rehabilitation, or replacement of infrastructure projects. Currently only full-service roads are eligible. This bill only places minimum maintenance roads in the eligible projects list; county commissions continue to hold the authority to decide where funding will be used.
SB 124 was heard in the Senate Transportation Committee on Feb. 7. The South Dakota Association of Towns and Townships testified in support of the bill. During testimony, the Association noted there are 936 culverts located on minimum maintenance roads, with 191 listed in poor condition and in need of replacement. Additionally, 47 bridges are on minimum maintenance roads, and 50% are listed in poor condition. There were no opponents to the bill and it passed 7-0. It was heard on the Senate floor on Feb. 8 and passed unanimously. On Feb. 29, the House Transportation Committee passed the bill 13-0. It was passed on consent in the House and now awaits the governor’s signature.
HB 1041 - Support: This bill, brought by Rep. Tyler Tordsen, modifies the definition of public infrastructure to allow a federally recognized Indian tribe to be eligible for housing infrastructure grants and loans. HB 1041 is a follow-up bill related to the passage of a 2023 bill that appropriated $200 million in state and American Rescue Plan Act funds toward housing infrastructure loans and grants, with 70% of funds going to towns with populations under 50,000. According to the bill sponsor, during the rule-making process a definition was included that unintentionally made tribes ineligible for the program. This bill would ensure tribes were included.
HB 1041 was heard in the House State Affairs committee on Jan. 12 and passed 12-1. It passed the House floor 52-17 on Jan. 16, the Senate Commerce and Energy Committee 8-1 on Jan. 23, and the Senate 29-2 on Jan. 24. It was signed by the governor on Jan. 31.
SB 125 - Support: This bill, brought by Sen. Tim Reed, requires the Department of Social Services (DSS) to conduct a state-wide study on child care. SB 125 would appropriate $250,000 to DSS for the purpose of conducting a study during the 2024 interim. This study would analyze differences in the cost of child care across the state, impacts of inflation and population growth on child care providers, and compensation and benefits for child care workers. It would also require the development of a cost estimate model of payment for the child care assistance program.
SB 125 was heard by the Joint Committee on Appropriations on Feb. 23. The bill was amended from $250,000 to $1 and passed on a 16-2 vote. On Feb. 27, the Senate tabled (killed) the bill on a vote of 29-4.
