SIOUX FALLS, S.D. (Dakota News Now) – Many South Dakotans have followed the CO2 pipeline applications over the last four years in South Dakota. The carbon sequestration issue is now intertwined in the upcoming Federal Reconciliation Bill.
It all started nearly four years ago, when companies wanted to meet with landowners to gain their trust and access to their land for a CO2 pipeline.
Some may wonder where the desire to build these CO2 pipelines comes from. Many say the push came from a tax credit called the 45Q.
“The underlying funding mechanism for the carbon capture and sequestration industry,” said Chase Jensen with Dakota Rural Action.
Big dollars are involved.
“Cost estimates in 2021, the Treasury Department estimated that over the next 10 years, the 45Q program would cost $20 billion, and then a year later, their estimate bumped up to 30.6 billion,” said Jensen.
South Dakota landowners frequently said they didn’t want eminent domain on their land for something that wasn’t a public utility. State Senator Joy Hohn wants to forward what her constituents say.
“It’s not for the public good. It’s driven by the 45Q tax credits, and they’re just wanting Congressman Johnson to step up and take a stand,” said Hohn.
In a meeting today, leaders and landowners called on Johnson to work on removing the tax credit.
“On three different occasions, the people said no, and if Congressman Johnson hasn’t witnessed that or paid attention to that, he’s been sleeping,” said SD Stockgrowers’ Association President Chuck Willard.
“We are calling on Representative Johnson to die on this hill,” said Jensen.
Proponents of the 45Q tax credit say it’s imperative to stay in place to continue as a key economic driver, maintain global energy leadership, and ensure American industries remain globally competitive.
Hohn maintains it is not good for South Dakota landowners.
Initially, they told us that it was up to local governments and the state. They’ve taken action, and now it’s up to the federal delegation. So we really urge Congressman Johnson to do the right thing and stand for the people of South Dakota,” said Hohn.
Several things were struck from the Reconciliation Bill, including the federal government acquiring the eminent domain permitting process, which would have superseded a state’s authority.
Another vote on the bill is expected to take place this week in Congress.
Earlier today, Dakota News Now asked Dusty Johnson for a response.
“The One Big, Beautiful Bill is a major accomplishment, but I’m still working with my colleagues to make it more conservative,” said Johnson.
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