PUC denies Summit Carbon’s application

FORT PIERRE, S.D. (Dakota News Now) - The South Dakota Public Utilities Commission met in Fort Pierre Monday morning for a hearing regarding Summit Carbon Solutions.

The first item at hand was whether the hearings would move forward, based on several things that happened on Friday.

The PUC did not comply with Navigator Pipeline’s request to override the county’s setback ordinances. Navigator’s permit was ultimately denied. Summit then requested to withdraw their request to override the counties on their application, too.

The PUC staff attorney then filed to deny the Summit Carbon Solutions application based on what the PUC says is Summit’s own testimony that they can’t build the CO2 pipeline without overriding those county setbacks.

Summit quotes 72% voluntary easements & approximately 160 lawsuits filed against landowners who have not signed easements. PUC’s Gary Hanson asked a Summit attorney how many landowners signed out of intimidation. The attorney says he can’t speculate.

Hanson asked how the three-week hearing could continue if it is already known that the Summit Carbon Solutions CO2 pipeline route can’t comply. The SCS attorney asked for five minutes to discuss with the client.

Brown County’s setbacks are the largest at 1,500 feet. Minnehaha County’s setback is 300 feet. Previous testimony was read from SCS saying the routes are not possible without overriding the counties with both of these setbacks.

“My client’s wish” is to delay proceedings and return later rather than deny the permit, said a SCS attorney.

Commissioner Josh Hader said, “I would like to make a motion to deny the application.”

PUC Chris Nelson’s motion: rather than deny, remove the Nov. 15 deadline and delay indefinitely. “I’m willing to give them the opportunity to work with counties and landowners to see if they can cure these issues. I’m willing to give them the time.”

Hanson desired to deny the application. “We need a clean process here,” Hanson said. There were talks of SCS not being ready. “They need to simply get their order of all their things accomplished and then say, ‘Now we’re ready to go through the process.’”

Motion vote to delay and not deny application: Nelson voted aye, Hader voted no and Hanson voted no.

Vote on Hader’s motion to deny Summit Carbon Solutions application: Hanson voted yes, Hader voted yes and Nelson voted yes.

Dakota Rural Action responds to decision

“We are so grateful to the PUC commissioners for standing up for their constituents! They made the right decision for the future of South Dakota. We are also thankful to them for upholding our county ordinances!” said Joy Hohn, a Dakota Rural Action member leader and impacted landowner from Minnehaha County.

Nonprofit organization Dakota Rural Action made the following statement in response to Monday’s vote:

This decision is another staunch victory for local government in South Dakota. It is also a clear repudiation of Summit Carbon Solution’s attempt to bully their way through the permitting process by threatening counties with lawsuits if they took up ordinances and asking the PUC to preempt those ordinances without submitting any evidence that they had attempted to comply with them.
Dakota Rural Action has been engaged in a multi-year campaign to ensure that the potential safety, environmental, and economic consequences of the project are thoroughly vetted and that the voices of impacted citizens are at the forefront of permitting decisions. We celebrate the decision that came down from the PUC, noting the time and effort each commissioner invested in reviewing the application and testimony.
Dakota Rural Action

“This is a great day for people over big money. Thankfully our commissioners and staff followed the law and denied Summit’s permit. It is a great day for the people of South Dakota!” said Ed Fischbach, an impacted landowner and Dakota Rural Action board member from Spink County.

Summit Carbon Solutions reacts

Summit Carbon made the following statement in response to Monday’s decision:

Today, the pipeline permit application for Summit Carbon Solutions (SCS) was denied by the South Dakota Public Utilities Commission (PUC). SCS respects the decision, plans to refile, and is reinforcing its commitment to South Dakotans and the state’s ethanol and sustainable-aviation-fuel industries.
Two-and-a-half years ago, SCS announced the creation of this carbon-capture and storage project, and a year later, in February 2022, SCS filed an application with the South Dakota PUC. In the 19 months that followed, SCS has engaged with landowners and local governments throughout the path of the project. That commitment has been borne out through the 73% of landowners who have signed voluntary easements and the nine biorefineries that have partnered with SCS, including Gevo, the first billion-dollar economic investment in South Dakota.
Some South Dakota counties passed ordinances that require SCS to refine its path through South Dakota. Today, the PUC determined that these ordinances prohibit the PUC from granting a permit right now, but that SCS can reapply after it refines its proposal.
SCS intends to do just that, to refine its proposal and reapply for a permit in a timely manner. SCS remains committed to the South Dakota ethanol industry and the growth of South Dakota's energy industry.
“We respect this initial ruling and remain committed to South Dakota and deeply appreciative of the overwhelming support we have received from landowners and community members,” said Lee Blank, Summit Carbon Solutions CEO. “We are hopeful that through collaborative engagement with these counties we can forge a path forward to benefit South Dakota and its citizens.”
Summit Carbon Solutions