Carbon pipeline bills set for hearings in North Dakota this week
Signs in protest of a carbon pipeline project sit along Highway 281 south of Ellendale, North Dakota, on Nov. 12, 2024. (Jeff Beach/North Dakota Monitor)
Several bills related to carbon capture pipelines are set for hearings this week in the North Dakota Legislature covering topics including eminent domain, common carrier status and liability in the case of a pipeline rupture.
Iowa-based Summit Carbon Solutions plans to build a pipeline to transport carbon dioxide from ethanol plants in five states to underground storage sites in western North Dakota. It has the needed permits in North Dakota but is still facing some landowner resistance.
If a company such as Summit is not able to negotiate an agreement with a landowner for construction on their property, it can resort to a legal proceeding known as eminent domain. With eminent domain, a landowner can be forced to allow construction of a project with a public benefit, such as roads, utility lines and, under current North Dakota law, carbon pipelines.
The landowner would be paid if a court allows eminent domain.
North Dakota regulators say state rules trump local pipeline ordinances
Bills introduced in the Legislature propose to change when eminent domain can be used.
House Bill 1414 specifies that the state may not use eminent domain for carbon dioxide pipelines and revokes common carrier status for carbon pipelines. Being a common carrier, allowing other companies to use the pipeline for a fee, can be a factor in determining if eminent domain can be used.
The bill also removes solar, wind and hydrogen energy projects from being able to use eminent domain.
House Bill 1292 also removes common carrier status for carbon pipelines but without specific changes to eminent domain.
House Bill 1210 specifies that carbon dioxide pipeline companies are liable for damages if a pipeline leaks or ruptures. Carbon dioxide is a hazardous material and a rupture is potentially fatal.
All three bills are scheduled for 2:30 p.m. Thursday in the Coteau Room before the House Energy and Natural Resources Committee. Written testimony can be submitted online until 1:30 p.m. Thursday.
Senate Bill 2322 is similar to House Bill 1414, revoking common carrier status for carbon pipelines and limiting use of eminent domain. The hearing is at 9 a.m. Thursday in Room 216, Senate Energy and Natural Resources Committee.
Senate Bill 2320 removes property tax exemptions for interstate carbon pipelines. Current law exempts carbon pipelines from property taxes for 10 years. The hearing is at 9:30 a.m. Wednesday in the Fort Totten Room, Senate Finance and Taxation Committee.
Senate Bill 2333 would encourage carbon capture. It creates a carbon fuels fund for incentives to ethanol plants to produce lower-carbon fuels. Carbon capture and storage would be among the projects eligible for funding. The state would put $3 million into the fund each biennium. A hearing is set for 10:30 a.m. Wednesday in the Fort Totten Room before the Senate Finance and Taxation Committee.
Sen. Jeff Magrum, R-Hazelton, tried to limit carbon dioxide pipelines in the 2023 session with several bills that were voted down.
He noted that there are more sponsors of anti-carbon pipeline bills in the current session.
'People have become aware of the attack on private property rights,' Magrum told the North Dakota Monitor.
The controversial Summit pipeline was also referenced last week during a hearing on a bill related to power lines.
House Bill 1258 would give the state of North Dakota authority over setback rules for electric transmission lines, similar to pipelines, where state rules override county and township ordinances.
Change is 'eminent': Property-rights fight transforms this year's SD Legislature
The North Dakota Public Service Commission approves the route permits for both pipelines and power lines, but currently, pipeline companies follow state rules on setbacks while electric utilities follow local ordinances. The bill changes which rules the utilities must follow from local to state.
Rep. Mike Brandenburg, R-Edgeley, is the lead sponsor of the bill and referenced his support of the Summit pipeline that runs through his district when he testified Thursday before the House Energy and Natural Resources Committee.
A planned powerline from Jamestown to Ellendale would also run through his district and he fears the project could be hindered by restrictive local ordinances.
Power companies also lined up in favor of the bill.
The committee gave the bill a do-pass recommendation.
The PSC last year interpreted state law to determine that state rules over setbacks for pipelines take precedence over local rules. The determination came during the permitting of the Summit Carbon Solutions pipeline.
Emmons and Burleigh counties had passed zoning ordinances that Summit felt were overly restrictive. Summit asked the PSC for clarification of what it argued was a law saying that state rules preempt local ordinances for pipeline siting.
The PSC ruled in favor of Summit and later granted the company a route permit for its carbon capture pipeline.
Emmons and Burleigh counties are challenging the PSC permit for Summit in court.
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