Latest news with #KarlaLems
Yahoo
3 days ago
- Business
- Yahoo
A strictly free market would make businesses free to ignore South Dakota
State Reps. Jon Hansen, R-Dell Rapids, and Karla Lems, R-Canton, speak to the press after they announced their campaign for governor and lieutenant governor at an event in Sioux Falls on April 24, 2025, at the Military Heritage Alliance. (Makenzie Huber/South Dakota Searchlight) South Dakota Republicans could be choosing from a crowded field when they make their choice for governor in the 2026 primary. With as many as five candidates in the race, would-be governors will need to find a way to distinguish themselves from the pack. The first announced candidate for that race was Speaker of the House Jon Hansen, a Dell Rapids attorney. He declared his candidacy for the Republican nomination in April. Hansen was the first candidate for governor to come from the new MAGA wing of the South Dakota Republican Party—referred to as 'grassroots patriots' in his announcement speech. His campaign platform contains many of the topics his wing of the party has made a priority: cutting government spending, allowing school choice, protecting private property rights, opposing abortion and tightening election laws. First candidate for governor focuses on property rights, spending and halting 'corporate welfare' Another topic that Hansen touched on was ending 'corporate welfare.' That's the name he has given to the practice of using taxpayer dollars to boost private business. His example of corporate welfare gone bad was Tru Shrimp. The company was given a $6.5 million loan of state and local funds six years ago to build a facility in Madison. While the company did manage to change its name to Iterro, it has yet to break ground. 'I think it's just unnecessary government mingling, and it's risky business, and they're wasting our taxpayer dollars to do it,' Hansen said in a South Dakota Searchlight story. 'It's the sort of stuff that we want to say 'no more' to. Let's get back to the free market, low tax and low regulation.' South Dakota got serious about using state dollars to entice and build business in 1987 when Gov. George Mickelson helped to create the Revolving Economic Development and Initiative Fund. Mickelson was able to convince the Legislature to implement a 1% sales tax increase that would sunset once it had raised $40 million for the REDI Fund. Since then the Governor's Office of Economic Development has made loans and grants worth millions of dollars to new and existing businesses and industries in the state. Taking state government loans and grants out of the marketplace would certainly be one way Hansen could approach his new role if he were elected governor. That tactic, however, fails to consider the fact that a financial boost from the state is sometimes what it takes to get the free market interested in investing in South Dakota. Putting an end to low-interest government loans would certainly put the state at a disadvantage when it comes to competing with other states for business and industry. A recent news release from the GOED showed just how invested the state has become in helping businesses grow. The news release noted a $3.4 million grant for the Big Stone Energy Storage Project thermal energy facility, a $2.6 million grant for a Bel Brands expansion and a $250,682 grant to Dakota Line Energy for a lagoon digester. The news release said the grants would result in $419 million in capital expenditures and create 180 full-time jobs. In essence, the state is betting $6 million in hopes of getting a $419 million payoff. That kind of 'government mingling,' as Hansen called it, seems to offer pretty good odds. It is, however, as he noted, 'risky business.' At its heart, investing in economic development will always be a bit of a gamble. That's why we expect government officials to place safe bets, though there is always the chance for a bust like Tru Shrimp. That's the nature of any gamble. Hansen won't be the only 'patriot' in the Republican primary for governor, with Aberdeen businessman and political influencer Toby Doeden also declaring his candidacy. If 'corporate welfare' is going to be an issue in the GOP primary, the people who like to use state loans and grants to boost their local economies have got to do a better job of telling about the benefits of government investment. One way to do that would be to keep telling their story after the initial news release has been issued. Beyond the cliched photo of local officials with hardhats and shovels for a groundbreaking, taxpayers deserve regular updates on capital expenditures and job creation. This would add a layer of government transparency to the use of tax dollars. It would also soften the criticism from people like Hansen when an outfit like Tru Shrimp is slow to pay off on its state investment. Politicians often like to tout the benefits of the 'free market.' By curtailing state grants and low-interest loans, that market will be free to invest in states that are more financially welcoming. In 1987, the state's economy was badly in need of a jump-start, and it got one from Gov. Mickelson and the REDI Fund. Since then, that gamble has paid off more often than it's gone bust. What Hansen calls 'corporate welfare' has been a usually sound investment for South Dakota. SUBSCRIBE: GET THE MORNING HEADLINES DELIVERED TO YOUR INBOX
Yahoo
25-04-2025
- Politics
- Yahoo
First into the race: Hansen running for SD governor
SIOUX FALLS, S.D. (KELO) — South Dakota has its first announced ticket for governor and lieutenant governor in 2026. Republican Rep. Jon Hansen said Thursday evening he is running for governor with Republican Rep. Karla Lems as his running mate. The 39-year-old lawyer, who represents Minnehaha and Moody Counties in the state legislature, currently serves as speaker of the state House of Representatives. Lems serves as speaker pro tempore. Witnesses called in Sioux Falls murder trial With regard to running for governor in 2026, current Gov. Larry Rhoden's office sent KELOLAND News a statement from Rhoden on Wednesday which says in part 'we are not ready to make a public announcement.' South Dakota's lone member of the U.S. House of Representatives, Republican Dusty Johnson, said Tuesday he has considered running for governor. KELOLAND News will have much more from Hansen's announcement Thursday night at 10 p.m. Central time. Copyright 2025 Nexstar Media, Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
Yahoo
12-03-2025
- Business
- Yahoo
Carbon pipeline company seeks pause in permitting schedule after SD adopts eminent domain ban
Rep. Karla Lems, R-Canton, speaks to hundreds of rally attendees at the South Dakota Capitol in Pierre on Jan. 13, 2025, during an event highlighting opposition to a carbon dioxide pipeline. (Joshua Haiar/South Dakota Searchlight) Summit Carbon Solutions wants the schedule of proceedings for its South Dakota permit application 'paused for review and adjustment' after the state's Legislature and governor approved a ban on the use of eminent domain for carbon dioxide pipelines. The company filed a motion Wednesday with the South Dakota Public Utilities Commission asking for a suspension of the scheduling order and an indefinite extension of the deadline for regulatory action on the application. The existing schedule includes a multi-day evidentiary hearing in August and September. Summit cited House Bill 1052, signed last week by Republican Gov. Larry Rhoden, as a significant obstacle to completing land surveys along the pipeline's planned route. 'With the passage of HB 1052, the Applicant's ability to obtain survey permission has changed,' wrote Summit attorney Brett Koenecke. 'The surveys which are necessarily required to inform the route decisions as to right of way will be significantly delayed.' South Dakota governor signs eminent domain ban on carbon pipelines Eminent domain is a legal process for acquiring access to land for projects that have a public benefit, with compensation for landowners determined by a court. It's commonly used for projects such as electrical power lines, water pipelines, oil pipelines and highways. The ban has been hailed as a victory by some landowners who have resisted Iowa-based Summit's proposed $9 billion carbon capture pipeline. The project would transport carbon dioxide emissions from dozens of ethanol plants in five states to an underground storage site in North Dakota. It would qualify for billions in federal tax credits incentivizing the sequestration of heat-trapping greenhouse gas emissions. The project has permits in other states, although some are being challenged in court. South Dakota regulators rejected Summit's first application in 2023, largely due to the route's conflicts with local ordinances that mandate minimum distances between pipelines and existing features. The company has since made adjustments to its route and reapplied. Critics of the project are interpreting Summit's motion as another victory for the opposition. 'This request for extension is a clear sign that Summit knows they have lost the trust of South Dakota, and will be unable to proceed on their original timeline without being able to force surveys on unwilling landowners,' said Chase Jensen, of Dakota Rural Action, in a statement. Rhoden, a longtime advocate for property rights, described the ban last week as a way to restore trust between landowners and developers. Summit issued a statement last week criticizing the ban as unfairly targeting its project and said 'all options are on the table' when asked if it was considering legal action. Summit did not immediately respond to South Dakota Searchlight's requests for comment Wednesday. The company is not the first to encounter trouble earning a permit for a carbon capture pipeline in South Dakota. Navigator CO2 canceled its $3 billion project in October 2023, citing the 'unpredictable nature of the regulatory and government processes involved, particularly in South Dakota and Iowa.' South Dakota regulators had denied Navigator's permit application a month earlier. SUBSCRIBE: GET THE MORNING HEADLINES DELIVERED TO YOUR INBOX
Yahoo
12-03-2025
- Business
- Yahoo
Carbon pipeline company seeks pause in permitting schedule after SD adopts eminent domain ban
Rep. Karla Lems, R-Canton, speaks to hundreds of rally attendees at the South Dakota Capitol in Pierre on Jan. 13, 2025, during an event highlighting opposition to a carbon dioxide pipeline. (Joshua Haiar/South Dakota Searchlight) Summit Carbon Solutions wants the schedule of proceedings for its South Dakota permit application 'paused for review and adjustment' after the state's Legislature and governor approved a ban on the use of eminent domain for carbon dioxide pipelines. The company filed a motion Wednesday with the South Dakota Public Utilities Commission asking for a suspension of the scheduling order and an indefinite extension of the deadline for regulatory action on the application. The existing schedule includes a multi-day evidentiary hearing in August and September. Summit cited House Bill 1052, signed last week by Republican Gov. Larry Rhoden, as a significant obstacle to completing land surveys along the pipeline's planned route. 'With the passage of HB 1052, the Applicant's ability to obtain survey permission has changed,' wrote Summit attorney Brett Koenecke. 'The surveys which are necessarily required to inform the route decisions as to right of way will be significantly delayed.' South Dakota governor signs eminent domain ban on carbon pipelines Eminent domain is a legal process for acquiring access to land for projects that have a public benefit, with compensation for landowners determined by a court. It's commonly used for projects such as electrical power lines, water pipelines, oil pipelines and highways. The ban has been hailed as a victory by some landowners who have resisted Iowa-based Summit's proposed $9 billion carbon capture pipeline. The project would transport carbon dioxide emissions from dozens of ethanol plants in five states to an underground storage site in North Dakota. It would qualify for billions in federal tax credits incentivizing the sequestration of heat-trapping greenhouse gas emissions. The project has permits in other states, although some are being challenged in court. South Dakota regulators rejected Summit's first application in 2023, largely due to the route's conflicts with local ordinances that mandate minimum distances between pipelines and existing features. The company has since made adjustments to its route and reapplied. Critics of the project are interpreting Summit's motion as another victory for the opposition. 'This request for extension is a clear sign that Summit knows they have lost the trust of South Dakota, and will be unable to proceed on their original timeline without being able to force surveys on unwilling landowners,' said Chase Jensen, of Dakota Rural Action, in a statement. Rhoden, a longtime advocate for property rights, described the ban last week as a way to restore trust between landowners and developers. Summit issued a statement last week criticizing the ban as unfairly targeting its project and said 'all options are on the table' when asked if it was considering legal action. Summit did not immediately respond to South Dakota Searchlight's requests for comment Wednesday. The company is not the first to encounter trouble earning a permit for a carbon capture pipeline in South Dakota. Navigator CO2 canceled its $3 billion project in October 2023, citing the 'unpredictable nature of the regulatory and government processes involved, particularly in South Dakota and Iowa.' South Dakota regulators had denied Navigator's permit application a month earlier. SUBSCRIBE: GET THE MORNING HEADLINES DELIVERED TO YOUR INBOX
Yahoo
09-03-2025
- Business
- Yahoo
South Dakota law raises questions about future of massive Midwest pipeline
SIOUX FALLS, S.D. (AP) — A new law in South Dakota prohibiting the use of eminent domain to acquire land for carbon capture pipelines raises questions about the viability of a proposed 2,500 mile (4,023-kilometer) project snaking through five Midwest states. Summit Carbon Solutions, the company behind the estimated $8.9 billion pipeline, vowed to keep pursuing the project despite South Dakota Gov. Larry Rhoden's announcement Thursday that he had signed a bill into law that will make routing the line much more difficult. The law bans Summit from forcing South Dakota landowners to allow the pipeline through their property. Plans call for the pipeline to carry greenhouse gas emissions from more than 50 ethanol plants in Iowa, Minnesota, Nebraska, North Dakota and South Dakota to a spot in North Dakota, where it would be permanently stored underground. Legal action is possible It's unclear whether Summit will pursue legal action but the company said in a statement that 'all options are on the table" and the project 'moves forward' in other states. The company promised it would have more news soon. Large pipeline projects typically rely on eminent domain, with companies arguing that even if most landowners agree to grant access to their property, a project can be scuttled if only a few refuse. Summit says the company, which has secured over 2,700 easements across the region, has approval for routes in Iowa and North Dakota and a leg in Minnesota. Can the line be routed through Minnesota? The current proposed route would cut through nearly 700 miles (1,126.5 kilometers) of South Dakota before entering North Dakota, so rerouting to the east through Minnesota would be a big challenge. A Summit spokesperson did not respond to questions Friday about whether the company would consider a new route. The sponsor of the South Dakota bill, Republican Rep. Karla Lems, said Summit could either reroute its pipeline through Minnesota into North Dakota or 'negotiate with landowners in South Dakota' and go around opponents. Gov. Rhoden said the South Dakota law wasn't intended to kill the project and suggested Summit see it as 'an opportunity to reset.' Minnesota is a relatively small part of Summit's overall project. The only segment approved in the state is a 28-mile (45-kilometer) leg from an ethanol plant near Fergus Falls to the North Dakota border. Summit's project also includes two legs in southern Minnesota that would go into Iowa. A Minnesota Public Utilities Commission spokesperson did not respond to phone or email messages. The pipeline's importance to the ethanol industry The country's transition to electric vehicles has been slower than many people expected, but most think a shift away from internal combustion engines will eventually happen. Nearly 40% of the nation's corn crop is brewed into ethanol, which is blended into most gasoline sold in the U.S. Midwest farmers and the ethanol industry therefore see it as essential to have new markets as less of the fuel additive goes to power cars. They see passenger jet fuel as a potentially huge new market for ethanol. However, under current rules the process for turning ethanol into aviation fuel would need to emit less carbon dioxide to qualify for tax breaks intended to reduce greenhouses. The carbon capture pipeline is a key part of achieving those goals, Iowa Renewable Fuels Association Executive Director Monte Shaw said. Walt Wendland, who runs an ethanol plant in Onida, South Dakota, said the 'ethanol industry is a margin business' and the new state law will put South Dakota ethanol producers at a disadvantage. 'Ever since I built a plant, I never wanted an advantage, just don't put me at a disadvantage,' Wendland said. Will the pipeline ever be built? It has been four years since Summit proposed building the pipeline, along with two other companies that later abandoned their plans. It has been a challenging process for Summit, which dealt with lawsuits in Nebraska and elsewhere, opposition before a regulatory commission in Iowa and now the eminent domain ban in South Dakota. In its statement, Summit expressed optimism about the future but didn't offer specifics about how it could build a pipeline without eminent domain authority in South Dakota. Since the pipeline was proposed, the federal government's approach to climate change also has changed dramatically. Democratic President Joe Biden increased tax incentives under the Inflation Reduction Act and Bipartisan Infrastructure Law to encourage carbon capture as an effort to slow climate change. However, Republican President Donald Trump has emphasized the need for more oil and gas drilling and coal mining, and has put far less emphasis on alternative energy. Trump has not indicated whether his views will lead to changing federal policy regarding carbon capture pipelines. ___ Dura reported from Bismarck, North Dakota. Sarah Raza And Jack Dura, The Associated Press Sign in to access your portfolio
