PIERRE, S.D. (KELO) — State lawmakers will consider charging a special fee on pipelines through South Dakota.
The Legislature’s State-Tribal Relations Committee filed HB 1093.
The legislation calls for creating a separate account for each pipeline. The yearly fee would be $2.50 per mile multiplied by 10 cents per barrel of the pipeline’s maximum capacity.
State government, a federally recognized Indian tribe, a political subdivision such as a local government, a private cooperative, or a business could seek payment from the fund.
Representative Sean Bordeaux, a Mission Democrat, is prime sponsor. Other House members on the bill are House Speaker Steven Haugaard, a Sioux Falls Republican, and Representative Peri Pourier, a Pine Ridge Democrat.
TC Energy plans to build its Keystone XL pipeline through western South Dakota to carry crude oil from Alberta to Steele City, Nebraska. Several other oil and gas pipelines run through South Dakota.
The lead Senate sponsor is Senate Democratic leader Troy Heinert of Mission. Other senators listed as co-sponsors are Democrat Red Dawn Foster of Pine Ridge and Republicans Phil Jensen of Rapid City, Lance Russell of Hot Springs and Jordan Youngberg of Madison.
Bordeaux and Heinert are members of the Rosebud Sioux Tribe. Pourier and Foster are members of the Oglala Sioux Tribe.
The state Department of Environment and Natural Resources would administer the program. The bill’s first public hearing hasn’t been scheduled.
The Legislature last year adopted a law proposed by Governor Kristi Noem that creates a fund in case of damages during pipeline construction.
The Legislature in 2016 adopted a resolution, HCR 1008, supporting construction of Keystone XL sponsored by then-Representative Don Haggar, a Sioux Falls Republican. The votes were 56-10 in the House and 23-9 in the Senate, mostly along party lines.