Gevo, a company focused on producing aviation fuel from ethanol in South Dakota, has made a significant contribution of $167,000 to support the defense of a new carbon dioxide pipeline law facing potential rejection by voters in November. The contribution, directed to the ballot question committee “Protect South Dakota’s Ag Future,” underscores the company’s stance on the legislation’s importance to the state’s agricultural and economic future.
The contribution, which falls outside of any contribution limits due to South Dakota’s regulations on ballot question committees, has sparked controversy among opponents of the pipeline law. Critics, including Ed Fischbach of rural Aberdeen, have raised concerns about the timing of the disclosure, suggesting it was strategically delayed to avoid scrutiny before the June 4 primary election.
Walt Bones, chairman of Protect South Dakota’s Ag Future and former South Dakota Secretary of Agriculture, addressed the timing of the contribution’s disclosure, explaining that while Gevo authorized the contribution on May 13, it was not reported until a supplemental campaign finance report filed on June 4, the day of the primary election.
The funds are being used, according to Bones, to educate voters about the benefits of the proposed carbon dioxide pipeline and the broader implications for the state’s agricultural sector. This effort includes television advertising campaigns aimed at highlighting the economic advantages and regulatory protections embedded in the new pipeline law.
Kent Hartwig, treasurer of Protect South Dakota’s Ag Future and director of state government affairs for Gevo, emphasized the company’s commitment to promoting understanding of the pipeline’s role in enhancing South Dakota’s agricultural competitiveness. Gevo plans to contribute carbon dioxide to the pipeline proposed by Iowa-based Summit Carbon Solutions, which aims to transport carbon to underground storage in North Dakota.
The legislation, adopted by the South Dakota Legislature and Governor Kristi Noem, aims to facilitate the development of an $8.5 billion pipeline that would capture carbon dioxide emissions from ethanol and aviation fuel plants across the Midwest. The project is supported by federal tax credits aimed at reducing atmospheric carbon levels by storing carbon in underground reservoirs.
Opponents of the pipeline law, including the SD Property Rights and Local Control Alliance, have mobilized against what they perceive as inadequate protections for landowners and communities affected by the pipeline’s construction. Their concerns center on provisions that grant the Public Utilities Commission authority to override local setbacks and the potential use of eminent domain.
As the November election approaches, stakeholders on both sides continue to campaign vigorously, shaping public perception and influencing voter decisions on the future of carbon infrastructure in the state.