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Congress removed the proposed pipeline-siting provision from its reconciliation bill, according to a May 22, 2025, report by North Dakota Monitor. Two days earlier, South Dakota Searchlight had reported that removal was expected, not yet confirmed. The proposal would have shifted licensing authority for several kinds of energy pipelines to the Federal Energy Regulatory Commission (FERC); opponents feared that change could displace state-level review relevant to a proposed carbon dioxide pipeline in the Upper Midwest.
What the proposed federal permit provision would have changed
In a May 19, 2025, report, South Dakota Searchlight described a provision in a 1,100-page reconciliation bill that would have given FERC exclusive authority to issue licenses for pipelines carrying natural gas, carbon dioxide, hydrogen, oil, and other energy products or byproducts. Critics said that federal authority could override state regulation relevant to the proposed Summit Carbon Solutions project. The report described a proposal, not a change that had already become law. South Dakota Searchlight, May 19, 2025
Why South Dakota opponents focused on Summit’s pipeline
Summit Carbon Solutions’ proposed project would collect carbon dioxide from ethanol plants in Iowa, Nebraska, Minnesota, and South Dakota and transport it to a sequestration site in North Dakota, according to the May 19 report. South Dakota’s Public Utilities Commission had rejected the project twice, the report said. That state permitting history helps explain why opponents objected to a federal provision they believed could limit state authority over siting.
The debate also involved landowner concerns and state law. The report said Gov. Larry Rhoden signed a law in March 2025 prohibiting carbon pipeline companies from using eminent domain. The federal siting proposal was one part of a broader permitting dispute, not the only issue bearing on the project.
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Removal was expected on May 19 and reported confirmed on May 22
On May 19, South Dakota Searchlight said removal was expected to be announced in the House Rules Committee, citing Kristen Blakely, a staff member for Rep. Dusty Johnson. State Sen. Joy Hohn told Searchlight, “It was good to see that they removed the federal siting authority,” in that same report, when removal was still described as expected. A subsequent May 22 North Dakota Monitor brief reported that the controversial provision had been removed. North Dakota Monitor, May 22, 2025
The separate dispute over the 45Q tax credit
Activists welcomed the expected removal of the siting provision but also called for Congress to eliminate the 45Q carbon-sequestration tax credit, which the May 19 report described as important to Summit’s business model. The report said the bill proposal would change eligibility, including a construction-start deadline and restrictions involving specified foreign entities. Those were descriptions of proposed bill changes in May 2025, not confirmation of current 45Q rules.
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Chase Jensen of Dakota Rural Action said, “We are calling for Rep. Johnson to die on this hill,” referring to the group’s demand that Johnson oppose 45Q. The tax-credit question is distinct from who has authority to site or license a pipeline: removing a permitting provision would not, by itself, settle the separate debate over federal tax policy. South Dakota Searchlight, May 19, 2025
Independent reader supportYour contribution helps us test, update, and keep practical guides available for everyone.What the report said about expedited environmental review
The Searchlight account also described a separate proposed expedited environmental-review mechanism: a $10 million fee, a one-year review period, and a possible extension of up to six months. Blakely told the publication that the mechanism no longer applied to carbon pipelines because it was tied to the removed permit-preemption provision. That was her explanation of the proposal’s scope, not an independent legal analysis of the final bill text. These figures describe the May 2025 proposal; they should not be read as current law. South Dakota Searchlight, May 19, 2025
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