85
th Legislative Session _ 2010
Committee: House State Affairs
Thursday, February 18, 2010
P - Present
E - Excused
A - Absent
Roll Call
P Boomgarden
P Engels
P Feinstein
P Gosch
P Hunhoff (Bernie)
P Lucas
P Lust
P Rausch
P Rave
P Steele
P Turbiville
P Noem, Vice-Chair
P Faehn, Chair
OTHERS PRESENT: See Original Minutes
The meeting was called to order by Chairman Faehn.
MOTION: TO APPROVE THE MINUTES OF FEBRUARY 17, 2010.
Moved by: Turbiville
Second by: Rausch
Action: Prevailed by voice vote.
HB 1135: rescind all previous applications of the State of South Dakota for the
calling of a federal constitutional convention to amend the Constitution of the United
States.
Proponents: Representative Betty Olson
Rita Houglum, Eagle Forum
Chris Hupke, SD Family Policy Council
MOTION: DO PASS HB 1135
Moved by: Noem
Second by: Gosch
Action: Prevailed by roll call vote. (10-2-1-0)
Voting Yes: Boomgarden, Gosch, Lucas, Lust, Rausch, Rave, Steele, Turbiville, Noem, Faehn
Voting No: Feinstein, Hunhoff (Bernie)
Excused: Engels
HB 1192: establish an incentive grant program for the installation of ethanol blender
pumps and to make an appropriation therefor.
Proponents: Representative Mitch Fargen
Senator Dave Knudson
Jeff Bloomberg, Bureau of Administration
Orrin Swayze, Self, Wilmot (Handout 1)
Owen Jones, Self, Britton (Handouts 2 and 3)
Matt McCaulley, SD Corn Growers Association
John Kerstiens, SD Farmers Union
Harry Christianson, Ethanol Producers of SD
Dawna Leitzke, SD Petroleum & Propane Marketers Association
Brenda Forman, SD Association of Cooperatives
MOTION: AMEND HB 1192
1192td
On the printed bill, delete everything after the enacting clause and insert:
" Section 1. The ethanol blender pump incentive grant program is hereby established and shall
be administered by the Department of Tourism and State Development. Under the program, the
department shall award incentive grants to motor fuel retail dealers as defined in § 10-47B-3 for the
purpose of entering into contracts for the purchase or installation of ethanol blender pumps and
associated above-ground piping and storage systems and related equipment to be used at facilities
operated by the retail dealers for the sale of motor fuel to the public. No grant under the program may
exceed ten thousand dollars. However, a retail dealer may receive more than one grant under the
program. To be eligible for a grant, a retail dealer shall be located in South Dakota. Grants may be
made under the program during the period beginning on April 1, 2010 and ending on May 28, 2010
if funds are available in the ethanol blender pump incentive grant fund established pursuant to
section 3 of this Act. The department may use up to five percent of any amount appropriated to the
ethanol blender pump incentive fund for administration, the dissemination of information related to
the ethanol blender pump incentive program, and the dissemination of information related to the
benefits of ethanol.
Section 2. For purposes of this Act, the term, ethanol blender pump, refers to a mechanism
provided by the retail dealer for the dispensing at retail of ethanol blend as defined in § 10-47B-3
so that the end user may select the ratio of ethanol to gasoline to be dispensed. The pump shall be
the type that:
(1) Dispenses at retail a blend of gasoline and ethanol in the ratio selected by the purchaser;
(2) Is manufactured to an industry standard and carries a warranty for compatibility with
dispenser components and storage and piping systems;
(3) Has at least four hoses and dispenses the following:
(a) Either a blend of ten percent ethanol or the minimum blend percentage approved
for all vehicles by the United States Environmental Protection Agency;
(b) A blend of at least fifteen percent ethanol; and
(c) E85 fuel; and
(4) Complies with all alternative fuel, biofuel, and flexible fuel requirements established by
law.
Section 3. There is hereby created a special fund within the Department of Tourism and State
Development known as the ethanol blender pump incentive grant fund. Money in the fund may only
be used to provide incentive grants pursuant to this Act and as otherwise provided in section 1 of this
Act. The fund consists of legislative appropriations, donations, interest on investments, and moneys
from all legal public and private sources, including federal grants. All funds received in the ethanol
blender pump incentive grant fund shall be set forth in an informational budget as described in § 4-7-7.2.
Section 4. There is hereby appropriated the sum of one million dollars ($1,000,000), or so much
thereof as may be necessary, in federal fund expenditure authority, to the Department of Tourism and
State Development for the expenditure of funds received through the American Recovery and
Reinvestment Act of 2009, P.L. 111-5 to implement the ethanol blender pump incentive grant
program as provided in this Act.
Section 5. The secretary of tourism and state development shall approve vouchers and the state
auditor shall draw warrants to pay expenditures authorized by this Act.
Section 6. Whereas, this Act is necessary for the support of the state government and its existing
public institutions, an emergency is hereby declared to exist, and this Act shall be in full force and
effect from and after its passage and approval."
Moved by: Rave
Second by: Noem
Action: Prevailed by voice vote.
MOTION: DO PASS HB 1192 AS AMENDED
Moved by: Rave
Second by: Noem
Action: Prevailed by roll call vote. (13-0-0-0)
Voting Yes: Boomgarden, Engels, Feinstein, Gosch, Hunhoff (Bernie), Lucas, Lust, Rausch,
Rave, Steele, Turbiville, Noem, Faehn
MOTION: AMEND TITLE OF HB 1192
1192tta
On page 1, line 1, of the printed bill, delete everything after "to" and insert "establish an ethanol
blender pump incentive grant program, to make an appropriation therefor, and to declare an
emergency.".
On page 1, delete line 2.
Moved by: Rave
Second by: Gosch
Action: Prevailed by voice vote.
HB 1263: repeal certain provisions relating to the terms of wind easements and wind
energy leases.
Proponents: Representative Kristi Noem
Representative Val Rausch
Senator Larry Rhoden
Senator Russell Olson
Representative Mitch Fargen
Darla Pollman-Rogers, SD Rural Electric Association
Matt McCaulley, Titan Wind (Handouts 4, 5, 6)
Mark Williamson, Titan Wind
Neil Fulton, Governor's Office
Bob Sahr, East River Electric
John Kerstiens, SD Farmers Union
Opponents: Brett Koenecke, Iberdrola Renewables and Invenergy
Jim Hood, Missouri Energy Services
MOTION: AMEND HB 1263
1263te
On the printed bill, delete everything after the enacting clause and insert:
" Section 1. That § 43-13-16 be amended to read as follows:
43-13-16. For purposes of §§ 43-13-17 to 43-13-19 43-13-20, inclusive, and sections 3 to 7,
inclusive, of this Act, the term, wind easement, means a right, whether or not stated in the form of
a restriction, option to obtain an easement, easement, covenant, or condition, in any deed, will, or
other instrument executed by or on behalf of any owner of land or air space for the purpose of
ensuring adequate exposure of a wind power system to the winds, or an agreement to refrain from
developing a wind power system.
Section 2. That § 43-13-17 be amended to read as follows:
43-13-17. Any property owner may grant a wind easement in the same manner and with the same
effect as a conveyance of an interest in real property. The easement shall be created in writing, and
the easement or a memorandum thereof shall be filed, duly recorded, and indexed in the office of the
register of deeds of the county in which the easement is granted. Any such easement runs with the
land or lands benefited and burdened and terminates upon the conditions stated in the easement,
except that the term of any such easement may not exceed fifty years. Any such easement is void if
no development of the potential to produce energy from wind power associated with the easement
has occurred within five years after the effective date of the easement began. Any payments
associated with the granting or continuance of any such easement shall be made on an annual basis
to the owner of record of the real property at the time the payment is made. If the easement holder
mortgages or otherwise encumbers to any party any part of the easement holder's rights and interests
under the easement, any such mortgage or encumbrance on the easement is the responsibility of the
easement holder and attaches only to the easement holder's rights and does not otherwise attach to
the land or obligate the property owner. Each wind easement agreement shall include a statement
disclosing that the easement holder may mortgage or encumber any part of the easement holder's
rights and interests under the agreement unless otherwise specified in the agreement.
Section 3. That chapter 43-13 be amended by adding thereto a NEW SECTION to read as
follows:
The five-year development period specified in §§ 43-13-17 and 43-13-19 shall be extended to
a maximum development period of twelve years for any wind developer that files a sworn affidavit
with the Public Utilities Commission. The affidavit is for informational purposes only and shall:
(1) State the intention of the wind developer to pursue a proposed wind energy project of five
hundred megawatts or greater in nameplate capacity and a transmission solution for the
project involving an interstate electric transmission line with a design of 345 kV or
greater; and
(2) Describe the geographic area covered by the project.
The twelve-year period applies to any wind easement or wind lease for property within the
geographic area described in the affidavit and held under a wind easement or wind lease by the
developer filing the certification or its affiliate, member, or partner.
The twelve-year maximum development period commences on the earlier of the effective date
of the wind easement or wind lease or the date the wind easement or wind lease was executed by all
parties to the agreement.
Section 4. That chapter 43-13 be amended by adding thereto a NEW SECTION to read as
follows:
For purposes of §§ 43-13-17 to 43-13-20, inclusive, and sections 3 to 7, inclusive, of this Act,
development of the potential to produce energy from wind power associated with the wind easement
or wind lease occurs when the foundation is poured for the first wind turbine to be installed on any
property that is part of any one wind energy project, on any property that is part of any single
construction stage of a wind energy project, or on any property that is described in the notice
required by § 49-41B-25.1.
Section 5. That chapter 43-13 be amended by adding thereto a NEW SECTION to read as
follows:
In addition to any other requirements of law, the filing required pursuant to § 43-13-17 shall
include the following information:
(1) The names and addresses of the parties;
(2) A legal description of the real property involved;
(3) Description of property rights conveyed;
(4) Term of the wind easement;
(5) Description of any restrictions placed on the property for essential services as defined in
§ 43-13-20; and
(6) In the case of a third party acquisition, the name and address of the party for which the
wind easement is acquired.
This information shall be contained in a separately filed and recorded document. Nothing in this
section prohibits the filing of additional documents between the parties.
Section 6. That chapter 43-13 be amended by adding thereto a NEW SECTION to read as
follows:
No wind easement or wind lease may be executed by the parties until at least ten business days
after the first proposed easement or lease has been delivered to the property owner.
Section 7. That chapter 43-13 be amended by adding thereto a NEW SECTION to read as
follows:
No wind easement or lease may require either party to maintain the confidentiality of any
negotiations or terms of any proposed easement or lease except that the parties may agree to a mutual
confidentiality agreement in the final executed wind easement, wind lease, or a separate document.
Any disclosure of trade secrets or competitive business plans of the developer may be subject to the
confidentiality agreement whether occurring before or after execution of the wind easement or wind
lease."
Moved by: Rave
Second by: Gosch
Action: Prevailed by voice vote.
MOTION: AMEND HB 1263
1263oa
On the previously adopted amendment (1263te), in Section 7, delete "No wind easement or
lease may require either party" and insert "No wind developer may require a property owner".
Moved by: Hunhoff (Bernie)
Second by: Feinstein
Action: Prevailed by voice vote.
MOTION: DO PASS HB 1263 AS AMENDED
Moved by: Rave
Second by: Gosch
Action: Prevailed by roll call vote. (13-0-0-0)
Voting Yes: Boomgarden, Engels, Feinstein, Gosch, Hunhoff (Bernie), Lucas, Lust, Rausch,
Rave, Steele, Turbiville, Noem, Faehn
MOTION: AMEND TITLE OF HB 1263
1263ttc
On page 1, line 1, of the printed bill, delete "repeal" and insert "revise".
Moved by: Rave
Second by: Noem
Action: Prevailed by voice vote.
HB 1268: establish certain requirements and safeguards relating to wind easements
and wind energy leases.
Presented by: Representative Mitch Fargen
MOTION: TO TABLE HB 1268
Moved by: Rave
Second by: Feinstein
Action: Prevailed by roll call vote. (12-0-1-0)
Voting Yes: Boomgarden, Engels, Feinstein, Gosch, Hunhoff (Bernie), Lucas, Lust, Rausch,
Rave, Steele, Turbiville, Faehn
Excused: Noem
HB 1194: revise certain provisions concerning wind easements and to specify certain
information to be included in the recorded documents.
Presented by: Representative Val Rausch
MOTION: TO TABLE HB 1194
Moved by: Rave
Second by: Steele
Action: Prevailed by roll call vote. (12-0-1-0)
Voting Yes: Boomgarden, Engels, Feinstein, Gosch, Hunhoff (Bernie), Lucas, Lust, Rausch,
Rave, Steele, Turbiville, Faehn
Excused: Noem
MOTION: ADJOURN
Moved by: Rave
Second by: Steele
Action: Prevailed by voice vote.
Grace Curtis
____________________________
Committee Secretary
Bob Faehn, Chair
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