94
th Legislative Session _ 2019
Committee: Senate Commerce and Energy
Thursday, February 21, 2019
P - Present
E - Excused
A - Absent
Roll Call
P Curd
P Kennedy
P Monroe
P Nelson
P Novstrup
P Schoenbeck, Vice-Chair
P Stalzer, Chair
OTHERS PRESENT: See Original Minutes
The meeting was called to order by Senator Stalzer.
MOTION: TO APPROVE THE MINUTES OF FEBRUARY 19
Moved by: Monroe
Second by: Schoenbeck
Action: Prevailed by voice vote.
MOTION: SENATE ADVISE AND CONSENT TO THE REAPPOINTMENT OF JASON C.
AHRENDT OF LINCOLN COUNTY, SIOUX FALLS, SOUTH DAKOTA, TO THE
SOUTH DAKOTA LOTTERY COMMISSION
Moved by: Schoenbeck
Second by: Kennedy
Action: Prevailed by roll call vote. (7-0-0-0)
Voting Yes: Curd, Kennedy, Monroe, Nelson, Novstrup, Schoenbeck, Stalzer
Proponents:
Norm Lingle
William Shoma
Opponenets:
none
MOTION: SENATE ADVISE AND CONSENT TO THE REAPPOINTMENT OF WILLIAM
SHORMA OF UNION COUNTY, DAKOTA DUNES, SOUTH DAKOTA, TO THE
SOUTH DAKOTA LOTTERY COMMISSION
Moved by: Monroe
Second by: Nelson
Action: Prevailed by roll call vote. (7-0-0-0)
Voting Yes: Curd, Kennedy, Monroe, Nelson, Novstrup, Schoenbeck, Stalzer
Proponents:
William Shoma
Opponents:
none
MOTION: PLACE REAPPOINTMENT ON CONSENT CALENDAR
Moved by: Schoenbeck
Second by: Kennedy
Action: Prevailed by voice vote.
MOTION: SENATE ADVISE AND CONSENT TO THE APPOINTMENT OF MATT JUDSON OF
HUGHES COUNTY, PIERRE, SOUTH DAKOTA, TO THE BOARD OF ECONOMIC
DEVELOPMENT
Moved by: Schoenbeck
Second by: Monroe
Action: Prevailed by roll call vote. (7-0-0-0)
Voting Yes: Curd, Kennedy, Monroe, Nelson, Novstrup, Schoenbeck, Stalzer
Proponents:
Aaron Scheibe
Opponents:
none
SB 15: extend the timeline for granting wind energy permits.
Presented by: Gary Hanson, Public Utilities Commission
Proponents: Adam De Hueck, Public Utilities Commission
Brett Koenecke, Avangrid Renewables LLC
Steve Willard, South Dakota Electric Utility Companies
Justin G. Smith, South Dakota Wind Energy Association
Aaron Scheibe,Office of the Governor
MOTION: AMEND SB 15
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On the printed bill, delete everything after the enacting clause and insert:
" Section 1. That § 49-41B-2 be amended to read:
49-41B-2. Terms as used in this chapter mean:
(1) "AC/DC conversion facility," an asynchronous AC to DC to AC tie that is directly connected
to a transmission facility or a facility that connects an AC transmission facility with a DC
transmission facility or vice versa;
(2) "Associated facilities," facilities which include aqueducts, diversion dams, transmission
substations, storage ponds, reservoirs, or cooling ponds;
(3) "Carbon dioxide," a fluid that consists of more than ninety percent carbon dioxide molecules
compressed in a supercritical state;
(4) "Commission," the Public Utilities Commission;
(5) "Construction," any clearing of land, excavation, or other action that would affect the
environment of the site for each land or rights of way upon or over which a facility may be
constructed or modified, but not including activities incident to preliminary engineering or
environmental studies. This term includes modifications to facilities as defined in § 49-41B-2.2;
(6) "Energy conversion facility," any new facility, or facility expansion, designed for or capable of
generation of one hundred megawatts or more of electricity, but does not include any wind or
solar energy facilities;
(7) "Facility," any energy conversion facility, AC/DC conversion facility, transmission facility, solar
energy facility, or wind energy facility, and associated facilities;
(8) "Permit," the permit issued by the commission under this chapter required for the construction
and operation of a facility;
(9) "Person," an individual, partnership, limited liability company, joint venture, private or public
corporation, association, firm, public service company, cooperative, political subdivision,
municipal corporation, government agency, public utility district, or any other public or private
entity, however organized;
(10) "Siting area," that area within ten miles in any direction of a proposed energy conversion facility,
AC/DC conversion facility, or which is determined by the commission to be affected by a
proposed energy conversion facility;
(11) "Trans-state transmission facility," an electric transmission line and its associated facilities
which originates outside the State of South Dakota, crosses this state and terminates outside the
State of South Dakota; and which transmission line and associated facilities delivers electric
power and energy of twenty-five percent or less of the design capacity of such line and facilities
for use in the State of South Dakota;
(12) "Utility," any person engaged in and controlling the generation or transmission of electric energy
and gas or liquid transmission facilities as defined by § 49-41B-2.1;
(13) "Wind energy facility," a new facility, or facility expansion, consisting of a commonly managed
integrated system of towers, wind turbine generators with blades, power collection systems, and
electric interconnection systems, that converts wind movement into electricity and that is
designed for or capable of generation of one hundred megawatts or more of electricity. A wind
energy facility expansion includes the addition of new wind turbines, designed for or capable
of generating twenty-five megawatts or more of electricity, which are to be managed in common
and integrated with existing turbines and the combined megawatt capability of the existing and
new turbines is one hundred megawatts or more of electricity. The number of megawatts
generated by a wind energy facility is determined by adding the nameplate power generation
capability of each wind turbine;
(14) "Solar energy facility," a new facility, or facility expansion, consisting of a commonly managed
integrated system of solar panels, power collection systems, electric interconnection systems, and
associated facilities, that converts solar energy into electricity and is designed for or capable of
generating one hundred megawatts AC or more of electricity. A facility expansion includes the
addition of new solar panels, designed for or capable of generating twenty-five megawatts AC
or more of electricity, that are to be managed in common and integrated with existing solar
panels, and the combined megawatt capability of the existing and new solar panels is one
hundred megawatts AC or more of electricity.
Section 2. That § 49-41B-35 be amended to read:
49-41B-35. To implement the provisions of this chapter regarding facilities, the commission shall
promulgate rules pursuant to chapter 1-26. Rules may be adopted by the commission:
(1) To establish the information requirements and procedures that every utility must follow when
filing plans with the commission regarding its proposed and existing facilities;
(2) To establish procedures for utilities to follow when filing an application for a permit to construct
a facility, and the information required to be included in the application; and
(3) To require bonds, guarantees, insurance, or other requirements to provide funding for the
decommissioning and removal of a
solar or wind energy facility.
Section 3. That § 49-41B-36 be amended to read:
49-41B-36. Nothing in this chapter is a delegation to the commission of the authority to route a
transmission facility, or to designate or mandate location of an energy conversion facility, AC/DC
conversion facility, solar energy facility, or wind energy facility.
Section 4. That chapter 49-41B be amended by adding a NEW SECTION to read:
Within nine months of receipt of the initial application for a permit for the construction of a solar energy
facility, the commission shall make complete findings and render a decision on whether a permit should be
granted, denied, or granted upon any terms, conditions, or modifications of the construction, operation, or
maintenance the commission determines are appropriate. In the decision, the commission shall find that the
construction of the facility meets all requirements of this chapter. Notice of the commission's decision shall
be given to the applicant and to parties to the public input meeting within ten days following the decision.
Section 5. That § 49-41B-5.2 be amended to read:
49-41B-5.2. The Within thirty days following the filing of an application for permit, the applicant shall
notify, in writing, the owner of record of any land that is located within one-half mile of the proposed site
where the facility is to be constructed. For purposes of this section, the owner of record is limited to the
owner designated to receive the property tax bill sent by the county treasurer. The notice shall be mailed by
certified mail. The applicant shall also publish a notice of the proposed facility. Notification shall be
published in the official newspaper of each county in which the proposed site is located. The notice shall
be published at least once each week for at least two consecutive weeks. The notice shall contain a
description of the nature and location of the facility. Any notification required by this section shall state the
date, time, and location of the public hearing and shall be made no later than thirty days prior to the date of
the public hearing. However, the second published notice shall be made no later than twenty days prior to
the date of the public hearing input meeting. The applicant shall also file a copy of the application with the
auditor of each county in which the proposed facility will be located.
Section 6. That § 49-41B-15 be amended to read:
49-41B-15. Within thirty days following receipt of an application for a permit, the commission shall:
(1) Schedule a public hearing input meeting;
(2) Notify the applicant of the hearing public input meeting; and
(3) Serve notice of the application and hearing public input meeting upon the governing bodies of
the counties and municipalities totally or partially within the area of the proposed facility;
(4) Publish a notice of the time, place, and purpose of the public hearing in at least one newspaper
of general circulation in counties totally or partially within the area of the proposed facility; and
(5) File a copy of the application with the auditor of the county or counties in which the proposed
facility will be constructed.
Section 7. That § 49-41B-16 be amended to read:
49-41B-16. Within thirty days after public notice is given, the Public Utilities Commission The
commission shall hold any public hearings input meeting as close as practicable practical to the proposed
facility. The commission shall publish a notice of the time, place, and purpose of any public input meeting
three times in at least one newspaper of general circulation in any county totally or partially within the area
of the proposed facility.
Section 8. That § 49-41B-17 be amended to read:
49-41B-17. The parties to a proceeding under this chapter unless otherwise provided include:
(1) The Public Utilities Commission and applicant commission staff;
(2) The applicant;
(3) Each municipality, county and governmental agency in the area where the facility is proposed
to be sited, if timely application therefore is made as determined by the commission pursuant to
rule; and
(3)(4) Any person residing in the area where the facility is proposed to be sited,
any nonprofit
organization, formed in whole or in part to promote conservation or natural beauty, to protect
the environment, personal health or other biological values, to preserve historical sites, to
promote consumer interests, represent commercial and industrial groups, or to promote the
orderly development of the areas in which the facility is to be sited or any
directly interested
person, if timely application therefore is made as determined by the commission pursuant to rule.
A statement filed by a party to a permit proceeding shall become part of the record and shall be
available to the public. An application for party status in a proceeding under this chapter must
contain a detailed statement of the interests and reasons prompting the application.
Section 9. That § 49-41B-22 be amended to read:
49-41B-22. The applicant has the burden of proof to establish by a preponderance of the evidence that:
(1) The proposed facility will comply with all applicable laws and rules;
(2) The facility will not pose a threat of serious injury to the environment nor to the social and
economic condition of inhabitants or expected inhabitants in the siting area. An applicant for an
electric transmission line, a solar energy facility, or a wind energy facility that holds a
conditional use permit from the applicable local units of government is determined not to
threaten the social and economic condition of inhabitants or expected inhabitants in the siting
area;
(3) The facility will not substantially impair the health, safety or welfare of the inhabitants; and
(4) The facility will not unduly interfere with the orderly development of the region with due
consideration having been given the views of governing bodies of affected local units of
government.
An applicant for an electric transmission line, a solar energy facility, or a wind
energy facility that holds a conditional use permit from the applicable local units of government
is in compliance with this subdivision.
Section 10. That § 49-41B-25 be amended to read:
49-41B-25. Within six nine months of receipt of the initial application for a permit for the construction
of a wind energy facility or solar energy facility, the commission shall make complete findings, and render
a decision, regarding whether a permit should be granted, denied, or granted upon such terms, conditions,
or modifications of the construction, operation, or maintenance as the commission deems determines are
appropriate. In its the decision, the commission must shall find that the construction of the facility meets all
requirements of this chapter. Notice of the commission's decision shall be given to the applicant and to
parties to the hearing within ten days following the decision.
Section 11. That chapter 49-41B be amended by adding a NEW SECTION to read:
Upon request of the applicant, the commission may extend the deadlines for commission action
established in §§ 49-41B-24 and 49-41B-25.
Section 12. That chapter 49-41B be amended by adding a NEW SECTION to read:
The commission shall accept public comments on all applications filed under this chapter. Comments
may be collected and forwarded to the commission on behalf of the commentators. The commission shall
publish on the commission's website all comments that are accepted pursuant to this section, and may
publish substantially similar comments by publishing one of the comments and attributing the content of
the comment to a number of persons."
Moved by: Schoenbeck
Second by: Monroe
Action: Prevailed by voice vote.
MOTION: DO PASS SB 15 AS AMENDED
Moved by: Schoenbeck
Second by: Monroe
Action: Prevailed by roll call vote. (5-2-0-0)
Voting Yes: Curd, Monroe, Novstrup, Schoenbeck, Stalzer
Voting No: Kennedy, Nelson
MOTION: AMEND TITLE OF SB 15
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On page 1, line 1, of the printed bill, delete everything after "Act to" and insert "define solar energy
facilities and to establish certain provisions regarding solar energy permits.".
Moved by: Schoenbeck
Second by: Kennedy
Action: Prevailed by voice vote.
SB 94: revise provisions regarding rule-making authority to establish certain fuel standards.
Presented by: Senator Jordan Youngberg
Proponents: Tim Dougherty, South Dakota Ethanol Producer Association
Mitch Richter, South Dakota Farmers Union
Opponents: Dawna Leitzke, South Dakota Petroleum and Propane Marketers Association
Steve Willard, American Petroleum Institute
Brenda Forman, South Dakota Association of Cooperatives
MOTION: AMEND SB 94
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On the printed bill, delete everything after the enacting clause and insert:
" Section 1. That § 37-2-30 be amended to read:
37-2-30. Any gasoline kept, offered, or exposed for sale, or sold, at retail containing two percent or more
by volume of any oxygenate or combination of oxygenates shall be identified as to the specific type of
oxygenate or combination of oxygenates in the gasoline. The label may consist of any combination of colors
and the label may read ethanol, E10, or ethanol blend. If approved for sale as a gasoline, E15 shall be labeled
as E15 or with any label approved for E15 by the United States Environmental Protection Agency and the
Federal Trade Commission. This information shall be posted on the upper fifty percent of the dispenser front
panel in a position that is clear and conspicuous from the driver's position. The words shall be in a type at
least one-quarter inch in height and a width of type of at least one-sixteenth inch stroke.
Section 2. That § 37-2-34 be amended to read:
37-2-34. Terms used in §§ 37-2-35 to 37-2-38, inclusive, mean:
(1) "Franchise-related document," a franchise agreement, branded jobber contract, branded marketer
agreement, and any other contract or directive of a franchisor relating to terms or conditions of
the sale of fuel by a franchisee or customer;
(2) "Renewable fuel," biodiesel, biodiesel blend, ethyl alcohol, and ethanol blend, all as defined in
§ 10-47B-3,
or petroleum products, and any motor fuel made from a blend, in any ratio, of
gasoline and the product commonly or commercially known as E-85 or an ethanol blend and the
product commonly or commercially known as E-85.
Section 3. That § 37-2-34.1 be amended to read:
37-2-34.1. 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, or petroleum products, 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; and
(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. "
Moved by: Monroe
Second by: Schoenbeck
Action: Prevailed by voice vote.
MOTION: DO PASS SB 94 AS AMENDED
Moved by: Nelson
Second by: Schoenbeck
Action: Was not acted on.
MOTION: SUBSTITUTE MOTION DEFER SB 94 TO THE 41
ST LEGISLATIVE DAY
Moved by: Monroe
Second by: Novstrup
Action: Prevailed by roll call vote. (5-2-0-0)
Voting Yes: Curd, Kennedy, Monroe, Novstrup, Stalzer
Voting No: Nelson, Schoenbeck
HB 1021: revise certain provisions regarding bid bonds for public improvement contracts.
Presented by: Scott Bollinger, Commissioner, Bureau of Administration
MOTION: DO PASS HB 1021
Moved by: Kennedy
Second by: Nelson
Action: Prevailed by roll call vote. (5-0-2-0)
Voting Yes: Curd, Kennedy, Nelson, Schoenbeck, Stalzer
Excused: Monroe, Novstrup
MOTION: PLACE HB 1021 ON CONSENT CALENDAR
Moved by: Kennedy
Second by: Schoenbeck
Action: Prevailed by voice vote.
MOTION: ADJOURN
Moved by: Schoenbeck
Second by: Kennedy
Action: Prevailed by voice vote.
Mary Beth Fravel
____________________________
Committee Secretary
Jim Stalzer, Chair
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