Dear Mr. President and Members of the Senate,
I respectfully return to you Senate Bill 14, with my VETO.
Senate Bill 14 is an Act to define solar energy facilities and to establish certain provisions regarding
solar energy permits.
This bill creates unacceptable ambiguity and confusion over the Public Utilities Commission's
authority. Even though the Legislature has expressly prohibited the Commission from mandating
the specific location of an energy facility, as we conducted a detailed legal review of the enrolled bill,
it became apparent poor drafting in this bill gives the Commission that authority for solar energy
projects. Previous legislative changes in 2005 and 2006 added definitions of “wind energy facility”
and “AC/DC conversion facility” to SDCL 49-41B-36, avoiding this ambiguity. The commission
should not be in the business of picking locations for solar projects, but the enrolled version of this
bill permits it. I do not believe this was the Legislature's intent.
I also question the need for additional PUC regulation of solar generating stations. These facilities
are already covered under the more generic definition of an “energy conversion facility,” in the Code.
I am very concerned by a number of bills this session that increase state regulation of renewable
energy projects without appearing to have a tailored connection to protecting public interest. The
renewable energy industry, just as any other, should be subject to only as much regulation as is
necessary to promote the public interest and preserve our environment while making South Dakota
an attractive place to do business.
Senate Bill 14, as well as several other Commission-authored bills regulating the renewable energy
industry, were introduced without meaningful consultation with industry or other opportunity for
comment ahead of time. I believe strongly government's exercise of regulatory power must be
transparent and subject to meaningful debate. Our focus should be on finding common ground
between regulators and industry, making for stronger outcomes and preserving our state's reputation
as a premier place to do business. There is no reason why the Commission couldn't work with
industry and other stakeholders to find a compromise solution to this issue and others.
As a state, we have been blessed with significant wind and solar resources. We should continue to
benefit greatly from billions of dollars in completed and planned investments. The renewable energy
industry has already invested heavily in South Dakota, and continued investment depends on
common sense, transparent, and customized regulation. I do not believe Senate Bill 14 or the
process that led to its introduction meets these basic standards.
For these reasons, I oppose this bill and ask that you sustain my veto.
Kristi Noem
Governor