The Republican governor issued the executive order on Friday. It comes in the wake of Republican Sen. Jessica Castleberry accepting more than $603,000 in COVID-19 relief payments from state government to her childcare business.

The governor notified state Attorney General Marty Jackley about Castleberry. He has been working to recover the money. Noem had appointed Castleberry on December 31, 2019, to a vacant Senate seat. After the scandal surfaced, Castleberry said she wouldn't seek re-election to a third term.

The South Dakota Supreme Court in 2020 issued a special advisory opinion requested by Noem. She specifically wanted to know whether the South Dakota Constitution or any state law prohibits a current legislator from being eligible to receive funds from a coronavirus relief fund program.

The state's high court in its answer pointed to Article III, section 12 of the South Dakota Constitution that specifically says legislators can't "during the term for which he shall have been elected, or within one year thereafter, be interested, directly or indirectly, in any contract with the state or any county thereof, authorized by any law passed during the term for which he shall have been elected."

The four participating justices unanimously agreed. "This Court strictly interprets the language of South Dakota Article III, (section) 12. Its prohibitions are broad in scope and extend to any contract between a legislator and the State, including the General Appropriations Bill," the justices stated.

Noem's new executive order also suggests that other executive offices outside her control, as well as the two other branches of state government, namely the Legislature and the judiciary, and county governments too, should review their processes and procedures "to ensure any contract is executed in accordance with Article 3, Section 12 of the South Dakota Constitution."

Last week, Republican Sen. Lee Schoenbeck suggested to the Legislature's Executive Board that they develop some sort of guidance for current legislators and future candidates. Schoenbeck indicated an expectation that news stories about other legislators' contracts would soon surface.

A panel of state lawmakers will decide next month whether the change that the state Transportation Commission made July 27 can take effect.

The state Department of Transportation is also considering whether to extend the 65 mph zone even farther east, possibly all the way to South Dakota's border with Minnesota.

The speed limit on I-90 is 70 mph in Minnesota. Most of I-90 across South Dakota is 80 mph, outside the Sioux Falls and Rapid City areas, throughout the year.

The 65 mph limit also is in effect for 11 days each August on the stretch of I-90 in the Sturgis through Rapid City area during the the Sturgis motorcycle rally.

The Legislature's Rules Review Committee is scheduled to consider the proposed change for the Veterans Parkway exit on September 12. The lawmakers also will look at a proposal to extend the 25-mph zone on US 385 in Hot Springs.

Karla Engle, an attorney for the state Department of Transportation, explained to the Transportation Commission that the goal of the slower speeds is to improve safety.

The proposed changes were sent to the mayors of Brandon, Sioux Falls and Hot Springs and to the sheriffs of Minnehaha and Fall River counties. They supported the changes, according to Engle, and in the case of Hot Springs, city officials sought the change.

The department received no written comments from the public and no one showed up to testify either way at the July 27 public hearing.

Engle told the state commission there have been 60 crashes in the stretch of I-90 between the Veterans Parkway and I-229 exits since the Veterans Parkway exit opened. She said there's also a vertical curve on the eastbound lanes of I-90 just before the Veterans Parkway exit. "We want to slow them down so they have more time to make that decision," she said.

Commission chair Jafar Karim of Rapid City asked about extending the 65-mph zone farther east.

“There may be additional changes that come to you on that issue,” Engle said.

Commissioner Mike Vehle of Mitchell was a state senator when the Legislature raised the speed limit to 80 mph for most of I-90 and most of I-29 in 2015. He said motorists traveling west from Minnesota at 70 mph reach the South Dakota border and speed up to 80 mph for a few miles only to have to slow again to 65 mph as they approach Sioux Falls.

“I think we need to be careful there. And I don’t know what that number would be. Sioux Falls is going to grow, more than likely,” Vehle said.

Transportation Secretary Joel Jundt said that stretch is on some of his staff's minds. “We’ve already got it on our to-do list,” Jundt said.

The proposed change on US 385 would extend the 25-mph zone about three-tenths of a mile in Hot Springs to the intersection with US 18. That short stretch currently is 35 mph. The area is under construction, with pedestrian crossings being added.

"We're expecting increased bicycle and pedestrian traffic on this highway," Engle said.

Click on the name for meeting details. Please note that any could be postponed because of weather or other conditions.

Monday, August 14

Public Safety Department, 1 p.m. CT, public hearing on proposed rules regarding campfires and slash-pile burn permits in the Black Hills National Forest fire protection district and various other proposed rule changes regarding boilers and motorcycle education courses, 118 W. Capitol Avenue, Pierre.

Tuesday, August 15

Public Utilities Commission, 9:30 a.m. CT, room 413, Capitol.

Housing Development Authority, 11 a.m. CT, teleconference and 3060 E. Elizabeth Street, Pierre.

Nursing Board, HPAP Committee, noon CT, teleconference and 4109 S. Carnegie Circle, Sioux Falls.

Finance Board, 2 p.m. CT, teleconference and Bear Butte Conference Room, second floor, Capitol.

Wednesday, August 16

Legislature, Study Committee on County Funding and Services, 8:30 a.m. CT, room 414, Capitol.

Barber Examiners Board, 10 a.m. CT, teleconference.

Railroad Board, 11 a.m. CT, teleconference.

Thursday, August 17

Minerals and Environment Board, 10 a.m. CT, teleconference.

Brand Board, 9:30 a.m. MT / 10:30 a.m. CT, teleconference and 1444 Fountain Plaza Drive, Rapid City.

Workers' Compensation Council, 1 p.m. CT, teleconference and 123 W. Missouri Avenue, Pierre.

Friday, August 18

Commission on Equal Access to Our Courts, 11 a.m. CT, teleconference and room 132, Capitol.

Monday, August 21

Legislature, Medical Marijuana Oversight Committee, 9 a.m. CT, room 362, Capitol.

Teacher Compensation Review Board, 10 a.m. CT, 800 Governors Drive, Pierre.

KELOLAND Capitol Bureau Reporter Bob Mercer in Pierre assembled this information Friday, August 11. State law requires state government boards and commissions to post public-meeting notices 72 hours in advance, not counting Saturdays, Sundays and official state holidays. The Legislature isn’t subject to that public-notice law.

*Please check boardsandcommissions.sd.gov and sdlegislature.gov for any meetings of state boards and commissions and legislative meetings that were posted after this weekly listing was assembled. Broadcasts of some meetings are available at sd.net. Many meetings are available by teleconference. Check agendas and sd.net for audio availability.

But state Department of Labor and Regulation officials expect the situation to change in 2024, through a combination of somewhat bigger benefit payments to the jobless and a sweeping tax reduction that will affect thousands of employers.

Department officials presented their forecast Thursday to the South Dakota Reemployment Council. The fund finished 2022 with a record balance of $195.6 million. The latest official estimates show the fund finishing calendar 2023 with an even larger balance of $217 million, but then holding steady at $216.1 million come the end of 2024.

The biggest reason for that adjustment is that a new tax schedule for employers goes into effect for 2024. It will put a lot of employers into the zero category for tax rate, said Pauline Heier, the department's reemployment assistance director.

“That's such great news,” responded one of the council's members, former state Labor Secretary Pam Roberts of Pierre.

Her successor, Secretary Marcia Hultman, told the council that the effect would be "significant."

Last year, the department paid $21.9 million in benefits, the lowest in at least a decade, and took in $46 million from employers and interest earnings.

The projections for this year are $24.7 million will be paid in benefits while another $46 million comes in. Looking ahead to 2024, the forecast calls for $26.5 million in benefits and $25.6 million from employer contributions and interest.

The Legislature in January approved the new tax schedule for 2024 and Governor Kristi Noem signed the change into law on February 1.

"You're probably going to see about a $20 million tax cut," Hultman said.

She acknowledged the balance likely would still be "considerably more" than what the department had previously estimated, but she said there are thousands more employers now in the system. Employer numbers grew by about 4,500 from 2010 to 2020; they've grown by roughly the same number from 2020 to 2023. (See chart)

“This tells us a couple of stories about our economy,” Hultman said.

Almost half of the 30,040 employers who were in South Dakota's reemployment system as of June 30 of this year will be at the zero rate when the new schedule takes effect for 2024, according to Hultman. "That's another big perspective to share with council members," she said.

On July 3, the maximum benefit amount rose to $514 per week, from $487. “That is tied to the annual weekly wage in the state,” Heier said. “We’re just consistent with what wages have done,” Hultman said.

Employers covered by South Dakota reemployment system have been on the rise

Justice Patricia DeVaney wrote the unanimous opinion that the state's high court publicly released Thursday.

Bol Kwai had appealed his convictions for hit-and-run and aggravated assault. They stemmed from an altercation on February 25, 2020, in Sioux Falls between Kwai and another driver, Brian Heesch. A jury found that Kwai beat Heesch with a metal pipe and left Heesch on the ground, then got back in his vehicle and drove backward over Heesch.

Heesch spent nearly a month in the hospital, where he underwent eight surgeries for his many injuries. Since the incident, Heesch has needed to use a wheelchair and suffers from memory and speech issues.

Justice DeVaney summarized the thrust of Kwai's appeal regarding the hit-and-run conviction: "With respect to the latter, he asserted that the crime encompasses only accidental acts, and by presenting evidence that the driver of the vehicle involved in this incident intentionally ran over Brian (Heesch), the State failed to make a prima facie case that an accident occurred."

The question that the Supreme Court decided in the case was whether hit-and-run applies to a deliberate act. Justice DeVaney said the Legislature didn't define the word 'accident' in the state law that classifies a hit-and-run resulting in death or injury as a Class 6 felony. However, she pointed to various definitions of accident from legal dictionaries that included phrases such as an event "that could not be reasonably anticipated; any unwanted or harmful event occurring suddenly."

Kwai's attorney had cited a Hawaii case to support their argument. Justice DeVaney however cited decisions from a variety of other states that found the opposite.

She wrote: "With these purposes in mind, an interpretation of the word 'accident' to exclude intentional conduct on the part of the driver fails to comport with the penal nature of SDCL 32-34-5. In fact, there is nothing in the language of SDCL 32-34-5 or chapter 32-34 as a whole that suggests the Legislature intended the nature of the triggering vehicular incident—whether occurring by chance, negligence, criminal conduct, or intentional conduct—to be a relevant consideration for a conviction. On the contrary, as multiple other courts have similarly concluded, the conduct our hit and run statute seeks to punish is the failure to stop and comply with SDCL 32-34-3."

The Supreme Court affirmed Circuit Judge Camela Theeler's rejection of the argument that Kwai's lawyer made at his 2021 jury trial after the prosecution had presented its case.

The website, Our Dakota Dreams, rolled out earlier this summer as a joint product from the state Board of Regents and the state Department of Education. Its purpose is to help influence prospective students to choose to attend one of South Dakota's six public universities and four public technical colleges.

Governor Kristi Noem, who appoints the regents, challenged each of them in a May 25 letter to address various issues, including stagnant enrollment at the state's university campuses. The regents began a deep dive into the enrollment question at their planning retreat earlier this month.

The statement currently on the site's Exploring College page reads, "The Foundation for Research on Equal Opportunity says South Dakota has the best state university system measured by return on investment for students."

That is a reference to a December 12, 2022, analysis by FREOPP writer Preston Cooper that ranked the 50 states' public-university systems by price and outcome. He found that South Dakota placed first in return on investment, followed by Minnesota and Iowa.

Shuree Mortenson, director of communications in the regents' central office, defended the statement. She told KELOLAND News that the foundation's study was "featured on multiple higher education platforms."

"The research was added to the Our Dakota Dreams website because it was a comprehensive study featuring South Dakota's public universities and technical colleges. The study aligned well with the ODD website, highlighting all our state's public post-secondary education options," she said.

The study captured lifetime degree income compared to the cost of tuition and overall living expenses, according to Mortenson.

"South Dakota students encounter some of the lowest total costs for public universities in the region, which is reflected in the nation's lowest student debt totals and a loan default rate of only one percent for those who attended a BOR university," Mortenson said.

She continued, "The Foundation for Research on Equal Opportunity, described as a non-partisan, public policy think tank focused on expanding economic opportunity for those with incomes or wealth below the U.S. median, echoed what we believe at the South Dakota Board of Regents -- our public universities are a smart investment and offer a great return on investment."

Here's how the foundation described itself on its most-recent IRS 990 filing: "The Foundation for Research on Equal Opportunity conducts original research on expanding economic opportunity to those who least have it. FREOPP is committed to deploying the nation's leading scholars and the tools of individual liberty, free enterprise, technological innovation, and pluralism to serve this mission. All research conducted by FREOPP considers the impact of public policies and proposed reforms on those with incomes or wealth below the U.S. median."

Avik Roy founded FREOPP in 2016, with co-founder Ames Brown, and continues as its president. Before starting the foundation, Roy served in the presidential campaigns of Republicans Mitt Romney, Rick Perry and Marco Rubio.

Vivek Ramaswamy, who's currently a candidate for the 2024 Republican nomination for U.S. president, has also served on the foundation's board. Another board member, Lanhee Chen, was chief policy advisor to Romney's 2012 presidential campaign, advised Rubio's 2016 presidential campaign, has been a policy advisor to the National Republican Senatorial Committee, and last year ran as a Republican candidate for statewide office in California.

Nonetheless, FREOPP's website says it is "(a) non-profit, non-partisan think tank improving the lives of Americans on the bottom half of the economic ladder using freedom, innovation, & pluralism."

KELOLAND News asked Mortenson how the study came to the attention of the regents' central office.

"We monitor various higher education news sites and have media alerts set for all our campuses and the Board of Regents. This study was noted during a Our Dakota Dreams coalition meeting, whose members include representatives from the Board of Regents central office, Board of Regents universities, the Board of Technical Education colleges, the Department of Education, and other stakeholders," she said. "I believe we all came across the study through online media alerts and distribution from within the coalition or our respective campuses."

PIERRE, S.D. (KELO) -- Governor Kristi Noem's administration is spending big in trying to attract more workers to South Dakota. The Governor's Office of Economic Development has paid nearly $6.5 million so far to two private businesses, from Tennessee and Ohio, to spread the word.

"The Freedom Works Here marketing campaign has been by far the most successful workforce recruitment campaign in South Dakota’s history," GOED marketing director Missy Sinner told KELOLAND News.

The national advertising effort launched in June. GOED Commissioner Chris Schilken gave an update Wednesday to the state Board of Economic Development. He said some 4,500 people have already filled out a form on the Freedom Works Here website expressing interest and approximately 1,000 people are working through the final steps. “The purpose," Schilken told the board, "was to encourage people to look at career opportunities in South Dakota."

According to the state Department of Labor and Regulation, the seasonally adjusted June numbers showed South Dakota's labor force at 481,900 with 473,000 employed and 8,900 unemployed. The jobless rate of 1.8%, is tied for the lowest in the nation.

So where's the money going?

GOED's contract with Designsensory Inc. commenced on June 24, 2021, and will end on June 23, 2024. The contract amount was capped at $450,000 for the first year. According to the contract, "Subsequent year amounts will be determined based on available budgets." On June 16, 2022, the total amount for the first and second years of the contract with the Knoxville, Tennessee-based company was amended to $1.9 million.

State records show payments to Designsensory totaled $1,899,732.92 through June 9, 2023. Six days later, on June 15, 2023, Schilken signed a second amendment to the contract that increased the total amount to $2.9 million for the first, second and now third years.

GOED's contract with Strategic Media Placement / Go West Media became effective on April 11, 2023, and will end on June 30, 2024. The contract amount was capped at $5 million. State records show payments through July 27, 2023, to the Delaware, Ohio-based company had totaled $4,448,617.55.

There's also GOED's contract with Lawrence & Schiller that commenced on August 16, 2021, and will end on August 15, 2024. The total amount of the contract was capped at $450,000. According to the contract, "Subsequent year amounts will be determined based on available budgets." The Lawrence & Schiller contract however hasn't been amended.

GOED has paid Lawrence & Schiller $159,081.49 so far on that contract. The Sioux Falls-based company has held a variety of state contracts for many years. State records show payments for all contracts with Lawrence & Schiller totaled $15,982,112.49 last year and $19,871,720.35 the year before.

Designsensory created the Freedom Works Here tagline, according to GOED's communications director Sarah Ebeling. "We quickly began utilizing the tagline as another way to promote South Dakota," she said. "The current ad campaign for Freedom Works Here was awarded through an RFP to Go West Media, powered by TSGco, allowing us to continue to use the Freedom Works Here tagline on a national level."

A small but targeted piece of the campaign, for example, involves stock car racing. Team Live Fast Motorsports reached out to the GOED commissioner about a possible NASCAR sponsorship, according to Ebeling. She said the estimated $130,000 cost was a 75% discount, thanks to a previous sponsor who was unable to fulfill their commitment.

The package included two NASCAR races, having a promotional version of the race car for nine days at the Sturgis motorcycle rally that's currently underway, and having the car at the governor's July 27 press conference. The "South Dakota Is Hiring" message is across each side, between the car's number and the rear tire.

The No. 78 Chevrolet, driven by BJ McCleod, has started 15 races so far in 2023. His highest finishes were 16th place at Dual 2 in Daytona and 18th at Talladega. He currently ranks 34th in the NASCAR Cup Series standings.

GOED's marketing director Sinner called Freedom Works Here "a game-changer for South Dakota's workforce." She told KELOLAND News that, as of Friday, South Dakota still had 23,416 jobs to fill.

"GOED always utilizes competitive bidding for our marketing contracts, and we did so for the Freedom Works Here campaign. We received several bids and selected Go West Media to take the lead on the campaign," Sinner said. "Their bid stood head and shoulders above the rest because of the sophistication of their targeted marketing, the quality of their creative product, and their reputation for fantastic customer service."

She said Designsensory created the Freedom Works Here brand and slogan; created and maintains the FreedomWorksHere.com website, including web analytics; delivered some targeted digital marketing at key events; and provides photo and video assets for many marketing efforts.

"Lawrence & Schiller has assisted GOED with the We Save You a Spot community co-op marketing campaign, which partners with individual South Dakota communities to build off of the Freedom Works Here effort. The communities dictate when, where, and how those ads go out," Sinner said. "We are grateful for each of these excellent marketing organizations’ continued partnerships."

The South Dakota Board of Economic Development decided Wednesday that High Plains Processing Inc. qualifies for the state reinvestment payment program.

The company will be refunded $6,606,962 of the state sales and use tax charged on the project, not to exceed 75% of the tax owed.

The board also increased the reinvestment payment percentage for Wilson Trailer Company of Lennox to 50% of the state sales and use tax. The board on June 14 had granted a $104,000 refund, up to 20% of the tax owed.

PIERRE, S.D. (KELO) -- The tone of the Navigator permit hearing turned testy in its final hours Tuesday afternoon.

Brian Jorde, the Omaha lawyer representing South Dakota landowners who don't want the proposed carbon-dioxide pipeline crossing their properties, didn't like the substance of questions that Navigator's attorney, James Moore of Sioux Falls, was asking about the conduct of Jorde and his clients.

Specifically, Moore wanted to know about the status of the negotiations -- or in this instance, non-negotiations. Monica Howard, the project's vice president for environmental and regulatory matters, said Navigator this year had put in place what she called "a stand-down order" to no longer attempt to conduct land surveys on their properties, or to even contact them.

Navigator had offered to pay them for survey access, according to Howard, but, after several attempts, company officials concluded that no one was interested. "Every landowner to my knowledge has received at least two offers," she said.

Jorde repeatedly objected throughout this line of questioning, but he was overruled each time. When it was his turn to cross-examine her, Jorde asked Howard whether the purpose of Moore's questions to her was to "fact check" his clients.

Moore's objection to that question was sustained, so Howard didn't answer.

That brought a protest from Jorde.

"How can you ask those questions and I can't ask back?" Jorde asked.

He then moved on to ask Howard whether she or anyone else from the company had approached him with a new offer during the hearing the past three weeks. She didn't directly say. "What more information do they (the landowners) need to share to get their point across that they don't want this pipeline on their land?" he asked.

Then he asked Howard whether she would agree that the purpose of the pipeline was to help three ethanol plants at the expense of landowners. Howard said there are additional facilities in South Dakota that are interested, although she didn't identify them.

She further said 14 of the 15 ethanol plants in South Dakota have committed to shipping CO2 out of state through the pipelines that are proposed by Navigator and Summit Carbon Solutions.

Jorde asked about uses for CO2 such as "soda pop" and fire extinguishers that he described as "speculative." Answered Howard, “All industries start somewhere and there’s no denying this is somewhat the beginning of a change in that industry."

Jorde turned to whether pipeline construction would leave lasting effects on crop production. He asked how many years it will take crops to return to 100 percent production. She said, “Well under ten years.” He said linear projects still scar the earth 10 and 20 years later. She said construction techniques have improved.

“Sometimes it wasn’t done right in decades prior. Sometimes it was,” she said.

So Navigator will just do it better? Jorde asked. Howard didn't back down. Based on Navigator’s plans, she said, “That’s exactly what we’ll do.”

Later Jorde asked whether it was "engagement" to have landowners drive "four or five hours" to attend the hearing for a project they don't want.

"Yes, I think engagement requires conversation between two parties and -- there's a lot of misinformation out there as well," she said. "Not being able to speak with those landowners furthers that distance between us and them."

The commission must reach a decision on the permit before the end of September. The commission has set aside August 24-25 to consider the question of whether it should supersede pipeline zoning ordinances recently passed in Minnehaha County and Moody County. Howard said she plans to testify. Navigator officials say their project can't happen if the ordinances stay in place.

Howard was in a similar role as environmental manager for the Dakota Access crude-oil pipeline project and testified during the commission's 2015 hearing on its South Dakota permit. Kristen Edwards, a PUC staff attorney, asked Tuesday what could have been done better on Dakota Access. Replied Howard, "That inspection program may have been built out better than what occurred."

Navigator would be South Dakota's first CO2 pipeline. Commission chair Kristie Fiegen asked Howard whether a judge in an eminent-domain proceeding should have access to a plume study. Howard, who has never before been involved in a CO2 pipeline project, but has had roles in arranging for other potentially explosive pipelines, said she had never provided a plume study to a judge and wasn’t aware that anyone had.

Responded Fiegen, “We have a pipeline right now that doesn’t compare apples to apples. It’s different, it’s new in our area, and that’s why we’re going to continue to ask questions."

Commissioner Chris Nelson asked whether Navigator could provide a map so that the public could understand the potential danger from a pipeline rupture. Howard said she couldn’t do that.

That, Nelson replied, may mean the company and the commission will find they are at “an impasse.” 

Nonetheless, Howard told Jorde that public responders could use the ALOHA model to replicate conditions in real-time at the location if a rupture occurs. She said ALOHA is used when responding to many emergency situations. "It's common practice," she said.

Laura McGlothlin told the South Dakota Public Utilities Commission that Navigator has been in contact with various commercial users of CO2 and has started planning for an off-loading site.

Navigator also has a memorandum of understanding to supply CO2 to an electro-fuels company, Infinium, according to McGlothlin, and is considering adding a site where walk-up shippers could load CO2 into the system.

Tuesday marked the tenth day that the state commission has taken testimony in the matter. The three commissioners are deciding whether to grant a permit to Navigator for the portion of the line that the company wants to build in South Dakota, where three ethanol plants have contracted to be part of the project.

The commission originally granted confidential status to Navigator's contracts with Valero for its ethanol plant at Aurora and POET's plants at Chancellor and at Hudson. As she testified about various terms of those contracts, such as their 12-year duration and options to renew, McGlothlin said it was “fine to remove the confidentiality.”

“It will be admitted, and public,” said the commission's hearing officer, Adam de Hueck. Navigator also has now posted for public consideration its draft emergency-response plan, which previously had received confidential treatment, too. Still under wraps, however, is the company's plume-dispersion analysis of what damage could occur if the pipeline ruptured.

”CO2 is a commodity that is bought and sold everyday,” McGlothlin said about the current market. She said CO2 is used for carbonation, dry ice, food preparation and fire extinguishers. She acknowledged that food and beverage companies would require the CO2 to be purer than what Navigator would receive from the ethanol plants, and therefore additional equipment would have to be installed.

Navigator's pipeline would collect CO2 from various ethanol producers and other agricultural facilities along its proposed route through South Dakota, Iowa, Nebraska, Minnesota and Illinois. The CO2 would be shipped to a site in central Illinois.

A second CO2 line is also seeking a permit to build and operate in South Dakota. The state commission will consider the application from Summit Carbon Solutions at a hearing set to start September 11. The Summit project would ship CO2 to a site in North Dakota.

One of the Summit project's contract attorneys, Brett Koenecke of Pierre, was in the hearing room Tuesday for a portion of the Navigator testimony.

A key to whether Navigator goes forward in South Dakota is whether the state commission decides to pre-empt local ordinances regarding pipelines in Minnehaha County and Moody County. Navigator officials want the state commission to supersede the county ordinances because the line otherwise couldn't get through. The state commission has scheduled a hearing for August 24-25 to hear arguments.

State law gives the state commission in most instances one year from the date of a company's application to decide whether to grant a permit. Navigator applied September 27, 2022.

McGlothlin wouldn't agree with a statement from Brian Jorde, one of the attorneys representing landowners opposed to the project, that the pipeline depended on the federal tax credits. McGlothlin said the ethanol companies have the rights to collect the tax credit and Navigator charges them a fee to run CO2 through the line.

“Customers have come to us with significant interest in the project,” McGlothlin said. In response to another Jorde question, she acknowledged she didn't know whether POET and Valero independently had the infrastructure to get ethanol to California, where new climate-change laws are creating demand for fuels with lower carbon-intensity ratings.

Commission chair Kristie Fiegen asked how the pipeline would be affected by California's requirement that new vehicles sold there be zero-emission by 2035. “If 100 percent of electric vehicles happen, I think that (ethanol) fuel will find its way to other markets,” McGlothlin said.