South Dakota/EZ Policies

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EZ Policies for South Dakota

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Policy Place Policy Type Active Implementing Sector Summary
Air Pollution Control Program (South Dakota) South Dakota Siting and Permitting Yes State/Province South Dakota's Air Pollution Control Program is intended to maintain air quality standards through monitoring the ambient air quality throughout the state, permitting businesses and facilities that emit air pollution, and ensuring compliance with the state laws and rules. The Department of Environment and Natural Resources is authorized to enact regulations pertaining to air quality and air pollution sources.
Belle Fourche River Compact (South Dakota) South Dakota
Environmental Regulations Yes Local The Belle Fourche River Compact, agreed to by South Dakota and Wyoming, seeks to provide for the most efficient use of the waters of the Belle Fourche River Basin for multiple purposes, and to provide for an equitable division of such waters. Water use and development projects on lands inside the basin are subject to this compact.
Brownfields Revitalization and Economic Development Program (South Dakota) South Dakota Enterprise Zone Yes State/Province The South Dakota Brownfields Program aims to encourage cleanup and business development of contaminated sites. Currently, entities can apply for cleanup funds through the Ground Water Quality Program to assist with the redevelopment of brownfields. The 2004 session of the South Dakota State Legislature passed HB 1175 authorizing the establishment of a brownfields revitalization and economic development program including two funds - the brownfields cleanup revolving loan fund and the brownfields assessment and cleanup fund. The Department of Environment and Natural Resources has been directed to develop rules for the administration of these funds which will be funded through grants from the Environmental Protection Agency's Brownfields Program.
Climate Action Plan (South Dakota) South Dakota Climate Policies No State/Province The State of South Dakota currently does not have a climate action plan in place or in progress.
Community Development Block Grant/Economic Development Infrastructure Financing (United States) United States Grant Program
Loan Program
Yes Federal Community Development Block Grant/Economic Development Infrastructure Financing (CDBG/EDIF) provides public infrastructure financing to help communities grow jobs, enable new business startups and expansions for existing businesses. State programs help achieve the national objective of CDBG by funding projects in which at least 51 percent of the new jobs created are made available to low and moderate income individuals. The maximum amounts awarded under the program are $1 million for new businesses locating to the state and $500,000 for existing businesses expanding in the state.
Conservation Districts (South Dakota) South Dakota Siting and Permitting Yes Local A Conservation District can be established by petition of registered voters within the territory proposed for organization into the district, with the approval of the State Conservation Commission. Conservation Districts have the authority to develop annual and long range ten-year comprehensive plans for the conservation of all renewable natural resources and for the control and prevention of soil erosion, flood prevention, or the conservation and development, utilization, and disposal of soil and water within the district. A Conservation District may also cooperate with local governments to implement area-wide waste management systems. Conservation Districts are overseen by the SD Department of Agriculture's Division of Resource Conservation and Forestry and the State Conservation Commission. These two entities are responsible for aiding the programs implemented by local Conservation Districts through education, funding, and technical assistance. They also review and make recommendations regarding all state and local natural resource development plans, and play a key role in enacting coordinated resource conservation plans throughout the state.
Dams (South Dakota) South Dakota Siting and Permitting Yes State/Province Dam construction in South Dakota requires a Location Notice or a Water Right Permit. A Location Notice is a form that must be filed with the County Register of Deeds, and is the only paperwork required if (a) the proposed dam will impound 25 acre feet of water or less at the primary spillway elevation, and (b) is constructed on either a dry draw or non-navigable stream but not on a navigable stream. A dry draw, in South Dakota law, is defined as any ravine or watercourse with less than 0.4 cubic feet of average daily flow from May 1st to September 30th.

A Water Right Permit is required if (a) the proposed dam will impound more than 25 acre feet of water at the primary spillway elevation, (b) diversions will be made from the dam to serve some use other than reasonable domestic use, or (c) the proposed dam is being constructed on a navigable stream. If any of these conditions apply, an application for a Water Right Permit must be filed and approved prior to building the dam.

The Department of Environment and Natural Resources has enacted dam safety rules (SDAR 74:02:08). For the purpose of these regulations, "a structure is a dam if (a) the height to the dam crest is greater than or equal to 25 feet AND the storage at the dam crest (not at the spillway elevation) is greater than 15 acre feet OR (b) if the height to the dam crest is greater than 6 feet AND the storage at the dam crest (not at the spillway elevation) is greater than or equal to 50 acre feet.

The height of the dam is the difference in elevation between the natural bed of the watercourse or the lowest point on the toe of the dam, whichever is lower, and the crest elevation of the dam."
Electric, Gas, Water, Heating, Refrigeration, and Street Railways Facilities and Service (South Dakota) South Dakota Siting and Permitting Yes State/Province This legislation contains provisions for facilities and service related to electricity, natural gas, water, heating, refrigeration, and street railways. The chapter addresses the construction and extension of such facilities, as well as finances and fees.
Electric, Street Railway, and Gas Companies (South Dakota) South Dakota Line Extension Analysis Yes State/Province This legislation contains provisions pertaining to a corporation formed for the purpose of constructing, maintaining and operating a street railway or railways; generating, transmitting or distributing electricity to be sold to or used by the public for heat, light or power manufacturing; or producing, supplying, or transporting natural or artificial gas. The chapter addresses the powers and stocks of such corporations.
Energy Conversion and Transmission Facilities (South Dakota) South Dakota Siting and Permitting Yes State/Province This legislation applies to energy conversion facilities designed for or capable of generating 100 MW or more of electricity, wind energy facilities with a combined capacity of 100 MW, certain transmission facilities, and AC/DC conversion facilities. Such facilities may not be constructed or operated in the state without a prior permit from the Public Utilities Commission to ensure that to ensure that the energy requirements of the state are met and that the location, construction, and operation of such facilities will produce minimal adverse effects on the environment and the citizens of the state. Permit requirements and procedures are addressed in the legislation. Additional siting regulations are addressed in the SD Administrative Rules 20:10:22.
Energy Efficiency Revolving Loan Program South Dakota State Loan Program Yes State/Territory Note: The first round of applications was due April 12, 2010. A new round of loans will be available once the loan fund has been replenished.

South Dakota offers loans to nonprofits, schools, and government agencies located in South Dakota to pay for energy audits, energy efficiency improvements, and renewable energy installations. Loans must be repaid within 10 years, and carry a 0% interest rate. The loan program is available to all K-12 school districts, South Dakota Technical Schools, and community-based nonprofits.

Renewable energy projects must be built on site at government buildings. The capacity of such systems are limited as follows:

  • Photovoltaics: Must be "appropriately-sized" on an existing rooftop or parking shade structure, or a maximum of 60 kW if located on the ground within the boundaries of a government facility.
  • Wind turbines: Must be 20 kW or smaller.
  • Solar thermal: Must be 20 kW or smaller.
  • Solar thermal hot water: Must be appropriately sized for small buildings.
  • Ground source heat pump: Must be 5.5-ton capacity or smaller. Horizontal, vertical, ground, or closed-loop systems are eligible.
  • Combined heat and power: Must be appropriately sized for the building where it is located.
  • Biomass thermal - Must be 3 MMBTU/hour or smaller. Must use Best Available Control Technologies.
Applications are available on the program web site. Reporting, job creation, Davis Bacon Act, and all other Energy Efficiency Conservation Block Grant requirements apply.
Forestry Policies (South Dakota) South Dakota Environmental Regulations Yes State/Province South Dakota's forests are managed by the Department of Agriculture, Conservation and Forestry Division. Forests comprise around 1.7 million acres of land in the State. In the 2010 Forest Strategy document, underutilization of woody biomass is identified as a key threat to the industry. The document proposes incentives to public government building project to convert to biomass boilers:

In 2005 the State conducted a feasibility study of biomass fuel for heating schools, using locally sourced forestry residues:

The State's Forestry Division is also working to develop markets for the invasive Eastern Red Cedar, including inventory of forest resources in the surrounding area:
Gas and Electric Utilities Regulation (South Dakota) South Dakota Generation Disclosure Yes State/Province This legislation contains provisions for gas and electric utilities. As part of these regulations, electric utilities are required to file with the Public Utilities Commission a document regarding their minimum rates for the purchase of electricity generated from renewable resources and produced by a small renewable power facility that has a capacity of 100 kilowatts or less.
Hazardous Material Transportation Safety (South Dakota) South Dakota Environmental Regulations Yes State/Province This legislation authorizes the Division of Highway Safety, in the Department of Public Safety, to promulgate regulations pertaining to the safe transportation of hazardous materials by a motor vehicle. The rules may not apply to any radioactive materials being transported under a permit issued by the U.S. Nuclear Regulatory Commission.
Hazardous Waste Management Act (South Dakota) South Dakota Siting and Permitting Yes State/Province It is the public policy of the state of South Dakota to regulate the control and generation, transportation, treatment, storage, and disposal of hazardous wastes. The state operates a comprehensive regulatory program of hazardous waste management, and the South Dakota Department of Environment and Natural Resources and the Board of Minerals and Environment are authorized to promulgate regulations and rules relating to this program. Any person generating, transporting, treating, storing, or disposing of a hazardous waste is required to file a notification of hazardous waste activities. A permit issued by the Board of Minerals and Environment is required for the ownership, construction, operation, or modification of any hazardous waste treatment, storage, or disposal management facility. Specific regulations can be found in the SD Administrative Rules section 74:28, which contains sections pertaining to general requirements, monitoring and reporting, groundwater monitoring, surface impoundments, hazardous waste piles, landfills, treatment facilities, underground injections, and specific types of waste, as well as the treatment, storage, disposal, and transportation of hazardous waste.
Interconnection Standards (South Dakota) South Dakota Interconnection Yes State/Territory South Dakota’s interconnection standards for distributed generation, adopted by the state Public Utilities Commission (PUC) in May 2009, apply to customers of investor-owned utilities.* The rules provide for four levels of interconnection for systems up to 10 megawatts (MW) in capacity:
  • Tier 1 applies to inverter-based systems up to 10 kilowatts (kW) in capacity that use lab-tested equipment.
  • Tier 2 applies to systems up to 2 MW in capacity that use lab-tested equipment.
  • Tier 3 applies to systems up to 2 MW in capacity that do not export electricity.
  • Tier 4 applies to systems up to 10 MW in capacity that do not meet the requirements of Tier 1, Tier 2 or Tier 3.

Technical screens have been established for each level, and the IEEE 1547 technical standard is used for all interconnections. Reasonable timeframes for application and approval are set forth in the rules. System owners are generally responsible for all interconnection expenses, including interconnection equipment, utility system upgrades and adverse system impacts. Utilities are authorized to require the use of an external disconnect switch. Limited interconnection to area networks is permitted.

General liability insurance is required, with levels that vary by tier. (For Tier 1 systems, only “proof of adequate homeowners, general liability or commercial liability insurance sufficient to insure against all reasonably foreseeable direct liabilities given the size of the small generator facility” is necessary.) For all systems other than residential generators up to 10 kW in capacity, the customer must include the utility as an “additional insured.” The PUC staff may assist with dispute resolution when appropriate.

* The PUC’s rules do not apply to customers of electric cooperatives or municipal utilities.
Interstate Oil and Gas Conservation Compact (Multiple States) Alabama
New Mexico
New York
North Dakota
South Dakota
West Virginia
Environmental Regulations Yes State/Province The Interstate Oil and Gas Compact Commission assists member states efficiently maximize oil and natural gas resources through sound regulatory practices while protecting the nation's health, safety and the environment.

The Commission serves as the collective voice of member governors on oil and gas issues and advocates states' rights to govern petroleum resources within their borders.

The Commission formed the Geological CO2 Sequestration Task Force, which examines the technical, policy and regulatory issues related to safe and effective storage of CO2 in the subsurface (depleted oil and natural gas fields, saline formations and coal beds).

The Commission also funds research on hydraulic fracking, reusing water used in extracting oil and gas, and makes recommendations on national energy policies and statutes for individual states.

The Commission also has several associate states: North Carolina, South Carolina, Georgia, Tennessee, Missouri, Idaho, Oregon and Washington. In addition, it has international affiliations with the Canadian provinces of Alberta, British Columbia, New Brunswick, Newfoundland and Labrador, Nova Scotia, Saskatchewan, and the Yukon.
Large Commercial Wind Exemption and Alternative Taxes (South Dakota) South Dakota Property Tax Incentive Yes State/Territory In South Dakota, wind farms constructed after July 1, 2007, are subject to an alternative taxation calculation in lieu of all taxes on real and personal property levied by the state, counties, municipalities, school districts, and other political subdivisions. The definition of "wind farm" includes only facilities producing electricity for commercial sale that have a minimum capacity of 5 megawatts (MW). All property used or constructed to interconnect individual wind turbines within a wind farm into a common project, termed the "collector system," is eligible for the exemption and alternative taxation.

The alternative taxation method has two components. The first component is an annual tax equal to $3 per kilowatt (kW) of capacity of the wind farm, prorated according to when the wind farm begins operation during the first calendar year. The second component is a 2% annual tax on the gross receipts of the wind farm. The gross receipts are calculated as the number of kilowatt-hours (kWh) produced multiplied by a base electricity rate of $0.0475 per kWh in 2008, with the base rate increasing by 2.5% annually thereafter.

A partial rebate of the taxes paid under this formula is available for the construction of transmission lines in South Dakota that serve an eligible facility. The total maximum rebate is 50% of the combined cost of the transmission lines and wind farm collector system. The maximum rebate in one year is 90% of the gross receipts tax for the first 5 years and 50% of the gross receipts tax for the next 5 years. Up to 80% of the rebate may be issued in the form of a tax credit in lieu of full payment of the gross receipts tax.

The money generated by the alternative taxation method described above will be deposited into the state's wind energy tax fund. All of the receipts from the capacity tax and 20% of the gross receipts tax will be redistributed back to the county treasurer of the county (or counties) where the wind farm is located before May of each year. The funds must be distributed among the school districts, the county, and the organized townships.
Midwest Independent System Operator (Multiple States) Montana
North Dakota
South Dakota
Interconnection Yes Non-Profit Midwest Independent Transmission System Operator (MISO) is a Regional Transmission Organization, which administers wholesale electricity markets in all or parts of 11 U.S. states and the Canadian province of Manitoba. MISO administers electricity transmission grids across the Midwest and into Canada, and provides tools, transmission planning strategies, and integration for utilities in those markets. MISO is working with PJM Interconnection to develop complementing system operations and one robust, non-discriminatory wholesale electricity market to meet the needs of all customers and stakeholders in 23 states, the District of Columbia and the Canadian province of Manitoba. The market is being developed through an open stakeholder process and is being designed to serve residents regardless of whether they reside in states with bundled or unbundled retail rates.
Midwest Renewable Energy Tracking System (Multiple States) Illinois
North Dakota
South Dakota
Green Power Purchasing Yes Non-Profit The Midwest Renewable Energy Tracking System (M-RETS®) tracks renewable energy generation in participating States and Provinces and assists in verifying compliance with individual state/provincial or voluntary Renewable Portfolio Standards (RPS) and objectives. M-RETS® is a tool to keep track of all relevant information about renewable energy produced and delivered in the region. Currently, several States and Provinces participate in M-RETS®: Illinois, Iowa, Manitoba, Minnesota, Montana, North Dakota, Ohio, South Dakota, and Wisconsin have policies in place requiring or strongly encouraging utility development of renewable resources. M-RETS® uses verifiable production data for all participating generators and creates a Renewable Energy Credit (REC) in the form of a tradable digital certificate for each MWh.
Minerals and Mining Program (South Dakota) South Dakota Siting and Permitting Yes State/Province The Minerals and Mining Program has the authority to oversee mining activities in the state and issue regulations pertaining to the permitting and environmental impact mitigation of, and reclamation following, exploration, mining, and oil and gas production. Exploration and mining activities require permits, and mines require licenses for construction and operation. A separate permit exists for uranium exploration.
Minerals on School and Public Lands (South Dakota) South Dakota Siting and Permitting Yes State/Province The Commissioner of School and Public Lands is authorized to lease the mineral interests of such lands for development. Section 5-7 of the SD Codified Laws describes provisions for the leasing of these lands for mineral, oil, and gas extraction, and geothermal resource use.
Model Ordinance for Siting of Wind-Energy Systems (South Dakota) South Dakota Solar/Wind Permitting Standards Yes State/Territory In 2009, the South Dakota Public Utilities Commission (PUC) created a model ordinance for siting wind-energy systems. This nine-page model, developed in cooperation with multiple stakeholders, is designed for use by local governments. It includes separate provisions for small wind turbines (defined as those less than 75 feet high and used primarily for on-site electricity consumption) and for larger wind-energy systems.

With respect to small wind turbines, the model ordinance addresses setbacks, access, lighting, noise, appearance, code compliance, utility notification, abandonment, and the permitting process. For larger wind-energy systems, the model ordinance addresses mitigation measures, setbacks, electromagnetic interference, lighting, spacing, footprint minimalization, the placement of lines and cables, height, tower color and design, noise, permitting, decommissioning, and pre-construction filing.

The model ordinance specifies that all wind-energy systems must meet or exceed Federal Aviation Administration (FAA) regulations and South Dakota statutory requirements, as well as the requirements of any other state or federal agency authorized to regulate wind-energy facilities.

South Dakota has also established a law that applies to "small wind energy systems," defined as small systems of one or more wind turbines less than 75 feet in height. For these systems, each turbine tower must be set back at least 1.1 times the height of the tower from any surrounding property line. However, if the owner of the tower obtains a written agreement from an adjacent land owner allowing the placement of the tower closer to the property line, the tower may be placed closer to the property line shared with that adjacent land owner.
Oil and Gas (South Dakota) South Dakota Siting and Permitting Yes State/Province The Minerals and Mining Program oversees the regulation of oil and gas exploration, recovery, and reclamation activities in South Dakota. Permits are required for drilling of oil or gas wells, and the SD Codified Laws contain provisions pertaining to well testing, classification, metering, operation, and spacing. Additional regulations are contained in the SD Administrative Rules section 74:12.
Pipeline Safety (South Dakota) South Dakota Siting and Permitting Yes State/Province The South Dakota Pipeline Safety Program, administered by the Public Utilities Commission, is responsible for regulating hazardous gas intrastate pipelines. Relevant legislation and regulations contain information about pipeline inspections, obligations of pipeline operators, and applicable fees.
Pooled Bond Program (South Dakota) South Dakota Bond Program Yes State/Province The Pooled Bond Program offered by the Economic Development Finance Authority is designed for capital intensive projects, providing small businesses access to larger capital markets for tax-exempt or taxable bond issuances. Bond proceeds can be used to finance 80 percent of new construction, and 75 percent of new equipment costs, with no greater than 25 percent of the bond proceeds being used for ancillary activities such as office or inventory space.
Qualifying RPS State Export Markets (South Dakota) South Dakota Renewables Portfolio Standards and Goals Yes State/Province This entry lists the states with Renewable Portfolio Standard (RPS) policies that accept generation located in South Dakota as eligible sources towards their RPS targets or goals. For specific information with regard to eligible technologies or other restrictions which may vary by state, see the RPS policy entries for the individual states, shown below in the Authority listings. Typically energy must be delivered to an in-state utility or Load Serving Entity, and often only a portion of compliance targets may be met by out-of-state generation. In addition to geographic and energy delivery requirements, ownership, registry, and other requirements may apply, such as resource eligibility, generator vintage and capacity limitations, as well as limits on Renewable Energy Certificate (REC) vintage. The listing applies to RPS Main Tiers only, and excludes solar or distributed generation that may require interconnection only within the RPS state. This assessment is based on energy delivery requirements and reasonable transmission availability. Acceptance of unbundled RECs varies. There may be additional sales opportunities in RPS states outside the Eastern Interconnection. REC prices in markets with voluntary goals (North Dakota, South Dakota) may be lower.
Radiation and Uranium Resources Exposure Control (South Dakota) South Dakota Environmental Regulations Yes State/Province The public policy of South Dakota is to encourage the constructive uses of radiation, the proper development of uranium resources, and the control of any associated harmful effects. The disposal of radioactive wastes within the boundaries of the state requires prior approval from either the Governor or the South Dakota Legislature. The Department is authorized to adopt other rules and regulations pertaining to radiation control.
Renewable Energy Facility Sales and Use Tax Reimbursement (South Dakota) South Dakota Sales Tax Incentive Yes State/Territory South Dakota allows for a reinvestment payment up to the total amount of sales and use taxes paid for certain new or expanded renewable energy systems, equipment upgrades to existing systems, and manufacturing facilities that produce renewable energy equipment. S.B. 235 referred specifically to wind energy facilities but also allows for "power generation facilities" and facilities defined by the Governor's Office of Economic Development (GOED) as targeted industries. Based on that authority, the GOED chose to extend this incentive to other types of renewable energy.

To qualify, the project costs associated with a new or expanded facility must exceed $20 million, and the costs associated with equipment upgrades must exceed $2 million. Eligible project costs include the amount paid by the project owner in money, credits, property, or other consideration associated with a project. Also included are the costs associated with land, labor, and equipment, including towers, wind turbine generators, power collection systems, and electric interconnection systems.

Applicants must file an application with the GOED within 90 days of starting construction. In reviewing the application, the Board of Economic Development will consider the likelihood that the investment would have occurred without the reinvestment payment, and other criteria listed in the legislation and rules to be developed by the Board. The reinvestment payment may be transferred to other entities.
Renewable Energy System Exemption (South Dakota) South Dakota Property Tax Incentive Yes State/Territory In March 2010, South Dakota established a new property tax incentive that replaced two existing property tax incentives for renewable energy. Facilities that generate electricity using wind, solar, hydro, hydrogen generated by another eligible resource, or biomass resources are eligible for this incentive, as are facilities that generate other forms of energy using solar or geothermal resources.

For eligible facilities less than 5 megawatts (MW) in capacity, all real property used or constructed for the purpose of producing electricity is assessed in the same manner as other real property. However, the first $50,000 or 70% of the assessed value of eligible property, whichever is greater, is exempt from the real property tax. For geothermal systems that produce thermal energy, but not electricity, this exemption is limited to the first four continuous years for residential systems and to the first three continuous years for commercial systems.
Renewable, Recycled and Conserved Energy Objective (South Dakota) South Dakota Renewables Portfolio Standard Yes State/Territory In February 2008, South Dakota enacted legislation (HB 1123) establishing an objective that 10% of all retail electricity sales in the state be obtained from renewable and recycled energy by 2015. In March 2009, this policy was modified by allowing “conserved energy” to meet the objective. The objective applies to all retail providers of electricity in the state. However, as a voluntary objective (as opposed to a mandatory standard), there are no penalties or sanctions for retail providers that fail to meet the goal. Final rules related to RECs, energy conservation measurements, and reporting requirements (Docket RM11-001) were adopted in December 2011, effective January 2012.

For renewable and recycled energy, the objective is measured by qualifying megawatt-hours (MWh) delivered at retail or by certificates representing credits purchased and retired to offset non-qualifying retail sales. In the case of conserved energy, the objective will be measured by methods established by the South Dakota Public Utilities Commission (PUC).

Qualifying electricity includes that produced from wind, solar, hydroelectric, biomass* and geothermal resources, and electricity generated from currently unused waste heat from combustion or another process that does not use an additional combustion process and that is not the result of a system whose primary purpose is the generation of electricity. Hydrogen generated by any of the preceding resources is eligible. In addition to meeting the technology eligibility criteria, electricity must also meet the PUC’s rules for tracking, recording and verifying renewable energy credits (RECs). Both in-state and out-of-state facilities are eligible to generate qualifying RECs.

For the purpose of calculating the amount of electricity needed to meet the objective, retail providers may deduct from their baseline retail sales the proportion of electricity obtained from hydroelectric facilities with an in-service date before July 1, 2008. Municipal and cooperative utilities that receive wholesale electricity through a municipal power agency or generation and transmission cooperative may aggregate their resources to meet the objective. Before using any renewable, recycled or conserved energy after July 1, 2008 to meet the objective, retail providers or their generation suppliers must evaluate whether the use of new renewable and recycled energy is cost-effective and reasonable, considering "other electricity alternatives."

Beginning July 1, 2009, retail providers must report annually to the PUC on their attainment status, steps taken to meet the objective, and any challenges or barriers they have encountered. This report must include (1) information regarding qualifying electricity delivered and renewable and recycled energy certificates purchased and retired as a percentage of annual retail sales, (2) the amount of conserved energy as a percentage of annual retail sales, and (3) a brief narrative report that describes steps taken to meet the state renewable, recycled, and conserved energy objective over time and identifies any challenges or barriers encountered in meeting the objective. Reporting is required through 2017.

* Eligible biomass includes the following resources: agricultural crops, wastes, and residues; wood and wood wastes; animal and other degradable organic wastes; municipal solid waste; and landfill gas.
Revolving Economic Development and Initiative (South Dakota) South Dakota Loan Program Yes State/Province The Revolving Economic Development and Initiative (REDI) provides low interest loans to start-up firms, businesses that are expanding or relocating and local economic development corporations. The REDI Fund provides up to 45 percent of the total project's cost. Companies should secure matching funds and be able to provide a 10 percent minimum equity contribution before applying to the Board of Economic Development for a REDI Fund loan.
Right-of-Way for Carrier Facilities (South Dakota) South Dakota Siting and Permitting Yes State/Province This legislation establishes right-of-way for carrier pipelines, as well as restrictions on the width of lands used for pipeline facilities. This legislation also applies to electricity transmission lines across school and public lands.
SBA 504 Program (South Dakota) South Dakota Loan Program Yes State/Province The SBA 504 Program offers long-tem, fixed rate financing (10-20 years) at reasonable rates comparable to long-term U.S. Treasury bonds. Typically the 504 loan has a 50-40-10 structure where fifty percent (50%) of the project is financed by a regulated lender that receives a first mortgage position on all project collateral. The 40% is provided by the South Dakota Development Corporation and the remaining 10% is borrower equity. To qualify, the net worth of an eligible business may not exceed $7.5 million and its net profit after taxes must not have exceeded an average of $2.5 million during the previous two years.
Solid Waste Management (South Dakota) South Dakota Siting and Permitting Yes State/Province This statute contains provisions for solid waste management systems, groundwater monitoring, liability for pollution, permitting, inspections, and provisions for waste reduction and recycling programs.
Solid Waste Management Program (South Dakota) South Dakota Grant Program Yes State/Province South Dakota's Solid Waste Management Program offers loans and grants for solid waste disposal, recycling, and waste tire projects. Funds are available for private or public projects, and applications for proposed projects must address:
   1) How the project will advance the state's solid waste management hierarchy;
           Volume reduction at the source;
           Recycling and reuse;
           Use for energy production; and
           Disposal in landfill or combustion for volume reduction
   2) Potential cost savings, public health, or environmental benefits in solid waste management, waste tire management, or waste tire processing for energy production.
A grant applicant must provide a minimum 40 percent share of the total proposal cost. The board may reduce this requirement to 20 percent if the applicant demonstrates undue hardship or other mitigating factors. Matching funds may include public or private direct contributions, loans from private or public sources including state and federal agencies, and federal grants. In-kind contributions may also be considered as matching funds.
South Dakota-Minnesota Boundary Waters Commission (Minnesota) Minnesota Environmental Regulations Yes Local This section establishes an interstate commission to set standards for water levels and quality, and to coordinate among local governments to maintain and preserve water resources on the Minnesota/South Dakota boundary.
South Dakota-Minnesota Boundary Waters Commission (South Dakota) South Dakota
Environmental Regulations Yes State/Province This legislation establishes an interstate commission to set standards for water levels and quality, and to coordinate among local governments to maintain and preserve water resources on the Minnesota/South Dakota boundary.
Southwestern Low-Level Radioactive Waste Disposal Compact (South Dakota) South Dakota Siting and Permitting Yes State/Province This legislation authorizes the state's entrance into the Southwestern Low-Level Radioactive Waste Disposal Compact, which provides for the cooperative management of low-level radioactive waste. The Compact is administered by a commission, which can regulate and impose fees on in-state radioactive waste generators. The states of Arizona, California, North Dakota, and South Dakota are party to this compact.
Water Development Districts (South Dakota) South Dakota Siting and Permitting Yes Local The South Dakota Conservancy District is a governmental agency administered by the Board of Water and Natural Resources, but its duties are predominantly carried out by local Water Development Districts, which are subdivisions of the Conservancy District. Local Water Development Districts are established for the purpose of planning and coordinating water resources development activity and providing financial and other assistance to water resources projects or development. Districts may oversee any local water projects and may sell, grant, convey, assign, lease, or otherwise transfer perfected water rights or permits to appropriate water for energy industry use to energy industry users. The Conservancy District and local districts may also provide for the generation and sale of hydroelectric power from projects which may include provisions for irrigation and municipal, rural, or industrial water supplies.
Water Pollution Control (South Dakota) South Dakota Environmental Regulations Yes State/Province It is the public policy of the state of South Dakota to conserve the waters of the state and to protect, maintain, and improve their quality for water supplies, for the propagation of wildlife, fish, and aquatic life, and for domestic, agricultural, industrial, recreational, and other legitimate uses; to prohibit waste discharges into state waters without prior treatment or other corrective action; to provide for the prevention, abatement, and control of new and existing water pollution; and to cooperate with other agencies of the state, agencies of other states, and the federal government in carrying out these objectives. The Department of Environment and Natural Resources and the Water Management Board are authorized to establish water quality standards and enact regulations regarding water pollution. The SD Codified Laws, section 34A-2, contain information on water levels, construction and operation permits for activities expected to discharge waste into water, permit procedures, effluent limitations, underground and above ground storage tanks, and sewage and water treatment facilities. Section 34A-12 of the SDCL address liability issues for the unpermitted release of regulated substances into waters of the state.
Water Rights and Appropriation (South Dakota) South Dakota Siting and Permitting Yes State/Province All uses of water in South Dakota, with the exception of domestic water uses, require a Water Right Permit. The Board of Water and Natural Resources has the authority to regulate and control the development, conservation, and allocation of the right to use the waters of the state according to the principles of beneficial use and priority of appropriation. Chapters 46-2A and 46-5 of the SD Codified Laws contain administrative procedures and requirements for water appropriation. Restrictions are placed on the obstruction of navigable watercourses, water use projects which may impair downstream water uses, and water diversions. Chapter 46-8 describes the circumstances in which the right of eminent domain may be used for application or conveyance of water for beneficial use.
Wild, Scenic, and Recreational Rivers (South Dakota) South Dakota Environmental Regulations Yes State/Province The South Dakota Department of Environment and Natural Resources is responsible for maintaining a state water plan, intended to implement state policies for water management. A portion of the plan is reserved for rivers designated as wild, scenic, or recreational by the Board of Water and Natural Resources. No development may occur that is detrimental to the natural and scenic beauty of the designated river. The Missouri River has a national designation as a recreational river ( It is unclear whether any other rivers are currently designated as wild, scenic, or recreational in South Dakota.
Wind Easements (South Dakota) South Dakota Solar/Wind Access Policy Yes State/Territory Any South Dakota property owner may grant a wind easement with the same effect as a conveyance of an interest in real property. Easements must be established in writing, and must be filed, recorded and indexed in the office of the register of deeds of the county in which they are granted. The maximum term of an easement is 50 years. Any payments associated with an easement must be made on an annual basis to the owner of the real property. An easement must include the following information:
  • A description of the real property subject to the easement and a description of the real property benefiting from the wind easement;
  • A description of the real property subject to the easement and of the real property benefiting from the easement;
  • A description of the vertical and horizontal angles, expressed in degrees, and distances from the site of the wind power system in which an obstruction to the wind is prohibited or limited;
  • Any terms or conditions under which the easement is granted or may be terminated;
  • Any provisions for compensation of the owner of the real property benefiting from the easement in the event of interference with the enjoyment of the easement, or compensation of the owner of the real property subject to the easement for maintaining the easement; and
  • Any other provisions necessary or desirable to execute the instrument.
Wind and Transmission Construction Tax Refund (South Dakota) South Dakota Sales Tax Incentive No State/Territory Note: This refund is only available for cost incurred between January 1, 2010 and December 31, 2012, except for performance retainage amounts. No new installations are eligible for the incentive after January 1, 2013.

In March 2010, South Dakota established a tax refund for new or expanded wind-energy facilities, new or upgraded electric transmission lines and associated facilities, and business facilities that manufacture or distribute wind or transmission components. This refund, which applies to sales or use taxes and contractors' excise taxes on project costs, is available to facilities with a construction date on or after January 1, 2010.

In general, the amount of the tax refund is a percentage of the taxes paid, as follows:

  • For project costs less than $10 million, there is no refund.
  • For project costs of $10 million or more but less than $40 million, the refund is 45% of the taxes paid.
  • For project costs of $40 million or more, there is a refund of 55% of the taxes paid.
Refunds will not be awarded for any project cost incurred and paid on or after December 31, 2012, except for performance retainage amounts (not to exceed 10%) related to the project.
Workforce Development Training Program (South Dakota) South Dakota Workforce development Yes State/Province The Workforce Development Training Program funds industry-education partnerships through which customized training programs and short-term, job-specific training is delivered. The Workforce Development Program supports up to one-half of the total eligible training cost via a matching grant.

Construction Tax Rebate for Renewable Electrcity Generation Projects

Large Renewable Electricity Projects: New and expanded renewable electricity generation facilities (generate electricity from sun, wind, geothermal, or biomass) that produce more than 10 megawatts of electricity are eligible for a reduced contractor’s excise tax rate of 1% instead of 2%. Payment of the excise tax may be delayed into four equal annual payments.

Municipal or Community-sized Renewable Electricity Projects: Contractor’s Excise Tax Rebate - New and expanded renewable electricity generation facilities (generate electricity from sun, wind, geothermal, or biomass) that have a nameplate capacity to produce 10 megawatts of electricity or less with costs greater than $500,000 are eligible for a 100% rebate of the projects contractor’s excise tax.