Provide that a company transporting hydrogen, by pipeline, is not a common carrier.
Impact
This legislation is significant as it alters the legal definition and obligations of companies involved in hydrogen transport. By exempting hydrogen transportation from the common carrier classification, the bill potentially encourages investment and development in hydrogen infrastructure within South Dakota. Proponents argue that it provides the necessary regulatory environment to foster growth in hydrogen as an energy source, which aligns with broader goals of enhancing energy efficiency and transitioning to cleaner fuel alternatives.
Summary
House Bill 1258 aims to amend the current laws regarding pipeline transportation, specifically by stating that companies transporting hydrogen via pipelines will not be classified as common carriers. This reclassification means that these companies would be exempt from the regulatory requirements applicable to common carriers, allowing them greater flexibility in their operations without the burden of certain state regulations typically mandated for transportation services.
Contention
However, the bill may face contention regarding the balance of regulation and oversight. Critics of the bill might voice concerns that exempting hydrogen transport from common carrier status could lead to a lack of accountability and oversight in pipeline operations, particularly concerning safety and environmental impacts. The provision also specifies that nothing in this section permits the condemnation of private land for the construction of hydrogen pipelines, raising questions about property rights and the means by which these companies may expand their operations without local governmental input.