Lawmakers upset after Kristi Noem awards millions to project they refused to pay for

While legislators were passing a law in March requiring more information from Republican Gov. Kristi Noem about a fund she controls, Noem was awarding $13.5 million from the fund to a project legislators had declined to financially support.

Some legislators didn’t find out about the spending until this week, when South Dakota Searchlight learned about it and told them.

The money will go toward the construction of a $20 million, state-owned shooting range in a rural area north of Rapid City. The Department of Game, Fish and Parks is also counting on private fundraising to help the project.

‘Governor’s Cup’ rodeo among recipients of millions from public fund controlled by Noem

Game, Fish and Parks spokesman Nick Harrington said in a statement that the shooting range will “attract new visitors to the state and increase opportunities for firearms-related industries to expand in South Dakota.”

The $13.5 million awarded by Noem is from the Future Fund, which is supported by a tax on employers and spent at the discretion of the governor.

Legislators have denied requests to fund the shooting range with money from the state budget. State Sen. Reynold Nesiba, D-Sioux Falls, said Noem’s decision “demonstrates the need for greater transparency and legislative oversight of the Future Fund.” He called the shooting range a “pet project” for Noem that “excites few outside her political base.”

“The Legislature has rejected this gun range project multiple times,” Nesiba said. “She is using the Future Fund to circumvent the will of the Legislature.”

Bipartisan reaction

The frustration with the governor cuts across the political aisle.

“We already killed the shooting range legislation, because they never presented a business plan. Still haven’t,” said Sen. Ryan Maher, R-Isabel. “How many people are going to run this thing? Clean the bathrooms? Pick up trash? Shell casings? They still have not answered any of that.”

Sen. Ryan Maher, R-Isabel, speaks on the state Senate floor on Jan. 18, 2024. (Makenzie Huber/South Dakota Searchlight)

Maher sponsored a bill that was adopted during last winter’s legislative session requiring the Governor’s Office to report twice per year to legislators about Future Fund spending. Noem signed that bill on March 14 — the same month, according to her Governor’s Office of Economic Development, that she authorized $13.5 million from the Future Fund for the shooting range.

Lawmakers contacted this week by South Dakota Searchlight said they have not yet received a Future Fund report as required by the new law.

Maher’s bill arose after Noem faced criticism for other uses of the fund, including at least $5 million she awarded for a workforce recruitment campaign starring herself and $2.5 million for the Governor’s Cup rodeo in Sioux Falls.

The fund is supported by a tax, described by the state as an “investment fee,” that’s collected from employers in conjunction with payroll taxes for unemployment benefits. In 2023, nearly 30,000 South Dakota employers paid $23 million into the Future Fund.

The late Gov. George Mickelson convinced lawmakers to create the Future Fund in 1987. State law says the fund must be used “for purposes related to research and economic development for the state.” The fund is held by the Governor’s Office of Economic Development, but unlike other funds managed by the office, the Future Fund is not overseen by a board of citizen appointees.

A controversial range

The shooting range is being built on about 400 acres, roughly 15 miles north of Rapid City and 25 miles southeast of Sturgis. It’s expected to open in the fall of 2025 and will include areas for long-range shooting, clay target shooting and tactical training. State officials say it will host national shooting competitions.

The Department of Game, Fish and Parks initially said in 2021 that the project would cost about $9.9 million. That grew to $12 million in 2022. Then the state paused the project when calls for bids attracted only one. The project price tag had ballooned to about $20 million by the time the state broke ground in December 2023.

The department said it had received $5.1 million in pledges and donations toward the project as of April.

Some lawmakers opposing previous attempts to fund the range argued state funds should be prioritized for more pressing infrastructure needs. They also said the project should fund itself with private donations, and scale down as needed.

“Why would the state want to compete with privately owned, taxpaying enterprises?” then-Rep. Dean Wink, R-Howes, now a state senator, asked his fellow lawmakers during a House floor debate in 2022. He argued shooting sports opportunities already exist in the area, but programs to address some other public needs do not.

Some landowners near the project, including Matt Kammerer, say it’s unnecessary and will burden local governments with extra infrastructure and public safety costs.

“There are shooting ranges all around here already,” he said. “Nobody needs this.”

Shooting sports enthusiast and Second Amendment advocate King Cavalier, of Sturgis, said providing a public place to exercise gun rights is important to ensuring U.S. democracy continues. Shooting events will result in a sales tax boom, he added, making the complex a smart investment for the state.

South Dakota Searchlight is part of States Newsroom, a nonprofit news network supported by grants and a coalition of donors as a 501c(3) public charity. South Dakota Searchlight maintains editorial independence. Contact Editor Seth Tupper for questions: info@southdakotasearchlight.com. Follow South Dakota Searchlight on Facebook and X.

Kristi Noem rejects more than $70 million in federal funds

Governor Kristi Noem’s administration recently turned down more than $70 million of federal funds from energy efficiency and environmental programs, according to her top budget official.

The Home Energy Rebates program would have provided the state with $69 million to give South Dakotans rebates for energy-efficient home retrofits and high-efficiency electric appliances. The deadline for indicating intent to participate was last week. Earlier this year, the state passed up $1.8 million to help administer and set up the program.

Kelly Moore is a consumer advocate from Piedmont who planned to use the rebate to offset the bill for a new heat pump.

“South Dakotans will see no direct return on their federal taxes,” Moore said. “Other states will benefit from our contributions.”

South Dakotans grow frustrated waiting for state to apply for $69 million in energy rebate funding

During a July 30 legislative budget committee meeting, Noem’s Bureau of Finance and Management Commissioner Jim Terwilliger explained the decisions, citing administrative burdens, limited staff capacity and policy disagreements as factors for turning down the funding.

“These are federal taxpayer dollars. We know the situation of the federal budget right now. I don’t think I need to go down that path,” Terwilliger said. “And so, with good faith, we did look into this. We just don’t believe that it’s the right thing for South Dakota.”

The funding comes from the 2022 federal Inflation Reduction Act, which the Biden administration described as the most significant action ever taken by Congress to address climate change. The legislation includes provisions to raise revenue through increased taxes on corporations and high-income individuals.

Some lawmakers on the legislative budget committee disagreed with the decision to pass up the money.

“We’re missing out on some funds that could help our people,” said Sen. Larry Zikmund, R-Sioux Falls.

Other programs declined

Terwilliger said the administration also turned down money from the federal Fenceline Monitoring program. He said it would have provided $406,000 to monitor air quality around industrial areas.

And the state passed up its potential share of $1 billion allocated for states to adopt the latest optional building energy codes.

Over the course of 30 years, according to the U.S. Department of Energy, that program could have reduced South Dakota’s carbon dioxide emissions by about 42 million metric tons and resulted in estimated consumer cost savings of $9,027 per South Dakota home.

The federal government would have provided funding to cover administrative costs. There was no requirement for the state to contribute.

“This is something that we did not apply for,” Terwilliger said. “I think the application period may have come and gone for that already.”

Additionally, Terwilliger mentioned how the administration passed up on the Climate Pollution Reduction grants program. The program allocated a total of $5 billion for states to reduce greenhouse gas emissions. Sioux Falls also passed up the funding. Rapid City applied and received a $1 million planning grant but was not awarded an implementation grant.

Policy differences

Terwilliger said the one-time dollars associated with the programs would create long-term funding commitments for the state after the federal dollars run out. The state’s Energy Management Office currently has one full-time employee.

“Secondly, what’s the underlying policy that is kind of being encouraged, or pushed through with some of these programs?” Terwilliger said. “And I think, generally, we just kind of disagree with some of those policies as well.”

Some Republican state lawmakers on the budget committee support the state’s decision.

“It’s not manna from heaven,” said Rep. Chris Karr, R-Sioux Falls. “These are taxpayer dollars that somebody paid in.”

Some lawmakers expressed concerns that declining the federal dollars would negatively impact South Dakota residents, particularly those struggling with rising energy costs and the impacts of recent severe weather events. They said if staffing is the issue, the state should use some of the funds for contractors to help run the programs. Terwilliger told lawmakers about 20% of the funds could be used to run the programs.

One of the lawmakers making those criticisms was Rep. Linda Duba, D-Sioux Falls.

“I think it’s extremely unfortunate that we made the decision for the people of South Dakota not to apply for this opportunity,” Duba said, referring to the $69 million in energy efficiency rebates.

Not all Inflation Reduction Act funding opportunities were dismissed. Terwilliger said the state has participated in the Forest Legacy Program, securing $1.5 million in funding to purchase a 250-acre parcel in collaboration with the Game, Fish and Parks Department. The land preserves some forested areas along the Big Sioux River near Newton Hills State Park.

Plus, Sioux Falls successfully applied for $3 million in funding under the Urban and Community Forestry Program, with another $600,000 allocated to other communities across the state, according to Terwilliger. The $3 million will help mitigate damage caused by emerald ash borer in an area spanning 25 square miles.

Noem has often said ‘no’

There are several prior examples of the Noem administration declining federal funding.

Duba was a vocal critic of the administration passing up $7.5 million to feed low-income kids while school is out for the summer.

Noem is one of six governors who did not apply for a federal grant program to support solar energy projects around the nation. She also passed on a share of $1 billion in nationwide cybersecurity grants for county and city governments.

In 2020, the administration rejected extra unemployment benefits, provided by then-President Trump during the pandemic. The measure provided an additional $300 in unemployment benefits per week, but required states to kick in another $100.

South Dakota Searchlight is part of States Newsroom, a nonprofit news network supported by grants and a coalition of donors as a 501c(3) public charity. South Dakota Searchlight maintains editorial independence. Contact Editor Seth Tupper for questions: info@southdakotasearchlight.com. Follow South Dakota Searchlight on Facebook and X.

Republican Congressman tells new citizens that America should thank them

SIOUX FALLS – U.S. Rep. Dusty Johnson, R-South Dakota, told a gathering of grateful new American citizens Friday that Americans should be grateful to them.

“I’m not just here to say congratulations and welcome, I’m also here to say thank you,” he said.

During Johnson’s short speech at a naturalization ceremony for about 200 new citizens in the Sioux Falls Washington Pavilion, he compared the impact of immigration to the impact of salt.

Johnson said one of his sons loves to salt his green beans.

“He says, ‘Oh, dad, salt is magic. It turns quality green beans into something even better.'”

Salt is essential for life, Johnson added, and has been prized by civilizations throughout history. It’s been the inspiration for trade routes, considered sacred by some religions, and caused wars. “People have viewed it as valuable, powerful and sacred,” he said.

Johnson told the new citizens, “Your hard work, your ingenuity, your decency is taking a quality American dish, and you are making it even better.”

The new Americans came from nations including China, Russia, Ukraine, Ethiopia, Sudan, Afghanistan, Iraq, Mexico, Canada and others.

Johnson’s words of gratitude were meaningful for Belinda Ponce, who was born in Honduras and came to the United States in 2009 as a 12-year-old.

“It means a lot because it shows that we are being seen,” she said. “They are grateful for immigrants and the work that we have done.”

Ponce said the privilege of citizenship she’s most looking forward to is voting in November.

“It means I get to have a voice in the United States,” she said. “Participate in something big.”

South Dakota Searchlight is part of States Newsroom, a nonprofit news network supported by grants and a coalition of donors as a 501c(3) public charity. South Dakota Searchlight maintains editorial independence. Contact Editor Seth Tupper for questions: info@southdakotasearchlight.com. Follow South Dakota Searchlight on Facebook and X.

‘We have nothing’: SD flood victims say government failures continue after botched warning

McCOOK LAKE — Neither Morgan Speichinger nor many of her neighbors came away worried on June 23 after listening to Gov. Kristi Noem talk about flooding in the southeastern corner of South Dakota.

“Noem’s press conference made it sound like it wasn’t going to be bad for us,” Speichinger said. “There was no talk of a massive flood coming our way.”

McCook Lake catastrophe shatters complacency around old flood plans

Four hours later, Speichinger and her neighbors were fleeing for their lives, while Noem was at a political fundraiser in Tennessee, having flown out after her press conference in North Sioux City.

The floodwaters that slammed into the McCook Lake neighborhood destroyed and badly damaged dozens of homes, temporarily knocked out electricity, gas and water service, and carved deep gouges in the land.

Speichinger and some other McCook Lake residents say the effects of the botched warning have been exacerbated by a disorganized recovery effort and by Gov. Kristi Noem’s decision not to dispatch the National Guard.

“We have no idea what’s coming next for us,” said flood victim Nathaniel Cutsinger.

A press conference and a flight to Memphis

Authorities began expecting flooding as historic amounts of rain fell for three days, June 20-22, in southeast South Dakota, southwest Minnesota and northwest Iowa.

In the southeast tip of South Dakota, McCook Lake, North Sioux City and Dakota Dunes are situated alongside the Big Sioux and Missouri rivers, making the communities especially vulnerable.


At 11 a.m. on Sunday, June 23, the North Sioux City Council held an emergency meeting and activated a 48-year-old flood mitigation plan. The city got the state’s blessing to close a section of Interstate 29 and build a temporary levee across it. The temporary levee plugged a gap in permanent levies that protect parts of North Sioux City and Dakota Dunes.

Noem led a press conference later that day in North Sioux City, beginning at 2:30 p.m., that focused on the construction of the temporary levee and a voluntary evacuation order that Dakota Dunes issued for its residents.

“Knowing that’s where we’re most vulnerable,” Noem said at the time.

None of the local, state or federal authorities at the press conference clearly explained that the temporary levee was intended to direct Big Sioux River floodwaters toward McCook Lake, where the overflow would hopefully drain toward the Missouri River while causing minimal damage.

When somebody in the audience asked what McCook Lake residents should do, Noem said they should protect their personal property, “because we do anticipate that they will take in water.”

“That’s what we’re preparing for,” she said. “If we don’t, then that’s wonderful that they don’t have an impact, but they could see water flowing into McCook Lake.”

Noem shared projections during the press conference indicating the Big Sioux River in North Sioux City would peak at 42 feet by 1 p.m. the following day.

As the press conference concluded around 3 p.m., the crest projection had been updated to 42.3 feet by 7 p.m. that evening, and the projection continued to change as the situation worsened.

Sometime after the press conference, Noem flew to Memphis, Tennessee, where she was the featured speaker that evening at the Shelby County Republican Party’s Lincoln Day Gala fundraiser. The event started at 6 p.m. Eastern, 5 p.m. Central.

Phone alerts fail to reach stunned residents

Based on what Speichinger heard from the afternoon press conference, which she’d streamed on her phone, she was comfortable allowing her kids to play at a neighbor’s pool while authorities and contractors worked on the temporary interstate levee and after they completed it around 3:30 p.m.

“There were people still out in their boats on the lake as the flood was coming,” Speichinger said. “Nobody had any idea. I didn’t even know there was this diversion plan.”

She had moved into her home on Penrose Drive near the lake in 2019. Some other lake residents also lacked knowledge of the plan to divert water to McCook Lake or were caught off guard by the severity of the flooding, including a few police officers in the neighborhood, according to residents.

Speichinger said a sudden gush of water flowed through her backyard around 7 p.m.

“People were running and screaming, ‘Get out! Get out!’” she said.

Union County Emergency Management Director Jason Westcott said first responders, including two emergency rescue boat teams, conservation officers, law enforcement and firefighters were all on standby in case “the worst-case scenario happened.”

“And that’s what happened,” he said.

Those first responders immediately began alerting residents to evacuate and performing rescues, Westcott said. He targeted an alert to the smartphones of residents along the north shore of McCook Lake at 8:21 p.m.

“We were relying on other people to know about the issues going on,” he said. “A lot of stuff was happening very fast.”

Speichinger and some others said they didn’t receive the phone alert.

“I’ve only heard of a few people who got that alert,” Speichinger said. “It wouldn’t have mattered anyway. The flood was here.”

Wescott said the alert system has weaknesses. He said the area’s poor cell service may have contributed to the problem, and some people may have disabled the location tracking on their phone.

“There are a million different ways you won’t get one,” he said of the alerts.

At 8:35 p.m., Westcott posted an urgent message to his office’s Facebook page.

“𝐄𝐕𝐀𝐂𝐔𝐀𝐓𝐈𝐎𝐍 𝐍𝐎𝐓𝐈𝐂𝐄 𝐍𝐎𝐑𝐓𝐇 𝐒𝐈𝐎𝐔𝐗 𝐂𝐈𝐓𝐘 / 𝐌𝐂𝐎𝐎𝐊 𝐋𝐀𝐊𝐄 𝐀𝐑𝐄𝐀,” the message said in bold and all-caps. “𝐑𝐄𝐒𝐈𝐃𝐄𝐍𝐓’𝐒 𝐎𝐍 𝐍𝐎𝐑𝐓𝐇 𝐒𝐇𝐎𝐑𝐄 𝐅𝐑𝐎𝐌 𝐄𝐗𝐈𝐓 𝟒 𝐓𝐎 𝐃𝐀𝐊𝐎𝐓𝐀 𝐕𝐀𝐋𝐋𝐄𝐘 𝐇𝐈𝐆𝐇 𝐒𝐂𝐇𝐎𝐎𝐋 – 𝐏𝐋𝐄𝐀𝐒𝐄 𝐄𝐕𝐀𝐂𝐔𝐀𝐓𝐄!”

Speichinger saw that message, although it has since been deleted from the page. Her webcam-enabled Ring Doorbell shows the water was about 3 feet high outside her home at 8:35 p.m.

Nathaniel Cutsinger was finishing up his shift at Dollar General in North Sioux City as water rushed into his home across the street from Speichinger’s.

“There was absolutely no notice of anything that was going on,” Cutsinger said.

When he got home, he waded into floodwaters to rescue his pets and an elderly neighbor.

“He was waiting at the window for someone to come,” Cutsinger said of the neighbor.

They got into Cutsinger’s Tahoe and drove down a flooded street until the vehicle stalled. Then they walked a few blocks in knee-high water to safety.

Emergency responders spent the night performing rescues, wading through knee-deep water, knocking on doors and shouting to alert residents, while others used boats to reach stranded families.

The Big Sioux River crested at 10:30 p.m., reaching a new record in North Sioux City of 44.98 feet after a 13.48-foot rise since 9:15 a.m.

Aftermath: ‘We have nothing’

An estimated 30 homes at McCook Lake were destroyed and at least 100 damaged, though Wescott said those numbers are preliminary.

Some homes were ripped from their foundations, while others collapsed or suffered severe erosion around their perimeters. Washed-out roads were littered with debris, trees were ripped from the ground, and there were dozen-feet-deep gashes in the land. Electricity, gas and sewer services were disrupted.

“We have nothing,” Cutsinger said several days after the flood. “We’re not rich people. People on this street have put everything into these houses.”

Problems continued after the floodwaters receded.

“The government response immediately after was terrible,” Cutsinger said.

At press conferences during the days after the flood, reporters asked Noem why she didn’t deploy the National Guard to help flood victims. She said no local officials requested it, and she also cited the expense of activating soldiers.

But during a July 1 public meeting, North Sioux City Mayor Patricia Teel said she did request the National Guard’s assistance.

“I asked for them,” Teel said. “I was told at first they were gone and ‘we are sending extra law enforcement’ instead.”

The Highway Patrol provided additional security to keep people out of dangerous areas immediately after the flood. Some residents were frustrated that they weren’t able to see or evaluate their homes, and authorities made them schedule appointments to be escorted into the neighborhood.

Mayor Teel did not respond to messages from South Dakota Searchlight. Westcott said Teel requested the Guard’s help with security, but Westcott agreed with Noem that law enforcement was better suited to keep the area protected. He said a specific request for help with debris cleanup has to be made to get that help – something some residents say would have been useful.

North Sioux City hired a contractor, Blue Cell, to “help organize communications and operations,” according to the Governor’s Office. Additional contractors have been hired to help repair roads, electric distribution lines, and water and natural gas pipelines.

The contractors’ work has been limited to fixing public infrastructure, according to multiple lake residents. That has left residents to clean up their homes themselves, hire help, or wait for volunteers.

On July 3, volunteer Mary Lee Lazarowicz was spending the day removing soaked drywall from a basement. She said an apparent lack of organization, beyond the already stretched-thin local lake association, was leading to inefficient aid distribution.

“I have to think that if we had some kind of centralized command center for volunteers, I just wonder if things would be running a lot more smoothly,” she said.

Confronting the ‘harsh truth’

Ten years ago, the same levee plan was utilized in response to flooding. Then-Gov. Dennis Daugaard warned McCook Lake residents at a press conference that the plan meant the homes surrounding the lake would be in danger of flooding. He sent National Guard troops to Union County to assist in preparation and relief.

Gov. Noem’s spokesperson, Ian Fury, has repeatedly defended Noem’s actions in relation to the flood and the aftermath. Fury said in a written statement June 27 that all local emergencies are handled through the county emergency manager, with support and resources provided by the state when requested.

“Since the first forecast of significant rainfall coming to our area, Governor Noem and the South Dakota Office of Emergency Management started communicating with impacted counties to help them prepare,” Fury wrote.

He shared a document showing a series of projections from June 21 to 24. The modeling indicates how high and when the Big Sioux River was expected to crest. With each update, the water was expected to come sooner, and many updates included a higher crest.

One of the most dramatic changes to the projections occurred immediately after Noem’s press conference, Fury highlighted.

“Officials can only use the best, available data in decision making and warning processes,” the document reads. “Due to limited data, modeling showed that this was not going to be a historic flood event that it ended up being.”

But the claim that authorities didn’t foresee a “historic flood event” is contradicted by the data in Fury’s own document, which includes a projection from Friday night, June 21 — two days before the McCook Lake flood — already predicting that the Big Sioux River in Sioux City was headed for a record-high crest.

McCook Lake residents say their homes were sacrificed, and they want a new flood plan

Westcott initially rejected claims that residents were not adequately warned, but later acknowledged to South Dakota Searchlight that residents were not given enough warning to prepare. He said authorities expected the flood mitigation plan to work as it had in the past, when McCook Lake was spared catastrophic damage.

“We did not know we had a 1,000-year flood coming at us. That was not part of the plan,” Westcott said. “That’s the hardcore truth of it.”

Westcott and Fury each said if the flood mitigation plan had not been utilized and the temporary levee had not been built, the flood would have overwhelmed North Sioux City and Dakota Dunes. They point to modeling showing just that.

Westcott said flood response work began immediately after residents were deemed safe. Those efforts included restoring water, electricity and gas services, working with the Red Cross to help flood victims, organizing volunteer and donation efforts, and bringing in emergency supplies.

During the July 1 public meeting, Mayor Teel read a statement to residents. She said her team was short-staffed and was not equipped to handle such a severe emergency; therefore, it relied on the state for help.

“We trusted the team that was provided by the state. By Thursday,” she said, referring to the fourth day after the flood, “we knew that the help provided wasn’t really helping us.”

Teel said she requested more help and was advised to hire a contractor, which she did.

Residents at the meeting also shared frustrations.

“I think we deserve to know why none of you thought it was necessary to tell the residents this flood was coming,” one said.

“What I’m disgusted with is the lack of response after it happened,” said another, who added that bottled water didn’t arrive until June 26.

“We had to run for our actual lives,” another resident said. “My kids are having PTSD.”

Some residents, including Cutsinger and Speichinger, do not have flood insurance. The Federal Emergency Management Agency’s flood maps do not require insurance in the neighborhood, and Cutsinger said the optional insurance would cost his family $5,000 a year.

Noem is seeking flood recovery assistance from FEMA. Westcott hopes that effort will bring financial help to McCook Lake residents, but he doesn’t know when it will happen, and he doesn’t expect it to fully replace their losses.

“The program is only designed to get people on their feet again,” he said. “That’s the harsh truth.”

South Dakota Searchlight is part of States Newsroom, a nonprofit news network supported by grants and a coalition of donors as a 501c(3) public charity. South Dakota Searchlight maintains editorial independence. Contact Editor Seth Tupper for questions: info@southdakotasearchlight.com. Follow South Dakota Searchlight on Facebook and X.

Company claims it self-financed Kristi Noem documentary

A company that produced a new documentary about South Dakota Republican Gov. Kristi Noem did not receive any financial support from Noem or state government, according to the company and Noem’s office.

“No taxpayer money was used,” said Ian Fury, Noem’s spokesman. “To my knowledge, it was funded entirely by the entity that produced the documentary.”

That entity is Transition Studios, of Ohio.

“We self-finance all of our projects, including this one,” said Shawn Rech, director of the film. “We approached the governor over a year ago wanting to do this project. She agreed to cooperate.”

Noem in political freefall as book inaccuracies emerge following backlash against animal killings

The company said in a news release that the documentary, “America’s Governor: The Kristi Noem Story,” would be published on X (formerly Twitter) at 5 p.m. Central, 4 p.m. Mountain on Thursday.

“The documentary explores the challenges she has faced along the way and the unwavering spirit that has propelled her forward,” said the news release. “It serves as an inspiration to men and women everywhere, showcasing the boundless possibilities that can be achieved through hard work and steadfast belief in one’s principles.”

The news release said the documentary includes stories from Noem’s books, “Not My First Rodeo” and “No Going Back.”

The most recent book, “No Going Back,” infamously included a story about Noem killing her 14-month-old dog and a goat. The book also included a claim, later retracted, that Noem met with North Korean dictator Kim Jong Un.

Since the book’s release, Noem’s name has fallen off lists of potential running mates for presumptive Republican presidential nominee Donald Trump.

South Dakota Searchlight is part of States Newsroom, a nonprofit news network supported by grants and a coalition of donors as a 501c(3) public charity. South Dakota Searchlight maintains editorial independence. Contact Editor Seth Tupper for questions: info@southdakotasearchlight.com. Follow South Dakota Searchlight on Facebook and X.

Busted: Kristi Noem is investor in ethanol plant partnered with company proposing controversial pipeline

Gov. Kristi Noem is an investor in an ethanol plant that’s partnered with a company proposing a controversial carbon dioxide pipeline.

The ethanol plant is Granite Falls Energy in Granite Falls, Minnesota. Noem’s financial disclosures from her former service in Congress and her current time as governor reveal that she and her husband are investors in the plant. Summit Carbon Solutions, a company proposing a carbon pipeline through South Dakota, lists Granite Falls Energy as one of its partners.

Noem’s congressional disclosure forms, which require only an estimated range of income rather than an exact amount, say she made between $25,006 and $70,000 in dividends from the plant between her first run for Congress in 2010 until the end of her service as a U.S. representative in early 2019. The state-level disclosures she’s filed since then only require the identification of income sources, not amounts.

The disclosures raise questions about Noem’s lack of support for anti-pipeline legislation, according to Ed Fischbach, an Aberdeen-area farmer whose land is near the pipeline route.

“She and the people in her office wouldn’t even come talk to us when we came to the Capitol,” Fischbach said.

Noem’s spokesman, Ian Fury, responded to a message from South Dakota Searchlight with a written statement saying Noem “invested in Granite Falls many years ago and has always appropriately disclosed her finances.”

“Governor Noem has always supported our ethanol industry,” Fury’s statement said. “Like many farmers and those who have made a living in agriculture, she puts her money where her mouth is.”

Ethanol is a fuel additive made primarily from corn. Summit’s multi-billion-dollar project would capture carbon dioxide emissions from 34 ethanol plants in the upper Midwest. The gas would be liquefied and transported by pipeline for underground sequestration in North Dakota.

The pipeline project would qualify for incentive payments from the federal government of $85 per metric ton of carbon sequestered, for removing heat-trapping carbon from the atmosphere. It could also allow participating ethanol producers to sell their products in states and countries with stricter emissions standards.

A similar project, the Heartland Greenway pipeline, would also pass through South Dakota on its way to a sequestration site in Illinois. That project is proposed by a company called Navigator CO2.

Noem’s actions, positions

Noem has been involved in carbon pipeline policymaking. In March 2022, she signed a bill that established taxes for carbon dioxide pipelines similar to oil and natural gas pipelines. Summit Carbon Solutions testified in favor of the bill. At that time, Granite Falls Energy was already a partner with Summit, according to multiple media reports.

About a month after Noem signed that bill into law, Granite Falls CEO Jeffrey Oestmann said the proposed pipeline is vital to the company’s survival.

“We can’t compete without it,” he said during a landowner meeting in Sacred Heart, Minnesota, according to the Alexandria Echo Press newspaper.

No bills addressing carbon pipelines reached Noem’s desk during the most recent legislative session last winter. The permitting process for the pipelines is being handled by the state Public Utilities Commission, whose members are independently elected and unconnected with the Governor’s Office. The PUC’s public permit hearings for Summit and Navigator are scheduled for later this summer.

Noem has talked publicly about the pipeline proposals lately, after taking criticism from landowners along the pipeline routes. Some say Noem is not doing enough to protect their property rights from eminent domain, which is a court process that Summit is using to obtain access to land from unwilling landowners (meanwhile, Summit says about 70% of affected South Dakota landowners have signed voluntary easements).

In a radio interview published earlier this week by KWAT in Watertown, Noem responded to that criticism by saying, “I’m with the landowners and always have been.”

She then referenced recent reports that Summit has been using heavy equipment to conduct surveys that damaged some farmland.

“I’m shocked at some of those images and things that I’m seeing that’s happening to these farmers and landowners,” Noem said.

Her comments caused a backlash among some affected landowners and their allies. They have accused her of failing to support a bill last winter that would have prohibited carbon pipeline companies from using eminent domain. The bill passed the state House but failed in a Senate committee.

Fischbach, the Aberdeen-area farmer, said Noem not only failed to support the legislation but actively worked against it.

“Shoot, she had people in her office lobbying against the bill,” he said.

Fury, Noem’s spokesman, told South Dakota Searchlight that Noem “is particularly concerned about Summit’s use of eminent domain. She is also concerned about Summit’s financial ties to Chinese-influenced businesses.”

In her interview with KWAT, Noem alleged that Summit is benefitting from hundreds of millions of dollars in investments from China. Summit has denied that allegation in a subsequent statement to Sioux Falls-based television station KELO, but KELO pointed out that Summit secured a $300 million investment from TPG Rise Climate, and TPG Rise Climate has mentioned the Chinese Silk Road Fund as one of its investors.

Watchdog group criticizes Noem

On Thursday, a Washington, D.C.-based group called Accountable.US contacted South Dakota Searchlight with a tip and information revealing Noem’s investment in Granite Falls Energy. The website InfluenceWatch describes Accountable.US as an advocacy group on the center-left portion of the ideological spectrum.

“Gov. Noem stands to gain personally from this pipeline deal that robs a growing number of farmers of their land,” said Chris Marshall, spokesperson for Accountable.US, in a written statement. “If Noem is more committed to protecting her out-of-state investments, she should be upfront about her conflict of interest. If the governor really stands with farmers, action speaks louder than begrudging words of support.”

South Dakota Searchlight independently confirmed the information about Noem’s investment in Granite Falls Energy. Searchlight also found that while Noem was in Congress, she disclosed an investment in another ethanol plant, Glacial Lakes Energy in Watertown, which is also a Summit partner. She disclosed between $603 and $3,000 in income from that plant between her first run for Congress in 2010 until the end of her service as a U.S. representative in early 2019.

During her time as governor, Noem’s financial disclosures have not listed an investment in Glacial Lakes Energy. Noem’s spokesman, Ian Fury, told South Dakota Searchlight she is no longer invested in the Glacial Lakes plant. Not all of Noem’s state-level financial disclosures are readily available, because some of the links to the documents on the South Dakota Secretary of State’s website are broken.

But Noem has other connections to Summit Carbon Solutions. The company was one of five platinum sponsors for Noem’s second inauguration in January, along with ethanol company POET. The South Dakota Ethanol Producers Association was a gold-level sponsor.

And Noem’s son-in-law, Kyle Peters, is a registered lobbyist for Gevo Inc., which is building a plant to make jet fuel from corn in Lake Preston and plans to partner with Summit Carbon Solutions. Noem lauded Gevo’s project during her State of the State address to lawmakers in January.

“Gevo’s Net-Zero 1 Site in Lake Preston is the first ever billion-dollar investment in South Dakota,” she said. “They will literally turn corn into jet fuel, as impossible as that sounds.”

Some members of Noem’s own Republican Party are calling for a special legislative session – which can be called by the governor or two-thirds of the Legislature – to protect landowners along the pipeline route from eminent domain. Those Republicans, organized as the South Dakota Freedom Caucus, say they will stage a rally at noon Central on Thursday in the state Capitol Rotunda.

“The governor claims to be looking for a way to help the landowners,” said South Dakota Freedom Caucus Chairman and state Rep. Aaron Aylward, R-Harrisburg, in a news release. “Convening a special session would immediately address this crisis.”

South Dakota Searchlight is part of States Newsroom, a network of news bureaus supported by grants and a coalition of donors as a 501c(3) public charity. South Dakota Searchlight maintains editorial independence. Contact Editor Seth Tupper for questions: info@southdakotasearchlight.com. Follow South Dakota Searchlight on Facebook and Twitter.