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Question 1 of 30
1. Question
Consider a developer proposing to construct a new 150-megawatt solar farm within South Dakota, requiring the installation of a 115-kilovolt transmission line to connect to the existing grid. Under South Dakota Codified Law Chapter 49-41B, what is the fundamental legal prerequisite the developer must secure before commencing the construction of this energy generation facility and associated transmission infrastructure?
Correct
The question pertains to the regulatory framework governing the siting of energy generation facilities in South Dakota, specifically focusing on the role of the Public Utilities Commission (PUC) and the concept of a “certificate of need.” South Dakota Codified Law Chapter 49-41B establishes the process for obtaining a certificate of need for certain energy facilities, including power plants and transmission lines exceeding specific voltage thresholds. This statute mandates that an applicant must demonstrate that the proposed facility is necessary and will serve the public interest, considering factors such as environmental impact, economic benefits, and the availability of alternative energy sources. The PUC conducts a thorough review, often involving public hearings and expert testimony, to assess these factors. The certificate of need is a prerequisite for obtaining other necessary permits and licenses for construction and operation. Without this certification, an energy project cannot proceed in South Dakota. Therefore, the core legal requirement for initiating the development of a large-scale energy generation facility in the state is the acquisition of this certificate.
Incorrect
The question pertains to the regulatory framework governing the siting of energy generation facilities in South Dakota, specifically focusing on the role of the Public Utilities Commission (PUC) and the concept of a “certificate of need.” South Dakota Codified Law Chapter 49-41B establishes the process for obtaining a certificate of need for certain energy facilities, including power plants and transmission lines exceeding specific voltage thresholds. This statute mandates that an applicant must demonstrate that the proposed facility is necessary and will serve the public interest, considering factors such as environmental impact, economic benefits, and the availability of alternative energy sources. The PUC conducts a thorough review, often involving public hearings and expert testimony, to assess these factors. The certificate of need is a prerequisite for obtaining other necessary permits and licenses for construction and operation. Without this certification, an energy project cannot proceed in South Dakota. Therefore, the core legal requirement for initiating the development of a large-scale energy generation facility in the state is the acquisition of this certificate.
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Question 2 of 30
2. Question
Consider a scenario where a developer proposes constructing a large-scale wind energy project in rural South Dakota. The project aims to supply electricity to a regional grid. Under South Dakota Codified Law, what is the primary legal standard the South Dakota Public Utilities Commission will apply when evaluating the developer’s application for a certificate of authority to construct and operate this facility?
Correct
The South Dakota Public Utilities Commission (SDPUC) has regulatory authority over public utilities, including those involved in the generation, transmission, and distribution of energy. When a new energy generation facility, such as a wind farm, is proposed in South Dakota, a key aspect of the regulatory process involves demonstrating that the facility is in the public interest. This demonstration often requires an assessment of various factors, including economic benefits, environmental impacts, and reliability of service. South Dakota Codified Law (SDCL) Chapter 49-34A, specifically addresses the siting of energy generation facilities and the certification process. The law mandates that the SDPUC consider whether the proposed facility will serve the public convenience and necessity. This involves evaluating potential impacts on local communities, including property values, noise levels, and visual aesthetics, as well as the overall contribution to the state’s energy portfolio and grid stability. The concept of “public interest” is broad and encompasses not only the direct provision of energy but also the broader societal and economic implications of energy infrastructure development. Therefore, a comprehensive application for a new energy facility must detail how these multifaceted aspects are addressed and mitigated.
Incorrect
The South Dakota Public Utilities Commission (SDPUC) has regulatory authority over public utilities, including those involved in the generation, transmission, and distribution of energy. When a new energy generation facility, such as a wind farm, is proposed in South Dakota, a key aspect of the regulatory process involves demonstrating that the facility is in the public interest. This demonstration often requires an assessment of various factors, including economic benefits, environmental impacts, and reliability of service. South Dakota Codified Law (SDCL) Chapter 49-34A, specifically addresses the siting of energy generation facilities and the certification process. The law mandates that the SDPUC consider whether the proposed facility will serve the public convenience and necessity. This involves evaluating potential impacts on local communities, including property values, noise levels, and visual aesthetics, as well as the overall contribution to the state’s energy portfolio and grid stability. The concept of “public interest” is broad and encompasses not only the direct provision of energy but also the broader societal and economic implications of energy infrastructure development. Therefore, a comprehensive application for a new energy facility must detail how these multifaceted aspects are addressed and mitigated.
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Question 3 of 30
3. Question
Consider a proposed wind energy conversion system project in South Dakota, designed to generate 250 megawatts of electricity. The developer has submitted an application for a certificate of authority to the South Dakota Public Utilities Commission. During the public hearing, a local landowner expresses concerns about potential visual impacts and the project’s proximity to their property, citing potential devaluation of their land. The developer has presented data suggesting minimal impact on local property values and has incorporated visual mitigation measures. According to South Dakota Codified Law Chapter 49-41B, what is the primary legal standard the South Dakota Public Utilities Commission must apply when evaluating the landowner’s concerns in relation to granting the certificate of authority?
Correct
The South Dakota Public Utilities Commission (SDPUC) has the authority to grant certificates of authority for the construction and operation of major energy facilities, including wind energy conversion systems (WECS). This process is governed by South Dakota Codified Law (SDCL) Chapter 49-41B. For a WECS project exceeding a certain threshold, typically 100 megawatts (MW) or a specified number of turbines, a certificate of authority is required. The application process involves detailed site selection studies, environmental impact assessments, and public hearings. SDCL 49-41B-17 outlines the criteria the commission must consider when granting or denying a certificate. These criteria include the applicant’s financial and technical qualifications, the project’s impact on the environment and public health and safety, the project’s contribution to the state’s energy needs and economic development, and the project’s compatibility with local zoning ordinances and land use plans, provided they are not unreasonably restrictive. The commission must balance the benefits of the proposed energy project against its potential adverse impacts. A key aspect is ensuring that the project serves the public interest. The commission’s decision is based on the evidence presented during the administrative process, including testimony from the applicant, intervenors, and the public. The final decision must be supported by findings of fact and conclusions of law.
Incorrect
The South Dakota Public Utilities Commission (SDPUC) has the authority to grant certificates of authority for the construction and operation of major energy facilities, including wind energy conversion systems (WECS). This process is governed by South Dakota Codified Law (SDCL) Chapter 49-41B. For a WECS project exceeding a certain threshold, typically 100 megawatts (MW) or a specified number of turbines, a certificate of authority is required. The application process involves detailed site selection studies, environmental impact assessments, and public hearings. SDCL 49-41B-17 outlines the criteria the commission must consider when granting or denying a certificate. These criteria include the applicant’s financial and technical qualifications, the project’s impact on the environment and public health and safety, the project’s contribution to the state’s energy needs and economic development, and the project’s compatibility with local zoning ordinances and land use plans, provided they are not unreasonably restrictive. The commission must balance the benefits of the proposed energy project against its potential adverse impacts. A key aspect is ensuring that the project serves the public interest. The commission’s decision is based on the evidence presented during the administrative process, including testimony from the applicant, intervenors, and the public. The final decision must be supported by findings of fact and conclusions of law.
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Question 4 of 30
4. Question
Consider a proposed construction of a new high-voltage transmission line designed to connect a wind energy facility in western South Dakota to a load center in eastern South Dakota. Under South Dakota Codified Law (SDCL) Chapter 49-34A, what is the primary legal standard the South Dakota Public Utilities Commission must apply when evaluating whether to grant a certificate of public convenience and necessity for this project?
Correct
South Dakota Codified Law (SDCL) Chapter 49-34A governs the regulation of energy utilities and public utilities in the state. Specifically, SDCL § 49-34A-17.1 addresses the process for determining whether a proposed energy project, such as a new transmission line or generation facility, is in the public interest. This determination involves a comprehensive review by the South Dakota Public Utilities Commission (PUC). The PUC considers various factors, including the economic feasibility of the project, its impact on the environment, the reliability of the energy supply it will provide, and its effect on existing energy infrastructure. Furthermore, the commission must assess whether the project aligns with the state’s energy policies and goals. The statute emphasizes a balancing of these interests to ensure that any approved project serves the broader public welfare. The question focuses on the statutory framework for approving such projects, highlighting the commission’s role in evaluating public interest.
Incorrect
South Dakota Codified Law (SDCL) Chapter 49-34A governs the regulation of energy utilities and public utilities in the state. Specifically, SDCL § 49-34A-17.1 addresses the process for determining whether a proposed energy project, such as a new transmission line or generation facility, is in the public interest. This determination involves a comprehensive review by the South Dakota Public Utilities Commission (PUC). The PUC considers various factors, including the economic feasibility of the project, its impact on the environment, the reliability of the energy supply it will provide, and its effect on existing energy infrastructure. Furthermore, the commission must assess whether the project aligns with the state’s energy policies and goals. The statute emphasizes a balancing of these interests to ensure that any approved project serves the broader public welfare. The question focuses on the statutory framework for approving such projects, highlighting the commission’s role in evaluating public interest.
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Question 5 of 30
5. Question
Consider a hypothetical scenario in South Dakota where a private entity, “Prairie Wind Energy LLC,” proposes to construct and operate a new wind energy facility with a nameplate capacity of 75 megawatts, intended solely for sale into the regional wholesale electricity market. According to South Dakota energy law, what is the primary regulatory body responsible for granting the necessary authorization for this project, and what is the core legal framework governing this authorization process?
Correct
South Dakota Codified Law (SDCL) Chapter 49-34A governs the regulation of energy conversion and generation facilities. Specifically, SDCL § 49-34A-57 addresses the siting and certification of such facilities, requiring a certificate of authority from the Public Utilities Commission (PUC) for any new or expanded facility that meets certain capacity thresholds or is intended for wholesale electricity generation. The process involves demonstrating public need, environmental compatibility, and compliance with all applicable state and federal regulations. The PUC’s authority extends to reviewing applications, conducting public hearings, and issuing or denying certificates, often with specific conditions. This ensures that energy development in South Dakota aligns with state energy policies and minimizes adverse impacts. A facility designed for a nominal output of 50 megawatts or more, or one intended to sell electricity to the wholesale market, falls under this jurisdiction. The PUC’s role is to balance the need for reliable and affordable energy with environmental protection and public interest.
Incorrect
South Dakota Codified Law (SDCL) Chapter 49-34A governs the regulation of energy conversion and generation facilities. Specifically, SDCL § 49-34A-57 addresses the siting and certification of such facilities, requiring a certificate of authority from the Public Utilities Commission (PUC) for any new or expanded facility that meets certain capacity thresholds or is intended for wholesale electricity generation. The process involves demonstrating public need, environmental compatibility, and compliance with all applicable state and federal regulations. The PUC’s authority extends to reviewing applications, conducting public hearings, and issuing or denying certificates, often with specific conditions. This ensures that energy development in South Dakota aligns with state energy policies and minimizes adverse impacts. A facility designed for a nominal output of 50 megawatts or more, or one intended to sell electricity to the wholesale market, falls under this jurisdiction. The PUC’s role is to balance the need for reliable and affordable energy with environmental protection and public interest.
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Question 6 of 30
6. Question
A developer proposes to construct a large-scale wind energy facility in rural South Dakota. During the application process for a certificate of authority before the South Dakota Public Utilities Commission, a key point of contention arises regarding the proximity of proposed turbine sites to county-maintained roads. The developer argues that South Dakota law does not explicitly mandate specific setback distances from county roads for wind turbines, citing the general provisions of SDCL Chapter 41-2. Which South Dakota statute provides the primary legal framework for the siting of such energy facilities and the issuance of a certificate of authority, and what is the significance of the cited chapter in this context?
Correct
The South Dakota Public Utilities Commission (SDPUC) has specific regulations governing the siting of wind energy facilities, particularly concerning setbacks from occupied structures and property lines. South Dakota Codified Law (SDCL) Chapter 41-2, which pertains to oil and gas, is not directly applicable to wind energy facility siting. SDCL Chapter 49-34A addresses the siting of electric generation facilities, including wind farms, and grants the SDPUC authority over these matters. Specifically, SDCL 49-34A-61 outlines the requirement for a certificate of authority for such facilities and details the process, which includes public hearings and consideration of environmental and economic impacts. While SDCL 49-34A-64 mandates certain setback distances, these are generally related to property lines and occupied structures, not necessarily specific distances from county roads or public rights-of-way as a primary determinant of the certificate of authority process itself. The SDPUC’s rules, such as those found in ARSD 20:10:25, further elaborate on the siting requirements, including noise levels and visual impact, but the core regulatory authority for issuing a certificate of authority for a major energy facility like a wind farm stems from SDCL Chapter 49-34A. Therefore, the absence of a specific setback requirement from county roads in SDCL 49-34A-61 does not preclude the SDPUC from considering such factors as part of the overall public interest and environmental review during the certificate of authority application process, but it is not the sole or primary legal basis for granting or denying the certificate as described in that specific section. The question tests the understanding of which South Dakota law provides the primary framework for wind energy facility siting and the issuance of a certificate of authority, and correctly identifies SDCL Chapter 49-34A as that foundational legislation.
Incorrect
The South Dakota Public Utilities Commission (SDPUC) has specific regulations governing the siting of wind energy facilities, particularly concerning setbacks from occupied structures and property lines. South Dakota Codified Law (SDCL) Chapter 41-2, which pertains to oil and gas, is not directly applicable to wind energy facility siting. SDCL Chapter 49-34A addresses the siting of electric generation facilities, including wind farms, and grants the SDPUC authority over these matters. Specifically, SDCL 49-34A-61 outlines the requirement for a certificate of authority for such facilities and details the process, which includes public hearings and consideration of environmental and economic impacts. While SDCL 49-34A-64 mandates certain setback distances, these are generally related to property lines and occupied structures, not necessarily specific distances from county roads or public rights-of-way as a primary determinant of the certificate of authority process itself. The SDPUC’s rules, such as those found in ARSD 20:10:25, further elaborate on the siting requirements, including noise levels and visual impact, but the core regulatory authority for issuing a certificate of authority for a major energy facility like a wind farm stems from SDCL Chapter 49-34A. Therefore, the absence of a specific setback requirement from county roads in SDCL 49-34A-61 does not preclude the SDPUC from considering such factors as part of the overall public interest and environmental review during the certificate of authority application process, but it is not the sole or primary legal basis for granting or denying the certificate as described in that specific section. The question tests the understanding of which South Dakota law provides the primary framework for wind energy facility siting and the issuance of a certificate of authority, and correctly identifies SDCL Chapter 49-34A as that foundational legislation.
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Question 7 of 30
7. Question
A petroleum distributor based in Rapid City, South Dakota, intends to introduce a premium diesel fuel brand, “Dakota Peak Power,” into the state’s market. Before commencing sales, what is the mandatory regulatory step the distributor must undertake with the South Dakota Department of Agriculture and Natural Resources concerning this new brand?
Correct
South Dakota Codified Law Chapter 38-16 governs the regulation of petroleum products and their sale. Specifically, Section 38-16-10 outlines the requirements for the registration of petroleum product brands and trademarks with the South Dakota Department of Agriculture and Natural Resources. This registration process is crucial for preventing consumer confusion and ensuring fair competition in the marketplace. A petroleum distributor operating in South Dakota, wishing to market a new line of motor oil under a distinctive brand name, must comply with these registration provisions. The law aims to protect both consumers from deceptive practices and legitimate businesses from unfair competition by establishing a clear record of ownership and use of brand identifiers within the state’s petroleum market. Failure to register a brand can lead to penalties and the inability to legally market products under that brand within South Dakota. The department has the authority to deny registration if a proposed brand is confusingly similar to an existing registered brand, thereby upholding the integrity of the registration system.
Incorrect
South Dakota Codified Law Chapter 38-16 governs the regulation of petroleum products and their sale. Specifically, Section 38-16-10 outlines the requirements for the registration of petroleum product brands and trademarks with the South Dakota Department of Agriculture and Natural Resources. This registration process is crucial for preventing consumer confusion and ensuring fair competition in the marketplace. A petroleum distributor operating in South Dakota, wishing to market a new line of motor oil under a distinctive brand name, must comply with these registration provisions. The law aims to protect both consumers from deceptive practices and legitimate businesses from unfair competition by establishing a clear record of ownership and use of brand identifiers within the state’s petroleum market. Failure to register a brand can lead to penalties and the inability to legally market products under that brand within South Dakota. The department has the authority to deny registration if a proposed brand is confusingly similar to an existing registered brand, thereby upholding the integrity of the registration system.
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Question 8 of 30
8. Question
Consider a hypothetical proposal for a new wind energy generation facility in western South Dakota. The applicant, Prairie Winds LLC, has submitted an application for a certificate of authority to construct and operate the facility. During the Public Utilities Commission’s review, it is revealed that while the facility is projected to provide significant economic benefits and contribute to renewable energy goals, its proposed location is in close proximity to a sensitive avian habitat. Environmental impact studies submitted by Prairie Winds LLC indicate that the facility’s operation, even with proposed mitigation measures, could still result in a moderate but persistent risk of avian mortality due to turbine collisions. The commission must weigh these potential environmental impacts against the broader public interest in reliable and renewable energy provision. Under South Dakota Codified Law Chapter 49-34A, what is the primary legal consideration for the Public Utilities Commission when evaluating Prairie Winds LLC’s application, given the potential for adverse environmental impact on avian populations?
Correct
South Dakota Codified Law (SDCL) Chapter 49-34A, concerning the regulation of utilities, addresses the certification of authorities for energy conversion facilities. Specifically, SDCL § 49-34A-57 outlines the criteria for granting such certification. This statute requires an applicant to demonstrate that the proposed facility will serve the public interest, will not unduly interfere with the coordinated use of energy resources, and that the applicant possesses the financial and technical capability to construct and operate the facility. Furthermore, the law mandates that the facility’s construction and operation must comply with all applicable state and federal environmental laws and regulations, and that the siting of the facility will not result in significant adverse environmental impact that cannot be mitigated. The Public Utilities Commission of South Dakota is the primary body responsible for reviewing these applications and issuing certifications, ensuring that all statutory requirements are met to protect the public welfare and the environment. The process involves public hearings and opportunities for affected parties to present evidence.
Incorrect
South Dakota Codified Law (SDCL) Chapter 49-34A, concerning the regulation of utilities, addresses the certification of authorities for energy conversion facilities. Specifically, SDCL § 49-34A-57 outlines the criteria for granting such certification. This statute requires an applicant to demonstrate that the proposed facility will serve the public interest, will not unduly interfere with the coordinated use of energy resources, and that the applicant possesses the financial and technical capability to construct and operate the facility. Furthermore, the law mandates that the facility’s construction and operation must comply with all applicable state and federal environmental laws and regulations, and that the siting of the facility will not result in significant adverse environmental impact that cannot be mitigated. The Public Utilities Commission of South Dakota is the primary body responsible for reviewing these applications and issuing certifications, ensuring that all statutory requirements are met to protect the public welfare and the environment. The process involves public hearings and opportunities for affected parties to present evidence.
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Question 9 of 30
9. Question
A South Dakota-based electric cooperative, Prairie Wind Energy, proposes to construct a large-scale wind farm in western South Dakota, which would significantly alter its energy generation portfolio. The cooperative submits an application to the South Dakota Public Utilities Commission (PUC) for approval, citing projected long-term cost savings and increased energy independence for its members. During the PUC’s review, several member cooperatives express concerns regarding the intermittency of wind power and potential impacts on grid stability, while environmental advocacy groups support the project for its reduced carbon footprint. What is the primary legal standard the South Dakota PUC must apply when evaluating Prairie Wind Energy’s application?
Correct
The South Dakota Public Utilities Commission (PUC) has a mandate to ensure that energy utilities provide reliable service at reasonable rates while also considering environmental impacts and consumer protection. When a utility proposes a significant change in its rate structure or operational methods, such as the construction of a new renewable energy facility, it must undergo a formal regulatory review process. This process typically involves the submission of an application detailing the proposed project, its expected costs, benefits, and environmental considerations. The PUC then conducts an investigation, which may include public hearings, expert testimony, and analysis of economic and technical data. The goal is to determine if the proposed action is in the public interest. Public interest in this context encompasses not only the financial aspects for consumers but also the long-term sustainability of energy supply, the impact on the state’s economy, and adherence to environmental standards. South Dakota Codified Law § 49-34A-57 outlines the commission’s authority to approve or deny applications for new energy facilities, emphasizing the need for the facility to be in the public interest. The commission’s decision-making process involves balancing competing interests, such as the desire for lower energy costs versus the need for investment in new, cleaner technologies. The commission also considers the impact on existing infrastructure and the overall energy landscape of South Dakota.
Incorrect
The South Dakota Public Utilities Commission (PUC) has a mandate to ensure that energy utilities provide reliable service at reasonable rates while also considering environmental impacts and consumer protection. When a utility proposes a significant change in its rate structure or operational methods, such as the construction of a new renewable energy facility, it must undergo a formal regulatory review process. This process typically involves the submission of an application detailing the proposed project, its expected costs, benefits, and environmental considerations. The PUC then conducts an investigation, which may include public hearings, expert testimony, and analysis of economic and technical data. The goal is to determine if the proposed action is in the public interest. Public interest in this context encompasses not only the financial aspects for consumers but also the long-term sustainability of energy supply, the impact on the state’s economy, and adherence to environmental standards. South Dakota Codified Law § 49-34A-57 outlines the commission’s authority to approve or deny applications for new energy facilities, emphasizing the need for the facility to be in the public interest. The commission’s decision-making process involves balancing competing interests, such as the desire for lower energy costs versus the need for investment in new, cleaner technologies. The commission also considers the impact on existing infrastructure and the overall energy landscape of South Dakota.
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Question 10 of 30
10. Question
Consider a scenario where a petroleum products distributor operating primarily in South Dakota is audited by the state’s Department of Revenue. The auditor requests detailed sales and delivery records for the past two fiscal years to verify excise tax payments. The distributor, citing proprietary business information concerns and a lack of perceived necessity, refuses to provide the requested documentation, stating they have internal inventory logs but no formal sales transaction reports as mandated by state law. Under South Dakota Codified Law, what is the most direct legal consequence of the distributor’s refusal to provide the specified records?
Correct
South Dakota Codified Law Chapter 38-15 governs the regulation of petroleum products and their distribution, including requirements for bulk storage and dispensing. Specifically, \(SDCL 38-15-15\) mandates that any person who sells or offers for sale petroleum products in South Dakota must maintain accurate records of all purchases, sales, and deliveries of such products. These records are crucial for ensuring compliance with state tax laws, environmental regulations, and consumer protection standards. The law requires these records to be kept for a minimum of three years and made available for inspection by authorized state officials. The purpose of this record-keeping is to provide a transparent and auditable trail for all petroleum product transactions within the state, thereby preventing fraud, ensuring proper tax remittance, and facilitating regulatory oversight of the energy sector. Without these detailed records, it becomes exceedingly difficult for the state to verify the volume of fuel sold, calculate the correct excise taxes due, and monitor compliance with storage and handling requirements designed to protect the environment. Therefore, a distributor failing to provide such documentation upon request would be in violation of \(SDCL 38-15-15\).
Incorrect
South Dakota Codified Law Chapter 38-15 governs the regulation of petroleum products and their distribution, including requirements for bulk storage and dispensing. Specifically, \(SDCL 38-15-15\) mandates that any person who sells or offers for sale petroleum products in South Dakota must maintain accurate records of all purchases, sales, and deliveries of such products. These records are crucial for ensuring compliance with state tax laws, environmental regulations, and consumer protection standards. The law requires these records to be kept for a minimum of three years and made available for inspection by authorized state officials. The purpose of this record-keeping is to provide a transparent and auditable trail for all petroleum product transactions within the state, thereby preventing fraud, ensuring proper tax remittance, and facilitating regulatory oversight of the energy sector. Without these detailed records, it becomes exceedingly difficult for the state to verify the volume of fuel sold, calculate the correct excise taxes due, and monitor compliance with storage and handling requirements designed to protect the environment. Therefore, a distributor failing to provide such documentation upon request would be in violation of \(SDCL 38-15-15\).
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Question 11 of 30
11. Question
Consider a scenario where a South Dakota-based electric cooperative, “Prairie Power,” proposes to construct a new 230-kilovolt transmission line spanning 75 miles across rural areas of the state to connect a new wind energy facility to the existing grid. Prairie Power has completed preliminary engineering and environmental impact assessments. According to South Dakota Codified Law, what is the primary regulatory hurdle Prairie Power must overcome before commencing construction of this transmission line?
Correct
South Dakota Codified Law (SDCL) Chapter 49-34A governs the regulation of energy utilities, including provisions for the issuance of certificates of authority for the construction of major energy facilities. When a utility proposes to construct a new transmission line exceeding a certain voltage threshold or length, or a new power plant, it must obtain a certificate of authority from the Public Utilities Commission (PUC). The process is designed to ensure that proposed facilities are necessary, will serve the public interest, and will be constructed in a manner that minimizes adverse environmental and economic impacts. This involves a comprehensive review by the PUC, including public hearings and consideration of various factors such as the need for the facility, its environmental impact, alternative sites and technologies, and the financial qualifications of the applicant. The PUC’s decision is based on whether the applicant has met the burden of proof to demonstrate that the proposed facility is in the public interest. This often involves detailed engineering, environmental, and economic studies submitted by the applicant. The statutory framework aims to balance the need for reliable and affordable energy infrastructure with the protection of public health, safety, and the environment within South Dakota.
Incorrect
South Dakota Codified Law (SDCL) Chapter 49-34A governs the regulation of energy utilities, including provisions for the issuance of certificates of authority for the construction of major energy facilities. When a utility proposes to construct a new transmission line exceeding a certain voltage threshold or length, or a new power plant, it must obtain a certificate of authority from the Public Utilities Commission (PUC). The process is designed to ensure that proposed facilities are necessary, will serve the public interest, and will be constructed in a manner that minimizes adverse environmental and economic impacts. This involves a comprehensive review by the PUC, including public hearings and consideration of various factors such as the need for the facility, its environmental impact, alternative sites and technologies, and the financial qualifications of the applicant. The PUC’s decision is based on whether the applicant has met the burden of proof to demonstrate that the proposed facility is in the public interest. This often involves detailed engineering, environmental, and economic studies submitted by the applicant. The statutory framework aims to balance the need for reliable and affordable energy infrastructure with the protection of public health, safety, and the environment within South Dakota.
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Question 12 of 30
12. Question
A renewable energy firm proposes to construct a significant wind energy project in a rural county in South Dakota. While the project promises substantial economic benefits and contributes to the state’s renewable energy portfolio goals, a local county ordinance, enacted prior to the firm’s proposal, contains a provision that could be interpreted as restricting the height of wind turbines in the proposed project area. The firm has initiated the process to obtain a certificate of public convenience and necessity from the South Dakota Public Utilities Commission. What is the primary legal authority that governs the approval of this major energy facility in South Dakota, and how does it interact with the local county ordinance?
Correct
The South Dakota Public Utilities Commission (SDPUC) has broad authority over the siting and operation of energy facilities within the state, including wind farms. South Dakota Codified Law (SDCL) Chapter 49-41B outlines the process for obtaining a certificate of public convenience and necessity (CPCN) for major energy facilities. This chapter requires applicants to demonstrate that the proposed facility is necessary and will serve the public interest, considering factors such as economic benefits, environmental impact, and the applicant’s financial and technical qualifications. Furthermore, SDCL 49-41B-17 specifies that the SDPUC must consider the views of affected landowners and local governments during the application review. While local zoning ordinances can influence siting, the ultimate authority for approving the construction of a major energy facility rests with the SDPUC through the CPCN process. Therefore, a developer must secure this state-level approval, which incorporates consideration of local input, to proceed with a wind energy project in South Dakota, irrespective of whether a specific local ordinance directly prohibits it. The SDPUC’s decision-making process is designed to balance state-wide energy needs with local concerns, ensuring that the public interest is paramount.
Incorrect
The South Dakota Public Utilities Commission (SDPUC) has broad authority over the siting and operation of energy facilities within the state, including wind farms. South Dakota Codified Law (SDCL) Chapter 49-41B outlines the process for obtaining a certificate of public convenience and necessity (CPCN) for major energy facilities. This chapter requires applicants to demonstrate that the proposed facility is necessary and will serve the public interest, considering factors such as economic benefits, environmental impact, and the applicant’s financial and technical qualifications. Furthermore, SDCL 49-41B-17 specifies that the SDPUC must consider the views of affected landowners and local governments during the application review. While local zoning ordinances can influence siting, the ultimate authority for approving the construction of a major energy facility rests with the SDPUC through the CPCN process. Therefore, a developer must secure this state-level approval, which incorporates consideration of local input, to proceed with a wind energy project in South Dakota, irrespective of whether a specific local ordinance directly prohibits it. The SDPUC’s decision-making process is designed to balance state-wide energy needs with local concerns, ensuring that the public interest is paramount.
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Question 13 of 30
13. Question
Consider a scenario where “Prairie Wind Energy LLC” has submitted an application to the South Dakota Public Utilities Commission (SDPUC) for a certificate of authority to construct and operate a new 300-megawatt wind farm in a rural area of western South Dakota. The application details significant projected tax revenue for the local county and claims to offer a stable, renewable energy source to meet regional demand. However, a coalition of landowners near the proposed site has raised concerns regarding potential impacts on property values, visual aesthetics, and wildlife migration patterns. Which of the following principles, as guided by South Dakota Codified Law Chapter 49-34A, would the SDPUC most likely prioritize when evaluating Prairie Wind Energy LLC’s application to ensure the proposed facility serves the public convenience and necessity?
Correct
The South Dakota Public Utilities Commission (SDPUC) has the authority to grant or deny certificates of authority for the construction and operation of electric generation facilities within the state. This authority is primarily derived from South Dakota Codified Law (SDCL) Chapter 49-34A, which governs the siting and certification of energy facilities. When evaluating an application for a new electric generation facility, the SDPUC considers a multitude of factors to ensure that the proposed facility serves the public interest. These factors include, but are not limited to, the economic impact on the state and local communities, the environmental consequences, the impact on existing infrastructure, the reliability of the proposed power source, and the applicant’s financial qualifications. Specifically, SDCL § 49-34A-57 outlines the criteria for granting a certificate of authority, emphasizing the need for the facility to be consistent with the state’s energy policy and to provide reliable service at reasonable rates. The commission must balance the potential benefits of new energy generation against any adverse effects. The process involves public hearings, environmental impact assessments, and thorough review of technical and financial data. The ultimate decision rests on whether the applicant demonstrates that the proposed facility is in the public convenience and necessity, considering all relevant economic, environmental, and social factors.
Incorrect
The South Dakota Public Utilities Commission (SDPUC) has the authority to grant or deny certificates of authority for the construction and operation of electric generation facilities within the state. This authority is primarily derived from South Dakota Codified Law (SDCL) Chapter 49-34A, which governs the siting and certification of energy facilities. When evaluating an application for a new electric generation facility, the SDPUC considers a multitude of factors to ensure that the proposed facility serves the public interest. These factors include, but are not limited to, the economic impact on the state and local communities, the environmental consequences, the impact on existing infrastructure, the reliability of the proposed power source, and the applicant’s financial qualifications. Specifically, SDCL § 49-34A-57 outlines the criteria for granting a certificate of authority, emphasizing the need for the facility to be consistent with the state’s energy policy and to provide reliable service at reasonable rates. The commission must balance the potential benefits of new energy generation against any adverse effects. The process involves public hearings, environmental impact assessments, and thorough review of technical and financial data. The ultimate decision rests on whether the applicant demonstrates that the proposed facility is in the public convenience and necessity, considering all relevant economic, environmental, and social factors.
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Question 14 of 30
14. Question
Under the South Dakota Energy Development Act, specifically concerning the South Dakota Energy Office’s mandate to promote energy efficiency and alternative energy development, which of the following actions most accurately reflects the statutory authority granted to the office for achieving these objectives?
Correct
South Dakota Codified Law (SDCL) Chapter 49-34A, the “South Dakota Energy Development Act,” outlines the state’s framework for promoting energy development and conservation. Specifically, SDCL § 49-34A-10 addresses the powers and duties of the South Dakota Energy Office. This section grants the office broad authority to undertake various activities aimed at enhancing energy efficiency and developing alternative energy sources. These activities include conducting studies, developing programs, providing technical assistance, and entering into contracts. The legislative intent behind this chapter is to foster a robust energy sector within South Dakota that is both economically viable and environmentally responsible. The office’s role is proactive, involving research into emerging technologies, the creation of educational materials for consumers and businesses, and the facilitation of pilot projects. Furthermore, the act empowers the office to seek and accept federal and private grants to fund its initiatives, thereby leveraging external resources to achieve state energy goals. The core principle is to ensure a stable and affordable energy supply while encouraging sustainable practices and innovation in the energy field. The office’s mandate is to serve as a central resource and facilitator for energy-related matters within the state, working collaboratively with various stakeholders, including utilities, businesses, and governmental agencies, to advance South Dakota’s energy objectives.
Incorrect
South Dakota Codified Law (SDCL) Chapter 49-34A, the “South Dakota Energy Development Act,” outlines the state’s framework for promoting energy development and conservation. Specifically, SDCL § 49-34A-10 addresses the powers and duties of the South Dakota Energy Office. This section grants the office broad authority to undertake various activities aimed at enhancing energy efficiency and developing alternative energy sources. These activities include conducting studies, developing programs, providing technical assistance, and entering into contracts. The legislative intent behind this chapter is to foster a robust energy sector within South Dakota that is both economically viable and environmentally responsible. The office’s role is proactive, involving research into emerging technologies, the creation of educational materials for consumers and businesses, and the facilitation of pilot projects. Furthermore, the act empowers the office to seek and accept federal and private grants to fund its initiatives, thereby leveraging external resources to achieve state energy goals. The core principle is to ensure a stable and affordable energy supply while encouraging sustainable practices and innovation in the energy field. The office’s mandate is to serve as a central resource and facilitator for energy-related matters within the state, working collaboratively with various stakeholders, including utilities, businesses, and governmental agencies, to advance South Dakota’s energy objectives.
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Question 15 of 30
15. Question
Consider a scenario where Northern Plains Electric Cooperative, an investor-owned electric utility operating within South Dakota, proposes a significant increase in its base electricity rates to fund substantial upgrades to its transmission infrastructure. The cooperative argues these upgrades are essential for grid modernization and reliability. According to South Dakota Codified Law, what is the primary procedural requirement the South Dakota Public Utilities Commission must adhere to before approving or denying such a rate adjustment, and what is the underlying legal standard guiding the commission’s decision-making process?
Correct
The South Dakota Public Utilities Commission (SDPUC) has a specific process for approving utility rate increases. This process is governed by South Dakota Codified Law (SDCL) Chapter 49-34, which outlines the requirements for electric utilities seeking to adjust their rates. When a utility files a request for a rate change, the SDPUC must conduct a thorough review to ensure the proposed rates are just and reasonable. This review typically involves analyzing the utility’s operating expenses, capital investments, and revenue requirements. SDCL 49-34-11.1 mandates that the commission hold public hearings to allow interested parties, including consumers, to present testimony and evidence. The commission must also consider the impact of the proposed rates on the utility’s financial health and its ability to provide reliable service. Furthermore, SDCL 49-34-11.2 specifies a timeframe within which the commission must issue a decision, often involving a suspension period for the proposed rates while the investigation is ongoing. The commission’s final order must be supported by findings of fact and conclusions of law, demonstrating that the approved rates are in the public interest. The core principle is that rates must cover the cost of service, including a fair rate of return on investment, but should not be unduly burdensome on consumers. The commission’s role is to balance these competing interests.
Incorrect
The South Dakota Public Utilities Commission (SDPUC) has a specific process for approving utility rate increases. This process is governed by South Dakota Codified Law (SDCL) Chapter 49-34, which outlines the requirements for electric utilities seeking to adjust their rates. When a utility files a request for a rate change, the SDPUC must conduct a thorough review to ensure the proposed rates are just and reasonable. This review typically involves analyzing the utility’s operating expenses, capital investments, and revenue requirements. SDCL 49-34-11.1 mandates that the commission hold public hearings to allow interested parties, including consumers, to present testimony and evidence. The commission must also consider the impact of the proposed rates on the utility’s financial health and its ability to provide reliable service. Furthermore, SDCL 49-34-11.2 specifies a timeframe within which the commission must issue a decision, often involving a suspension period for the proposed rates while the investigation is ongoing. The commission’s final order must be supported by findings of fact and conclusions of law, demonstrating that the approved rates are in the public interest. The core principle is that rates must cover the cost of service, including a fair rate of return on investment, but should not be unduly burdensome on consumers. The commission’s role is to balance these competing interests.
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Question 16 of 30
16. Question
A renewable energy developer proposes to construct a new 200-megawatt wind energy facility in western South Dakota, near the Cheyenne River Sioux Tribe reservation. The developer has conducted preliminary environmental assessments and engaged in initial community outreach. What is the primary legal framework governing the approval process for this facility within South Dakota, and what fundamental principle must the South Dakota Public Utilities Commission consider when evaluating the application?
Correct
The South Dakota Public Utilities Commission (SDPUC) has broad authority over the siting and construction of energy infrastructure, including wind energy facilities, under SDCL Chapter 49-41B. This statute outlines a comprehensive process for obtaining a permit for such facilities. A key aspect of this process involves demonstrating that the proposed facility meets specific public interest criteria and environmental standards. Specifically, SDCL § 49-41B-22 mandates that the commission must find that the facility will be in the public interest and will not result in undue adverse effects on the environment, public health and safety, and aesthetic values. The process involves extensive public input, environmental impact assessments, and consideration of socioeconomic factors. The commission’s decision-making framework requires balancing the benefits of renewable energy development with potential negative impacts. Therefore, a thorough understanding of the SDCL 49-41B siting requirements, including the public interest test and the mitigation of adverse effects, is crucial for any developer seeking to construct a wind energy facility in South Dakota. The commission’s role is to ensure that the development aligns with the state’s energy goals while protecting its citizens and natural resources.
Incorrect
The South Dakota Public Utilities Commission (SDPUC) has broad authority over the siting and construction of energy infrastructure, including wind energy facilities, under SDCL Chapter 49-41B. This statute outlines a comprehensive process for obtaining a permit for such facilities. A key aspect of this process involves demonstrating that the proposed facility meets specific public interest criteria and environmental standards. Specifically, SDCL § 49-41B-22 mandates that the commission must find that the facility will be in the public interest and will not result in undue adverse effects on the environment, public health and safety, and aesthetic values. The process involves extensive public input, environmental impact assessments, and consideration of socioeconomic factors. The commission’s decision-making framework requires balancing the benefits of renewable energy development with potential negative impacts. Therefore, a thorough understanding of the SDCL 49-41B siting requirements, including the public interest test and the mitigation of adverse effects, is crucial for any developer seeking to construct a wind energy facility in South Dakota. The commission’s role is to ensure that the development aligns with the state’s energy goals while protecting its citizens and natural resources.
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Question 17 of 30
17. Question
Consider a scenario where a developer proposes to construct a new wind farm in western South Dakota, a region with significant agricultural land and potential impacts on migratory bird routes. The developer submits an application for a certificate of authority to the South Dakota Public Utilities Commission. Under South Dakota Codified Law § 49-34A-47, what is the primary legal standard the Public Utilities Commission must apply when evaluating whether to grant this certificate of authority for the wind energy conversion system?
Correct
South Dakota Codified Law § 49-34A-47 outlines the process for the siting of energy conversion facilities. Specifically, it addresses the requirement for a certificate of authority to be obtained from the Public Utilities Commission (PUC) for the construction or operation of such facilities, including wind energy conversion systems. The law mandates that an application for this certificate must be filed with the PUC, and this application must contain detailed information regarding the proposed facility’s location, design, environmental impact, and economic feasibility. Furthermore, the law specifies public notice requirements and opportunities for public hearings to ensure community input. The PUC then reviews the application, considering various factors such as environmental protection, public health and safety, economic development, and the impact on existing land uses and the state’s energy infrastructure. The commission’s decision is based on whether the proposed facility serves the public interest and meets the statutory requirements. The law also allows for judicial review of the commission’s final decision.
Incorrect
South Dakota Codified Law § 49-34A-47 outlines the process for the siting of energy conversion facilities. Specifically, it addresses the requirement for a certificate of authority to be obtained from the Public Utilities Commission (PUC) for the construction or operation of such facilities, including wind energy conversion systems. The law mandates that an application for this certificate must be filed with the PUC, and this application must contain detailed information regarding the proposed facility’s location, design, environmental impact, and economic feasibility. Furthermore, the law specifies public notice requirements and opportunities for public hearings to ensure community input. The PUC then reviews the application, considering various factors such as environmental protection, public health and safety, economic development, and the impact on existing land uses and the state’s energy infrastructure. The commission’s decision is based on whether the proposed facility serves the public interest and meets the statutory requirements. The law also allows for judicial review of the commission’s final decision.
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Question 18 of 30
18. Question
A hypothetical electric cooperative in South Dakota is planning to construct a new wind energy facility to supplement its existing power supply. The cooperative seeks to recover costs incurred during the construction phase through its approved rate structure, arguing that this investment is crucial for meeting the growing energy demands of its member-consumers and enhancing grid stability. Under South Dakota Codified Law § 49-34A-10.1, what is the primary legal basis for the cooperative to seek recovery of these construction-period costs from its ratepayers, and what key conditions must it demonstrate to the South Dakota Public Utilities Commission for such recovery to be considered?
Correct
South Dakota Codified Law § 49-34A-10.1 outlines the requirements for a utility to recover costs associated with the construction of new electric generating facilities. Specifically, it addresses the “construction-work-in-progress” (CWIP) allowance, which permits utilities to include a portion of their construction costs in their rate base before the facility is operational. The statute states that a utility may be allowed to recover costs for new generating facilities through an allowance for funds used during construction (AFUDC) or CWIP, provided that the facility is intended to provide reliable and affordable energy for South Dakota customers and meets specific environmental standards. The key aspect is the demonstration of the facility’s contribution to the state’s energy needs and adherence to regulatory requirements. The calculation of the CWIP allowance itself involves complex financial modeling and regulatory approval, but the underlying legal principle is the utility’s ability to earn a return on investment during the construction phase for qualifying projects. The statute does not mandate a specific percentage of CWIP to be included but rather establishes the conditions under which it can be considered and approved by the South Dakota Public Utilities Commission (SDPUC). The emphasis is on ensuring that such recovery mechanisms ultimately benefit ratepayers through improved energy reliability and cost-effectiveness, while also allowing the utility to secure financing for essential infrastructure. The process involves a formal rate case filing where the utility presents its justification for including CWIP in its rates, subject to scrutiny and approval by the SDPUC.
Incorrect
South Dakota Codified Law § 49-34A-10.1 outlines the requirements for a utility to recover costs associated with the construction of new electric generating facilities. Specifically, it addresses the “construction-work-in-progress” (CWIP) allowance, which permits utilities to include a portion of their construction costs in their rate base before the facility is operational. The statute states that a utility may be allowed to recover costs for new generating facilities through an allowance for funds used during construction (AFUDC) or CWIP, provided that the facility is intended to provide reliable and affordable energy for South Dakota customers and meets specific environmental standards. The key aspect is the demonstration of the facility’s contribution to the state’s energy needs and adherence to regulatory requirements. The calculation of the CWIP allowance itself involves complex financial modeling and regulatory approval, but the underlying legal principle is the utility’s ability to earn a return on investment during the construction phase for qualifying projects. The statute does not mandate a specific percentage of CWIP to be included but rather establishes the conditions under which it can be considered and approved by the South Dakota Public Utilities Commission (SDPUC). The emphasis is on ensuring that such recovery mechanisms ultimately benefit ratepayers through improved energy reliability and cost-effectiveness, while also allowing the utility to secure financing for essential infrastructure. The process involves a formal rate case filing where the utility presents its justification for including CWIP in its rates, subject to scrutiny and approval by the SDPUC.
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Question 19 of 30
19. Question
Consider a scenario where a private energy development company proposes to construct a new 200-megawatt wind energy facility in rural South Dakota, impacting several landowners and requiring new transmission lines. Which state agency holds the primary regulatory authority for approving the siting and construction of this major energy facility, ensuring compliance with South Dakota’s energy infrastructure development laws and public interest considerations?
Correct
The South Dakota Public Utilities Commission (PUC) has broad authority over the regulation of public utilities, including those involved in the generation, transmission, and distribution of energy. When considering the siting of new energy infrastructure, such as a wind farm, the PUC’s primary role is to balance the public interest with the rights of property owners and the needs of the utility. South Dakota Codified Law (SDCL) Chapter 49-41B governs the siting of major energy facilities. This chapter outlines a comprehensive process that includes public notice, hearings, and consideration of various factors. These factors are designed to ensure that the facility is necessary, that it can be constructed and operated safely, and that its environmental and economic impacts are adequately addressed. The commission must consider factors such as the public need for the facility, the impact on the environment, the impact on local communities, the impact on agricultural land, and the availability of alternative sites. The process also involves the issuance of a certificate of need and a certificate of authority, which are distinct but often interrelated. The certificate of authority specifically addresses the physical siting and construction aspects. Therefore, in this scenario, the South Dakota PUC would be the primary regulatory body responsible for approving the siting of the proposed wind energy project, ensuring compliance with state statutes and regulations designed to protect public interest and environmental quality.
Incorrect
The South Dakota Public Utilities Commission (PUC) has broad authority over the regulation of public utilities, including those involved in the generation, transmission, and distribution of energy. When considering the siting of new energy infrastructure, such as a wind farm, the PUC’s primary role is to balance the public interest with the rights of property owners and the needs of the utility. South Dakota Codified Law (SDCL) Chapter 49-41B governs the siting of major energy facilities. This chapter outlines a comprehensive process that includes public notice, hearings, and consideration of various factors. These factors are designed to ensure that the facility is necessary, that it can be constructed and operated safely, and that its environmental and economic impacts are adequately addressed. The commission must consider factors such as the public need for the facility, the impact on the environment, the impact on local communities, the impact on agricultural land, and the availability of alternative sites. The process also involves the issuance of a certificate of need and a certificate of authority, which are distinct but often interrelated. The certificate of authority specifically addresses the physical siting and construction aspects. Therefore, in this scenario, the South Dakota PUC would be the primary regulatory body responsible for approving the siting of the proposed wind energy project, ensuring compliance with state statutes and regulations designed to protect public interest and environmental quality.
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Question 20 of 30
20. Question
A private energy development company, “Prairie Wind Solutions,” intends to construct a significant wind energy generation facility in western South Dakota. To connect this facility to the regional grid, it requires the acquisition of easements for transmission lines across several private land parcels. What is the primary regulatory prerequisite that Prairie Wind Solutions must satisfy under South Dakota law before it can initiate the process of acquiring these easements through eminent domain for the transmission infrastructure?
Correct
The South Dakota Public Utilities Commission (PUC) has broad authority over the regulation of public utilities, including those involved in the generation, transmission, and distribution of energy. When a proposed energy project, such as a new wind farm, requires the acquisition of land through eminent domain for transmission lines, the PUC’s approval process is central. South Dakota Codified Law (SDCL) Chapter 49-34A, specifically concerning the siting of energy facilities, mandates that any entity seeking to construct or operate such a facility, including the necessary transmission infrastructure, must obtain a certificate of public convenience and necessity from the PUC. This process involves demonstrating that the proposed facility is necessary for the public convenience and welfare, and that its construction and operation will serve the public interest. The PUC’s review considers various factors, including environmental impact, economic feasibility, and the impact on landowners. While private property rights are protected, SDCL 49-34A-7 grants the PUC the power to authorize the acquisition of property through eminent domain if it is deemed necessary for the public convenience and necessity. Therefore, the initial and most critical step for an energy company seeking to use eminent domain for transmission lines is to secure this certificate from the South Dakota PUC. Without this certification, the company cannot legally proceed with the acquisition of private property for such purposes under state law.
Incorrect
The South Dakota Public Utilities Commission (PUC) has broad authority over the regulation of public utilities, including those involved in the generation, transmission, and distribution of energy. When a proposed energy project, such as a new wind farm, requires the acquisition of land through eminent domain for transmission lines, the PUC’s approval process is central. South Dakota Codified Law (SDCL) Chapter 49-34A, specifically concerning the siting of energy facilities, mandates that any entity seeking to construct or operate such a facility, including the necessary transmission infrastructure, must obtain a certificate of public convenience and necessity from the PUC. This process involves demonstrating that the proposed facility is necessary for the public convenience and welfare, and that its construction and operation will serve the public interest. The PUC’s review considers various factors, including environmental impact, economic feasibility, and the impact on landowners. While private property rights are protected, SDCL 49-34A-7 grants the PUC the power to authorize the acquisition of property through eminent domain if it is deemed necessary for the public convenience and necessity. Therefore, the initial and most critical step for an energy company seeking to use eminent domain for transmission lines is to secure this certificate from the South Dakota PUC. Without this certification, the company cannot legally proceed with the acquisition of private property for such purposes under state law.
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Question 21 of 30
21. Question
Consider a scenario where “Prairie Wind Energy LLC,” a company that operated a wind farm in rural South Dakota, abruptly ceases all operations and abandons its facility, leaving behind significant site disturbance and infrastructure that requires decommissioning. The company has no remaining assets or operational capacity to address these responsibilities. Under South Dakota energy law and related environmental regulations, what is the primary mechanism available to the state to cover the costs associated with the necessary site remediation and restoration of the abandoned wind farm?
Correct
The question pertains to the regulatory framework governing the decommissioning of energy facilities in South Dakota, specifically focusing on the responsibilities of an operator when a facility ceases operations. South Dakota law, particularly statutes and administrative rules related to energy production and environmental protection, outlines procedures for site remediation and restoration. When an operator abandons a facility without fulfilling these obligations, the state may step in. South Dakota Codified Law (SDCL) Chapter 41-20, for instance, addresses the reclamation of lands disturbed by mining, which can serve as an analogous framework for energy facility decommissioning. Furthermore, the South Dakota Department of Environment and Natural Resources (DENR) administers regulations that mandate financial assurance mechanisms for decommissioning and site cleanup. These mechanisms, such as bonds or escrow accounts, are established to ensure that funds are available for the necessary environmental remediation and site restoration activities even if the operator becomes insolvent or is otherwise unable to perform these duties. The state’s ability to utilize these financial assurances is a critical component of its regulatory oversight, protecting public resources and the environment from the costs associated with abandoned energy infrastructure. Therefore, the state’s recourse is to access these pre-established financial assurances to cover the costs of remediation and restoration.
Incorrect
The question pertains to the regulatory framework governing the decommissioning of energy facilities in South Dakota, specifically focusing on the responsibilities of an operator when a facility ceases operations. South Dakota law, particularly statutes and administrative rules related to energy production and environmental protection, outlines procedures for site remediation and restoration. When an operator abandons a facility without fulfilling these obligations, the state may step in. South Dakota Codified Law (SDCL) Chapter 41-20, for instance, addresses the reclamation of lands disturbed by mining, which can serve as an analogous framework for energy facility decommissioning. Furthermore, the South Dakota Department of Environment and Natural Resources (DENR) administers regulations that mandate financial assurance mechanisms for decommissioning and site cleanup. These mechanisms, such as bonds or escrow accounts, are established to ensure that funds are available for the necessary environmental remediation and site restoration activities even if the operator becomes insolvent or is otherwise unable to perform these duties. The state’s ability to utilize these financial assurances is a critical component of its regulatory oversight, protecting public resources and the environment from the costs associated with abandoned energy infrastructure. Therefore, the state’s recourse is to access these pre-established financial assurances to cover the costs of remediation and restoration.
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Question 22 of 30
22. Question
Consider a proposed construction of a 300-megawatt solar photovoltaic facility in western South Dakota, intended to serve regional electricity demand. The developer submits an application to the South Dakota Public Utilities Commission (SDPUC) seeking the necessary approvals. According to South Dakota Codified Law, what is the primary legal framework governing the SDPUC’s review and authorization process for such a facility, and what key considerations must the commission prioritize in its decision-making?
Correct
The South Dakota Public Utilities Commission (SDPUC) has broad authority over the siting and operation of energy facilities within the state. For large-scale energy projects, such as wind farms or transmission lines, a certificate of need and a certificate of public convenience and necessity are typically required. These certificates involve a rigorous application process that includes detailed environmental impact assessments, public hearings, and consideration of economic feasibility and public benefit. South Dakota Codified Law (SDCL) Chapter 49-41B outlines the procedures for the siting of major energy facilities. This chapter mandates that any person proposing to construct or operate a major energy facility must obtain a certificate of authority from the commission. The application must demonstrate that the facility is necessary and convenient for the public, and that it will not have an undue adverse environmental impact. The commission’s review process involves evaluating the need for the facility, its economic impact, the environmental consequences, and the views of affected landowners and the public. The commission then issues a decision that may approve the application, approve it with conditions, or deny it. The core principle is balancing the need for energy infrastructure with the protection of the environment and public interest in South Dakota.
Incorrect
The South Dakota Public Utilities Commission (SDPUC) has broad authority over the siting and operation of energy facilities within the state. For large-scale energy projects, such as wind farms or transmission lines, a certificate of need and a certificate of public convenience and necessity are typically required. These certificates involve a rigorous application process that includes detailed environmental impact assessments, public hearings, and consideration of economic feasibility and public benefit. South Dakota Codified Law (SDCL) Chapter 49-41B outlines the procedures for the siting of major energy facilities. This chapter mandates that any person proposing to construct or operate a major energy facility must obtain a certificate of authority from the commission. The application must demonstrate that the facility is necessary and convenient for the public, and that it will not have an undue adverse environmental impact. The commission’s review process involves evaluating the need for the facility, its economic impact, the environmental consequences, and the views of affected landowners and the public. The commission then issues a decision that may approve the application, approve it with conditions, or deny it. The core principle is balancing the need for energy infrastructure with the protection of the environment and public interest in South Dakota.
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Question 23 of 30
23. Question
An established electric cooperative in South Dakota proposes to construct a new 115-kilovolt transmission line to enhance grid reliability in a rural county. The cooperative has submitted an application for a certificate of authority to the South Dakota Public Utilities Commission. Which of the following factors is the most critical for the Commission to consider when evaluating the public convenience and necessity for this proposed transmission line, as mandated by South Dakota Codified Law?
Correct
South Dakota Codified Law (SDCL) Chapter 49-34A, specifically addressing the regulation of energy utilities, outlines the powers and duties of the Public Utilities Commission (PUC). This chapter, along with associated administrative rules, governs the issuance of certificates of authority for electric utilities to construct or operate facilities within the state. When an electric utility proposes to construct a new transmission line, the PUC must consider various factors before granting a certificate of authority. These factors are designed to ensure that the proposed project serves the public convenience and necessity, is economically feasible, and minimizes adverse environmental and social impacts. SDCL 49-34A-57 mandates that the commission consider the public interest, including the availability of energy, the impact on the environment, the impact on local communities, and the economic feasibility of the project. The commission’s decision-making process involves a thorough review of the utility’s application, public hearings, and expert testimony. The ultimate goal is to balance the need for reliable and affordable energy with the protection of the state’s natural resources and the well-being of its citizens. The process is not merely about approving a project but about ensuring it aligns with the broader public good as defined by South Dakota statutes and regulations governing public utilities.
Incorrect
South Dakota Codified Law (SDCL) Chapter 49-34A, specifically addressing the regulation of energy utilities, outlines the powers and duties of the Public Utilities Commission (PUC). This chapter, along with associated administrative rules, governs the issuance of certificates of authority for electric utilities to construct or operate facilities within the state. When an electric utility proposes to construct a new transmission line, the PUC must consider various factors before granting a certificate of authority. These factors are designed to ensure that the proposed project serves the public convenience and necessity, is economically feasible, and minimizes adverse environmental and social impacts. SDCL 49-34A-57 mandates that the commission consider the public interest, including the availability of energy, the impact on the environment, the impact on local communities, and the economic feasibility of the project. The commission’s decision-making process involves a thorough review of the utility’s application, public hearings, and expert testimony. The ultimate goal is to balance the need for reliable and affordable energy with the protection of the state’s natural resources and the well-being of its citizens. The process is not merely about approving a project but about ensuring it aligns with the broader public good as defined by South Dakota statutes and regulations governing public utilities.
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Question 24 of 30
24. Question
A renewable energy developer proposes to construct a substantial wind farm in a rural area of western South Dakota. The project aims to supply electricity to the regional grid and requires a certificate of authority from the South Dakota Public Utilities Commission. During the application review, a key consideration for the commission involves demonstrating that the proposed facility is necessary and will serve the public interest. Which of the following best describes the primary evidentiary burden placed upon the developer to satisfy this requirement under South Dakota energy law?
Correct
The South Dakota Public Utilities Commission (SDPUC) has regulatory authority over public utilities, including those involved in the generation, transmission, and distribution of energy. When a new energy generation facility is proposed, particularly one that may have significant environmental or public impact, the SDPUC typically oversees an application and approval process. This process often involves demonstrating the need for the facility, its technical feasibility, its financial viability, and its compliance with state and federal environmental regulations. For a large-scale wind energy project in South Dakota, the developer must present evidence to the SDPUC that the project serves the public interest and meets established siting criteria. This typically involves detailed studies on wind resource assessment, environmental impact analyses (including effects on avifauna and noise levels), land use considerations, and economic benefits to the state and local communities. The commission then reviews this application, often holding public hearings to gather input from stakeholders, including landowners, local governments, and environmental groups. The final decision to grant a permit or certificate of authority hinges on whether the project aligns with the state’s energy policies and regulatory framework, ensuring it is necessary, reasonable, and in the public interest. The commission’s role is to balance the need for energy infrastructure with the protection of public health, safety, and the environment.
Incorrect
The South Dakota Public Utilities Commission (SDPUC) has regulatory authority over public utilities, including those involved in the generation, transmission, and distribution of energy. When a new energy generation facility is proposed, particularly one that may have significant environmental or public impact, the SDPUC typically oversees an application and approval process. This process often involves demonstrating the need for the facility, its technical feasibility, its financial viability, and its compliance with state and federal environmental regulations. For a large-scale wind energy project in South Dakota, the developer must present evidence to the SDPUC that the project serves the public interest and meets established siting criteria. This typically involves detailed studies on wind resource assessment, environmental impact analyses (including effects on avifauna and noise levels), land use considerations, and economic benefits to the state and local communities. The commission then reviews this application, often holding public hearings to gather input from stakeholders, including landowners, local governments, and environmental groups. The final decision to grant a permit or certificate of authority hinges on whether the project aligns with the state’s energy policies and regulatory framework, ensuring it is necessary, reasonable, and in the public interest. The commission’s role is to balance the need for energy infrastructure with the protection of public health, safety, and the environment.
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Question 25 of 30
25. Question
A utility company in South Dakota proposes to construct a new high-voltage transmission line to serve an expanding industrial park in the western part of the state. The proposed route traverses several miles of agricultural land and a small, unincorporated community. Under South Dakota Codified Law Chapter 49-34A, what is the primary regulatory hurdle the utility must overcome to legally proceed with this construction project?
Correct
South Dakota Codified Law (SDCL) Chapter 49-34A, specifically concerning the regulation of public utilities, outlines the framework for how energy providers operate within the state. This chapter addresses the authority of the South Dakota Public Utilities Commission (PUC) in matters of rates, service, and facilities. When a utility seeks to construct new transmission lines, it must demonstrate a public need and secure a certificate of public convenience and necessity. This process involves extensive review, including environmental impact assessments and consideration of alternative routes or technologies. The PUC’s decision-making is guided by principles of ensuring adequate, reliable, and reasonably priced service to the public while also considering economic feasibility and environmental stewardship. The law empowers the PUC to hold hearings, gather evidence, and issue orders that are binding on the utilities. The specific requirements for obtaining a certificate of public convenience and necessity are detailed to ensure that new infrastructure projects align with the public interest and regulatory standards of South Dakota.
Incorrect
South Dakota Codified Law (SDCL) Chapter 49-34A, specifically concerning the regulation of public utilities, outlines the framework for how energy providers operate within the state. This chapter addresses the authority of the South Dakota Public Utilities Commission (PUC) in matters of rates, service, and facilities. When a utility seeks to construct new transmission lines, it must demonstrate a public need and secure a certificate of public convenience and necessity. This process involves extensive review, including environmental impact assessments and consideration of alternative routes or technologies. The PUC’s decision-making is guided by principles of ensuring adequate, reliable, and reasonably priced service to the public while also considering economic feasibility and environmental stewardship. The law empowers the PUC to hold hearings, gather evidence, and issue orders that are binding on the utilities. The specific requirements for obtaining a certificate of public convenience and necessity are detailed to ensure that new infrastructure projects align with the public interest and regulatory standards of South Dakota.
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Question 26 of 30
26. Question
Consider a proposal by a newly formed renewable energy company, “Prairie Wind Solutions,” to construct a wind energy facility in Stanley County, South Dakota, with an installed capacity of 250 megawatts. The facility would involve the installation of approximately 75 wind turbines and associated transmission infrastructure connecting to an existing substation. Which of the following accurately describes the primary regulatory hurdle this project would face under South Dakota energy law for its physical location and operational necessity?
Correct
The South Dakota Public Utilities Commission (PUC) oversees the siting of energy generation facilities. For large-scale energy projects, such as wind farms exceeding a certain generating capacity or transmission lines of a specified voltage and length, a Certificate of Need and a Certificate of Site Compatibility are generally required. The process involves extensive public input, environmental impact assessments, and consideration of economic factors, among others. South Dakota Codified Law (SDCL) Chapter 49-41B outlines the requirements for obtaining these certificates. Specifically, SDCL 49-41B-4.1 mandates that an applicant for a site compatibility certificate must submit an application detailing the proposed site, its impact, and alternative sites. The commission then holds public hearings to gather testimony from affected landowners, local governments, and other interested parties. The decision to grant or deny a certificate is based on whether the proposed site is reasonable and necessary, considering factors like environmental protection, economic development, and public convenience and necessity. The question hinges on understanding the regulatory framework for energy facility siting in South Dakota, specifically the dual certification requirement for significant projects and the commission’s role in balancing various public interests.
Incorrect
The South Dakota Public Utilities Commission (PUC) oversees the siting of energy generation facilities. For large-scale energy projects, such as wind farms exceeding a certain generating capacity or transmission lines of a specified voltage and length, a Certificate of Need and a Certificate of Site Compatibility are generally required. The process involves extensive public input, environmental impact assessments, and consideration of economic factors, among others. South Dakota Codified Law (SDCL) Chapter 49-41B outlines the requirements for obtaining these certificates. Specifically, SDCL 49-41B-4.1 mandates that an applicant for a site compatibility certificate must submit an application detailing the proposed site, its impact, and alternative sites. The commission then holds public hearings to gather testimony from affected landowners, local governments, and other interested parties. The decision to grant or deny a certificate is based on whether the proposed site is reasonable and necessary, considering factors like environmental protection, economic development, and public convenience and necessity. The question hinges on understanding the regulatory framework for energy facility siting in South Dakota, specifically the dual certification requirement for significant projects and the commission’s role in balancing various public interests.
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Question 27 of 30
27. Question
Consider a hypothetical large-scale wind energy project proposed in Butte County, South Dakota. The developer, “Prairie Winds Energy LLC,” has submitted an application to the South Dakota Public Utilities Commission (SDPUC) for a site permit under SDCL Chapter 49-41B. During the review process, the SDPUC is evaluating whether the project aligns with the state’s energy needs and adequately mitigates potential negative environmental and community impacts. Which of the following actions by Prairie Winds Energy LLC would most directly satisfy the commission’s requirement to demonstrate that the proposed facility serves the public interest and minimizes adverse effects, as mandated by South Dakota law?
Correct
The South Dakota Public Utilities Commission (SDPUC) has specific procedures for approving the siting of major energy facilities, such as wind farms. South Dakota Codified Law (SDCL) Chapter 49-41B outlines the requirements for obtaining a certificate of need and a site permit for such facilities. This chapter mandates a comprehensive review process that includes public hearings, environmental impact assessments, and consideration of economic factors. The commission must balance the need for energy development with the protection of public health, safety, and the environment. Key considerations for the SDPUC include the facility’s impact on local communities, agricultural land, wildlife, and visual aesthetics. Furthermore, the commission evaluates the applicant’s compliance with federal and state regulations, including those related to transmission access and interconnection. The process is designed to ensure that any approved energy project serves the public interest while minimizing adverse effects. The question probes the applicant’s responsibility to demonstrate this public interest and minimal adverse impact to the commission, which is a fundamental requirement for obtaining the necessary permits under SDCL 49-41B.
Incorrect
The South Dakota Public Utilities Commission (SDPUC) has specific procedures for approving the siting of major energy facilities, such as wind farms. South Dakota Codified Law (SDCL) Chapter 49-41B outlines the requirements for obtaining a certificate of need and a site permit for such facilities. This chapter mandates a comprehensive review process that includes public hearings, environmental impact assessments, and consideration of economic factors. The commission must balance the need for energy development with the protection of public health, safety, and the environment. Key considerations for the SDPUC include the facility’s impact on local communities, agricultural land, wildlife, and visual aesthetics. Furthermore, the commission evaluates the applicant’s compliance with federal and state regulations, including those related to transmission access and interconnection. The process is designed to ensure that any approved energy project serves the public interest while minimizing adverse effects. The question probes the applicant’s responsibility to demonstrate this public interest and minimal adverse impact to the commission, which is a fundamental requirement for obtaining the necessary permits under SDCL 49-41B.
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Question 28 of 30
28. Question
Consider a scenario where Prairie Wind Energy, a South Dakota-based electric cooperative, proposes to construct a 150-mile, 345-kilovolt transmission line across several counties in western South Dakota to connect a new wind farm to the regional grid. The cooperative files an application for a Certificate of Need and Authority (CNA) with the South Dakota Public Utilities Commission (SDPUC). During the evidentiary hearing, a group of landowners and environmental advocates present testimony arguing that an alternative, shorter route utilizing existing rights-of-way would be more cost-effective and have less environmental impact. They also question the projected load growth figures used by Prairie Wind Energy to justify the new line. Which of the following accurately describes the SDPUC’s primary mandate in evaluating Prairie Wind Energy’s CNA application under South Dakota law?
Correct
The South Dakota Public Utilities Commission (SDPUC) is the primary regulatory body overseeing energy utilities in the state. When a utility proposes a significant change in its service, such as the construction of a new transmission line, it must undergo a rigorous review process. This process is designed to ensure that the proposed project is in the public interest, considering factors like economic feasibility, environmental impact, and the need for the service. South Dakota Codified Law (SDCL) Chapter 49-34A outlines the procedures for utility siting and certification, including the requirement for a Certificate of Need and Authority (CNA) for major energy facilities. The SDPUC’s role involves conducting public hearings, reviewing evidence presented by the utility and intervenors, and ultimately issuing a decision based on statutory criteria. The commission must balance the utility’s need to provide reliable service and recover costs with the public’s interest in affordable, safe, and environmentally sound energy infrastructure. The denial of a CNA would mean the utility cannot proceed with the project as proposed, requiring either modification or abandonment.
Incorrect
The South Dakota Public Utilities Commission (SDPUC) is the primary regulatory body overseeing energy utilities in the state. When a utility proposes a significant change in its service, such as the construction of a new transmission line, it must undergo a rigorous review process. This process is designed to ensure that the proposed project is in the public interest, considering factors like economic feasibility, environmental impact, and the need for the service. South Dakota Codified Law (SDCL) Chapter 49-34A outlines the procedures for utility siting and certification, including the requirement for a Certificate of Need and Authority (CNA) for major energy facilities. The SDPUC’s role involves conducting public hearings, reviewing evidence presented by the utility and intervenors, and ultimately issuing a decision based on statutory criteria. The commission must balance the utility’s need to provide reliable service and recover costs with the public’s interest in affordable, safe, and environmentally sound energy infrastructure. The denial of a CNA would mean the utility cannot proceed with the project as proposed, requiring either modification or abandonment.
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Question 29 of 30
29. Question
Consider a proposed large-scale solar energy project in western South Dakota that aims to serve regional electricity needs. The developer has submitted an application for a certificate of need and feasibility to the South Dakota Public Utilities Commission (SDPUC). During the public comment period, several local landowners expressed concerns about potential impacts on agricultural land, visual aesthetics, and the long-term decommissioning plan. Additionally, a regional transmission provider has raised questions about the project’s integration into the existing grid infrastructure and its impact on transmission reliability. Under South Dakota Codified Law Chapter 49-41B, what is the primary basis upon which the SDPUC will evaluate the project’s application for a certificate of need and feasibility?
Correct
The South Dakota Public Utilities Commission (SDPUC) has broad authority over public utilities, including those involved in energy generation, transmission, and distribution. When a new energy project, such as a wind farm, is proposed in South Dakota, it must undergo a rigorous siting and permitting process. This process is designed to balance the need for energy development with environmental protection, land use considerations, and public interest. The primary statute governing this process is South Dakota Codified Law (SDCL) Chapter 49-41B, which addresses the siting of major energy facilities. This chapter requires an applicant to file an application with the SDPUC that includes detailed information about the project’s design, environmental impact, economic feasibility, and how it will serve the public interest. The SDPUC then conducts a thorough review, which typically involves public hearings, expert testimony, and consideration of input from affected landowners, local governments, and state agencies. The commission’s decision to grant or deny a certificate of need and feasibility is based on whether the proposed facility is necessary, will be constructed and operated in a manner that minimizes adverse environmental and economic impacts, and is in the public interest. The concept of “public interest” is a crucial determinant, encompassing factors like reliable energy supply, reasonable rates, and environmental stewardship, all within the framework of South Dakota’s specific regulatory environment. The commission’s decision-making process is not merely administrative; it involves a substantive evaluation of competing interests and the overall benefit to the state.
Incorrect
The South Dakota Public Utilities Commission (SDPUC) has broad authority over public utilities, including those involved in energy generation, transmission, and distribution. When a new energy project, such as a wind farm, is proposed in South Dakota, it must undergo a rigorous siting and permitting process. This process is designed to balance the need for energy development with environmental protection, land use considerations, and public interest. The primary statute governing this process is South Dakota Codified Law (SDCL) Chapter 49-41B, which addresses the siting of major energy facilities. This chapter requires an applicant to file an application with the SDPUC that includes detailed information about the project’s design, environmental impact, economic feasibility, and how it will serve the public interest. The SDPUC then conducts a thorough review, which typically involves public hearings, expert testimony, and consideration of input from affected landowners, local governments, and state agencies. The commission’s decision to grant or deny a certificate of need and feasibility is based on whether the proposed facility is necessary, will be constructed and operated in a manner that minimizes adverse environmental and economic impacts, and is in the public interest. The concept of “public interest” is a crucial determinant, encompassing factors like reliable energy supply, reasonable rates, and environmental stewardship, all within the framework of South Dakota’s specific regulatory environment. The commission’s decision-making process is not merely administrative; it involves a substantive evaluation of competing interests and the overall benefit to the state.
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Question 30 of 30
30. Question
A renewable energy cooperative in western South Dakota plans to construct a new wind energy generation facility with an installed capacity of 150 megawatts and associated transmission lines operating at 230 kilovolts. Before breaking ground, what is the primary statutory requirement under South Dakota law that this cooperative must fulfill to legally proceed with the project?
Correct
South Dakota Codified Law (SDCL) Chapter 49-34A, concerning the regulation of public utilities, establishes the framework for how energy providers operate within the state. Specifically, SDCL 49-34A-10 addresses the requirements for obtaining a certificate of authority for certain energy facilities. This statute mandates that any person or entity proposing to construct or operate a major utility facility, defined by criteria such as generating capacity or transmission line voltage, must secure a certificate of authority from the South Dakota Public Utilities Commission (PUC). The purpose of this certification is to ensure that proposed facilities are necessary, will serve the public interest, and meet environmental and safety standards, thereby balancing the need for energy infrastructure with public welfare and environmental protection. The process involves a comprehensive review by the PUC, including public hearings and consideration of alternatives. Failure to obtain the required certificate before commencing construction or operation can result in penalties and injunctions.
Incorrect
South Dakota Codified Law (SDCL) Chapter 49-34A, concerning the regulation of public utilities, establishes the framework for how energy providers operate within the state. Specifically, SDCL 49-34A-10 addresses the requirements for obtaining a certificate of authority for certain energy facilities. This statute mandates that any person or entity proposing to construct or operate a major utility facility, defined by criteria such as generating capacity or transmission line voltage, must secure a certificate of authority from the South Dakota Public Utilities Commission (PUC). The purpose of this certification is to ensure that proposed facilities are necessary, will serve the public interest, and meet environmental and safety standards, thereby balancing the need for energy infrastructure with public welfare and environmental protection. The process involves a comprehensive review by the PUC, including public hearings and consideration of alternatives. Failure to obtain the required certificate before commencing construction or operation can result in penalties and injunctions.