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update provisions related to certain large-use customers of utilities.

Large data centers in South Dakota must now notify local water providers about their water needs, install closed-loop cooling systems to limit water withdrawal to amounts set by the Water Management Board, and cannot use more water than rules allow after residential and public service needs are met. Data centers must also submit quarterly water usage reports to the board and reduce consumption during water shortages until essential uses are protected.

require that annual withdrawal of groundwater from any groundwater source may not exceed the annual recharge of water to the groundwater source.

This bill strengthens South Dakota's groundwater protection by requiring that annual groundwater withdrawals cannot exceed the annual recharge rate for any groundwater source. The change clarifies and reinforces existing law that already prohibited such over-withdrawal, with a narrow exception allowing water distribution systems to exceed recharge limits only when withdrawing from older, deeper geological formations below the Greenhorn formation.

establish a task force for the purpose of studying aquatic invasive species infestations, to make an appropriation therefor, and to declare an emergency.

South Dakota will create a new Aquatic Invasive Species Task Force made up of legislators, government officials, and representatives from environmental groups, water industries, tribes, and recreation businesses to study the ecological and economic damage caused by invasive aquatic species and recommend policy solutions to the Legislature. The bill provides funding for this task force and declares the issue an emergency, allowing for expedited action on the problem.

encouraging the review and approval of water rights applications and future use reservations from the Missouri River.

This concurrent resolution urges South Dakota's Water Management Board to prioritize reviewing and approving water rights applications and future use reservations for the Missouri River submitted by public water systems. The measure doesn't change any existing laws but rather expresses the Legislature's intent that the state should focus on securing water rights from the Missouri River to meet South Dakota's future water needs.

make an appropriation for eligible water, wastewater, storm water, and riparian buffer initiative projects and to declare an emergency.

South Dakota is allocating $10 million for water infrastructure and environmental projects: $2 million for water, wastewater, and storm water projects that must be approved by the Board of Water and Natural Resources and included in the state water plan, and $8 million for riparian buffer initiatives statewide. The bill declares an emergency so the funding takes effect immediately rather than waiting for the normal legislative process.

make appropriations for water and environmental purposes and to declare an emergency.

South Dakota allocates $1.425 million from the state water and environment fund to three water-related projects: a regional water system study, a statewide groundwater and surface water assessment with a public wetlands map, and a flood control study for the Big Sioux River near Watertown. The board overseeing these grants can now cover up to 100 percent of the non-federal costs for the water management studies, removing previous restrictions on how much state funding could support these projects.

modify the annual fee imposed on certain concentrated animal feeding operations.

Large animal farms that need water pollution control permits will pay annual fees based on the number and type of animals they operate, with rates ranging from $0.0027 per chicken to $0.60 per horse. These fees support state environmental oversight of operations that manage manure and wastewater. The bill sets specific fee amounts for dairy cows, cattle, swine, poultry, and other livestock to help fund pollution control monitoring.

protect residents from increased utility costs and utility shortages caused by data centers and clarify authority to regulate data centers.

SB 135 creates new regulations for large data centers (those using 10 megawatts or more of power) to ensure they pay the full costs of electricity and water service they consume, including costs to maintain infrastructure if they shut down or reduce operations. The bill also allows counties and municipalities to adopt their own rules limiting or prohibiting data centers in their areas, and requires data center operators to notify local water providers about their water usage plans before opening. These changes aim to prevent data centers from shifting their infrastructure costs onto other residents or causing utility shortages.

impose a moratorium on industrial dairy operations.

South Dakota would stop approving new large dairy farms or expansions of existing ones that would have more than 7,499 dairy cows, though farms already permitted before July 1, 2026 can continue operating at their current size. The pause would give state agriculture officials time to study the economic and environmental impacts of large-scale dairy operations and allow counties to update their land use rules, including requiring road maintenance agreements and larger setback distances based on farm size. The moratorium doesn't change existing state law but adds a temporary freeze on new large dairy permits.

modify the authority of a political subdivision to adopt mining ordinances.

Counties and cities (that are first or second class and have a comprehensive plan) can now adopt their own rules for sand, gravel, and aggregate mining operations, as long as those rules don't conflict with state law. However, local governments cannot require miners to post additional bonds beyond what state law already requires, and the state must verify that miners have complied with local rules before issuing state permits.

impose a one-year moratorium on the construction or expansion of hyperscale data centers.

South Dakota would temporarily ban new hyperscale data centers (large facilities that use 50 megawatts or more of electricity) from being built or expanded in the state through June 30, 2027. The moratorium also applies to smaller data centers if their expansion would make them reach hyperscale size. This one-year pause gives the state time to study the impact of these energy-intensive facilities before allowing new construction or major expansions to proceed.

revise public notice requirements for new sand, gravel, and construction aggregate mines.

Sand, gravel, and construction aggregate mine operators must now follow stricter public notification rules before starting mining operations. For smaller mines (10 acres or less, or under 25,000 tons annually), operators publish notice once at least 14 days in advance; for larger operations, they must publish three notices over a six-month period starting 180 days before mining begins, and all notices must now include specific details like dust and noise mitigation plans and the proposed future use of the mined land.

revise certain mining statutes.

HB1273 reorganizes the definitions section of South Dakota's mining laws by renumbering and clarifying key terms used in mining regulations, such as "abandoned mined lands," "affected land," "aquifer," and geographic references to the Black Hills. The bill also updates references to state agencies, changing "Department of Environment and Natural Resources" to "Department of Environment Agriculture and Natural Resources." These are technical revisions that streamline the existing mining statute without changing the core rules about mining operations themselves.