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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.

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.

prohibit natural asset companies.

This bill creates a new state law prohibiting South Dakota from doing business with or investing money in "natural asset companies"—businesses that buy rights to manage natural resources like soil, water quality, and biodiversity for profit. The ban prevents these companies from gaining any interest in or control over public lands or state resources, and blocks the state from investing its money in such companies.

create the water infrastructure development fund, to provide an appropriation, to provide for the awarding of grants and loans from the fund for certain rural water projects and to declare an emergency.

South Dakota is creating a new Water Infrastructure Development Fund that will provide grants (up to 10% of project costs) and loans (up to 50% of project costs) to help rural communities build water infrastructure projects. The state is putting $3 million into this fund from its general budget, and the Board of Water and Natural Resources will decide which projects qualify for support and set the terms for loans and grants.

supporting congressional authorization for, and federal participation in, major rural water supply projects identified by the South Dakota Association of Rural Water Systems.

This concurrent resolution expresses South Dakota's support for federal funding and congressional approval of four major regional water supply projects designed to serve rural areas across the state: the Dakota Mainstem, Western Dakota, Lewis and Clark, and Water Investment in Northern South Dakota systems. The resolution does not change state law itself, but instead urges Congress and federal agencies to authorize and fund these projects to address long-term water supply challenges in various regions of South Dakota.

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.

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.

update certain citations to federal regulations regarding pipeline safety inspections.

HB 1027 updates South Dakota's pipeline safety law to reference the current version of federal pipeline safety regulations as they exist on January 1, 2026. The bill ensures that state pipeline inspection requirements stay aligned with the latest federal standards, so South Dakota's regulations don't become outdated as federal rules change.

provide for prescribed burning of state-owned land by a person owning adjoining land and to declare an emergency.

Landowners with property adjacent to state-owned land along the Missouri River can now conduct prescribed burns on the state land if they get written permission from the appropriate state department official, as long as the burn is meant to control woody plants and manage grassland. The landowner must describe the land to be burned and provide a timeline, maintain firefighting equipment, follow all existing burning laws, and accept full liability for any damages—with the state having immunity from lawsuits related to the burn.