The bill establishes a moratorium on the construction of carbon dioxide pipelines in South Dakota by introducing new requirements for the issuance of permits for such transmission facilities. Specifically, the commission is prohibited from granting a permit unless the Pipeline and Hazardous Materials Safety Administration has finalized safety rules for carbon dioxide pipelines, the applicant's submission complies with these rules, and any additional conditions set by the commission for public safety are met.

Furthermore, the bill includes a provision that allows for the repeal of this moratorium once the attorney general certifies to the South Dakota Code Commission that the proposed safety rules have been finalized and adopted. This creates a clear pathway for the resumption of pipeline construction contingent upon the establishment of adequate safety regulations.