South Dakota's governor signed a bill into law Thursday that bans the taking of private property for building carbon dioxide pipelines, a blow to a sprawling Midwest pipeline network that ethanol producers see as key for their future.

The legislation would prohibit carbon pipeline companies from acquiring land by eminent domain. That’s the right to access private property for projects that benefit the public, with just compensation determined by a court. Eminent domain is commonly used for projects such as electrical power lines, water pipelines, oil pipelines and highways.