By Leah Douglas WASHINGTON (Reuters) -Regulators in South Dakota on Tuesday denied Summit Carbon Solutions' permit application to run about 700 miles (1126 km) of its carbon dioxide pipeline through the state,

South Dakota regulators say Summit Carbon Solutions will need to reapply for a permit application to build a carbon dioxide pipeline. The decision is another setback for the multi-state project.

South Dakota lawmakers passed an eminent domain ban for carbon capture pipelines in March that made Summit’s planned route difficult, commissioners agreed. After Tuesday’s decision, Summit said it will refile its application with a reduced route in South Dakota to satisfy landowners and ethanol plant partners.