South Dakota Governor Approves Transfer of Hydroelectric Plant and Funding for Fish Hatchery

Rhoden signs bills to transfer Spearfish Canyon plant to nonprofit and allocate $8 million for Blue Dog State Fish Hatchery renovations.

Published on Feb. 11, 2026

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South Dakota Gov. Larry Rhoden has signed two bills - one transferring ownership of an old hydroelectric plant in Spearfish Canyon to a nonprofit, and another appropriating $8 million for construction and renovation work at the state's Blue Dog State Fish Hatchery. The governor said the moves are part of his commitment to preserving the state's outdoor resources for future generations.

Why it matters

The transfer of the Homestake Mine Hydro Electric Plant No. 2 building to the Spearfish Canyon Foundation will allow the site to be converted into an interpretive center, helping visitors learn about the area's mining and hydropower history. The funding for the Blue Dog State Fish Hatchery will support upgrades to the state's top walleye producer, which stocks millions of fish in South Dakota waterways annually.

The details

The first bill transfers ownership of the 1917 Homestake Mine Hydro Electric Plant No. 2 building from the state Department of Game, Fish and Parks to the Spearfish Canyon Foundation at no cost. The building is located near the popular Devil's Bathtub hiking trail. Supporters say the site will help educate visitors about the region's mining and hydropower history. The second bill authorizes the Department of Game, Fish and Parks to spend $8 million on construction and renovation work at the Blue Dog State Fish Hatchery. Federal funds from a tax on fishing gear and boat fuel will provide $3.5 million, while $4.5 million will come from a combination of state fishing license revenue and private donations. The hatchery project is the first affected by a new law requiring legislative approval for any Game, Fish and Parks projects exceeding $2.5 million.

  • The legislation transferring the Homestake Mine Hydro Electric Plant No. 2 building will become law on July 1, 2026.
  • The $8 million in funding for the Blue Dog State Fish Hatchery project takes effect immediately due to an emergency clause.

The players

Larry Rhoden

The governor of South Dakota who signed the bills transferring the hydroelectric plant and appropriating funds for the fish hatchery.

Spearfish Canyon Foundation

A nonprofit organization that will receive ownership of the 1917 Homestake Mine Hydro Electric Plant No. 2 building from the state.

South Dakota Department of Game, Fish and Parks

The state agency that previously owned the Homestake Mine Hydro Electric Plant No. 2 building and is responsible for the Blue Dog State Fish Hatchery.

Blue Dog State Fish Hatchery

The state's top walleye producer, which will receive $8 million in funding for construction and renovation work.

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What they’re saying

“South Dakota's outdoor beauty is part of what makes our state so great. I am committed to making sure our kids and grandkids can enjoy our great outdoors to the fullest for generations to come.”

— Larry Rhoden, Governor of South Dakota (southdakotasearchlight.com)

What’s next

The transfer of the Homestake Mine Hydro Electric Plant No. 2 building to the Spearfish Canyon Foundation will take effect on July 1, 2026. The $8 million in funding for the Blue Dog State Fish Hatchery project is immediately available due to the emergency clause in the legislation.

The takeaway

These bills demonstrate South Dakota's commitment to preserving its natural resources and outdoor recreation opportunities. The transfer of the historic hydroelectric plant to a nonprofit will allow it to be repurposed as an educational interpretive center, while the funding for the fish hatchery will support the state's efforts to maintain healthy fish populations in its lakes and waterways.