We have allocated $755,000 in award funding to 21 retail fuel stations for the installation of 44 ethanol blender pumps. Of those projects, at least four have been completed. Currently, the program has $955,000 in funding requests for $950,000 of funds available until June 30. An additional six projects have applied for funding but can not be awarded yet, since the final 20 percent of this year’s program funding is competitively awarded rather than on a first-come, first-served basis. The department is still accepting applications until April 30, after which the department will award the remaining Fiscal Year 2012 funds.
We plan on having another application period starting on July 2 for an additional $950,000 of funding that is available for ethanol infrastructure projects.
The Ethanol Infrastructure Incentive Program was designed to alleviate retailers across the state from costs associated with the installation of blender pumps. The State of South Dakota has allocated $3.5 million over the next five years to get the program on its feet. In 2012, $950,000 will be available for ethanol blender pumps installations at retail motor fuel stations.
A completed application that includes a ‘yes’ marked that the site does and will meet all of the South Dakota Department of Environment and Natural Resources rules and regulations. Further information on DENR requirements can be found at: http://denr.sd.gov/des/gw/tanks/PlansAndSpecifications.aspx Ethanol pumps must be installed at a retail location and:
Awardees must continue to sell ethanol blends in excess of 15 percent for a minimum of 24 months of receiving assistance, or repay grant award. GOED may forgive a failure to comply if any of the following conditions are met:
*The amount sought to be repaid may be prorated based upon the number of months less than 24 that ethanol blends were sold. Additionally, a report or reports of quantities of biofuel blends sold may be required during and after the 24 months of receiving assistance. South Dakota motor fuel retailers must agree to comply with pump removal guidelines, and dispose replaced pumps according to state law.
Funding for the grant program was made possible by a partnership between South Dakota Ethanol Producers and the State of South Dakota. During the 2011 legislative session, South Dakota Ethanol Producers agreed to a reduction in Ethanol Producer Payments while temporarily allocating a portion of their remaining Ethanol Producer Payments to the blender-pump grant program and a portion to the Revolving Economic Development Initiative fund.
Applications will be accepted starting Jan. 9, 2012. Organizations applying for the grant must submit the application form (Word) and supporting documentation to Hunter Roberts via postal mail or e-mail at: Hunter Roberts South Dakota Governor’s Office of Economic Development 711 E. Wells Ave. Pierre, SD 57501 Email: hunter.roberts@state.sd.us
Supporting documentation must include: