The South Dakota Governor’s Office of Economic Development is now accepting applications for the installation of ethanol Flex-Pumps (ethanol blender pumps). The ethanol Flex-Pump Program will has $500,000 in Ethanol Infrastructure Incentive Program funding for the 2014 fiscal year (July 2013-June 2014). The first $400,000 of qualifying project applications will be awarded grants. The additional $100,000 portion of the program funds will be awarded on a competitive basis following the completion of the first phase of funding. Applications are now available.
The State of South Dakota has allocated $3.5 million over to get the program on its feet. In the first two years, $1,455,000 in award funding was allocated to 41 retail fuel stations for the installation of 85 ethanol Flex-Pumps. Of those projects, 23 projects have been completed and reimbursed a total of $685,000.
The Ethanol Infrastructure Incentive Program was designed to alleviate retailers across the state from costs associated with the installation of blender pumps.
Ethanol flex 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 July 2nd, 2013. Organizations applying for the grant must submit the application form and supporting documentation to Hunter Roberts via postal mail or e-mail at:
South Dakota Governor’s Office of Economic Development
711 E. Wells Ave.
Pierre, SD 57501
Supporting documentation must include: