S.D. offers grants for blender pumps

By Erin Voegele | July 09, 2013

South Dakota is making funds available to support the installation of blender pumps. The Governor’s Office of Economic Development has announced the state’s Ethanol Infrastructure Incentive Program has kicked off its third round of funding, with $500,000 allocated to the program for fiscal year 2014. 

The program provides grants to retail stations that wish to install blender pumps to provide customers with the ability to select their desired blends of gasoline and ethanol. According to the GOED, the program has supported the installation of blender pumps at 51 locations within the state. Currently, 75 retail gas stations in South Dakota offer ethanol blends through blender pumps. 

Funding for the program is made possible by a partnership between the South Dakota Ethanol Producers and the State of South Dakota. Up to $25,000 is available to support the installation of a station’s first blender pump, with up to $10,000 for each additional pump. 

According to program guidelines, the grant funds can be used to cover the cost of the dispenser, associated hardware and other tank fueling infrastructure. To be eligible, blender pumps must be installed at a retail location. Each dispenser must dispense E10, a blend of E15 or greater, and a blend of E25 or greater. Awardees must continue to sell blends in excess of 15 percent for at least 24 months after receiving the award, or repay the grant. Funds are provided to grantees on a reimbursement basis with proper supporting documentation. 

“This program is great for the ethanol industry in South Dakota,” said Pat Costello, commissioner of the GOED. “As motorists continue to fuel up for the summer travel season, ethanol blends will continue to offer a variety of cost-conscious options.” 

Additional information on the program can be found here. www.sdreadytowork.com/blenderpumps.aspx