S.D. passes ethanol blender pump bill

By | February 09, 2010
News release posted March 3, 2010

Sioux Falls, SD - A bill that will establish an incentive grant program for the installation of ethanol blender pumps was unanimously passed by the South Dakota Senate. House Bill 1192 uses $1 million in federal funds received through the American Recovery and Reinvestment Act of 2009. The legislation awaits a signature from Republican Gov. Mike Rounds, which is expected.

Under the legislation, grants must be issued between April 1 and May 28 and each grant may not exceed $10,000. Rep. Mitch Fargen, D-S.D., introduced the bill.

The American Coalition for Ethanol (ACE) calls the legislation a win for consumers across the state.

"We support maximum consumer choice at the pump, and this legislation will make it easier for South Dakota fuel marketers to add more renewable fuel choices for their customers," said Brian Jennings, executive vice president of ACE. "Ultimately we need to shift the power to decide what fuels motorists use away from government agencies and oil companies, and back to the consumer. Motorists should be able to choose between a variety of blends such as E10, E15, E20, E30, E85, and even ethanol-free gasoline, and we believe that when they are given meaningful choices at the pump, they will select the ethanol blends that work best in their own vehicles."

Blender pumps are not new to the fuel industry, but are finding new use with E85. Featuring two underground tanks, usually one for unleaded and one for E85, the pumps can dispense a variety of mid-level ethanol blends such as E20, E30, and E85 for use in flexible fuel vehicles.

"ACE members thank Representative Fargen for his vision and leadership on this issue, and we applaud the bipartisan leadership in the South Dakota Senate and House of Representatives for supporting and adopting this bill. We look forward to Governor Rounds signing HB 1192 into law," Jennings said.

South Dakota is home to the first ethanol blender pumps in the nation, in Britton and in Watertown. There are about 150 blender pumps located across the United States, 40 of which are in South Dakota.

For more information about ethanol or blender pumps, visit www.ethanol.org.