Ethanol Infrastructure and Market

Development: A South Dakota Perspective

Presented by:

Hunter RobertsEnergy Policy Director

March 13, 2013

Presentation Outline

• Intro• SD Program• Do’s• Do not’s

South Dakota Program

Provide cash grants for the installation of ethanol blender pumps at retail locations

$25,000 for the first pump

$10,000 for each additional

Current program has $3.5 million over 5 years to encourage additional ethanol use.

South Dakota Ethanol Blender Pump Program Results

2010 Stimulus Program Results: 61 blender pumps installed at 29 stations with $610,000 in grants awarded

2012 South Dakota Ethanol Infrastructure Incentive Program: 26 blender pumps installed at 15 stations with $370,000 in grants paid. Department received 33 station applications requesting $1,155,000 in grants with $940,000 in available funding.

2013 South Dakota Ethanol Infrastructure Incentive Program: 6 blender pumps installed at 4 stations with $120,000 awarded thus far. Department has received 13 station applications requesting $480,000 in grants with $960,000 in available funding.

Do’s of a state blender pump program

• Do include the ethanol industry, petroleum marketers, equipment vendors and installers, and other interested parties

• Do keep it simple

• Do require UL 87A pumps, compatible infrastructure, and best practices hose configurations.

Do not's of a state blender pump program

• Do not assume people know about ethanol blender pumps and mid-level ethanol blends

• Do not presume equipment vendors to know the rules

• Do not expect installations to happen overnight

• Do not overpromise and under-deliver

Conclusion

Thank you.

Hunter RobertsEnergy Policy DirectorPhone: 605.773.3301

Email: Hunter.Roberts@state.sd.us