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South Dakota: New Law Makes $1 Million Available for Ethanol Infrastructure

A bill that will allow $1 million to retailers in the State of South Dakota to install ethanol blender pumps has passed legislation.  House Bill 1192 will use funds through the American Recovery and Reinvestment Act of 2009.

The legislation will make up to $10,000 available to owners and operators of fueling facilities to install blends of ethanol up to E85. Stations are allowed to use more than $10,000 if installing more than one blender pump, but must be used between April 1 and May 28.

As first reported by the South Dakota Corn Growers Association, Owen Jones, a farmer and rancher from Britton, South Dakota said:

With the incentives outlined in HB 1192, the State of South Dakota can play a significant role in getting the proper distribution system in place for the future of renewable fuels. Instead of dispensing one product, five different products can be dispensed from one pump. Another reason I am very supportive of this Bill is the fact that this legislation is not only good for the ethanol industry, but it is good for our nation. We need to rid ourselves of the addiction on foreign oil and change to a renewable fuel system which our nation controls.

South Dakota has joined Indiana, Iowa, Kansas, Michigan, Minnesota, Ohio, and Wisconsin in adopting the Energy Security and Climate Stewardship Platform Plan (Platform) (PDF 2 MB), which establishes shared goals for the Midwest region, including increased biofuels production and use.  Specifically, the Platform sets the following goals:

  • Produce commercially available cellulosic ethanol and other low-carbon fuels in the region by 2012;
  • Increase E85 availability at retail fueling stations in the region to 15% of stations by 2015, 20% by 2020, and 33% of all fueling stations in the region by 2025;
  • Reduce the amount of fossil fuel that is used in the production of biofuels by 50% by 2025;
  • By 2025, at least 50% of all transportation fuels consumed by the Midwest will be from regionally produced biofuels and other low-carbon transportation fuels.

The Platform also establishes a regional biofuels corridor program.  The program directs state transportation, agriculture, and regulatory officials to develop a system of coordinated signage across the region for biofuels and advanced transportation fuels and to collaborate to create regional E85 corridors.  The program requires standardized fuel product coding at fueling stations as well as increased education for retailers about converting existing fueling infrastructure to dispense E85.

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