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Ethanol Infrastructure Incentives 

The South Dakota Governor’s Office of Economic Development offers two programs under the Ethanol Infrastructure Incentives. Please follow the links below for specific information about each program.


It is the goal of the State of South Dakota to increase the availability and demand for higher ethanol blends, both with existing and newly obtained resources, to support the local ethanol infrastructure and to reduce the demand for foreign oil.  These ethanol blends will help the fueling stations across South Dakota conduct business that generates a competitive service, and will support the general welfare of the State of South Dakota and its citizens.
In September 2015, South Dakota was awarded a $1,500,000 grant from USDA’s Commodity Credit Corporation (CCC), which will be matched with state funds from the current Ethanol Infrastructure program.  The program will support blender pump costs up to $29,054 per pump, which will be broken down as follows:  69% from the federal BIP grant, 21% from the State’s Ethanol Infrastructure Incentive Program, and 10% match from the grant recipient.  Blender pump installation costs beyond $29,054 will be the sole responsibility of the grantee. 
In addition to the expanded Ethanol Blender Pump program , the Governor’s Office of Economic Development will continue to accept applications for an underground or above-ground fuel storage tank as part of the Ethanol Infrastructure Incentive Program. Applications will be accepted for installation of an underground or above-ground fuel storage tank that will support the installation or use of Ethanol Blender Pumps.  The Ethanol Blender Pump Storage Tank Program will fund 90% of the tank installation up to a capped cost of $40,000 with a 10% match requirement from the owner.  These funds are now available for any qualified project and applications will be awarded on a competitive basis.  The grant period will extend six (6) months from the time of the award letter. 

More Information

For more information on the Ethanol Infrastructure Incentive Program, please contact:

Paul Mehlhaff