Contact Info

Storage Tank Program


  • The program award is for the installation of either an underground or above-ground storage tank that allows for the appropriate use of ethanol blender pumps. Costs will be split 90% Ethanol Infrastructure grant and 10% retailer funds with a capped cost of $40,000 per tank.  Limit of one tank per location;

  • Funds can only be used for an underground or above-ground fuel storage tank and other tank fueling infrastructure;

  • Tanks must be rated for a minimum of 6,000 gallons by volume of storage;

  • Storage tank does not need to contain ethanol, provided the applicant can demonstrate that the new tank will allow for more ethanol sales at the tank location;

  • Storage tanks must be installed after GOED approval of current application to be eligible for this round of funding;

  • Funds will be provided to grantees on a reimbursement basis with proper supporting documentation (see below);

  • Projects must be completed and reimbursement must be requested within six (6) months of grant approval date.  A written extension must be granted by the GOED or unused funds will be returned to the grant pool;

  • Applicants are responsible for sourcing their own vendor and installer for the project.


Storage tank must be installed at a retail location and:

  • Become part of a system capable of dispensing at retail a blend of gasoline and ethanol in the ratio selected by the purchaser;

  • Tank must be rated for a minimum of 6,000 gallons by volume of storage;

  • Manufactured to an industry standard and carry a warranty for compatibility with storage and piping systems;

  • Aid in the requirement of the ethanol blender pump(s) program to dispense the following three ethanol blends:

    • A E10 blend of ethanol;

    • A blend of E15 or higher; and

    • A blend of E25 or higher; and

  • Comply with all alternative fuel, biofuel, and flexible fuel storage requirements established by law.

Awardees must continue to dispense the higher ethanol blends listed in the requirements through December 31, 2021, or will be required to repay the grant award.

Additionally, a report or reports of quantities of biofuel blends sold may be required through December 30, 2021.  South Dakota motor fuel retailers must agree to comply with applicable tank removal guidelines, and dispose of any replaced tanks according to applicable state and federal law.


Funding for the grant program was made possible by a partnership between South Dakota Ethanol Producers and the State of South Dakota. During the 2011 legislative session, South Dakota Ethanol Producers agreed to a reduction in Ethanol Producer Payments while temporarily allocating a portion of their remaining Ethanol Producer Payments to the blender-pump grant program and a portion to the Revolving Economic Development Initiative fund.

How To Apply

Applications are being accepted until December 31, 2016. Organizations applying for the grant must submit the application form and supporting documentation to Paul Mehlhaff via postal mail or e-mail at:
South Dakota Governor’s Office of Economic Development
711 E. Wells Ave.
Pierre, SD 57501
Following award, supporting documentation for a reimbursement request must include:

  • Completed and signed application with notary seal and signature;

  • Personal certification and evidence that the installation meets the Department of Environment and Natural Resources specifications; need DENR plans and speck approval letter;

  • Other appropriate documentation including invoices;

  • A W-9 form for the grantee; and

  • Fuel tank specifications detailing the size of the tank.

More Information

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

Paul Mehlhaff