Expired, Repealed, and Archived South Dakota Incentives and Laws
The following is a list of expired, repealed, and archived incentives, laws, regulations, funding opportunities, or other initiatives related to alternative fuels and vehicles, advanced technologies, or air quality.
The South Dakota Governor’s Office of Economic Development administers the Ethanol Infrastructure Incentive Program, providing grants to offset the cost of installing ethanol blender pumps and underground storage tanks (UST) for ethanol at retail fueling stations throughout the state. Awardees may receive up to $25,000 for the installation of the station’s first blender pump, and up to $10,000 for the installation of each additional pump. Additionally, awardees may receive up to $40,000 per station for the installation of a UST that allows for the use of ethanol blender pumps. For more information, see the Ethanol Infrastructure Incentives website. This incentive expires on July 1, 2022.
(Reference South Dakota Statutes 10-47B-162 and 10-47B-164.1-164.2)
Qualified and licensed ethanol and biobutanol producers are eligible for a $0.20 per gallon production incentive for ethanol and biobutanol that is fully distilled and produced in South Dakota. Ethanol must also be denatured, 99% pure, distilled from cereal grains, and blended with gasoline to create an ethanol blend. In addition, the producer must have produced ethanol on or before December 31, 2006, to be eligible. Annual production incentives paid to one facility may not exceed $1 million. Cumulative annual production incentives paid out to all facilities may not exceed $7 million per year. Funds are apportioned each month based on the claims submitted and the total funds available. This incentive expires on July 1, 2022.
(Reference South Dakota Statutes 10-47B-162 and 10-47B-163)
The South Dakota Department of Transportation and employees using state diesel vehicles must stock and use fuel blends containing a minimum of 2% biodiesel (B2) that meets or exceeds the most current ASTM specification D6751, so long as it is available and financially prudent to do so. (Reference Executive Order 2006-01)
The South Dakota Legislature urges the U.S. Congress and federal agencies to resist implementing indirect land use change provisions that may unfairly impact biofuels production in the United States. (Reference House Concurrent Resolution 1016, 2010)
The South Dakota Legislature resolved to develop a biofuels economy in the state by investing in the development of perennial biomass crops, including switchgrass and other native grasses by supporting long-term research and development of crops and cropping systems; and providing opportunities to purchase biofuels by promoting the development of vehicles that operate on biofuels, expanding the government purchase of biofuels, and offering incentives for fueling stations offering blends of biofuels such as E85 and biodiesel blends of 20% (B20). (Reference Senate Concurrent Resolution 8, 2007)
The South Dakota Legislature supports a "25 x 25" vision in which agricultural products will provide 25% of the total energy consumed in the United States by the year 2025. (Reference House Concurrent Resolution 1010, 2008)
South Dakota has joined Indiana, Iowa, Kansas, Michigan, Minnesota, Ohio, and Wisconsin in adopting the Energy Security and Climate Stewardship Platform Plan (Platform), 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; and
- By 2025, at least 50% of all transportation fuels consumed in 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.
The South Dakota Legislature urges the U.S. Environmental Protection Agency and other appropriate federal agencies to authorize the use of ethanol blends higher than 10% (E10) in non-flexible fuel vehicles. (Reference Senate Concurrent Resolution 11, 2009)
The South Dakota Department of Tourism and State Development may provide grants to retail motor fuel dealers for the purchase or installation of ethanol blender pumps, storage systems, and related equipment. Blender pumps must dispense a blend of either 10% ethanol (E10) or the minimum blend percentage approved for all vehicles by the U.S. Environmental Protection Agency, a blend of at least 15% ethanol (E15), and E85. Blender pumps must also be manufactured to an industry standard and carry a warranty for compatibility with dispenser components and storage and piping systems. Grant applications will be accepted from March 17, 2010 through May 21, 2010. Projects must be completed and reimbursements must be requested by December 2010. For more information see the South Dakota Ethanol Blender Pump Incentive Grant Program website. (Reference House Bill 1192, 2010 and South Dakota Statutes 10-47B-3)
The following was repealed: A tax refund is available for contractors' excise taxes and sales or use taxes paid for the construction of a new agricultural processing facility, which includes an expansion to an existing soybean processing facility if the expansion will be used for the production of biodiesel. The project cost must exceed $4.5 million in order to qualify for the refund. (Reference South Dakota Statutes 10-45B)