Ethanol Infrastructure and Market Development: A South Dakota Perspective

1. Ethanol Infrastructure and Market Development: A South Dakota Perspective March 13, 2013 Presented by: Hunter Roberts Energy Policy Director

2. Presentation Outline • Intro • SD Program • Do’s • Do not’s

3. 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.

4. 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.

6. 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.

7. 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

8. Conclusion Thank you. Hunter Roberts Energy Policy Director Phone: 605.773.3301 Email: Hunter.Roberts@state.sd.us