Contact Info

Ethanol Flex Pump Program


  • The program awards up to $25,000 for the first pump and $10,000 for each additional pump.
  • The first $320,000 of the funding allocation EthanolBlenderPumps00005web.jpgwill be awarded on a first-come-first-serve basis. The last $80,000 in funds will be awarded competitively.
  • Funds can only be used for dispenser, 
  • associated hardware, and other fueling infrastructure and costs associated with the installation of dispenser(s) to meet requirements of the UL 87A standard for gasoline/ethanol blends up to 25 percent ethanol (E25) or gasoline/ethanol blends above 25 percent (Flex Fuel).
  • Ethanol flex pumps 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 6 months of grant approval date. A written extension may be granted by the GOED.
  • Applicants are responsible for sourcing their own vendor and installer for the project.


Ethanol flex pumps must be installed at a retail location and:
  • Dispense at retail a blend of gasoline and ethanol in the ratio selected by the purchaser;
  • Manufactured to an industry standard and carry a warranty for compatibility with dispenser components and storage and piping systems;
  • Every eligible flex pump must dispense the following three ethanol blends:
    • A 10 percent blend of ethanol;
    • A blend of 15 percent ethanol or more; and
    • A blend of 25 percent ethanol or more; and
  • Comply with all alternative fuel, biofuel, and flexible fuel requirements established by law.
  • Hoses dispensing ethanol blends (example: E-30, E-85) that are only legal for flexible fuel vehicles must be separate from hoses dispensing non-flexible fuel blends (E-0 or E-10).
Awardees must continue to sell ethanol blends in excess of 15 percent for a minimum of 24 months of receiving assistance, or repay grant award. GOED may forgive a failure to comply if any of the following conditions are met:
  • There are fuel shortages that make compliance impractical;
  • Changes in fuel market conditions that make compliance impractical;
  • Changes in state or federal regulations that make compliance impractical.
*The amount sought to be repaid may be prorated based upon the number of months less than 24 that ethanol blends were sold.

Additionally, a report or reports of quantities of biofuel blends sold may be required during and after the 24 months of receiving assistance. South Dakota motor fuel retailers must agree to comply with pump removal guidelines, and dispose replaced pumps according to state 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. 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

Supporting documentation for reimbursement request must include:
  • Completed and signed application with notary seal and signature,
  • Personal certification that the installation meets the Department of Environment and Natural Resources specifications,
  • Other appropriate documentation, and
  • Pump specifications detailing the flex pump dispenser hose configuration and the available fuel blends.

More Information

For more information on the Ethanol Infrastructure Incentive Program, please contact Paul Mehlhaff at