Contact Info

Ethanol Flex Pump Program


  • The program will support blender pump installations up to a capped cost of $29,054 per blender pump.  The award will be broken down as follows:  69% from federal BIP grant funds, 21% from State Ethanol Infrastructure program funds, and the remaining 10% as match from the grantee.   Any per pump costs over the capped cost of $29,054 will be the responsibility of the grantee.
  • Funds awarded may only be used for blender pump fuel dispenser and associated hanging hardware and piping, as applicableEthanolBlenderPumps00005web.jpg.
  • All federal and state requirements for installation of blender pump dispenser compliance must be followed.
  • An FSA-850 environmental evaluation, or other documentation if required by USDA, must be completed and approved before installation of pumps and request for payment is received.
  • Ethanol blender 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 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.


Ethanol Blender 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 blender 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

  • Prepare an FSA-850 and/or FSA-851 environmental review, or other form as determined by GOED in consultation with USDA;

  • 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);

  • Provide site performance reporting of fuel quantities sold to GOED bi-annually through 2021;

  • Comply with any other requirements listed in the grant agreement between GOED and grantee.

Grantees must continue to sell ethanol blends in accordance with grant agreement requirements through December 31, 2021 or will be required to repay all or part of the grant award.  Requirements are subject to change upon notice from USDA or GOED. 

South Dakota motor fuel retailers must also agree to comply with applicable pump removal guidelines, and dispose of replaced pumps according to applicable state and federal law.


Funding for the grant program was made possible by a partnership between United States Department of Agriculture, Commodity Credit Corporation, 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 now until February 15, 2016 for the first award cycle. Additional application round deadlines will be April 15, 2016 and June 15, 2016 if required.  Those applying for the blender pump grant must submit the application form (we are currently working on updating the application form. It will be available soon) 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;
  • Other appropriate documentation including all invoices;
  • A W-9 form for the grantee; 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