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Panel Approves Ethanol Blender Pump Incentives in South Dakota

December 20, 2011

Consumers are the winners under a new rule passed today by the South Dakota State Legislature’s Interim Rules Review Committee, according to South Dakota Farmers Union (SDFU) President Doug Sombke. The panel voted to give fuel retailers the chance to apply for grants to offset the cost of installing ethanol blender pumps. The pumps, which cost about $10,000 more than a traditional gasoline pump, dispense fuel with blends from E10 (10 percent ethanol), to E20, E30, and higher up to an E85 blend.

“Farmers Union has long been a champion for increasing the number of blender pumps in the state, and I’m glad that our elected leaders are beginning to realize the benefits they can provide,” Sombke said. “We’ve worked for over a decade to educate retailers and consumers about blender pumps, and it’s great to hear the policies are being put into place to get more blender pumps in the marketplace. Consumers are the real winners here; they’ll have more choices at the pump. We’re confident that an increasing number of them will choose cleaner burning ethanol.”

The new program will also eventually provide incentives for consumers to buy more flex-fuel vehicles which can burn higher levels of ethanol like E30, E50, and E85, along with the traditional E10 which can be burned in any vehicle.

“This new rule will put two of the major pieces into place that we need to increase the use of ethanol,” Sombke said. “We need more retailers to sell ethanol, and we need more vehicles on the road that can burn it. This program will help increase both. In the end, we hope this will increase the market for the corn our farmers raise, create jobs in our rural communities and help the environment by allowing more consumers to burn cleaner fuel.”

To read a draft of the rule CLICK HERE.

Last Modified: 12-20-2011-14:53:50

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