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

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.usHunter.Roberts@state.sd.us