Blender Pump Program Boosts South Dakota to Lead Nation

Monday, June 21, 2010

Source: The Madison Leader

The Flandreau lawmaker who sponsored ethanol blender pump legislation during the 2010 session believes the state's $1 million grant program will put South Dakota in the lead among the entire nation.

Mitch Fargen, D-Dist. 8, said he and other ethanol supporters have stayed busy since last winter's legislative session ended trying to coordinate efforts to have fuel stations install more blender pumps in the state.

"We're trying to maximize the money that was put into the program," Fargen said. "Our organizations have done our best to educate people -- to sit down with the operators of gasoline stations and explain the benefits that blender pumps offer."

Fargen noted that gas stations in Watertown and Britton were the first two in the nation to operate blender pumps.

"This grant program places us back into the lead for the entire country," he said.

Blender pumps allow motorists to select the amount of ethanol in their fuel -- from 10 percent up to 20, 30 and 85 percent ethanol.

The $1 million program, which was signed into law by Gov. Mike Rounds, offers grants of up to $10,000 per pump to help retail fuel dealers defray the cost of installing the equipment. The new pumps can cost up to $25,000 each.

Lt. Gov. Dennis Daugaard announced on Wednesday that the program will help install up to 100 blender pumps at 49 more fuel stations in 40 South Dakota communities. Daugaard said the additions will put the state at the front of the pack for number of blender pumps.

"As of June 1, there were 157 service stations with blender pumps in 14 states," Daugaard said. "Minnesota was in the lead with 49, and South Dakota had 42 of them."

Howard, Flandreau and Arlington are on the list of communities that will have blender pumps installed through the grant program.

Typically, fuel stations operating blender pumps use two underground tanks -- one for unleaded gasoline and another for E85 -- which dispense the E10, E20, E30 and other blends.

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