south-dakota

South Dakota

POPULATION (2015): 858,469

REGISTERED CARS & LIGHT TRUCKS: 940,581

ANNUAL GAS CONSUMPTION (2014): 450 Million GPY

TOTAL RETAIL STATIONS: 608

Maximum E85 use:97 Million GPY
FFVs in use:163,006
E85 stations:80
Flex Station implied demand:+25
Maximum E15 use:360 Million GPY
EPA approved E15 vehicles:752,464
E15 Station implied demand:+486

Fuel specifications

Gasoline:

Conventional

Reid Vapor Pressure:

Retailers throughout the state sell 9.0 psi RVP gasoline from June 1-September 15.

Contact information for key state regulatory agencies

Department of Weights and Measures, 605-773-3697

State incentives

Ethanol Infrastructure Grants
The South Dakota Governor’s Office of Economic Development administers the Ethanol Infrastructure Incentive Program, providing grants to offset the cost of installing ethanol blender pumps and underground storage tanks (UST) for ethanol at retail fueling stations throughout the state. Awardees may receive $25,000 for the first pump installed and $10,000 for each additional pump. Additionally, awardees may receive up to $30,000 per station for the installation of a UST that allows for the use of ethanol blender pumps. For eligibility requirements, application instructions, and annual program deadlines, see the Ethanol Infrastructure Incentive Program website. (South Dakota Statutes 10-47B-162 and
10-47B-164).

Ethanol Tax
Ethyl alcohol motor fuels are taxed at a rate of $0.14 per gallon when used as a motor fuel. Ethyl alcohol is defined as a motor fuel that is typically derived from agricultural products that have been denatured. (Senate Bill 1, 2015, and South Dakota Statutes
10-47B-3 and 10-47B-4)

Biofuel Franchising Contract Regulations
Franchise documents may not restrict a franchisee from participating in any of the following activities:
•    Installing a biofuel pump or tank, except property leased from
the franchisor;
•    Converting an existing tank or pump for biofuels use;
•    Advertising the sale of biofuels, including listing biofuel availability or prices on signage;
•    Selling biofuels;
•    Purchasing biofuel from other sources if the franchisor does not offer biofuel;
•    Installing or operating an ethanol blender pump, if the pump is approved for use by the appropriate jurisdictional authority; or
•    Selling a biofuel in place of one grade of gasoline, if the franchisee is required to sell three grades of gasoline.
•    Biofuels include biodiesel, biodiesel blends, ethanol, and ethanol blends. (South Dakota Statutes 37-2-34, 37-2-35, and 37-2-37)

Federal incentives

Alternative Fuel Infrastructure Tax Credit
(Originally expired 12/31/13 - retroactively extended through 12/31/16, by H.R. 2029) Fueling equipment for E85 installed between January 1, 2014, and December 31, 2016, is eligible for a tax credit of 30% of the cost, not to exceed $30,000. Station owners with multiple locations can use the credit towards each site. For more information about claiming the credit, see IRS Form 8911.

Ethanol plant direct E85/ethanol sales

Current ACE members that offer E85/direct ethanol sales in this state include:

Dakota Ethanol, LLC (Wentworth)
Todd Kruggel – RPMG,
Email: toddk@rpmgllc.com; Phone: 952-465-3227
Patrick Griffin Boyle - RPMG,
Email: pboyle@rpmgllc.com; Phone: 952-465-3234

Glacial Lakes Energy (Watertown)
Brad Brunner; Phone: 605-882-8480

Glacial Lakes Energy (Mina)
Brad Brunner; Phone: 605-882-8480

POET Biorefining-Big Stone (Big Stone City)
Craig Palmer, Ethanol Products; Phone: 316-303-3835

Redfield Energy, LLC (Redfield)
Matt Carter, EcoEnergy; Phone: 615-786-0404

Click here for a complete list of domestic ethanol producers and sales contacts for E85/direct ethanol sales

E15/Flex Fuel Profit Estimate
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South Dakota
AVG STATION (62,000 GPM)
Average Retailer:
New gallons/$$/Mo E15 & Flex: 11,400 $1,900
New Customers/Mo:+1,264 
Additional Merch. Margin from above:$3,700
RINs not applied to reduce price:$550
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TOTAL NEW PROFIT/MO  $6,150
Top Performing Retailer:
New gallons/$$/Mo E15 & Flex:27,000$4,500
New Customers/Mo:+2,998 
Additional Merch. Margin from above:$8,800
RINs not applied to reduce price:$1,500
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TOTAL NEW PROFIT/MO  $14,800

Want to see what E15/Flex fuels could do for your operation?

Try out the E15/Flex fuel profit Estimator
A Roadmap for Ethanol cover

a roadmap for ethanol

You’re thinking about adding or switching to a new fuel grade on your product slate, and you’ve considered premium and diesel, because those are the fuels all station owners consider. But today, the market is different, and you’re curious about what E15, E85, and other flex fuels could do for your business. Good move.

Download the Full Guide