ARTICLE 31:02
ETHANOL INFRASTRUCTURE INCENTIVE PROGRAM
Chapter
31:02:01 Ethanol Infrastructure Incentive Program.
CHAPTER 31:02:01
ETHANOL INFRASTRUCTURE INCENTIVE PROGRAM
Section
31:02:01:01 Definitions.
31:02:01:02 Eligible projects.
31:02:01:03 Other eligibility criteria.
31:02:01:04 Grant conditions.
31:02:01:05 Allocation of grant funds among classes of projects.
31:02:01:06 Application form.
31:02:01:07 Criteria for grant awards.
31:02:01:08 Default.
31:02:01:09 Remedies.
31:02:01:10 Access and reporting.
31:02:01:01. Definitions.
Terms used in this chapter mean:
(1) "Ethanol," a
blended alcohol produced by fermentation from biological materials such as
sugars, starches, and cellulosic feedstocks;
(2) "Ethanol
blend," a blended motor fuel containing ethyl alcohol of at least ninety-nine
percent purity, typically derived from agricultural products, and which is
blended exclusively with a product commonly or commercially known or sold as
gasoline;
(3) "Ethanol blender
pump," a mechanism provided by a motor fuel retail dealer for the
dispensing at retail as defined in § 10-47B-3 of ethanol blend so that the
end user may choose a particular grade of ethanol to gasoline to be dispensed;
(4) "Ethanol
infrastructure incentive program," the grant program created by SDCL 10-47B-164.1 and administered under this chapter;
(5) "Flex fuel
vehicle," a motor vehicle designed to burn either gasoline or a blend of
gasoline and up to eighty-five percent ethanol; and
(6) "GOED," the
Governor's Office of Economic Development.
Source:
38 SDR 115, effective January 9, 2012.
General
Authority: SDCL 10-47B-164.1, 10-47B-164.2.
Law
Implemented: SDCL 10-47B-164.1.
31:02:01:02. Eligible
projects. The following classes of projects are eligible to apply for
grants from the ethanol infrastructure incentive program:
(1) Class 1 -- Motor fuel
retail dealer projects for the purchase and installation of ethanol blender
pumps installed on or after September 15, 2011, or the modification of existing
ethanol blender pumps to comply with the standards set out in this chapter and
associated piping and storage systems;
(2) Class 2 -- Projects to
encourage the purchase of flex fuel vehicles in this state;
(3) Class 3 -- Projects to
encourage the increased use of ethanol in this state, including marketing or
the dissemination of informational materials in this state; and
(4) Class 4 -- Projects to
facilitate or encourage the installation of infrastructure for the distribution
of ethanol.
Source:
38 SDR 115, effective January 9, 2012.
General
Authority: SDCL 10-47B-164.1, 10-47B-164.2.
Law
Implemented: SDCL 10-47B-164.1.
31:02:01:03. Other
eligibility criteria. In addition to the criteria set out in
§ 31:02:01:01, a proposed project seeking a grant from the ethanol
infrastructure incentive program must meet the following criteria:
(1) The project shall be
physically located in this state or directed toward end users in this state;
(2) The project shall
demonstrate a likelihood that it will increase the use of ethanol in this state
or increase consumer knowledge of ethanol;
(3) If applicable, the
project shall utilize existing technologies proven to be reliable;
(4) The project shall meet
state air, water quality, and other environmental protection standards; and
(5) For projects involving
the installation of ethanol blender pumps:
(a) The ethanol
blender pump shall be of a type that does not allow for an end user to receive
an ethanol blend percentage other than that designated by the end user;
(b) The ethanol
blender pump shall provide all of the following types of ethanol blends for the
end user:
(i) A
blend of ten percent ethanol;
(ii) A
blend of fifteen percent ethanol or more; and
(ii) A
blend of twenty-five percent or more ethanol;
(c) The ethanol
blender pump shall be of a type compatible with related infrastructure,
including storage and piping systems; and
(d) The ethanol
blender pump shall comply with all applicable alternative fuel, biofuel, and
flexible fuel requirements established by law.
Source:
38 SDR 115, effective January 9, 2012.
General
Authority: SDCL 10-47B-164.1, 10-47B-164.2.
Law
Implemented: SDCL 10-47B-164.1.
31:02:01:04. Grant conditions. A grant shall be in an amount determined by GOED and made subject to the following terms:
(1) The amount of the grant may not exceed the actual cost of the project as proposed in the application;
(2) A grant shall be paid on a reimbursement basis upon satisfactory completion of the project. The grant recipient shall submit a U.S. Internal Revenue Service Form W-9 and as applicable to the project, ethanol blender pump specification, certification that installation meets Department of Agriculture and Natural Resources standards, copies of all invoices for the project, proof of payment of all project costs, lien releases from vendors and installers, and other documentation reasonably required by GOED to establish that the project has been satisfactorily completed in compliance with the provisions of this chapter;
(3) All work paid for with grant proceeds shall comply with all applicable building and housing codes and standards.
(4) Unless a written extension is granted by GOED, the project shall be completed within one hundred eighty days of notice of grant approval;
(5) The grant application and application for reimbursement shall be signed under oath;
(6) Any project that involves the installation of ethanol blender pumps, including successor owners, shall continue to sell ethanol blends in excess of fifteen percent ethanol for a minimum of twenty-four months after project completion; and
(7) Any existing pump to be replaced shall be removed and disposed of in compliance with applicable federal and state environmental protection laws.
Source: 38 SDR 115, effective January 9, 2012; SL 2021, ch 1, §§ 8, 19, effective April 19, 2021.
General Authority: SDCL 10-47B-164.1, 10-47B-164.2.
Law Implemented: SDCL 10-47B-164.1.
31:02:01:05. Allocation
of grant funds among classes of projects. GOED may allocate grant funds
among the classes of projects described in § 31:02:01:02. GOED may
designate periods of time during which it accepts applications for grants from
one or more class of projects. GOED shall publically announce that it is
accepting applications for grants and the class or classes of projects which
may be eligible for funding. GOED may not accept applications that are not
filed within the designated application time period or that relate to a class
of projects for which applications are not being accepted.
Source:
38 SDR 115, effective January 9, 2012.
General
Authority: SDCL 10-47B-164.1, 10-47B-164.2.
Law
Implemented: SDCL 10-47B-164.1.
31:02:01:06. Application
form. A grant application shall be submitted on forms provided by GOED and
shall include the following:
(1) The name, complete
mailing address, and county of the applicant;
(2) The name, title,
address, telephone number, and email address of a designated contact person for
the applicant;
(3) The amount of the grant
requested;
(4) A summary description
of the project, including its estimated cost; and
(5) The estimated date of
completion of the project.
No incomplete or inaccurate
applications may be considered. GOED may request such additional information as
necessary for it to determine eligibility and to make an award decision.
Source:
38 SDR 115, effective January 9, 2012.
General
Authority: SDCL 10-47B-164.1, 10-47B-164.2.
Law
Implemented: SDCL 10-47B-164.1.
31:02:01:07. Criteria
for grant awards. A portion of the grants to be awarded under this chapter
may be awarded on a first-come basis. Any grant not awarded on a first-come
basis shall be awarded based upon a reasonable projection of additional ethanol
blend to be sold as a result of the project and other projected benefits to the
ethanol industry in this state. At the time GOED announces that it will
entertain grant applications, GOED shall announce the amount of grant funds
available and what percentage, if any, will be awarded on a first-come basis.
Source:
38 SDR 115, effective January 9, 2012.
General
Authority: SDCL 10-47B-164.1, 10-47B-164.2.
Law
Implemented: SDCL 10-47B-164.1.
31:02:01:08. Default.
Any of the following constitutes a default upon the terms of an ethanol
infrastructure incentive program grant:
(1) Any part of a grant
application is shown to be materially false or misleading;
(2) Any part of the grant
is used for any purpose other than reimbursement for eligible project costs;
(3) The grantee fails
to commence or complete the project within the time allowed by this chapter;
(4) For projects involving
the installation of ethanol blender pumps, the grantee fails to continue to
sell ethanol blends in excess of fifteen percent ethanol for a minimum of twenty-four
months after project completion; or
(5) Repeated failure by the
grantee to provide access to facilities or documents or to provide the reports
and other information required by this chapter.
Source:
38 SDR 115, effective January 9, 2012.
General
Authority: SDCL 10-47B-164.1, 10-47B-164.2.
Law
Implemented: SDCL 10-47B-164.1.
31:02:01:09. Remedies.
If there is a default pursuant to the provisions of § 31:02:01:08, the
grantee shall repay the grant to GOED within thirty days of a written demand
from GOED. GOED may retain counsel and commence a civil action to recover any
grant funds that a grantee is required to repay. GOED may forgive a default
under this chapter if any of the following conditions are met:
(1) There are fuel
shortages that make compliance impractical;
(2) There are changes in
fuel market conditions that make compliance impractical;
(3) There are changes in
state or federal regulations that make compliance impractical.
For any grant involving the
installation of ethanol blender pumps and a default pursuant to the provisions
of subdivision 31:02:01:08(4), the amount sought to be repaid may be prorated
based upon the number of months less than twenty-four that ethanol blends were
sold.
Source:
38 SDR 115, effective January 9, 2012.
General
Authority: SDCL 10-47B-164.1, 10-47B-164.2.
Law
Implemented: SDCL 10-47B-164.1.
31:02:01:10. Access
and reporting. A grantee shall grant GOED reasonable access to the
grantee's facilities and records for the purpose of determining compliance with
the terms of the grant and of this chapter. A grantee shall provide a written
project report to GOED at least annually on forms provided by GOED. GOED may
require more frequent reports in the event of a late or an incomplete report or
a reasonable cause to believe a default has occurred.
Source:
38 SDR 115, effective January 9, 2012.
General
Authority: SDCL 10-47B-164.1, 10-47B-164.2.
Law
Implemented: SDCL 10-47B-164.1.
