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.