South Dakota redeploys ethanol producer incetives to blender pumps

In South Dakota, money now used to give production incentive payments to ethanol plants will be redirected in the next five years to increase ethanol use by motorists and replenish a state economic development loan fund. The money saved would be redirected to economic development loans and grants for blender pumps and other efforts in the next five years.

Of the total, $3.5 million will be shifted into grants, mostly to install blender pumps at gas stations so people can buy fuel containing higher levels of ethanol, which is distilled largely from corn. Another $10 million, or $2 million a year, will go to the state’s Revolving Economic Development and Initiative Fund,

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