South Dakota is creating a new fuel tax refund program for E15 ethanol blends (fuel containing 10.5–15% ethanol) sold by licensed fuel marketers from 2025 through 2029. Fuel retailers who sell E15 will receive annual tax refunds based on the number of gallons dispensed at their locations during the previous calendar year, with refunds prorated if program funding runs short. The rules also establish how the Governor's Office of Economic Development will administer refund applications, including a 90-day review period, and allow denied applicants to appeal through the state's formal contested case process. Existing grant programs for ethanol infrastructure projects (like blender pump installation) will continue using funds deposited before July 1, 2024, while all new deposits go exclusively toward the E15 refund program.
AI-generated from the proposed rule text — verify against the official documents.
The effect of the rules will be to implement the ethanol E15 fuel tax refund program established by the Legislature during the 2024 legislative session (SB 78, now codified as SDCL 10-47B-192).
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