The list below contains summaries of all South Dakota incentives and laws related to Biodiesel.
Licensed biodiesel blenders are eligible for a tax credit for special fuel, including diesel, blended with biodiesel to create a biodiesel blend. The tax credit is granted on a per gallon basis, in the amount that the rate for special fuel exceeds the rate for the biodiesel blend. The purpose of the credit is to offset any tax liability resulting from the blending of previously untaxed biodiesel. (Reference South Dakota Statutes 10-47B-121.1)
A licensed biodiesel producer may apply for and obtain a tax refund for state fuel taxes paid on methanol used to produce biodiesel. (Reference South Dakota Statutes 10-47B-120.1)
The South Dakota Legislature urges the U.S. Congress and federal agencies to resist implementing indirect land use change provisions that may unfairly impact biofuels production in the United States. (Reference House Concurrent Resolution 1016, 2010)
The South Dakota Legislature supports a "25 x 25" vision in which agricultural products will provide 25% of the total energy consumed in the United States by the year 2025. (Reference House Concurrent Resolution 1010, 2008)
South Dakota has joined Indiana, Iowa, Kansas, Michigan, Minnesota, Ohio, and Wisconsin in adopting the Energy Security and Climate Stewardship Platform Plan (Platform), which establishes shared goals for the Midwest region, including increased biofuels production and use. Specifically, the Platform sets the following goals:
The Platform also establishes a regional biofuels corridor program. The program directs state transportation, agriculture, and regulatory officials to develop a system of coordinated signage across the region for biofuels and advanced transportation fuels and to collaborate to create regional E85 corridors. The program requires standardized fuel product coding at fueling stations as well as increased education for retailers about converting existing fueling infrastructure to dispense E85.
The South Dakota Legislature resolved to develop a biofuels economy in the state by investing in the development of perennial biomass crops, including switchgrass and other native grasses by supporting long-term research and development of crops and cropping systems; and providing opportunities to purchase biofuels by promoting the development of vehicles that operate on biofuels, expanding the government purchase of biofuels, and offering incentives for fueling stations offering blends of biofuels such as E85 and biodiesel blends of 20% (B20). (Reference Senate Concurrent Resolution 8, 2007)
The South Dakota Department of Transportation and employees using state diesel vehicles are directed to stock and use blends containing a minimum of 2% biodiesel (B2) that meets or exceeds the most current ASTM specification D6751, whenever it is available and financially prudent to do so. (Reference Executive Order 2006-01)
The South Dakota Department of Public Safety may promulgate rules establishing the following: 1) standards for the maximum volume percentages of ethanol and methanol in alcohol blended fuels; 2) a program and prescribed methods for the inspection and testing of alcohol blended fuels, petroleum products, biodiesel, and biodiesel blends; 3) labeling requirements for devices dispensing alcohol blended fuels, biodiesel, and biodiesel blends; 4) standards setting the specifications and tolerance requirements for petroleum products, biodiesel, and biodiesel blends; and 5) regulations for filtering systems used on devices dispensing alcohol blended fuels. All rules must conform to appropriate ASTM standards. (Reference South Dakota Statutes 37-2-6)
Biodiesel and biodiesel blends are taxed at the motor fuel excise tax rate of $0.22 per gallon. Beginning the fiscal quarter after which a biodiesel production facility in the state reaches a name plate capacity of at least 20 million gallons per year and fully produces at least 10 million gallons of biodiesel within one year, the tax on biodiesel and biodiesel blends is reduced to $0.20 per gallon. Biodiesel is defined as a fuel comprised of mono-alkyl esters of long chain fatty acids derived from vegetable oils or animal fats, designated B100. Biodiesel must meet the requirements of ASTM specification D6751 and the U.S. Environmental Protection Agency's registration and health effects testing program, as of January 1, 2008. Biodiesel blends are defined as blended special fuel containing a minimum of 5% biodiesel (B5). (Reference South Dakota Statutes 10-47B-3 through 10-47B-10)
Franchise documents may not restrict a franchisee from any of the following activities:
Biofuels include biodiesel, biodiesel blends, ethanol, or ethanol blends. (Reference House Bill 1216, 2011, and South Dakota Statutes 37-2-34, 37-2-35, and 37-2-37)