The South Dakota Corn Growers Utilization Council and the Ethanol Promotion and Information Council are offering gas stations $5,000 grants to put in an ethanol blender.
Blender pumps allow customers to mix E85 and unleaded gasoline to create blends of ethanol than E10. South Dakota currently has 20 stations with blender pumps and many customers report better performance and mileage and greater savings at E20 and E30 than E10.
The two groups say they will launch an advertising and public relations campaign to promote higher blends of ethanol when 25 new stations put in a blender pump.
A blender pump costs $12,000-$15,000. Station owners who install a blender pump will qualify for a 30% federal tax credit up to $30,000 and will receive a 51 cent blender credit on every gallon of pure denatured ethanol that is blended with gasoline.
"This is just the first step in a program that has the potential to go nationwide," said Reid Jensen, SDCUC president in a statement.