News release posted Feb. 18, 2010

Sioux Falls, SD - The American Coalition for Ethanol (ACE) testified in front of the State Affairs Committee Feb. 18 at the South Dakota Legislature in favor of a bill that would increase consumer choice at the pump by expanding the number of ethanol blender pumps in the state.

Ron Lamberty, ACE's vice president/market development, submitted written testimony in favor of House Bill 1192, which would establish an incentive grant program for the installation of ethanol blender pumps. ACE Board member Owen Jones, a farmer-rancher from Britton, S.D., testified in front of the committee Feb. 18.

ACE has nearly 1,500 grassroots members nationwide, many in South Dakota. The group is headquartered in Sioux Falls.

"The blender pump has become a reasonable solution to the challenge of increasing the availability of
E85 and ethanol blends beyond E10," Lamberty wrote in his testimony. "In addition to the fact that blender pumps give the marketer the ability to offer those higher blends without replacing underground storage tanks and fuel lines - a huge cost savings - the pumps are used by every customer that comes to a station, which means all purchases help with the payback of the pump, making payback of the non-flex fuel portion much faster."

Lamberty has more than 25 years experience in the fuels industry, including as current owner of two gas stations/convenience stores in South Dakota. Jones' testimony will focus on his experience with blender pumps in his hometown of Britton, which is home to the first ethanol blender pump in the United States.

"With the incentives outlined in HB 1192, the State of South Dakota can play a significant role in getting the proper distribution system in place for the future of renewable fuels," Jones said. "Instead of dispensing one product, five different products can be dispensed from one pump. Another reason I am very supportive of this Bill is the fact that this legislation is not only good for the ethanol industry, but it is good for our nation. We need to rid ourselves of the addiction on foreign oil and change to a renewable fuel system which our nation controls."

The bill would create a grant program using $1 million in federal funds received through the American Recovery and Reinvestment Act of 2009. Grants must be issued between April 1 and May 28 and each grant may not exceed $10,000. Of 150 blender pumps across the nation, 40 are found in South Dakota.

Blender pumps are not new to the fuel industry, but are finding new use with E85. Featuring two underground tanks, usually one for unleaded and one for E85, the pumps can dispense a variety of mid-level ethanol blends such as E20, E30 and E85 for use in flexible fuel vehicles.

For more information about ethanol or blender pumps, visit www.ethanol.org. For more information about the bill, see ACE's Web site.