Alternative Fuels -- State Regulations for South Dakota

This page contains selected data from the Alternative Fuels Data Center (AFDC) at the U. S. Department of Energy. Additional details and the latest updates may be found at the AFDC summary page for South Dakota.

Fuel Use

State agency vehicles

The South Dakota Department of Transportation and employees using state diesel vehicles must stock and use fuel blends containing a minimum of 2% biodiesel (B2) that meets or exceeds the most current ASTM specification D6751, so long as it is available and financially prudent to do so. (Reference Executive Order 2006-01)

General

Definition (biodiesel)

Biodiesel is defined as a fuel comprised of mono-alkyl esters of long chain fatty acids derived from vegetable oils or animal fats. Biodiesel must meet the requirements of ASTM specification D6751 and the U.S. Environmental Protection Agency registration and health effects testing program, as it read 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)

Definition (ethanol blend)

An ethanol blend is defined as a blended motor fuel containing ethyl alcohol that is at least 99% pure, derived from agricultural products, and blended exclusively with gasoline. (Reference South Dakota Statutes 10-47B-3)

Tax (biodiesel)

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. Biodiesel must meet the requirements of ASTM specification D6751 and the U.S. Environmental Protection Agency registration and health effects testing program, as it read 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)

Tax (compressed natural gas)

CNG is taxed at a rate of $0.10 per gallon when used as a motor fuel. CNG is defined as natural gas that has been compressed for use as a motor vehicle fuel and that, for the purposes of taxation as a motor vehicle fuel, is converted to liquid gasoline gallon equivalent at the rate of 120 cubic feet of its natural service delivery line pressure in order to equal one volumetric gross gallon of gasoline. (Reference South Dakota Statutes 10-47B-3 and 10-47B-4)

Tax (ethanol, methanol)

Ethyl alcohol and methyl alcohol motor fuels are taxed at a rate of $0.08 per gallon when used as a motor fuel. Ethyl alcohol is defined as a motor fuel that is typically derived from agricultural products that have been denatured. Methyl alcohol is a motor fuel that is most commonly derived from wood products. (Reference South Dakota Statutes 10-47B-3 and 10-47B-4)

Tax (propane)

For taxation purposes, liquefied petroleum gas (propane) used as a motor vehicle fuel must be converted to gasoline gallon equivalents (GGE) using the conversion factor of 4.24 pounds per gallon of liquid at 60 degrees Fahrenheit per GGE. Propane is taxed at a rate of $0.20 per GGE. (Reference South Dakota Statutes 10-47B-3 and 10-47B-4)

Tax Exemption (propane used as vehicle fuel)

Liquefied petroleum gas (propane) is exempt from the fuel excise tax when sold from a licensed propane vendor to a licensed propane user or a propane vehicle owner if it is delivered into a bulk storage tank that can then be used to deliver fuel into a motor vehicle. Fuel purchasers must obtain a propane user license before propane is delivered into their storage tanks. (Reference South Dakota Statutes 10-47B-167)