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Energy in South Dakota
Following is an overview of South Dakota's consumption and production of transportation fuels, electricity, and heating fuels, as well as the mandates and initiatives that affect the state's energy supply and economy.
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Transportation fuels (gasoline and diesel fuel)
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South Dakota has no oil refineries and minimal crude oil production capacity. Fuels flow into South Dakota via pipelines. The nation's fourth-leading producer of ethanol, South Dakota has more than 15 ethanol plants, and more are in the planning phase.
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South Dakota gets 48% of its electricity from hydroelectric power. Three of the state's four largest electricity generation plants are hydroelectric, gaining their power from the Big Bend, Fort Randall, and Oahe dams. Close behind hydroelectricity is coal from neighboring Wyoming, which contributes 43% of the state's electricity.
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Natural gas, the leading source of heating fuel in South Dakota at 43%, comes into the state via pipelines. Liquefied petroleum gas (LPG), or propane, provides 22% of homes with heat, and electricity follows close behind at 20%.
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Natural gas
Electricity
Propane
Fuel oil
Other
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48%
20%
22%
7%
3%
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Source: U.S. Department of Energy,
2000 Census data
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South Dakota's existing energy mandates and incentives
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Biodiesel plant tax incentives
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Tax refunds are available to contractors for the excise, sales and use taxes paid during the construction or expansion of biodiesel plants.
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Ethanol production incentive
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An incentive payment of 20 cents per gallon is available to ethanol producers for ethanol that is fully distilled and produced in South Dakota.
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