Aeronautics Commission Awards $10 Million in South Dakota Airport Terminal Program (SDATP) Funds

Earlier this summer, the South Dakota Department of Transportation (SDDOT) launched the South Dakota Airport Terminal Program (SDATP) following the successful passage of Senate Bill 144 in the 2024 legislative session. This bill allocated $10 million in funding to support airport terminal projects across the state, representing a significant investment in enhancing South Dakota’s aviation infrastructure.

“The SDATP funds will play pivotal role in strengthening the aviation infrastructure and enhancing economic development in our state,” said Joel Jundt, Transportation Secretary. “The SDATP will help our South Dakota airports meet growing demands and improve services for residents and visitors alike.”

On Thursday, July 18, 2024, SDATP fund requests were reviewed and awarded during the regularly scheduled Aeronautics Commission meeting. Following is a list of airport facilities who were awarded SDATP funds for terminal projects.

Airport Facility and SDATP Allocation:

  • Aberdeen:  $1,2000,000
  • Hot Springs:  $27,000
  • Rapid City:  $3,047,126
  • Sioux Falls:  $2,561,801
  • Spearfish:  $1,319,073
  • Sturgis:  $210,000
  • Tea:  $735,000
  • Watertown:  $900,000

The SDATP funds are unique, as they are one-time appropriations distinct from the traditional Aeronautics Commission policies. SDATP funds are designated strictly for construction reimbursement and exclude costs related to project planning, design, and administration. Local community effort and funding were critical components for consideration.

Eligible projects for SDATP funding had to meet stringent criteria:

  • Projects must be part of the Airport Capital Improvement Plan or included in the National Plan of Integrated Airports (NPIAS) submitted yearly to the state.
  • Projects must receive federal funding through at least one year of Airport Improvement Program (AIP) federal entitlements and the Bipartisan Infrastructure Law (BIL) Airport Infrastructure Grant (AIG) allocation. This includes having submitted an application, awarded a grant, or committed to applying in the next federal funding round for federal discretionary funds.
  • Projects must not have been completed by the application deadline and must be scheduled to receive federal discretionary grants by Monday, Sept. 30, 2025, to retain eligibility.

South Dakota Airport Terminal Program Launched

The South Dakota Department of Transportation (SDDOT) has announced the launch of the South Dakota Airport Terminal Program (SDATP) following the successful passage of Senate Bill 144 in the 2024 legislative session. This bill allocated $10 million in funding to support airport terminal projects across the state, representing a significant investment in enhancing South Dakota’s aviation infrastructure.

“The SDATP funds will play pivotal role in strengthening the aviation infrastructure and enhancing economic development in our state,” said Joel Jundt, Transportation Secretary. “The SDATP will help our South Dakota airports meet growing demands and improve services for residents and visitors alike.”

The SDATP funds are unique, as they are one-time appropriations distinct from the traditional Aeronautics Commission policies. Applicants must choose between utilizing State Aeronautics Trust Funds or SDATP funds for their terminal projects. Applicants will not only need to meet eligibility requirements, but also present their grant requests to the Aeronautic Commission who will ultimately decide which projects to fund and the amount of funding to be allocated to each project.

Eligible projects for SDATP funding must meet stringent criteria:

  • Projects must be part of the Airport Capital Improvement Plan or included in the National Plan of Integrated Airports (NPIAS) submitted yearly to the state.
  • Projects must receive federal funding through at least one year of Airport Improvement Program (AIP) federal entitlements and the Bipartisan Infrastructure Law (BIL) Airport Infrastructure Grant (AIG) allocation. This includes having submitted an application, awarded a grant, or committed to applying in the next federal funding round.
  • Projects must not have been completed by the application deadline and must be scheduled to receive federal grants by Monday, Sept. 30, 2025, to retain eligibility.

SDATP funds are designated strictly for construction reimbursement and exclude costs related to project planning, design, and administration. Local community effort and funding are critical components for consideration, with priority given to projects demonstrating the following requirements:

  • A funding plan that includes two or more years of federal entitlements.
  • Receipt of federal funding beyond entitlement funding or attempts to secure such funding.
  • A funding plan where state contributions do not exceed 60% of the non-federal costs.

SDATP applications are available on the SDDOT website at https://dot.sd.gov/transportation/aviation/office-of-aeronautics-services. Applications must be submitted to the SDDOT by Monday, June 10, 2024. Applicants are required to demonstrate how local funding will supplement state contributions based on federal eligibility criteria.

For more information on the South Dakota Airport Terminal Program and the application process, please contact Jack Dokken, SDDOT Office of Air, Rail and Transit Program Manager at 605-773-7045.

SDATP applications are available athttps://dot.sd.gov/transportation/aviation/office-of-aeronautics-services

AUVSI Applauds Signing of Drone Prepared Legislation into Law in South Dakota

Last week, South Dakota Governor Kristi Noem signed Senate Bill 169 into law after its unanimous passage in the State’s Senate and 67-2 passage in the House of Representatives.

The law, which was supported by the Association for Uncrewed Vehicle Systems International (AUVSI), codifies the rights of commercial and recreational drone operators, reaffirms the authority of the Federal Aviation Authority (FAA) over air navigation and aviation safety issues, and prevents the future adoption of unnecessary laws that specifically target drone technology.

“AUVSI is proud to announce that South Dakota is ‘Drone Prepared’ and ready to welcome the benefits that widespread commercial drone operations will bring to the state,” said Elizabeth Sila, Manager of Government Affairs for AUVSI. “We are grateful for opportunities to collaborate closely with state lawmakers to educate them on the challenges and opportunities facing our industry and to support legislation that will foster a regulatory environment that enables growth for years to come.”

Drone Prepared is AUVSI’s industry-backed, multi-state initiative to help lawmakers ensure that their state or locality is ready for the benefits the future of uncrewed and autonomous flight will bring to their communities. Learn more at droneprepared.org.

Greg Klein to Be Inducted Into 2023 South Dakota Transportation Hall of Honor

Greg Klein

Greg Klein of Watertown has been chosen for induction into the South Dakota Transportation Hall of Honor for 2023. The purpose of the Transportation Hall of Honor is to recognize individuals who have made a lasting, valuable, or unique contribution to South Dakota’s air, highway, public transit, or rail transportation system. The Hall of Honor originated in 1972 and now includes 97 inductees. Klein, along with Greg Fuller will be recognized this year for their service and commitment to South Dakota’s transportation system at a Hall of Honor banquet.

Klein graduated from the Lake Area Technical College (Vo-Tech) Aviation Maintenance Program in 1977 and entered the United States Air Force as an aviation maintenance technician. He worked on a variety of military aircraft including the F4 Phantom and F15 Eagle fighter jets. While in the Air Force, he developed a passion for teaching, offering airframe and power plant maintenance courses part-time while enlisted. Greg retired from the Air Force in 1997 and returned to Lake Area Technical College in Watertown to teach aviation maintenance. Greg was also instrumental in developing the first Associate of Applied Science (AAS) degree for Lake Area Tech and the state of South Dakota in Professional Pilot training. He recently completed certification of the Drone Pilot Program at LATC and obtained the first in the state FAA authorization for Drone pilot training operations beyond line of sight.

In addition to being the aviation program director and an instructor at LATC, he is also active as a certified flight instructor authorized to teach private pilot, instrument, commercial, and glider training. In his retirement, he plans to continue to teach flight instruction at LATC and serve as a Designated Pilot Examiner (DPE) for the FAA.

Greg has been an outstanding promoter of the aviation industry and has been recognized for his contributions locally, statewide, and nationwide. Greg’s commitment to aviation, safety, education, and service throughout his forty-five plus years in the aviation industry was always given with unmatched energy and contagious enthusiasm.

Gevo Breaks Ground on Its First Commercial-Scale Sustainable Aviation Fuel Facility, Net-Zero 1, in Lake Preston, South Dakota

Gevo, Inc. has announced the groundbreaking of its first commercial-scale sustainable aviation fuel (SAF) facility, Net-Zero 1 (NZ1). Gevo’s management team was joined by government officials, representatives from partner companies and customers, business leaders, local farmers, and members of the media to ceremoniously break ground.

The NZ1 project is expected to employ 1,000 people during the construction phase with approximately 90 full-time employees once operational. The facility will be constructed on 245 acres, very favorable for producing low-carbon SAF with site preparation beginning now and official construction expected to begin in 2023.

“This is an important milestone that our team has worked hard to achieve,” said Dr. Patrick Gruber, Gevo’s Chief Executive Officer. “Building production facilities like Net-Zero 1 that will use de-fossilized energy, create a business system that rewards sustainability improvements and is equitable for all parties in the value chain is important to us. As all the elements come together, from farmers growing sustainable corn feedstock, to renewable wind power and renewable natural gas providing electricity and thermal energy for the facility, to the high-value nutrition products, corn oil, and sustainable aviation fuel leaving the gate, we expect to see our circular economy in action, increasing the sustainability of every product we make while simultaneously reducing the impact of fossil fuels.”

“South Dakota provides all the elements for success required for our first commercial facility, but we’re actively working to identify and develop our second site since we have supply offtake agreements that require additional capacity beyond Net-Zero 1,” said Dr. Chris Ryan, President and Chief Operating Officer “As we build our production capacity to meet our supply obligations, we know these projects also deliver value to local farmers and communities. We’re excited to move forward and provide that value,” added Dr. Ryan.

The associated wind energy project that will provide electricity to the facility is in development. Plans for the site also incorporate green hydrogen produced from water and renewable natural gas. Net-Zero 1 will show the world that the leading edge of the energy transition is in the heartland of America, where farmers and facility technicians come together with airline customers, investors, and many others to lead the way forward.

This project schedule is expected to allow Gevo to begin delivery of initial volumes of SAF in 2025 to fulfill a portion of existing supply agreements. Net-Zero 1 is expected to produce 55 MGPY of SAF, or 65 MGPY of total hydrocarbon volumes.

In 2023, Gevo expects to close the construction financing for the NZ1 project and begin construction of NZ1.

SDDOT Secretary Joel Jundt Named to National Transportation Research Board

Joel Jundt, South Dakota Department of Transportation (SDDOT) Secretary, will officially be welcomed as a new board member for the Transportation Research Board (TRB) during the upcoming organizational annual meeting. As part of the National Academies of Sciences, Engineering, and Medicine, the TRB provides leadership in transportation improvements and innovation in all modes of transportation. TRB stimulates research and offers research management services that promote technical excellence; provides expert advice on transportation policy and programs; and disseminates research results broadly and encourages their implementation.

Joel Jundt

Jundt will become a member of the Executive Committee which is the senior policy body for the TRB. The Executive Committee is comprised of approximately 25 members appointed by the Chair of the National Research Council of the National Academies.

Governor Kristi Noem named Jundt as Secretary of the South Dakota Department of Transportation in March 2021.

“Joel has long been respected throughout the industry and has dedicated his life to promoting transportation access and opportunity in South Dakota,” said Governor Noem. “He has proven himself to be the leader who can spearhead the future of mobility here in South Dakota.”

A native of Rapid City, Jundt graduated from South Dakota School of Mines in 1985 with a degree in civil engineering. He has been a part of the DOT for his entire career, starting as a road design engineer and working his way up to be Rapid City region and operations engineer, director of planning and engineering, and deputy secretary. He began serving as interim secretary of DOT in November 2020.

USDOT Selects Denver Air Connection to Serve Pierre

A new commercial airline will soon be flying into Pierre Regional Airport.

The USDOT announced late this afternoon that it has selected Denver Air Connection to fulfill the Essential Air Service (EAS) contract for Pierre. The two-year contract with Denver Air will begin June 1 and includes twelve weekly flights between Pierre and Denver.

“With Denver Air, we will continue to have affordable jet service,” said Pierre Mayor Steve Harding. “Our goal has always been to connect central South Dakota to the national air transportation system. You can get anywhere in the world from Denver.”

The new flight schedule isn’t available just yet. However, under the new contract, Pierre will share six flights a week with the Watertown Airport.

“We have shared flights with Watertown before,” said Harding. “Their peak season and our peak season are different.” 

Ticket prices under the Denver Air contract have not yet been announced. However, they are expected to be comparable to current ticket prices out of Pierre.

“Affordability is something the USDOT team considers when determining which airline receives an EAS contract,” said Cameron Howard, Pierre Airport Manager. “I’d expect one-way tickets to be in that $80 to $120 range.”

Howard also says that, as long as people are flying United, they shouldn’t need to go through security or recheck bags between Pierre and their final destination.

“Denver Air has an interline agreement with United,” said Howard. “If you stay on United flights you should have a seamless transition between airports.”

Pierre is currently served by SkyWest Airlines through a USDOT EAS contract that was originally scheduled to conclude in April. The USDOT has ordered SkyWest to continue service to Pierre until Denver Air can begin its contract in June.

Three airlines, Boutique Air, Denver Air Connection and SkyWest, submitted bids for the new contract.

As the contract holder, the USDOT has its own review process to determine if an airline will be selected to serve an EAS community. When awarded an EAS contract, commercial airlines receive a federal subsidy to make air service affordable in remote communities like Pierre.

South Dakota Civil Air Patrol Receives Unit Citation Award

South Dakota Civil Air Patrol has received a rare award for excellence. The Unit Citation Award, given by the organization’s national headquarters, recognized unprecedented growth and accomplishments during 2019.

In the online presentation ceremony, CAP North Central Region Commander, Col. John O’Neill, praised South Dakota CAP members. He noted that the award is rare that he has never seen one presented.

“You very clearly earned this award in 2019, but you haven’t stopped,” he said. “2020 has been a crazy year, and you in South Dakota Wing have stepped to the forefront, still, and continued this tradition.”

Among the Wing’s accomplishments in 2019:

  • Recruitment – An increase in squadrons in the Wing Aerospace
  • Education – Camps in rural and underserved communities
  • Legislative Squadron – Huge increase in membership. Nearly all 105 members of the South Dakota State Legislators are also members of the legislative squadron, as well as the growth of other units
  • Emergency Services — First wing to use sUAS (drones) in a real mission
  • Emergency Services — Developed national training standards for the use of sUAVs
  • Emergency Services — Conducted a variety of missing persons and disaster relief missions

In the last several days, the South Dakota Wing has assisted the South Dakota Department of Health with COVID-19 vaccination transport flights. Additional flights are anticipated.

South Dakota Wing has over 400 members in units in Brookings, Custer, Miller, Mitchell, Pierre, Rapid City, Sioux Falls, Spearfish, and Tea. Wing aircraft and aircrews are located in Sioux Falls, Pierre, Rapid City, Spearfish, and Brookings. The wing can deploy its six aircraft and ground teams where needed to assist in emergency response and other support to local, state, tribal, and federal agencies.

South Dakota Governor Proclaims June as “General Aviation Appreciation” Month

“General aviation in South Dakota plays a critical role with its citizens, businesses, farms and ranches, and is important to the state’s economy,” says Transportation secretary Darin Bergquist.

According to the 2010-2030 South Dakota State Aviation System Plan, the aviation industry supports over 7,000 jobs, $800 million in business sales and provides more than $250 million in wages. Agricultural aviation supports more than $10 million of income in the state, according to the same study.

The official proclamation cites the importance of general aviation to businesses and communities in the state. Given South Dakota’s geography, this service is also important for providing access to medical services, disaster relief and aerial forest fighting. Communities in the state depend on general aviation for the continued flow of visitors, tourism and commerce.

South Dakota has 71 public-use airports serving 2,333 certified pilots and 2,030 active general aviation aircraft, including a Civil Air Patrol Squadron. Organizations such as the South Dakota Pilots Association, the South Dakota Aviation Association and many others recognize and promote the interests and importance of aviation in South Dakota and throughout the world.

Aviation in South Dakota includes the airline industry, education institutions, aviation organizations and Ellsworth Air Force Base. The Department of Transportation and the Aeronautics Commission work aggressively to enhance and promote aviation in the state.

“Aviation plays a critical role in South Dakota and as a business owner and farmer, I see the value it brings to our economy for transporting goods and services,” says Aeronautics Commission chairman Eric Odenbach. “As a largely agricultural state, a strong aviation program is vital to the livelihood of the citizens of our state and I am proud to be part of a Commission that supports and fosters aviation success in South Dakota.”

Federal Grants Issued to 10 South Dakota Airports

Ten airports in South Dakota are getting $1.3 million from the U.S. Transportation Department through a program administered by the Federal Aviation Administration.
The grants go toward improvements related to airport safety, capacity, security, and environmental concerns.
Airports receiving grants are located at Belle Fourche, Britton, Custer, Vermillion, Martin, Murdo, Webster, Faulkton, Wagner and Bison Municipal.
The dollar figures range from $60,000 for the Bison Municipal Airport to $320,000 for the airport at Faulkton.
 

 

Attachment: