South Dakota Governor Mike Rounds is calling for a two-cents-a-gallon cut to the state’s motor fuel tax on biodiesel.

This story posted on the KMEG-TV (Sioux City, IA) web site says it’s a plan to encourage the production of biodiesel:

The governor announced the proposed tax cut today during his annual State of the State speech to open the 2008 session of the South Dakota Legislature.

The 2-cent-a-gallon cut in biodiesel would be the same as the tax break currently given to gasoline containing ethanol.

Rounds is also proposing some energy-saving measures for state government.