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South Dakota consumers choosing to fill up with biodiesel will great a break on their gas bill.

This story in the Rapid City (SD) Journal says Gov. Mike Rounds has signed into law a measure that will give a 2-cent per gallon tax break for every gallon of diesel sold with 5 percent biodiesel:

“As diesel costs continue to skyrocket, this tax break will help ease the pain at the pump for consumers while helping to develop our state’s biodiesel industry,” Rounds said in a news release. “Biodiesel is an ideal alternative to petroleum-based fuel. It will not reduce mileage, and because of its increased lubricity, it is better for the engine.”

This incentive is a little different than other states’ programs that don’t kick in until there’s a minimum of alternative fuel available. This one will end when 35 million gallons of taxed biodiesel and biodiesel blended fuel are sold after the effective date.

The Missouri State Senate has passed a biodiesel standard that would require all diesel sold in the state to contain at least 5 percent biodiesel.

This story in the St. Louis Post Dispatch says if it passes the Missouri House and gains the governor’s signature (which he has indicated he will sign it), it will be the highest biodiesel requirement in the country:

“It gets biodiesel into the fuel distribution system,” said Sen. Bill Stouffer, the bill’s sponsor. “I’m not a mandate guy, but when the competition owns the system, the only way to get it into the system is to force it.”

The move has gained the praise of the Missouri Soybean Association:

“A B5 Standard is the next step in advancing Missouri’s growing biofuels industry and we are grateful for the leadership that Senator Stouffer has provided on this important issue,” said Dale R. Ludwig, Missouri Soybean Association (MSA) Executive Director/CEO. “It is refreshing to have people who realize the important role biodiesel can play in reducing our dependency on foreign oil. Missourians can take pride in knowing that homegrown, renewable fuels, such as biodiesel, keep more dollars in the state when we spend less on petroleum-based fuels.”

If it passes, Missouri would become the sixth state to put in a biodiesel standard. Minnesota was the first, enacting a two percent standard. Louisiana, New Mexico, Oregon, and Washington also have passed biodiesel standards, but those states’ requirements have nit yet kicked in.

Biodiesel producers in Pennsylvania are in a tough spot these days, and unless the state steps in to help them, their industry could go bust by the end of the month.

This story in the Central Penn Business Journal says lawmakers are still sparring over subsidies that could help make the industry competitive again:

There are two proposals that would help the industry. One would increase subsidies and the other would mandate the blending of biodiesel into petroleum-based diesel. Both are part of Gov. Ed Rendell’s energy strategy to reduce the state’s dependence on foreign oil.

Biodiesel producers last year asked for $1 per gallon so Pennsylvania producers could be competitive with Midwest producers that already receive subsidies ranging from $1 to $1.50 per gallon, said John Cole, founding partner of United Biofuels in Manchester Township, York County.

Meanwhile, biodiesel producers say they’re down to running on fumes and loans.