Oregon Governor Ted Kulongoski has signed into law two mandates for biofuel blending in his state.

This story in the Oregonian says the package also includes tax incentives for producers and consumers:

Gasoline sold in Oregon must be 10 percent ethanol after the state’s production of ethanol reaches 40 million gallons a year. Diesel fuel sold in Oregon must be blended with two percent biodiesel when the Pacific Northwest’s production of biodiesel reaches 5 million gallons per year; the blending requirement then increases to 5 percent when annual biodiesel production reaches 15 million gallons a year.

At 50 cents per gallon of biofuel purchased, Oregonians can receive up to $200 a year in tax credits for using a gasoline blend that is at least 85 percent ethanol or biodiesel blended with a 99 percent concentration. Tax incentives also will go to producers or collectors of biofuels feedstock, including forest or agriculture-based biomass, oil seed crops, grain crops other than corn, and grass or wheat straw.

Oregon joins a growing number of states that require a blend of biofuel be sold.