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By JOE KAFKA Associated Press Writer PIERRE, S.D. (AP) Gov. Mike Rounds has signed legislation to provide a tax break for motorists who buy biodiesel fuel.

Biodiesel is a blend of Soybean oil and diesel fuel.

The new law will reduce the current 22-cent state tax on a gallon of diesel fuel to 20 cents if it contains at least a 5 percent blend of soybean oil or other organic oil.

However, the tax break won't start until biodiesel production capacity in South Dakota reaches 20 million gallons a year.

(Copyright 2008 by The Associated Press. All Rights Reserved.) APNP 03-11-08 0838CDT | save this article / add to your favorites list