Gov. John Hoeven of North Dakota has approved two bills that could make the state a leader in the production of biodiesel and alternative fuels.

The two bills – SB2217 for biodiesel and SB2270 for ethanol – provide subsidies for alternative fuels, which includes money for new and existing ethanol and biodiesel plants, The Associated Press reported.

Subsidies from the new biodiesel laws will give $1.2 million to biodiesel development. A biodiesel plant is already in the planning stages near Minot, according to the Bismarck Tribune.

The ethanol bill will provide $3.28 million over two years, $1.35 million of which will go toward existing ethanol plants in Walhalla and Grafton, AP said. The remaining money will be used to fund new plants in Williston, Richardton and Underwood, the Tribune said.