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Ohio Biodiesel Laws and Incentives


State Incentives

Biofuels Retail Tax Credit

Retailers who sell E85 or biodiesel are eligible for a tax credit of $0.15 per gallon of E85 or biodiesel fuel sold using a metered pump at a fueling station in 2007, and $0.13 per gallon of E85 or biodiesel fuel sold in 2008. (Reference House Bill 119, 2007, and Ohio Revised Code 5733.48 and 5747.77)

Biodiesel Grant Program

The Department of Development is required to establish a biodiesel school bus program. Under this program, the Director of Development may make grants to school districts that use biodiesel fuel for student related transportation to help offset the incremental cost of using biodiesel fuel instead of 100% petroleum diesel fuel. (Reference House Bill 119, 2007, and Ohio Revised Code 3327.17)

Alternative Fuel and Fueling Infrastructure Grants

The Alternative Fuel Transportation Grant Program authorized $900,000 for the purchase and installation of alternative fuel fueling and blending facilities, and for the purchase and use of alternative fuel by businesses, nonprofit organizations, public school systems, and local governments. Applications for Fiscal Year 2008 funding were accepted beginning August 27, 2007, and will continue until all funds have been committed. (Reference Ohio Revised Code 122.075)

State Laws and Regulations

Regional Biofuels Promotion Plan

Ohio has joined Indiana, Iowa, Kansas, Michigan, Minnesota, South Dakota, and Wisconsin in adopting the Energy Security and Climate Stewardship Platform (Platform) (PDF 2 MB), which establishes shared goals for the Midwest region, including increased biofuels production and use. Specifically, the Platform sets the following goals:

  • Produce commercially available cellulosic ethanol and other low-carbon fuels in the region by 2012;
  • Increase E85 availability at retail fueling stations in the region to 15% of stations by 2015, 20% by 2020, and 33% of all fueling stations in the region by 2025;
  • Reduce the amount of fossil fuel that is used in the production of biofuels by 50% by 2025;
  • By 2025, at least 50% of all transportation fuels consumed by the Midwest will be from regionally produced biofuels and other low-carbon transportation fuels.

The Platform also establishes a regional biofuels corridor program. The program directs state transportation, agriculture, and regulatory officials to develop a system of coordinated signage across the region for biofuels and advanced transportation fuels and to collaborate to create regional E85 corridors. The program requires standardized fuel product coding at fueling stations as well as increased education for retailers about converting existing fueling infrastructure to dispense E85. The state transportation, agriculture, and regulatory officials are required to report their corridor implementation plans to the Midwest Governors Association by April 1, 2008.

Alternative Fuel Vehicle Conversion

Vehicle emission control systems are not to be tampered with unless the action is for the purpose of converting a motor vehicle to operate on an alternative fuel and is in compliance with the standards adopted under the Clean Air Act Amendments. (Reference Ohio Revised Code 3704.16)