Complete Story
07/02/2007
Ohio's Two Year Spending Plan Includes Money for Soy Biodiesel Distributors and Retailers
Contact:
Jamie Mossbarger
Communications Director
614-476-3100
FOR IMMEDIATE RELEASE: July 2, 2007
Ohio's Two Year Spending Plan Includes Money for Soy Biodiesel Distributors and Retailers
COLUMBUS, OH Saturday, the Ohio Soybean Council (OSC) applauded Governor Ted Strickland for including 4 million dollars in the state's biennium budget that will significantly help to build the businesses of soy biodiesel retailers and distributors. The programs include an alternative fuel tax credit, infrastructure grant program and a buy-down program for school districts to use soy biodiesel in their school buses. This also marks the most attention ever given to soy biodiesel in the state budget.
"For more than a decade OSC and the soybean checkoff have funded the research and development of soy biodiesel, and it is exciting to see the high level of confidence our state leadership has put into this alternative fuel," said Dan Corcoran, OSC chairman and Pike County soybean farmer. "These programs will greatly strengthen Ohio's soy biodiesel industry and help to increase the number of soy biodiesel blenders and retailers, and in turn continuing to strengthen Ohio soybean farmers' bottom line."
Included in the budget for the first time ever is a program that will allow soy biodiesel retailers who sell B20 (20 percent soy biodiesel and 80 percent petroleum diesel) to take advantage of a tax credit of 15 cents per gallon in 2008 and 13 cents per gallon in 2009. These credits will be paid directly to the retailer.
For retailers who do not yet sell B20 soy biodiesel, there is a program different from the tax credit that will help offset infrastructure costs. Retailers will be able to apply for a grant to assist in the installation of the necessary equipment, such as pumps and tanks. Blenders that want to begin processing B20 will be able to take advantage of the same grant program to help with their specific infrastructure needs as well.
Also included in the budget is another grant program designed specifically for soy biodiesel and its use in school buses. School districts that choose to use soy biodiesel in their buses can receive grants that will offset the incremental cost of the fuel. Currently, one of the major reasons that more school districts are not using soy biodiesel is because, on average, it costs more than petroleum diesel. Not only will the grant program give school districts a chance to use a fuel that is better for the environment and the health of students without additional cost, it will create a new marketing outlet for the soy biodiesel distributors.
"We must give credit and thanks to our sister organization, the Ohio Soybean Association (OSA) for working to get these programs implemented in the budget," said Corcoran. "Ohio soy biodiesel retailers, distributors and soybean farmers will undoubtedly benefit from the hard work and diligent attention OSA shows to legislative activities."
All of the grant programs will be administered by the Ohio Department of Development. Details regarding grant application and requirements are forthcoming, following the release of all rules and regulations.
Headquartered in Columbus, the Ohio Soybean Council is governed by a 18-member volunteer farmer board, which directs the Soybean Promotion and Research Program. The program's primary goal is to improve soybean profitability by targeting research and development projects through the investment of farmer-contributed funds.
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