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| To amend sections 125.831, 3317.022, 5733.98, and | 1 |
| 5747.98 and to enact sections 125.834, 125.835, | 2 |
| 125.836, 901.14, 3327.17, 3704.121, 3704.20, | 3 |
| 3704.30 to 3704.34, 5501.18, 5733.47, 5733.48, | 4 |
| 5735.40, 5747.76, and 5747.77 of the Revised Code | 5 |
| to require that half of all motor vehicles | 6 |
| purchased for state agency fleets be capable of | 7 |
| using alternative fuels; to require that state | 8 |
| agencies procuring vehicles give preference to | 9 |
| qualified bidders who supply vehicles that use | 10 |
| Ohio corn-based ethanol or Ohio soybean-based | 11 |
| biodiesel fuel; to allow the Department of | 12 |
| Administrative Services to sell or trade credits | 13 |
| generated by the acquisition of alternative fueled | 14 |
| vehicles under the federal "Energy Policy Act of | 15 |
| 1992"; to establish an alternative fuel | 16 |
| transportation grant program for the purchase and | 17 |
| installation of alternative fuel refueling | 18 |
| facilities and the purchase of certain grades of | 19 |
| ethanol or biodiesel; to authorize city, local, or | 20 |
| exempted village school districts to purchase | 21 |
| biodiesel for the operation of school buses and | 22 |
| receive a subsidy from the Department of Education | 23 |
| for such purchase; to require that diesel fuel | 24 |
| contain at least two per cent biodiesel under | 25 |
| certain circumstances; to authorize the Director | 26 |
| of Environmental Protection to require the use of | 27 |
| clean alternative fuel in covered fleet vehicles | 28 |
| in counties identified as severe non-attainment | 29 |
| for ozone under the federal Clean Air Act | 30 |
| Amendments; to establish a local government | 31 |
| vehicular fleet alternative fuel revolving loan | 32 |
| program administered by the Director; to require | 33 |
| that part of the Department of Transportation's | 34 |
| vehicle fleet and heavy equipment that operates on | 35 |
| diesel fuel use biodiesel; to prohibit political | 36 |
| subdivisions from levying taxes on alternative | 37 |
| fuel; and to authorize tax credits against | 38 |
| corporation franchise and income tax liability for | 39 |
| selling ethanol blended gasoline and for | 40 |
| installing E85 fuel pumps. | 41 |
| Section 1. That sections 125.831, 3317.022, 5733.98, and | 42 |
| 5747.98 be amended and sections 125.834, 125.835, 125.836, 901.14, | 43 |
| 3327.17, 3704.121, 3704.20, 3704.30, 3704.31, 3704.32, 3704.33, | 44 |
| 3704.34, 5501.18, 5733.47, 5733.48, 5735.40, 5747.76, and 5747.77 | 45 |
| of the Revised Code be enacted to read as follows: | 46 |
| Sec. 125.831. As used in sections 125.831 to | 47 |
| of the Revised Code: | 48 |
| (A) "Alternative fuel" means any of the following fuels used | 49 |
| in a motor vehicle: | 50 |
| (1) Any alcohol fuel containing eighty-five per cent or more | 51 |
| of alcohol or containing any other percentage of not less than | 52 |
| seventy per cent of alcohol if the United States department of | 53 |
| energy determines, by rule, that the lower percentage is necessary | 54 |
| to provide for the requirements of cold start, safety, or vehicle | 55 |
| functions; | 56 |
| (2) Any fuel other than alcohol fuel that is derived from | 57 |
| biological materials, when designated by the United States | 58 |
| department of energy as an alternative fuel; | 59 |
| (3) Natural gas; | 60 |
| (4) Liquefied petroleum gas; | 61 |
| (5) Hydrogen; | 62 |
| (6) Any power source, including electricity; | 63 |
| (7) Any fuel not described in divisions (A)(1) to (6) of this | 64 |
| section that the United States department of energy determines, by | 65 |
| final rule, to be substantially not petroleum, and that would | 66 |
| yield substantial energy security and environmental benefits. | 67 |
| (B) "Law enforcement officer" means an officer, agent, or | 68 |
| employee of a state agency upon whom, by statute, a duty to | 69 |
| conserve the peace or to enforce all or certain laws is imposed | 70 |
| and the authority to arrest violators is conferred, within the | 71 |
| limits of that statutory duty and authority. | 72 |
| | 73 |
| passenger van, sport utility vehicle, or pickup truck with a gross | 74 |
| vehicle weight of under twelve thousand pounds. | 75 |
| (2) "Motor vehicle" does not include any vehicle described in | 76 |
| division | 77 |
| enforcement officer and law enforcement agency or any vehicle that | 78 |
| is so described and that is equipped with specialized equipment | 79 |
| that is not normally found in such a vehicle and that is used to | 80 |
| carry out a state agency's specific and specialized duties and | 81 |
| responsibilities. | 82 |
| | 83 |
| mobile radios with no capabilities other than voice communication, | 84 |
| exterior and interior lights, or roof-mounted caution lights. | 85 |
| | 86 |
| agency established by the laws of the state for the exercise of | 87 |
| any function of state government, other than any state-supported | 88 |
| institution of higher education, the office of the governor, | 89 |
| lieutenant governor, auditor of state, treasurer of state, | 90 |
| secretary of state, or attorney general, the general assembly or | 91 |
| any legislative agency, or the courts or any judicial agency. | 92 |
| Sec. 125.834. (A) The following entities shall ensure that | 93 |
| at least seventy-five per cent of the new motor vehicles they | 94 |
| acquire during the two-year period beginning July 1, 2006, and | 95 |
| ending June 30, 2008, and during each two-year period beginning on | 96 |
| the first day of July thereafter, are capable of using alternative | 97 |
| fuels: | 98 |
| (1) The department of administrative services; | 99 |
| (2) Each state agency that has been delegated fleet | 100 |
| management duties under division (G)(1) of section 125.832 of the | 101 |
| Revised Code and that manages a fleet of more than fifteen motor | 102 |
| vehicles. | 103 |
| (B)(1) If the department of administrative services or a | 104 |
| state agency described in division (A)(2) of this section exceeds | 105 |
| the percentage specified in division (A) of this section in its | 106 |
| purchase or lease of motor vehicles during any two-year period | 107 |
| described in that division, the excess purchases or leases shall | 108 |
| be credited to any future two-year period the department or state | 109 |
| agency designates. | 110 |
| (2) If the department or such a state agency fails to satisfy | 111 |
| the percentage specified in division (A) of this section in its | 112 |
| purchase or lease of motor vehicles during any two-year period | 113 |
| described in that division, the department or state agency shall | 114 |
| not purchase or lease any motor vehicles that are incapable of | 115 |
| using alternative fuels during any subsequent two-year period | 116 |
| until the department or state agency satisfies that percentage | 117 |
| deficiency, unless one or more of the following applies: | 118 |
| (a) The department or state agency will be operating its | 119 |
| motor vehicles primarily in an area in which it or its fuel | 120 |
| supplier does not have and cannot reasonably be expected to have a | 121 |
| central refueling station for alternative fuels. | 122 |
| (b) The department or state agency is unable to acquire or | 123 |
| operate motor vehicles within the cost limitations described in | 124 |
| division (D) of this section. | 125 |
| (c) The use of alternative fuels would not meet the energy | 126 |
| conservation and exhaust emissions criteria described in division | 127 |
| (D) of this section. | 128 |
| (C) Between July 1, 2006, and June 30, 2007, at least thirty | 129 |
| per cent of the fuel purchased for use in fleets of state-owned | 130 |
| motor vehicles shall be alternative fuels. Between July 1, 2007, | 131 |
| and June 30, 2008, at least fifty per cent of such fuel purchased | 132 |
| shall be alternative fuels. Beginning July 1, 2008, and each | 133 |
| fiscal year thereafter, at least seventy-five per cent of such | 134 |
| fuel purchased between the first day of July and the thirtieth day | 135 |
| of June of the following year shall be alternative fuels. | 136 |
| (D) The director of administrative services shall adopt and | 137 |
| may amend, in accordance with Chapter 119. of the Revised Code, | 138 |
| rules that establish cost limitations for the acquisition and | 139 |
| operation of, and energy conservation and exhaust emissions | 140 |
| criteria for, motor vehicles capable of using alternative fuels. | 141 |
| Sec. 125.835. (A) As used in this section: | 142 |
| (1) "Biodiesel" has the same meaning as in section 3704.121 | 143 |
| of the Revised Code. | 144 |
| (2) "Ethanol" has the same meaning as in section 5733.46 of | 145 |
| the Revised Code. | 146 |
| (3) "Law enforcement officer" has the same meaning as in | 147 |
| section 125.831 of the Revised Code. | 148 |
| (4) "State agency" has the same meaning as in section 125.831 | 149 |
| of the Revised Code, but includes any state-supported institution | 150 |
| of higher education. | 151 |
| (5) "Vehicle" means any automobile, automobile truck, | 152 |
| tractor, or self-propelled vehicle not operated or driven on fixed | 153 |
| rails or track, but does not include a vehicle operated by a law | 154 |
| enforcement officer. | 155 |
| (B) In awarding any contract that requires the procurement of | 156 |
| vehicles, a state agency shall give preference to an otherwise | 157 |
| qualified bidder who will fulfill the contract through the use of | 158 |
| vehicles that use as a fuel component ethanol produced from Ohio | 159 |
| corn or biodiesel produced from Ohio soybeans or Ohio corn. | 160 |
| Sec. 125.836. (A) As used in this section: | 161 |
| (1) "Biodiesel" and "diesel fuel" have the same meanings as | 162 |
| in section 3704.121 of the Revised Code. | 163 |
| (2) "Credit" means a credit generated by the acquisition of | 164 |
| alternative fueled vehicles in accordance with the "Energy Policy | 165 |
| Act of 1992," 106 Stat. 2897, 42 U.S.C. 13257. | 166 |
| (3) "Incremental cost" has the same meaning as in section | 167 |
| 5501.18 of the Revised Code. | 168 |
| (B) The department of administrative services shall establish | 169 |
| and administer a credit banking and selling program. The | 170 |
| department may sell or trade credits in accordance with procedures | 171 |
| established pursuant to the "Energy Policy Act of 1992," 106 Stat. | 172 |
| 2897, 42 U.S.C. 13258. | 173 |
| (C) There is hereby created in the state treasury the | 174 |
| "biodiesel revolving fund," into which shall be deposited moneys | 175 |
| received from the sale of credits under this section, any moneys | 176 |
| appropriated to the fund by the general assembly, and any other | 177 |
| moneys obtained or accepted by the department for deposit into the | 178 |
| fund. Moneys deposited into the fund shall be used to pay for the | 179 |
| incremental cost of biodiesel for use in vehicles owned or leased | 180 |
| by the state that use diesel fuel. | 181 |
| Sec. 901.14. (A) As used in this section: | 182 |
| (1) "Alternative fuel" means blended biodiesel or blended | 183 |
| gasoline. | 184 |
| (2) "Biodiesel" has the same meaning as in section 3704.121 | 185 |
| of the Revised Code. | 186 |
| (3) "Diesel fuel" and "gasoline" have the same meanings as in | 187 |
| section 5735.01 of the Revised Code. | 188 |
| (4) "Ethanol" has the same meaning as in section 5733.46 of | 189 |
| the Revised Code. | 190 |
| (5) "Blended biodiesel" means diesel fuel containing at least | 191 |
| twenty per cent biodiesel by volume. | 192 |
| (6) "Blended gasoline" means gasoline containing at least | 193 |
| eighty-five per cent ethanol by volume. | 194 |
| (7) "Incremental cost" means either of the following: | 195 |
| (a) The difference in cost between blended gasoline and | 196 |
| gasoline containing ten per cent or less ethanol at the time that | 197 |
| the blended gasoline is purchased; | 198 |
| (b) The difference in cost between blended biodiesel and | 199 |
| diesel fuel containing two per cent or less biodiesel at the time | 200 |
| that the blended biodiesel is purchased. | 201 |
| (B) For the purpose of improving the air quality in this | 202 |
| state, the director of agriculture shall establish an alternative | 203 |
| fuel transportation grant program under which the director may | 204 |
| make grants to businesses, nonprofit organizations, public school | 205 |
| systems, or local governments for the purchase and installation of | 206 |
| alternative fuel refueling facilities and for the purchase and use | 207 |
| of alternative fuel. | 208 |
| (C) The director shall adopt rules in accordance with Chapter | 209 |
| 119. of the Revised Code that are necessary for the administration | 210 |
| of the alternative fuel transportation grant program. The rules | 211 |
| shall establish at least all of the following: | 212 |
| (1) An application form and procedures governing the | 213 |
| application process for a grant under the program; | 214 |
| (2) A procedure for prioritizing the award of grants under | 215 |
| the program; | 216 |
| (3) A requirement that the maximum grant for the purchase and | 217 |
| installation of an alternative fuel refueling facility be fifty | 218 |
| per cent of the cost of the facility; | 219 |
| (4) A requirement that the maximum grant for the purchase of | 220 |
| alternative fuel be fifty per cent of the incremental cost of the | 221 |
| fuel; | 222 |
| (5) Any other criteria, procedures, or guidelines that the | 223 |
| director determines are necessary to administer the program. | 224 |
| (D) There is hereby created in the state treasury the | 225 |
| alternative fuel transportation grant fund. The fund shall consist | 226 |
| of money that is received from direct payments in lieu of excise | 227 |
| credits for alcohol fuels under the "American Jobs Creation Act of | 228 |
| 2004," Pub. L. No. 108-357. Money in the fund shall be used to | 229 |
| make grants under the alternative fuel transportation grant | 230 |
| program and by the director in the administration of that program. | 231 |
| Sec. 3317.022. (A)(1) The department of education shall | 232 |
| compute and distribute state base cost funding to each school | 233 |
| district for the fiscal year in accordance with the following | 234 |
| formula, making any adjustment required by division (A)(2) of this | 235 |
| section and using the information obtained under section 3317.021 | 236 |
| of the Revised Code in the calendar year in which the fiscal year | 237 |
| begins. | 238 |
| Compute the following for each eligible district: | 239 |
| 240 |
| 241 |
| 242 |
| 243 |
| If the difference obtained is a negative number, the | 244 |
| district's computation shall be zero. | 245 |
| (2)(a) For each school district for which the tax exempt | 246 |
| value of the district equals or exceeds twenty-five per cent of | 247 |
| the potential value of the district, the department of education | 248 |
| shall calculate the difference between the district's tax exempt | 249 |
| value and twenty-five per cent of the district's potential value. | 250 |
| (b) For each school district to which division (A)(2)(a) of | 251 |
| this section applies, the department shall adjust the recognized | 252 |
| valuation used in the calculation under division (A)(1) of this | 253 |
| section by subtracting from it the amount calculated under | 254 |
| division (A)(2)(a) of this section. | 255 |
| (B) As used in this section: | 256 |
| (1) The "total special education weight" for a district means | 257 |
| the sum of the following amounts: | 258 |
| (a) The district's category one special education ADM | 259 |
| multiplied by the multiple specified in division (A) of section | 260 |
| 3317.013 of the Revised Code; | 261 |
| (b) The district's category two special education ADM | 262 |
| multiplied by the multiple specified in division (B) of section | 263 |
| 3317.013 of the Revised Code; | 264 |
| (c) The district's category three special education ADM | 265 |
| multiplied by the multiple specified in division (C) of section | 266 |
| 3317.013 of the Revised Code; | 267 |
| (d) The district's category four special education ADM | 268 |
| multiplied by the multiple specified in division (D) of section | 269 |
| 3317.013 of the Revised Code; | 270 |
| (e) The district's category five special education ADM | 271 |
| multiplied by the multiple specified in division (E) of section | 272 |
| 3317.013 of the Revised Code; | 273 |
| (f) The district's category six special education ADM | 274 |
| multiplied by the multiple specified in division (F) of section | 275 |
| 3317.013 of the Revised Code. | 276 |
| (2) "State share percentage" means the percentage calculated | 277 |
| for a district as follows: | 278 |
| (a) Calculate the state base cost funding amount for the | 279 |
| district for the fiscal year under division (A) of this section. | 280 |
| If the district would not receive any state base cost funding for | 281 |
| that year under that division, the district's state share | 282 |
| percentage is zero. | 283 |
| (b) If the district would receive state base cost funding | 284 |
| under that division, divide that amount by an amount equal to the | 285 |
| following: | 286 |
| 287 |
| 288 |
| 289 |
| The resultant number is the district's state share | 290 |
| percentage. | 291 |
| (3) "Related services" includes: | 292 |
| (a) Child study, special education supervisors and | 293 |
| coordinators, speech and hearing services, adaptive physical | 294 |
| development services, occupational or physical therapy, teacher | 295 |
| assistants for handicapped children whose handicaps are described | 296 |
| in division (B) of section 3317.013 or division (F)(3) of section | 297 |
| 3317.02 of the Revised Code, behavioral intervention, interpreter | 298 |
| services, work study, nursing services, and specialized | 299 |
| integrative services as those terms are defined by the department; | 300 |
| (b) Speech and language services provided to any student with | 301 |
| a handicap, including any student whose primary or only handicap | 302 |
| is a speech and language handicap; | 303 |
| (c) Any related service not specifically covered by other | 304 |
| state funds but specified in federal law, including but not | 305 |
| limited to, audiology and school psychological services; | 306 |
| (d) Any service included in units funded under former | 307 |
| division (O)(1) of section 3317.023 of the Revised Code; | 308 |
| (e) Any other related service needed by handicapped children | 309 |
| in accordance with their individualized education plans. | 310 |
| (4) The "total vocational education weight" for a district | 311 |
| means the sum of the following amounts: | 312 |
| (a) The district's category one vocational education ADM | 313 |
| multiplied by the multiple specified in division (A) of section | 314 |
| 3317.014 of the Revised Code; | 315 |
| (b) The district's category two vocational education ADM | 316 |
| multiplied by the multiple specified in division (B) of section | 317 |
| 3317.014 of the Revised Code. | 318 |
| (C)(1) The department shall compute and distribute state | 319 |
| special education and related services additional weighted costs | 320 |
| funds to each school district in accordance with the following | 321 |
| formula: | 322 |
| 323 |
| 324 |
| 325 |
| 326 |
| (2) The attributed local share of special education and | 327 |
| related services additional weighted costs equals: | 328 |
| 329 |
| 330 |
| 331 |
| (3)(a) The department shall compute and pay in accordance | 332 |
| with this division additional state aid to school districts for | 333 |
| students in categories two through six special education ADM. If a | 334 |
| district's costs for the fiscal year for a student in its | 335 |
| categories two through six special education ADM exceed the | 336 |
| threshold catastrophic cost for serving the student, the district | 337 |
| may submit to the superintendent of public instruction | 338 |
| documentation, as prescribed by the superintendent, of all its | 339 |
| costs for that student. Upon submission of documentation for a | 340 |
| student of the type and in the manner prescribed, the department | 341 |
| shall pay to the district an amount equal to the sum of the | 342 |
| following: | 343 |
| (i) One-half of the district's costs for the student in | 344 |
| excess of the threshold catastrophic cost; | 345 |
| (ii) The product of one-half of the district's costs for the | 346 |
| student in excess of the threshold catastrophic cost multiplied by | 347 |
| the district's state share percentage. | 348 |
| (b) For purposes of division (C)(3)(a) of this section, the | 349 |
| threshold catastrophic cost for serving a student equals: | 350 |
| (i) For a student in the school district's category two, | 351 |
| three, four, or five special education ADM, twenty-five thousand | 352 |
| dollars in fiscal year 2002 and twenty-five thousand seven hundred | 353 |
| dollars in fiscal years 2003, 2004, and 2005; | 354 |
| (ii) For a student in the district's category six special | 355 |
| education ADM, thirty thousand dollars in fiscal year 2002 and | 356 |
| thirty thousand eight hundred forty dollars in fiscal years 2003, | 357 |
| 2004, and 2005. | 358 |
| (c) The district shall only report under division (C)(3)(a) | 359 |
| of this section, and the department shall only pay for, the costs | 360 |
| of educational expenses and the related services provided to the | 361 |
| student in accordance with the student's individualized education | 362 |
| program. Any legal fees, court costs, or other costs associated | 363 |
| with any cause of action relating to the student may not be | 364 |
| included in the amount. | 365 |
| (4)(a) As used in this division, the "personnel allowance" | 366 |
| means thirty thousand dollars in fiscal years 2002, 2003, 2004, | 367 |
| and 2005. | 368 |
| (b) For the provision of speech language pathology services | 369 |
| to students, including students who do not have individualized | 370 |
| education programs prepared for them under Chapter 3323. of the | 371 |
| Revised Code, and for no other purpose, the department of | 372 |
| education shall pay each school district an amount calculated | 373 |
| under the following formula: | 374 |
| 375 |
| 376 |
| (5) In any fiscal year, a school district shall spend for | 377 |
| purposes that the department designates as approved for special | 378 |
| education and related services expenses at least the amount | 379 |
| calculated as follows: | 380 |
| 381 |
| 382 |
| 383 | |
| 384 |
| The purposes approved by the department for special education | 385 |
| expenses shall include, but shall not be limited to, | 386 |
| identification of handicapped children, compliance with state | 387 |
| rules governing the education of handicapped children and | 388 |
| prescribing the continuum of program options for handicapped | 389 |
| children, provision of speech language pathology services, and the | 390 |
| portion of the school district's overall administrative and | 391 |
| overhead costs that are attributable to the district's special | 392 |
| education student population. | 393 |
| The department shall require school districts to report data | 394 |
| annually to allow for monitoring compliance with division (C)(5) | 395 |
| of this section. The department shall annually report to the | 396 |
| governor and the general assembly the amount of money spent by | 397 |
| each school district for special education and related services. | 398 |
| (6) In any fiscal year, a school district shall spend for the | 399 |
| provision of speech language pathology services not less than the | 400 |
| sum of the amount calculated under division (C)(1) of this section | 401 |
| for the students in the district's category one special education | 402 |
| ADM and the amount calculated under division (C)(4) of this | 403 |
| section. | 404 |
| (D)(1) As used in this division: | 405 |
| (a) "Daily bus miles per student" equals the number of bus | 406 |
| miles traveled per day, divided by transportation base. | 407 |
| (b) "Transportation base" equals total student count as | 408 |
| defined in section 3301.011 of the Revised Code, minus the number | 409 |
| of students enrolled in preschool handicapped units, plus the | 410 |
| number of nonpublic school students included in transportation | 411 |
| ADM. | 412 |
| (c) "Transported student percentage" equals transportation | 413 |
| ADM divided by transportation base. | 414 |
| (d) "Transportation cost per student" equals total operating | 415 |
| costs for board-owned or contractor-operated school buses divided | 416 |
| by transportation base. | 417 |
| (2) Analysis of student transportation cost data has resulted | 418 |
| in a finding that an average efficient transportation use cost per | 419 |
| student can be calculated by means of a regression formula that | 420 |
| has as its two independent variables the number of daily bus miles | 421 |
| per student and the transported student percentage. For fiscal | 422 |
| year 1998 transportation cost data, the average efficient | 423 |
| transportation use cost per student is expressed as follows: | 424 |
| 425 |
| 426 |
| The department of education shall annually determine the | 427 |
| average efficient transportation use cost per student in | 428 |
| accordance with the principles stated in division (D)(2) of this | 429 |
| section, updating the intercept and regression coefficients of the | 430 |
| regression formula modeled in this division, based on an annual | 431 |
| statewide analysis of each school district's daily bus miles per | 432 |
| student, transported student percentage, and transportation cost | 433 |
| per student data. The department shall conduct the annual update | 434 |
| using data, including daily bus miles per student, transported | 435 |
| student percentage, and transportation cost per student data, from | 436 |
| the prior fiscal year. The department shall notify the office of | 437 |
| budget and management of such update by the fifteenth day of | 438 |
| February of each year. | 439 |
| (3) In addition to funds paid under divisions (A), (C), and | 440 |
| (E) of this section, each district with a transported student | 441 |
| percentage greater than zero shall receive a payment equal to a | 442 |
| percentage of the product of the district's transportation base | 443 |
| from the prior fiscal year times the annually updated average | 444 |
| efficient transportation use cost per student, times an inflation | 445 |
| factor of two and eight tenths per cent to account for the | 446 |
| one-year difference between the data used in updating the formula | 447 |
| and calculating the payment and the year in which the payment is | 448 |
| made. The percentage shall be the following percentage of that | 449 |
| product specified for the corresponding fiscal year: | 450 |
| FISCAL YEAR | PERCENTAGE | 451 | |||
| 2000 | 52.5% | 452 | |||
| 2001 | 55% | 453 | |||
| 2002 | 57.5% | 454 | |||
| 2003 and thereafter | The greater of 60% or the district's state share percentage | 455 |
| The payments made under division (D)(3) of this section each | 456 |
| year shall be calculated based on all of the same prior year's | 457 |
| data used to update the formula. | 458 |
| (4) In addition to funds paid under divisions (D)(2) and (3) | 459 |
| of this section, a school district shall receive a rough road | 460 |
| subsidy if both of the following apply: | 461 |
| (a) Its county rough road percentage is higher than the | 462 |
| statewide rough road percentage, as those terms are defined in | 463 |
| division (D)(5) of this section; | 464 |
| (b) Its district student density is lower than the statewide | 465 |
| student density, as those terms are defined in that division. | 466 |
| (5) The rough road subsidy paid to each district meeting the | 467 |
| qualifications of division (D)(4) of this section shall be | 468 |
| calculated in accordance with the following formula: | 469 |
| 470 |
| 471 |
| where: | 472 |
| (a) "Per rough mile subsidy" equals the amount calculated in | 473 |
| accordance with the following formula: | 474 |
| 475 |
| 476 |
| 477 |
| (i) "Maximum rough road percentage" means the highest county | 478 |
| rough road percentage in the state. | 479 |
| (ii) "County rough road percentage" equals the percentage of | 480 |
| the mileage of state, municipal, county, and township roads that | 481 |
| is rated by the department of transportation as type A, B, C, E2, | 482 |
| or F in the county in which the school district is located or, if | 483 |
| the district is located in more than one county, the county to | 484 |
| which it is assigned for purposes of determining its | 485 |
| cost-of-doing-business factor. | 486 |
| (iii) "Statewide rough road percentage" means the percentage | 487 |
| of the statewide total mileage of state, municipal, county, and | 488 |
| township roads that is rated as type A, B, C, E2, or F by the | 489 |
| department of transportation. | 490 |
| (b) "Total rough road miles" means a school district's total | 491 |
| bus miles traveled in one year times its county rough road | 492 |
| percentage. | 493 |
| (c) "Density multiplier" means a figure calculated in | 494 |
| accordance with the following formula: | 495 |
| 496 |
| 497 |
| 498 |
| (i) "Minimum student density" means the lowest district | 499 |
| student density in the state. | 500 |
| (ii) "District student density" means a school district's | 501 |
| transportation base divided by the number of square miles in the | 502 |
| district. | 503 |
| (iii) "Statewide student density" means the sum of the | 504 |
| transportation bases for all school districts divided by the sum | 505 |
| of the square miles in all school districts. | 506 |
| (6) In addition to funds paid under divisions (D)(2) to (5) | 507 |
| of this section, each district shall receive in accordance with | 508 |
| rules adopted by the state board of education a payment for | 509 |
| students transported by means other than board-owned or | 510 |
| contractor-operated buses and whose transportation is not funded | 511 |
| under division (J) of section 3317.024 of the Revised Code. The | 512 |
| rules shall include provisions for school district reporting of | 513 |
| such students. | 514 |
| (7) In addition to funds paid under divisions (D)(2) to (6) | 515 |
| of this section, the department annually shall pay each district | 516 |
| to which division (C) of section 3327.17 of the Revised Code | 517 |
| applies a subsidy equal to the difference between (a) the actual | 518 |
| total cost of the diesel fuel purchased by the district from the | 519 |
| eligible agricultural cooperative or a retailer or distributor for | 520 |
| that cooperative during the fiscal year and (b) the number of | 521 |
| gallons of diesel fuel purchased by the district from the eligible | 522 |
| agricultural cooperative or a retailer or distributor for that | 523 |
| cooperative during the fiscal year times the average statewide | 524 |
| cost for the fiscal year of a gallon of diesel fuel that contains | 525 |
| no biodiesel. If the difference obtained is a negative number, the | 526 |
| district's subsidy shall be zero. No payments shall be made under | 527 |
| division (D)(7) of this section for fiscal years beginning on or | 528 |
| after July 1, 2012. | 529 |
| (E)(1) The department shall compute and distribute state | 530 |
| vocational education additional weighted costs funds to each | 531 |
| school district in accordance with the following formula: | 532 |
| 533 |
| 534 |
| 535 |
| In any fiscal year, a school district receiving funds under | 536 |
| division (E)(1) of this section shall spend those funds only for | 537 |
| the purposes that the department designates as approved for | 538 |
| vocational education expenses. Vocational educational expenses | 539 |
| approved by the department shall include only expenses connected | 540 |
| to the delivery of career-technical programming to | 541 |
| career-technical students. The department shall require the school | 542 |
| district to report data annually so that the department may | 543 |
| monitor the district's compliance with the requirements regarding | 544 |
| the manner in which funding received under division (E)(1) of this | 545 |
| section may be spent. | 546 |
| (2) The department shall compute for each school district | 547 |
| state funds for vocational education associated services in | 548 |
| accordance with the following formula: | 549 |
| 550 |
| 551 |
| 552 |
| In any fiscal year, a school district receiving funds under | 553 |
| division (E)(2) of this section, or through a transfer of funds | 554 |
| pursuant to division (L) of section 3317.023 of the Revised Code, | 555 |
| shall spend those funds only for the purposes that the department | 556 |
| designates as approved for vocational education associated | 557 |
| services expenses, which may include such purposes as | 558 |
| apprenticeship coordinators, coordinators for other vocational | 559 |
| education services, vocational evaluation, and other purposes | 560 |
| designated by the department. The department may deny payment | 561 |
| under division (E)(2) of this section to any district that the | 562 |
| department determines is not operating those services or is using | 563 |
| funds paid under division (E)(2) of this section, or through a | 564 |
| transfer of funds pursuant to division (L) of section 3317.023 of | 565 |
| the Revised Code, for other purposes. | 566 |
| (F) The actual local share in any fiscal year for the | 567 |
| combination of special education and related services additional | 568 |
| weighted costs funding calculated under division (C)(1) of this | 569 |
| section, transportation funding calculated under divisions (D)(2) | 570 |
| and (3) of this section, and vocational education and associated | 571 |
| services additional weighted costs funding calculated under | 572 |
| divisions (E)(1) and (2) of this section shall not exceed for any | 573 |
| school district the product of three and three-tenths mills times | 574 |
| the district's recognized valuation. The department annually shall | 575 |
| pay each school district as an excess cost supplement any amount | 576 |
| by which the sum of the district's attributed local shares for | 577 |
| that funding exceeds that product. For purposes of calculating the | 578 |
| excess cost supplement: | 579 |
| (1) The attributed local share for special education and | 580 |
| related services additional weighted costs funding is the amount | 581 |
| specified in division (C)(2) of this section. | 582 |
| (2) The attributed local share of transportation funding | 583 |
| equals the difference of the total amount calculated for the | 584 |
| district using the formula developed under division (D)(2) of this | 585 |
| section minus the actual amount paid to the district after | 586 |
| applying the percentage specified in division (D)(3) of this | 587 |
| section. | 588 |
| (3) The attributed local share of vocational education and | 589 |
| associated services additional weighted costs funding is the | 590 |
| amount determined as follows: | 591 |
| 592 |
| 593 |
| 594 |
| Sec. 3327.17. Notwithstanding division (D) of section 3311.19 | 595 |
| and division (D) of section 3311.52 of the Revised Code, this | 596 |
| section does not apply to any joint vocational or cooperative | 597 |
| education school district. | 598 |
| (A) As used in this section and in division (D)(7) of section | 599 |
| 3317.022 of the Revised Code: | 600 |
| (1) "Agricultural cooperative" has the same meaning as in | 601 |
| section 1729.01 of the Revised Code. | 602 |
| (2) "Biodiesel" and "diesel fuel" have the same meanings as | 603 |
| in section 3704.121 of the Revised Code. | 604 |
| (3) "Development facility" means a facility that produces a | 605 |
| good derived from an agricultural commodity. | 606 |
| (4) "Renewable fuel production facility" means a facility | 607 |
| that produces an energy source derived from a renewable, | 608 |
| domestically grown organic compound and capable of powering | 609 |
| machinery, including an engine. | 610 |
| (5) "Eligible agricultural cooperative" means an agricultural | 611 |
| cooperative formed for the purpose of operating a development | 612 |
| facility or a renewable fuel production facility. | 613 |
| (B) Any city, local, or exempted village school district may | 614 |
| enter into a contract with an eligible agricultural cooperative or | 615 |
| a retailer or distributor for that cooperative to purchase diesel | 616 |
| fuel that contains twenty per cent or greater of biodiesel by | 617 |
| volume for the operation of the district's school buses. | 618 |
| (C) Any district that enters into a contract pursuant to | 619 |
| division (B) of this section shall submit a copy of the contract | 620 |
| to the department of education. The department annually shall pay | 621 |
| the subsidy calculated under division (D)(7) of section 3317.022 | 622 |
| of the Revised Code to the district for the duration of the | 623 |
| contract, but not after the time designated in that division. | 624 |
| Sec. 3704.121. (A) As used in this section: | 625 |
| (1) "Biodiesel" means a mono-alkyl ester combustible liquid | 626 |
| fuel that is derived from vegetable oils or animal fats, or any | 627 |
| combination of those reagents, and that meets American society for | 628 |
| testing and materials specification D6751-03a for biodiesel fuel | 629 |
| (B100) blend stock distillate fuels. | 630 |
| (2) "Diesel fuel" means any liquid fuel that is capable of | 631 |
| use in discrete form or as a blend component in the operation of | 632 |
| engines of the diesel type. | 633 |
| (B) On and after June 30, 2007, no person shall sell any | 634 |
| diesel fuel in this state unless the fuel contains two per cent or | 635 |
| greater of biodiesel by volume, provided that one of the following | 636 |
| occurs: | 637 |
| (1) The director of environmental protection determines that | 638 |
| the state has an annual production capacity of biodiesel greater | 639 |
| than eight million gallons and publishes that determination on the | 640 |
| environmental protection agency's web site. | 641 |
| (2) The director publishes on the agency's web site a | 642 |
| statement that a federal action on taxes imposed or tax credits or | 643 |
| any other federal action creates a reduction of two cents or more | 644 |
| in the price per gallon on taxable diesel fuel that contains two | 645 |
| per cent or greater of biodiesel by volume and that is sold in | 646 |
| this state. | 647 |
| (C) The director periodically shall survey production | 648 |
| facilities in the state to determine whether the state has an | 649 |
| annual production capacity of biodiesel greater than eight million | 650 |
| gallons. If the director finds that the state has a production | 651 |
| capacity greater than eight million gallons, the director shall | 652 |
| publish that determination on the agency's web site. | 653 |
| In addition, the director shall maintain knowledge of any | 654 |
| federal action on taxes imposed or tax credits or any other | 655 |
| federal action that creates a reduction of two cents or more in | 656 |
| the price per gallon on taxable diesel fuel that contains two per | 657 |
| cent or greater of biodiesel by volume and that is sold in this | 658 |
| state. If a federal action creates such a reduction, the director | 659 |
| shall publish a statement concerning that federal action on the | 660 |
| agency's web site. | 661 |
| Sec. 3704.20. (A) As used in this section: | 662 |
| (1) "Clean alternative fuel" and "covered fleet" have the | 663 |
| same meanings as in 42 U.S.C. 7581. | 664 |
| (2) "Clean Air Act Amendments" has the same meaning as in | 665 |
| section 3704.14 of the Revised Code. | 666 |
| (B) The director of environmental protection may adopt rules | 667 |
| under Chapter 119. of the Revised Code establishing requirements | 668 |
| for the use of clean alternative fuel in vehicles that are owned | 669 |
| or used by operators of covered fleets in any county identified as | 670 |
| severe nonattainment for ozone in accordance with the Clean Air | 671 |
| Act Amendments. | 672 |
| The rules adopted under this section shall include all of the | 673 |
| following: | 674 |
| (1) Requirements and procedures governing the registration of | 675 |
| covered fleet operators; | 676 |
| (2) Procedures for the submission of annual compliance plans | 677 |
| to the director by covered fleet operators and for the review and | 678 |
| approval or disapproval of those plans; | 679 |
| (3) Requirements and procedures establishing a system of | 680 |
| marketable credit trading applicable to covered fleet operators; | 681 |
| (4) Enforcement procedures and penalties for failure to | 682 |
| comply with the requirements of the rules adopted under this | 683 |
| section; | 684 |
| (5) Any other requirements or procedures that are determined | 685 |
| to be necessary by the director. | 686 |
| Sec. 3704.30. (A) As used in sections 3704.30 to 3704.34 of | 687 |
| the Revised Code, "political subdivision" means a municipal | 688 |
| corporation, township, county, school district, or other entity | 689 |
| corporate and politic that is responsible for governmental | 690 |
| activities in geographical areas smaller than that of the state. | 691 |
| (B) For the purpose of improving the air quality in this | 692 |
| state, the director of environmental protection shall administer a | 693 |
| local government vehicular fleet alternative fuel revolving loan | 694 |
| program under which the director shall make loans to political | 695 |
| subdivisions for the purpose of establishing or improving their | 696 |
| capability of using alternative fuels in their vehicle fleets. | 697 |
| Loans shall be made to political subdivisions for any or all of | 698 |
| the following: | 699 |
| (1) The purchase of new motor vehicles that are capable of | 700 |
| using alternative fuels; | 701 |
| (2) The conversion of motor vehicles that operate on gasoline | 702 |
| to enable those vehicles to operate on alternative fuels; | 703 |
| (3) The construction of fueling stations that are capable of | 704 |
| dispensing alternative fuels. | 705 |
| (C) An applicant for a loan under the program shall submit a | 706 |
| plan to the director outlining the applicant's strategy for | 707 |
| utilizing alternative fuels in its vehicle fleet. The director | 708 |
| shall give preference to applicants who are or will be | 709 |
| contributing significantly to the cost of the implementation of | 710 |
| their plans and who will work cooperatively with the state, other | 711 |
| political subdivisions, and private entities in developing a | 712 |
| fueling infrastructure that is capable of dispensing alternative | 713 |
| fuels in this state. | 714 |
| (D) The director shall adopt rules under Chapter 119. of the | 715 |
| Revised Code that are necessary for the administration of the | 716 |
| local government vehicular fleet alternative fuel revolving loan | 717 |
| program, including, but limited to, rules establishing the types | 718 |
| of alternative fuels concerning which recipients may receive loans | 719 |
| under the program. | 720 |
| Sec. 3704.31. All of the following apply to loans that are | 721 |
| made under the local government vehicular fleet alternative fuel | 722 |
| revolving loan program: | 723 |
| (A) A political subdivision may receive a maximum of two | 724 |
| thousand dollars for the cost of purchasing a new vehicle that is | 725 |
| capable of operating on an alternative fuel. | 726 |
| (B) A political subdivision may receive a maximum of two | 727 |
| thousand dollars for the conversion of a new or existing vehicle | 728 |
| that is designed to operate on gasoline to enable the vehicle to | 729 |
| operate on an alternative fuel. | 730 |
| (C) A political subdivision may receive a maximum of one | 731 |
| hundred thousand dollars for the construction of a fueling station | 732 |
| that is capable of dispensing alternative fuels. | 733 |
| (D) No political subdivision shall receive a total of more | 734 |
| than one hundred thousand dollars in loans for the purchase of or | 735 |
| conversion to alternative fuel vehicles in any one year. | 736 |
| (E) No political subdivision shall receive a total of more | 737 |
| than one hundred thousand dollars in loans for the construction of | 738 |
| fueling stations in any one year. | 739 |
| Sec. 3704.32. The director of environmental protection shall | 740 |
| enter into a loan agreement with each recipient of a loan under | 741 |
| the local government vehicular fleet alternative fuel revolving | 742 |
| loan program. The director shall establish the interest rate and | 743 |
| terms of repayment for each loan. In establishing the repayment | 744 |
| schedule, the director shall do all of the following: | 745 |
| (A) Consider the projected savings to the political | 746 |
| subdivision resulting from the use of an alternative fuel; | 747 |
| (B) Establish the repayment schedule for a maximum repayment | 748 |
| period of four years; | 749 |
| (C) Include provisions for payments to be made on a monthly | 750 |
| basis. | 751 |
| Sec. 3704.33. A political subdivision that receives a loan | 752 |
| under the local government vehicular fleet alternative fuel | 753 |
| revolving loan program shall do all of the following: | 754 |
| (A) Remit payments in accordance with the repayment schedule | 755 |
| established by the director of environmental protection under | 756 |
| section 3704.32 of the Revised Code; | 757 |
| (B) Agree to use the alternative fuel for which the vehicle | 758 |
| that was purchased or converted with the aid of the loan was | 759 |
| designed, if applicable; | 760 |
| (C) Provide reasonable data requested by the director on the | 761 |
| use and performance of the vehicle that was purchased or converted | 762 |
| with the aid of the loan, if applicable; | 763 |
| (D) Allow for reasonable inspections by the director of the | 764 |
| vehicle that was purchased or converted or the fueling station | 765 |
| that was constructed with the aid of the loan; | 766 |
| (E) If applicable make the fueling station that was | 767 |
| constructed with the aid of the loan available for use at | 768 |
| reasonable cost by the vehicle fleets of other political | 769 |
| subdivisions and, with consideration of the capacity of the | 770 |
| fueling station, by the general public. | 771 |
| Sec. 3704.34. There is hereby created in the state treasury | 772 |
| the local government vehicular fleet alternative fuel revolving | 773 |
| loan fund. The fund shall consist of money from appropriations | 774 |
| made by the general assembly, proceeds from the repayment of loans | 775 |
| made under sections 3704.30 to 3704.33 of the Revised Code, and | 776 |
| any gifts, bequests, donations, or other payments made to the | 777 |
| fund. Money in the fund shall be used to make loans under the | 778 |
| local government vehicular fleet alternative fuel revolving loan | 779 |
| program and by the director of environmental protection in the | 780 |
| administration of that program. | 781 |
| Sec. 5501.18. (A) As used in this section: | 782 |
| (1) "Biodiesel" and "diesel fuel" have the same meanings as | 783 |
| in section 3704.121 of the Revised Code. | 784 |
| (2) "Biodiesel rating" means the percentage of biodiesel in | 785 |
| relation to petroleum diesel in a diesel fuel mixture, which is | 786 |
| represented by the letter B and a number that corresponds to the | 787 |
| percentage of biodiesel in the mixture by volume. | 788 |
| (3) "Incremental cost" means the difference in cost between | 789 |
| blended biodiesel and conventional petroleum-based diesel fuel at | 790 |
| the time the blended biodiesel is purchased. | 791 |
| (B) On or before October 1, 2006, the director of | 792 |
| transportation shall develop a program that provides for the | 793 |
| opportunity to use fuel with at least a biodiesel rating of two or | 794 |
| greater in its vehicle fleet and heavy equipment that use diesel | 795 |
| fuel. The program shall establish the following as its goals for | 796 |
| biodiesel fuel usage: | 797 |
| (1) On or before July 1, 2007, at least fifty per cent of the | 798 |
| department's vehicle fleet and heavy equipment that use diesel | 799 |
| fuel use fuel that has a biodiesel rating of two or greater, if | 800 |
| such fuel is commercially available; | 801 |
| (2) On or before July 1, 2008, at least seventy-five per cent | 802 |
| of the department's vehicle fleet and heavy equipment that use | 803 |
| diesel fuel use fuel that has a biodiesel rating of two or | 804 |
| greater, if such fuel is commercially available. | 805 |
| (C) Biodiesel shall be presumed to be commercially available | 806 |
| if the incremental cost of such fuel is not more than twenty-five | 807 |
| cents. | 808 |
| (D) The director may adopt any rules that are necessary to | 809 |
| carry out this section. | 810 |
| Sec. 5733.47. (A) As used in this section: | 811 |
| (1) "Ethanol" has the same meaning as in section 5733.46 of | 812 |
| the Revised Code. | 813 |
| (2) "Ethanol blended gasoline" means gasoline containing at | 814 |
| least ten per cent ethanol. | 815 |
| (3) "Gasoline" has the same meaning as in section 5735.01 of | 816 |
| the Revised Code. | 817 |
| (4) "Retail dealer" means a taxpayer that sells or | 818 |
| distributes gasoline at a retail service station located in this | 819 |
| state. | 820 |
| (5) "Retail service station" means each location from which | 821 |
| gasoline is sold or offered for sale at retail to the general | 822 |
| public and is dispensed from a metered pump. | 823 |
| (B) There is hereby allowed a refundable credit against the | 824 |
| tax imposed by section 5733.06 of the Revised Code for a retail | 825 |
| dealer that owns or operates a retail service station at which | 826 |
| more than sixty per cent of the total gallons of gasoline sold and | 827 |
| dispensed through one or more metered pumps by the taxpayer in the | 828 |
| tax year is ethanol blended gasoline. The amount of the credit for | 829 |
| each eligible retail service station is two and one-half cents | 830 |
| multiplied by the total number of gallons of ethanol blended | 831 |
| gasoline sold and dispensed through all metered pumps located at | 832 |
| that retail service station during the tax year in excess of sixty | 833 |
| per cent of all gasoline sold and dispensed through metered pumps | 834 |
| at that retail service station during the tax year. The credit | 835 |
| shall be calculated separately for each retail service station | 836 |
| site owned or operated by that retail dealer. | 837 |
| (C) The retail dealer shall claim the credit in the order | 838 |
| required by section 5733.98 of the Revised Code. If the amount of | 839 |
| the credit under this section exceeds the amount of tax otherwise | 840 |
| due under section 5733.06 of the Revised Code after the deduction | 841 |
| of all other credits in that order, the retail dealer is entitled | 842 |
| to a refund of the excess. | 843 |
| (D) The tax commissioner may require that the retail dealer | 844 |
| furnish information as is necessary to support a claim for a tax | 845 |
| credit under this section, and no credit shall be allowed unless | 846 |
| the information is provided. | 847 |
| (E) The credit allowed under this section may be claimed | 848 |
| beginning with tax year 2006. | 849 |
| Sec. 5733.48. (A) As used in this section: | 850 |
| (1) "E85 blend fuel" means a motor fuel that consists of at | 851 |
| least eighty-five per cent ethanol as defined in section 5733.46 | 852 |
| of the Revised Code and no more than fifteen per cent gasoline or | 853 |
| other liquid motor fuel by volume. | 854 |
| (2) "Gasoline" and "motor fuel" have the same meanings as in | 855 |
| section 5735.01 of the Revised Code. | 856 |
| (3) "Motor fuel retail dealer" means a taxpayer that sells or | 857 |
| distributes motor fuel at a retail service station located in this | 858 |
| state and that possesses an unrevoked retail dealer's license | 859 |
| issued by the tax commissioner under section 5735.022 of the | 860 |
| Revised Code. | 861 |
| (4) "Retail service station" means a location from which | 862 |
| motor fuel is sold to the general public and is dispensed or | 863 |
| pumped directly into motor vehicle fuel tanks for consumption. | 864 |
| (B) For tax years 2006, 2007, 2008, and 2009, there is hereby | 865 |
| allowed a nonrefundable credit against the tax imposed by section | 866 |
| 5733.06 of the Revised Code for a motor fuel retail dealer that | 867 |
| installs at a retail service station located in this state one or | 868 |
| more pumps that dispense E85 blend fuel for sale to the general | 869 |
| public. The amount of the credit equals ten thousand dollars. The | 870 |
| credit shall be claimed in the tax year immediately following the | 871 |
| calendar year in which a pump is installed. The amount of the | 872 |
| credit claimed in a tax year shall not exceed ten thousand dollars | 873 |
| regardless of the number of pumps installed by the motor fuel | 874 |
| retail dealer at a retail service station during the preceding | 875 |
| calendar year and regardless of the number of retail service | 876 |
| stations at which the dealer installs a pump during the preceding | 877 |
| calendar year. The credit shall be claimed in the order required | 878 |
| under section 5733.98 of the Revised Code. | 879 |
| (C) The tax commissioner may require that a motor fuel retail | 880 |
| dealer furnish information as is necessary to support the claim | 881 |
| for the credit under this section, and no credit shall be allowed | 882 |
| unless the information is provided. | 883 |
| Sec. 5733.98. (A) To provide a uniform procedure for | 884 |
| calculating the amount of tax imposed by section 5733.06 of the | 885 |
| Revised Code that is due under this chapter, a taxpayer shall | 886 |
| claim any credits to which it is entitled in the following order, | 887 |
| except as otherwise provided in section 5733.058 of the Revised | 888 |
| Code: | 889 |
| (1) The credit for taxes paid by a qualifying pass-through | 890 |
| entity allowed under section 5733.0611 of the Revised Code; | 891 |
| (2) The credit allowed for financial institutions under | 892 |
| section 5733.45 of the Revised Code; | 893 |
| (3) The credit for qualifying affiliated groups under section | 894 |
| 5733.068 of the Revised Code; | 895 |
| (4) The subsidiary corporation credit under section 5733.067 | 896 |
| of the Revised Code; | 897 |
| (5) The savings and loan assessment credit under section | 898 |
| 5733.063 of the Revised Code; | 899 |
| (6) The credit for recycling and litter prevention donations | 900 |
| under section 5733.064 of the Revised Code; | 901 |
| (7) The credit for employers that enter into agreements with | 902 |
| child day-care centers under section 5733.36 of the Revised Code; | 903 |
| (8) The credit for employers that reimburse employee child | 904 |
| day-care expenses under section 5733.38 of the Revised Code; | 905 |
| (9) The credit for maintaining railroad active grade crossing | 906 |
| warning devices under section 5733.43 of the Revised Code; | 907 |
| (10) The credit for purchases of lights and reflectors under | 908 |
| section 5733.44 of the Revised Code; | 909 |
| (11) The job retention credit under division (B) of section | 910 |
| 5733.0610 of the Revised Code; | 911 |
| (12) The credit for losses on loans made under the Ohio | 912 |
| venture capital program under sections 150.01 to 150.10 of the | 913 |
| Revised Code if the taxpayer elected a nonrefundable credit under | 914 |
| section 150.07 of the Revised Code; | 915 |
| (13) The credit for purchases of new manufacturing machinery | 916 |
| and equipment under section 5733.31 or section 5733.311 of the | 917 |
| Revised Code; | 918 |
| (14) The second credit for purchases of new manufacturing | 919 |
| machinery and equipment under section 5733.33 of the Revised Code; | 920 |
| (15) The job training credit under section 5733.42 of the | 921 |
| Revised Code; | 922 |
| (16) The credit for qualified research expenses under section | 923 |
| 5733.351 of the Revised Code; | 924 |
| (17) The enterprise zone credit under section 5709.66 of the | 925 |
| Revised Code; | 926 |
| (18) The credit for the eligible costs associated with a | 927 |
| voluntary action under section 5733.34 of the Revised Code; | 928 |
| (19) The credit for employers that establish on-site child | 929 |
| day-care under section 5733.37 of the Revised Code; | 930 |
| (20) The ethanol plant investment credit under section | 931 |
| 5733.46 of the Revised Code; | 932 |
| (21) The credit for purchases of qualifying grape production | 933 |
| property under section 5733.32 of the Revised Code; | 934 |
| (22) The export sales credit under section 5733.069 of the | 935 |
| Revised Code; | 936 |
| (23) The credit for research and development and technology | 937 |
| transfer investors under section 5733.35 of the Revised Code; | 938 |
| (24) The enterprise zone credits under section 5709.65 of the | 939 |
| Revised Code; | 940 |
| (25) The credit for using Ohio coal under section 5733.39 of | 941 |
| the Revised Code; | 942 |
| (26) The research and development credit under section | 943 |
| 5733.352 of the Revised Code; | 944 |
| (27) The credit for small telephone companies under section | 945 |
| 5733.57 of the Revised Code; | 946 |
| | 947 |
| under section 5733.55 of the Revised Code; | 948 |
| | 949 |
| communicatively impaired under section 5733.56 of the Revised | 950 |
| Code; | 951 |
| | 952 |
| section 5733.48 of the Revised Code; | 953 |
| (31) The refundable jobs creation credit under division (A) | 954 |
| of section 5733.0610 of the Revised Code; | 955 |
| | 956 |
| division (B)(2) of section 5747.062 of the Revised Code; | 957 |
| | 958 |
| under section 5733.47 of the Revised Code; | 959 |
| (34) The credit for losses on loans made to the Ohio venture | 960 |
| capital program under sections 150.01 to 150.10 of the Revised | 961 |
| Code if the taxpayer elected a refundable credit under section | 962 |
| 150.07 of the Revised Code. | 963 |
| (B) For any credit except the credits enumerated in divisions | 964 |
| (A) | 965 |
| of the credit for a tax year shall not exceed the tax due after | 966 |
| allowing for any other credit that precedes it in the order | 967 |
| required under this section. Any excess amount of a particular | 968 |
| credit may be carried forward if authorized under the section | 969 |
| creating that credit. | 970 |
| Sec. 5735.40. (A) As used in this section: | 971 |
| (1) "Alternative fuel" means all combustible gases and | 972 |
| liquids suitable for generation of power for propulsion of motor | 973 |
| vehicles, except for motor fuel or general aviation fuel. | 974 |
| (2) "General aviation fuel" means products placed in the fuel | 975 |
| supply tank of aircraft, commonly or commercially known as | 976 |
| aviation gasoline and jet turbine fuel and other combustible gases | 977 |
| and liquids suitable for the generation of power for propulsion of | 978 |
| aircraft. | 979 |
| (3) "Motor fuel" has the same meaning as in section 5735.01 | 980 |
| of the Revised Code. | 981 |
| (4) "Political subdivision" means a county, township, | 982 |
| municipal corporation, school district, or other body corporate | 983 |
| and politic responsible for governmental activities in a | 984 |
| geographic area smaller than that of the state. | 985 |
| (B) Except as provided in division (B)(6) of section 5739.02 | 986 |
| of the Revised Code when levying the tax imposed by that section | 987 |
| in conjunction with sections 5739.021, 5739.023, and 5739.026 of | 988 |
| the Revised Code, no political subdivision shall levy or collect | 989 |
| any excise, license, privilege, or occupational tax upon motor | 990 |
| fuel or alternative fuel, or upon the buying, selling, handling, | 991 |
| or consuming of motor fuel or alternative fuel. | 992 |
| Sec. 5747.76. (A) As used in this section: | 993 |
| (1) "Ethanol" has the same meaning as in section 5747.75 of | 994 |
| the Revised Code. | 995 |
| (2) "Ethanol blended gasoline" means gasoline containing at | 996 |
| least ten per cent ethanol. | 997 |
| (3) "Gasoline" has the same meaning as in section 5735.01 of | 998 |
| the Revised Code. | 999 |
| (4) "Retail dealer" means a taxpayer that sells or | 1000 |
| distributes gasoline at a retail service station located in this | 1001 |
| state. | 1002 |
| (5) "Retail service station" means each location from which | 1003 |
| gasoline is sold or offered for sale at retail to the general | 1004 |
| public and is dispensed from a metered pump. | 1005 |
| (B) There is hereby allowed a refundable credit against the | 1006 |
| tax imposed by section 5747.02 of the Revised Code for a retail | 1007 |
| dealer that owns or operates a retail service station at which | 1008 |
| more than sixty per cent of the total gallons of gasoline sold and | 1009 |
| dispensed through one or more metered pumps by the taxpayer in the | 1010 |
| taxable year is ethanol blended gasoline. The amount of the credit | 1011 |
| for each eligible retail service station is two and one-half cents | 1012 |
| multiplied by the total number of gallons of ethanol blended | 1013 |
| gasoline sold and dispensed through all metered pumps located at | 1014 |
| that retail service station during the taxable year in excess of | 1015 |
| sixty per cent of all gasoline sold and dispensed through metered | 1016 |
| pumps at that retail service station during the taxable year. The | 1017 |
| credit shall be calculated separately for each retail service | 1018 |
| station site owned or operated by that retail dealer. | 1019 |
| (C) The retail dealer shall claim the credit in the order | 1020 |
| required by section 5747.98 of the Revised Code. If the amount of | 1021 |
| the credit under this section exceeds the amount of tax otherwise | 1022 |
| due under section 5747.02 of the Revised Code after the deduction | 1023 |
| of all other credits in that order, the retail dealer is entitled | 1024 |
| to a refund of the excess. | 1025 |
| (D) The tax commissioner may require that the retail dealer | 1026 |
| furnish information as is necessary to support a claim for a tax | 1027 |
| credit under this section, and no credit shall be allowed unless | 1028 |
| the information is provided. | 1029 |
| (E) The credit allowed under this section may be claimed for | 1030 |
| taxable years beginning on or after January 1, 2006. | 1031 |
| Sec. 5747.77. (A) As used in this section: | 1032 |
| (1) "E85 blend fuel" means a motor fuel that consists of at | 1033 |
| least eighty-five per cent ethanol as defined in section 5747.75 | 1034 |
| of the Revised Code and no more than fifteen per cent gasoline or | 1035 |
| other liquid motor fuel by volume. | 1036 |
| (2) "Gasoline" and "motor fuel" have the same meanings as in | 1037 |
| section 5735.01 of the Revised Code. | 1038 |
| (3) "Motor fuel retail dealer" means a pass-through entity | 1039 |
| that sells or distributes motor fuel at a retail service station | 1040 |
| located in this state and that possesses an unrevoked retail | 1041 |
| dealer's license issued by the tax commissioner under section | 1042 |
| 5735.022 of the Revised Code. | 1043 |
| (3) "Pass-through entity" has the same meaning as in section | 1044 |
| 5747.01 of the Revised Code and includes a sole proprietorship. | 1045 |
| (4) "Retail service station" means a location from which | 1046 |
| motor fuel is sold to the general public and is dispensed or | 1047 |
| pumped directly into motor vehicle fuel tanks for consumption. | 1048 |
| (B) For taxable years beginning in 2005, 2006, 2007, and | 1049 |
| 2008, there is hereby allowed a nonrefundable credit against the | 1050 |
| tax imposed by section 5747.02 of the Revised Code for a motor | 1051 |
| fuel retail dealer that installs at a retail service station | 1052 |
| located in this state one or more pumps that dispense E85 blend | 1053 |
| fuel for sale to the general public. The amount of the credit | 1054 |
| equals ten thousand dollars. The credit shall be claimed for the | 1055 |
| taxable year in which a pump is installed. The amount of the | 1056 |
| credit claimed for a taxable year shall not exceed ten thousand | 1057 |
| dollars regardless of the number of pumps installed by the motor | 1058 |
| fuel retail dealer at a retail service station during the taxable | 1059 |
| year and regardless of the number of retail service stations at | 1060 |
| which the dealer installs a pump during the taxable year. The | 1061 |
| credit shall be claimed in the order required under section | 1062 |
| 5747.98 of the Revised Code. | 1063 |
| (C) Nothing in this section limits or disallows pass-through | 1064 |
| treatment of the credit. | 1065 |
| (D) The tax commissioner may require that a motor fuel retail | 1066 |
| dealer furnish information as is necessary to support the claim | 1067 |
| for the credit under this section, and no credit shall be allowed | 1068 |
| unless the information is provided. | 1069 |
| Sec. 5747.98. (A) To provide a uniform procedure for | 1070 |
| calculating the amount of tax due under section 5747.02 of the | 1071 |
| Revised Code, a taxpayer shall claim any credits to which the | 1072 |
| taxpayer is entitled in the following order: | 1073 |
| (1) The retirement income credit under division (B) of | 1074 |
| section 5747.055 of the Revised Code; | 1075 |
| (2) The senior citizen credit under division (C) of section | 1076 |
| 5747.05 of the Revised Code; | 1077 |
| (3) The lump sum distribution credit under division (D) of | 1078 |
| section 5747.05 of the Revised Code; | 1079 |
| (4) The dependent care credit under section 5747.054 of the | 1080 |
| Revised Code; | 1081 |
| (5) The lump sum retirement income credit under division (C) | 1082 |
| of section 5747.055 of the Revised Code; | 1083 |
| (6) The lump sum retirement income credit under division (D) | 1084 |
| of section 5747.055 of the Revised Code; | 1085 |
| (7) The lump sum retirement income credit under division (E) | 1086 |
| of section 5747.055 of the Revised Code; | 1087 |
| (8) The credit for displaced workers who pay for job training | 1088 |
| under section 5747.27 of the Revised Code; | 1089 |
| (9) The campaign contribution credit under section 5747.29 of | 1090 |
| the Revised Code; | 1091 |
| (10) The twenty-dollar personal exemption credit under | 1092 |
| section 5747.022 of the Revised Code; | 1093 |
| (11) The joint filing credit under division (G) of section | 1094 |
| 5747.05 of the Revised Code; | 1095 |
| (12) The nonresident credit under division (A) of section | 1096 |
| 5747.05 of the Revised Code; | 1097 |
| (13) The credit for a resident's out-of-state income under | 1098 |
| division (B) of section 5747.05 of the Revised Code; | 1099 |
| (14) The credit for employers that enter into agreements with | 1100 |
| child day-care centers under section 5747.34 of the Revised Code; | 1101 |
| (15) The credit for employers that reimburse employee child | 1102 |
| day-care expenses under section 5747.36 of the Revised Code; | 1103 |
| (16) The credit for adoption of a minor child under section | 1104 |
| 5747.37 of the Revised Code; | 1105 |
| (17) The credit for purchases of lights and reflectors under | 1106 |
| section 5747.38 of the Revised Code; | 1107 |
| (18) The job retention credit under division (B) of section | 1108 |
| 5747.058 of the Revised Code; | 1109 |
| (19) The credit for losses on loans made under the Ohio | 1110 |
| venture capital program under sections 150.01 to 150.10 of the | 1111 |
| Revised Code if the taxpayer elected a nonrefundable credit under | 1112 |
| section 150.07 of the Revised Code; | 1113 |
| (20) The credit for purchases of new manufacturing machinery | 1114 |
| and equipment under section 5747.26 or section 5747.261 of the | 1115 |
| Revised Code; | 1116 |
| (21) The second credit for purchases of new manufacturing | 1117 |
| machinery and equipment and the credit for using Ohio coal under | 1118 |
| section 5747.31 of the Revised Code; | 1119 |
| (22) The job training credit under section 5747.39 of the | 1120 |
| Revised Code; | 1121 |
| (23) The enterprise zone credit under section 5709.66 of the | 1122 |
| Revised Code; | 1123 |
| (24) The credit for the eligible costs associated with a | 1124 |
| voluntary action under section 5747.32 of the Revised Code; | 1125 |
| (25) The credit for employers that establish on-site child | 1126 |
| day-care centers under section 5747.35 of the Revised Code; | 1127 |
| (26) The ethanol plant investment credit under section | 1128 |
| 5747.75 of the Revised Code; | 1129 |
| (27) The credit for purchases of qualifying grape production | 1130 |
| property under section 5747.28 of the Revised Code; | 1131 |
| (28) The export sales credit under section 5747.057 of the | 1132 |
| Revised Code; | 1133 |
| (29) The credit for research and development and technology | 1134 |
| transfer investors under section 5747.33 of the Revised Code; | 1135 |
| (30) The enterprise zone credits under section 5709.65 of the | 1136 |
| Revised Code; | 1137 |
| (31) The research and development credit under section | 1138 |
| 5747.331 of the Revised Code; | 1139 |
| (32) The credit for installing ethanol fuel pumps under | 1140 |
| section 5747.77 of the Revised Code; | 1141 |
| (33) The refundable jobs creation credit under division (A) | 1142 |
| of section 5747.058 of the Revised Code; | 1143 |
| | 1144 |
| entity granted under section 5747.059 of the Revised Code; | 1145 |
| | 1146 |
| qualifying pass-through entity granted under division (J) of | 1147 |
| section 5747.08 of the Revised Code; | 1148 |
| | 1149 |
| division (B)(1) of section 5747.062 of the Revised Code; | 1150 |
| | 1151 |
| section 5747.76 of the Revised Code; | 1152 |
| (38) The credit for losses on loans made to the Ohio venture | 1153 |
| capital program under sections 150.01 to 150.10 of the Revised | 1154 |
| Code if the taxpayer elected a refundable credit under section | 1155 |
| 150.07 of the Revised Code. | 1156 |
| (B) For any credit, except the credits enumerated in | 1157 |
| divisions (A) | 1158 |
| granted under division (I) of section 5747.08 of the Revised Code, | 1159 |
| the amount of the credit for a taxable year shall not exceed the | 1160 |
| tax due after allowing for any other credit that precedes it in | 1161 |
| the order required under this section. Any excess amount of a | 1162 |
| particular credit may be carried forward if authorized under the | 1163 |
| section creating that credit. Nothing in this chapter shall be | 1164 |
| construed to allow a taxpayer to claim, directly or indirectly, a | 1165 |
| credit more than once for a taxable year. | 1166 |
| Section 2. That existing sections 125.831, 3317.022, 5733.98, | 1167 |
| and 5747.98 of the Revised Code are hereby repealed. | 1168 |
| Section 3. (A) As used in this section, "alternative fuel" | 1169 |
| has the same meaning as in section 125.831 of the Revised Code, as | 1170 |
| amended by this act. | 1171 |
| (B) The Department of Taxation shall study the feasibility of | 1172 |
| encouraging the use of alternative fuels by reducing the motor | 1173 |
| fuel tax rate on those fuels, to the extent they are taxed under | 1174 |
| Chapter 5735. of the Revised Code, to reflect their lower energy | 1175 |
| content and the need to use more gallons of an alternative fuel to | 1176 |
| travel the same distance. The study shall examine the British | 1177 |
| thermal unit ("Btu") of each alternative fuel that may be used in | 1178 |
| motor vehicles, and determine at what rate each alternative fuel | 1179 |
| may be taxed to result in an effective tax rate that is equalized | 1180 |
| to conventional fuels, such as gasoline and diesel, according to | 1181 |
| their relative Btu content by volume. Among any other matters the | 1182 |
| Department of Taxation determines to be pertinent to the study, | 1183 |
| the Department also shall consider the experience of other states | 1184 |
| that have encouraged the use of alternative fuels by reducing | 1185 |
| their fuel tax rates on those fuels. Not later than January 1, | 1186 |
| 2006, the Department shall prepare a report regarding its findings | 1187 |
| and submit a copy of the report to the Governor, the Speaker and | 1188 |
| Minority Leader of the House of Representatives, and the President | 1189 |
| and Minority Leader of the Senate. | 1190 |
| Section 4. Section 5733.98 of the Revised Code is presented | 1191 |
| in this act as a composite of the section as amended by both Am. | 1192 |
| Sub. H.B. 1 and Am. Sub. H.B. 95 of the 125th General Assembly. | 1193 |
| The General Assembly, applying the principle stated in division | 1194 |
| (B) of section 1.52 of the Revised Code that amendments are to be | 1195 |
| harmonized if reasonably capable of simultaneous operation, finds | 1196 |
| that the composite is the resulting version of the section in | 1197 |
| effect prior to the effective date of the section as presented in | 1198 |
| this act. | 1199 |