H. B. No. 54 As Introduced

As Introduced

127th General Assembly

Regular Session

2007-2008

H. B. No. 54

Representative Foley

Cosponsors: Representatives Fende, Williams, B., Miller, Garrison, Combs, Collier, Strahorn, Skindell

A BILL

To amend section 122.075 and to enact section 5537.29 1
of the Revised Code to require that blended 2
biodiesel and E85 blend fuel be available at all 3
service stations located on the Ohio Turnpike not 4
later than January 1, 2010, and to permit the Ohio 5
Turnpike Commission to apply for grants made by 6
the Department of Development under the 7
Alternative Fuel Transportation Grant Program. 8

BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF OHIO:

       Section 1. That section 122.075 be amended and section 9
5537.29 of the Revised Code be enacted to read as follows: 10

       Sec. 122.075. (A) As used in this section: 11

       (1) "Alternative fuel" means blended biodiesel or blended 12
gasoline. 13

       (2) "Biodiesel" means a mono-alkyl ester combustible liquid 14
fuel that is derived from vegetable oils or animal fats, or any 15
combination of those reagents, and that meets American society for 16
testing and materials specification D6751-03a for biodiesel fuel 17
(B100) blend stock distillate fuels. 18

       (3) "Diesel fuel" and "gasoline" have the same meanings as in 19
section 5735.01 of the Revised Code. 20

       (4) "Ethanol" has the same meaning as in section 5733.46 of 21
the Revised Code. 22

       (5) "Blended biodiesel" means diesel fuel containing at least 23
twenty per cent biodiesel by volume. 24

       (6) "Blended gasoline" means gasoline containing at least 25
eighty-five per cent ethanol by volume. 26

       (7) "Incremental cost" means either of the following: 27

       (a) The difference in cost between blended gasoline and 28
gasoline containing ten per cent or less ethanol at the time that 29
the blended gasoline is purchased; 30

       (b) The difference in cost between blended biodiesel and 31
diesel fuel containing two per cent or less biodiesel at the time 32
that the blended biodiesel is purchased. 33

       (B) For the purpose of improving the air quality in this 34
state, the director of development shall establish an alternative 35
fuel transportation grant program under which the director may 36
make grants to businesses, nonprofit organizations, public school 37
systems, the Ohio turnpike commission, or local governments for 38
the purchase and installation of alternative fuel refueling or 39
distribution facilities and terminals and alternative fuel pumps, 40
for the purchase and use of alternative fuel, and to pay the costs 41
of educational and promotional materials and activities intended 42
for prospective alternative fuel consumers, fuel marketers, and 43
others in order to increase the availability and use of 44
alternative fuel. 45

       (C) The director, in consultation with the director of 46
agriculture, shall adopt rules in accordance with Chapter 119. of 47
the Revised Code that are necessary for the administration of the 48
alternative fuel transportation grant program. The rules shall 49
establish at least all of the following: 50

       (1) An application form and procedures governing the 51
application process for a grant under the program; 52

       (2) A procedure for prioritizing the award of grants under 53
the program. The procedures shall give preference to all of the 54
following: 55

       (a) Publicly accessible refueling facilities; 56

       (b) Entities seeking grants that have secured funding from 57
other sources, including, but not limited to, private or federal 58
grants; 59

       (c) Entities that have presented compelling evidence of 60
demand in the market in which the facilities or terminals will be 61
located; 62

       (d) Entities that have committed to utilizing purchased or 63
installed facilities or terminals for the greatest number of 64
years; 65

       (e) Entities that will be purchasing or installing facilities 66
or terminals for both blended biodiesel and blended gasoline. 67

       (3) A requirement that the maximum grant for the purchase and 68
installation of an alternative fuel refueling or distribution 69
facility or terminal or alternative fuel pump be eighty per cent 70
of the cost of the facility or, terminal, or pump, except that at 71
least twenty per cent of the total net cost of the facility or, 72
terminal, or pump shall be incurred by the grant recipient and not 73
compensated for by any other source; 74

       (4) A requirement that the maximum grant for the purchase of 75
alternative fuel be eighty per cent of the incremental cost of the 76
fuel; 77

       (5) Any other criteria, procedures, or guidelines that the 78
director determines are necessary to administer the program. 79

       (D) An applicant for a grant under this section that sells 80
motor vehicle fuel at retail shall agree that if the applicant 81
receives a grant, the applicant will report to the director the 82
gallon amounts of blended gasoline and blended biodiesel the 83
applicant sells at retail in this state for a period of three 84
years after the grant is awarded. 85

       The director shall enter into a written confidentiality 86
agreement with the applicant regarding the gallon amounts sold as 87
described in this division, and upon execution of the agreement 88
this information is not a public record. 89

       (E) There is hereby created in the state treasury the 90
alternative fuel transportation grant fund. The fund shall consist 91
of money transferred to the fund under division (C) of section 92
125.836 of the Revised Code, money that is appropriated to it by 93
the general assembly, and money as may be specified by the general 94
assembly from the energy efficiency revolving loan fund created by 95
section 4928.61 of the Revised Code. Money in the fund shall be 96
used to make grants under the alternative fuel transportation 97
grant program and by the director in the administration of that 98
program. 99

       Sec. 5537.29. (A) As used in this section, "blended 100
biodiesel" and "E85 blend fuel" have the same meanings as in 101
section 125.831 of the Revised Code. 102

        (B) The Ohio turnpike commission shall make available for 103
sale to the public both blended biodiesel and E85 blend fuel at 104
all service stations located on the turnpike project in existence 105
on the effective date of this section from at least one fuel pump 106
at each service station underneath the fuel canopy according to 107
the following schedule: 108

       (1) Not later than January 1, 2008, blended biodiesel and E85 109
blend fuel shall be available for sale at the six service stations 110
that ranked first through sixth in terms of total gallons of 111
gasoline sold during calendar year 2006 at the fourteen service 112
stations located on the turnpike project. 113

       (2) Not later than January 1, 2009, blended biodiesel and E85 114
blend fuel shall be available for sale at the six service stations 115
that ranked seventh through twelfth in terms of total gallons of 116
gasoline sold during calendar year 2006 at the fourteen service 117
stations located on the turnpike project. 118

       (3) Not later than January 1, 2010, blended biodiesel and E85 119
blend fuel shall be available for sale at the two service stations 120
that ranked thirteenth and fourteenth in terms of total gallons of 121
gasoline sold during calendar year 2006 at the fourteen service 122
stations located on the turnpike project and at any other service 123
stations that are constructed on the turnpike project after the 124
effective date of this section but before January 1, 2010. 125

       (C) Except as provided in division (B)(3) of this section, 126
each service station constructed after the effective date of this 127
section that is located on a turnpike project shall have blended 128
biodiesel and E85 blend fuel available for sale to the public 129
underneath the fuel canopy upon commencement of business from at 130
least one fuel pump at the service station. 131

       (D) The commission shall ensure that all service plazas that 132
are located on a turnpike project and at which are located service 133
stations provide on-site visibility and promotion to both blended 134
biodiesel and E85 blend fuel to a degree that is equal to or 135
greater than the visibility and promotion the commission provides 136
for diesel fuel and gasoline. 137

        (E) The executive director of the commission shall consult 138
with the director of development to find and evaluate possible 139
funding sources to assist the commission with the costs associated 140
with the construction of the infrastructure needed for the sale of 141
blended biodiesel and E85 blend fuel at service stations located 142
on turnpike projects. 143

       Section 2. That existing section 122.075 of the Revised Code 144
is hereby repealed. 145

Section 1. That section 122.075 be amended and section	9
5537.29 of the Revised Code be enacted to read as follows:	10

(1) "Alternative fuel" means blended biodiesel or blended	12
gasoline.	13

(2) "Biodiesel" means a mono-alkyl ester combustible liquid	14
fuel that is derived from vegetable oils or animal fats, or any	15
combination of those reagents, and that meets American society for	16
testing and materials specification D6751-03a for biodiesel fuel	17
(B100) blend stock distillate fuels.	18

(3) "Diesel fuel" and "gasoline" have the same meanings as in	19
section 5735.01 of the Revised Code.	20

(4) "Ethanol" has the same meaning as in section 5733.46 of	21
the Revised Code.	22

(5) "Blended biodiesel" means diesel fuel containing at least	23
twenty per cent biodiesel by volume.	24

(6) "Blended gasoline" means gasoline containing at least	25
eighty-five per cent ethanol by volume.	26

(a) The difference in cost between blended gasoline and	28
gasoline containing ten per cent or less ethanol at the time that	29
the blended gasoline is purchased;	30

(b) The difference in cost between blended biodiesel and	31
diesel fuel containing two per cent or less biodiesel at the time	32
that the blended biodiesel is purchased.	33

(B) For the purpose of improving the air quality in this	34
state, the director of development shall establish an alternative	35
fuel transportation grant program under which the director may	36
make grants to businesses, nonprofit organizations, public school	37
systems, the Ohio turnpike commission, or local governments for	38
the purchase and installation of alternative fuel refueling or	39
distribution facilities and terminals and alternative fuel pumps,	40
for the purchase and use of alternative fuel, and to pay the costs	41
of educational and promotional materials and activities intended	42
for prospective alternative fuel consumers, fuel marketers, and	43
others in order to increase the availability and use of	44
alternative fuel.	45

(C) The director, in consultation with the director of	46
agriculture, shall adopt rules in accordance with Chapter 119. of	47
the Revised Code that are necessary for the administration of the	48
alternative fuel transportation grant program. The rules shall	49
establish at least all of the following:	50

(1) An application form and procedures governing the	51
application process for a grant under the program;	52

(2) A procedure for prioritizing the award of grants under	53
the program. The procedures shall give preference to all of the	54
following:	55

(b) Entities seeking grants that have secured funding from	57
other sources, including, but not limited to, private or federal	58
grants;	59

(c) Entities that have presented compelling evidence of	60
demand in the market in which the facilities or terminals will be	61
located;	62

(d) Entities that have committed to utilizing purchased or	63
installed facilities or terminals for the greatest number of	64
years;	65

(e) Entities that will be purchasing or installing facilities	66
or terminals for both blended biodiesel and blended gasoline.	67

(3) A requirement that the maximum grant for the purchase and	68
installation of an alternative fuel refueling or distribution	69
facility or terminal or alternative fuel pump be eighty per cent	70
of the cost of the facility or, terminal, or pump, except that at	71
least twenty per cent of the total net cost of the facility or,	72
terminal, or pump shall be incurred by the grant recipient and not	73
compensated for by any other source;	74

(4) A requirement that the maximum grant for the purchase of	75
alternative fuel be eighty per cent of the incremental cost of the	76
fuel;	77

(5) Any other criteria, procedures, or guidelines that the	78
director determines are necessary to administer the program.	79

(D) An applicant for a grant under this section that sells	80
motor vehicle fuel at retail shall agree that if the applicant	81
receives a grant, the applicant will report to the director the	82
gallon amounts of blended gasoline and blended biodiesel the	83
applicant sells at retail in this state for a period of three	84
years after the grant is awarded.	85

The director shall enter into a written confidentiality	86
agreement with the applicant regarding the gallon amounts sold as	87
described in this division, and upon execution of the agreement	88
this information is not a public record.	89

(E) There is hereby created in the state treasury the	90
alternative fuel transportation grant fund. The fund shall consist	91
of money transferred to the fund under division (C) of section	92
125.836 of the Revised Code, money that is appropriated to it by	93
the general assembly, and money as may be specified by the general	94
assembly from the energy efficiency revolving loan fund created by	95
section 4928.61 of the Revised Code. Money in the fund shall be	96
used to make grants under the alternative fuel transportation	97
grant program and by the director in the administration of that	98
program.	99

Sec. 5537.29. (A) As used in this section, "blended	100
biodiesel" and "E85 blend fuel" have the same meanings as in	101
section 125.831 of the Revised Code.	102

(B) The Ohio turnpike commission shall make available for	103
sale to the public both blended biodiesel and E85 blend fuel at	104
all service stations located on the turnpike project in existence	105
on the effective date of this section from at least one fuel pump	106
at each service station underneath the fuel canopy according to	107
the following schedule:	108

(1) Not later than January 1, 2008, blended biodiesel and E85	109
blend fuel shall be available for sale at the six service stations	110
that ranked first through sixth in terms of total gallons of	111
gasoline sold during calendar year 2006 at the fourteen service	112
stations located on the turnpike project.	113

(2) Not later than January 1, 2009, blended biodiesel and E85	114
blend fuel shall be available for sale at the six service stations	115
that ranked seventh through twelfth in terms of total gallons of	116
gasoline sold during calendar year 2006 at the fourteen service	117
stations located on the turnpike project.	118

(3) Not later than January 1, 2010, blended biodiesel and E85	119
blend fuel shall be available for sale at the two service stations	120
that ranked thirteenth and fourteenth in terms of total gallons of	121
gasoline sold during calendar year 2006 at the fourteen service	122
stations located on the turnpike project and at any other service	123
stations that are constructed on the turnpike project after the	124
effective date of this section but before January 1, 2010.	125

(C) Except as provided in division (B)(3) of this section,	126
each service station constructed after the effective date of this	127
section that is located on a turnpike project shall have blended	128
biodiesel and E85 blend fuel available for sale to the public	129
underneath the fuel canopy upon commencement of business from at	130
least one fuel pump at the service station.	131

(D) The commission shall ensure that all service plazas that	132
are located on a turnpike project and at which are located service	133
stations provide on-site visibility and promotion to both blended	134
biodiesel and E85 blend fuel to a degree that is equal to or	135
greater than the visibility and promotion the commission provides	136
for diesel fuel and gasoline.	137