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State legislatures pass biodiesel bills

By | June 01, 2005
From a national perspective, state legislative bills are rarely static. Below, Biodiesel Magazine looks at recent developments in state legislation.

Indiana
Gov. Mitch Daniels recently signed a bill into law that encourages biodiesel use, production and blending. Senate Bill (SB) 378-better known as the Clean Indiana Energy Bill-broadens the 2003 tax incentives for the use and production of soybeans. It also adds another $5 million for biodiesel production and use through incentives, and increases the total tax credit from $10 million to $20 million.

North Dakota
Gov. John Hoeven recently signed SB2217 into law, which gives blenders a 5-cent-per-gallon (cpg) tax credit when a minimum of B5 is blended. The new law also provides a tax credit of up to 10 percent toward costs incurred while adapting equipment for the sale of B2 or higher blends. The law also establishes a fund to buy down loans made to biodiesel producers.

Montana
Gov. Brian Schweitzer recently advanced Rep. Gail Gutsche's House Bill (HB) 756 into the Montana law books. The new law offers a 10-cpg producer tax credit against taxes already paid for increased production. The new law also provides for up to $500,000 or 15 percent of property investments to oilseed crushing plants for biodiesel production.

Iowa
Gov. Tom Vilsack recently signed Executive Order No. 41 into law, which includes a broad range of directives to increase state agencies' energy conservation. One of many guidelines set in the executive order requires the state to incrementally increase biodiesel amounts in its bulk diesel purchases: B5 by 2007, B10 by 2008 and B20 by 2010.

New Hampshire
HB152 originally called for a 1 percent biodiesel renewable fuels standard (RFS) in all home heating oil sold statewide, but the bill had little support. Legislators changed the bill, now calling for the creation of a commission to study biodiesel and its incorporation into heating oil and fuel supplies. Since the removal of the 1 percent mandate, HB152 passed out of both chambers.

Maine
Legislative Draft (LD) 197, another northeastern RFS, also had little support this session. LD197 called for a mandatory B20 bioheat blend used to warm state-owned buildings. The measure also required state-owned diesel vehicles to burn B20. The bill died in committee.

Oklahoma
Gov. Brad Henry signed SB 363, which included the Biofuels Development Act. It will encourage future processing, promotion, research, market development and distribution of biofuels.
 

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