Ohio’s House of Representatives has passed House Bill 324, which supports a short-term tax credit of 5 cents per gallon for biofuels mixed with E15 or higher. State Representatives Riordan McClain and Roy Klopfenstein are pushing for this bill, which will make it easier for Ohioans to get this cheap, locally made fuel. The goal is to help both customers and the state’s ethanol business.

House Bill 324: Promoting E15 Adoption

House Bill 324 introduces a non-refundable tax credit incentivizing the sale of E15, a fuel blend containing at least 15% ethanol, across Ohio. The measure aims to stimulate consumer demand and expand the distribution network for biofuels, offering potential savings for drivers and supporting the state’s ethanol production facilities.

With Ohio being a significant player in ethanol production, the bill addresses the disparity between local production and domestic consumption. By encouraging the use of E15, legislators hope to tap into the state’s ethanol resources more effectively, reducing reliance on imports and boosting economic growth within the biofuels sector.

The bipartisan passage of House Bill 324 reflects broad support for initiatives promoting alternative fuels and enhancing energy sustainability. As the bill advances to the Ohio Senate, stakeholders anticipate further discussions on the economic and environmental benefits of increased E15 adoption and its potential impact on Ohio’s energy landscape.

House Bill 324: Potential Impact and Future Outlook

Advocates of the bill highlight the economic advantages of E15, noting its lower cost compared to traditional fuels and its compatibility with the majority of vehicles on the road today. By expanding access to E15, Ohio aims to empower consumers with more affordable fuel options while supporting local ethanol production and job creation.

The temporary nature of the tax credit, capped at $10 million or four years, underscores the legislative intent to stimulate short-term market growth while evaluating the long-term viability of E15 adoption. Proponents believe that incentivizing E15 sales will not only benefit Ohio’s economy but also contribute to reduced greenhouse gas emissions and greater energy independence.