Oklahoma Gov. Brad Henry has signed two pieces of legislation into law
that encourage the manufacturing of alternative fuels in the state.
One law – formerly HB1398 – sponsored by Rep. James Covey, D-Custer
City, provides credit against the tax imposed for any biodiesel facility that
produces at a rate of 25 percent of its “originally-designed capacity.” A
20-cent-per-gallon tax credit would be given for every gallon of biodiesel
A company must build and begin operating a biodiesel plant before it
would be granted the tax credit. In addition, facilities must specialize in
producing biodiesel derived from organic materials, including animal fats and
Covey said in a written statement a total of $125 million will be
available to finance the tax credits, which will be available for five years
beginning Dec. 31, 2007.
Biodiesel is an alternative fuel made from agricultural products such
as grains or animal fat. It can be used alone or blended with petroleum-based
diesel and used in diesel engines.
have told Land Line that fuel
meeting the federal standard for biodiesel can be used in any diesel engine
said he also believes the fuel will eventually reduce the nation’s dependence
on foreign oil by extending the nation’s domestic supply of fuel.
separate effort creates tax credits for producers of ethanol in Oklahoma and
provides for certain eligibility requirements for those facilities.
law, previously HB1556, also offers tax cuts on ethanol prices at the pump.
Sooner State is not alone in its pursuit of alternative fuels. Illinois and New
Mexico recently have made commitments to increasing their state’s dependence on
Illinois Gov. Rod Blagojevich signed a bill into law promoting the use
of biodiesel by government-owned diesel vehicles.
The new law requires any government-owned diesel vehicles to use a 2
percent biodiesel blend, but only under certain conditions. For example, use of
the blend is required only if the state vehicle is fueling at a bulk, central
fueling facility where the blend is available.
In New Mexico, Gov. Bill Richardson has made a commitment to boosting
the state government’s dependence on alternative fuels such as biodiesel and
Richardson said in a written statement earlier this month he will issue
an executive order to require that 15 percent of the fuel used by state
vehicles comes from renewable sources by the end of the decade.