An Arizona lawmaker has his sights set on bringing more alternative fuels to the state.
Rep. Tom Boone, R-Glendale, said he plans to introduce a bill during the 2006 regular legislative session that would encourage the use of biodiesel and provide incentives to produce it in the state.
“The time for biodiesel, and maybe biofuels in general, has come, in my opinion, because of the problems we’ve been having in the price of petroleum-based fuels,” Boone told the Arizona Capitol Times.
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.
The proposed legislation also would waive the 18-cent fuel tax on biodiesel sales for seven years.
In addition, it would set the property tax ratio for any biodiesel and ethanol production facilities at 10 percent instead of the usual commercial rate of 25 percent.
Arizona is not alone in its pursuit of alternative fuels. Illinois, Oklahoma and New Mexico recently have made commitments to increasing their state’s dependence on biofuels and Ohio is pursuing their own effort.
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 vehicle 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 Oklahoma, Gov. Brad Henry signed two pieces of legislation into law that encourage the manufacturing of alternative fuels in the state.
One bill 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 produced.
The second effort creates tax credits for producers of ethanol in Oklahoma and provides for certain eligibility requirements for those facilities. It also offers tax cuts on ethanol prices at the pump.
Gov. Bill Richardson has made a commitment to boosting New Mexico’s dependence on alternative fuels such as biodiesel and ethanol-blended gasoline.
Richardson said 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.
The Ohio House has approved a measure that would require all state agencies to use more alternative fuels.
The bill would require that 90 percent of new state vehicles be capable of using alternative fuels and that 90 percent of the entire fleet supply for state vehicles be alternative fuels by 2009.
It also would offer grants to fueling stations of up to 80 percent of the cost of switching a pump to an alternative fuel.
HB245 has been sent to the Ohio Senate for further consideration.