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New state legislation was created to boost farmer-owned ethanol plants in Ohio. The law also provided incentives for all participants in the manufacturing of farm-based fuels. Sen. Larry Mumper, R-Marion, sponsored SB 144.

The bill provided a tax credit for investors in farmer-owned ethanol plants. The credit is for up to 50 percent of the investment, capped at $5,000.

A second part of the bill made use of Ohio's existing Air Quality Development Authority Bonds to encourage bio-fuel production. The goal of the bond program was to improve overall air quality in the state. Use of the bond money is exempted from property, sales and other taxes. Even interest income on loans is tax exempt for banks. This could result in lower interest rates for borrowers who invest in construction or operation of bio-fuel facilities.

Air Quality Development Authority Bonds have been available to other businesses since the 1970s. Now, commercial and/or farmer-owned investors for ethanol, soy-diesel or other bio-fuel businesses are eligible for the bond money.

OFBF and the Ohio Corn Growers Association were leaders in assisting Sen. Mumper with the creation and passage of this important legislation.

State legislative action was taken to end production and use of a major competitor to ethanol. HB 425 banned methyl tertiary butyl ether (MTBE) from being manufactured, imported, sold or distributed in Ohio.

MTBE is a petroleum-based product competitive with ethanol. Like ethanol, it is a gasoline additive used as both an oxygenate and an octane enhancer. However, MTBE has been found to be highly carcinogenic. Even small amounts leaking from underground fuel storage tanks have the potential of harming drinking water supplies.

MTBE is currently the additive of choice in 80 percent of the national markets required to have specially formulated gasoline to comply with the Clean Air Act. Banning its use is expected to translate into increased demand for ethanol.

OFBF was heavily involved in efforts to pass this and other ethanol-friendly legislation in the Ohio General Assembly.

Ohio Farm Bureau was proactive throughout the rule-making process of the Ohio Uniform Food Safety Code, which was adopted earlier this year. The code means all retail food establishments have the same food safety rules and are inspected by the local health department.

Farm Bureau worked to prevent unnecessary inspections, burdensome regulations and generally worked to keep the new rules from taking too much time or money from producers and marketers, without hampering the law's ability to help protect consumers.

In the past, restaurants and other food establishments, such as grocery stores and farm markets, were licensed and inspected by two different agencies, the Ohio Department of Health or the Ohio Department of Agriculture. Having two separate agencies conducting the licensing and inspections caused problems when, in some cases, these regulations were in conflict with each other, making it impossible to comply with both sets of rules.

SB 105 – Environmental Civil Actions – Places a five-year statute of limitations on environmental violations, making Ohio law consistent with federal law.

HB 426 – Eminent Domain – Requires state agencies to make every reasonable effort to provide a copy of the appraisal to the owners of real property appraised at more than $10,000, requires those agencies to update or obtain new appraisals under certain circumstances and specifies that their acquisition of property must be for a clearly defined public purpose that is to be achieved in a defined and reasonable period of time.

SB 193 – Linked Deposits – Increases the Agri-Linked Deposit program by $25 million.

SB 5 – Annexation Reform – Leveled the playing field for townships to provide them some protections from annexation by municipalities.

SB 242 – Tobacco Settlement Budget Bill – Modifies the administration of tobacco settlement funds to tobacco growers. Instead of using tobacco funds to balance the budget, growers will receive $33 million.