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A bill that aims to boost biofuel use in Ohio is gaining momentum. House Bill 245, sponsored by Rep. Steve Reinhard (R-Bucyrus), has passed committee and moved on to the House floor.

The legislation would establish an infrastructure in Ohio for the use of biofuels such as corn and soy biodiesel.

Reinhard said the bill is environmentally friendly, while providing an outlet for more crops grown in Ohio and reducing dependence on foreign oil.

Keith Houts, president of the Ohio Corn Growers Association, testified in favor of the bill before the House Transportation, Public Safety and Homeland Security Committee. He discussed the benefits of E85, a blend of 85 percent ethanol, 15 percent petroleum.

Houts said E85 is good for the environment, costs less than gasoline and is available at the wholesale level, but only one gas station in Ohio carries the fuel.

"This bill will help put the next piece of the puzzle in place - E85 pumps at retail fueling stations," he said.

Ohio Soybean Association President Rob Joslin said it only makes sense to enact the bill because it supports Ohio agriculture and encourages job creation and economic development.

Among the bill's provisions:

• At least 90 percent of the total number of new vehicles purchased by state agencies must be capable of using alternative fuels, and at least 30 percent of fuel purchased for state agency fleets must be an alternative fuel.

• When awarding contracts that require the procurement of vehicles, state agencies must give preference to qualified bidders who will fulfill the contract through use of vehicles that use ethanol made from Ohio corn or biodiesel made from Ohio soybeans or corn as a fuel component.

• A program will be established to provide grants to businesses, non-profit organizations, public school systems or local governments for the purchase of alternative fuel and refueling facilities.

• Tax credits are created for gas stations for the sale of ethanol-blended gasoline and the installation of ethanol fuel pumps or conversion of existing pumps.

"The next step will be to identify a source of funding," said Rocky Black, OFBF director of legislative affairs. "About 5 million per year is needed to jump start the retail use of ethanol."

He said since no money was set aside for the bill in the state budget, legislators will need to draw from existing funds.

An amendment to the bill appropriates $150,000 per year to make grants for the purchase of alternative fuels and refueling stations, but Black said the figure is not enough in light of the bill's goals.

Reinhard plans to seek additional funding from the Ohio Department of Transportation, which will receive $150 million in new federal tax dollars. Reinhard said the money is being returned to Ohio from federal taxes previously collected on biofuels used in the state.

He said the goal is not to make a statewide mandate but to establish an infrastructure by providing the industry with incentives.

"Especially if the price of petroleum continues to increase, we won't need a mandate. (The infrastructure) will be able to stand on its own," he said.