Ohio Policy Data

Summary

June of 2012 saw the passing and signing of an Alternative Fuel Loans/Grants bill that was signed into law by the Governor..

Ohio passed grant legislation that is intended to provide up to 80% of the funding required to build infrastructure in fueling facilities including natural gas as of July 2011. However, as of April 2011, the program has not been funded, and as of July 2012 is listed as being active only until 9/10/2012..

Alternative fuel providers are allowed to put a symbol within their logo on signs on the Ohio Turnpike indicating that they provide alternative fuels.

The state passed a law requiring state agencies to purchase vehicles capable of using alternative fuels if the fuel "is reasonably priced and available".

Finally, Ohio passed a requirement for AFV conversion systems to comply with the Clean Air Act.

Click here to download the state profile sheet.

Vehicles

Current Estimated Fleet-based NGVs in Ohio (2013)

~309

Vehicles by Fuel Type

Stations

Current Fleet-based NGV Fueling Stations - 42 CNG / 4 LNG

Private NGV Fueling Stations - 17 CNG / 2 LNG

Fuel Taxes

Ohio Motor Fuel Taxation Website

CNG -None

LNG -28.0 ¢ / Gallon** - Reference

Gasoline - 28.0 ¢ / Gallon

Diesel - 28.0 ¢ / Gallon

**LNG is taxed based on the gasoline gallon equivalent, or 6.6 pounds of LNG for one gallon of motor fuel, unless a diesel gallon equivalent is established by the national conference on weights and measures. (Reference House Bill 59, 2013), and Ohio Revised Code 5735.012) and 5735.013)

See Current Legislation and Information Sheets for Tax information.

IFTA - IFTA taxes are applied to vehicles of 3+ axles, or weighing more than 26,000 pounds. IFTA tax tables can be found here.

Incentives

School Bus Replacement Grant Program

The Ohio Environmental Protection Agency administers the Clean Diesel School Bus Fund Retrofits Grant Program, which offers grants to retrofit school buses operating on diesel fuel. Priority is given to school districts in communities that do not meet the federal air quality standards for fine air particulates, and districts that employ additional measures, such as anti-idling programs, to reduce emissions from their school bus fleets.

Point of Contact
Carolyn Watkins
Chief, Office of Environmental Education; Administrator, Diesel Emission Reduction Grants
Ohio Environmental Protection Agency
Phone: (614) 644-3768
Fax: (614) 728-1275
carolyn.watkins@epa.state.oh.us
http://www.epa.ohio.gov/oeef/schoolbus.aspx

Alternative Fuel and Fueling Infrastructure Incentives

The Alternative Fuel Transportation Grant Program (Program) provides grants and loans for up to 80% of the cost of purchasing and installing fueling facilities offering E85, fuel blends containing at least 20% biodiesel (B20), natural gas; liquefied petroleum gas or propane; hydrogen; electricity; or any fuel that the U.S. Department of Energy determines, by final rule, to be substantially not petroleum. The Program also provides funding for up to 80% of the incremental cost of purchasing and using alternative fuel for businesses, nonprofit organizations, public school systems, and local governments. (Reference Senate Bill 315, 2012, and Ohio Revised Code 122.075)

Weight Restriction Increase for Natural Gas Vehicles

A vehicle fueled by compressed natural gas may exceed the gross vehicle weight restrictions by 2,000 pounds, except on the interstate system or a highway, road, or bridge that is subject to maximum weight restrictions. (Reference House Bill 51, 2013, and Ohio Revised Code 5577.044)

AFV Conversion Grant Program

In early 2017, the Ohio Environmental Protection Agency will administer a one-time, $5 million grant program to replace or convert Class 7 and Class 8 diesel or gasoline trucks to natural gas or propane trucks. Vehicles must be privately operated in Ohio at least 50% of the time. Maximum grant awards will be 50% of the fuel components of the new vehicle or 50% of the cost of the conversion parts, up to $25,000. Total grants to any recipient may not exceed $400,000. For more information, see the Alternative Fuel Vehicle Grants website. (Reference House Bill 390, 2016, and Ohio Revised Code 122.076

AFV Emissions Inspection Exemption

Vehicles powered exclusively by electricity, propane, or natural gas are exempt from state motor vehicle emissions inspections after receiving a one-time verification inspection. For more information, see the Ohio Environmental Protection Agency's E-Check website. (Reference Ohio Administrative Code 3745.26

Diesel Emissions Reduction Program

The Ohio Environmental Protection Agency administers a Diesel Emissions Reduction Grant Program for the purpose of reducing emissions from diesel engines in trucks, school and transit buses, marine fleets, and locomotives, as well as highway construction equipment. Eligible entities may use this funding for:

Projects related to certified engine configurations, including new, rebuilt, or remanufactured engine configurations the U.S. Environmental Protection Agency or the California Air Resources Board has certified;
The purchase or use of hybrid electric and alternative fuel vehicles that are allowed under U.S. Federal Highway Administration Congestion Mitigation and Air Quality (CMAQ) Improvement program guidance; or
Installation of verified technology including pollution control devices, retrofits, and development of truck stop electrification and auxiliary power units.
To be eligible for funding, fleets must operate at least 65% of the time in Ohio counties that have been designated nonattainment or maintenance for particulate matter (PM) 2.5 and/or ozone. Private fleets are eligible, but they must establish a public-private partnership with a government organization that is eligible for CMAQ funds in order to apply for funding. A minimum 20% non-state and non-federal funding match is required.
(Reference Ohio Revised Code 122.861

Point of Contact
Carolyn Watkins
Chief, Office of Environmental Education; Administrator, Diesel Emission Reduction Grants
Ohio Environmental Protection Agency
Phone: (614) 644-3768
Fax: (614) 752-0727
carolyn.watkins@epa.ohio.gov

Laws & Regs

Legislative Session Dates:	January 7 - No Set End Date
Legislature Website:	http://www.legislature.state.oh.us/

Alternative Fuel Signage

The Ohio Turnpike Commission allows businesses to place their logos on directional signs within the right-of-way of state turnpikes. An alternative fuel retailer may include a marking or symbol within their logo indicating that it sells one or more types of alternative fuel. Alternative fuels are defined as E85, fuel blends containing at least 20% biodiesel (B20), natural gas, propane, or hydrogen. (Reference Ohio Revised Code 125.831 and 5537.30)

Alternative Fuel Vehicle (AFV) Acquisition and Fuel Use Requirements

All new motor vehicles state agencies acquired, excluding law enforcement vehicles, must be capable of using alternative fuels and must use that alternative fuel if it is reasonably available and priced. Alternative fuel is defined as E85, fuel blends containing at least 20% biodiesel (B20), natural gas, propane, hydrogen, electricity, or any other fuel that the U.S. Department of Energy has determined is substantially not petroleum and would yield substantial energy use and environmental benefits. State flexible fuel vehicles must use at least 80,000 gallons of E85 per year by January 1, 2011, increasing by 5,000 gallons each year. Vehicles that operate on diesel fuel must use at least 1.4 million gallons of biodiesel per year by January 1, 2011, increasing by 100,000 gallons each year. Credits for vehicle acquisition will be issued in accordance with the Energy Policy Act of 1992. Any additional credits that an agency earns above their requirements may be sold, with proceeds going to the Ohio Biodiesel Revolving Fund to pay for the incremental cost of biodiesel for use in vehicles the state owns or leases. (Reference Ohio Revised Code 125.831-125.836 and Executive Order 2007-02)

Alternative Fuel Vehicle Conversion

Vehicle emission control systems may not be tampered with unless the action is for the purpose of converting a motor vehicle to operate on an alternative fuel and is in compliance with the standards adopted under the Clean Air Act Amendments. (Reference Ohio Revised Code 3704.16 and 3704.162)

Liquefied Natural Gas (LNG) Measurement

LNG is taxed based on the gasoline gallon equivalent, or 6.6 pounds of LNG for one gallon of motor fuel, unless a diesel gallon equivalent is established by the national conference on weights and measures. (Reference House Bill 59, 2013), and Ohio Revised Code 5735.012) and 5735.013)

Proposed Bills

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2016 Session - Proposed Legislation

HB-390

Amends the sales and use tax to include exemption for sale of natural gas by a municipal gas utility. This provision already exempts sales by a natural gas company. Reference - HB390 Bill History, Reference - HB390 Bill Text Status: 11/5/15 to Committee on Rules and Reference; 11/16/15 to the Committee on Ways and Means. Senate Ways & Means substitute on 5/25/16 includes grant program for CNG, LNG, and LPG vehicles with funding of $5 million for FY 2017 to offset 50 percent of the incremental cost of new vehicle or conversion cost up to $25,000 for vehicles and no more than $400,000 per entity. Vehicles must weigh at least 26,000 pounds and travel at least 50 percent of its miles in Ohio. House agreed to Senate version on 5/25/16; Enrolled 6/14/16 - Governor Kasich's website issued press release on 6/28/16 indicating this was signed into law. Status has not been updated on legislature's site.

2015 Session - Proposed Legislation

HB-53

Amends the state fleet procurement requirements relating to alternative fuel vehicles. The changes do not appear to be substantive. Reference - HB53 Bill History, Reference - HB53 Bill Text Signed by Governor 4/1/15

HB-176

Includes grants and tax credits for natural gas vehicles (propane also included) - LNG and CNG; grants are for public or non-profit entities with maximum of $500K per entity; tax credit are for new NGVs or converted NGVs and are worth 50% of incremental cost with the following caps: $5k for NGV less than 8,501 lbs. GVWR, $10K for 8,501 - 10,000 lbs., and $25K for NGV 10,001 lbs. & up. Also imposes motor fuel tax on CNG, initially at rate of 7 cent per DGE (6.38 lb. or 139.3 cu. ft.) and then later to 14 cent. Status: to Ways & Means 5/5/2015; substitute version 6/24/15 includes following changes: CNG, LNG and propane would be exempt from excise tax for 3 years and then subject to a gradually increased tax over time. Also provides reduction in sales tax of $500 for hybrid electric vehicles. Reference - HB176 Bill History, Reference - HB176 Bill Text Status: 9/16/15 Referred to the Finance Committee; 11/19/15 Finance Committee reports bill out and recommends passage.

HB-390

Amends the sales and use tax to include exemption for sale of natural gas by a municipal gas utility. This provision already exempts sales by a natural gas company. 11/5/15 to Committee on Rules and Reference. Reference - HB390 Bill History, Reference - HB390 Bill Text Status: 11/5/15 to Committee on Rules and Reference; 11/16/15 to the Committee on Ways and Means.

2014 Session - Proposed Legislation

HB-335

Creates the Green Fleets Loan Guarantee Program to guarantee the repayment of loans made to governmental entities and private businesses to fund the conversion of their fleet vehicles to run on natural gas fuel; applies the motor fuel tax to compressed natural gas; authorizes a temporary exemption from the motor fuel tax for purchasers of propane and compressed natural gas; requires the inspection of natural gas vehicles; requires inspection of natural gas vehicles; regulates filling stations. Inspections will provide for initial inspection and then every 3 years. OEM vehicles get initial exemption for first 3 years. Amends 2,000 weight exemption to include LNG vehicles (says liquid natural - needs to say liquefied natural gas and LPG if they want to add it here). Provision says CNG shall be measured in gallon equivalents. Tax rate of zero is initially set for first 3 years and then it goes to $0.093 for 4th year and $0.186 for the 5th year. Reference - HB335 Bill History, Reference - HB335 Bill Text

HB-336

Creates the Gaseous Fuel Vehicle Conversion Program; allows a tax credit against the income or commercial activity tax for the purchase or conversion (must be EPA compliant) of an alternative fuel vehicle including dual-fuel or bi-fuel. Tax credits worth 50% of incremental cost or maximum of $5K, $10K, or $25K depending on size of vehicle; creates a grant program for governmental entities and non-profit corporations - max. grant of $500k per organization; reduces the sales tax due on the purchase or lease of a qualifying electric vehicle by up to $500; applies the motor fuel tax to compressed natural gas based on GGE unit of 5.66 lbs. or 126.67 cubic feet; authorizes a temporary, partial motor fuel tax exemption for sales of compressed natural gas used as motor fuel; makes an appropriation of $16 million per year for 5 years. The fuel tax rate for CNG would be set at $0.07 per GGE for first 36 months, then $0.14 for next 2 years. Reference - HB336 Bill History, Reference - HB336 Bill Text

HB-517

Companion to SB 323Reference - HB517 Bill History, Reference - HB517 Bill Text

SB-323

Amends the motor fuel tax so that it is based partly on set rate and partly on rate tied to wholesale price of gasoline or diesel.Reference - SB323 Bill History, Reference - SB323 Bill Text

2013 Session - Proposed Legislation

HB-51

Large bill. Includes weight allowance of up to 2,000 pounds for CNG powered vehicles. But it also says this does not apply to a highway that is part of the Interstate System or roads or bridges that are subject to reduced weight restrictions. This change appears to have been added very late in process. Reference - HB51 Bill History, Reference - HB51 Bill Text 3/21/2013 conference agreed to; to the Governor 3/26/2013. Enacted 4/1/2013; Session Law No. 7

HB-59

Very large bill that includes some modifications to the current alternative fuel fund program to allow funds to be spent on cost of alternative fuel fleet conversion. Funds previously were limited to infrastructure. Also makes changes to the biodiesel fund and the program under EPAct for selling biodiesel credits. Reference - HB59 Bill History, Reference - HB59 Bill TextStatus: Passed on June 30 2013.

This state was last examined and updated in November, 2016.