Ohio Propane Laws and Incentives

State Incentives

School Bus Retrofit Grant Program

The Ohio Environmental Protection Agency administers the Clean Diesel School Bus Fund Retrofits Grant Program, which offers grants for retrofits for 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.

Alternative Fuel and Fueling Infrastructure Grants

The Alternative Fuel Transportation Grant Program provides funding for the purchase and installation of E85 and biodiesel fueling and blending facilities. The maximum grant per retail facility for new construction is $40,000 per fuel type at each location, $10,000 for fueling facility conversions, and $5,000 for marketing existing and new facilities. Clean Fuels Ohio is available to assist retailers in evaluating their suitability for these grants, preparing applications, and helping with direct postcard educational mailings. This program will expire in June 2009. Funds are also available for the purchase and use of alternative fuel by businesses, nonprofit organizations, public school systems, and local governments. (Reference Ohio Revised Code 122.075)

State Laws and Regulations

Alternative Fuel Vehicle (AFV) Acquisition and Fuel Use Requirements

All new motor vehicles acquired by state agencies must be capable of using alternative fuels and must use that alternative fuel if it is reasonably available and priced. State flexible-fuel vehicles must use at least 60,000 gallons of E85 per calendar year, increasing by 5,000 gallons per year after January 1, 2007. Vehicles that operate on diesel fuel must use at least one million gallons of biodiesel, increasing by 100,000 gallons per year after January 1, 2007. Credits for vehicle acquisition will be issued in accordance with the federal Energy Policy Act of 1992. Any additional credits that an agency earns above their requirements may be sold, with proceeds going to the Biodiesel Revolving Fund to pay for the incremental cost of biodiesel for use in vehicles owned or leased by the state. (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)