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The state's biennial budget allocation of $4.5 million in alternative fuel programs is expected to make soy biodiesel and E85 ethanol more widely available to consumers, industry experts say.

Ohio Soybean Association President Mark Watkins said the money allocated is a clear indication of the high priority the state places on promoting alternative energy sources.

"It is exciting to know that soy biodiesel and E85 are leading the way," Watkins said.

Ohio has 43 E85 refueling stations, according to the most recent data from the National Ethanol Vehicle Coalition, and 51 biodiesel retail stations, according to the Ohio Soybean Council.

To encourage the sale of alternative fuels, which until they become more widely available will continue to cost more than regular fuel, retailers of E85 Ethanol or B20 soy biodiesel will be eligible for a tax credit of 15 cents per gallon in 2008 and 13 cents per gallon in 2009.

The credits will be paid directly to the retailer.

"Each state needs to offer some incentive to retailers. Competition is the key with everything. That will bring the price down," said Michelle Kautz, deputy director of the National Ethanol Vehicle Coalition.

In addition to the Ohio tax credit, Kautz said the federal government is also offering a 30 percent tax credit to fuel retailers for their infrastructure needs in order to sell alternative fuels.

"I do think that Ohio, with the funds they're allotting, are moving forward quite quickly," she said.

On top of Ohio's tax credit, Kautz said the coalition is also seeking $2 million from the federal government to establish greater E85 availability across the nation.

Tom Fontanan, Ohio Soybean Council director of new use development, said all of these initiatives combined are sure to boost alternative fuel availability.

"The infrastructure grant program is designed to encourage retailers to begin selling soy biodiesel by helping with the cost of equipment, such as pumps and tanks," he said.

Another grant program outlined in the biennial budget is designed to offset the incremental cost of soy biodiesel for use in school buses.

All of the grant programs will be administered by the Ohio Department of Development.

"It is exciting to see the high level of confidence our state leadership has put into this alternative fuel," said Ohio Soybean Council Chairman Dan Corcoran.

Contact this reporter at (937) 225-9338 or

kmcallister@DaytonDailyNews.com.