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Early last week, Representatives Bob Peterson (R-Sabina) and Roy Klopfenstein (R-Haviland), officially introduced the House Bill 1036. The bill aims to bring biomass-based diesel production back to the Buckeye State using a production tax credit. The Ohio Soybean Association (OSA) worked with both representatives to ensure this bill will have the maximum benefit to soy-based biofuel production, providing markets for Ohio soybeans that have not existed since biodiesel production left the state in 2022.

“I want to thank Reps. Peterson and Klopfenstein for their work to introduce this bill,” said OSA President and Pickaway County soybean farmer Bennett Musselman. “Not only will this bill help farmers build new markets for their soybeans, but introducing more biofuels production in our state will enhance the U.S. energy sector and help prevent the diesel fuel market from being so volatile.”

The bill comes at a time when fuel relief is desperately needed, with current average diesel prices in Ohio hovering around $6.29 per gallon. In states where soy-based biofuel production is well-established, like Missouri, recent B50 blends (50 percent biodiesel) at the wholesale level have been more than $2 cheaper than conventional diesel.

“The additional investment in crush we’ve seen in recent years from companies like Cargill and Louis Dreyfus Company have really changed what is possible for soy-based biofuels production in Ohio,” Klopfenstein explained. “We will have plenty of soybean oil to use for biodiesel and renewable diesel production, which makes now the perfect time to bring this kind of manufacturing back to Ohio.”

According to a recent study by S&P Global, the addition of just one 60-million-gallon biodiesel production facility in Ohio could reach a total economic impact of roughly $5 billion in output and activities cumulatively by 2040, with an annual average of $362 million across construction and operation phases. 

“These numbers validate what we already know to be true; the impact of biodiesel production reaches far beyond agriculture,” Peterson said. “This bill is good for our farmers and rural communities, but it also creates opportunities for Ohio’s trucking, rail and marine industries, strengthening our economy as a whole and lowering costs for all Ohio citizens.”

To learn more about the legislation or view the full bill text, visit www.ohiohouse.gov/legislation/136/hb1036.