The Ohio House Finance and Appropriations Committee will hear Rep. Sean O'Brien explain his HB 336, the Vehicle Conversion Bill, on November 26. HB 336 would allow a credit against the income or commercial activity tax for the purchase or conversion of an alternative fuel vehicle, including propane vehicle, to reduce the amount of sales tax due on the purchase or lease of a qualifying electric vehicle by up to $500, to apply the motor fuel tax to the distribution or sale of compressed natural gas, to authorize a temporary, partial motor fuel tax exemption from motor fuel tax, and to make an appropriation.
By Bob Downing, Beacon Journal staff writer
KENSINGTON: It took 11 months to build a cryogenic natural gas-processing plant in southern Columbiana County.
But the natural gas from Ohio’s nearby Utica shale wells zips through the sprawling state-of-the-art complex in perhaps five minutes.
Welcome to Utica East Ohio Buckeye Midstream’s Kensington complex off state Route 644.
Once a hilltop farm, the 60-acre complex is a maze of oversized pipes, valves, tanks and meters. It is an engineer’s wonderland. It is full of hustle and bustle, hundreds of workers, heavy construction equipment and, in places, ankle-deep mud where construction continues.
Ohio Environmental Protection Agency Director Scott Nally said after touring the facility: “I learned scale.”
Seeing the size of a plant like Kensington in person is a lot different than looking at plans on paper, he said.
The now-open processing plant is 1,000 feet long and is dominated by a 17-story stainless steel-alloy demethanizer tower, complete with a turbocharger to help compress natural gas.
The $400 million plant uses temperatures as low as 180 degrees below zero Fahrenheit to separate natural gas from liquids. The result is natural gas, or methane, that is purified and ready for the pipeline to be shipped to market
Two bills that would provide tax incentives for the development of alternative fuels, including propane, were introduced last week into the Ohio House of Representatives.
House Bill 335, introduced by Republican Rep. Jim Butler of Oakwood, would create the Green Fleets Loan Guarantee Program. It would guarantee repayment of loans made to governmental entities and private businesses to pay to convert their fleet vehicles to run on natural gas or propane.
H.B. 336, meanwhile, would create the Gaseous Fuel Vehicle Conversion Program. It would allow the state to grant a credit against the income or commercial activity tax for the purchase or conversion of an alternative fuel vehicle, both natural gas and propane, to reduce the sales tax due on the purchase or lease of an electric vehicle by up to $500 and other incentives related to the motor fuel tax. The bill was introduced by Democratic Rep. Sean O’Brien of Hubbard and Republican Rep. David Hall of Millersburg