State Legislative Best Practices in Support of Bioscience Industry Development

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State Activity on BIOFUELS Research & Facilities Development

According to the National Council of State Legislatures, some 26 states in the 2005-2006 session passed legislation to attract biorefineries or other companies specializing in industrial biotechnology. These states are investing millions of dollars in grants to universities and companies to conduct research and create an infrastructure to distribute this alternative energy source.

Biorefinery Construction and Expansion

Connecticut, Iowa, and Virginia each provides property tax relief for construction and operation of renewable energy plants and devices.

Michigan provides tax abatements for plants that manufacture biofuels and allows biofuels plants in rehabilitation districts where it provides exemptions from taxes for a set period of time.

Market Creation/Expansion

Ohio's Senate Bill 144 designates ethanol plants eligible for Ohio Air Quality Development Authority funding.

Missouri's Renewable Fuel Standard Act requires that most gasoline sold in the state be comprised of ten percent ethanol.

Indiana has become the first state to open a "Biofuels Station" with a biodiesel blender pump utilizing only Indiana grown biofuels. The island station offers ultra-low sulfur diesel, soy biodiesels, and E85 and E10 ethanol blends.

Ethanol from Cellulose

Advances in industrial biotechnology now make it possible to produce ethanol not just from corn but from agriculture residue and new dedicated energy crops composed of "cellulose biomass"

Ethanol from cellulose has the potential to greatly expand the volume and geographical reach of biofuel production. Several states have established programs to promote the cellulosic ethanol industry.

Kansas Senate bill 303 provides tax credits, accelerated depredation and property tax exemptions for cellulose ethanol plants.

New York established a $20 million grant program for construction of pilot cellulose ethanol refineries.

DISCLAIMER: The examples cited in this document are only a small fraction of policies state governments have put in place to grow the bioscience industry. It is not intended to be exclusive of other policies to develop technology-based industries.