By 2009, the United States will have the capacity to produce 7 billion gallons of ethanol annually, primarily from corn. However to displace 30 percent of today's petroleum consumption (the current production goal for 2030), the nation needs to produce 60 billion gallons of ethanol each year. This production target can't be met by corn alone and requires a contribution from a larger portion of U.S. agricultural producers.

Find information here on research currently being conducted throughout Oklahoma to expand the number of feedstocks available for ethanol production; building biodiesel and ethanol plants, regulations and permitting, tax credits and other production incentives, and growing energy crops.

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Regulations & Permitting for Biodiesel and Ethanol Plants

To produce biodiesel and ethanol in Oklahoma, production facilities must meet state and federal requirements. At the state level, the two permitting agencies are the Oklahoma Department of Environmental Quality (DEQ) and the Oklahoma Department of Agriculture, Food & Forestry. At the federal level, the two permitting agencies are the U.S. EPA and the IRS.

Permitting contact at the state Department of Agriculture: Joe Privett, joep@oda.state.ok.us, 405-850-8570.

Permitting contact at the state DEQ: Phillip Fielder, 405-702-4180.

Ethanol production facilities consume and discharge large amounts of water, to discuss these water issues, contact Ed Dihrberg, Department of Environmental Quality, 405-702-8184.

Permitting Biodiesel Production Facilities-Fact Sheet

Permitting Ethanol Production Facilities-Fact Sheet

Oklahoma Fuel Alcohol Act

(Note: All biodiesel producers must be members of the National Biodiesel Board before they can receive production approval from the U.S. EPA.)

Biodiesel Handling and Use Guide-4th Edition A guide for those who blend, store, distribute, and use biodiesel and biodiesel blends. Released by the National Renewable Energy Laboratory in 2008, it provides basic information on the proper and safe use of biodiesel and biodiesel blends in compression-ignition engines and boilers, and it is intended to help fleets, individual users, blenders, distributors, and those involved in related activities understand procedures for handling and using biodiesel fuels.

Funding & Incentives for Biofuel Producers

For more information or to take advantage of these state and federal incentives to start or expand your biofuel project, contact the Oklahoma Department of Commerce Fast Forward team today. 800-588-5959

You can also click the links below or visit www.OKcommerce.gov/incentives for more detail, application forms, guidelines, and to download the 2010 Oklahoma Business Incentives and Tax Information Guide.

(Note: Although several of the credits, exemptions, and refunds listed here can be used in combination for a single project, some are "either/or." This list gives you options to consider.)

• Quality Jobs or Investment/ New Jobs Tax Credit
• Freeport Inventory Benefits 
• Training for Industry Program
• 5-year Ad Valorem Tax Exemption (manufacturer) 
• Tax Increment Financing 
• Ethanol Fuel Retailer Tax Credit 
• Biodiesel Production Facility Tax Credit 
• Alternate Energy Sources Tax Credit 
• Income Tax Credit for Investment in Oklahoma Producer- Owned Agriculture Processing 
• Agricultural Commodity Processing Facility (owner) Income Tax Exemption 
• Recycling, Reuse and Source Reduction Incentive Ace (qualify as hazardous waste) 
• Small Business Administration Guarantee Fee Tax Credit 
• Tax Credit for Provision of Childcare 
• Construction Materials Sales Tax Refund 
• Manufacturer's Sales Tax Exemption
  • On Machinery & Equipment
  • On Goods Consumed in Manufacturing
  • On Energy Used in Manufacturing

State of Oklahoma Alternative Fuel Incentives
State of Oklahoma Alternative Fuel Incentives

Good sources for federal incentives, credits, and funding opportunities include the following:

National Biodiesel Board-Tax Credits
National Renewable Energy Laboratory (NREL)
Renewable Fuels Association
U.S. Department of Agriculture Biofuels Program
U.S. Department of Energy-Tax Breaks Section

Grow Energy Crops

While there isn't yet a statewide network or directory of energy crop producers, here are a few key resources for information on feedstock research, crop location and availability, market and demand data, and how to get started growing energy crops:

• Oklahoma Department of Agriculture, Food & Forestry (Contact: Duane Harrel, 405-522-5600-general information)
• Oklahoma Farm Bureau
• Renewable Fuels Association
• Bioenergy Feedstock Information Network (BFIN)

 Feedstock of the Future

Biofuels such as ethanol and biodiesel come from biomass, which typically includes agricultural crops such as corn and soybeans. However, current research focuses on the use of cellulosic feedstock, which can be grown in a variety of geographic regions.

Cellulosic energy crops include native grasses such as switchgrass, wood and wood residues, sugarcane, and crop residue from corn, wheat, and barley. The Samuel Roberts Noble Foundation (Ardmore, OK) received federal funding to accelerate the development of alternative energy by improving cellulosic feedstock conversion efficiency, increasing the usable amount of carbohydrates for conversion into ethanol, and lowering production costs.