With summer driving season and potentially even higher gasoline prices quickly approaching, Ohio Gov. Bob Taft is renewing his fight against a glitch in federal highway funding rules that costs the state millions because of a high use of ethanol.

        Last month, Mr. Taft wrote U.S. Department of Transportation Secretary Norman Mineta, complaining about the problem, and he plans to raise the issue next week when he visits Washington, D.C.

        “Even though gas-tax revenues into the Highway Trust Fund are increasing, Ohio's percentage share is decreasing,” says the letter, dated April 23. “I am very concerned that Ohio is being "penalized' for using a product that is promoted and subsidized by explicit federal policy.”

        The most recent federal highway funding formula — hailed as an improvement for Ohio when it was enacted in 1998 — actually meant the state got $15 million less in federal highway tax dollars in 2000 than in 1999.

        In 2000, the state received $910 million in federal highway funds — in 1999, that figure was $925 million.

        The reason for the shortfall is federal gas excise-tax credits created to keep the ethanol industry afloat. Ethanol is a corn-based form of alcohol added to gasoline to reduce car emissions and therefore air pollution. And gas taxes are used to fund highway work.

        Since Ohio ranks second in ethanol usage and already gets less from the fund than it puts in because it is a “donor” state, its share of highway money from gas excise taxes is less than it could be.

        Combine Ohio's high ethanol usage, and the state is seeing its federal highway funding share shrink.

        However, Mr. Taft has said he is in favor of supporting the ethanol industry, and a site in Leipsic, a village in northwest Ohio's Putnam County, has been recommended for a $50 million ethanol plant.

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