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State and Federal Incentives and Laws

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Wisconsin

Biodiesel Fuel Use Incentive

The Wisconsin Department of Public Instruction (DPI) may provide financial aid to school districts that use biodiesel fuel for school bus transportation to cover the incremental cost of using biodiesel as compared to the cost of petroleum diesel fuel. If, in any fiscal year, insufficient funds are available to provide school districts with the full amount of reimbursement for which a school district qualifies, DPI will prorate the available funds among the entitled school districts on a per pupil basis. (Reference Wisconsin Statutes 121.575)

Alternative Fuel Tax Refund for Taxis

A person using alternative fuel to operate a taxi used to transport passengers may be reimbursed for the amount of Wisconsin fuel tax paid. Refund claims must be filed within one year of the date the fuel is purchased and must be for a minimum 100 gallons of alternative fuel. (Reference Wisconsin Statutes 78.75(1m)(a)1)

State Energy Plan

In order to become a leader in the production of renewable energy, the state of Wisconsin aims to generate 25% of its transportation fuels from renewable sources by the year 2025. The Office of Energy Independence (OEI) is responsible for promoting this goal as well as the state's biofuels industry. OEI will serve as a single-point of contact for citizens, businesses, local units of government, and non-governmental organizations pursuing biofuels development, energy efficiency, and energy independence. The office will also identify federal funding opportunities and serve as the State Energy Office. (Reference Executive Order 192, 2007)

Regional Biofuels Promotion Plan

Wisconsin has joined Indiana, Iowa, Kansas, Michigan, Minnesota, Ohio, and South Dakota in adopting the Energy Security and Climate Stewardship Platform Plan (Platform) (PDF 2 MB), which establishes shared goals for the Midwest region, including increased biofuels production and use. Specifically, the Platform sets the following goals:

  • Produce commercially available cellulosic ethanol and other low-carbon fuels in the region by 2012;
  • Increase E85 availability at retail fueling stations in the region to 15% of stations by 2015, 20% by 2020, and 33% of all fueling stations in the region by 2025;
  • Reduce the amount of fossil fuel that is used in the production of biofuels by 50% by 2025;
  • By 2025, at least 50% of all transportation fuels consumed by the Midwest will be from regionally produced biofuels and other low-carbon transportation fuels.

The Platform also establishes a regional biofuels corridor program. The program directs state transportation, agriculture, and regulatory officials to develop a system of coordinated signage across the region for biofuels and advanced transportation fuels and to collaborate to create regional E85 corridors. The program requires standardized fuel product coding at fueling stations as well as increased education for retailers about converting existing fueling infrastructure to dispense E85. The state transportation, agriculture, and regulatory officials are required to report their corridor implementation plans to the Midwest Governors Association by April 1, 2008.

Petroleum Use Reduction

The Wisconsin Department of Administration (DOA) is directed to require through its fleet management policy that all state agencies reduce the use of petroleum-based gasoline in state-owned vehicles by 20% in 2010 and 50% in 2015, and reduce the use of petroleum-based diesel fuel for vehicles that operate on diesel by 10% in 2010 and 25% in 2015. (Reference Executive Order 141, 2006)

Renewable Fuels Use and Promotion

The Wisconsin Department of Agriculture (DOA) is directed to develop an awareness plan designed to facilitate the use of renewable fuels in the State's flexible fuel vehicle (FFV) fleet. The plan should ensure the following: that all FFVs in the State's fleet are identifiable; that all state employees driving FFVs are aware of the renewable fuel refueling stations nearby; and that all state employees strive to use renewable fuels when operating FFVs and diesel powered vehicles in the fleet, whenever practical and cost effective. The DOA and the Wisconsin Department of Agricultural, Trade and Consumer Protection are also directed to actively pursue the establishment of additional renewable fuel refueling facilities at public retail outlets. (Reference Executive Order 141, 2006)

Biodiesel Definition

Effective July 1, 2007, biodiesel is defined as a fuel that is comprised of monoalkyl esters of long chain fatty acids derived from vegetable oils or animal fats, either in pure form or mixed in any combination with petroleum-based diesel fuel. The definition of biodiesel is expanded for purposes of existing provisions that encourage the use of alternative fuels in state-owned vehicles. (Reference Wisconsin Statutes 16.045(1)(c))

Biodiesel Labeling Requirement

Sellers of biodiesel fuel are prohibited from advertising or offering for sale fuel labeled as pure biodiesel unless the fuel 1) contains no other type of petroleum product, 2) the fuel is registered as biodiesel fuel with the federal government, and 3) the fuel meets all of the applicable requirements of the American Society for Testing and Materials (ASTM). Sellers are also prohibited from selling fuel labeled as a biodiesel blend unless the fuel contains at least 2% pure biodiesel fuel and meets all applicable ASTM requirements that are applicable to biodiesel blends. (Reference Wisconsin Statutes 168.14(2))

Biofuels Development

Executive Order 101 directs the Secretaries of various state agencies to establish members in the Consortium on Biobased Industry to recommend policy and commercialization strategies for state goals that promote development and use of biobased products and bioenergy using federal and state programs, in part to reduce Wisconsin's dependence on foreign oil. Refer to the Consortium on Biobased Industry Web site to view the final report on findings and recommendations submitted to the Governor. (Reference Executive Order 101, 2005)

Alternative Fuel Vehicle (AFV) Acquisition Requirements

The Wisconsin Department of Administration (DOA) must require all state employees to utilize hybrid electric vehicles or vehicles that operate on gasohol or alternative fuel for all state-owned or state-leased motor vehicles whenever such utilization is feasible. The DOA must also encourage the use of gasohol and alternative fuels by officers and employees who use personal motor vehicles on state business and by residents of Wisconsin in general. (Reference Wisconsin Statutes 16.045)

Alternative Fuels Tax

A state excise tax is imposed on the use of alternative fuels. Alternative fuels include liquid petroleum gas (LPG) and compressed natural gas (CNG). The current tax rate on LPG is $0.226 per gallon, and the tax rate on CNG is $0.247 per gallon. No tax is imposed on alternative fuels used by vehicles for urban mass transportation of passengers. (Reference Wisconsin Statutes 78.40)

Alternative Fuel Tax Exemption

No county, city, village, town, or other political subdivision is allowed to levy or collect any excise, license, privilege, or occupational tax upon motor vehicle fuel or alternative fuels, or upon the buying, selling, handling, or consuming of motor vehicle fuel or alternative fuels. (Reference Wisconsin Statutes 78.82)

Alternative Fuel License

Any person acting as an alternative fuels dealer must hold a valid alternative fuels license and certificate. Except for alternative fuels delivered by an alternative fuels dealer into a fuel supply tank of any motor vehicle in the state, no person may use alternative fuels in the state unless the person holds a valid alternative fuels license issued by the Wisconsin Department of Administration or unless the alternative fuel has been delivered by an authorized supplier. (Reference Wisconsin Statutes 78.47)