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Wisconsin Natural Gas Laws and Incentives


State Incentives

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 Laws and Regulations

Petroleum Use Reduction

The Wisconsin Department of Administration 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% by 2010 and 50% by 2015, and reduce the use of petroleum-based diesel fuel for those vehicles that operate on diesel by 10% by 2010 and 25% by 2015. (Reference Executive Order 141, 2006)

Alternative Fuel Vehicle (AFV) Acquisition Requirements

The Wisconsin Department of Administration (DOA) requires all state employees to utilize hybrid electric vehicles or vehicles that operate on gasohol or alternative fuels for all state-owned or state-leased motor vehicles whenever such utilization is feasible. The DOA also encourages 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 the U.S. government or its agencies (when presented with a valid exemption certificate) or vehicles used 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 on motor vehicle fuel or alternative fuels, or on the purchase, sale, handling, or consumption 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 issued by the Wisconsin Department of Administration. Except for alternative fuels that are 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 or the alternative fuel has been delivered by an authorized supplier. (Reference Wisconsin Statutes 78.47)

Utilities/Private Incentives

Natural Gas Infrastructure and Vehicle Technical Assistance

We Energies provides project management for the development of compressed natural gas (CNG) fueling stations and to fleets purchasing natural gas vehicles (NGV). The company works with the Wisconsin Clean Cities - Southeast Area, Inc., Coalition and other grant sources to develop outside funding to assist with such projects. We Energies also offers technical assistance regarding CNG fueling stations and NGVs.