Wisconsin Incentives and Laws

Last Updated September 2008

Wisconsin is the home of Wisconsin Clean Cities - Southeast Area, Inc., Coalition (www.wicleancities.org). Coordinator contact information is listed in the Points of Contact section.

State Incentives

Ethanol and Biodiesel Fueling Station Tax Credit

Beginning after December 31, 2007, and before January 1, 2018, an ethanol or biodiesel fueling pump credit is available for 25% of the amount paid in the taxable year to install or retrofit fueling stations located in Wisconsin that dispense motor vehicle fuel consisting of at least 85% ethanol or at least 20% biodiesel fuel. The maximum credit amount that may be claimed in a taxable year is $5,000 for each fueling station that has installed or retrofitted a pump. Motor vehicle fuel means gasoline or diesel fuel. The credit must be claimed within four years of the tax return. (Reference Senate Bill 40, 2007, and Wisconsin Statutes 71.21(4), 71.26(2)(a), 71.34(1)(g), 71.45(2)(a)10, 77.92(4), 71.28(5j), 71.30(3)(ed), 71.47(5j), and 71.49(1)(ds))

Vehicle Battery and Engine Research Tax Credits

For taxable years beginning after June 30, 2007, any corporation involved in qualified research is allowed a tax credit equal to 10% of the corporation's qualified research expenses incurred in this state for the taxable year. Qualified research only includes the design and manufacturing of energy efficient lighting systems, building automation and control systems, and automotive batteries for use in hybrid-electric vehicles that reduce the demand for natural gas or electricity or improve the efficiency of its use. Qualified research also includes research related to designing internal combustion engines (including substitute products such as fuel cell, electric, and hybrid drives) for vehicles, including expenses related to designing vehicles that are powered by such engines and improving production processes for such engines and vehicles.

Corporations may also claim tax credits equal to 5% of the amount paid or incurred by that corporation during the taxable year to construct and equip new facilities or expand existing facilities used in Wisconsin for qualified research.

(Reference Wisconsin Statutes 71.28(4)(ab 2), 71.28 (ad 2 and 3), and 71.28(5)(ad))

Biodiesel Fuel Use Incentive

The Wisconsin Department of Public Instruction (DPI) may provide financial aid to school districts that use biodiesel fuel in school buses 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)

Idle Reduction Grant Program

The Wisconsin Department of Commerce provides grants to freight motor carriers headquartered in Wisconsin to purchase and install idle reduction units on heavy-duty tractor trucks produced in Model Year 1999 or later. Eligible applicants will receive a reimbursement of up to 50% for the cost of idle reduction equipment and installation. The application period opens on July 1 of every year; grants are not available for idle reduction equipment purchased or installed prior to July 1 in the year the application is submitted. The program will award $2 million per year in grants for the 2007-2008 and 2008-2009 award periods, and $1 million per year in grants for the 2009-2010 and 2010-2011 award periods. Other conditions may apply. (Reference Wisconsin Statutes 560.125)

Point of Contact

Jean Beckwith
Environmental Grants Specialist
Wisconsin Department of Commerce, Diesel Truck Idling Reduction Program
Phone (608) 261-2517
Fax (608) 264-6151
jean.beckwith@wisconsin.gov
http://www.commerce.wi.gov/dieselgrantprogram

State Laws and Regulations

State Energy Plan

The state of Wisconsin aims to generate 25% of its transportation fuels from renewable sources by the year 2025 in order to become a leader in the production of renewable energy. Under this effort, the Office of Energy Independence (OEI) was created and 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, and Wisconsin Statutes 16.956)

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 were required to report their corridor implementation plans to the Midwest Governors Association by April 1, 2008.

Idle Reduction Weight Exemption

Any vehicle or combination of vehicles equipped with fully functional idle reduction technology may exceed the state's gross and axle weight limits by up to 400 pounds (lbs) to compensate for the additional weight of the added idle reduction technology. To be eligible for the weight exemption, the vehicle operator must be able to prove, by written certification, the weight of the idle reduction technology and, by demonstration or certification, that the idle reduction technology is fully functional at all times. The weight exemption cannot exceed 400 lbs or the certified weight of the unit, whichever is less. (Reference Wisconsin Statutes 348.15 (3)(f))

Renewable Fuels Use and Promotion

The Wisconsin Department of Agriculture, Trade and Consumer Protection (DATCP) 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 fueling 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 DATCP is also directed to actively pursue the establishment of additional renewable fueling facilities at public retail outlets.(Reference Executive Order 141, 2006)

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)

Biodiesel Definition

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

Retailers 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 ASTM specifications. Retailers are also prohibited from selling fuel labeled as a biodiesel blend unless the fuel contains at least 2% pure biodiesel fuel, the blend percentage is identified, and the fuel meets the ASTM standards 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 the Corsortium on Biobased Industry to recommend policy and commercialization strategies for state goals that promote the development and use of biobased products and bioenergy using federal and state programs and reduce Wisconsin's dependence on foreign oil. See the Consortium on Biobased Industry Web site for 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) 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)

Low Emission Vehicle (LEV) Acquisition Requirement

The Clean Fuel Fleet Program (CFFP), administered by the Wisconsin Department of Natural Resources, affects the six-county (Milwaukee, Waukesha, Ozaukee, Washington, Racine, and Kenosha) severe ozone non-attainment area. The CFFP requires fleets in Southeastern Wisconsin to purchase a specific percentage of LEVs. The CFFP applies to both public and private fleets based on fleet size and vehicle weight. Fleets can earn credits and are responsible for calculating and trading.

Point of Contact

Jessica Lawent
Air Quality Program Specialist
Wisconsin Department of Natural Resources, Clean Fuel Fleet Program
Phone (414) 263-8653
Fax (414) 263-8550
jessica.lawent@wisconsin.gov
http://www.dnr.state.wi.us/org/aw/air/reg/cff/cff.htm

Point of Contact

Muhammed Islam
Vehicle Emissions Engineer
Wisconsin Department of Natural Resources, Clean Fuel Fleet Program
Phone (608) 264-9219
Fax (608) 267-0560
muhammed.islam@wisconsin.gov
http://www.dnr.state.wi.us/org/aw/air/reg/cff/cff.htm

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)

Liquefied Petroleum Gas (LPG) Supplier Requirements

A retail supplier may only distribute LPG if licensed by the Wisconsin Department of Commerce. The license must be renewed every two years. In addition, the retail supplier of LPG must also provide and maintain liability insurance. Penalties for noncompliance may apply. (Reference Senate Bill 273, 2008, and Wisconsin Statutes 101.16)

Neighborhood Electric Vehicle (NEV) Access to Roadways

An NEV is defined as a self-propelled motor vehicle that has successfully completed the NEV America test program conducted by the U.S. Department of Energy, and conforms to the definition and requirements in the Federal Motor Vehicle Safety standards for low-speed vehicles under Title 49 of the Code of Federal Regulations, section 571. A golf cart is not considered an NEV. The governing body of any city, town, or village may by ordinance allow the operation of an NEV on a roadway that has a speed limit of 35 miles per hour or less. (Reference Wisconsin Statutes 349.26)

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.

Point of Contact

Bob Reagan
Project Manager
We Energies
Phone (414) 221-2284
Fax (414) 221-2851
bob.reagan@we-energies.com

Points of Contact:

NAME/EMAIL/TITLE	AGENCY	PHONE/FAX
Francis Vogel Clean Cities Coordinator	Wisconsin Clean Cities - Southeast Area, Inc.	Phone:(414) 221-4958 Fax:(414) 221-2851
Brad Beauchamp Project Manager	U.S. Department of Energy, National Energy Technology Laboratory	Phone:(412) 386-7322 Fax:
Jessica Lawent Air Quality Program Specialist	Wisconsin Department of Natural Resources, Clean Fuel Fleet Program	Phone:(414) 263-8653 Fax:(414) 263-8550
Muhammed Islam Vehicle Emissions Engineer	Wisconsin Department of Natural Resources, Clean Fuel Fleet Program	Phone:(608) 264-9219 Fax:(608) 267-0560
Jean Beckwith Environmental Grants Specialist	Wisconsin Department of Commerce, Diesel Truck Idling Reduction Program	Phone:(608) 261-2517 Fax:(608) 264-6151
Bob Reagan Project Manager	We Energies	Phone:(414) 221-2284 Fax:(414) 221-2851
Maria Redmond Biofuels Sector Specialist	State of Wisconsin, Office of Energy Independence	Phone:(608) 266-1521 Fax:
John Reisel Director, University of Wisconsin-Milwaukee, Center for Alternative Fuels	Wisconsin Alternative Fuels Task Force	Phone:(414) 229-4671 Fax:(414) 229-6958
Scott Benson Transportation Specialist, Great Lakes Region	U.S. General Services Administration	Phone:(312) 886-8682 Fax:(312) 886-0989