August 31, 2009 - Introduced by Joint Legislative Council. Referred to
Committee on Renewable Energy and Rural Affairs.
AB408,2,15
1An Act to repeal 66.1103 (2) (k) 18. and 93.46 (3);
to renumber and amend
216.956 (2) (c), 93.46 (1) (d) and 560.126 (1);
to amend 16.04 (1) (a), 16.956 (3)
3(a) and (c), 20.115 (4) (c), 20.115 (4) (r), 70.32 (2) (c) 1g., 71.07 (5j) (b), 71.28 (5j)
4(b), 71.47 (5j) (b), 73.03 (50) (intro.), 93.46 (2) (a), 96.01 (3) and 96.02; and
to
5create 15.137 (6), 16.045 (1) (cm) and (f), 16.045 (4m) and (6), 16.954, 16.956
6(1) (bg) and (br), 16.956 (2) (c) 2. and 3., 16.956 (3) (f), 16.956 (4), 20.115 (3) (im),
726.42, 70.32 (2) (c) 1i., 70.32 (2) (c) 1k., 71.07 (5j) (a) 2d., 71.07 (5j) (a) 2m., 71.28
8(5j) (a) 2d., 71.28 (5j) (a) 2m., 71.47 (5j) (a) 2d., 71.47 (5j) (a) 2m., 73.0303, 78.005
9(13j), 78.01 (2n), 78.07 (5), 93.07 (26), 93.46 (1) (d) 1. to 4., 93.46 (1e), 93.46 (2)
10(b) 4m. and 5m. and (dm), 93.47, 96.01 (4m), 96.05 (1m), 100.51 (6), 100.60,
11168.05 (6), 168.12 (2) and 560.126 (1d) of the statutes;
relating to: financial
12assistance related to bioenergy feedstocks, biorefineries, and conversion to
13biomass energy; the definition of the term agricultural use for the purpose of
14determining the assessed value of a parcel of land; requiring a strategic
1bioenergy feedstock assessment; creation of a bioenergy council; the
2agricultural and forestry diversification programs; biofuels training
3assessment; a study of regulatory burdens relating to biofuel production
4facilities; marketing orders and agreements for bioenergy feedstocks;
5exempting personal renewable fuel production and use from the motor vehicle
6fuel tax, the petroleum inspection fee, and business tax registration
7requirements; an income and franchise tax credit for installing or retrofitting
8pumps that mix motor vehicle fuels from separate storage tanks; offering
9gasoline that is not blended with ethanol to motor fuel dealers; state renewable
10motor vehicle fuels sales goals; required sales of renewable motor vehicle fuels;
11use of petroleum-based transportation fuels by state vehicles; use of
12alternative fuels in flex fuel vehicles owned by the state; use of public
13alternative fuel refueling facilities; duties of the Office of Energy Independence;
14granting rule-making authority; requiring the exercise of rule-making
15authority; making appropriations; and providing penalties.
Analysis by the Legislative Reference Bureau
This bill is explained in the Note provided by the Joint Legislative Council in
the bill.
This bill will be referred to the Joint Survey Committee on Tax Exemptions for
a detailed analysis, which will be printed as an appendix to this bill.
For further information see the state and local fiscal estimate, which will be
printed as an appendix to this bill.
The people of the state of Wisconsin, represented in senate and assembly, do
enact as follows:
Prefatory note: This bill was prepared for the Joint Legislative Council's Special
Committee on Domestic Biofuels.
Financial assistance related to biofuels. The bill expands the applicability of
relevant state financial assistance programs, to ensure that the programs support the
establishment, production, harvest, storage, and transport of bioenergy feedstocks; the
conversion of ethanol production plants to biomass energy for process heat; and the
development and construction of biorefineries. A "biorefinery" is a facility, including
equipment and processes, that converts biomass into fuels and products and may produce
electricity.
In particular, the bill clarifies that the industrial revenue bond program applies to
all types of biorefineries, including those that produce a fuel other than alcohol. This is
accomplished by repealing the statute that lists "alcohol fuel production facilities" as a
type of "project" eligible for financing with these bonds and the recognition that other
types of currently eligible projects for this financing include "assembling, fabricating,
manufacturing, mixing or processing facilities for any products of agriculture, forestry,
mining or manufacturer," which includes biorefineries. The bill also specifies that the
renewable energy grant and loan program applies to biorefineries, in general, rather than
just cellulose ethanol production plants and that the agricultural diversification grant
program applies to the development of new forestry products, including alternative fuels.
In addition, the bill repeals s. 93.46 (3), as the Department of Agriculture, Trade and
Consumer Protection (DATCP) no longer makes agricultural diversification grants under
that subsection.
The definition of "agricultural use" for purposes of use value taxation.
Under current law, the Department of Revenue (DOR) is required to define the term
"agricultural use" for purposes of determining whether the assessed value of a parcel of
land should be determined under the use value assessment method. DOR currently
defines the term "agricultural use" to exclude "growing short rotation woody trees with
a growing and harvesting cycle of ten years or less for pulp or tree stock under NAICS
industry 111421." This bill requires DOR to define the term "agricultural use" to include
the growing of short rotation woody crops, including poplars and willows, using
agronomic practices.
Strategic bioenergy feedstock assessment. The bill directs the Office of
Energy Independence (OEI) to coordinate the biennial preparation of a strategic
bioenergy feedstock assessment by the specified state agencies. This assessment must
examine the current and potential bioenergy feedstocks being produced in Wisconsin, the
uses of those feedstocks, as well as the use in the state of bioenergy feedstocks produced
in other states, the key factors that influence the supply of and demand for feedstocks
produced in the state, and the impacts of the increased use in the state of biomass for
energy production. The assessment must also recommend appropriate legislation and
changes in the agencies' programs and rules.
Bioenergy advisory council, voluntary best management practices. The
bill creates a bioenergy advisory council attached to DATCP and requires the council to
report voluntary best management practices for sustainable biomass and biofuels
production to agencies and private parties that assist biofuel feedstocks producers and
biofuels producers.
The agricultural diversification program. The bill expands the agricultural
diversification program administered by DATCP to include the promotion of marketable
credits for reducing emissions of greenhouse gases derived from the production of
agricultural commodities (also known as carbon offset credits) and of other types of
energy made from these commodities in addition to alternative fuels made from
agricultural source stocks. The bill creates a comparable forestry diversification program
administered by the Department of Natural Resources (DNR). The bill also directs
DATCP and DNR to promote these new products in cooperation with and with the
assistance of each other and the University of Wisconsin-Extension (UW-Extension).
Biofuels training assessment. The bill requires the UW-Extension, in
cooperation with other state entities, to conduct an educational needs assessment related
to the production of biofuels and the development and production of feedstocks for the
production of biofuels, and to report its findings to the Governor and the Legislature.
Biofuels production facility regulatory review committee. The bill creates
a nine-member Biofuels Production Facility Regulatory Review committee, with
members appointed by the Governor, to review state and local regulatory burdens related
to biofuels production facilities and to report its findings to the Governor and the
Legislature.
Marketing orders and agreements for bioenergy feedstocks. Under the
"Agricultural Marketing Act" marketing orders or agreements can be issued for
agricultural commodities. The purposes of these orders and agreements include
promoting orderly and efficient marketing and preventing economic waste by promoting
fair methods of competition, uniform grading and classification, and market realization
and development. An assessment is levied upon affected producers and handlers to
defray the costs associated with a marketing order. This bill designates products used
as bioenergy feedstocks, including timber and wood products, as "agricultural
commodities" under this Act, thus authorizing the creation of a marketing order or
agreement for these feedstocks with the required approval of affected producers of the
feedstocks. The bill also requires the secretary of DATCP to periodically assess the
development of markets for bioenergy feedstocks and determine whether the issuance of
a marketing order or agreement for these products would be appropriate.
Personal renewable fuel production and use. This bill exempts the first 1,000
gallons of renewable fuel produced by a person each year, that the person uses in his or
her personal vehicle, from the motor vehicle fuel excise tax, the petroleum inspection fee,
and petroleum inspection requirements not required by federal law. The bill also allows
a person to produce this renewable fuel without a business tax registration certificate or
a motor vehicle fuel tax license.
Income tax credit for blender pumps. Under current law, an "ethanol and
biodiesel fuel pump" income tax credit is available for claimants who install or retrofit
equipment for dispensing motor vehicle fuel to end-users that dispense fuel consisting
of at least 85 percent ethanol or at least 20 percent biodiesel fuel. The amount of the credit
is 25 percent of the cost to install or retrofit such equipment but is limited to $5,000 per
service station for which the claimant has installed or retrofitted such equipment. This
credit is available for taxable years beginning after December 31, 2007, and before
January 1, 2018. This bill modifies the definition of fuel subject to this credit and allows
this income tax credit to be claimed for the installation or retrofit of equipment that
blends fuels from separate storage tanks allowing the end-user to choose the percentage
of gasoline-replacement renewable fuel or diesel-replacement renewable fuel in the
dispensed fuel.
Required offering of unblended gasoline to motor fuel dealers. This bill
requires a motor fuel grantor (grantor) to offer unblended gasoline, suitable for
subsequent blending with ethanol and subsequent sale, to any motor fuel dealer (dealer)
with which it has a motor fuel dealership agreement (agreement). This bill also prohibits
an agreement or contract between a dealer and grantor from requiring the dealer to
purchase ethanol from the grantor exclusively. This bill does not prohibit agreements
from requiring the subsequent blending of unblended gasoline received by a dealer prior
to sale to an end-user, and does not prohibit grantors and dealers from entering into
agreements with respect to the transfer of renewable fuels credits under the federal
renewable fuels standard.
State renewable motor vehicle fuels sales goals and sales requirements.
The bill creates annual sales goals for renewable fuels in this state equaling 110 percent
of the state's share of renewable fuel sales required nationally under the federal
renewable fuel standard (F-RFS). The bill groups the categories of renewable fuel under
the F-RFS into two categories for purposes of the state goals: gasoline-replacement
renewable fuels and diesel-replacement renewable fuels. The state's share of renewable
fuels under the F-RFS is determined based on the total volume of motor vehicle fuel sold
in this state as compared to the total volume of motor vehicle fuel sold nationally over the
three years preceding the year for which the calculation is made. Fuels must meet or
exceed F-RFS greenhouse gas reduction requirements to be included in state sales
calculations.
The bill requires DATCP, in cooperation with and with assistance from
Department of Commerce, DOR, and OEI, to collect information needed to determine
whether these annual renewable fuels sales goals are met for each year following
enactment of this bill. DATCP is also generally required to collect information necessary
to assess the cause, and to conduct an assessment, if an annual sales goal is not met, and
report its findings to the Legislature and Governor. This assessment must include
determinations related to renewable fuels systems and markets, regulatory obstacles,
and the effect of potential specific individual sales requirements. If DATCP determines
in an assessment that individual sales requirements would likely result in renewable fuel
sales that would meet the annual goals, DATCP must require such sales by rule. In
addition to annual sales requirements, these rules may include reporting, recordkeeping,
or testing requirements, quarterly or monthly sales requirements in certain situations,
a credit trading system, procedures for DATCP to temporarily suspend a sales
requirement, and fees for the administration and enforcement of the program.
The bill creates a program revenue appropriation to DATCP that funds the
administration and enforcement of the renewable fuel program. This appropriation is
funded by fees that DATCP establishes by rule as part of the implementation of the
program. The bill provides penalties for violations of any renewable fuel program rules
adopted by DATCP and for violations of any of the reporting requirements authorized by
the bill.
The state as a leader; renewable fuels use in the state fleet. The bill codifies
Executive Order #141, relating to increased utilization of renewable fuels and vehicles
owned and operated by the State of Wisconsin. In particular, the bill directs DOA to
require state agencies to reduce the amount of gasoline and diesel fuels they use that are
petroleum-based by specified percentages, requires OEI to promote the use of alternative
fuels in flex fuel vehicles owned by the state, and directs OEI and DATCP to cooperatively
promote public alternative fuel refueling facilities.
Other duties of the Office of Energy Independence. The bill directs OEI to
work on initiatives that have the goals of ensuring that Wisconsin is a national leader in
developing biorefineries and advancing the sale and use of intermediate blends of
gasoline and biofuels. The bill clarifies that OEI shall serve as the central unit of state
government to coordinate the activities of all state agencies in connection with the
initiatives specified in the office's enabling statute and that the other state agencies shall
assist the office in fulfilling its duties.
AB408, s. 1
1Section
1. 15.137 (6) of the statutes is created to read:
AB408,5,52
15.137
(6) Bioenergy council. There is created a bioenergy council which is
3attached to the department of agriculture, trade and consumer protection under s.
415.03. The secretary of agriculture, trade and consumer protection shall appoint the
5members of the council, to serve at the pleasure of the secretary.
AB408, s. 2
1Section
2. 16.04 (1) (a) of the statutes is amended to read:
AB408,6,62
16.04
(1) (a) Develop uniform state policies and guidelines for vehicle and
3aircraft acquisition, use, maintenance, recording of operational and other costs,
4performance evaluation and replacement of vehicles and aircraft.
The department
5shall incorporate the fuel usage requirements under s. 16.045 (4m) in any policies
6or guidelines developed under this paragraph.
AB408, s. 3
7Section
3. 16.045 (1) (cm) and (f) of the statutes are created to read:
AB408,6,108
16.045
(1) (cm) "Flex fuel vehicle" means a vehicle designed to operate on
9gasoline, a blend of a fuel marketed as gasoline and 85 percent ethanol or a higher
10percentage of ethanol, or a mixture of gasoline and that blend.
AB408,6,1111
(f) "Office" means the office of energy independence.
AB408, s. 4
12Section
4. 16.045 (4m) and (6) of the statutes are created to read:
AB408,6,1613
16.045
(4m) The department shall require all agencies to collectively reduce
14the usage of gasoline and diesel fuel in state-owned vehicles that is petroleum-based
15below the total amount that the agencies used in 2006 by at least the following
16percentages:
AB408,6,1717
(a) For gasoline:
AB408,6,1818
1. Twenty percent by 2010.
AB408,6,1919
2. Fifty percent by 2015.
AB408,6,2020
(b) For diesel fuel:
AB408,6,2121
1. Ten percent by 2010.
AB408,6,2222
2. Twenty-five percent by 2015.
AB408,6,25
23(6) The office shall adopt, revise as necessary, and implement a plan designed
24to facilitate usage of alternative fuels in the flex fuel vehicles and other vehicles
25owned by the state. The plan shall ensure all of the following:
AB408,7,2
1(a) That all flex fuel vehicles and other vehicles powered by an alternative fuel
2other than gasohol that are owned by the state are identifiable.
AB408,7,53
(b) That all state employees driving flex fuel vehicles and other vehicles
4powered by an alternative fuel other than gasohol are made aware of the alternative
5fuel refueling stations in the vicinity of their route of travel.
AB408,7,76
(c) That all state employees strive to use alternative fuels when operating state
7flex fuel and diesel-powered vehicles.
AB408, s. 5
8Section
5. 16.954 of the statutes is created to read:
AB408,7,9
916.954 Strategic bioenergy feedstock assessment. (1) In this section:
AB408,7,1210
(a) "Affected agencies" means the department of administration, the
11department of agriculture, trade and consumer protection, the department of
12natural resources, the office, and the public service commission.
AB408,7,1413
(b) "Bioenergy feedstock" means biomass used to produce energy, including
14transportation fuel, heat, or electricity.
AB408,7,1515
(c) "Office" means the office of energy independence.
AB408,7,21
16(2) The office shall coordinate among affected agencies the preparation of a
17biennial strategic bioenergy feedstock assessment that assists producers and users
18of bioenergy feedstocks and state and local government policy makers in
19understanding trends in the production and use of bioenergy feedstocks in this state
20and the effects of that production and use. Using readily available information, each
21assessment shall do all of the following:
AB408,7,2322
(a) Summarize the bioenergy feedstocks currently and projected to be produced
23in the state by region.
AB408,8,3
1(b) Identify the current and projected significant markets for bioenergy
2feedstocks produced in the state and major facilities located or likely to be located in
3the state that use bioenergy feedstocks produced in or outside the state.
AB408,8,64
(c) Identify key factors that influence the supply of and demand for major
5bioenergy feedstocks in the state, including the types and amounts of land devoted
6to producing these feedstocks.
AB408,8,97
(d) Assess whether any of the factors identified under par. (c) are likely to
8change during the period covered by the assessment and, if so, how those changes
9may affect the availability of future bioenergy feedstocks.
AB408,8,1110
(e) Assess the impacts of the increased use in the state of biomass for energy
11production on all of the following:
AB408,8,1212
1. Other consumers of that biomass.
AB408,8,1313
2. Land use.
AB408,8,1414
3. Environmental quality.
AB408,8,1615
4. Other benefits and services derived from the natural systems in which the
16biomass is produced.
AB408,8,1817
(f) Recommend, as appropriate, legislation or changes in programs or rules of
18affected agencies, including whether the assessment should be continued.
AB408,8,23
19(3) No later than April 30, 2013, and no later than April 30 of each
20odd-numbered year thereafter, the office shall submit a copy of an assessment
21prepared under sub. (2) to the governor and the appropriate standing committees of
22the legislature under s. 13.172 (3) and shall post a copy of the assessment on the
23office's Internet site.
AB408, s. 6
24Section
6. 16.956 (1) (bg) and (br) of the statutes are created to read:
AB408,9,2
116.956
(1) (bg) "Biorefinery" means a facility, including equipment and
2processes, that converts biomass into fuels and products and may produce electricity.
AB408,9,33
(br) "Executive branch agency" has the meaning given in s. 16.70 (4).
AB408, s. 7
4Section
7. 16.956 (2) (c) of the statutes is renumbered 16.956 (2) (c) (intro.) and
5amended to read:
AB408,9,76
16.956
(2) (c) (intro.) Ensuring that Wisconsin is a national leader in
7groundbreaking all of the following:
AB408,9,9
81. Groundbreaking research that will make alternative energies more
9affordable and create well-paying jobs in this state.
AB408, s. 8
10Section
8. 16.956 (2) (c) 2. and 3. of the statutes are created to read:
AB408,9,1111
16.956
(2) (c) 2. Developing biorefineries.
AB408,9,1312
3. Advancing the sale and use in all types of motor vehicles of blends of gasoline
13and a biofuel that contain more than 10 percent of the biofuel.
AB408, s. 9
14Section
9. 16.956 (3) (a) and (c) of the statutes are amended to read:
AB408,9,1815
16.956
(3) (a) Ensure and facilitate the implementation of the initiatives
16specified in sub. (2) and identify barriers to the implementation of such initiatives.
17The office shall serve as the central unit of state government to coordinate the
18activities of all executive branch agencies in connection with these initiatives.
AB408,9,2019
(c) Develop energy independence policy options for consideration by the
20governor
, the legislature, and
state
the executive branch agencies.
AB408, s. 10
21Section
10
. 16.956 (3) (f) of the statutes is created to read:
AB408,9,2522
16.956
(3) (f) Pursue, in cooperation with the department of agriculture, trade
23and consumer protection, the establishment and maintenance of sufficient
24alternative fuel refueling facilities at public retail outlets to meet the traveling needs
25of the public.
AB408, s. 11
1Section
11. 16.956 (4) of the statutes is created to read:
AB408,10,32
16.956
(4) Other state agencies shall assist the office in fulfilling its duties
3under this section to the fullest extent possible.
AB408, s. 12
4Section
12. 20.005 (3) (schedule) of the statutes: at the appropriate place,
5insert the following amounts for the purposes indicated:
-
See PDF for table ![PDF](https://docs.legis.wisconsin.gov/assets/image/file_acrobat.gif)
AB408, s. 13
6Section
13. 20.115 (3) (im) of the statutes is created to read:
AB408,10,107
20.115
(3) (im)
Renewable fuel program. The amounts in the schedule for the
8administration and enforcement of the renewable fuel program under s. 100.60 (5).
9All monies received from the fees authorized by s. 100.60 (5) (f) shall be credited to
10this appropriation account.
AB408, s. 14
11Section
14. 20.115 (4) (c) of the statutes is amended to read:
AB408,10,1312
20.115
(4) (c)
Agricultural investment aids. Biennially, the amounts in the
13schedule for agricultural research and development grants under s. 93.46 (2)
and (3).