SB279: Bill Text

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.

SB279, s. 1 Section 1. 15.137 (6) of the statutes is created to read:

SB279,5,5 15.137 (6) Bioenergy council. There is created a bioenergy council which is attached to the department of agriculture, trade and consumer protection under s. 15.03. The secretary of agriculture, trade and consumer protection shall appoint the members of the council, to serve at the pleasure of the secretary.

SB279, s. 2 Section 2. 16.04 (1) (a) of the statutes is amended to read:

SB279,6,6 16.04 (1) (a) Develop uniform state policies and guidelines for vehicle and aircraft acquisition, use, maintenance, recording of operational and other costs, performance evaluation and replacement of vehicles and aircraft. The department shall incorporate the fuel usage requirements under s. 16.045 (4m) in any policies or guidelines developed under this paragraph.

SB279, s. 3 Section 3. 16.045 (1) (cm) and (f) of the statutes are created to read:

SB279,6,10 16.045 (1) (cm) "Flex fuel vehicle" means a vehicle designed to operate on gasoline, a blend of a fuel marketed as gasoline and 85 percent ethanol or a higher percentage of ethanol, or a mixture of gasoline and that blend.

SB279,6,11 (f) "Office" means the office of energy independence.

SB279, s. 4 Section 4. 16.045 (4m) and (6) of the statutes are created to read:

SB279,6,16 16.045 (4m) The department shall require all agencies to collectively reduce the usage of gasoline and diesel fuel in state-owned vehicles that is petroleum-based below the total amount that the agencies used in 2006 by at least the following percentages:

SB279,6,17 (a) For gasoline:

SB279,6,18 1. Twenty percent by 2010.

SB279,6,19 2. Fifty percent by 2015.

SB279,6,20 (b) For diesel fuel:

SB279,6,21 1. Ten percent by 2010.

SB279,6,22 2. Twenty-five percent by 2015.

SB279,6,25 (6) The office shall adopt, revise as necessary, and implement a plan designed to facilitate usage of alternative fuels in the flex fuel vehicles and other vehicles owned by the state. The plan shall ensure all of the following:

SB279,7,2 (a) That all flex fuel vehicles and other vehicles powered by an alternative fuel other than gasohol that are owned by the state are identifiable.

SB279,7,5 (b) That all state employees driving flex fuel vehicles and other vehicles powered by an alternative fuel other than gasohol are made aware of the alternative fuel refueling stations in the vicinity of their route of travel.

SB279,7,7 (c) That all state employees strive to use alternative fuels when operating state flex fuel and diesel-powered vehicles.

SB279, s. 5 Section 5. 16.954 of the statutes is created to read:

SB279,7,9 16.954 Strategic bioenergy feedstock assessment. (1) In this section:

SB279,7,12 (a) "Affected agencies" means the department of administration, the department of agriculture, trade and consumer protection, the department of natural resources, the office, and the public service commission.

SB279,7,14 (b) "Bioenergy feedstock" means biomass used to produce energy, including transportation fuel, heat, or electricity.

SB279,7,15 (c) "Office" means the office of energy independence.

SB279,7,21 (2) The office shall coordinate among affected agencies the preparation of a biennial strategic bioenergy feedstock assessment that assists producers and users of bioenergy feedstocks and state and local government policy makers in understanding trends in the production and use of bioenergy feedstocks in this state and the effects of that production and use. Using readily available information, each assessment shall do all of the following:

SB279,7,23 (a) Summarize the bioenergy feedstocks currently and projected to be produced in the state by region.

SB279,8,3 (b) Identify the current and projected significant markets for bioenergy feedstocks produced in the state and major facilities located or likely to be located in the state that use bioenergy feedstocks produced in or outside the state.

SB279,8,6 (c) Identify key factors that influence the supply of and demand for major bioenergy feedstocks in the state, including the types and amounts of land devoted to producing these feedstocks.

SB279,8,9 (d) Assess whether any of the factors identified under par. (c) are likely to change during the period covered by the assessment and, if so, how those changes may affect the availability of future bioenergy feedstocks.

SB279,8,11 (e) Assess the impacts of the increased use in the state of biomass for energy production on all of the following:

SB279,8,12 1. Other consumers of that biomass.

SB279,8,13 2. Land use.

SB279,8,14 3. Environmental quality.

SB279,8,16 4. Other benefits and services derived from the natural systems in which the biomass is produced.

SB279,8,18 (f) Recommend, as appropriate, legislation or changes in programs or rules of affected agencies, including whether the assessment should be continued.

SB279,8,23 (3) No later than April 30, 2013, and no later than April 30 of each odd-numbered year thereafter, the office shall submit a copy of an assessment prepared under sub. (2) to the governor and the appropriate standing committees of the legislature under s. 13.172 (3) and shall post a copy of the assessment on the office's Internet site.

SB279, s. 6 Section 6. 16.956 (1) (bg) and (br) of the statutes are created to read:

SB279,9,2 16.956 (1) (bg) "Biorefinery" means a facility, including equipment and processes, that converts biomass into fuels and products and may produce electricity.

SB279,9,3 (br) "Executive branch agency" has the meaning given in s. 16.70 (4).

SB279, s. 7 Section 7. 16.956 (2) (c) of the statutes is renumbered 16.956 (2) (c) (intro.) and amended to read:

SB279,9,7 16.956 (2) (c) (intro.) Ensuring that Wisconsin is a national leader in groundbreaking all of the following:

SB279,9,9 1. Groundbreaking research that will make alternative energies more affordable and create well-paying jobs in this state.

SB279, s. 8 Section 8. 16.956 (2) (c) 2. and 3. of the statutes are created to read:

SB279,9,11 16.956 (2) (c) 2. Developing biorefineries.

SB279,9,13 3. Advancing the sale and use in all types of motor vehicles of blends of gasoline and a biofuel that contain more than 10 percent of the biofuel.

SB279, s. 9 Section 9. 16.956 (3) (a) and (c) of the statutes are amended to read:

SB279,9,18 16.956 (3) (a) Ensure and facilitate the implementation of the initiatives specified in sub. (2) and identify barriers to the implementation of such initiatives. The office shall serve as the central unit of state government to coordinate the activities of all executive branch agencies in connection with these initiatives.

SB279,9,20 (c) Develop energy independence policy options for consideration by the governor, the legislature, and state the executive branch agencies.

SB279, s. 10 Section 10 . 16.956 (3) (f) of the statutes is created to read:

SB279,9,25 16.956 (3) (f) Pursue, in cooperation with the department of agriculture, trade and consumer protection, the establishment and maintenance of sufficient alternative fuel refueling facilities at public retail outlets to meet the traveling needs of the public.

SB279, s. 11 Section 11. 16.956 (4) of the statutes is created to read:

SB279,10,3 16.956 (4) Other state agencies shall assist the office in fulfilling its duties under this section to the fullest extent possible.

SB279, s. 12 Section 12. 20.005 (3) (schedule) of the statutes: at the appropriate place, insert the following amounts for the purposes indicated: - See PDF for table

SB279, s. 13 Section 13. 20.115 (3) (im) of the statutes is created to read:

SB279,10,10 20.115 (3) (im) Renewable fuel program. The amounts in the schedule for the administration and enforcement of the renewable fuel program under s. 100.60 (5). All monies received from the fees authorized by s. 100.60 (5) (f) shall be credited to this appropriation account.

SB279, s. 14 Section 14. 20.115 (4) (c) of the statutes is amended to read:

SB279,10,13 20.115 (4) (c) Agricultural investment aids. Biennially, the amounts in the schedule for agricultural research and development grants under s. 93.46 (2) and (3).

SB279, s. 15 Section 15. 20.115 (4) (r) of the statutes is amended to read:

SB279,10,17 20.115 (4) (r) Agricultural investment aids, agrichemical management fund. Biennially, from the agrichemical management fund, the amounts in the schedule for agricultural research and development grants under s. 93.46 (2) and (3).

SB279, s. 16 Section 16. 26.42 of the statutes is created to read:

SB279,11,4 26.42 Forestry diversification. (1) The department shall establish a forestry diversification program and shall promote and assist the development and use of industrial and commercial products from forestry products, including all of the following:

SB279,11,6 (a) Alternative fuels, including fuels that are considered to be renewable fuels under the renewable fuel program under 42 USC 7545 (o).

SB279,11,7 (b) Heat.

SB279,11,9 (c) Electricity, including electricity that satisfies the requirements in s. 196.378 (2).

SB279,11,12 (d) Marketable credits for reducing emissions of greenhouse gases, as defined in s. 285.78 (1) (c), derived from appropriate management practices used in the production of timber.

SB279,11,16 (2) The department shall promote and assist the development and use of the products identified in sub. (1) (a) to (d) in cooperation with and with the assistance of the department of agriculture, trade and consumer protection and the University of Wisconsin-Extension.

SB279, s. 17 Section 17. 66.1103 (2) (k) 18. of the statutes is repealed.

SB279, s. 18 Section 18. 70.32 (2) (c) 1g. of the statutes is amended to read:

SB279,11,21 70.32 (2) (c) 1g. "Agricultural land" means land, exclusive of buildings and improvements and the land necessary for their location and convenience, that is devoted primarily to agricultural use, as defined by rule.

SB279, s. 19 Section 19. 70.32 (2) (c) 1i. of the statutes is created to read:

SB279,11,25 70.32 (2) (c) 1i. "Agricultural use" means agricultural use as defined by the department of revenue by rule and includes the growing of short rotation woody crops, including poplars and willows, using agronomic practices.

SB279, s. 20 Section 20. 70.32 (2) (c) 1k. of the statutes is created to read:

SB279,12,4 70.32 (2) (c) 1k. "Agronomic practices" means agricultural practices generally associated with field crop production, including soil management, cultivation, and row cropping.

SB279, s. 21 Section 21. 71.07 (5j) (a) 2d. of the statutes is created to read:

SB279,12,10 71.07 (5j) (a) 2d. "Diesel replacement renewable fuel" includes biodiesel and any other fuel derived from a renewable resource that meets all of the applicable requirements of the American Society for Testing and Materials for that fuel and that the department of commerce designates by rule as a diesel replacement renewable fuel.

SB279, s. 22 Section 22. 71.07 (5j) (a) 2m. of the statutes is created to read:

SB279,12,16 71.07 (5j) (a) 2m. "Gasoline replacement renewable fuel" includes ethanol and any other fuel derived from a renewable resource that meets all of the applicable requirements of the American Society for Testing and Materials for that fuel and that the department of commerce designates by rule as a gasoline replacement renewable fuel.

SB279, s. 23 Section 23. 71.07 (5j) (b) of the statutes, as affected by 2009 Wisconsin Act 28, is amended to read:

SB279,13,4 71.07 (5j) (b) Filing claims. Subject to the limitations provided in this subsection, for taxable years beginning after December 31, 2007, and before January 1, 2018, a claimant may claim as a credit against the taxes imposed under ss. 71.02 and 71.08, up to the amount of the taxes, an amount that is equal to 25 percent of the amount that the claimant paid in the taxable year to install or retrofit pumps located in this state that dispense motor vehicle fuel consisting of at least marketed as gasoline and 85 percent ethanol or a higher percentage of ethanol or at least motor vehicle fuel marketed as diesel fuel and 20 percent biodiesel fuel or that mix fuels from separate storage tanks and allow the end user to choose the percentage of gasoline replacement renewable fuel or diesel replacement renewable fuel in the motor vehicle fuel dispensed.

SB279, s. 24 Section 24. 71.28 (5j) (a) 2d. of the statutes is created to read:

SB279,13,10 71.28 (5j) (a) 2d. "Diesel replacement renewable fuel" includes biodiesel and any other fuel derived from a renewable resource that meets all of the applicable requirements of the American Society for Testing and Materials for that fuel and that the department of commerce designates by rule as a diesel replacement renewable fuel.

SB279, s. 25 Section 25. 71.28 (5j) (a) 2m. of the statutes is created to read: