Johnson said that if U.S. Venture were to pay the tax on providing an alternative transportation solution if the pipeline collapsed, it would ultimately raise Wisconsin fuel prices ”for no real reason.” ”The provision approved by the House Ways and Means Committee would eliminate the need for the IRS to grant temporary exemptions to any fuel supplier in America and would continue to ensure that this tax is not imposed on Wisconsin consumers,” she said. A person who uses alternative fuel to operate a taxi used to transport passengers may be reimbursed for the cost of the Wisconsin state fuel tax. Claims must be filed within one year of the date of purchase of the fuel and must be for at least 100 gallons of alternative fuel. (Reference To Wisconsin Acts 78.75(1m)(a)(1) and 78.75(1m)(b)) West Shore is the only gasoline and diesel fuel pipeline serving northeastern Wisconsin, so the closure of the segment could lead to supply issues for the region. To avoid this, Wisconsin`s Republican governor at the time, Scott Walker, declared an energy emergency that allowed tanker truck drivers to work overtime to move fuel from the pipeline`s terminals in Milwaukee and Madison to Green Bay. ”The temporary administrative relief provided in the years following the permanent closure of the West Shore pipeline section between Milwaukee and Green Bay gave affected position holders time to renegotiate relevant contracts and adopt commercial solutions related to the transportation of fuel by boat to Green Bay or by truck or train from the Milwaukee and Madison terminals to the Green Bay terminals. and seek legislative solutions,” the IRS wrote. A natural person may sell alternative liquid fuels only if the seller provides the buyer with a delivery note with the name and address of the seller, the name and address of the buyer, a description of the fuel supplied and a meter reading indicating the quantity of liquid fuel supplied. The definition of alternative fuels also includes fuels suitable for motor vehicles.

(Wisconsin Statutes 98.225(1) and (2) referrer) A state excise duty is levied on the use of alternative fuels. Alternative fuels are propane and natural gas. Current tax rates are: $0.226 per gallon of propane; $0.247 per gallon of gasoline equivalent (BSE) of compressed natural gas; and $0.197 per BSE of liquefied natural gas. There is no tax on alternative fuels used by the U.S. government or its agencies (if a valid exemption certificate is presented) or on vehicles used for mass urban passenger transportation. For more information, visit the Wisconsin Department of Revenue`s Alternative Fuel Tax website. (Reference Wisconsin Statutes 78.40) A county, city, village, city or other political subdivision may not collect or collect an excise tax, licence, lien or business tax on fuels, alternative fuels or the purchase, sale, handling or consumption of alternative fuels or fuels. (Wisconsin Statutes 78.82) Prior to the closure of the pipeline section, U.S. Venture was only taxed if it withdrew fuel from the Green Bay terminal. Now it is subject to a double tax on the removal of fuel from other terminals for transportation in Green Bay. Natural gas vehicles may exceed the weight limits by an amount equal to the difference between the weight of the natural gas tank and refuelling system and the weight of a comparable diesel tank and refuelling system, or up to a maximum of 2,000 lbs, whichever is lower.

Wisconsin lawmakers knew the IRS would not extend tax relief on dyed fuels to U.S. Venture in the long run. When Gallagher wrote to the Treasury Department in November 2017 — this time with Wisconsin Rep. Glenn Grothman and Senator Ron Johnson, both Republicans, and Democratic Sen. Tammy Baldwin — he asked for the first extension, saying ”legislative efforts are currently underway” to find a permanent solution. U.S. Venture, based in Appleton, Wisconsin, intervened as soon as the pipeline was closed to deliver fuel to the Green Bay terminal. The company also transports fuel from the Green Bay terminal to end users. Anyone working as an alternative fuel distributor must have a valid alternative fuel license and a certificate from the Wisconsin Department of Administration. No person may use alternative fuels in the State unless he or she holds a valid alternative fuel licence or an authorized supplier has supplied the alternative fuel. For more information, visit the Wisconsin Department of Revenue`s Licensing, Permitting, and Registration Services website. (Wisconsin Statutes 78.47) The Wisconsin Department of Administration (DOA) provides grants to replace eligible transit buses.

The replacement and disposal of heavy public transit buses of the 1992-2009 model year with new alternative diesel or alternative fuel buses will be encouraged. The program is funded by the Wisconsin part of the Volkswagen Environmental Mitigation Trust. Further information, including the application, can be found on the VW DOA Mitigation Program website. The problem occurs with colored fuel. All the fuel that U.S. Venture carries to Green Bay is clear, but it colors something at the Green Bay terminal to pay consumers for off-road use. Since the dyed fuel is exempt from tax, the U.S. company is not entitled to a refund for the portion of the clear fuel on which it paid taxes in Milwaukee and which it dyes in Green Bay. However, this tax would never have occurred if the West Shore pipeline had remained in operation.

Under Section 4081 of the U.S. Tax Number, fuel is subject to tax as soon as it leaves the terminal. However, the tax applies only to customs-cleared fuel intended for road traffic. Dyed fuel intended for off-road use, such as construction or agriculture, is exempt from tax. The Wisconsin Department of Administration (DOA) encourages state employees who operate state or leased motor vehicles to use hybrid electric vehicles or vehicles running on gasohol (a fuel containing at least 10% alcohol) or alternative fuels whenever possible and inexpensive. .