Nebraska Alternative Fuel Tax Laws

As a resident of the State of Nebraska, I have taken the time to research my states laws regarding alternative fuels, their use and registration requirements, as well as any possible tax liability issues that may arise from my use of woodgas as an alternative fuel. 

 However, I am not an attorney, nor have I sought the legal advice of an attorney in regards to this matter. However I believe that I am capable of reading the laws as they are written and interpreting them. If you are considering an alternative powered vehicle, you need to understand your states laws regarding alternative fuel and their regulations. You need to do your own research, including contacting an attorney, or your state government if you need clarification. Please note that my interpretation of Nebraska law is my interpretation and has not been tested in court. Don’t take my word as being the authority on this issue. I am sure the state may have something to say about this at some point.

http://www.revenue.state.ne.us/fuels/statutes/statutes.htm

66-687.   Permit required; when.

Every person registering a motor vehicle designed or modified to be propelled in whole by alternative fuel shall obtain from the department an annual alternative fuel user permit for each motor vehicle propelled by alternative fuel. A person shall obtain all required alternative fuel user permits within thirty days of becoming an alternative fuel user.

My understanding as I read this law is that the wording ‘propelled in whole’ means that my vehicle must be completely powered by woodgas in order to for this registration requirement to apply to me. I always start my truck on gasoline and then lean out the gasoline as I enrich the woodgas, this give the gassifer a chance to catch up on the demand cycle. Often on the highway I run in a lean hybrid mode.

66-686.   Terms, defined.

For purposes of the Alternative Fuel Tax Act:

(1) Alternative fuel includes electricity, solar power, and any other source of energy not otherwise taxed under the motor fuel laws which is used to power a motor vehicle. Alternative fuel does not include motor vehicle fuel as defined in section 66-482, diesel fuel as defined in section 66-482, or compressed fuel as defined in section 66-6,100;

(2) Department means the Motor Fuel Tax Enforcement and Collection Division of the Department of Revenue;

(3) Motor vehicle has the same definition as in section 60-339; and

(4) Person means any individual, firm, partnership, limited liability company, company, agency, association, corporation, state, county, municipality, or other political subdivision.

Yes woodgas qualifies as an alternative fuel under Nebraska law. However, Nebraska is one of the few states who have taken such a restrictive definition of alternative fuel. Check your states laws, most states only have a tax structure set up for fuel that can be measured in a “tank”.

66-694.   Prohibited acts; violation; penalty.

No alternative-fuel-powered motor vehicle registered or required to be registered in this state shall be operated on the highways of this state unless a valid alternative fuel user permit has been obtained from the department. Any motor vehicle operator who violates this section shall be subject to an administrative penalty of one thousand dollars for each violation to be assessed and collected by the department. All such penalties collected shall be remitted to the State Treasurer for credit to the Highway Trust Fund.

Pretty hefty fine if I am wrong and get a ticket! Nebraska is so, so Alternative Energy friendly. This law over the top! They wonder why alternative energy is not pursed by more people. Hmmm maybe $1000 fines if you actually manage to get something to work. Not to mention the $75 yearly registration fee, or the mileage tax. It is hard enough just trying to get an alternative fuel of any kind working. No warning provisions, no investigative procedures, and no provisions are made for those developing alternative energy, for testing, other than you got 30 days to get all your permits. No, we have determined that your vehicle qualifies as a ' vehicle wholly powered by an alternative fuel' , get it registered.  It isn’t about taxes for me anyway, it is about fuel prices and doing what is right for our environment. Thank goodness I am not ‘propelled in whole’ by woodgas, my hybrid mode is coming along nicely. When Nebraska changes their laws to include my hybrid woodgas vehicle they are going to have to stop every car on the highway and look for HHO watergas producers too. Or how about plug in electric hybrid vehicles, even regular electric gasoline hybrid vehicles? It isn't about taxes for me anyway, but I would be happier though if Nebraska revisited their tax laws. I think a more fair tax structure would be based on vehicle weight and the number of miles driven on an alternative fuel. A hybrid vehicle shouldn't be necessarily taxed at this time anyway. We need to encourage domestically produced  alternative fuels, taxes discourage growth. The problem with a woodgas hybrid  and taxation is how do you figure out how may miles are driven on wood verses those driven on gasoline? On the highway I am usually running a blend of woodgas and during the winter almost all of my miles are run on gravel roads and off road.

This information was the most current information I have as of today’s date May 21, 2008 and laws are subject change.

Update July 4, 2008

I had an unexpected visit from the State of  Nebraska, Department of Revenue, Motor Fuels Division.  They came out to my house and checked out my truck and asked a few questions. I am legal as far as the Department was concerned. My interpretation of the law seems to be correct. I am not 100% powered by an alternative fuel, I always use gasoline to start my truck and use the running engine to pull the woodgas up to the motor. Then I usually run in a hybrid mode until the gassifer get stoked up to full production. I am very pleased that they did come out and pay a visit, it was never about taxes anyway. Nice to know I am legal.