Propane Laws and Incentives in Louisiana

The list below contains summaries of all Louisiana laws and incentives related to propane.

Laws and Regulations

Alternative Fuel Access Policies for Local Governments

Local governments may not adopt an ordinance, rule, or law that limits consumer access to alternative transportation fuels, including biofuel, compressed natural gas, electricity, hydrogen, propane, and renewable diesel.

(Reference Louisiana Revised Statutes 51:3043)

Alternative Fuel Excise Taxes

All licensed on-road vehicles fueled with compressed natural gas (CNG) or liquefied petroleum gas (propane) are subject to a special fuels tax through the Excise Taxes Division of the Louisiana Department of Revenue. Vehicle owners or operators must pay a special fuels tax of $0.16 per gallon equivalent of natural gas at the time fuel is dispensed or delivered into the tank of a motor vehicle. A gasoline gallon equivalent is equal to 5.66 lbs. of CNG and a diesel gallon equivalent is equal to 6.06 lbs. of liquefied natural gas (LNG). A gallon of propane is subject to 73% of the state tax on a gallon of gasoline. Alternative fuel distributers must be licensed by the state.

(Reference Louisiana Revised Statutes 47:802.3 and 47.818.111)

Alternative Fuel and Advanced Vehicle Acquisition Requirements

The Louisiana Division of Administration must purchase dedicated alternative fuel vehicles (AFVs) capable of operating on natural gas or liquefied petroleum gas (propane), or bi-fuel vehicles capable of operating on conventional fuel or natural gas, propane, or any non-ethanol advanced biofuel. State agency vehicles may be granted a waiver if fueling stations are not available within a 25 mile radius, the agency cannot recoup the incremental cost of the vehicle within 60 months, or the available vehicles do not meet agency specifications.

Any AFV a state agency purchases or leases must have a minimum fuel economy of 18 miles per gallon (mpg) for city driving, 28 mpg for highway driving, or a combined city/highway average of 24 mpg. Law enforcement vehicles, certified emergency vehicles, and state agency vehicles with prior written authorization are exempt from this requirement.

(Reference Louisiana Revised Statutes 39:364 and 39:1646)

Compressed Natural Gas (CNG) and Propane Regulatory Authority

The Louisiana Department of Natural Resources’ Office of Conservation has regulatory authority over CNG safety, including fueling stations and the installation of conversion equipment in a vehicle. Vehicles capable of operating on liquefied petroleum gas (propane) must have passed a safety inspection from the Louisiana Liquefied Petroleum Gas Commission.

(Reference Louisiana Revised Statutes 30:731 and 30:732)

Propane Self-Service Fueling Station Regulations

Propane retailers may offer self-service, coin-operated, credit card, or any other pump-activating fuel dispensing device to the general public. The retailer must post readily-visible step-by-step instructions to the operator. The Louisiana Liquefied Petroleum Gas Commission must promulgate and adopt rules and regulations to provide education and instruction on the safe operation and use of automatic fuel dispensing devices.

(Reference Louisiana Revised Statutes 40:1853.1)

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