Natural Gas Laws and Incentives in Missouri

The list below contains summaries of all Missouri laws and incentives related to natural gas.

Laws and Regulations

Alternative Fuel Promotion

The Missouri Alternative Fuels Commission (Commission) promotes the continued production and use of alternative transportation fuels in Missouri. The Commission submits a report annually to the governor and general assembly that includes: - Recommendations on changes to state law to facilitate the sale and distribution of alternative fuels and alternative fuel vehicles (AFV); - Promotes the development, sale, distribution, and consumption of alternative fuels; - Promotes the development and use of AFVs and technology that will enhance the use of alternative and renewable fuels; - Educates consumers about alternative fuels; and, - Develops a long-range plan for the state to reduce consumption of petroleum fuels.

For more information, see the Missouri Alternative Fuels Commission website.

(Reference Missouri Revised Statutes 414.420)

Alternative Fuel Tax

Compressed natural gas (CNG) used as a vehicle fuel is taxed on a gasoline gallon equivalent (GGE) basis as follows:

• $0.11 per GGE from January 1, 2020, until December 31, 2024; and,
• $0.17 per GGE from January 1, 2025, and beyond.

Liquefied natural gas (LNG) used as a vehicle fuel is taxed on a diesel gallon equivalent (DGE) basis as follows:

• $0.11 per DGE from January 1, 2020, until December 31, 2024; and,
• $0.17 per DGE from January 1, 2025, and beyond.

Liquefied petroleum gas (propane) used as a vehicle fuel is taxed on a gasoline gallon basis as follows:

• $0.11 per gallon from January 1, 2020, until December 31, 2024; and,
• $0.17 per gallon from January 1, 2025, and beyond.

In the absence of a National Institute of Standards and Technology definition of GGE, a GGE will be equal to 5.66 pounds (lbs) of natural gas for CNG and a DGE will be equal to 6.06 lbs. for LNG. If natural gas is used for fueling vehicles as well as for another use, such as home heating, the tax applies to the entire amount of natural gas consumed, unless the Missouri Department of Revenue approves a separate meter and accounting system.

(Reference Missouri Revised Statutes 142.803 and 142.869)

Alternative Fuel Vehicle (AFV) Acquisition and Alternative Fuel Use Requirements

A state agency that operates a vehicle fleet consisting of 15 vehicles or more must ensure that at least 50% of new vehicles purchased over a defined biennial period are capable of operating using an alternative fuel. Excess acquisitions of AFVs may be credited towards future biennial goals. If a state agency fails to meet a biennial acquisition goal, purchases of any non-AFVs are not permitted until the goals are met or an exemption or goal reduction has been granted. In addition, 30% of the fuel purchased annually for use in operating state fleet vehicles must be alternative fuels.

(Reference Missouri Revised Statutes 414.4365and 414.407)

Alternative Fuel Vehicle (AFV) Decal

The state motor fuel tax does not apply to passenger vehicles, certain buses, or commercial vehicles that are powered by an alternative fuel, if the vehicles obtain an AFV decal. Owners or operators of AFVs that also own or operate a personal fueling station must pay an annual alternative fuel decal fee, as listed below. Alternative fuel motor vehicles licensed as historic vehicles are exempt from the alternative fuel decal requirement.

The decal fee for plug-in hybrid electric vehicles model year 2018 and later is one-half of the annual decal fees listed above for their corresponding vehicle type and GVW.

Owners and operators of passenger motor vehicles, buses, or commercial motor vehicles that are powered by compressed natural gas (CNG), liquefied natural gas (LNG), or liquefied petroleum gas (propane), may continue to apply for and use the alternative fuel decal in lieu of paying the CNG, LNG, and/or propane tax, as long as the they have installed a fueling station used solely to fuel his or her vehicle(s). If an owner or operator of a motor vehicle powered by propane that bears an alternative fuel decal refuels at an unattended propane fueling station, such owner or operator shall not be eligible for a refund of the motor fuel tax paid at the time of refueling. For more information, see the Missouri Department of Revenue Special Fuel Decals website.

(Reference Missouri Revised Statutes 142.803 and 142.869)

Renewable Fuel Distributor and Vehicle Manufacturer Liability Protection

Renewable fuel refiners, suppliers, terminals, wholesalers, distributors, retailers, and motor vehicle manufacturers and dealers are not liable for property damages related to a customer’s purchase of renewable fuel, including blends, if the consumer selected the fuel for use. Motor fuel blended with any amount of renewable fuel will not be considered a defective product provided the fuel compiles with motor fuel quality regulations.

(Reference Missouri Revised Statutes 414.255)

State Incentives

Alternative Fuel Vehicle (AFV) Emissions Inspection Exemption

Vehicles powered exclusively by electricity, including hydrogen or fuels other than gasoline that are exempt from motor vehicle emissions inspection under federal regulation, are exempt from state emissions inspection requirements. (Reference Missouri Revised Statutes 643.315)

Natural Gas Vehicle (NGV) and Idle Reduction Weight Exemption

Any vehicle equipped with qualified idle reduction technology may exceed the state’s gross and axle weight limits by up to 550 pounds to compensate for the additional weight of the idle reduction technology. The vehicle operator must be able to provide proof of the weight of the idle reduction technology and that it is fully functional at all times.

A vehicle primarily powered by natural gas may exceed the state’s gross vehicle weight limits by a weight equal to the difference between the weight of the vehicle with the natural gas tank and fueling system and the weight of a comparable vehicle with a diesel tank and fueling system. The NGV maximum gross weight may not exceed 82,000 pounds.

(Reference Missouri Revised Statutes 304.180)

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