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.
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.
- $0.11 per DGE from January 1, 2020, until December 31, 2024; and
- $0.17 per DGE from January 1, 2025, and beyond.
- $0.11 per gallon from January 1, 2020, until December 31, 2024; and
- $0.17 per gallon from January 1, 2025, and beyond.
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 414.400 and 414.410)
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.
|Gross Vehicle Weight (GVW)||Type of Vehicle||Decal Fee|
|18,000 pounds (lbs.) or less||Passenger, School Bus, or Commercial||$75|
|18,001 lbs.-36,000 lbs.||Farm or Farming Transportation with an 'F' License Plate||$100|
|18,001 lbs.-36,000 lbs.||Passenger-Carrying and Other Motor Vehicles||$150|
|36,000 lbs. or more||Farm or Farming Transportation with an 'F' License Plate||$250|
|36,000 lbs. or more||All Other Motor Vehicles||$1,000|
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)
Alternative Fuel Vehicle (AFV) Emissions Inspection Exemption
Vehicles powered exclusively by electricity, including low-speed vehicles, 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)
Medium- and Heavy-Duty Shuttle and Transit Bus Grants
The Missouri Department of Natural Resources (MODNR) provides funding for the replacement of medium- and heavy-duty transit and shuttle buses with new diesel or alternative fuel vehicles or engines. Vehicles and engines must meet model year requirements, and funding amounts are based on vehicle or engine replacements and government or nongovernment ownership. The program is funded by Missouri’s portion of the Volkswagen Environmental Mitigation Trust. For more information, including program guidance and application periods, see the MODNR Volkswagen Trust Funds website.
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)
More Laws and Incentives
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