Natural Gas Laws and Incentives in Mississippi
The list below contains summaries of all Mississippi laws and incentives related to natural gas.
Alternative Fuel Vehicle (AFV) Revolving Loan Program
The Mississippi Alternative Fuel School Bus and Municipal Motor Vehicle Revolving Loan Program provides zero-interest loans for public school districts and municipalities to cover the incremental cost to purchase alternative fuel school buses and other motor vehicles, convert school buses and other motor vehicles to use U.S. Environmental Protection Agency compliant alternative fuel systems, purchase alternative fuel equipment, and install fueling stations. Loans are available for up to $300,000 for the purchase and retrofit of AFVs, and up to $500,000 for the purchase and installation of fueling station equipment and infrastructure. Eligible alternative fuels include propane and natural gas. For more information, refer to the Alternative Fuel School Bus and Municipal Motor Vehicle Revolving Loan Program website. (Reference Mississippi Code 57-1-421)
Point of Contact
Mississippi Development Authority, Energy and Natural Resources Division
Laws and Regulations
Compressed Natural Gas (CNG) Vehicle Decals
Any person operating a vehicle that is fueled by CNG must obtain and display a user's decal from the Mississippi Department of Revenue. Vehicle owners must apply for a decal within 15 days of purchasing a CNG vehicle or converting a vehicle to operate on CNG, and the decals are issued on an annual basis. Owners may not obtain a privilege license tag from their county tax collectors unless they have filed an application for the natural gas user's decal or their vehicle bears a current decal. (Reference Mississippi Code 27-59-3 and 27-59-29)
Fuel-Efficient and Alternative Fuel Vehicle Use
The State Bureau of Fleet Management (Bureau), operated through the Mississippi Department of Finance and Administration, coordinates and promotes fuel efficiency when state agencies purchase, lease, rent, acquire, use, maintain, and dispose of vehicles. The Bureau encourages state agencies to use fuel-efficient or hybrid electric vehicles as appropriate and, when feasible, use alternative fuels, including ethanol, biodiesel, natural gas, or electricity, to operate the vehicles. At least 75% of all vehicles titled under the Bureau must have a U.S. Environmental Protection Agency estimated fuel economy rating of at least 40 miles per gallon for highway driving. (Reference Mississippi Code 25-1-77)
Installation of Alternative Fuel Components in Vehicles
A propane or compressed natural gas (CNG) carburetion system installer who collects an installation service fee must hold an installer's license from the State Liquefied Compressed Gas Board (Board) and must notify the Board of any applicable installation. The Board or the Mississippi Insurance Department must inspect propane or CNG carburetion systems not installed by a qualified installer or manufacturer. Regardless of installer, a field inspector must inspect all propane and CNG carburetion systems installed on public transportation vehicles, including school buses. The Board may require the inspection of any propane or CNG carburetion systems installed on other vehicle types as necessary, and all installations must comply with its rules and regulations. (Reference Mississippi Code 75-57-47)
Natural Gas Tax
Compressed natural gas (CNG) and liquefied natural gas (LNG) used as motor fuel must be sold in gasoline gallon equivalents (GGE) or diesel gallon equivalents (DGE). A GGE of CNG is equal to 5.66 pounds (lbs.) and a DGE of LNG is equal to 6.06 lbs.
Operators of motor vehicles capable of using natural gas must pay an annual flat rate privilege tax if the vehicle has a gross vehicle weight rating (GVWR) of 10,000 lbs. or less. Natural gas vehicles (NGVs) with a GVWR greater than 10,000 lbs. are subject to privilege taxes charged per hundred cubic feet of CNG and per diesel gallon equivalent of LNG; operators must prepay a portion of this tax annually. The Mississippi Department of Revenue may require the operator of five or more NGVs to pay the tax on all fuel purchased for any purpose; in this case, the fuel distributor will collect the excise tax at the time of sale or delivery. Distributors of natural gas for use in motor vehicles must also pay a privilege tax. Taxes on distributors and utilities do not apply to sales or deliveries made to persons who hold permitted compressed gas user's decals.
(Reference Mississippi Code 27-59-11 and 75-27-114)
Natural Gas and Propane Deregulation
The transmission, sale, or distribution of natural gas and distribution or sale of propane is deregulated when used as motor vehicle fuel. (Reference Mississippi Code 77-3-3 and 77-3-11)
More Laws and Incentives
To find laws and incentives for other alternative fuels and advanced vehicles, search all laws and incentives.