Natural Gas Laws and Incentives in South Dakota

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

Laws and Regulations

Alternative Fuel Tax

Liquefied natural gas (LNG), ethyl alcohol, and methyl alcohol are taxed at a rate of $0.14 per gasoline gallon equivalent (GGE) when used as motor fuel. Compressed natural gas (CNG) and propane used as motor fuel are taxed at a rate of $0.10 per GGE and $0.20 per GGE, respectively. For taxation purposes, the fuels are converted to GGEs as follows:

  • One GGE of LNG is equal to 1.5536 volumetric gallons of LNG
  • One GGE of CNG is equal to 126.67 cubic feet of its natural service delivery line pressure
  • One GGE of propane is equal to 4.24 pounds per gallon of liquid at 60 degrees Fahrenheit
(Reference South Dakota Statutes 10-47B-3 and 10-47B-4)

More Laws and Incentives

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