Mississippi Laws and Incentives
Listed below are the summaries of all current Mississippi laws, incentives, regulations, funding opportunities, and other initiatives related to alternative fuels and vehicles, advanced technologies, or air quality. You can go directly to summaries of:
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
Propane Education and Research Program
The State Liquefied Compressed Gas Board (Board), established within the Mississippi Insurance Department, regulates matters regarding liquefied compressed gas within the state. The Board may issue grants for the research and development of more cost-effective uses of propane, for educational and safety programs, and for the market development of propane. The Board must review all proposals. For more information, see the Mississippi Insurance Department's Liquefied Compressed Gas website. (Reference Mississippi Code 75-57-119)
Point of Contact
Mississippi Insurance Department, Liquefied Compressed Gas Division
Phone: (601) 359-1064
Laws and Regulations
Energy Performance Contract Authorization
Public entities in Mississippi are authorized to enter into energy services and performance contracts to pay for energy efficiency improvements with energy savings, including savings from the use of alternative fuel vehicles and related infrastructure. (Reference Senate Bill 2876, 2019, and Mississippi Code 31-7-14)
Low-Speed Vehicle Access to Roadways Authorization
The cities of Moss Point, Newton, and Diamondhead may authorize the operation of low-speed vehicles on public roads and streets within city limits. In Moss Point and Diamondhead, a low-speed vehicle is defined as a four-wheeled motor vehicle that is capable of operating at a speed of at least 20 miles per hour (mph) but not greater than 25 mph. In Newton, a low-speed vehicle is a four-wheeled motor vehicle that is not capable of exceeding 20 mph and is equipped with a parking brake, head and tail lamps, seat belts, and turn signals.
Low-speed vehicles may not be operated on interstate highways, Highway 63 or Highway 613 in Moss Point, except for crossing the street. In Diamondhead, low-speed vehicles may not be operated on Interstate Highway 10. The vehicle must comply with safety standards contained in Title 49 of the Code of Federal Regulations, section 571.500.
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)
Plug-In Electric Vehicle and Hybrid Electric Vehicle (HEV) Fees
In addition to standard registration fees, all-electric vehicle owners must pay an annual fee of $150. Plug-in hybrid electric vehicle and HEV owners must pay an annual fee of $75. Beginning July 1, 2021, the Mississippi Department of Revenue will increase the fee annually to account for inflation, equal to the increase in the Consumer Price Index for urban consumers for the prior year. (Reference House Bill 1, 2018, and Mississippi Code 27-19-23)
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)
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)
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)
Biodiesel and Renewable Diesel Definitions and Requirements
All producers, importers, wholesalers, and retailers of biodiesel, biodiesel blends, and renewable diesel blends must register their product with the Mississippi Department of Agriculture and Commerce (Department) 30 days before selling the product. All biodiesel and biodiesel blends offered for sale must be appropriately and conspicuously labeled. Blends up to 5% biodiesel (B5) must be labeled "may contain up to 5% biodiesel;" blends of B6 to B20 must identify the volume percentage of biodiesel; and blends over B20 must identify the volume percentage of biodiesel and be labeled "consult vehicle manufacturer fuel recommendations."
Biodiesel is defined as an oxygenated fuel comprised of mono-alkyl esters of long chain fatty acids from biologically derived oil and fats. A biodiesel blend is defined as a fuel comprised of a specified ratio of biodiesel with petroleum-based fuel. Biodiesel and biodiesel blends must meet specifications set by the Department. Renewable diesel is defined as a conventional diesel fuel substitute produced from nonpetroleum renewable resources.
(Reference Mississippi Department of Agriculture and Commerce Regulations Subpart 4, Chapter 8, Section 113)
Ethanol Labeling Requirement
All gasoline containing 1% or more ethanol by volume offered for sale must be conspicuously identified as "with ethanol" or "containing ethanol." (Reference Mississippi Department of Agriculture and Commerce Regulations Subpart 4, Chapter 8, Section 106)
School Bus Idle Reduction Requirement
The Mississippi State Department of Education requires public school district bus operators to minimize school bus idling to reduce exposure to diesel exhaust. (Reference Mississippi Code 37-11-71)
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)