Louisiana Laws and Incentives

Listed below are the summaries of all current Louisiana 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:

State Incentives

Louisiana's National Electric Vehicle Infrastructure (NEVI) Planning

The U.S. Department of Transportation’s (DOT) NEVI Formula Program requires the Louisiana Department of Transportation (La DOTD) to submit an annual EV Infrastructure Deployment Plan (Plan) to the DOT and U.S. Department of Energy (DOE) Joint Office of Energy and Transportation (Joint Office), describing how the state intends to distribute NEVI funds. The submitted plans must be established according to NEVI guidance.

For more information about Louisiana’s NEVI planning process, see the La DOTD Electric Vehicle Infrastructure website. To review Louisiana’s NEVI plan, see the Joint Office State Plans for EV Charging website.

Natural Gas Vehicle Weight Exemption

A vehicle powered by compressed or liquefied natural gas may exceed the state’s gross and axle vehicle weight limits by a weight equal to the difference between the weight of the vehicle with the natural gas tank and a comparable diesel tank system, up to 2,000 pounds. This exemption applies on all state roads and interstate highways.

(Reference Louisiana Revised Statutes 32:386)

Provision for Green Jobs Tax Credit

Pending available funding, the Louisiana Department of Economic Development will offer a corporate or income tax credit for qualified capital infrastructure projects in Louisiana that are directly related to industries including, but not limited to, the advanced drivetrain vehicle and biofuels industries. The tax credit is for 7% to 18% of the project costs, calculated based on the investment costs, up to $1,000,000 per state-certified green project. The portion of the base investment expended on payroll for Louisiana residents employed in connection with the construction of the project may be eligible for an additional 7.2% tax credit on the payroll. Annual credits caps apply and credits will be distributed on a first-come, first-served basis to eligible recipients. Restrictions may apply.

(Reference Louisiana Revised Statutes 47:6037)

Utility / Private Incentives

Electric Vehicle Charging Station Time-of-Use (TOU) Rebate - Entergy

Entergy offers residential customers in New Orleans a $7 monthly rebate to charge EVs during off-peak hours. Additional conditions apply. For more information, see the Entergy Energy Smart Bring Your Own Charger website.

Electric Equipment and Electric Vehicle (EV) Charging Station Incentive - Entergy

Entergy offers commercial customers rebates for the purchase of select EVs and Level 2 EV charging stations. Rebates are available in the following amounts:

Technology Rebate Amounts
Electric Forklifts Up to $500
Electric Drayage Trucks $1,500
Electric Truck Refrigeration $1,000
Electric Cranes Up to $25,000
Electric Scissor and Boom Lift $100
Light-Duty Electric Burden Carrier $100
Electric Walk-Behind Floor Scrubber $100
Electric Riding Floor Scrubber $150
Electric Golf Cart $150
Level 2 EV Charging Station $250
Direct Current Fast Charging (DCFC) Station Up to $1,500

Other technologies may be eligible for this incentive on a case-by-case basis. For more information, including eligible technologies, see the Entergy eTech website.

Electric Vehicle (EV) Charging Station Rebate – Southwestern Electric Power Company (SWEPCO)

SWEPCO offers residential customers a $250 rebate for the installation of an ENERGY STAR certified Level 2 EV charging station. Additional terms and conditions apply. For more information, including how to apply and funding availability, see the SWEPCO Level 2 Home EV Charging Station Rebate Program website.

Electric Vehicle (EV) Infrastructure Support

Louisiana utilities joined the National Electric Highway Coalition (NEHC), committing to create a network of direct current fast charging (DCFC) stations connecting major highway systems from the Atlantic Coast to the Pacific of the United States. NEHC utility members agree to ensure efficient and effective fast charging deployment plans that enable long distance EV travel, avoiding duplication among coalition utilities, and complement existing corridor DCFC sites. For more information, including a list of participating utilities and states, see the NEHC website.

Laws and Regulations

Propane Self-Service Fueling Station Regulations

Propane retailers may offer self-service, coin-operated, credit card, or any other pump-activating fuel dispensing device to the general public. The retailer must post readily-visible step-by-step instructions to the operator. The Louisiana Liquefied Petroleum Gas Commission must promulgate and adopt rules and regulations to provide education and instruction on the safe operation and use of automatic fuel dispensing devices.

(Reference Louisiana Revised Statutes 40:1853.1)

Electric Vehicle (EV) Fee

In addition to standard vehicle registration fees, EV owners must pay an annual fee of $110 and plug-in hybrid electric vehicle owners must pay an annual fee of $60.

(Reference Louisiana Revised Statutes 32:461)

Alternative Fuel Excise Taxes

All licensed on-road vehicles fueled with compressed natural gas (CNG) or liquefied petroleum gas (propane) are subject to a special fuels tax through the Excise Taxes Division of the Louisiana Department of Revenue. Vehicle owners or operators must pay a special fuels tax of $0.16 per gallon equivalent of natural gas at the time fuel is dispensed or delivered into the tank of a motor vehicle. A gasoline gallon equivalent is equal to 5.66 lbs. of CNG and a diesel gallon equivalent is equal to 6.06 lbs. of liquefied natural gas (LNG). A gallon of propane is subject to 73% of the state tax on a gallon of gasoline. Alternative fuel distributers must be licensed by the state.

(Reference Louisiana Revised Statutes 47:802.3 and 47.818.111)

Alternative Fuel and Advanced Vehicle Acquisition Requirements

The Louisiana Division of Administration must purchase dedicated alternative fuel vehicles (AFVs) capable of operating on natural gas or liquefied petroleum gas (propane), or bi-fuel vehicles capable of operating on conventional fuel or natural gas, propane, or any non-ethanol advanced biofuel. State agency vehicles may be granted a waiver if fueling stations are not available within a 25 mile radius, the agency cannot recoup the incremental cost of the vehicle within 60 months, or the available vehicles do not meet agency specifications.

Any AFV a state agency purchases or leases must have a minimum fuel economy of 18 miles per gallon (mpg) for city driving, 28 mpg for highway driving, or a combined city/highway average of 24 mpg. Law enforcement vehicles, certified emergency vehicles, and state agency vehicles with prior written authorization are exempt from this requirement.

(Reference Louisiana Revised Statutes 39:364 and 39:1646)

Renewable Fuel Standard

Within six months following the point at which monthly production of denatured ethanol produced in Louisiana equals or exceeds a minimum annualized production volume of 50 million gallons, at least 2% of the total gasoline sold by volume in the state must be denatured ethanol. Ethanol is defined an ethyl alcohol that has a purity of at least 99%, exclusive of added denaturants; meets U.S. Bureau of Alcohol, Tobacco, Firearms, and Explosives and ASTM specification D4806; and is produced from domestic agricultural or biomass products. This requirement will not be effective until six months after the average wholesale price of a gallon of Louisiana-manufactured ethanol, less any federal tax incentives or credits, is equal to or below the average wholesale price of a gallon of regular unleaded gasoline in Louisiana for a period of not less than 60 days, as determined by the Louisiana Department of Agriculture and Forestry (Department).

Within six months following the point at which monthly production of biodiesel produced in the state equals or exceeds a minimum annualized production volume of 10 million gallons, at least 2% of the total diesel sold by volume in the state must be biodiesel produced from domestically grown feedstock. Biodiesel is a fuel comprised of mono-alkyl esters of long chain fatty acids derived from renewable resources and meeting the requirements of ASTM specification D6751, or a diesel fuel substitute produced from non-petroleum renewable resources such as vegetable oils and animal fats that meet U.S. Environmental Protection Agency fuel and fuel additive requirements.

Alternatively, these requirements may be met through the production of an alternate renewable fuel, defined as a liquid fuel that is domestically produced from renewable biomass, can be used in place of ethanol or biodiesel, and meets the definition of renewable fuel in the Energy Policy Act of 2005. Within six months following the point at which cumulative monthly production of an alternate renewable fuel produced in the state equals or exceeds a minimum annual production volume of 20 million gallons, at least 2% of the total motor fuel sold by volume in the state must be the alternate renewable fuel produced from domestically grown feedstock. This requirement may not exceed 2% of the total motor fuel sold by volume by owners or operators of fuel distribution terminals.

Blenders and retailers will have six months to meet the new minimum ethanol, biodiesel, or alternate renewable fuel content requirements, unless the Louisiana Commission of Weights and Measures determines that the quality or supply of ethanol or biodiesel in the state is insufficient or fuel distributors are unable to blend ethanol due to delays in obtaining permits or constructing ethanol blending or storage equipment. Any combination of alternative fuels, including but not limited to denatured ethanol, biodiesel, and alternative renewable fuel may be used to meet these requirements. Fuels containing ethanol or biodiesel will not be required to be sold in ozone nonattainment areas. The Department will adopt rules and regulations requiring incentives to compensate for any costs associated with achieving the minimum ethanol and biodiesel standards. The Department defines domestically grown feedstock to include any feedstock produced in the United States. Because in-state volume requirements are currently being met through the U.S. Renewable Fuel Standard, the state has not implemented any formal procedures to enforce the regulation.

The Louisiana Legislature encourages in-state restaurants to provide their waste fats, oils, and grease to biodiesel production facilities and store their waste fats, oils, and grease in a manner that facilitates the use of these products in a biodiesel production facility

(Reference Louisiana Revised Statutes 3:4674, 3:4674.1, and 3:3712)

Biofuels Feedstock Requirements

The minimum percentage of Louisiana-harvested corn and soybeans used to produce renewable fuel in Louisiana facilities must be at least the same percentage of corn and soybeans used nationally to produce renewable fuel as reported by the U.S. Department of Agriculture’s Office of the Chief Economist. To ensure that the appropriate amounts of Louisiana-harvested feedstocks are available for renewable fuel production, renewable fuel manufacturing facilities are responsible for communicating their anticipated production levels and specific feedstock requirements to the Department of Agriculture and Forestry 180 days before the start of commercial operation and on an annual basis thereafter. Additionally, all renewable fuel manufacturing plants must provide an annual report to the state that includes certification that the plant has purchased Louisiana feedstock; production levels; the amount, type, and origination of feedstock used; and any financial benefits the state has provided, including grants, financing, and exemptions.

(Reference Louisiana Revised Statutes 3:3712)

Low-Speed Vehicle Access to Roadways

Low-speed vehicles may only be used on roads that have a posted speed limit of up to 35 miles per hour (mph), but may cross a highway with a posted speed limit greater than 35 mph. The low-speed vehicle must be equipped with safety equipment as specified in Title 49 of the Code of Federal Regulations, section 571.500, and must be registered with the Louisiana Office of Motor Vehicles.

(Reference Louisiana Revised Statutes 32:300.1)

Compressed Natural Gas (CNG) and Propane Regulatory Authority

The Louisiana Department of Natural Resources’ Office of Conservation has regulatory authority over CNG safety, including fueling stations and the installation of conversion equipment in a vehicle. Vehicles capable of operating on liquefied petroleum gas (propane) must have passed a safety inspection from the Louisiana Liquefied Petroleum Gas Commission.

(Reference Louisiana Revised Statutes 30:731 and 30:732)

Deregulation of Compressed Natural Gas (CNG) as a Motor Fuel

The Public Service Commission does not regulate the sale of CNG by producers, pipelines, distribution companies, or other persons when it is to be used as a transportation fuel.

(Reference Louisiana Revised Statutes 45:1163)

Alternative Fuel Access Policies for Local Governments

Local governments may not adopt an ordinance, rule, or law that limits consumer access to alternative transportation fuels, including biofuel, compressed natural gas, electricity, hydrogen, propane, and renewable diesel.

(Reference Louisiana Revised Statutes 51:3043)

Electric Vehicle (EV) Charging Station Promotion

The State must support the development of a statewide EV charging network by:

  • Improving the quality, quantity, and variety of EV charging station infrastructure;
  • Improving consumer experience at EV charging stations across the State;
  • Encouraging the Louisiana Public Service Commission (LPSC) to establish an EV charging station rate structure for public direct current fast charging (DCFC) stations that increases price transparency and stabilizes electricity costs; and,
  • Encouraging the LPSC to deregulate EV charging stations.

(Reference Louisiana Revised Statutes 45:1622 and 45:1623)

Electric Vehicle (EV) Charging Station Regulation

The Louisiana Commission of Weights and Measures (Commission) is authorized to regulate the use of commercial metering and measuring devices, including those used to determine the amount of electricity supplied from EV charging stations. The Commission may conduct investigations and hold hearings related to the use of these devices.

(Reference Louisiana Revised Statutes 3:4602 and 3:4604 and House Bill 60, 2023)