Search Federal and State Laws and Incentives

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 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.

Ethanol Blend Mandate

All gasoline offered for sale at retail stations within the state must contain 10% ethanol (E10). This requirement is waived only if a distributor is unable to purchase ethanol or ethanol-blended gasoline at the same or lower price as unblended gasoline. Premium gasoline is exempt from this requirement. Ethanol is defined as fuel that is derived from an agricultural source and that meets ASTM specification D4806. (Reference Missouri Revised Statutes 414.255)

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)

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.