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Missouri Incentives and Laws

Listed below are the summaries of all current Missouri incentives, laws, 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 (6)
• Utility/Private Incentives (2)
• Laws and Regulations (7)

State Incentives

Alternative Fueling Infrastructure Tax Credit

For tax years beginning before January 1, 2012, an income tax credit is available for the cost of constructing a qualified alternative fueling station. The amount of the credit is 20% of the costs directly associated with the purchase and installation of any alternative fuel storage and dispensing equipment, up to $20,000. The total amount of tax credits claimed may not exceed $1 million for the 2011 tax year. Tax credits may be carried forward for two years and may be transferred or sold, but will be forfeited if a tax credit recipient stops selling alternative fuel. Eligible fuels include any mixture of biodiesel and diesel fuel, as well as fuel containing at least 70% of the following alternative fuels: ethanol, compressed natural gas, liquefied natural gas, liquefied petroleum gas or propane, and hydrogen. (Reference Missouri Revised Statutes 135.710)

Ethanol Production Incentive

The Missouri Department of Agriculture manages the Missouri Ethanol Producer Incentive Fund (Fund), which provides monthly grants to two qualified Missouri ethanol producers who are actively engaged in agricultural production for commercial purposes and own at least 51% of the production facility. The grants are available for $0.20 per gallon for the first 12.5 million gallons and $0.05 for the next 12.5 million gallons of ethanol produced from Missouri agricultural products or qualified biomass each fiscal year, up to $7.5 million per producer. Ethanol must meet ASTM specification D4806 or subsequent specifications. This incentive expires on December 31, 2015. (Reference Missouri Revised Statutes 142.028 and 142.029)

Biodiesel Fuel Use Incentive

Through the 2011-2012 school year, school districts are allowed to establish contracts with nonprofit, farmer-owned, new generation cooperatives to purchase biodiesel blends of 20% (B20) or higher for use in operating buses. Every school district that contracts with an eligible new generation cooperative for biodiesel will receive an additional payment through its state transportation aid payment if there is an incremental cost to purchase the biodiesel. (Reference Missouri Revised Statutes 414.433)

State Fleet Biodiesel Fuel Use Incentive

The Missouri Biodiesel Fuel Revolving Fund uses the money generated by the sale of Energy Policy Act of 1992 (EPAct) credits to cover the incremental cost of purchasing fuel containing biodiesel blends of at least 20% (B20) for state fleet vehicle use. (Reference Missouri Revised Statutes 414.407)

Idle Reduction Weight Exemption

Any vehicle equipped with qualified idle reduction technology may exceed the state's gross and axle weight limits by up to 400 pounds to compensate for the additional weight of the idle reduction technology. The vehicle operator must be able to provide proof of the weight of the idle reduction technology and that it is fully functional at all times. (Reference Missouri Revised Statutes 304.180)

Alternative Fuel Vehicle (AFV) Emission Inspection Exemption

Vehicles that are powered exclusively by electricity, including low-speed vehicles; hydrogen; or fuels other than gasoline are exempt from motor vehicle emissions inspection under federal regulation are exempt from state emissions inspection requirements. (Reference House Bill 354, 2011, and Missouri Revised Statutes 643.315)

Utility/Private Incentives

Natural Gas Technical Assistance - Laclede Gas Company

Laclede Gas Company is a supplier of natural gas and provides information regarding compressed natural gas (CNG) vehicles. Laclede Venture Corporation, a non-utility subsidiary of Laclede Gas Company, installs and maintains CNG fueling stations in Missouri and also provides consulting engineering services nationwide.

Natural Gas Fleet Services - Clean Energy

Clean Energy Fuels offers services to the natural gas vehicle industry that include competitive compressed natural gas pricing for larger fleet customers, as well as alternative fuel vehicle financing.

Laws and Regulations

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)

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)

Biodiesel Use Requirement

At least 75% of the Missouri Department of Transportation (MoDOT) vehicles and heavy equipment that use diesel fuel must be fueled with biodiesel blends of at least 20% (B20), if such fuel is commercially available. The blended biodiesel fuel will be considered commercially available if the incremental purchase cost is not more than $0.25 compared to conventional diesel fuel. To the maximum extent practicable, MoDOT may obtain funding for the incremental cost of the blended biodiesel fuel from the state's Biodiesel Fuel Revolving Fund. (Reference Missouri Revised Statutes 414.407 and 414.365)

Alternative Fuel Vehicle (AFV) Decal

The $0.17 per gallon motor fuel tax does not apply to passenger vehicles, certain buses, or commercial vehicles that are powered by an alternative fuel. The owners or operators of such vehicles are required to pay an annual alternative fuel decal fee as follows (certain restrictions apply):

A vehicle that requires an alternative fuel decal may not operate on state highways without a valid decal. No person may fuel an AFV with liquefied petroleum gas (propane) or natural gas unless the vehicle has a valid decal. Motor vehicles licensed as historic vehicles that are powered by alternative fuels are exempt from the motor fuels tax as well as the alternative fuel decal requirement.

(Reference Missouri Revised Statutes 142.803 and 142.869)

Liquefied Petroleum Gas (Propane) License

Any individual that transports, handles, or sells propane at retail, or is in the business of installing or modifying related equipment, must first register with the Missouri Department of Agriculture. (Reference Missouri Revised Statutes 323.060)

Low-Speed Vehicle Access to Roadways

A low-speed vehicle is defined as a four-wheeled vehicle with a maximum speed of 25 miles per hour (mph) that is manufactured in compliance with safety standards specified in Title 49 of the Code of Federal RegulationsMissouri Revised Statutes 304.029)

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 and provides recommendations on changes to state law to facilitate the sale and distribution of alternative fuels and alternative fuel vehicles; promotes the development, sale, distribution, and consumption of alternative fuels; promotes the development and use of alternative fuel vehicles and technology that will enhance the use of alternative and renewable transportation fuels; educates consumers about alternative fuels; and develops a long-range plan for the state to reduce consumption of petroleum fuels. (Reference Missouri Revised Statutes 414.420)