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Mississippi Incentives and Laws

Listed below are the summaries of all current Mississippi 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 (2)
• Utility/Private Incentives (3)
• Laws and Regulations (7)

State Incentives

Biofuels Production Incentive

The Mississippi Department of Agriculture and Commerce (Department) provides incentive payments to qualified ethanol and biodiesel producers located in Mississippi. The Department may issue payments of $0.20 per gallon for up to 30 million gallons per year per producer for a period of up to 10 years following the start date of production. The Department will not make payments for production after June 30, 2015, and the maximum total annual payment to a single producer per fiscal year is $6 million. (Reference Mississippi Code 69-51-5)

Propane Education and Research Program

The State Liquefied Compressed Gas Board (Board), operated through the Mississippi Insurance Department, enforces laws and regulations regarding the distribution of liquefied compressed gases within the state. The Board may issue grants to Mississippi-based entities for the purpose of promoting and researching the development of more cost-effective uses of propane. Educational, safety, and market development programs may also qualify for grant funding. The Board must review all proposals. (Reference Mississippi Code 75-57-119)

Utility/Private Incentives

Natural Gas Fuel Rate Reduction and Vehicle Incentives

Atmos Energy offers incentives for natural gas vehicles on a case-by-case basis and offers special rates for natural gas when used to operate a vehicle.

Natural Gas Infrastructure Technical Assistance

CenterPoint Energy offers preliminary feasibility studies for compressed natural gas fueling stations and may assist with vendor selection on a case-by-case basis within the CenterPoint Energy service area.

Natural Gas Fleet Services

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

Fuel-Efficient and Alternative Fuel Vehicle Use

The Mississippi Department of Finance and Administration's Bureau of Fleet Management (Bureau) coordinates and promotes fuel efficiency and economy 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 appropriate for the intended purpose and, when feasible, use alternative fuels, including ethanol, biodiesel, natural gas, or electricity to operate the vehicles. By July 1, 2014, 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)

Installation of Alternative Fuel Components in Vehicles

An authorized installer or automobile manufacturer must install all propane and compressed natural gas (CNG) carburetion systems. When not installed by a qualified installer or manufacturer, the State Liquefied Compressed Gas Board (Board) or Mississippi Insurance Department must inspect the system. A field inspector must inspect all propane and CNG carburetion systems installed on vehicles used in public transportation, including school buses. The Board may require the inspection of any propane or CNG carburetion systems installed on other vehicle types as necessary. All installations must comply with the rules and regulations of the Board. Any installer of a propane or CNG carburetion system who collects an installation service fee must hold an installer's license from the Board and must notify the Board of any applicable installation. (Reference Mississippi Code 75-57-47)

Natural Gas Tax

Distributors of compressed and liquefied natural gas must pay a fuel tax based on a per 100 cubic feet rather than on a gallon equivalent basis. Operators of motor vehicles using and/or capable of using compressed gas must also pay an annual privilege tax, as determined by the gross vehicle weight rating. (Reference Mississippi Code 27-59-11 and 65-39-35)

Compressed Natural Gas (CNG) and Propane Deregulation

The transmission, sale, or distribution of CNG and distribution or sale of propane gas is deregulated for use as a motor vehicle fuel and for related purposes. (Reference Mississippi Code 77-3-3 and 77-3-11)

Biodiesel and Renewable Diesel Definitions, Registration, and Labeling Requirements

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 Mississippi Department of Agriculture and Commerce. Renewable diesel is defined as fuel produced from biological material using thermal depolymerization that meets ASTM specification D975 or D396.

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 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% diesel;" blends of B6 to B20 must identify volume percentage of biodiesel fuel; and blends over B20 must be labeled "consult vehicle manufacturer fuel recommendations."

(Reference Mississippi Department of Agriculture and Commerce Regulations Subpart 4, Chapter 8, Section 113)

Ethanol Labeling Requirement

All gasoline offered for sale containing 1% or more ethanol by volume must be conspicuously identified as "with ethanol" or "containing ethanol." (Reference Mississippi Department of Agriculture and Commerce Regulations Subpart 4, Chapter 8, Section 106)

State Employee Travel Policy

All state agencies and institutions must develop and adopt travel policies that include strategies to reduce petroleum consumption, such as carpooling to meetings and purchasing alternative fuels where available. (Reference Executive Order 82, 2009)