Missouri Natural Gas Laws and Incentives

Utilities/Private Incentives

Natural Gas Infrastructure Technical Assistance and Maintenance

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 Infrastructure Technical Assistance

Atmos Energy offers preliminary feasibility studies for compressed natural gas refueling stations and may assist with vendor selection on a case-by-case basis.

State Incentives

Alternative Fueling Infrastructure Tax Credit

An income tax credit is available for the costs of constructing a qualified alternative fuel vehicle fueling station. The tax credit may not exceed the lesser of $20,000 or 20% of the costs directly associated with the purchase and installation of any alternative fuel storage and dispensing equipment. The total amount of tax credits claimed may not exceed $3,000,000 for taxable year 2009, $2,000,000 for taxable year 2010, and $1,000,000 for taxable year 2011. Tax credits may be carried forward for two years and maybe transferred or sold, but will be forfeited if a tax credit recipient stops selling alternative fuel. Eligible fuels include those containing at least 70% of the following alternative fuels: ethanol, compressed natural gas, liquefied natural gas, liquefied petroleum gas, any mixture of biodiesel and diesel fuel, and hydrogen. (Reference Missouri Revised Statutes 135.710)

State Laws and Regulations

Alternative Fuel Vehicle (AFV) Acquisition and Alternative Fuel Use Requirements

At least 50% of all new vehicles purchased by a state agency that operates a vehicle fleet consisting of 15 vehicles or more must be 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 Fuels Promotion

The Missouri Alternative Fuels Commission promotes the continued production and use of alternative and renewable 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; promote the development, sale, distribution, and consumption of alternative fuels; promote the development and use of alternative fuel vehicles and technology that will enhance the use of alternative and renewable transportation fuels; educate consumers about alternative fuels; and develop a long-range plan for the state to reduce consumption of petroleum fuels. (Reference Missouri Revised Statutes 414.420)

Alternative Fuel Vehicle (AFV) Emission Inspection Exemption

Vehicles that are powered exclusively by electric or hydrogen power, or by fuels other than gasoline, which are exempt from motor vehicle emissions inspection under federal regulation, are exempt from state emissions inspection requirements. (Reference Missouri Revised Statutes 643.315)

Alternative Fuel Tax

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):

It is unlawful for any person to operate a motor vehicle on state highways without a valid decal if such vehicle is required to have an alternative fuel decal. No person may fuel an alternative fuel vehicle with liquefied petroleum gas (LPG) 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)