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Mississippi Natural Gas Laws and Incentives


State Laws and Regulations

Fuel-Efficient and Alternative Fuel Vehicle Use

The Bureau of Fleet Management (Bureau) was established within the Mississippi Department of Finance and Administration to coordinate and promote efficiency and economy in the purchase, lease, rental, acquisition, use, maintenance, and disposal of vehicles by state agencies. The Bureau will encourage the use of fuel-efficient or hybrid electric vehicles appropriate for the state agency's intended purpose and, when feasible, the use of alternative fuels, including but not limited to, ethanol, biodiesel, natural gas, or electricity. 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 Senate Bill 3049, 2009 and Mississippi Code 25-1-77)

Installation of Alternative Fuel Components on Vehicles

All liquefied petroleum and natural gas carburetion systems must be installed by an authorized installer or automobile manufacturer, or be inspected by the State Liquefied Compressed Gas Board (Board) or Commissioner of Insurance when not installed by such qualified installer or manufacturer. All liquefied petroleum or natural gas carburetion systems installed on vehicles, including school buses, used in public transportation must be inspected by a field inspector. The Board may require inspection of any installations of liquefied petroleum gas or natural gas carburetion systems on any other vehicle types as deemed necessary. All installations must comply with the rules and regulations of the Board. Any installer of a liquefied petroleum or compressed natural gas 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

A fuel tax is levied on distributors of compressed natural gas and liquefied natural gas based per 100 cubic feet rather than on a gallon equivalent basis. An annual privilege tax is imposed on operators of motor vehicles using and/or capable of using compressed gas and is imposed according to the gross vehicle weight rating. (Reference Mississippi Code 27-59-11)

Natural Gas Deregulation

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

Utilities/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 as a vehicle fuel.