Louisiana Incentives and Laws
Last Updated September 2009
Louisiana is the home of the Greater Baton Rouge Clean Cities Coalition (www.gbrccc.org) and the Southeast Louisiana Clean Fuel Partnership (www.cleanfuelpartnership.org). Coordinator contact information is listed in the Points of Contact section.
State Incentives
Alternative Fuel Vehicle (AFV) and Fueling Infrastructure Tax Credit
The state offers an income tax credit worth 50% of the cost of converting a vehicle to operate on an alternative fuel, 50% of the incremental cost of purchasing an original equipment manufactured AFV, and 50% of the cost of constructing an alternative fueling station. Only vehicles registered in Louisiana may receive the tax credit. A taxpayer may instead take a tax credit worth 10% of the cost of the motor vehicle or up to $3,000, whichever is less. For the purpose of this incentive, alternative fuels include compressed natural gas, liquefied natural gas, liquefied petroleum gas, biofuel, biodiesel, methanol, ethanol, electricity, and any other fuels that meet or exceed federal clean air standards. (Reference House Bill 110, 2009, and Louisiana Revised Statutes 47:6035)
Green Jobs Tax Credit
The state offers a corporate or income tax credit for qualified capital infrastructure projects in Louisiana that are directly related to industries including but not limited to the energy efficient and advanced drive train vehicle industry and the biofuels industry. The tax credit is worth up to $1 million per state-certified green project, calculated on the base investment costs of the project, for up to a total of $5 million per year. Other restrictions may apply. (Reference House Bill 733, 2009, and Louisiana Revised Statutes 47:6035)
Advanced Ethanol Fuel Blend Research Grants
Demonstration grants may be awarded by the Louisiana Commissioner of Agriculture and Forestry for the purchase of fueling pumps that are able to dispense advanced biofuel blends (E10, E20, E30, and E85), and for conducting research and developing guidelines on these fueling pumps. The Commissioner may also award grants for the purchase of vehicles for the purpose of conducting research on the advanced biofuel blends and/or the vehicle while operating on advanced biofuel blends. Advanced biofuel is defined as hydrous or anhydrous ethanol derived from sugar or starch, other than corn starch. Grants are dependent on available funding and further restrictions may apply. (Reference Louisiana Revised Statutes 3:3763)
Advanced Ethanol Fuel Blend Rate Reduction
State government agencies and educational institutions that perform essential governmental functions on a statewide or local basis are entitled to purchase advanced biofuel blends of E20, E30, or E85 directly from a qualified small advanced biofuel manufacturer facility at a discounted price of 15% less than the per gallon price of unleaded gasoline. (Reference Louisiana Revised Statutes 39:364)
Biodiesel Equipment and Fuel Tax Exemption
Certain property and equipment used to manufacture, produce, or extract unblended biodiesel, as well as unblended biodiesel used as fuel by a registered manufacturer, are exempt from state sales and use taxes. Unblended biodiesel is defined as B100 fuel that meets ASTM specification D6751. These provisions are effective through June 30, 2012. (Reference Louisiana Revised Statutes 47:301)
State Laws and Regulations
Advanced Ethanol Industry Initiative
In order to develop an advanced biofuels industry in Louisiana, the following "field-to-pump" requirements must be met:
- Development of an ethanol feedstock other than corn that is;
- Derived solely from Louisiana harvested crops.
- Capable of an annual yield of at least 600 gallons of ethanol per acre.
- Requiring no more than 50% of the water required to grow corn.
- Tolerant to high temperatures and waterlogging.
- Resistant to drought and saline-alkaline soils.
- Capable of being grown in marginal soils, ranging from heavy clay to light sand.
- Requiring no more than one-third of the nitrogen required to grow corn.
- Requiring no more than one-half of the energy necessary to convert corn into ethanol.
- Development of a small advanced biofuel manufacturing facility network, which reduces the feedstock supply risk, does not burden local water supplies, and provides for a more broad-based economic development.
- Expansion of advanced biofuel supply and demand beyond the 10% blend market by blending fuel grade anhydrous ethanol with gasoline at the gas station pump. Variable blending pumps, directly installed and operated at the local gas stations by a qualified small advanced biofuel manufacturing facility, must offer the consumer a less expensive substitute for unleaded gasoline in the form of E10, E20, E30, and E85.
Advanced Ethanol Blend Pilot Program
The Louisiana Department of Agriculture and Forestry (DAF) will begin monitoring the blending of fuels containing higher amounts of advanced biofuel, ranging from 10% to 85%, on a trial basis until January 1, 2012. The DAF will also be responsible for monitoring the equipment used for dispensing the fuel. Advanced biofuel is defined as hydrous or anhydrous ethanol derived from sugar or starch, other than corn starch. In addition, hydrous ethanol blends of E10, E20, E30, and E85 will also be tested on a trial basis. (Reference Louisiana Revised Statutes 3:3761-3:3762)
Alternative Fuel Vehicle (AFV) Tax
All licensed on-road vehicles fueled by compressed natural gas or liquefied petroleum gas are subject to a special fuels tax through the Excise Taxes Division of the Louisiana Department of Revenue. Vehicle owners or operators may either pay an annual flat rate in the amount of 80% of $150 per vehicle with a gross vehicle weight rating (GVWR) of less than 10,000 pounds (lbs.), based on a $0.16 per gallon special fuels tax rate, or a variable rate of 80% of the current special fuels tax rate. The owners or operators of a vehicle with a GVWR of more than 10,000 lbs. are required to pay 80% of the special fuels tax rate in effect, but not less than 80% of $150 per vehicle, based on a $0.16 per gallon special fuels tax rate multiplied by a specified miles per gallon value for each vehicle type. The owner of any school bus may either pay an annual flat rate in the amount of 50% of $150 per vehicle or a variable rate of 50% of the current special fuels tax rate. (Reference Louisiana Revised Statutes 47:802.3)
Point of Contact
Taxpayer Services Division
Louisiana Department of Revenue
Phone (225) 219-0067
Alternative Fuel and Advanced Vehicle Acquisition Requirements
The Commissioner of Administration is required to purchase alternative fuel vehicles capable of operating on alternative fuels that meet or exceed the federal Clean Air Act (CAA) standards, including but not limited to hybrid electric vehicles. Alternative fuels include compressed natural gas, liquefied petroleum gas, reformulated gasoline, methanol, ethanol, electricity, and other fuels that meet or exceed the CAA standards. State agency vehicles may be granted a waiver and additional exemptions may apply. (Reference Louisiana Revised Statutes 39:364)
Renewable Fuel Standard
Within six months following the point at which cumulative monthly production of denatured ethanol produced in Louisiana equals or exceeds a minimum annual production volume of 50 million gallons, 2% of the total gasoline sold by volume in the state must be denatured ethanol. Ethanol is defined an ethyl alcohol that has a purity of at least 99%, exclusive of added denaturants, meets U.S. Bureau of Alcohol, Tobacco, Firearms, and Explosives and ASTM specification D4806, and is produced from domestic agricultural or biomass products. This requirement will not be effective until six months after the average wholesale price of a gallon of Louisiana-manufactured ethanol, less any federal tax incentives or credits, is equal to or below the average wholesale price of a gallon of regular unleaded gasoline in Louisiana for a period of not less than 60 days, as determined by the Louisiana Biofuel Panel. The Legislature urges the Louisiana Department of Agriculture and Forestry not to implement the minimum ethanol requirements if the requirements raise the price of gasoline by more than $0.02 per gallon.
Within six months following the point at which cumulative monthly production of biodiesel produced in the state equals or exceeds a minimum annual production volume of 10 million gallons, 2% of the total diesel sold by volume in the state must be biodiesel. Biodiesel is defined as a fuel comprised of mono-alkyl esters of long chain fatty acids derived from domestic, renewable resources and meeting the requirements of ASTM specification D6751, or a diesel fuel substitute produced from non-petroleum renewable resources such as vegetable oils and animal fats that meet U.S. Environmental Protection Agency fuel and fuel additive requirements.
Alternatively, these requirements may be met through the production of an alternate renewable fuel, defined as a liquid fuel that is domestically produced from renewable biomass, can be used in place of ethanol or biodiesel, and meets the definition of renewable fuel in the Energy Policy Act of 2005. Within six months following the point at which cumulative monthly production of an alternate renewable fuel produced in the state equals or exceeds a minimum annual production volume of 20 million gallons, 2% of the total motor fuel sold by volume in the state must be the alternate renewable fuel produced from domestically grown feedstock. This requirement may not exceed 2% of the total motor fuel sold by volume by owners or operators of fuel distribution terminals.
Blenders and retailers will have six months to meet the new minimum ethanol, biodiesel, or alternate renewable fuel content requirements, unless the Department of Weights and Measures determines there is an insufficient supply of ethanol or biodiesel in the state. Any combination of alternative fuels, including but not limited to denatured ethanol, biodiesel, and alternative renewable fuel may be used to meet these requirements. Fuels containing ethanol or biodiesel will not be required to be sold in ozone non-attainment areas. The Department of Agriculture and Forestry will adopt rules and regulations requiring incentives to compensate for any costs associated with achieving the minimum ethanol and biodiesel standards.
To further encourage the production of biodiesel from renewable resources, Louisiana restaurants are encouraged to provide their waste fats, oils, and grease to biodiesel production facilities and store their waste fats, oils, and grease in a manner that facilitates the use of these products in a biodiesel production facility.
(Reference House Bill 624, 2009, and Louisiana Revised Statutes 3:4674, 3:4674.1, and 3:3712)
Biofuels Feedstock Requirements
Renewable fuel production plants operating in Louisiana and deriving ethanol from the distillation of corn must use corn crops harvested in Louisiana to meet at least 20% of the facility's total feedstock requirement. Renewable fuel plants operating in Louisiana and deriving biodiesel from soybeans and other crops must use soybean crops harvested in Louisiana to meet at least 2.5% of the facility's total feedstock requirement. In succeeding years, the minimum percentage of Louisiana-harvested corn and soybeans used to produce renewable fuel in Louisiana facilities must be at least the same percentage of corn and soybeans used nationally to produce renewable fuel as reported by the U.S. Department of Agriculture's Office of the Chief Economist. (Reference Louisiana Revised Statutes 3:3712)
Fuel Efficient Vehicle Acquisition Requirement
Any alternative fuel vehicle purchased or leased by a state agency must have a minimum fuel economy of 18 miles per gallon (mpg) for city driving, 28 mpg for highway driving, or a combined city/highway driving of 24 mpg. Law enforcement vehicles, certified emergency vehicles, and state agency vehicles (with prior written authorization) are exempt from this requirement. (Reference Louisiana Revised Statutes 39:1646)
Low-Speed Vehicle Access to Roadways
Low-speed vehicles may only be used on roads that have a posted speed limit of 35 miles per hour (mph) or less, but may, at an intersection, cross a highway with a posted speed limit greater than 35 mph. The low-speed vehicle must be equipped with safety equipment as specified in Title 49 of the Code of Federal Regulations, section 571.500, and must be registered with the state's Office of Motor Vehicles. (Reference Louisiana Revised Statutes 32:300.1)
Compressed Natural Gas (CNG) and Liquefied Petroleum Gas (LPG) Regulatory Authority
The Louisiana Department of Natural Resources' Office of Conservation has regulatory authority over CNG safety, including fueling stations and the installation of conversion equipment in a vehicle. Vehicles equipped for, and capable of operating on, LPG must have passed a safety inspection from the Louisiana Liquefied Petroleum Gas Commission. (Reference Louisiana Revised Statutes 30:732)
Deregulation of Compressed Natural Gas (CNG) as a Motor Fuel
The sale of CNG by producers, pipelines, distribution companies, or other persons when used as a transportation fuel is not regulated by the Public Service Commission. (Reference Louisiana Revised Statutes 45:1163)
Utilities/Private Incentives
There are currently no known utility or private incentives offered in Louisiana.
Points of Contact:
| NAME/EMAIL/TITLE | AGENCY | PHONE/FAX |
|---|---|---|
| Lauren Stuart Clean Cities Coordinator | Greater Baton Rouge Clean Cities Coalition | Phone:(225) 578-9253 Fax: | Rebecca Otte Clean Cities Coordinator | Southeast Louisiana Clean Fuel Partnership | Phone:(504) 483-8513 Fax:(504) 483-8526 | Wes Wyche Environmental Affairs Manager/Clean Cities Coordinator | City of Shreveport/Greater Shreveport Clean Cities Coalition (Not Yet Designated) | Phone:(318) 673-6072 Fax:(318) 673-7663 | Neil Kirschner Project Manager | U.S. Department of Energy, National Energy Technology Laboratory | Phone:(412) 386-5793 Fax: | J. Bryan Crouch Engineer, Alternative Fuels and Refinery | Louisiana Department of Natural Resources, Technology Assessment Division | Phone:(225) 342-2122 Fax:(225) 242-3605 | Taxpayer Services Division | Louisiana Department of Revenue | Phone:(225) 219-0067 Fax: | Walter C. Miller Energy Services Consultant | Atmos Energy | Phone:(817) 303-2903 Fax:(817) 303-2929 | Anna Friend Transportation Operations Specialist | U.S. General Services Administration | Phone:(303) 236-7221 Fax:(303) 236-7590 | Sandra Rennie Mobile Source Team Leader, Region 6 | U.S. Environmental Protection Agency | Phone:(214) 665-7367 Fax:(214) 665-7263 |
