Missouri Incentives and Laws

Last Updated August 2009

Missouri is the home of the St. Louis Regional (www.stlcleancities.org) and the Kansas City Regional (www.kcenergy.org/transportation.html) Clean Cities Coalitions. Coordinator contact information is listed in the Points of Contact section.

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)

Point of Contact

Cindy Carroll
Energy Specialist
Missouri Department of Natural Resources, Missouri Energy Center
Phone (573) 751-3443
Fax (573) 751-6860
cindy.carroll@dnr.mo.gov

Ethanol Production Incentive

Qualified ethanol producers are eligible for incentives through the Missouri Ethanol Producer Incentive Fund (Fund). The Fund provides $0.20 per gallon for the first 12.5 million gallons and $0.05 for the second 12.5 million gallons of ethanol produced from Missouri agricultural products or qualified biomass each fiscal year. The Fund is administered by the Missouri Department of Agriculture and the incentive expires on December 31, 2015. (Reference Missouri Revised Statutes 142.028 and 142.029)

Point of Contact

Robin Perso
Director of Budget and Planning
Missouri Department of Agriculture
Phone (573) 526-4892
Fax (573) 751-5002
robin.perso@mda.mo.gov

Biodiesel Production Incentive

The Missouri Qualified Biodiesel Producer Incentive Fund (Fund) provides a monthly grant to qualified Missouri biodiesel producers, provided that 1) at least 51% of the production facility is owned by agricultural producers who are residents of the state and who are actively engaged in agricultural production for commercial purposes or 2) at least 80% of the feedstock used by the facility originates in-state. All of the feedstock must originate in the U.S. However, the feedstock requirement may be waived on a month-to-month basis if the facility provides verification that adequate feedstock is not available. In addition, producers must have registered with the Missouri Department of Agriculture by September 1, 2007, begun construction of the facility before November 1, 2007, and must have begun production before March 1, 2009. The value of the grant is $0.30 per gallon for the first 15 million gallons produced in a fiscal year and $0.10 per gallon for the next 15 million gallons produced in a fiscal year, up to a total of 30 million gallons and for a maximum of 60 months per producer.

The Fund is administered by the Missouri Department of Agriculture. Biodiesel is defined according to ASTM standard D-6751 or its subsequent standard specifications for biodiesel fuel (B100) blend stock for distillate fuels. This incentive expires December 31, 2009, but Missouri-based qualified biodiesel producers that receive grants prior to December 31, 2009, will continue to be eligible for up to total of 60 months. Additional conditions may apply.

(Reference Missouri Revised Statutes 142.031)

Point of Contact

Robin Perso
Director of Budget and Planning
Missouri Department of Agriculture
Phone (573) 526-4892
Fax (573) 751-5002
robin.perso@mda.mo.gov

Biodiesel Fuel Use Incentive

Through the 2011-12 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)

Fleet Biodiesel Fuel Use Incentive

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

State Laws and Regulations

Ethanol Blend Mandate

All gasoline sold or offered for sale at retail stations within the state must contain 10% ethanol. 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 fuel is defined as meeting ASTM specification D4806. (Reference Missouri Revised Statutes 414.255)

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 added idle reduction technology. (Reference Missouri Revised Statutes 304.180)

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)

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) and manufactured in compliance with National Highway Traffic Safety Administration standards. A low-speed vehicle may not be operated on a street or highway with a posted speed limit greater than 35 mph and is exempt from inspection and emission testing as long as it complies with the minimum safety equipment requirements as adopted in Title 49 of the Code of Federal Regulations, Section 571.500. (Reference Missouri Revised Statutes 304.029)

Biodiesel Use Requirement

The Missouri Department of Transportation (MoDOT) is required to develop a program that increases the use biodiesel blends in its vehicle fleet. At least 75% of the MoDOT vehicle fleet and heavy equipment that uses diesel fuel must be fueled with B20 or higher biodiesel blends, if such fuel is commercially available. The blended biodiesel fuel will be considered commercially available if the incremental cost of purchasing the fuel is not more than $0.25 as compared to conventional diesel fuel. To the maximum extent practicable, MoDOT must obtain funding for the incremental cost of the blended biodiesel fuel from the state's Biodiesel Fuel Revolving Fund. (Reference Missouri Revised Statutes 414.365)

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)

Liquefied Petroleum Gas (LPG) License

Persons involved in the retail sale, transport, or handling of LPG, or in the business of installing or modifying related equipment must first register with the Director of the Missouri Department of Agriculture. (Reference Missouri Revised Statutes 323.060)

Idle Reduction Requirement - City of St. Louis

Within the City of St. Louis, motor vehicles are not permitted to idle for more than five minutes in any 60-minute period while parking, standing or stopped. Exemptions are allowed for the following: emergency vehicles; vehicles transporting disabled or special needs persons; vehicles that provide power for auxiliary purposes; traffic and adverse weather conditions; repair and diagnostic purposes; and vehicles engaged in the delivery of goods. Violators are subject to fines. (Reference St. Louis City Ordinance 68137)

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.

Point of Contact

Tom Schultz
Natural Gas Vehicle Market Development Manager
Laclede Gas Company
Phone (314) 342-0684
Fax (314) 342-9577
tschultz@lacledegas.com

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.

Point of Contact

Walter C. Miller
Energy Services Consultant
Atmos Energy
Phone (817) 303-2903
Fax (817) 303-2929
walter.c.miller@atmosenergy.com

Points of Contact:

NAME/EMAIL/TITLE	AGENCY	PHONE/FAX
Kevin Herdler Clean Cities Coordinator	St. Louis Clean Cities Program	Phone:(314) 397-5308 Fax:
Kelly Gilbert Clean Cities Coordinator	Kansas City Regional Clean Cities Coalition	Phone:(816) 561-1625 Fax:(816) 531-4846
Brad Beauchamp Project Manager	U.S. Department of Energy, National Energy Technology Laboratory	Phone:(412) 386-7322 Fax:
Cindy Carroll Energy Specialist	Missouri Department of Natural Resources, Missouri Energy Center	Phone:(573) 751-3443 Fax:(573) 751-6860
Robin Perso Director of Budget and Planning	Missouri Department of Agriculture	Phone:(573) 526-4892 Fax:(573) 751-5002
Steve Nagle Director of Community Planning and Environmental Resources	East-West Gateway Council of Governments	Phone:(314) 421-4220 Fax:(314) 231-6120
Bradley Schad Associate Director of Ethanol Blends	Missouri Corn Growers Association	Phone:(573) 893-4181 Fax:(573) 893-4612
Tom Schultz Natural Gas Vehicle Market Development Manager	Laclede Gas Company	Phone:(314) 342-0684 Fax:(314) 342-9577
Walter C. Miller Energy Services Consultant	Atmos Energy	Phone:(817) 303-2903 Fax:(817) 303-2929
Robert Smith Fleet Acquisition Coordinator	U.S. General Services Administration	Phone:(314) 263-3024 Fax:(314) 263-3009
Lachala Kemp Environmental Engineer, Region 7	U.S. Environmental Protection Agency	Phone:(913) 551-7214 Fax:(913) 551-7844