Mississippi Laws and Incentives

Listed below are the summaries of all current Mississippi laws, incentives, 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 (8)

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

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

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 State Bureau of Fleet Management (Bureau), operated through the Mississippi Department of Finance and Administration, 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 as appropriate 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 installer of a propane or compressed natural gas (CNG) carburetion system who collects an installation service fee must hold an installer's license from the State Liquefied Compressed Gas Board (Board) and must notify the Board of any applicable installation. When a propane or CNG carburetion system is not installed by a qualified installer or manufacturer, the Board or the Mississippi Insurance Department must inspect the system. Regardless of installer, 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, and all installations must comply with its rules and regulations. (Reference Mississippi Code 75-57-47)

Natural Gas Tax

Operators of motor vehicles capable of using compressed or liquefied natural gas must pay an annual flat rate privilege tax if the vehicle has a gross vehicle weight rating (GVWR) of 10,000 pounds (lbs.) or less. Natural gas-capable vehicles with a GVWR greater than 10,000 lbs. are subject to privilege taxes charged per hundred cubic feet of natural gas. Vehicles with a GVWR between 10,000 lbs. and 20,000 lbs. must prepay a portion of this tax annually. The Mississippi Department of Revenue may require the operator of five or more vehicles capable of natural gas to pay the tax on all fuel purchased for any purpose; in this case, the fuel distributor will collect the excise tax at the time of sale or delivery. (Reference Mississippi Code 27-59-11)

Natural Gas Vehicle (NGV) Decals

Any person operating a vehicle that is capable of using compressed or liquefied natural gas must obtain and display a user's decal from the Mississippi Department of Revenue. Vehicle owners must apply for a decal within 15 days of purchasing an NGV or converting a vehicle to operate on natural gas, and the decals are issued on an annual basis. Owners may not obtain a privilege license tag from their county tax collectors unless they have filed an application for the natural gas user's decal or their NGV bears a current decal. (Reference Mississippi Code 27-59-29)

Compressed Natural Gas (CNG) and Propane Deregulation

The transmission, sale, or distribution of CNG and distribution or sale of propane 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

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

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

(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)