Missouri Incentives and Laws

Last Updated July 2006

State Incentives

Ethanol Production Incentive

The Missouri Ethanol Producer Incentive Fund provides a financial incentive to a qualified Missouri ethanol fuel producer of $0.20 per gallon for the first 12.5 million gallons and $0.05 for the second 12.5 million gallons produced, up to a total of 25 million gallons. This fund is administered by the Department of Agriculture and 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 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 80% feedstock requirement may be waived on a month-to-month basis if the facility provides verification that adequate in-state feedstock is not available. 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 60 months maximum per producer. This 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. (Reference Missouri Revised Statutes 142.031 and House Bill 1270, 2006)

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% biodiesel (B20) or higher for use as bus fuel. Every school district that contracts with an eligible new generation cooperative for biodiesel will receive an additional payment through its state transportation aid payment, to offset the incremental cost of purchasing the biodiesel. (Reference Missouri Revised Statutes 414.433)

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

Low-Speed Vehicle Access to Roadways

A low-speed vehicle is defined as a four-wheeled vehicle with a maximum speed between 20 and 25 miles per hour (mph), which is manufactured in compliance with National Highway Traffic Safety Administration standards. A low-speed vehicle may be operated on a street or highway with a posted speed limit under 35 mph and is exempt from inspection and emission testing as long as it complies with federal standards. (Reference Missouri Revised Statutes 304.029)

Biodiesel Use Requirement

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

Ethanol Fuel Blend Requirement

The Missouri Renewable Fuel Standard requires that, after January 1, 2008, all gasoline sold or offered for sale in the state at retail stations 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 exempted from this standard. Ethanol fuel is defined as meeting ASTM International Specification D 4806. (Reference Missouri Revised Statutes 414.255 and House Bill 1270, 2006)

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 motor vehicles, certain buses or commercial motor vehicles that are powered by an alternative fuel. Instead, 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 required to have an alternative fuel decal upon the highways of this state without a valid decal. No person may fuel alternative fuel vehicles with liquefied petroleum gas (LPG) or natural gas unless the vehicle has a valid decal. (Reference Missouri Revised Statutes 142.803 and 142.869)

Alternative Fuels Commission

The Missouri Ethanol and Other Renewable Fuel Sources Commission promotes the continued production and use of ethanol, ethanol blends and other renewable fuel sources in Missouri. The commission reports to the general assembly its recommendations for legislation in the field of the promotion of the ethanol industry and related subjects in this state. (Reference Missouri Revised Statutes 414.420)

State Energy Task Force

The Missouri Energy Task Force is a nine member group charged with producing a report for the Governor by August 31, 2006, providing recommendations for promoting the development of alternative fuel sources in ways that strengthen the farm economy of rural Missouri and lessening Missouri’s dependence on oil and other fossil fuels. (Reference Executive Order 05-46, 2005)

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

Any state agency operating a fleet of more than 15 motor vehicles must ensure that 50% of new vehicles acquired by the fleet between July 1, 1998, and July 1, 2000, and each biennial period thereafter are capable of running on alternative fuels. 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, an exemption or goal reduction has been granted. In addition, 30% of the fuel purchased annually for use in state fleet vehicles must be alternative fuels. (Reference Missouri Revised Statutes 414.400 and 414.410)

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 Department of Agriculture. All retailers involved in the bulk sale of LPG must maintain storage tanks with a combined capacity of at least 18,000 gallons within the state. (Reference Missouri Revised Statutes 323.060)

Idle Reduction Requirement

In order to restrict the emission of visible air contaminants within the City of St. Louis, motor vehicles, except for emergency vehicles, are not permitted to idle for more than 10 consecutive minutes. (Reference St. Louis City Ordinance 65645)

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 refueling stations in Missouri and also provides consulting engineering services nationwide.

Point of Contact

Bob Noelker
Project Engineering Manager
Laclede Gas Company
Phone (314) 658-5594
bnoelker@lacledegas.com
 

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 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
 

Missouri Points of Contact: