Louisiana E85 Laws and Incentives
State Incentives
Alternative Fuel Vehicle (AFV) and Fueling Infrastructure Tax Credit
The state offers an income tax credit worth 20% of the cost of converting a vehicle to operate on an alternative fuel, 20% of the incremental cost of purchasing an Original Equipment Manufacturer (OEM) AFV or hybrid electric vehicle (HEV), and 20% of the cost of constructing an alternative fuel fueling station. For the purchase of an OEM AFV or HEV, the tax credit cannot exceed 2% of the total cost of the vehicle or $1,500, whichever is less. Only vehicles registered in Louisiana can receive the tax credit. For the purpose of this incentive, alternative fuels include compressed natural gas, liquefied natural gas, liquefied petroleum gas, methanol, ethanol, electricity, and any other fuels which meet or exceed federal clean air standards. (Reference Louisiana Revised Statutes 47:38 and 47:287.757)
State Laws and Regulations
Alternative Fuel Promotion
The Legislature of Louisiana urges the state Department of Economic Development and the Department of Agriculture and Forestry to promote the use of alternative fuels and provide incentives for companies and consumers who use alternative fuels. (Reference Senate Concurrent Resolution 10, 2006)
Renewable Fuels Standard
Within six months following the point at which cumulative monthly production of denatured ethanol produced in the state equals or exceeds an annual production volume of at least 50 million gallons, 2% of the total gasoline sold by volume in the state must be denatured ethanol produced from domestically grown feedstock or other biomass materials. 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 American Society for Testing and Materials (ASTM) D-4806 standards, 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 alcohol fuel mixture tax credit, 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. Additionally, the Legislature urges the state 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 an annual production volume of 10 million gallons, 2% of the total diesel sold by volume in the state must be biodiesel produced from domestically grown feedstock. Biodiesel is defined as a fuel comprised of mono-alkyl esters of long chain fatty acids derived from renewable resources and meeting the requirements of ASTM D-6751, 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. However, these requirements may not exceed 2% of the total gasoline and 2% of the total diesel sold by volume by owners or operators of fuel distribution terminals.
Within six months following the point at which cumulative monthly production of an alternate renewable fuel capable of substituting for ethanol and biodiesel produced in the state equals or exceeds an 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 state 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 Commissioner of 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.
(Reference Louisiana Revised Statutes 3:4674 and 3:3712)
Biofuels Feedstock Requirements
Renewable fuel plants operating in Louisiana and deriving ethanol from the distillation of corn must use corn crops harvested in Louisiana for at least 20% of the facility's total feedstock. In succeeding years, the minimum percentage of Louisiana-harvested corn used to produce renewable fuel in Louisiana facilities must be at least the same percentage of corn used nationally to produce renewable fuel as reported by the U.S. Department of Agriculture's (USDA) Office of the Chief Economist.
Renewable fuel plants operating in Louisiana and deriving biodiesel from soybeans and other crops must use soybean crops harvested in Louisiana for at least 2.5% of the facility's total feedstock. In succeeding years, the minimum percentage of Louisiana-harvested soybeans used to produce renewable fuel in Louisiana facilities must be the percentage of soybeans used nationally to produce renewable fuel as reported by the USDA Office of the Chief Economist.
(Reference Louisiana Revised Statutes 3:3712)
