Louisiana Incentives and Laws

Last Updated September 2007

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 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)

Point of Contact

Sandra Leduff
Taxpayer Services Division
Louisiana Department of Revenue
Phone (225) 219-0067

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 which meets the American Society of Testing and Materials (ASTM) standard D6751. These provisions are effective through June 30, 2012. (Reference Louisiana Revised Statutes 47:301)

State Laws and Regulations

Alternative Fuel Vehicle (AFV) Tax

All licensed on-road vehicles fueled by compressed natural gas, liquefied 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 of $150 per vehicle with a gross vehicle weight rating of less than 10,000 pounds, or a variable rate based on the current special fuels tax rate. (Reference Louisiana Revised Statutes 47:802.3)

Point of Contact

Sandra Leduff
Taxpayer Services Division
Louisiana Department of Revenue
Phone (225) 219-0067

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)

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 or less, 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)

Low-Speed Vehicle Support

The Legislature of Louisiana supports the commercial introduction of low-speed vehicles into the state as an energy efficient and economically beneficial form of transportation. The Legislature has urged the Louisiana Office of Motor Vehicles to use the maximum authorized inspection period for low-speed vehicles and that all parishes and municipalities involved in the inspection of motor vehicles exempt low-speed vehicles from such inspection. (Reference Senate Concurrent Resolution 112, 2005)

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 refueling stations and the installation of conversion equipment in a vehicle. The Louisiana Liquefied Petroleum Gas Commission must make safety inspections of vehicles equipped for and capable of operating on LPG. (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 it is used as a transportation fuel is not regulated by the Public Service Commission. (Reference Louisiana Revised Statutes 45:1163)

Utilities/Private Incentives

Natural Gas Infrastructure Technical Assistance

Entergy offers preliminary feasibility studies for CNG refueling stations and vendor selection on a case-by-case basis.

Point of Contact

Robert Borne
Business Development
Entergy Corporation
Phone (225) 763-5117
Fax (225) 763-5168
rborne@entergy.com
http://www.entergy.com

Points of Contact:

NAME/EMAIL	AGENCY	TITLE	PHONE/FAX
Tammy Morgan tlmorgan@brgov.com	Greater Baton Rouge Clean Cities Coalition	Clean Cities Coordinator	Phone: (225) 389-5491 Fax: (225) 389-4804
Rebecca Otte rotte@norpc.org	Southeast Louisiana Clean Fuel Partnership	Clean Cities Coordinator	Phone: (504) 568-6622 Fax: (504) 568-6643
Wes Wyche wes.wyche@ci.shreveport.la.us	City of Shreveport/Greater Shreveport Clean Cities Coalition (Not Yet Designated)	Department of Operational Services/Clean Cities Coordinator	Phone: (318) 673-6072 Fax: (318) 673-7663
Neil Kirschner neil.kirschner@netl.doe.gov	U.S. Department of Energy, National Energy Technology Laboratory	Project Manager	Phone: (412) 386-5793 Fax: (412) 386-4561
J. Bryan Crouch john.crouch@la.gov	Louisiana Department of Natural Resources, Technology Assessment Division	Engineer, Alternative Fuels and Refinery	Phone: (225) 342-2122 Fax: (225) 242-3605
Sandra Leduff	Louisiana Department of Revenue	Taxpayer Services Division	Phone: (225) 219-0067 Fax:
Robert Borne rborne@entergy.com	Entergy Corporation	Business Development	Phone: (225) 763-5117 Fax: (225) 763-5168
Walter C. Miller walter.c.miller@atmosenergy.com	Atmos Energy	Energy Services Consultant	Phone: (817) 303-2903 Fax: (817) 303-2929
Gordon Lancaster gordon.lancaster@gsa.gov	U.S. General Services Administration	Transportation Operations Specialist	Phone: (303) 236-7599 Fax: (303) 236-7590
Sandra Rennie rennie.sandra@epa.gov	U.S. Environmental Protection Agency	Mobile Source Team Leader, Region 6	Phone: (214) 665-7367 Fax: (214) 665-7263