Alternative Fuels -- State Regulations for Kansas

This page contains selected data from the Alternative Fuels Data Center (AFDC) at the U. S. Department of Energy. Additional details and the latest updates may be found at the AFDC summary page for Kansas.

Vehicle Acquisition

State agency vehicles

At least 75% of new light-duty motor vehicles the state fleet acquires for use primarily within a metropolitan statistical area or a consolidated metropolitan statistical area must be AFVs. State agencies must purchase flexible fuel vehicles (FFVs) capable of operating on E85 fuel unless the desired vehicle model is not available with an E85-capable engine or the cost of the vehicle is at least $250 more than a comparable vehicle that does not use E85. When leasing motor vehicles, state agencies must lease FFVs unless no such vehicles are available for lease. Certain restrictions apply. (Reference Kansas Statutes 75-75-4616 and 75-4617)

Fuel Use

State agency vehicles

State-owned diesel-powered vehicles and equipment must use a biodiesel blend that contains at least 2% biodiesel (B2), where available, as long as the price of the biodiesel blend is not more than $0.10 per gallon as compared to the price of diesel fuel. Individuals operating state-owned motor vehicles must purchase fuel blends containing at least 10% ethanol (E10), as long as these fuel blends are not more than $0.10 per gallon as compared to the price per gallon of regular gasoline fuel. (Reference Kansas Statutes 75-3744a)

General

Definition (biodiesel)

Biodiesel is defined as a renewable, biodegradable, mono alkyl ester combustible liquid fuel that is derived from vegetable oils or animal fats and meets the specifications adopted by rules and regulations of the Kansas Department of Agriculture pursuant to current law. The Kansas specification must meet the ASTM D6751-07 specification for biodiesel fuel (B100) blend stock for distillate fuels, but may be more stringent regarding biodiesel quality and usability. (Reference Kansas Statutes 79-34,155 and 79-34,170)

Definition (renewable fuel)

Renewable fuels are defined as combustible liquids derived from grain starch, oil seed, animal fats, or other biomass; or produced from a biogas source, including any non-fossilized, decaying, organic matter capable of powering spark ignition machinery. (Reference Kansas Statutes 79-34,155 and 79-34,170)

Tax (ethanol used as vehicle fuel)

The minimum motor vehicle fuel tax rate on E85 is $0.17 per gallon, compared to the conventional motor fuel tax rate of $0.24 per gallon. E85 is defined as an alternative fuel that is a blend of denatured ethanol and hydrocarbon and typically contains 85% ethanol by volume, but must contain at least 70% ethanol by volume and complies with ASTM specification D5798-99. (Reference Kansas Statutes 79-3401; 79-3490; and 79-34,141)

Tax (natural gas used as vehicle fuel)

Any individual using or selling compressed natural gas (CNG), liquefied natural gas (LNG), or liquefied petroleum gas (propane) as a motor fuel must report fuel use and remit taxes due to the Kansas Department of Revenue on a monthly basis. The minimum tax imposed on CNG, LNG, and propane is $0.23 per gallon, compared to the conventional motor fuel tax rate of $0.24 per gallon. Alternatively, CNG, LNG, and propane vehicle users may apply for special permit decals to pay motor fuel taxes on a mileage basis. (Reference Kansas Statutes 79-34,141; 79-3490; and 79-3491a through 79-3492e)

Tax Credit (alternative fuel vehicles)

An income tax credit is available for 40% of the incremental or conversion cost for qualified AFVs, based on gross vehicle weight rating (GVWR). Qualified AFVs include vehicles that operate on a combustible liquid derived from grain starch, oil seed, animal fat, or other biomass, or produced from a biogas source. Alternatively, a tax credit of 5% of the cost of the AFV, up to $750, is available for the purchase of an original equipment manufacturer AFV. This credit is allowed only to the first individual to take title of the vehicle. For motor vehicles capable of operating on E85, the individual claiming the credit must provide evidence of purchasing at least 500 gallons of E85 between the time the vehicle was purchased and December 31, of the following calendar year. Excess credits may be carried over for up to three years after the year in which the expenditures were made. Beginning in 2013, the credit is only available to entities with corporate income tax liability. (Reference House Bill 2117, 2012, and Kansas Statutes 79-32,201)

Tax Credit (fueling infrastructure)

An income tax credit is available for 40% of the total cost to install alternative fueling infrastructure after January 1, 2009. Qualified property must be directly related to the delivery of alternative fuel into the fuel tank of a motor vehicle propelled by such fuel. The tax credit may not exceed $100,000 per fueling station. Alternative fuels are defined as combustible liquids derived from grain starch, oil seed, animal fat, or other biomass, or produced from a biogas source. Excess credits may be carried over for up to three years after the year in which the expenditures were made. Beginning in 2013, the credit is only available to entities with corporate income tax liability. (Reference House Bill 2117, 2012, and Kansas Statutes 79-32,201)

Tax Exemption (biofuel storage equipment)

Qualified equipment used for storing and blending petroleum-based fuel with biodiesel, ethanol, or other biofuel is exempt from state property taxes. The exemption begins at the time of installation at a fuel terminal, refinery, or biofuel production plant, and ends 10 taxable years following the year in which the equipment was installed. Equipment used only for denaturing ethyl alcohol is not eligible. (Reference Kansas Statutes 79-232 and 79-32,251)

Weight Limit Exemption (idle reduction)

Any vehicle or combination of vehicles equipped with 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 idle reduction technology. (Reference Kansas Statutes 8-1908, 8-1909, and 8-1917).