Alternative Fuels -- State Regulations for Louisiana

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 Louisiana.

Vehicle Acquisition

State agency vehicles

The Louisiana Division of Administration must purchase alternative fuel vehicles (AFVs) capable of operating on alternative fuels that meet or exceed the federal Clean Air Act (CAA) standards, including hybrid electric vehicles (HEVs). Alternative fuels include compressed natural gas, liquefied petroleum gas (propane), reformulated gasoline, methanol, ethanol, advanced biofuels, electricity, and other fuels that meet or exceed the CAA standards. State agency vehicles may be granted a waiver.Political subdivisions may also purchase or lease AFVs, including HEVs and may acquire infrastructure to fuel AFVs. If the infrastructure is donated, loaned, or provided through an alternative fuel supplier, the supplier is entitled to recoup the cost of the equipment through fuel charges under the supply contract.(Reference House Bill 70, 2011, and Louisiana Revised Statutes 33:1418 and 39:364)

State agency vehicles (fuel efficiency)

Any alternative fuel vehicle (AFV) a state agency purchases or leases must have a minimum fuel economy of 18 miles per gallon (mpg) for city driving, 28 mpg for highway driving, or a combined city/highway driving of 24 mpg. Law enforcement vehicles, certified emergency vehicles, and state agency vehicles with prior written authorization are exempt from this requirement.The Louisiana Division of Administration (Division), in consultation with state agencies, must set and implement fuel economy goals for the state automobile fleet, including expanding the number of AFVs and hybrid electric vehicles in the state fleet. The Division must report to the legislature on the status of these goals and any resulting cost savings by March 1, 2011.(Reference House Concurrent Resolution 265, 2010, Executive Order (PDF) 8, 2008, and Louisiana Revised Statutes 39:1646)

Fuel Use

All vehicles (ethanol)

Within six months following the point at which cumulative monthly production of denatured ethanol produced in Louisiana equals or exceeds a minimum annual production volume of 50 million gallons, at least 2% of the total gasoline sold by volume in the state must be denatured ethanol. 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 ASTM specification D4806; 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 tax incentives or credits, 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.Within six months following the point at which cumulative monthly production of biodiesel produced in the state equals or exceeds a minimum annual production volume of 10 million gallons, at least 2% of the total diesel sold by volume in the state must be biodiesel produced from domestically grown feedstock. Biodiesel is a fuel comprised of mono-alkyl esters of long chain fatty acids derived from renewable resources and meeting the requirements of ASTM specification D6751, 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. Within six months following the point at which cumulative monthly production of an alternate renewable fuel produced in the state equals or exceeds a minimum annual production volume of 20 million gallons, at least 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 Department of Weights and Measures determines that the quality or supply of ethanol or biodiesel in the state is insufficient or fuel distributors are unable to blend ethanol due to delays in obtaining permits or constructing ethanol blending or storage equipment. 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 nonattainment areas. 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.The Louisiana Legislature encourages in-state restaurants to provide their waste fats, oils, and grease to biodiesel production facilities and store their waste fats, oils, and grease in a manner that facilitates the use of these products in a biodiesel production facility.(Reference Louisiana Revised Statutes 3:4674, 3:4674.1, and 3:3712)

General

Biofuels Feedstock Requirements

Renewable fuel production plants operating in Louisiana and deriving ethanol from the distillation of corn must use corn crops harvested in Louisiana to meet at least 20% of the facility's total feedstock requirement. Renewable fuel plants operating in Louisiana and deriving biodiesel from soybeans and other crops must use soybean crops harvested in Louisiana to meet at least 2.5% of the facility's total feedstock requirement. In succeeding years, the minimum percentage of Louisiana-harvested corn and soybeans used to produce renewable fuel in Louisiana facilities must be at least the same percentage of corn and soybeans used nationally to produce renewable fuel as reported by the U.S. Department of Agriculture's Office of the Chief Economist. To ensure that the appropriate amounts of Louisiana-harvested feedstocks are available for renewable fuel production, renewable fuel manufacturing facilities are responsible for communicating their anticipated production levels and specific feedstock requirements to the Department of Agriculture and Forestry 180 days before the start of commercial operation and on an annual basis thereafter. (Reference Louisiana Revised Statutes 3:3712)

Tax (natural gas used as vehicle fuel)

All licensed on-road vehicles fueled by compressed natural gas or liquefied petroleum gas (propane) are subject to a special fuels tax through the Excise Taxes Division of the Louisiana Department of Revenue. Vehicle owners or operators may pay either an annual flat rate in the amount of $120 per vehicle with a gross vehicle weight rating (GVWR) of less than 10,000 pounds (lbs.) or a variable rate of 80% of the current special fuels tax rate. The owners or operators of a vehicle with a GVWR of more than 10,000 lbs. must pay 80% of the special fuels tax rate in effect, but not less than $120 per vehicle. The owner of any school bus may either pay an annual flat rate of 50% of the regular flat rate or 50% of the variable rate for on-road vehicles with a GVWR of less than 10,000 lbs, whichever is less. The flat rates are based on a special fuels tax rate of $0.16 per gallon and specified miles per gallon values for each vehicle type, and are subject to change. (Reference Louisiana Revised Statutes 47:802.3)

Tax Credit (alternative fuel vehicles)

The state offers an income tax credit of 50% of the cost of converting a vehicle to operate on an alternative fuel, 50% of the incremental cost of purchasing an original equipment manufacturer AFV, and 50% of the cost of constructing an alternative fueling station. Only dedicated AFVs registered in Louisiana may receive the tax credit. Alternatively, a taxpayer may take a tax credit of 10% of the cost of the motor vehicle, up to $3,000. For the purpose of this incentive, alternative fuels include compressed natural gas, liquefied natural gas, liquefied petroleum gas (propane), biofuel, biodiesel, methanol, ethanol, electricity, and any other fuels that meet or exceed federal clean air standards. (Reference Louisiana Revised Statutes 47:6035)

Tax Credit (vehicles and biofuels)

The state offers a corporate or income tax credit for qualified capital infrastructure projects in Louisiana that are directly related to industries including but not limited to the energy efficient and advanced drivetrain vehicle industry and the biofuels industry. The tax credit is for 10% to 25% of the project costs, calculated based on the investment costs, up to $1 million per state-certified green project. The portion of the base investment expended on payroll for Louisiana residents employed in connection with the construction of the project may be eligible for an additional 10% tax credit on the payroll. Restrictions may apply. (Reference Louisiana Revised Statutes 47:6037)