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NGV State Legislative Notes for the Week of February 9th

This week was a busy one for state legislatures as interest in legislation that promotes the use of alternative fuels continues to expand this year. We also continue to see a significant amount of activity concerning motor fuel taxes as many states are looking to increase revenues by increasing or changing taxes on transportation fuels. This week, Tennessee (H.B. 1167; S.B. 1172) joined Oklahoma (H.B. 1283) and Mississippi (S.B. 2355; H.B. 443) as states that have now introduced 2015 legislation that recognizes the diesel gallon equivalent (DGE) unit as the method of sale for retail natural gas. The Mississippi bills introduced earlier this year have now both passed their respective chambers. Diesel gallon equivalent legislation was enacted in 2014 in Alabama, California and Missouri. Measures in Utah (H.B. 49) and Mississippi (H.B. 452) that provide funding for natural gas school bus projects were passed by their respective House chambers in both states. Other noteworthy bills from the past week include: Arkansas S.B. 240 appropriates funding for various purposes including $1,000,000 for CNG stations, $1,050,000 for CNG and LNG fueling infrastructure, and $5,000,000 for stations and vehicles; Oregon H.B. 2942 provides a tax credit for anaerobic digester production of energy from food processing residues; Tennessee H.B. 879 and S.B. 799 amend the sale and use tax exemption for LNG so that it also extends to CNG; Texas H.B. 1361 amends the motor fuel tax exemptions to include an exemption for CNG or LNG sold to a municipality or Texas state government fleets (current exemption applies only to federal government, school districts, public transportation authorities, county governments, and fire departments); Utah H.B. 110 authorizes the DMV to reject registration for vehicles that are unable to meet emissions standards; Washington H.B. 2087 exempts portion of the cost of clean fuel vehicle from sales and use tax; West Virginia S.B. 461 exempts fuels, including alternative fuels, used in railroad locomotives from the excise tax.