South Dakota Policy Data

Summary

	South Dakota is still in early stages of AFV adoption. The states main focus has been on ethanol and biodiesel, with no natural gas stations in the state, and few listed vehicles as of 2016. The state has passed a tax law encompassing taxes on CNG and in 2014, LNG. The 2012 legislative session brought about a law that creates technology parks for the research and development of alternative fuel technology.

Vehicles

Current Estimated Fleet-based NGVs in South Dakota

~2

Vehicles by Fuel Type

Stations

Current Public NGV Fueling Stations - 0

Private NGV Fueling Stations - 1

Fuel Taxes

South Dakota Motor Fuel Taxation Website

CNG - 28.0 ¢ / 126.67 CF = gallon - Reference

LNG - 28.0 ¢ / 1.5536 Gallon

Gasoline - 28.0 ¢ / Gallon

Diesel - 28.0 ¢ / Gallon

NOTE: New SB93 signed into law changes GGE definition for CNG and clarifies tax on LNG. As of this writing, the law will likely be implemented on July 1. The state Constitution provides that no law can take effect sooner than 90 days following the legislative session. In addition, existing state law sets the effective date of bills passed during the regular session at July 1, unless the new law itself lists a later effective date. The exception to this is a law that contains an emergency clause.

**New Tax of 28.0 ¢ effective July 1, 2015 per SB-1 signed by Governor on 3/17/2015

IFTA - IFTA taxes are applied to vehicles of 3+ axles, or weighing more than 26,000 pounds. IFTA tax tables can be found here.

Incentives

South Dakota currently has no NGV incentives in place.

Laws & Regs

Legislative Session Dates:	January 14 - March 31
Legislature Website:	http://legis.sd.gov/

Compressed Natural Gas (CNG) Tax

CNG is taxed at a rate of $0.10 per gallon when used as a motor fuel. CNG is defined as natural gas that has been compressed for use as a motor vehicle fuel and that, for the purposes of taxation as a motor vehicle fuel, is converted to liquid gasoline gallon equivalent at the rate of 120 cubic feet of its natural service delivery line pressure in order to equal one volumetric gross gallon of gasoline. (Reference South Dakota Statutes 10-47B-3 and 10-47B-4)

Liquified Natural Gas (LNG) Tax

LNG is taxed at a rate of $0.14 per gallon when used as a motor fuel. For taxation purposes, LNG is converted to its gasoline gallon equivalent (GGE) at the rate of 1.5536 gallons of LNG to equal one volumetric gross gallon of gasoline. LNG is defined as natural gas for use as a motor fuel, which has been cooled to approximately -260 degrees Fahrenheit and is in a liquid state. (Reference Reference - SB-93 Bill History, Reference - SB-93 Bill Text, and South Dakota Statutes 10-47B-3 and 10-47B-4)

Proposed Bills

2015 Session - Proposed Legislation

HB-1131

Increases excise taxes on motor fuels and registration fees for vehicles. Does not appear to increase tax on natural gas. Excise tax on other fuels to increase by 2 cent per year into future. Reference - HB1131 Bill History, Reference - HB1131 Bill Text Status: 25% progression, died in chamber

SB-1

Increases tax on various motor fuels and also imposes somewhat higher fees on vehicles of all sizes. Natural gas tax was addressed last year and is not affected by the increase in the bill. Rates for gasoline and diesel would go from 22 cents to 28.16 cents by 2025. Engrossed bill includes different tax rates: 24 cents 7/1/15 - 6/30/16; 26 cents 7/1/16 - 6/30/17; and 2 cent increase per year thereafter beginning July 1. 3/13/15 - Conference Agreement imposes new tax of 28 cents. Reference - SB1 Bill History, Reference - SB1 Bill Text Signed by Governor 3/17/2015

SB-148

Increases tax on gasoline and diesel fuel by 6 cents (from 22 - 28 cents). Leaves current CNG and LNG taxes unchanged. Reference - SB148 Bill History, Reference - SB148 Bill Text Status: 25% progression, died in chamber

2014 Session - Proposed Legislation

SB-93

Amends motor fuel tax so that LNG is subject o tax on each 1.5536 gallons based on equivalent liquid gallons of gasoline. Uses 126.67 cubic feet as the basis for tax rate of CNG; statute previously used 127 cubic feet. Clarifies that LNG is not subject to the special fuel tax. CNG tax is $0.10 per gallon and LNG tax is $0.14 per gallon. For comparison, motor fuel (gasoline) and special fuel (diesel) are taxed at $0.22 per gallon.Reference - SB-93 Bill History, Reference - SB-93 Bill Text Signed by the Governor 2014-03-10

2013 Session - Proposed Legislation

SB-58

Amends motor fuel reporting requirements for LPG and CNG to require electronic reporting. Signed into law February 12, 2013. Reference - SB-58 Bill History, Reference - SB-58 Bill Text Signed by the Governor 2/8/2013

SB-219

Amends and increases the motor fuel excise tax rates on CNG, LNG, and LPG. The rates on CNG and LPG increase by 1 cent from 10 cents to 11 cents for CNG and 20 cents to 21 cents for LPG per gallon; and the tax on LNG, which is currently 0, is increased to 1 cent per gallon. S.D. Codified Laws § 10-47B-3 currently clarifies that one gallon CNG is 120 cubic feet; this is not changed by this bill. Reference - SB-219 Bill History, Reference - SB-219 Bill Text Introduced on January 28 2013 - 25% progress, died in chamber

This state was last examined and updated in December, 2016.

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