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Texas Electric Laws and Incentives


State Incentives

Alternative Fuel Vehicle (AFV) Grants

The Adopt-A-School Bus Program, a cooperative partnership between the U.S. Environmental Protection Agency, state agencies, local elected officials, and corporate sponsors, was established as a nonprofit grant program to aid local school districts replacing their aging, diesel school bus fleets with new clean fuel buses. In an effort to ensure the longevity of the new buses, a portion of all grant money awarded is earmarked for fleet infrastructure and maintenance. For more information, please visit the Web sites for Dallas-Fort Worth and San Antonio/Alamo Area.

Clean Vehicle and Equipment Grants

The Texas Emissions Reduction Plan (TERP) provides grants for various types of clean air projects in 41 counties to improve air quality in the state's non-attainment areas. Grants are available for new, converted, or repowered on-road and off-road vehicles and equipment. For complete information on the types of projects and expenses that may be eligible for a grant, refer to TERP Guidelines for Emissions Reduction Incentive Grants. (Reference Texas Statutes, Health & Safety Code, Chapter 386)

Alternative Fuel Grants

The Texas Emissions Reduction Plan (TERP) provides grants for alternative fuel and advanced technology demonstration and infrastructure projects under the New Technology Research and Development (NTRD) Program, which provides incentives to encourage and support research, development, and commercialization of technologies that reduce pollution in Texas. For complete information on the types of projects and expenses that may be eligible for a grant, refer to the latest Request for Grant Applications and the NTRD Guidelines. The NTRD Program is administered by the Texas Environmental Research Consortium, with support from the Houston Advanced Research Center. (Reference Texas Statutes, Health & Safety Code, Chapter 386)

State Laws and Regulations

Alternative Fuel Program Support

The Texas Energy Planning Council, facilitated by the Railroad Commission of Texas, was created in November 2003 to advise the Governor on a balanced plan to provide the energy needed to fuel Texas' future economic growth and prosperity. The final report, Texas Energy Plan 2005: Energy Security for a Bright Tomorrow, was submitted to the Governor in January 2005. The report identifies gaps between the state's energy supply and energy demand and recommends a plan to close or minimize these gaps. The Council explored ways to diversify future energy supplies via liquefied natural gas, nuclear, and clean coal technology as well as through renewable energy sources such as wind power, biomass, and fuel cells. (Reference Executive Order RP 29, 2003)

Neighborhood Electric Vehicle (NEV) Access to Roadways

NEVs may only be used on roads that have a posted speed limit of 35 miles per hour or less. NEVs must comply with the safety standards in Title 49 of the Code of Federal Regulations, section 571.500. (Reference Texas Statutes, Transportation Code, Sections 551.301 to 551.303)

Alternative Fuel Vehicle (AFV) Program Support and Technician Training

The Texas State Energy Conservation Office's (SECO) Alternative Fuels Program initiatives include providing administrative support for the U.S. Department of Energy's Clean Cities program and U.S. Environmental Protection Agency's Clean School Bus Program, grant writing training for public and private entities, and funding for training and certification program development to educate mechanics on the technical aspects of alternative fuel vehicles. SECO promotes the reduction of petroleum use through four technology areas: fuel blends, fuel economy, hybrid electric vehicles, and idle reduction. (Reference Texas Statutes Section 2305.035)

Utilities/Private Incentives

Electric Vehicle (EV) Rebates

Central Texas Clean Cities and Austin Energy offer an EV rebate to Austin Energy customers who purchase qualifying EVs, electric scooters, or electric bicycles from approved dealers. Applicants may receive the following rebates: $250 for all-electric vehicles including neighborhood electric vehicles, $100 for all-electric scooters, and $50 for all-electric bicycles. Rebate funding is limited and valid until March 31, 2009.

Alternative Fuel Vehicle (AFV) Grants

Congestion Mitigation and Air Quality (CMAQ) Program Grants are available through the Houston-Galveston Area Council, via the Greater Houston Regional Clean Cities Coalition, for up to 75% of the incremental cost for new original equipment manufacturer clean fuel vehicle purchases, and clean fuel vehicle conversions/repowers. This grant is for government and private entities in the eight-county Houston-Galveston non-attainment area.