Texas Propane 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)
Alternative Fuel Grant Assistance
The Texas State Energy Conservation Office researches and assists public and private entities in securing grants to encourage the use of alternative fuels, including conversion of state and local government fleets to operate on compressed natural gas, liquefied petroleum gas, hydrogen, biodiesel, and ethanol, and the use of hybrid electric vehicles.
Alternative Fuel Research and Development
The Railroad Commission of Texas (RRC) regulates the safety of the liquefied natural gas (LNG), compressed natural gas (CNG), and liquefied petroleum gas (LPG) industries. The RRC, through its Alternative Fuels Research and Education Division, promotes the use of LPG and administers grant programs to encourage the purchase of LPG school buses and forklifts.
Liquefied Petroleum Gas (LPG) Bus and Forklift Rebate
The Railroad Commission of Texas Alternative Fuels Research & Education Division (AFRED) School Bus Rebate Program applies to school buses (Model Year 2007 or newer) that incorporate an Original Equipment Manufacturer (OEM) low emission vehicle (LEV) certified LPG system. The rebate is worth 80% of the incremental cost of the LPG system, less any other grant funds used to pay for the incremental cost of the LPG system. Used OEM vehicles and LPG fuel system components are not eligible. AFRED also offers incentives to buyers of propane forklifts that meet 2004 U.S. Environmental Protection Agency emission standards. Rebate funding is limited.
Liquefied Petroleum Gas (LPG) Vehicle Training
The Railroad Commission of Texas offers free safety and maintenance training on LPG vehicles, buses, and forklifts.
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)
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)
Liquid Petroleum Gas (LPG) Tax
Motor fuel taxes for LPG vehicles are collected through annual sticker permit fees based on the registered gross vehicle weight rating and mileage driven the previous year. (Reference Texas Statutes, Tax Code, Section 162.305)
Utilities/Private Incentives
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.
