Texas Natural Gas Laws and Incentives
State Incentives
Heavy-Duty Natural Gas Vehicle (NGV) Grants
To encourage fleets to increase their use of heavy-duty NGVs, the Texas General Land Office (GLO) has an NGV Initiative Grant Program available for public-sector partners in certain Texas counties. The program is funded with a Texas Emissions Reduction Plan grant through the Texas Commission on Environmental Quality. A variety of vehicles, including street sweepers, forklifts, buses, and garbage trucks, are eligible for grants to help cover the cost of replacing diesel vehicles with NGVs. For more information about the program and eligible counties, see the NGV Initiative Grant Program Web site.
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)
Natural Gas Fuel Rates and Alternative Fuel Promotion
The Texas General Land Office (GLO) makes competitively-priced natural gas available to school districts (and other state and local public entities) for use in natural gas vehicles. The GLO has also established an alternative fuels program to aggressively promote the use of alternative energy sources, especially for those fuels abundant in Texas. The GLO alternative fuels program serves as a liaison between government and industry.
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.
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)
Utilities/Private Incentives
Natural Gas Vehicle (NGV) and Forklift Rebate
The Texas Gas Service Conservation Program offers a $2,000 rebate for the purchase of a natural gas vehicle or conversion of a gasoline powered vehicle to operate on natural gas (maximum of five vehicles per customer), and a $1,000 rebate for the purchase of a natural gas forklift. This incentive is for commercial and residential customers in the city of Austin with specific gas rate codes. Conversions must be done by a center that is certified by the Railroad Commission of Texas.
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.
Natural Gas Infrastructure Technical Assistance
Atmos Energy offers preliminary feasibility studies for compressed natural gas refueling stations and vendor selection on a case-by-case basis.
