Texas Electric Laws and Incentives
State Incentives
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 to purchase, convert, or repower on- 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 the TERP Web site. (Reference Texas Statutes, Health and Safety Code 386)
Texas Clean Fleet Program
Beginning in 2010, the Texas Commission on Environmental Quality (TCEQ) will administer the Texas Clean Fleet Program (Program), which encourages owners of fleets containing diesel vehicles to permanently remove the vehicles from the road and replace them with alternative fuel or hybrid electric vehicles. Grants will be available to fleets to offset the incremental cost of such replacement projects. An entity that operates a fleet of at least 100 vehicles and places 25 or more qualifying vehicles in service for use entirely in Texas during a given calendar year is eligible to participate in the Program. Qualifying alternative fuel or hybrid electric vehicle replacements must: result in a reduction of emissions of nitrogen oxides or other pollutants, as established by the TCEQ, by at least 25% as compared to baseline levels; meet established minimum fuel economy guidelines; and meet other requirements as established by TCEQ. Neighborhood electric vehicles do not qualify under this Program. This Program expires August 31, 2017. (Reference Senate Bill 1759, 2009, and Texas Statutes, Health and Safety Code 391)
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. For more information, see the NTRD Program Web site.The NTRD Program is administered by the Texas Environmental Research Consortium, with support from the Houston Advanced Research Center from 2006 to 2009. The Texas Commission on Environmental Quality will assume administration in 2010. (Reference Texas Statutes, Health and Safety Code 386)
Clean School Bus Program - North Central Texas
The North Central Texas Clean School Bus Program (Program) is a fuel and technology neutral program, administered by the North Central Texas Council of Governments, serving a 16-county service area. The Program serves as a clearinghouse for information on technology, legislation, best-practices for school bus operators, and clean school bus funding opportunities. The Program aims to reduce emissions from school bus fleets by encouraging and assisting in the expedited purchase of clean school buses as well as adoption and enforcement of idle reduction policies. In addition, the Program seeks to gather community resources to assist schools, school districts, and school bus operators in improving air quality and protecting the health of school-aged children.
Clean Heavy-Duty Vehicle and Idle Reduction Grants - Dallas-Fort Worth
The Heavy-Duty Vehicle and Equipment Grant Program (Program) is administered by the North Central Texas Council of Governments, in partnership with the Texas Commission on Environmental Quality and the U.S. Environmental Protection Agency. The Program seeks to reduce emissions from heavy-duty engines in the Dallas-Fort Worth region, as well as educate public and private entities on the availability of clean fuels and vehicle technologies. Grant funding is available in three emphasis areas: local government, construction equipment, and idle reduction projects. Both public and private sector entities may apply for grants for the replacement or repower/retrofit of construction equipment, or for the purchase and installation of on-side and on-board idle reduction technologies. Local governments may apply for additional project types. All projects must have a nitrogen oxide emissions reduction component. Projects will be selected on a modified first come first served basis.
Alternative Fuel Vehicle (AFV) Grants - Houston-Galveston
Congestion Mitigation and Air Quality (CMAQ) Program Grants are available through the Houston-Galveston Area Council, via the Greater Houston Clean Cities Coalition, for up to 75% of the incremental cost of purchasing new original equipment manufactured clean fuel vehicles, clean fuel vehicle conversions/repowers, or establishing publicly accessible alternative fueling infrastructure. This grant is for government and private entities in the eight-county Houston-Galveston non-attainment area.
State Laws and Regulations
Alternative Fuel Use Required in State Fleets
State fleets with more than 15 vehicles, excluding emergency and law enforcement vehicles, may not purchase or lease a motor vehicle unless the vehicle uses compressed natural gas, liquefied natural gas, liquefied petroleum gas, methanol or methanol-gasoline blends of 85% or greater (M85), ethanol or E85, biodiesel or B20 and higher blends, or electricity including plug-in hybrid electric vehicles. Waivers may be granted for fleets under the following circumstances: 1) the fleet will operate primarily in areas where neither the state agency or a supplier can reasonably be expected to establish adequate fueling for these fuels, or 2) the agency is unable to obtain equipment or fueling facilities necessary to operate alternative fuel vehicles at a cost that is no greater than the net costs of using conventional fuels.
By September 30, 2010, covered state agency fleets must consist of at least 50% vehicles that use alternative fuels as listed above and use these fuels not less than 80% of the time the vehicle is driven.
Furthermore, state agencies authorized to purchase passenger vehicles or other ground transportation vehicles for general use must ensure that at least 25% of the vehicles purchased during any state fiscal biennium, other than exempted vehicles, meet or exceed federal Tier II, Bin 3 emissions standards. Covered state agencies may meet these requirements through the purchase of new vehicles or the conversion of existing vehicles.
(Reference House Bill 432, 2009, and Texas Statutes, Government Code 2158.001, 2158.0013, and 2158.003 to 2158.009)
Neighborhood Electric Vehicle (NEV) Access to Roadways
NEVs are defined as vehicles that can attain a maximum speed of 35 miles per hour (mph) and must comply with the safety standards in Title 49 of the Code of Federal Regulations, section 571.500. NEVs may only be used on roads that have a posted speed limit of 45 mph or less but may cross a road or street at an intersection where the road or street has a posted speed limit of more than 45 mph. A county, municipality, or the Texas Department of Transportation may prohibit the operation of a NEV on a street or highway if the governing body determines that the prohibition is necessary in the interest of safety. (Reference Senate Bill 129, 2009, and Texas Statutes, Transportation Code 551.301-551.303)
