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Texas Incentives and Laws for Hydrogen Fuel Cells

The list below contains summaries of all Texas incentives and laws related to Hydrogen Fuel Cells.

State Incentives

Alternative Fueling Infrastructure Grants

Effective September 1, 2011, the Texas Commission on Environmental Quality will establish and administer the Alternative Fueling Facilities Program, part of the Texas Emissions Reduction Plan, which provides grants for 50% of eligible costs, up to $500,000, to construct, reconstruct, or acquire a facility to store, compress, or dispense alternative fuels in Texas air quality nonattainment areas. Qualified alternative fuels include electricity, natural gas, hydrogen, propane, and fuel mixtures containing at least 85% methanol (M85). The entity receiving the grant must agree to make the fueling station available to people and organizations not associated with the grantee during certain times. Additional terms and conditions apply. This program ends August 31, 2018. (Reference Senate Bill 20, 2011, and Texas Statutes, Health and Safety Code 394)

Clean Vehicle and Infrastructure Grants

The Texas Commission on Environmental Quality administers the Emissions Reduction Incentive Grants (ERIG) Program, part of the Texas Emissions Reduction Plan, which provides grants for various types of clean air projects to improve air quality in the state's nonattainment areas. Eligible projects include those that involve heavy-duty vehicle replacement, retrofit, or repower; alternative fuel dispensing infrastructure; idle reduction and electrification infrastructure; and alternative fuel use. As of July 2011, the latest ERIG application period has closed. (Reference Texas Statutes, Health and Safety Code 386)

Alternative Fuel and Advanced Vehicle Research and Development Grants

The Texas Council on Environmental Quality administers the New Technology Research and Development (NTRD) Program, part of the Texas Emissions Reduction Plan, which provides grants for alternative fuel and advanced technology demonstration and infrastructure projects to encourage and support research, development, and commercialization of technologies that reduce pollution. As of July 2011, the latest NTRD grant application period has closed. (Reference Texas Statutes, Health and Safety Code 387)

Clean Fleet Grants

The Texas Commission on Environmental Quality (TCEQ) administers the Texas Clean Fleet Program, part of the Texas Emissions Reduction Plan, which encourages owners of fleets containing diesel vehicles to permanently remove the vehicles from the road and replace them with alternative fuel vehicles (AFVs) or hybrid electric vehicles (HEVs). Grants are 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 may be eligible for grant. Qualifying AFV or HEV replacements must reduce emissions of nitrogen oxides or other pollutants by at least 25% as compared to baseline levels and must replace vehicles that meet operational and fuel usage requirements. Neighborhood electric vehicles do not qualify. This program ends August 31, 2017. As of July 2011, the latest grant application period has closed. (Reference Texas Statutes, Health and Safety Code 391)

Laws and Regulations

Provision for Establishment of Hydrogen Program

The Texas Department of Transportation (TxDOT) may seek funding from public and private sources to acquire and operate hydrogen vehicles and establish and operate publicly-accessible hydrogen fueling stations. TxDOT must ensure that data on emissions from the vehicles, fueling stations, and related hydrogen production are monitored and compared with data on emissions from control vehicles with internal combustion engines that operate on fuels other than hydrogen. TxDOT must report the results of this monitoring, analysis and comparison to the Texas Commission on Environmental Quality. (Reference Texas Statutes, Transportation Code 201.618)