Skip Navigation to main content U.S. Department of Energy Energy Efficiency and Renewable Energy
Alternative Fuels & Advanced Vehicles Data Center
About the AFDCFuelsVehiclesFleetsIncentives and LawsData, Analysis and TrendsInformation ResourcesHome
Alternative and Advanced Fuels

Texas State Flag

Texas Hydrogen 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

Provision for Establishment of Hydrogen Program

The Texas Department of Transportation (TxDOT) is authorized to seek funding to acquire and operate hydrogen vehicles and establish and operate publicly-accessible hydrogen fueling stations. TxDOT is required to ensure that data on emissions from the vehicles, fueling stations, and related hydrogen production are monitored 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)