Texas Incentives and Laws for Natural Gas

The list below contains summaries of all Texas incentives and laws related to Natural Gas.

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)

Natural Gas Vehicle (NGV) and Fueling Infrastructure Grants

Effective September 1, 2011, the Texas Commission on Environmental Quality (CEQ) will establish and administer the NGV Grant Program, part of the Texas Emissions Reduction Plan, which provides grants to replace existing medium- and heavy-duty vehicles with new, converted, or repowered NGVs. Qualifying vehicles must be on-road vehicles with a gross vehicle weight rating of more than 8,500 pounds and certified to current federal emissions standards. Grant funds may cover only the incremental costs. Additional terms and conditions apply.

To ensure that NGVs have access to natural gas fueling infrastructure, CEQ may also award grants to support the development of a network of natural gas fueling stations along the interstate highways connecting Houston, San Antonio, Dallas, and Forth Worth. Through a competitive process, CEQ may not award more than three station grants to any one entity, or more than one grant for each station. Grant amounts may not exceed $100,000 for a compressed natural gas station, $250,000 for a liquefied natural gas station, or $400,000 for a station providing both forms of natural gas. Funded stations must be accessible to the public and located within three miles of an interstate highway system. Additional terms and conditions apply.

This program ends August 31, 2017. (Reference Senate Bill 20, 2011, and Texas Statutes, Health and Safety Code 393)

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)

Heavy-Duty Natural Gas Vehicle (NGV) Grants

The Texas General Land Office administers the NGV Initiative Grant Program to encourage public-sector fleets in certain counties to increase their use of heavy-duty NGVs. Private fleets also may be eligible particularly those that operate directly under contract for government work or do other government business. 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. The program ends August 31, 2012. As of July 2011, funding is not available.

Point of Contact
Soll Sussman
Alternative Fuels Program Coordinator
Texas General Land Office, Renewable Energy Division
Phone: (512) 463-5039
Fax: (512) 463-9211
soll.sussman@glo.texas.gov
http://www.glo.texas.gov/what-we-do/energy-and-minerals/alternative_fuels/index.html

Natural Gas Fuel Rates and Alternative Fuel Promotion

Through its natural gas program, 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.

Point of Contact
Soll Sussman
Alternative Fuels Program Coordinator
Texas General Land Office, Renewable Energy Division
Phone: (512) 463-5039
Fax: (512) 463-9211
soll.sussman@glo.texas.gov
http://www.glo.texas.gov/what-we-do/energy-and-minerals/alternative_fuels/index.html

Clean Vehicle Replacement Vouchers

The Texas Commission on Environmental Quality administers the AirCheckTexas Drive a Clean Machine program, which provides vehicle replacement assistance for qualified individuals owning vehicles registered in participating counties. Vouchers in the amount of $3,500 are available toward the purchase of a hybrid electric, battery electric, or natural gas vehicle that is up to three model years old. For more information about participating counties, qualified vehicles, and program requirements, see the AirCheckTexas Drive a Clean Machine website. (Reference House Bill 3272, 2011, and Texas Statutes, Heath and Safety Code 382.209)

Utility/Private Incentives

Natural Gas Fuel Rate Reduction and Infrastructure Maintenance - Clean Energy

Clean Energy Fuels offers services to the natural gas vehicle industry that include compressed natural gas fueling station equipment maintenance and competitive fuel pricing for larger fleet customers, as well as alternative fuel vehicle financing.

Point of Contact
Blake Littauer
Market Manager for Alternative Fuels
Clean Energy Fuels
Phone: (505) 554-6215
blittauer@cleanenergyfuels.com

Natural Gas Vehicle (NGV) and Fueling Infrastructure Rebates - Texas Gas Service

The Texas Gas Service Conservation Program offers a $2,000 rebate for the purchase of a qualified NGV or $3,000 for the conversion of a gasoline powered vehicle to operate on natural gas. The rebate is available for up to five vehicles per customer, and only centers certified by the Railroad Commission of Texas may perform conversions. A $1,000 rebate is also available for the purchase of a natural gas forklift. Additionally, qualified residential and commercial NGV fueling infrastructure may be eligible for a $2,000 rebate. These incentives are available to commercial and residential customers within the city limits of Austin, Sunset Valley, Rollingwood, West Lake Hills, Cedar Park, and Kyle with specific gas rate codes.

Point of Contact
Teri Green
Conservation Program Manager
Texas Gas Service
Phone: (512) 465-1109
Fax: (512) 465-1133
tgreen@oneok.com

Natural Gas Infrastructure Technical Assistance - Atmos Energy

Atmos Energy offers preliminary feasibility studies for compressed natural gas fueling stations and may assist with vendor selection on a case-by-case basis.

Point of Contact
Walter C. Miller
Energy Services Consultant
Atmos Energy
Phone: (817) 303-2903
Fax: ((817) 303-2929
walter.c.miller@atmosenergy.com

Natural Gas Infrastructure Technical Assistance - CenterPoint Energy

CenterPoint Energy offers preliminary feasibility studies for compressed natural gas fueling stations and may assist with vendor selection on a case-by-case basis within the CenterPoint Energy service area.

Point of Contact
Justin Stiff
Senior Marketing Representative
CenterPoint Energy
Phone: (713) 207-9077
Fax: (713) 207-9084
justin.stiff@centerpointenergy.com

Laws and Regulations

Alternative Fuel Use and Vehicle Acquisition Requirements

State agency 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 or liquefied natural gas, propane, ethanol or fuel blends of at least 85% ethanol (E85), methanol or fuel blends of at least 85% methanol (M85), biodiesel or fuel blends of at least 20% biodiesel (B20), 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 infrastructure 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.

Covered state agency fleets must consist of at least 50% of vehicles that are able to operate on alternative fuels and use these fuels at least 80% of the time the vehicles are driven. Covered state agencies may meet these requirements through the purchase of new vehicles or the conversion of existing vehicles. State agencies that 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.

(Reference Texas Statutes, Government Code 2158.004-2158.009)

Renewable Fuel Promotion

The Texas Bioenergy Policy Council and the Texas Bioenergy Research Committee were established to promote the goal of making biofuels a significant part of the energy industry in Texas by January 1, 2019. The Policy Council is tasked with the following: 1) provide a vision for unifying the state's agricultural, energy, and research strengths in a successful launch of a cellulosic biofuel and bioenergy industry; 2) foster development of cellulosic and bio-based fuels; 3) pursue the creation of a next-generation biofuels energy research program at a university in the state; 4) pursue federal and other funding to position the state as a bioenergy leader; 5) study the feasibility and economic development effect of a blending requirement for biodiesel or cellulosic fuels; 6) pursue the development and use of thermochemical process technologies to produce alternative chemical feedstocks; and 7) study the feasibility of the requirements for renewable natural gas. (Reference Texas Statutes, Agriculture Code 50D)

Propane and Natural Gas Safety

The Railroad Commission of Texas regulates the safety of the natural gas and propane industries. (Reference Texas Statutes, Natural Resources Code 113.011 and 116.011)