Texas Incentives and Laws
Last Updated December 2008
Texas is the home of the Alamo Area (www.aacog.com/cleancities), Central Texas (www.cityofaustin.org/cleancities), Dallas/Fort Worth (www.nctcog.org/cleancities), East Texas (www.netac.org/283/clean-cities.htm), Greater Houston (www.houston-cleancities.org), and South East Texas Clean Cities Coalitions. Coordinator contact information is listed in the Points of Contact section.
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.
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.state.tx.us
http://www.glo.state.tx.us/energy/altfuels/index.html
Alternative Fuel School Bus 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 fleets to replace their aging, diesel school buses 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 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)
Point of Contact
Steve Dayton
Team Leader, Grant Contract Development
Texas Commission on Environmental Quality
Phone (512) 239-6824
Fax (512) 239-0077
sdayton@tceq.state.tx.us
http://www.terpgrants.org
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. (Reference Texas Statutes, Health and Safety Code 386)
Point of Contact
Yiqun Huang, PhD
Program Director, New Technology Research and Development
Houston Advanced Research Center
Phone (281) 364-4036
Fax (281) 363-7935
yhuang@harc.edu
http://www.harc.edu
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.
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.state.tx.us
http://www.glo.state.tx.us/energy/altfuels/index.html
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.
Point of Contact
Mary-Jo Rowan
Program Manager
Texas State Energy Conservation Office, Texas Comptroller of Public Accounts
Phone (512) 463-2637
Fax (512) 475-2569
mary-jo.rowan@cpa.state.tx.us
http://www.seco.cpa.state.tx.us
Liquefied Petroleum Gas (LPG) Vehicle Incentives
The Railroad Commission of Texas Alternative Fuels Research and Education Division (AFRED) Low Emissions Propane Equipment Initiative Program offers incentives to buyers who wish to replace aging medium-duty diesel school bus or delivery vehicles with qualified LPG vehicles that meet or exceed current U.S. Environmental Protection Agency (EPA) emissions standards. The incentive amount is dependent upon the calculated emissions reductions. AFRED also offers incentives to buyers who wish to replace aging internal combustion forklifts with new propane forklifts that meet or exceed 2008 EPA emission standards.
Point of Contact
Heather Ball
Marketing and Public Education Director, Alternative Fuels Research & Education Division
Railroad Commission of Texas
Phone (512) 463-7359 or (800) 64-CLEAR
Fax (512) 463-7292
heather.ball@rrc.state.tx.us
http://www.propane.tx.gov/rebate_program
Liquefied Petroleum Gas (LPG) Vehicle Training
The Railroad Commission of Texas offers free safety and maintenance training on LPG vehicles, buses, and forklifts.
Point of Contact
Franz Hofmann
Lead Automotive Instructor, Alternative Fuels Research & Education Division
Railroad Commission of Texas
Phone (512) 463-8501
Fax (512) 475-2532
franz.hofmann@rrc.state.tx.us
State Laws and Regulations
Fuel Dispenser Labeling Requirement
Effective April 1, 2009, all motor fuel dispensing equipment used to dispense motor fuel containing at least 1% ethanol or methanol must be clearly labeled to inform customers that the fuel contains ethanol or methanol. Motor fuel dispensing equipment used to dispense motor fuel containing at least 10% ethanol or 5% methanol must also state the percentage of ethanol or methanol by volume. Motor fuel dealers must inform customers of ethanol and methanol fuel content upon request. (Reference Texas Statutes, Agriculture Code 17.051)
Ethanol and Biodiesel Production Fee
Ethanol and biodiesel producers are subject to a fee of $0.032 per gallon of ethanol or biodiesel produced in each registered production facility, imposed by the Texas Department of Agriculture. For the purpose of this regulation, ethanol is defined as ethyl alcohol that is at least 99% pure ethanol by volume that meets ASTM specification D4806. Biodiesel is a monoalkyl ester derived from vegetable oils, rendered animal fats, or renewable lipids or a combination of those ingredients, and meets the requirements of ASTM PS 121, the provisional specification for biodiesel. (Reference Texas Statutes, Agriculture Code 16.001 and 16.005)
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)
Idle Reduction Requirement
Idling of any vehicle for more than five minutes from April through October is prohibited in the cities of Austin, Bastrop, Elgin, Lockhart, Round Rock, and San Marcos, and the counties of Bastrop, Caldwell, Hays, Travis, and Williamson. Exemptions apply for the following: vehicles with a Gross Vehicle Weight Rating of 14,000 pounds or less (after September 1, 2009); traffic conditions; emergency or law enforcement; to perform needed work; maintenance or diagnostics; defrost windshield; airport ground support; rented/leased vehicles; and hours of service compliance. Vehicles may idle for up to 30 minutes for bus passenger comfort or transit operations. Fines vary by jurisdiction. (Reference Texas Administrative Code 30.114.510-30.114.517)
Heavy-Duty Idle Reduction Requirement
No driver using a vehicle's sleeper berth may idle the vehicle in a school zone or within 1,000 feet of a public school during its hours of operation. Violators may be subject to a fine of up to $500. This restriction expires September 1, 2009. (Reference Senate Bill 12, 2007, and Texas Statutes Health and Safety Code 382.0191)
Neighborhood Electric Vehicle (NEV) Access to Roadways
NEVs may only be used on roads that have a posted speed limit of 35 miles per hour or less. NEVs must comply with the safety standards in Title 49 of the Code of Federal Regulations, section 571.500. (Reference Texas Statutes, Transportation Code 551.301-551.303)
Alternative Fuel Vehicle (AFV) Program Support and Technician Training
The Texas State Energy Conservation Office's (SECO) Alternative Fuels Program provides 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, Government Code 2305.035)
Point of Contact
Mary-Jo Rowan
Program Manager
Texas State Energy Conservation Office, Texas Comptroller of Public Accounts
Phone (512) 463-2637
Fax (512) 475-2569
mary-jo.rowan@cpa.state.tx.us
http://www.seco.cpa.state.tx.us
Ethanol and Biodiesel Blend Tax Exemption
The biodiesel or ethanol portion of blended fuel containing taxable diesel is exempt from the diesel fuel tax. The biodiesel or ethanol fuel blend must be clearly identified on the retail pump, storage tank, and sales invoice in order to be eligible for the exemption. (Reference Texas Statutes, Tax Code 162.204)
Liquid Petroleum Gas (LPG) Tax
Motor fuel taxes for LPG vehicles are collected through an annual sticker permit fee based on the registered Gross Vehicle Weight Rating and mileage driven the previous year. (Reference Texas Statutes, Tax Code 162.305)
Liquefied Petroleum Gas and Natural Gas Safety
The Railroad Commission of Texas (RRC) regulates the safety of the liquefied natural gas (LNG), compressed natural gas (CNG), and LPG industries. (Reference Texas Statutes, Natural Resources Code 113.011 and 116.011)
Utilities/Private Incentives
Natural Gas Vehicle (NGV) and Fueling Infrastructure Rebates
The Texas Gas Service Conservation Program offers a $2,000 rebate for the purchase of an NGV or the conversion of a gasoline powered vehicle to operate on natural gas. The rebate is available for up to five vehicles per customer, and conversions must be performed by a center that is certified by the Railroad Commission of Texas. 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 in the city of Austin 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
http://www.txgas.com
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 for 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.
Point of Contact
Christine Smith
Clean Cities Coordinator
Greater Houston Clean Cities Coalition
Phone (832) 681-2556
cleancities@h-gac.com
http://www.houston-cleancities.org
Natural Gas Infrastructure Technical Assistance
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
Points of Contact:
| NAME/EMAIL | AGENCY | TITLE | PHONE/FAX |
|---|---|---|---|
| Andrew Hudgins ahudgins@aacog.com | Alamo Area Clean Cities Coalition | Clean Cities Coordinator | Phone: (210) 362-5200 Fax: (210) 225-5937 | Stacy Neef stacy.neef@austinenergy.com | Central Texas Clean Cities Coalition | Clean Cities Coordinator | Phone: (512) 482-5343 Fax: (512) 482-5454 | Mindy Mize mmize@nctcog.org | Dallas/Fort Worth Clean Cities Coalition | Clean Cities Co-Coordinator | Phone: (817) 608-2346 Fax: (817) 640-3028 | Pamela Burns pburns@nctcog.org | Dallas/Fort Worth Clean Cities Coalition | Clean Cities Co-Coordinator | Phone: (817) 704-2510 Fax: (817) 640-3028 | Christine Smith cleancities@h-gac.com | Greater Houston Clean Cities Coalition | Clean Cities Coordinator | Phone: (832) 681-2556 Fax: | Rick McKnight rick.mcknight@etcog.org | East Texas Clean Cities Coalition | Clean Cities Coordinator | Phone: (903) 984-8641 Fax: (903) 983-1440 | Bob Dickinson bdickinson@setrpc.org | South East Texas Clean Cities Coalition | Clean Cities Coordinator | Phone: (409) 899-8444 x251 Fax: (409) 729-6511 | Marie Lester cmlester@victoriatx.org | Victoria Clean Cities Coalition (Not Yet Designated) | Clean Cities Coordinator | Phone: (361) 485-3230 Fax: | Neil Kirschner neil.kirschner@netl.doe.gov | U.S. Department of Energy, National Energy Technology Laboratory | Project Manager | Phone: (412) 386-5793 Fax: | Heather Ball heather.ball@rrc.state.tx.us | Railroad Commission of Texas | Marketing and Public Education Director, Alternative Fuels Research & Education Division | Phone: (512) 463-7359 or (800) 64-CLEAR Fax: (512) 463-7292 | Dan Kelly dan.kelly@rrc.state.tx.us | Railroad Commission of Texas | Director, Alternative Fuels Research & Education Division | Phone: (512) 463-7291 Fax: (512) 463-7292 | Franz Hofmann franz.hofmann@rrc.state.tx.us | Railroad Commission of Texas | Lead Automotive Instructor, Alternative Fuels Research & Education Division | Phone: (512) 463-8501 Fax: (512) 475-2532 | Soll Sussman soll.sussman@glo.state.tx.us | Texas General Land Office, Renewable Energy Division | Alternative Fuels Program Coordinator | Phone: (512) 463-5039 Fax: (512) 463-9211 | Steve Dayton sdayton@tceq.state.tx.us | Texas Commission on Environmental Quality | Team Leader, Grant Contract Development | Phone: (512) 239-6824 Fax: (512) 239-0077 | Yiqun Huang, PhD yhuang@harc.edu | Houston Advanced Research Center | Program Director, New Technology Research and Development | Phone: (281) 364-4036 Fax: (281) 363-7935 | Mary-Jo Rowan mary-jo.rowan@cpa.state.tx.us | Texas State Energy Conservation Office, Texas Comptroller of Public Accounts | Program Manager | Phone: (512) 463-2637 Fax: (512) 475-2569 | Teri Green tgreen@oneok.com | Texas Gas Service | Conservation Program Manager | Phone: (512) 465-1109 Fax: (512) 465-1133 | Don Lewis dlewis1@dot.state.tx.us | Texas State Department of Transportation, General Services Division | Fleet Manager | Phone: (512) 374-5471 Fax: (512) 374-5481 | Walter C. Miller walter.c.miller@atmosenergy.com | Atmos Energy | Energy Services Consultant | Phone: (817) 303-2903 Fax: ((817) 303-2929 | Sandra Rennie rennie.sandra@epa.gov | U.S. Environmental Protection Agency | Mobile Source Team Leader, Region 6 | Phone: (214) 665-7367 Fax: (214) 665-7263 | Anna Friend anna.friend@gsa.gov | U.S. General Services Administration | Transportation Operations Specialist | Phone: (303) 236-7221 Fax: (303) 236-7590 |
