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State and Federal Incentives and Laws

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Alternative Fuel Vehicle (AFV) 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 replacing their aging, diesel school bus fleets 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 for new, converted, or repowered on-road 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 TERP Guidelines for Emissions Reduction Incentive Grants. (Reference Texas Statutes, Health & Safety Code, Chapter 386)

Point of Contact

Steve Dayton
Team Leader of Grant Contract Development Team
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 in Texas. For complete information on the types of projects and expenses that may be eligible for a grant, refer to the latest Request for Grant Applications and the NTRD Guidelines. The NTRD Program is administered by the Texas Environmental Research Consortium, with support from the Houston Advanced Research Center. (Reference Texas Statutes, Health & Safety Code, Chapter 386)

Point of Contact

Dr. Rudy Smaling, PhD
NTRD Program Director, Senior Research Scientist
Houston Advanced Research Center
Phone (281) 364-4036
Fax (281) 363-7935
rsmaling@harc.edu
http://www.harc.edu

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

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 American Society of Testing and Materials (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, Section 16.001 and 16.005)

Alternative Fuel Program Support

The Texas Energy Planning Council, facilitated by the Railroad Commission of Texas, was created in November 2003 to advise the Governor on a balanced plan to provide the energy needed to fuel Texas' future economic growth and prosperity. The final report, Texas Energy Plan 2005: Energy Security for a Bright Tomorrow, was submitted to the Governor in January 2005. The report identifies gaps between the state's energy supply and energy demand and recommends a plan to close or minimize these gaps. The Council explored ways to diversify future energy supplies via liquefied natural gas, nuclear, and clean coal technology as well as through renewable energy sources such as wind power, biomass, and fuel cells. (Reference Executive Order RP 29, 2003)

Alternative Fuel Vehicle (AFV) Program Support and Technician Training

The Texas State Energy Conservation Office's (SECO) Alternative Fuels Program initiatives include providing 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 Section 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

Biodiesel or ethanol blended with taxable diesel, that is identified when sold or used as a biodiesel or ethanol fuel blend, is exempt from the diesel fuel tax. (Reference Texas Statutes, Tax Code, Sections 162.001 and 162.204)

Alternative Fuel Vehicle (AFV) Grants

Congestion Mitigation and Air Quality (CMAQ) Program Grants are available through the Houston-Galveston Area Council, via the Greater Houston Regional Clean Cities Coalition, for up to 75% of the incremental cost for new original equipment manufacturer clean fuel vehicle purchases, and clean fuel vehicle conversions/repowers. 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 Regional Clean Cities Coalition
Phone (832) 681-2556
christine.smith@h-gac.com
http://www.houston-cleancities.org