Texas has more potential than any other state to produce renewable energy from the sun, the wind, crops and crop and forest wastes. And most of this potential exists in rural communities. Texas already is #1 in producing electricity from wind power. This development has re-energized many West Texas communities with new jobs, new tax revenues and landowner royalties for farmers and ranchers. Now, we’re moving forward to develop our solar, biomass and geothermal resources. The state offers programs that can help make Texas the nation’s renewable energy leader.


Examples of ORCA's renewable energy activities include:

• Disseminating information to rural Texas communities and increasing awareness of renewable energy resources;
• Assisting rural communities to identify their renewable energy resources;
• Providing assistance in securing funds for renewable energy and/or energy efficiency projects;
• Working with rural economic development organizations to identify opportunities for the creation of renewable energy businesses and new jobs; and
• Working with new or existing rural businesses to develop markets for renewable energy.

ORCA began providing renewable energy assistance to rural Texans in late 2004, when the agency entered into an interagency agreement with the Comptroller of Public Accounts' State Energy Conservation Office (SECO) to support the position.

Texas Biofuels Producer Incentive Program
Producers of ethanol and biodiesel can receive a 20 cent per gallon incentive through this program administered by the Texas Department of Agriculture. The incentive is limited to the first 18 million gallons produced annually state-wide for 10 years.

Texas Agricultural Biomass & Landfill Diversion Incentive Program
The Legislature this year created a $20 per ton incentive for forestry wastes and other biomass used to generate electricity. If signed by Gov. Perry, this legislation will provide an incentive for farmers, loggers and others to gather and deliver wood and crop wastes to power plants that burn biomass to generate electricity.

For more information, call (877) 428-7848 or visit Texas Department of Agriculture.

Texas Capital Fund & Texas Enterprise Fund
Grants are available through these two programs to help bring to Texas new renewable energy industries that create substantial new job opportunities. The Capital Fund uses Community Development Block Grant money to help fund construction of roads, water lines and sewer lines for renewable energy projects such as ethanol plants.

For more information on the Capital Fund, see ORCA's Texas Capital Fund or Texas Department of Agriculture or call (877) 428-7848.

For more information on the Enterprise Fund, visit the Office of the Governor or call (512) 936-0101.

Several state tax exemptions or deductions exist for purchasers of home or business solar panels or other renewable energy equipment. For details, visit the Database of State Incentives for Renewables & Efficiency.

Federal grants and loans also are available for renewable energy projects through the USDA, Dept. of Energy, and the Economic Development Administration.

More money is expected to be made available, especially as Congress develops the 2007 Farm Bill. For more information, visit the Texas State Energy Conservation Office.

The Clean Renewable Energy Bond program provides interest free loans to towns, counties and rural electric cooperatives to install renewable energy projects. For more information, visit the Environmental Law and Policy Center.

In Addition, the US Department of Agriculture offers grants and loans for farm and rural business-related renewable energy and energy efficiency projects through its Section 9006 and Value-Added Producer Grant programs.