Hydrogen Laws and Incentives in Texas
The list below contains summaries of all Texas laws and incentives related to hydrogen.
Laws and Regulations
Alternative Fuel Vehicle (AFV) Registration Tracking Program
The Texas Department of Motor Vehicles (Department) collects data on the number of AFVs registered in the state. The Department must submit an annual report to the Texas Legislature detailing the results of each data collection year. The annual report must include information on electric, hybrid, compressed natural gas, and liquefied natural gas vehicle registrations.
(Reference Texas Statutes, Transportation Code 502.001 and 502.004)
Authorization of Governmental Alternative Fuel Fleet Grant Program
The Texas Commission on Environmental Quality (TCEQ) must administer a grant program for governmental alternative fuel fleets to provide grants for the purchase or lease of a new vehicle and the purchase, lease, or installation of alternative fueling equipment. Eligible alternative fuels include natural gas, propane, hydrogen, and electricity. State agencies and political subdivisions are eligible to apply for a grant under the program if the entity operates a fleet of more than 15 vehicles. Mass transit and school transportation providers will also be eligible for grants.
TCEQ must establish standardized vehicle grant amounts based on the incremental costs associated with the purchase or lease of different categories of motor vehicle, including the fuel type, vehicle class, and other categories TCEQ considers appropriate. TCEQ will also establish standardized fueling equipment grant amounts.
(Reference Texas Statutes, Health and Safety Code 386.153)
Provision for Establishment of Hydrogen Program
The Texas Department of Transportation (TxDOT) may seek funding from public and private sources to acquire and operate hydrogen vehicles and establish and operate publicly accessible hydrogen fueling stations. TxDOT must ensure that data on emissions from the vehicles, fueling stations, and related hydrogen production are monitored and 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)
State Incentives
Clean Fleet Grants
The Texas Commission on Environmental Quality (TCEQ) administers the Texas Clean Fleet Program (TCFP) as part of the Texas Emissions Reduction Plan (TERP). The TCFP provides grants to fleets to replace existing fleet vehicles with alternative fuel vehicles (AFVs) or hybrid electric vehicles (HEVs). An entity that operates a fleet of at least 75 vehicles and commits to operating at least 25% of total annual mileage in a Clean Transportation Zone may be eligible. 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. For more information, including current application periods, see the TCEQ TERP website.
(Reference Texas Statutes, Health and Safety Code 386 and 392 and Texas Administrative Code Title 30 Part 1 Chapter 114 Subchapter K Division 5 Rule 114.650-114.658)
Clean School Bus Grants
The Texas Commission on Environmental Quality (TCEQ) administers the Texas Clean School Bus (TCSB) Program as part of the Texas Emissions Reduction Plan (TERP). The TCSB program provides grants to public school districts and charter schools for the incremental costs to replace school buses or install diesel oxidation catalysts, diesel particulate filters, emission-reducing add-on equipment, and other emissions reduction technologies in qualified school buses. For more information, including application periods, see the TCEQ TERP website.
(Reference Texas Administrative Code Title 30 Part 1 Chapter 114 Subchapter K Division 4 Rule 114.640-114.648 and Texas Statutes, Health and Safety Code 390)
Clean Vehicle and Infrastructure Grants
The Texas Commission on Environmental Quality (TCEQ) administers the Emissions Reduction Incentive Grants (ERIG) Program as part of the Texas Emissions Reduction Plan (TERP). The ERIG program provides grants for various types of clean air projects to improve air quality in the state’s nonattainment areas and other affected counties. Eligible projects include those that involve replacement, retrofit, repower, or lease or purchase of new heavy-duty vehicles; alternative fuel dispensing infrastructure; idle reduction and electrification infrastructure; and alternative fuel use. For more information, including application periods, see the TCEQ TERP website.
(Reference Texas Statutes, Health and Safety Code 386.101-386.117 and Texas Administrative Code Title 30 Part 1 Chapter 114 Subchapter K Division 3 Rule 114.620-114.629)
Governmental Fleet Grants
The Texas Commission on Environmental Quality (TCEQ) administers the Governmental Alternative Fuel Fleet Grant Program (GAFF) as part of the Texas Emissions Reduction Plan (TERP) for the purchase or lease of new vehicles powered by natural gas, propane, hydrogen, or electricity. Special districts and government entities that operate a fleet greater than 15 vehicles are eligible. For more information, including application periods, see the TCEQ TERP website.
(Reference Texas Statutes, Health and Safety Code 386.153 and 395.001-395.015)
Heavy-Duty Vehicle and Equipment Grants
The Texas Commission on Environmental Quality (TCEQ) administers the Rebate Grants Program (Program) as part of the Texas Emissions Reduction Plan (TERP). The Program provides grants to eligible entities to replace or repower existing heavy-duty, diesel-powered vehicles. Replacement vehicles and engines may not be more than three years older than the calendar year purchased and must reduce nitrogen oxide emissions by at least 25% compared to the vehicle or engine being replaced. Eligible replacement on- and off-road vehicles must be powered by diesel, natural gas, propane, methanol, hydrogen, or electricity. For more information, including current application periods, see the TCEQ Texas Emissions Reduction Plan TERP website.
(Reference Texas Health and Safety Code 386.104)
Hydrogen Fuel Cell Electric Vehicle (FCEV) and Infrastructure Grants
The Texas Commission on Environmental Quality (TCEQ) administers the Texas Hydrogen Infrastructure, Vehicle, and Equipment (THIVE) program as part of the Texas Emissions Reduction Plan (TERP). The THIVE program provides grants to individuals, state and local governments, and private entities for the repower or replacement of eligible vehicles with FCEVs. Eligible projects include heavy-duty on-road and non-road vehicles and fueling infrastructure. For more information, including application periods, see the TCEQ TERP website.
Light-Duty Alternative Fuel Vehicle Rebates
The Texas Commission on Environmental Quality (TCEQ) administers the Light-Duty Motor Vehicle Purchase or Lease Incentive Program (LDPLIP) as part of the Texas Emissions Reduction Plan (TERP). LDPLIP provides grants for the purchase or lease of a new light-duty vehicle powered by compressed natural gas (CNG), propane, hydrogen, or electricity. CNG and propane vehicles, including bi-fuel vehicles, are eligible for a rebate of up to $5,000. Electric drive vehicles powered by a battery or hydrogen fuel cell, including plug-in hybrid electric vehicles with a battery capacity of at least 4 kilowatt hours, are eligible for a rebate of up to $2,500. One rebate is available per eligible vehicle. Rebates are awarded on a first-come, first-served basis. For more information, including application periods, see the TERP website.
(Reference Texas Statutes, Health and Safety Code 386.154 and Texas Administrative Code Title 30 Part 1 Chapter 114 Subchapter K Division 2 Rule 114.610-114.613)
More Laws and Incentives
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