Texas businesses that convert heavy-duty vehicles to run on natural gas or buy new natural gas vehicles (NGV) could get financial incentives from the state for doing so under legislation passed by the Texas Senate. The same bill (SB 20) would also create a network of fueling stations to support such vehicles.

Funds from the Texas Emissions Reduction Program would pay for companies to either buy new NGVs or convert existing vehicles to run on natural gas. There is nearly $42 million available for the program.

The Texas Commission on Environmental Quality (TCEQ) “shall establish and administer the Texas natural gas vehicle grant program to encourage an entity that has a heavy-duty motor vehicle to repower the vehicle with a natural gas engine or replace the vehicle with a natural gas vehicle,” the bill said. “Under the program, the commission shall provide grants for eligible heavy-duty motor vehicles to offset the incremental cost for the entity of repowering or replacing the heavy-duty motor vehicle.”

The fueling station network would be known as the Texas Clean Transportation Triangle and would entail corridors with NGV refueling capability running among Houston, San Antonio, Dallas and Fort Worth. Vehicle refueling stations would be eligible for grants to be awarded by TCEQ. Stations with the capability to offer compressed natural gas and liquefied natural gas would enjoy a preference in grant decisions.

The legislation now goes to the Texas House.

NGVs have been on the minds of lawmakers in Washington and elsewhere lately (see Daily GPI, April 7a; April 7b; April 6).

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