May 30

SB 1727 and Natural Gas Incentives in Texas

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News Feed

Legislation is on the way to Governor Perry’s desk. SB 1727 is an omnibus bill that will incentivize adoption of natural gas use in a number of new markets in Texas. To read the full text, click on the following link: http://www.capitol.state.tx.us/tlodocs/83R/billtext/pdf/SB01727F.pdf#navpanes=0

If not specifically listed below, the Commission will have to create rules for programs and will set grant amounts during those rule makings. All rule makings will be monitored to ensure successful implementation of all new programs.

SB 1727:

  • Creates grant program for drilling, production, completions and related HD on-road vehicles or non-road equipment in oil and gas production fields.
  • Creates grant program for LD vehicles to receive $2,500 for CNG or electric vehicles. This program has a cap of 2,000 vehicles for each biennium in this program. CHKs fleet would be eligible for these grants.
  • Creates grant program to incentivize conversion to diesel-natural gas dual fuel engines for both HD on-road vehicles and non-road engines.
  • Increases grant awards for vehicles in NGV grant program to receive up to 80 percent of total vehicle cost (as opposed to only incremental cost).
  • Increases grant amounts for CNG or LNG refueling facilities to $400K from 100K and $600K from $400K for CLNG stations.
  • Gives priority funding to areas in TX Triangle but establishes flexibility that once TCTT is built out we can then use those funds in areas outside the original geographic boundaries for similar eligible facilities and vehicles.
  • Creates drayage vehicle program for HD on-road vehicles, non-road equipment, locomotives and marine vessels at seaport facilities (i.e. Port of Houston).

The amount appropriated to the TERP program has been successfully increased from $112M for the current biennium (2012-13) to $155M for 2014-15. Each program has a breakdown of amounts they will receive, but the majority of funding will go directly to Natural Gas related programs.