Lone Star Clean Fuels Alliance News

October 2022

State & National News

Department of Energy Biden-Harris Administration Announces Interagency Commitment to Lower Transportation Emissions and Consumer Costs, Bolster Domestic Energy Security

The Biden Administration today announced a Memorandum of Understanding (MOU) among four federal agencies to accelerate the nation’s affordable and equitable clean transportation future. The U.S. Departments of Energy, Transportation, Housing and Urban Development, and the U.S. Environmental Protection Agency will work collectively to reduce greenhouse gas emissions associated with the transportation sector and to ensure resilient and accessible mobility options for all Americans. Domestic transportation—including both passenger and freight—produces more greenhouse gas emissions than any other sector. Working closely with states, local communities, Tribal communities, labor unions, nonprofits, and the private sector, the agencies will combine efforts to advance low- and zero-emission transportation solutions to reduce reliance on fossil fuels, create clean transportation jobs, and support President Biden’s goal of achieving net-zero emissions economy-wide by 2050. Of interest to the biofuel and bioenergy industries, the newly signed law establishes new tax credits for sustainable aviation fuel (SAF), clean transportation fuels and clean hydrogen. It also extends several existing tax credits that benefit transportation biofuels, such as renewable diesel and biodiesel, and includes funding for biofuel infrastructure development.

Xos Energy Solutions Expands EV Charger Lineup

Xos Inc.’s Xos Energy Solutions unit is offering new Xos DC fast chargers that are compatible with both passenger and commercial electric vehicles (EV), enabling a wide range of applications.

The five chargers include a 30 kW portable EV charger, a 30 kW wall-mount EV charger, a 60 kW EV charger, a 150 kW EV charger, and a 300 kW EV charger. For fleet owners and operators, the chargers can be monitored through the Xosphere fleet management platform, enabling operators to remotely observe and maintain charging profiles and schedules to optimize total cost of ownership. For more info contact Russell Worthy.

Inflation Reduction Act charts a new course for US biofuels industry

Ethanol producers will benefit from its carbon capture, utilization and storage provisions, clean fuel production credits, and incentives for ethanol-based sustainable aviation fuel. In addition, cellulosic ethanol manufacturers celebrated the revival of a previously-expired $1.01/gal second generation biofuels credit.

Many US ethanol producers plan to use carbon capture technologies to reduce the life cycle carbon intensity of their fuel. Lowering a fuel’s CI score increases its value, particularly in low-carbon markets such as California and Oregon.

The new law extends and expands the tax credit for CCUS, commonly known as the 45Q tax credit, for projects that begin construction between 2023 and 2032. 45Q tax credits are based on the volume of qualified carbon oxides captured and sequestered.

Two lesser-known biofuels credits that expired at the end of 2021 were revived retroactively: the alternative fuel mixture credit and the 2G biofuels credit.

The alternative fuel mixture credit is a 50 cents/gal tax credit that rewards the use of fuels such as propane and compressed natural gas in a motor vehicle, motorboat or aircraft. The law removed liquified hydrogen as an alternative fuel as it is now covered by other provisions.

Grants & Funding

    • The U.S. Environmental Protection Agency (EPA) is nearly doubling the funding awarded for clean school buses this year following increased demand, with school districts from all 50 states applying for the 2022 Clean School Bus Rebates. 

      In May, EPA had announced the availability of $500 million, but given overwhelming demand from school districts across the country, including in low-income communities, Tribal nations and territories, EPA is nearly doubling the amount of funding that will be awarded to $965 million.

      EPA will move swiftly to review applications submitted and expects to issue a slate of awards next month. 


TCEQ TERP Grant Programs and Opening Dates

FY 2022 – 2023

Diesel Emissions Reduction Incentive Grants (ERIG)
Texas Natural Gas Vehicle Grants Program (TNGVGP)
Seaport & Rail Yard Areas Emissions Reduction Program (SPRY)
Texas Clean Fleet Program (TCFP)
Light-Duty Motor Vehicle Purchase or Lease Incentive Program (LDPLIP)
Rebate Grants Program
Texas Clean School Bus Program (TCSB)
Alternative Fueling Facilities Program (AFFP)
New Technology Implementation Grant (NTIG)
Governmental Alternative Fuel Fleet Grant Program (GAFF)

Light-Duty Motor Vehicle Purchase or Lease Incentive Program

TCEQ is now accepting applications for CNG and Propane vehicles only under the Light-Duty Motor Vehicle Purchase or Lease Incentive Program.  (They are no longer accepting applications for hydrogen fuel cell or electric vehicles.) Applications will be accepted and awarded on a first-come, first-served basis. Unless the application period is suspended by TCEQ prior to the deadline, applications must be received on the premises of the TCEQ no later than 5:00 p.m., Central Time, January 7, 2023. Only vehicles purchased on or after September 1, 2021 from a dealer licensed to sell or lease vehicles in Texas are eligible.

Texas Clean School Bus Grants

TCEQ is now accepting applications under the Texas Clean School Bus Program (TCSB) Program. Applications will be accepted and awarded on a first-come, first-served basis. Unless the application period is suspended by TCEQ prior to the deadline, applications must be received at TCEQ no later than 5:00 p.m., Central Time, October 20, 2022.  

Electric Forklifts and Port Cargo Handling Equipment: Opening Soon
Electric Airport Ground Support Equipment: Opening Soon


Fleet Manager Working Group: Best Charging Practices

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EV Power Pods: Your Resilient Charging Solution

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