Up to $7,500 Available Per Vehicle from the Propane Council of Texas

The Propane Council of Texas has a Propane Vehicle Incentive Program. This program is available to all regions of Texas.

The Council offers up to $7,500 per propane vehicle or propane conversion to cover the incremental cost to upgrade to propane for private and public fleets with $20,000 lifetime cap. (Excludes propane marketers)

  • No GVWR requirements
  • No replacement or no destruction required
  • EPA or CARB certificate required to reserve or apply for funds
  • Conversion can be done any time before 40,000 miles.

Funding is limited and is available first come, first serve or until December 31, 2019, whichever comes first. If you have interested fleets, have them act now.

Program expires in 2019.

Funds can be reserved with valid EPA or CARB certification and sales order for the propane vehicle or conversion kit.

Learn more at https://www.propanecounciloftexas.org/vehicleincentives

Now Accepting Grant Applications: Light-Duty Motor Vehicle Purchase or Lease Incentive Program

The Texas Commission on Environmental Quality (TCEQ) Texas Emissions Reduction Plan (TERP) will start accepting applications for the Light-Duty Motor Vehicle Purchase or Lease Incentive Program (LDPLIP) on September 3, 2019. Rebates are available statewide for eligible light-duty motor vehicles purchased or leased in Texas on or after September 1, 2019.

  • Rebates of up to $5,000 are available for up to 1,000 eligible compressed natural gas (CNG) and liquified petroleum gas (LPG or propane) vehicles.

  • Rebates of up to $2,500 are available for up to 2,000 eligible electric drive (plug-in or plug-in hybrid) or hydrogen fuel cell vehicles.

Applications will be accepted and considered on a first-come, first-served basis until all available rebates have been awarded. Applications will not be accepted after 5:00 p.m. on January 7, 2021. Application forms will be available on the TERP web site: http://www.terpgrants.org.

Thank you for your continued interest in the TERP program. Please feel free to contact us toll-free at 800-919-TERP (8377) or by email at terp@tceq.texas.gov with any questions.

Stakeholder Meeting to Solicit Comments on the Implementation and Administration of the Governmental Alternative Fuel Fleet Grant Program

The Governmental Alternative Fuel Fleet (GAFF) Grant Program is established under Texas Health and Safety Code, Chapter 395, to be administered by the Texas Commission on Environmental Quality (TCEQ or commission). The GAFF Grant Program is one of several incentive programs under the Texas Emissions Reduction Plan (TERP).

The GAFF Grant Program will provide grants to assist eligible applicants in purchasing or leasing new motor vehicles that operate primarily on compressed natural gas, liquefied natural gas, liquefied petroleum gas, hydrogen fuel cells, or electricity, including electricity to power fully electric motor vehicles and plug-in hybrid motor vehicles. The GAFF Grant Program will also provide grants to assist eligible applicants in the installation of refueling infrastructure for grant funded vehicles.

Eligible applicants include:

  • a state agency or political subdivision that operates a fleet of more than 15 motor vehicles, excluding motor vehicles that are owned and operated by a private company or other third party under a contract with the entity; and
  • a mass transit or school transportation provider or other public entity established to provide public or school transportation services.

The TCEQ will conduct a stakeholder meeting to solicit informal comments on the implementation and administration of the GAFF Grant Program on Wednesday, September 4, 2019, at 1:30 p.m., at the commission’s central office located at 12100 Park 35 Circle, Building E, Room 201S, Austin, Texas.

Written comments may be submitted to Ron Hieser, MC 204, Implementation Grants Section, Texas Commission on Environmental Quality, P.O. Box 13087, Austin, Texas 78711-3087, or faxed to (512) 239-0077. Electronic comments may be submitted to terp@tceq.texas.gov. Comments must be received by the TCEQ no later than September 30, 2019. Please note that this is an opportunity to provide informal comments to staff. While staff will review all comments received, the TCEQ will not be formally responding to any informal comments.

For additional information, please contact Ron Hieser at (512) 239-0244, or toll free at (800) 919-TERP (8377).

Texas Natural Gas Vehicles Grants and Opening Dates

Below is an overview of major funding opportunities for natural gas vehicles in Texas. For more detailed information on the incentives, click here or contact Heather Ball at 512-484-8535 or heather@txng.org.

Emissions Reduction Incentive Grants: Open Summer 2020 for Heavy-duty on-road and non-road; locomotives, marine vessels, stationary equipment. Budget: $60,332,490.

Texas Clean School Bus Program: Open End of 2019 for School Bus Replacement or Diesel Particulate Emission Capture. Default grant amounts. Budget: $6,189,590.

Alternative Fueling Facilities Program: Open Spring 2020. Max of $400,000 for CNG or LNG; $600,000 if combined. Max $600,000 for other alt fuels. Budget: $12 million.

Governmental Alternative Fuel Fleet Program: Open Date TBD. Budget: $6 million.

Texas Clean Fleet Program: Open Winter 2020 for Up to 80% of total cost of heavy or light-duty alt fuel vehicle. Replacement of Diesel and Gasoline Vehicles greater than 8,500 GVWR; Default grant amounts based on annual mileage, GVWR and CNG/LNG or Propane fuel system capacity. Budget: $7,736,986.

Texas Natural Gas Vehicle Grant Program: Open End of 2019 for Replacement of Diesel and Gasoline Vehicles greater than 8,501 GVWR; Default grant amounts based on annual mileage, GVWR and CNG/LNG.Propane fuel system capacity. Up to 90% of cost of dedicated natural gas or propane medium or heavy-duty vehicle. Includes repowers. Budget: $15,473,974.

Light-Duty Motor Vehicle Purchase or Lease Incentive: Open until Jan.7, 2021 for $5,000 per vehicle for new light-duty (less than 10,000 lbs. GVWR) natural gas or propane vehicles; $2,500 for electric vehicles. Budget: $7,736,988.

New Technology Implementation For Facilities and Stationary Sources: Open 2020 to Offset the incremental cost of emissions reductions of air pollutants from facilities and other stationary sources in Texas. Budget: $9,284,384.

Seaport and Rail Yard Areas Emissions Reduction Program: Open 2020 for Replacement of Older vehicle, which must have operated in a seaport or rail yard for at least two years or 200 visits per year prior to receiving the grant. Includes trucks and non-road yard trucks. Budget: $9,284,384.

Texas Volkswagen Environmental Mitigation Program: Open Now. The TCEQ is now accepting applications for the first round of funding under the TxVEMP with more than $58 million for projects that replace or repower school buses, transit buses, and shuttle buses.

Clean Fleets North Texas: Open Now. Grants for Replacement of Heavy-Duty Diesel Vehicles and Equipment: 45% for Electric; 35% CARB Low NOx Engines; 25% for All Others. Budget: $2.0 million.

Houston-Galveston Area Council (HGAC) Congestion Mitigation and Air Quality (CMAQ): Open Now for On-road Vehicles and Refueling Infrastructure (parts only). Budget: $1.5 million.

Texas Gas Service Program: Open now for $2,000 rebate for the purchase of a qualified NGV or $3,000 for the conversion of a gasoline powered vehicle to operate on natural gas.

TXNG thanks Windy Johnson, Texas Conference of Urban Counties, and Joe Walton, Texas Commission on Environmental Quality, for their assistance in compiling this information. Click here for a schedule of upcoming TERP workshops.