Electricity Laws and Incentives in Texas
The list below contains summaries of all Texas laws and incentives related to electricity.
State Incentives
Alternative Fuel Infrastructure Grants
The Texas Commission on Environmental Quality (TCEQ) administers the Alternative Fueling Facilities Program (AFFP) as part of the Texas Emissions Reduction Plan (TERP). The AFFP offers grants for the construction or reconstruction of an alternative fueling facility for natural gas, hydrogen, biodiesel, propane, electricity, and methanol. Priority will be given to public entities. For more information, including application periods, see the TCEQ TERP website.
(Reference Texas Statutes, Health and Safety Code 386.153 and 393.001-393.007)
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 placing 20 or more qualifying vehicles in service for use in the 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)
Electric Vehicle (EV) and Natural Gas Vehicle (NGV) Weight Exemption
EVs and NGVs may exceed the state’s gross vehicle weight limits by up to 2,000 pounds (lbs.). The EV or NGV maximum gross vehicle weight may not exceed 82,000 lbs.
(Reference Texas Statutes, Transportation Code 621.101 and Senate Bill 1364, 2023)
Electric Vehicle Emissions Inspection Exemption
Beginning September 1, 2023, vehicles powered exclusively by electricity are exempt from state motor vehicle emissions inspections.
(Reference Senate Bill 1364, 2023)
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)
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)
Seaport and Rail Yard Emissions Reduction Grants
The Texas Commission on Environmental Quality (TCEQ) administers the Seaport and Rail Yard Areas Emissions Reduction (SPRY) Program as part of the Texas Emissions Reduction Plan (TERP). The SPRY program provides grants to eligible entities to replace, repower, or purchase drayage and cargo handling equipment. Eligible projects include heavy-duty on-road vehicles with a gross vehicle weight rating over 26,000 pounds, off-road yard trucks, and other cargo handling equipment. Eligible engines or motors must be powered by electricity or meet federal emissions standards and reduce nitrogen oxide emissions by at least 25% compared to the engine being replaced. For more information, including current application periods, see the TCEQ TERP website.
(Reference Texas Statutes, Health and Safety Code 386.181-386.183)
Texas' National Electric Vehicle Infrastructure (NEVI) Planning
The U.S. Department of Transportation’s (DOT) NEVI Formula Program requires the Texas Department of Transportation (TxDOT) to submit an annual EV Infrastructure Deployment Plan (Plan) to the DOT and U.S. Department of Energy (DOE) Joint Office of Energy and Transportation (Joint Office), describing how the state intends to distribute NEVI funds. The submitted plans must be established according to NEVI guidance.
For more information about Texas’ NEVI planning process, see the TxDOT Electric Vehicle Infrastructure Plan website. To review Texas’ NEVI plan, see the Joint Office State Plans for EV Charging website.
Laws and Regulations
Alternative Fuel Use and Vehicle Acquisition Requirements
State agency fleets with more than 15 vehicles, excluding emergency and law enforcement vehicles, may not purchase or lease a motor vehicle unless the vehicle uses natural gas, propane, ethanol or fuel blends of at least 85% ethanol (E85), methanol or fuel blends of at least 85% methanol (M85), biodiesel or fuel blends of at least 20% biodiesel (B20), or electricity (including plug-in hybrid electric vehicles). Waivers may be granted for fleets if the fleet will operate primarily in areas where neither the state agency or a supplier can reasonably be expected to establish adequate fueling infrastructure for these fuels or the agency is unable to obtain equipment or fueling facilities necessary to operate alternative fuel vehicles at a cost that is no greater than the net costs of using conventional fuels.
Covered state agency fleets must consist of at least 50% of vehicles that are able to operate on alternative fuels and use these fuels at least 80% of the time the vehicles are driven. Covered state agencies may meet these requirements through the purchase of new vehicles or the conversion of existing vehicles. State agencies that purchase passenger vehicles or other ground transportation vehicles for general use must ensure that at least 25% of the vehicles purchased during any state fiscal biennium, other than exempted vehicles, meet or exceed federal Tier II, Bin 3 emissions standards.
(Reference Texas Statutes, Government Code 2158.004-2158.009)
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. For the purpose of this program, AFVs include electric, natural gas, propane, hydrogen fuel cell, ethanol, methanol, and hybrid vehicles.
(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)
Electric Vehicle (EV) Charging Station Inspection Regulations
By December 1, 2024, the Texas Commission of Licensing and Regulation (Commission) must adopt rules for EV charging station inspections. The Commission is authorized to set fees to cover the cost of administering an inspection program and establish exemptions.
The Texas Department of Licensing and Regulation (TDLR) is authorized to periodically conduct an inspection of EV charging station, including for complaints, to verify compliance with requirements and standards. TDLR must establish methods by which consumers can provide complaints regarding EV charging station.
(Reference Senate Bill 1001, 2023)
Electric Vehicle (EV) Registration Fee
Beginning September 1, 2023, in addition to standard vehicle registration fees, new EV owners must pay a first-time registration fee of $400. After the first-time registration fee, the fee for EV registration renewal is $200. Fees contribute to the State Highway Fund.
(Reference Texas Senate Bill 505, 2023 and Texas Statutes, Transportation Code 502.198(a))
Public Utility Definition
Electric vehicle charging service providers are not regulated as a public utility in areas of customer choice, where utility customers have the option to choose an alternate electricity supplier. The Texas Public Utilities Commission is authorized to exempt electric vehicle supply equipment from being regulated as a public utility.
(Reference Texas Utilities Code 37.001)
Public Utility Electric Vehicle (EV) Charging Station Policy Design Requirements
Public electric utilities must develop and implement competitively neutral electricity policies and tariffs to encourage competitive private sector investment in the deployment of public EV charging stations. Entities that are not electric utilities may enter into an agreement with a utility to own or operate EV charging stations.
The Public Utility Commission of Texas may not authorize electric utilities to recover costs for the installation, equipment, operation, and maintenance of EV charging stations.
(Reference Senate Bill 1002, 2023)
Publicly Funded Electric Vehicle (EV) Charging Station Connector Standards
By December 1, 2024, the Texas Department of Licensing and Regulation (TDLR), in consultation with the Texas Department of Transportation, must adopt standards for EV charging stations to ensure that the connectors or plugs are widely compatible with as many EVs as practicable.
After December 1, 2024, publicly available EV charging stations funded through public grants or state rebate programs must meet the standards adopted by TDLR.
(Reference Senate Bill 1732, 2023)
Utility / Private Incentives
Commercial Electric Vehicle (EV) Charging Station Rebate – Austin Energy
Austin Energy offers rebates to commercial customers for the purchase and installation of Level 2 or direct current fast EV charging stations at commercial properties. For more information, including funding amounts and eligibility requirements, see the Austin Energy Commercial Charging website.
Electric Equipment and Electric Vehicle (EV) Charging Station Incentive – Entergy
Entergy offers commercial customers rebates for the purchase of select EVs and Level 2 EV charging stations. Rebates are available in the following amounts:
| Technology | Rebate Amounts |
|---|---|
| Electric Forklifts | Up to $500 |
| Electric Drayage Trucks | $1,500 |
| Electric Truck Refrigeration | $1,000 |
| Electric Cranes | Up to $25,000 |
| Electric Scissor and Boom Lift | $100 |
| Light-Duty Electric Burden Carrier | $100 |
| Electric Walk-Behind Floor Scrubber | $100 |
| Electric Riding Floor Scrubber | $150 |
| Electric Golf Cart | $150 |
| Level 2 EV Charging Station | $250 |
| Direct Current Fast Charging (DCFC) Station | Up to $1,500 |
Other technologies may be eligible for this incentive on a case-by-case basis. For more information, including eligible technologies, see the Entergy eTech website.
Electric Vehicle (EV) Charging Network Pilot Program – CPS Energy
CPS offers residential customers that own an EV access to the FlexEV Public Charging program network for an annual fee of $96 per EV. For more information, see the CPS Energy EVs website.
Electric Vehicle (EV) Charging Station Rate Incentives – CPS Energy
The CPS Energy FlexEV Smart Rewards program offers a $250 bill credit to residential customers who own a smart Level 2 EV charging station.
The CPS Energy FlexEV Off-Peak Rewards program offers residential customers a $125 bill credit for charging during off-peak hours. Customers may earn an additional $10 bill credit per month if they limit charging during peak hours to twice a month. For more information, see the CPS EV Charing Solutions website.
Electric Vehicle (EV) Charging Station Rebate – Southwestern Electric Power Company (SWEPCO)
SWEPCO offers residential customers a $250 rebate for the installation of an ENERGY STAR-certified Level 2 EV charging station. Rebates are available on a first-come, first-served basis. Additional terms and conditions apply. For more information, including how to apply, see the SWEPCO Level 2 Home EV Charging Station Rebate Program website.
Electric Vehicle (EV) Charging Station Rebate – United Cooperative Services (UCS)
UCS offers residential customers a rebate of 50% of the cost to install a Level 2 EV charging station, up to $500. Eligible customers must agree to charge EVs during off-peak hours. For more information, including eligibility and how to apply, see the UCS Energy Rebate Programs website.
Electric Vehicle (EV) Infrastructure Support
Texas utilities joined the National Electric Highway Coalition (NEHC), committing to create a network of direct current fast charging (DCFC) stations connecting major highway systems from the Atlantic Coast to the Pacific of the United States. NEHC utility members agree to ensure efficient and effective fast charging deployment plans that enable long distance EV travel, avoiding duplication among coalition utilities, and complement existing corridor DCFC sites. For more information, including a list of participating utilities and states, see the NEHC website.
Fleet Electrification Assessment – American Electric Power (AEP) Texas
AEP Texas offers advisory services to fleets to analyze vehicle electrification opportunities. Eligible applicants must be AEP Texas fleet customers that own and operate trucks, forklifts, buses, or passenger vehicles. For more information, see the AEP Texas Electric Vehicles for Your Business website.
Residential Electric Vehicle (EV) Charging Station Rebate – Austin Energy
Austin Energy offers residential customers who own an EV a rebate of 50% of the cost to purchase and install a qualified Level 2 EV charging station, up to $1,200. For more information, including eligibility requirements, see the Austin Energy Home Charging website.
More Laws and Incentives
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