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 when tied to a vehicle project and suitable fueling is not available within five miles. Eligible alternative fuels include natural gas, propane, hydrogen, and electricity. For electric vehicles and plug in hybrid electric vehicles, the vehicle must achieve at least 75 mpg equivalent or a combined range of 75 miles. 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. The vehicle lease or service agreement must be for at least three years.

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, and vehicle grants may not exceed the incremental cost. TCEQ will also establish standardized fueling equipment grant amounts, and no more than 10%of annual awards may fund fueling projects.

(Reference Texas Statutes, Health and Safety Code 395.001 – 395.015)