Expired, Repealed, and Archived Texas Incentives and Laws
The following is a list of expired, repealed, and archived incentives, laws, regulations, funding opportunities, or other initiatives related to alternative fuels and vehicles, advanced technologies, or air quality.
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, or electricity. For more information, see the TCEQ Texas Emissions Reduction Plan TERP website.
(Reference Texas Health and Safety Code 386.104)
Medium- and Heavy-Duty Vehicle and Infrastructure Grant Program
The Texas Commission on Environmental Quality (TCEQ) provides funding for eligible medium- and heavy-duty on-road alternative fuel vehicles or engine repowers and replacements, as well as for associated electric vehicle supply equipment (EVSE) and hydrogen fueling infrastructure. Funding is also available for Level 2 EVSE located at public, workplace, or multi-unit dwellings. Both government and non-government entities that own and operate diesel fleets and equipment are eligible for funding. This grant program is funded by Texas’ portion of the Volkswagen Environmental Mitigation Trust. For more information, including funding availability and how to apply, see the TCEQ Volkswagen Environmental Mitigation Program website.
Alternative Fuel Vehicle (AFV) Fee Study
The Texas Department of Motor Vehicles (TxDMV) in collaboration with the Texas Commission on Environmental Quality shall conduct a study on AFV fees. The study will examine the impact of the AFV industry on Texas, the impact of lost motor fuel tax revenues on state highways, fee collection options, and the feasibility of establishing an AFV fee. TxDMV submitted the study to the governor and state legislature in December 2020. (Reference Senate Bill 604, 2019)
Propane Vehicle and Equipment Incentive - Propane Council of Texas
Propane vehicle incentives are available to private, non-profit, local government, state, and school white fleets. New dedicated propane vehicles and aftermarket conversions are eligible for an incentive equal to the incremental cost, up to $7,500. Each fleet is limited to $20,000 in total incentive awards.
Additionally, a $1,000 incentive is available for each new or converted propane commercial mower operated by public and private entities (excluding state agencies). Mower applicants are limited to seven incentive awards.
All conversion systems for vehicles and mowers must be certified through the U.S. Environmental Protection Agency or the California Air Resources Board. All vehicles and mowers must be registered and operated in Texas. Additional terms and conditions apply. For more information, see the Propane Council of Texas website.
Clean Vehicle Replacement Vouchers
The Texas Commission on Environmental Quality administers the AirCheckTexas Drive a Clean Machine program, which provides vehicle replacement assistance for qualified individuals owning vehicles registered in participating counties. Vouchers in the amount of $3,500 are available toward the purchase of a hybrid electric, battery electric, or natural gas vehicle that is up to three model years old. For more information about participating counties, qualified vehicles, program requirements, and how to apply in specific areas, see the AirCheckTexas Drive a Clean Machine website. (Reference Texas Statutes, Health and Safety Code 382.209-382.220)
Plug-In Electric Vehicle (PEV) Charging Rate Incentive - Austin Energy
Austin Energy offers a pilot time-of-use (TOU) charging rate to residential customers with PEVs and electric vehicle supply equipment. For more information, see the Austin Energy EV360 TOU Rate Pilot Program website.
Renewable Fuel Promotion
The Texas Bioenergy Policy Council and the Texas Bioenergy Research Committee were established to promote the goal of making biofuels a significant part of the energy industry in Texas by January 1, 2019. The Policy Council is tasked with the following:
- Provide a vision for unifying the state's agricultural, energy, and research strengths in a successful launch of a cellulosic biofuel and bioenergy industry;
- Foster development of cellulosic and bio-based fuels;
- Pursue the creation of a next-generation biofuels energy research program at a university in the state;
- Pursue federal and other funding to position the state as a bioenergy leader;
- Study the feasibility and economic development effect of a blending requirement for biodiesel or cellulosic fuels;
- Pursue the development and use of thermochemical process technologies to produce alternative chemical feedstocks; and
- Study the feasibility and economic development of the requirements for renewable natural gas.
Alternative Fueling 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). AFFP provides grants for 50% of eligible costs, up to $600,000, to construct, reconstruct, or acquire a facility to store, compress, or dispense alternative fuels in the Clean Transportation Zone. Qualified alternative fuels include biodiesel, electricity, natural gas, hydrogen, propane, and fuel mixtures containing at least 85% methanol (M85). TCEQ will give priority to public stations. Additional terms and conditions apply. For more information, see the TCEQ TERP website. (Reference Senate Bill 1731, 2017, Texas Statutes, Health and Safety Code 386 and 393, and Texas Administrative Code 114.660-114.662)
Authorization of Alternative Fuel Vehicle Rebates
The Texas Commission on Environmental Quality (TCEQ) will develop a state rebate incentive for the purchase or lease of new light-duty vehicles powered by natural gas, propane, hydrogen, or electricity. Natural gas and propane vehicles are eligible for a rebate of $5,000 if their dedicated or bi-fuel system that was installed prior to final sale or installed within the first 500 miles of operation. The rebate will be available for the first 1,000 applicants for each state fiscal biennium.
Electric drive vehicles powered by a battery or hydrogen fuel cell will be eligible for a rebate of $2,500. The rebate will be available for the first 2,000 applications for each state fiscal biennium.
One rebate will be available per eligible vehicle. Manufacturers of vehicles or fueling systems must provide TCEQ with a list of new eligible vehicles that the manufacturer intends to sell in the state that meet rebate requirements. TCEQ will publish an updated list of vehicle models eligible for the incentives by August 1, annually.
(Reference Senate Bill 1731, 2017)
Natural Gas Vehicle (NGV) Production Support and Procurement
In 2012, Texas joined Arkansas, Colorado, Kentucky, Louisiana, Maine, Mississippi, New Mexico, Ohio, Oklahoma, Pennsylvania, Tennessee, Utah, Virginia, West Virginia, and Wyoming in signing a memorandum of understanding (MOU) to stimulate the production and demand for original equipment manufacturer (OEM) NGVs. The MOU aims to encourage OEMs to offer functional and affordable light- and medium-duty NGVs, aggregate state vehicle procurement through a joint request for proposals (RFP), boost private investment in natural gas fueling infrastructure, and encourage greater coordination between state and local agencies. In 2012, National Association of State Procurement Officials coordinated the solicitation of a joint RFP, which the Oklahoma Department of Central Services (DCS) issued on behalf of the MOU signatories and additional states. As a result, state fleets have access to more affordable NGVs through dealerships now included in state vehicle purchasing bids. For more information, including awarded vehicles by state and vehicle purchase information for state fleets, see the DCS Statewide Contract for NGVs solicitation page.
The following was repealed by House Bill 1905, 2015: Motor fuel taxes for propane used in vehicles are collected through an annual sticker permit fee based on the vehicles' registered gross vehicle weight rating and the number of miles driven the previous year. Exemptions apply for transit and interstate vehicles. (Reference Texas Statutes, Tax Code 162.305)
Alternative Fuel Vehicle (AFV) Rebates
Qualified AFVs purchased or leased from a dealership or leasing company authorized to sell or lease new vehicles in Texas may be eligible for a rebate of up to $2,500 to assist with the incremental cost. For the purpose of this incentive, AFVs include compressed natural gas (CNG) or liquefied petroleum gas (propane) vehicles with a gross vehicle weight rating (GVWR) of 9,600 pounds (lbs.) or less, as well as electric and plug-in hybrid electric vehicles with a GVWR of 8,500 lbs. or less. The rebate is available until June 26, 2015, or until all funding totaling $7.75 million is awarded. Rebates are limited to 2,000 electric drive vehicles and 2,000 CNG and propane vehicles. Additional terms and conditions may apply. For more information, including a list of eligible vehicles and funds available, see the Light-Duty Motor Vehicle Purchase or Lease Incentive Program website. (Reference Texas Statutes, Health and Safety Code 386.151-162 and Texas Administrative Code 114.610-114.616)
Alternative Fuel Vehicle Replacement Grants
The Railroad Commission of Texas Alternative Energy Division's (Division) Low Emissions Alternative Fuels Equipment Initiative Program offers grants to buyers who wish to replace aging medium- or heavy-duty diesel school bus or delivery vehicles with qualified propane or natural gas vehicles that meet or exceed current U.S. Environmental Protection Agency (EPA) emissions standards. The grant amount is dependent upon the calculated emissions reductions. The Division also offers incentives to buyers who wish to replace aging internal combustion forklifts with new propane or natural gas forklifts that meet or exceed 2008 EPA emissions standards. For more information, see the Low Emissions Alternative Fuels Equipment Initiative Program website.
Fueling Station Air Quality Permit Exemption
Owners and operators of equipment used exclusively to store and dispense motor fuels, including alternative fuels, into motor vehicles are automatically permitted by rule so long as their stations meet emissions limits set by the Texas Commission on Environmental Quality (TCEQ), and are therefore exempt from registering or paying for an air pollution permit. While TCEQ does not require station owners and operators to keep any records, it may request supporting information at any time. (Reference Texas Administrative Code 30.106.4 and 30.106.412)
Natural Gas Fuel Rates and Alternative Fuel Promotion
Through its Public Customer Gas Program, the Texas General Land Office (GLO) makes competitively-priced natural gas available to school districts and other state and local public entities for use in natural gas vehicles. The GLO has also established an alternative fuels program to aggressively promote the use of alternative energy sources, especially for those fuels abundant in Texas. The GLO alternative fuels program serves as a liaison between government and industry. For more information, see the GLO Natural Gas Program website.
Propane Vehicle Training
The Railroad Commission of Texas Alternative Energy Division offers free safety and maintenance training on propane vehicles, buses, and forklifts. For more information, see the Railroad Commission's Texas Alternative Fuels website.
Biodiesel Blend Standards
Biodiesel blends are considered compliant with Texas Low Emissions Diesel Fuel (TxLED) regulations if the diesel fuel is compliant with TxLED regulations and the biodiesel meets the requirements of ASTM specification D6751. Biodiesel may be added to any TxLED compliant fuel at any ratio without additional additives. Biodiesel blenders are not considered diesel fuel producers and are not subject to TxLED reporting requirements. However, blenders must maintain records of product transfer documents and make them available upon request to the Texas Commission on Environmental Quality, U.S. Environmental Protection Agency, or local air pollution authority for a minimum of two years. (Reference Texas Administrative Code 30.114.312-30.114.319)
Electric Vehicle Supply Equipment (EVSE) Incentive - ECOtality
Through the EV Project, ECOtality offers EVSE at no cost to individuals in the Dallas, Fort Worth, and Houston metropolitan areas. To be eligible for free home charging stations, individuals living within the specified areas must purchase a qualified plug-in electric vehicle (PEV). Individuals purchasing an eligible PEV should apply at the dealership at the time of vehicle purchase. The EV Project incentive program will also cover most, if not all, of the costs of EVSE installation. All participants in the EV Project incentive program must agree to anonymous data collection after installation. Additional restrictions may apply.
Alternative Fuel and Advanced Vehicle Research and Development Grants
The Texas Council on Environmental Quality administers the New Technology Research and Development (NTRD) Program, part of the Texas Emissions Reduction Plan, which provides grants for alternative fuel and advanced technology demonstration and infrastructure projects to encourage and support research, development, and commercialization of technologies that reduce pollution. Funding for this grant program was discontinued in September 2011 and no subsequent actions have been taken to reinstate funding. (Reference Texas Statutes, Health and Safety Code 387)
Heavy-Duty Natural Gas Vehicle (NGV) Grants
The Texas General Land Office administers the NGV Initiative Grant Program to encourage public-sector fleets in certain counties to increase their use of heavy-duty NGVs. Private fleets also may be eligible particularly those that operate directly under contract for government work or do other government business. The program is funded with a Texas Emissions Reduction Plan grant through the Texas Commission on Environmental Quality. A variety of vehicles, including street sweepers, forklifts, buses, and garbage trucks, are eligible for grants to help cover the cost of replacing diesel vehicles with NGVs. The program ends August 31, 2012.
Electric Vehicle Supply Equipment (EVSE) Incentive - CPS Energy
For a limited time, CPS Energy and the City of San Antonio are offering qualified CPS Energy customers a rebate of 50% of the cost of Level 2 residential EVSE. The maximum rebate amount is $1,000 for a single-family home. Rebates will be available on a first come, first served bases until the funds for the program are exhausted. A maximum of 50 rebates are available. For more information, see the CPS Energy Electric Vehicle Charger Rebates website.
Electric Vehicle Supply Equipment (EVSE) Incentive - Coulomb Technologies
Coulomb Technologies' ChargePoint America program offers EVSE at no cost to individuals or entities in the Austin metropolitan area. To be eligible for free home charging stations, individuals living within the specified area must purchase a qualified plug-in electric vehicle. Application information is available on the ChargePoint America website. In most cases, installation will be paid for by the EVSE owner; some cities, states, and utilities, however, will provide funding towards installation costs. All participants in the ChargePoint America program must agree to anonymous data collection after installation. Additional restrictions may apply.
Alternative Fuel Grant Assistance
The Texas State Energy Conservation Office researches and assists public and private entities in securing grants to encourage the use of alternative fuels, including conversion of state and local government fleets to operate on compressed natural gas, liquefied petroleum gas, hydrogen, biodiesel, and ethanol, and the use of hybrid electric vehicles.
Electric Vehicle (EV) Rebates
Central Texas Clean Cities and Austin Energy offer an EV rebate to Austin Energy customers who purchase qualifying EVs, electric scooters, or electric bicycles from approved dealers. Applicants may receive the following rebates: $500 for all-electric vehicles including neighborhood electric vehicles; $250 for all-electric scooters or motorcycles capable of achieving more than 40 miles on a single charge at street-legal speeds; $100 for all-electric scooters capable of achieving up to 20 miles on a single charge; and $150 for all-electric bicycles capable of achieving up to 20 miles on a single charge. Rebate funding is limited and valid until March 31, 2009.
Renewable Fuel Production Grants
Qualified producers may be eligible for a grant of $0.20 for each gallon of ethanol, biodiesel, or renewable diesel, or $0.20 for each MMBtu of renewable methane, produced from renewable resources. To participate, producers must pay a fee of $0.032 per gallon of liquid fuel or MMBtu of gaseous fuel produced at each registered production facility. The grant is available to registered producers for up to 18 million gallons or MMBtu per fiscal year at any one production facility. Funding for this grant program was discontinued in September 2007 and no subsequent actions have been taken to reinstate funding. (Reference Texas Statutes, Agriculture Code 16.001-16.002 and 16.005-16.006)
Alternative Fuel Vehicle (AFV) Purchase Requirements
Under the Texas Clean Fuel Fleet Program, clean-fuel vehicle acquisition requirements apply to certain mass transit, local government, and private fleets located in the state's non-attainment areas. Affected fleets are required to ensure that a certain percentage of their fleet vehicles are certified to meet the EPA's LEV standards. Fleets may use any vehicle/fuel combination that is certified by EPA standards. Beginning September 1, 2002, local governments with fleets of more than 15 vehicles and private fleets with more than 25 vehicles located in non-attainment areas are required to ensure that 70% of light-duty vehicle purchases and 50% of heavy-duty vehicle purchases meet LEV standards. Mass transit authorities are required to convert 50% of their total fleet to run on alternative fuels. Vehicles weighing over 26,000 lbs. are exempt. (Reference Texas Statutes Sections 382.131 to 382.142)
Ethanol and Biodiesel Fuel Production Grant
The Texas Economic Development and Tourism Office administers a grant program for ethanol and biodiesel fuel producers. In order to be eligible for a grant, ethanol and biodiesel fuel producers are required to register with the state and contribute $0.032 per gallon, up to 18 million gallons per producer, to a fund. Additionally, the state contributes $0.168 per gallon produced to the fund. A producer is then entitled to receive a grant of $0.20 per gallon from the fund, up until the 10th anniversary of the date production from the plant began. For each fiscal year a fuel producer may not receive a grant for more than 18 million gallons of fuel ethanol or biodiesel produced at any one registered plant, regardless of total gallons produced. This incentive expires August 31, 2005. (Reference Texas Statutes, Agriculture Code, Chapter 16)
Alternative Fuel Program Support
The Texas Energy Planning Council, facilitated by the Railroad Commission of Texas, was created in November 2003 to advise the Governor on a balanced plan to provide the energy needed to fuel Texas' future economic growth and prosperity. The final report, Texas Energy Plan 2005: Energy Security for a Bright Tomorrow, was submitted to the Governor in January 2005. The report identifies gaps between the state's energy supply and energy demand and recommends a plan to close or minimize these gaps. The Council explored ways to diversify future energy supplies via liquefied natural gas, nuclear, and clean coal technology as well as through renewable energy sources such as wind power, biomass, and fuel cells. (Reference Executive Order RP 29, 2003)