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.