Texas Alt Fuel Vehicle (AFV) Grants Available. Get Help with Your Submissions

There are many grants available both nationally, on the state level, and regionally. The Propane Council of Texas, a non-profit educational & marketing foundation, offers complimentary grant help, including answering fleet FAQ’s on the grant, providing grant award estimates, and even help to complete the grant paperwork.

One grant that the Council has had the most success with and help cover more costs than most other grants is the Texas Natural Gas Vehicle Grant Program (which includes PROPANE AUTOGAS) from the Texas Commission on Environmental Quality (TCEQ) Texas Emission Reduction Plan (TERP). Yes! Propane qualifies for this one despite the grant name.

There is still $13 MILLION LEFT FOR THIS NON-COMPETITIVE GRANT ROUND. The Grant round ends on February 26, 2021.

The non-competitive grant helps fund getting older, higher emissions vehicles off Texas roads (at MY 2009 or older), and replacing them with new low emission propane and natural gas vehicles.

Who can apply? Business fleets, local and states government fleets, and school districts operating in the Clean Transportation Zone in Texas.

Real World Sample Grant Awards

 $9,563 to replace MY 2006 gasoline delivery vehicle with 1 new propane delivery vehicle

 $24,383 to replace MY 2004 diesel delivery vehicle with 1 new propane delivery vehicle

 $43,036 to replace MY 2002 gasoline delivery vehicle with 1 new propane delivery vehicle

 $85,402 to replace MY 2002 and 2004 diesel delivery vehicle for 2 propane delivery vehicles

 $130,107 to replace MY range 1992-2002 gasoline and diesel delivery vehicles for new 3 propane delivery vehicles

 $250,131 to replace MY range 1995-2006 gasoline and diesel delivery vehicles for 6 propane delivery vehicles

 $739,434.00 to replace 24 school buses for Leander Independent School District with propane school buses

 $730,228.00 for Georgetown Independent School District to replace 23 diesel school buses for 23 propane school buses        

Key Takeaways

  • Funding is first come, first serve. Simply comply and apply.
  • The vehicle must operate 75 % of the time in the Texas Clean Transportation Zone.
  • GVWR of the vehicle under this particular program has to be over 8,501 lbs, so medium duty to heavy duty can apply
  • GVWR range must be like for like. Basically, vehicles you are swapping out must be in the same weight class.
  • The old vehicle or bus you are replacing must be MY 2009 or older.
  • The old vehicle or bus you are replacing must have run on either gasoline or diesel.
  • The new vehicle or bus must be a dedicated (meaning only run on propane)
  • A new vehicle or bus purchase is not required until the TCEQ approves the grant. You usually have up to 18 months to make a purchase once approved.
  • The older the vehicle or bus, and the higher the emitting vehicle or bus you replace, the higher the GVWR, the bigger the payout.
  • There cannot be a lapse in the old vehicle registration for more than 30 days in 2 years/24 months from the date of submission unless lapsed during COVID pandemic (copies of vehicle registration are required).
  • The old vehicle or bus you are replacing must run. You will need a mechanic to certify that it is operational.
  • Replacement and destruction of the old vehicle or bus are required only after the grant is approved.
  • Fleets can apply at any time. Again, the grant ends on February 26, 2021.

Contact us. Reach out to the Propane Council of Texas today at info@propanecounciloftexas.org or by phone at (800)325-7427 if you think you may qualify for this grant and want to find out how much you can get.

Don’t qualify for this one or don’t have a vehicle to replace but still want to switch to propane? There is a statewide incentive program, no matter where you operate in Texas to purchase or convert Light Duty Propane Vehicles. Click here for more information.