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Apply Now, Buy Later Propane Vehicle Grants Available

In Texas, there are over $13 million dollars in non-competitive grants from the Texas Commission on Environmental Quality (TCEQ) to replace MY 2009 or older gasoline and diesel vehicles with new low emission propane vehicles. Don't be fooled by the name; the program does, in fact, allow for the purchase of propane vehicles. The program is ending soon and Texas fleets planning on purchasing new propane vehicles in the near future are encouraged to reserve funds.

What types of vehicles are eligible for this grant? The grant is perfect for fleets with bobtails, step vans, box trucks, & school buses. The GVWR of the vehicle must be anything over 8,501 lbs. so medium duty to heavy duty can apply.

A sales quote will be required to reserve funds and apply. Model year applied for and model year purchased can change as long as the emissions are the same or better.

Are you in an eligible area? The vehicle must operate 75 % of the time in Texas Clean Transportation Zone. The zone includes the following counties: Aransas, Atascosa, Austin, Bastrop, Bee, Bell, Bexar, Brazoria, Brazos, Burleson, Caldwell, Calhoun, Chambers, Collin, Colorado, Comal, Dallas, Denton, DeWitt, Duval, El Paso, Ellis, Falls, Fayette, Fort Bend, Freestone, Frio, Galveston, Goliad, Gonzales, Gregg, Grimes, Guadalupe, Hardin, Harris, Harrison, Hays, Henderson, Hill, Hood, Hunt, Jackson, Jefferson, Jim Wells, Johnson, Karnes, Kaufman, La Salle, Lavaca, Lee, Leon, Liberty, Limestone, Live Oak, Madison, Matagorda, Medina, McLennan, McMullen, Milam, Montgomery, Navarro, Nueces, Orange, Parker, Refugio, Robertson, Rockwall, Rusk, San Patricio, Smith, Tarrant, Travis, Upshur, Victoria, Walker, Waller, Washington, Webb, Wharton, Williamson, Wilson, and Wise.

How much can I get for my vehicle or bus?

The older and higher emitting the old vehicle or bus and the higher the GVWR, the bigger the payout.

Some real grant amounts from this program are disclosed below:

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

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

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

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

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

  • $739,434.00 to replace 24 diesel school buses with new cleaner-burning propane-powered school buses

Other additional items of note

  • The old vehicle or bus you are replacing must run. You will need a mechanic to certify that is operational.

  • Replacement and destruction of the old vehicle or bus are required only after the grant is approved.

  • The new vehicle or bus must be dedicated (meaning only run-on propane)

  • 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 have run on either gasoline or diesel

  • A new vehicle or bus purchase is not required until the grant is approved by the TCEQ.

  • 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 the COVID pandemic (copies of vehicle registration are required).

The Propane Council of Texas, a non-profit educational & marketing foundation offers complimentary grant assistance including answering fleet FAQ's on the grant, providing grant award estimates on how much you could receive, and even help to complete the grant paperwork.

Learn more about this program at or contact the Propane Council of Texas today at or by phone at (800)325-7427 for help submitting an application.

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