Propane Vehicle Incentives & Grants

There are numerous state and federal grants and incentives cyclically throughout the year. The good news is we have a complimentary grant expert that can help you find the grant or incentive that matches best. Our grant expert will walk you through the grant as well as help you compile all the documents you need to file.

Active Grants & Incentives

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Alternative Fueling Facilities Program (AFFP)

TCEQ offers grants to construct or expand fueling stations that provide propane autogas and other alternative fuels within the Texas Clean Transportation Zone.

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Light‑Duty Motor Vehicle Purchase or Lease Incentive Program 

The Texas Commission on Environmental Quality (TCEQ) offers a $5,000 incentive statewide to purchase or lease an eligible, new propane light‑duty vehicle under 10,000 lbs GVWR. The vehicle must be purchased and converted within the first 500 miles after-sale in Texas.

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 FTA's Low or No Emission Vehicle Deployment Program (LoNo)

The FTA's Low or No Emission Vehicle Deployment Program (LoNo) is now open. There is $1.1 billion available, an increase in funding from previous solicitations. Funding may cover up to 85% of the vehicle cost, expansion projects do not need to scrap vehicles if applicants can demonstrate the need for expansion, but standard replacement projects must scrap existing equipment that has met its useful life. Infrastructure is also eligible and funding may cover up to 90% of the infrastructure improvement costs. Applications are due by May 31, 2022.

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 FTA Bus & Bus Facilities Program

Similar to the LoNo Program, the FTA's Bus & Bus Facilities Program is now open and has $372,696,244 in funding available. The two programs share a lot of similarities and the key difference is that the LoNo Program focuses on zero and near zero emissions technologies, whereas the Bus and Bus Facilities Program does not. The funding will cover up to 85% of the vehicle cost and up to 90% of the infrastructure cost. Bus and Bus Facilities does have a maximum applicant funding at 10% of the total solicitation. Applications are due by May 31, 2022.

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Seaport & Rail Yard Areas Emissions Reduction Program 

TCEQ offers grants statewide to replace older drayage trucks and equipment operating at eligible seaports and rail yards. The deadline to apply is November 22, 2022.

Coming Soon

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EPA Clean School Bus Program 

EPA’s Clean School Bus Program provides $5 billion over the next five years to replace school buses with low- and zero-emission school buses. The first funding opportunity under this program will be the 2022 Clean School Bus Rebates. EPA will offer $500 million for zero-emission and clean school bus rebates.  2022 program opens on April 27, 2022.

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Texas Natural Gas Vehicle Grant Program (includes propane)

In 2022, TCEQ will offer grants to replace old diesel vehicles with the new medium-duty to heavy-duty cleaner-burning propane autogas vehicles within the Clean Transportation Zone. 

Closed / Funding Exhausted

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Texas Clean School Bus Program (TCSB)

TCEQ offers grants statewide to offset the cost of projects that reduce emissions from diesel exhaust. Eligible projects include replacing diesel‑fueled school buses with school buses powered by cleaner-burning autogas. 

Need grant help or have questions? Contact us

Please contact the Council at (800) 325-7427 or email info@propanecounciloftexas.org