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

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.

Texas Clean Fleet Program (TCFP)

TCFP provides incentives to owners of large fleets in Texas to replace diesel-powered vehicles with alternative fuel vehicles like propane. An entity must have a fleet of 75 or more vehicles that are registered in Texas and be replacing a minimum of 10 vehicles for replacement in an application. Historically, propane fleets like school districts have been awarded this competitive grant. Eligible fleets must operate 25% of the time in the Clean Transportation Zone, a group of 84 counties with bad or borderline air quality.

The deadline is September 16, 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

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

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. 

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 opened May 2022 and closes on August 19, 2022.

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. The deadline is July 12, 2022.

Need grant help or have questions? Contact us

Please contact the Council at (800) 325-7427 or email