TCEQ Offers Up to $5K Grants for Alternative Fuel Vehicles

SECAUCUS,NJ (DTN) — The Texas Commission on Environmental Quality (TCEQ) on Tuesday (10/14) launched a new funding cycle for a grant program aimed at encouraging Texans to purchase or lease new light-duty alternative fuel vehicles.

The grants — on a first-come, first-served basis – offer $5,000 for new compressed natural gas and liquefied petroleum gas vehicles. There will also be $2,500 for electric drive cars — featuring both plug-in and plug-in hybrid models — and hydrogen fuel cell-powered vehicles.

The TCEQ said it has capped the total number of grants at 1,000 for CNG/LPG vehicles and 2,000 for electric/hydrogen vehicles.

The incentives seek to reduce tailpipe emissions under the Light-Duty Motor Vehicle Purchase, or Lease Incentive Program, and are offered to individuals, corporations and government entities.

The program is structured to comply with environmental mandates while being strategically aligned with Texas’ vast natural gas and propane industries.

To qualify, vehicles must be new, light-duty (Gross Vehicle Weight Rating lbs.), and be registered and operated in Texas for at least one year.

Applications are accepted only after the vehicle has been purchased or leased on or after September 1, 2025, and taken into possession. The application window is open until March 6, 2026, or until all funds are depleted.