Texas Laws and Incentives

Listed below are the summaries of all current Texas laws, incentives, regulations, funding opportunities, and other initiatives related to alternative fuels and vehicles, advanced technologies, or air quality. You can go directly to summaries of:

• State Incentives (15)
• Utility / Private Incentives (57)
• Laws and Regulations (19)

State Incentives

Texas' National Electric Vehicle Infrastructure (NEVI) Planning

The U.S. Department of Transportation’s (DOT) NEVI Formula Program requires the Texas Department of Transportation (TxDOT) to submit an annual EV Infrastructure Deployment Plan (Plan) to the DOT and U.S. Department of Energy (DOE) Joint Office of Energy and Transportation (Joint Office), describing how the state intends to distribute NEVI funds. The submitted plans must be established according to NEVI guidance.

For more information about Texas’ NEVI planning process, see the TxDOT Electric Vehicle Infrastructure Plan website. To review Texas’ NEVI plan, see the Joint Office State Plans for EV Charging website.

Seaport and Rail Yard Emissions Reduction Grants

The Texas Commission on Environmental Quality (TCEQ) administers the Seaport and Rail Yard Areas Emissions Reduction (SPRY) Program as part of the Texas Emissions Reduction Plan (TERP). The SPRY program provides grants to eligible entities to replace, repower, or purchase drayage and cargo handling equipment. Eligible projects include heavy-duty on-road vehicles with a gross vehicle weight rating over 26,000 pounds, off-road yard trucks, and other cargo handling equipment. Eligible engines or motors must be powered by electricity or meet federal emissions standards and reduce nitrogen oxide emissions by at least 25% compared to the engine being replaced. For more information, including current application periods, see the TCEQ TERP website.

(Reference Texas Statutes, Health and Safety Code 386.181-386.183)

Heavy-Duty Vehicle and Equipment Grants

The Texas Commission on Environmental Quality (TCEQ) administers the Rebate Grants Program (Program) as part of the Texas Emissions Reduction Plan (TERP). The Program provides grants to eligible entities to replace or repower existing heavy-duty, diesel-powered vehicles. Replacement vehicles and engines may not be more than three years older than the calendar year purchased and must reduce nitrogen oxide emissions by at least 25% compared to the vehicle or engine being replaced. Eligible replacement on- and off-road vehicles must be powered by diesel, natural gas, propane, methanol, hydrogen, or electricity. For more information, including current application periods, see the TCEQ Texas Emissions Reduction Plan TERP website.

(Reference Texas Health and Safety Code 386.104)

Light-Duty Alternative Fuel Vehicle Rebates

The Texas Commission on Environmental Quality (TCEQ) administers the Light-Duty Motor Vehicle Purchase or Lease Incentive Program (LDPLIP) as part of the Texas Emissions Reduction Plan (TERP). LDPLIP provides grants for the purchase or lease of a new light-duty vehicle powered by compressed natural gas (CNG), propane, hydrogen, or electricity. CNG and propane vehicles, including bi-fuel vehicles, are eligible for a rebate of up to $5,000. Electric drive vehicles powered by a battery or hydrogen fuel cell, including plug-in hybrid electric vehicles with a battery capacity of at least 4 kilowatt hours, are eligible for a rebate of up to $2,500. One rebate is available per eligible vehicle. Rebates are awarded on a first-come, first-served basis. For more information, including application periods, see the TERP website.

(Reference Texas Statutes, Health and Safety Code 386.154 and Texas Administrative Code Title 30 Part 1 Chapter 114 Subchapter K Division 2 Rule 114.610-114.613)

Hydrogen Fuel Cell Electric Vehicle (FCEV) and Infrastructure Grants

The Texas Commission on Environmental Quality (TCEQ) administers the Texas Hydrogen Infrastructure, Vehicle, and Equipment (THIVE) program as part of the Texas Emissions Reduction Plan (TERP). The THIVE program provides grants to individuals, state and local governments, and private entities for the repower or replacement of eligible vehicles with FCEVs. Eligible projects include heavy-duty on-road and non-road vehicles and fueling infrastructure. For more information, including application periods, see the TCEQ TERP website.

Natural Gas Vehicle (NGV) Grant

The Texas Commission on Environmental Quality (TCEQ) administers the Texas NGV Grant Program (TNGVGP) as part of the Texas Emissions Reduction Plan (TERP). The TNGVGP provides grants to replace existing medium- and heavy-duty vehicles with new, converted, or repowered natural gas or propane vehicles that operate in one or more of the eligible counties for at least 75% of the activity life. Qualifying vehicles must be on-road vehicles with a gross vehicle weight rating of more than 8,500 pounds, operate on at least 60% natural gas or propane, and be certified to current federal emissions standards. Additional terms and conditions apply. For more information, including application periods, see the TCEQ TERP website.

(Reference Texas Statutes, Health and Safety Code 394 and Texas Administrative Code 114.670-114.672)

Clean Vehicle and Infrastructure Grants

The Texas Commission on Environmental Quality (TCEQ) administers the Emissions Reduction Incentive Grants (ERIG) Program as part of the Texas Emissions Reduction Plan (TERP). The ERIG program provides grants for various types of clean air projects to improve air quality in the state’s nonattainment areas and other affected counties. Eligible projects include those that involve replacement, retrofit, repower, or lease or purchase of new heavy-duty vehicles; alternative fuel dispensing infrastructure; idle reduction and electrification infrastructure; and alternative fuel use. For more information, including application periods, see the TCEQ TERP website.

(Reference Texas Statutes, Health and Safety Code 386.101-386.117 and Texas Administrative Code Title 30 Part 1 Chapter 114 Subchapter K Division 3 Rule 114.620-114.629)

Clean Fleet Grants

The Texas Commission on Environmental Quality (TCEQ) administers the Texas Clean Fleet Program (TCFP) as part of the Texas Emissions Reduction Plan (TERP). The TCFP provides grants to fleets to replace existing fleet vehicles with alternative fuel vehicles (AFVs) or hybrid electric vehicles (HEVs). An entity that operates a fleet of at least 75 vehicles and commits to operating at least 25% of total annual mileage in a Clean Transportation Zone may be eligible. Qualifying AFV or HEV replacements must reduce emissions of nitrogen oxides or other pollutants by at least 25% as compared to baseline levels and must replace vehicles that meet operational and fuel usage requirements. Neighborhood electric vehicles do not qualify. For more information, including current application periods, see the TCEQ TERP website.

(Reference Texas Statutes, Health and Safety Code 386 and 392 and Texas Administrative Code Title 30 Part 1 Chapter 114 Subchapter K Division 5 Rule 114.650-114.658)

Alternative Fuel Infrastructure Grants

The Texas Commission on Environmental Quality (TCEQ) administers the Alternative Fueling Facilities Program (AFFP) as part of the Texas Emissions Reduction Plan (TERP). The AFFP offers grants for the construction or reconstruction of an alternative fueling facility for natural gas, hydrogen, biodiesel, propane, electricity, and methanol. Priority will be given to public entities. For more information, including application periods, see the TCEQ TERP website.

(Reference Texas Statutes, Health and Safety Code 386.153 and 393.001-393.007)

Clean School Bus Grants

The Texas Commission on Environmental Quality (TCEQ) administers the Texas Clean School Bus (TCSB) Program as part of the Texas Emissions Reduction Plan (TERP). The TCSB program provides grants to public school districts and charter schools for the incremental costs to replace school buses or install diesel oxidation catalysts, diesel particulate filters, emission-reducing add-on equipment, and other emissions reduction technologies in qualified school buses. For more information, including application periods, see the TCEQ TERP website.

(Reference Texas Administrative Code Title 30 Part 1 Chapter 114 Subchapter K Division 4 Rule 114.640-114.648 and Texas Statutes, Health and Safety Code 390)

Governmental Fleet Grants

The Texas Commission on Environmental Quality (TCEQ) administers the Governmental Alternative Fuel Fleet Grant Program (GAFF) as part of the Texas Emissions Reduction Plan (TERP) for the purchase or lease of new vehicles powered by natural gas, propane, hydrogen, or electricity. Special districts and government entities that operate a fleet greater than 15 vehicles are eligible. For more information, including application periods, see the TCEQ TERP website.

(Reference Texas Statutes, Health and Safety Code 386.153 and 395.001-395.015)

Biofuel Blend Tax Exemption

The biodiesel, renewable diesel, or ethanol portion of blended fuel containing taxable diesel is exempt from the diesel fuel tax. The biodiesel, renewable diesel, or ethanol fuel blend must be clearly identified on the retail pump, storage tank, and sales invoice in order to be eligible for the exemption.

(Reference Texas Statutes, Tax Code 162.204)

Idle Reduction Weight Exemption

Any motor vehicle equipped with qualifying idle reduction technology may exceed the state’s gross vehicle weight limits by up to 550 pounds to compensate for the additional weight of the idle reduction technology. To be eligible for the weight exemption, the vehicle operator must be able to provide proof that the idle reduction technology is fully functional.

(Reference Texas Statutes, Transportation Code 622.955)

Electric Vehicle (EV) and Natural Gas Vehicle (NGV) Weight Exemption

EVs and NGVs may exceed the state’s gross vehicle weight limits by up to 2,000 pounds (lbs.). The EV or NGV maximum gross vehicle weight may not exceed 82,000 lbs.

(Reference Texas Statutes, Transportation Code 621.101)

Electric Vehicle Emissions Inspection Exemption

Beginning September 1, 2023, vehicles powered exclusively by electricity are exempt from state motor vehicle emissions inspections.

(Reference Texas Statutes, Transportation Code 621.101)

Utility / Private Incentives

American Electric Power (AEP) Texas - Texas

American Electric Power (AEP) Texas is an investor-owned utility (IOU) that operates in Texas. This page provides a summary of the types of incentives provided by the utility related to alternative fuels and vehicles. For more information on these incentives, see the American Electric Power (AEP) Texas website.

Residential Incentives

Non-Residential Incentives

Austin Energy - Texas

Austin Energy is a municipal utility that operates in Texas. This page provides a summary of the types of incentives provided by the utility related to alternative fuels and vehicles. For more information on these incentives, see the Austin Energy website.

Residential Incentives

Non-Residential Incentives

Bandera Electric Coop - Texas

Bandera Electric Coop is a cooperative that operates in Texas. This page provides a summary of the types of incentives provided by the utility related to alternative fuels and vehicles. For more information on these incentives, see the Bandera Electric Coop website.

Residential Incentives

Non-Residential Incentives

Bartlett Electric Coop - Texas

Bartlett Electric Coop is a cooperative that operates in Texas. This page provides a summary of the types of incentives provided by the utility related to alternative fuels and vehicles. For more information on these incentives, see the Bartlett Electric Coop website.

Residential Incentives

Non-Residential Incentives

Bluebonnet Electric Coop - Texas

Bluebonnet Electric Coop is a cooperative that operates in Texas. This page provides a summary of the types of incentives provided by the utility related to alternative fuels and vehicles. For more information on these incentives, see the Bluebonnet Electric Coop website.

Residential Incentives

Non-Residential Incentives

CPS Energy - Texas

CPS Energy is a municipal utility that operates in Texas. This page provides a summary of the types of incentives provided by the utility related to alternative fuels and vehicles. For more information on these incentives, see the CPS Energy website.

Residential Incentives

Non-Residential Incentives

CenterPoint Energy - Texas

CenterPoint Energy is an investor-owned utility (IOU) that operates in multiple states. This page provides a summary of the types of incentives provided by the utility related to alternative fuels and vehicles. For more information on these incentives, see the CenterPoint Energy website.

Residential Incentives

Non-Residential Incentives

Central Texas Electric Coop - Texas

Central Texas Electric Coop is a cooperative that operates in Texas. This page provides a summary of the types of incentives provided by the utility related to alternative fuels and vehicles. For more information on these incentives, see the Central Texas Electric Coop website.

Residential Incentives

Non-Residential Incentives

City of Bartlett (TX) - Texas

City of Bartlett (TX) is a municipal utility that operates in Texas. This page provides a summary of the types of incentives provided by the utility related to alternative fuels and vehicles. For more information on these incentives, see the City of Bartlett (TX) website.

Residential Incentives

Non-Residential Incentives

City of Bastrop (TX) - Texas

City of Bastrop (TX) is a municipal utility that operates in Texas. This page provides a summary of the types of incentives provided by the utility related to alternative fuels and vehicles. For more information on these incentives, see the City of Bastrop (TX) website.

Residential Incentives

Non-Residential Incentives

City of Bellville (TX) - Texas

City of Bellville (TX) is a municipal utility that operates in Texas. This page provides a summary of the types of incentives provided by the utility related to alternative fuels and vehicles. For more information on these incentives, see the City of Bellville (TX) website.

Residential Incentives

Non-Residential Incentives

City of Boerne (TX) - Texas

City of Boerne (TX) is a municipal utility that operates in Texas. This page provides a summary of the types of incentives provided by the utility related to alternative fuels and vehicles. For more information on these incentives, see the City of Boerne (TX) website.

Residential Incentives

Non-Residential Incentives

City of Bridgeport (TX) - Texas

City of Bridgeport (TX) is a municipal utility that operates in Texas. This page provides a summary of the types of incentives provided by the utility related to alternative fuels and vehicles.

Residential Incentives

Non-Residential Incentives

City of Castroville (TX) - Texas

City of Castroville (TX) is a municipal utility that operates in Texas. This page provides a summary of the types of incentives provided by the utility related to alternative fuels and vehicles. For more information on these incentives, see the City of Castroville (TX) website.

Residential Incentives

Non-Residential Incentives

City of Farmersville (TX) - Texas

City of Farmersville (TX) is a municipal utility that operates in Texas. This page provides a summary of the types of incentives provided by the utility related to alternative fuels and vehicles. For more information on these incentives, see the City of Farmersville (TX) website.

Residential Incentives

Non-Residential Incentives

City of Garland (TX) - Texas

City of Garland (TX) is a municipal utility that operates in Texas. This page provides a summary of the types of incentives provided by the utility related to alternative fuels and vehicles. For more information on these incentives, see the City of Garland (TX) website.

Residential Incentives

Non-Residential Incentives

City of Georgetown (TX) - Texas

City of Georgetown (TX) is a municipal utility that operates in Texas. This page provides a summary of the types of incentives provided by the utility related to alternative fuels and vehicles. For more information on these incentives, see the City of Georgetown (TX) website.

Residential Incentives

Non-Residential Incentives

City of Greenville (TX) - Texas

City of Greenville (TX) is a municipal utility that operates in Texas. This page provides a summary of the types of incentives provided by the utility related to alternative fuels and vehicles. For more information on these incentives, see the City of Greenville (TX) website.

Residential Incentives

Non-Residential Incentives

City of Hempstead (TX) - Texas

City of Hempstead (TX) is a municipal utility that operates in Texas. This page provides a summary of the types of incentives provided by the utility related to alternative fuels and vehicles. For more information on these incentives, see the City of Hempstead (TX) website.

Residential Incentives

Non-Residential Incentives

City of Hondo (TX) - Texas

City of Hondo (TX) is a municipal utility that operates in Texas. This page provides a summary of the types of incentives provided by the utility related to alternative fuels and vehicles. For more information on these incentives, see the City of Hondo (TX) website.

Residential Incentives

Non-Residential Incentives

City of Liberty (TX) - Texas

City of Liberty (TX) is a municipal utility that operates in Texas. This page provides a summary of the types of incentives provided by the utility related to alternative fuels and vehicles. For more information on these incentives, see the City of Liberty (TX) website.

Residential Incentives

Non-Residential Incentives

City of Lockhart (TX) - Texas

City of Lockhart (TX) is a municipal utility that operates in Texas. This page provides a summary of the types of incentives provided by the utility related to alternative fuels and vehicles. For more information on these incentives, see the City of Lockhart (TX) website.

Residential Incentives

Non-Residential Incentives

City of Luling (TX) - Texas

City of Luling (TX) is a municipal utility that operates in Texas. This page provides a summary of the types of incentives provided by the utility related to alternative fuels and vehicles. For more information on these incentives, see the City of Luling (TX) website.

Residential Incentives

Non-Residential Incentives

City of San Marcos (TX) - Texas

City of San Marcos (TX) is a municipal utility that operates in Texas. This page provides a summary of the types of incentives provided by the utility related to alternative fuels and vehicles. For more information on these incentives, see the City of San Marcos (TX) website.

Residential Incentives

Non-Residential Incentives

City of Sanger (TX) - Texas

City of Sanger (TX) is a municipal utility that operates in Texas. This page provides a summary of the types of incentives provided by the utility related to alternative fuels and vehicles. For more information on these incentives, see the City of Sanger (TX) website.

Residential Incentives

Non-Residential Incentives

City of Seguin (TX) - Texas

City of Seguin (TX) is a municipal utility that operates in Texas. This page provides a summary of the types of incentives provided by the utility related to alternative fuels and vehicles. For more information on these incentives, see the City of Seguin (TX) website.

Residential Incentives

Non-Residential Incentives

City of Smithville (TX) - Texas

City of Smithville (TX) is a municipal utility that operates in Texas. This page provides a summary of the types of incentives provided by the utility related to alternative fuels and vehicles. For more information on these incentives, see the City of Smithville (TX) website.

Residential Incentives

Non-Residential Incentives

CoServ - Texas

CoServ is a cooperative that operates in Texas. This page provides a summary of the types of incentives provided by the utility related to alternative fuels and vehicles. For more information on these incentives, see the CoServ website.

Residential Incentives

Non-Residential Incentives

Denton Municipal Electric - Texas

Denton Municipal Electric is a municipal utility that operates in Texas. This page provides a summary of the types of incentives provided by the utility related to alternative fuels and vehicles. For more information on these incentives, see the Denton Municipal Electric website.

Residential Incentives

Non-Residential Incentives

El Paso Electric Co - Texas

El Paso Electric Co is an investor-owned utility (IOU) that operates in multiple states. This page provides a summary of the types of incentives provided by the utility related to alternative fuels and vehicles. For more information on these incentives, see the El Paso Electric Co website.

Residential Incentives

Non-Residential Incentives

Entergy - Texas

Entergy is an investor-owned utility (IOU) that operates in multiple states. This page provides a summary of the types of incentives provided by the utility related to alternative fuels and vehicles. For more information on these incentives, see the Entergy website.

Residential Incentives

Non-Residential Incentives

Fannin Electric Cooperative - Texas

Fannin Electric Cooperative is a cooperative that operates in Texas. This page provides a summary of the types of incentives provided by the utility related to alternative fuels and vehicles. For more information on these incentives, see the Fannin Electric Cooperative website.

Residential Incentives

Non-Residential Incentives

Farmers Electric Coop - Texas

Farmers Electric Coop is a cooperative that operates in Texas. This page provides a summary of the types of incentives provided by the utility related to alternative fuels and vehicles. For more information on these incentives, see the Farmers Electric Coop website.

Residential Incentives

Non-Residential Incentives

Fayette Electric Coop - Texas

Fayette Electric Coop is a cooperative that operates in Texas. This page provides a summary of the types of incentives provided by the utility related to alternative fuels and vehicles. For more information on these incentives, see the Fayette Electric Coop website.

Residential Incentives

Non-Residential Incentives

Grayson-Collin Electric Coop - Texas

Grayson-Collin Electric Coop is a cooperative that operates in Texas. This page provides a summary of the types of incentives provided by the utility related to alternative fuels and vehicles. For more information on these incentives, see the Grayson-Collin Electric Coop website.

Residential Incentives

Non-Residential Incentives

Guadalupe Valley Electric Coop - Texas

Guadalupe Valley Electric Coop is a cooperative that operates in Texas. This page provides a summary of the types of incentives provided by the utility related to alternative fuels and vehicles. For more information on these incentives, see the Guadalupe Valley Electric Coop website.

Residential Incentives

Non-Residential Incentives

Hilco Electric Cooperative - Texas

Hilco Electric Cooperative is a cooperative that operates in Texas. This page provides a summary of the types of incentives provided by the utility related to alternative fuels and vehicles. For more information on these incentives, see the Hilco Electric Cooperative website.

Residential Incentives

Non-Residential Incentives

Jackson Electric Coop - Texas

Jackson Electric Coop is a cooperative that operates in Texas. This page provides a summary of the types of incentives provided by the utility related to alternative fuels and vehicles. For more information on these incentives, see the Jackson Electric Coop website.

Residential Incentives

Non-Residential Incentives

Karnes Electric Coop - Texas

Karnes Electric Coop is a cooperative that operates in Texas. This page provides a summary of the types of incentives provided by the utility related to alternative fuels and vehicles. For more information on these incentives, see the Karnes Electric Coop website.

Residential Incentives

Non-Residential Incentives

Medina Electric Coop - Texas

Medina Electric Coop is a cooperative that operates in Texas. This page provides a summary of the types of incentives provided by the utility related to alternative fuels and vehicles. For more information on these incentives, see the Medina Electric Coop website.

Residential Incentives

Non-Residential Incentives

Mid-South Electric Coop - Texas

Mid-South Electric Coop is a cooperative that operates in Texas. This page provides a summary of the types of incentives provided by the utility related to alternative fuels and vehicles. For more information on these incentives, see the Mid-South Electric Coop website.

Residential Incentives

Non-Residential Incentives

Navarro County Electric Coop - Texas

Navarro County Electric Coop is a cooperative that operates in Texas. This page provides a summary of the types of incentives provided by the utility related to alternative fuels and vehicles. For more information on these incentives, see the Navarro County Electric Coop website.

Residential Incentives

Non-Residential Incentives

Oncor - Texas

Oncor is an investor-owned utility (IOU) that operates in Texas. This page provides a summary of the types of incentives provided by the utility related to alternative fuels and vehicles. For more information on these incentives, see the Oncor website.

Residential Incentives

Non-Residential Incentives

Pedernales Electric Coop - Texas

Pedernales Electric Coop is a cooperative that operates in Texas. This page provides a summary of the types of incentives provided by the utility related to alternative fuels and vehicles. For more information on these incentives, see the Pedernales Electric Coop website.

Residential Incentives

Non-Residential Incentives

PenTex Energy - Texas

PenTex Energy is a cooperative that operates in Texas. This page provides a summary of the types of incentives provided by the utility related to alternative fuels and vehicles. For more information on these incentives, see the PenTex Energy website.

Residential Incentives

Non-Residential Incentives

Sam Houston Electric Coop - Texas

Sam Houston Electric Coop is a cooperative that operates in Texas. This page provides a summary of the types of incentives provided by the utility related to alternative fuels and vehicles. For more information on these incentives, see the Sam Houston Electric Coop website.

Residential Incentives

Non-Residential Incentives

San Bernard Electric Coop - Texas

San Bernard Electric Coop is a cooperative that operates in Texas. This page provides a summary of the types of incentives provided by the utility related to alternative fuels and vehicles. For more information on these incentives, see the San Bernard Electric Coop website.

Residential Incentives

Non-Residential Incentives

South Texas Electric Coop - Texas

South Texas Electric Coop is a cooperative that operates in Texas. This page provides a summary of the types of incentives provided by the utility related to alternative fuels and vehicles. For more information on these incentives, see the South Texas Electric Coop website.

Residential Incentives

Non-Residential Incentives

Southwestern Electric Power Company (SWEPCO) - Texas

Southwestern Electric Power Company (SWEPCO) is an investor-owned utility (IOU) that operates in multiple states. This page provides a summary of the types of incentives provided by the utility related to alternative fuels and vehicles. For more information on these incentives, see the Southwestern Electric Power Company (SWEPCO) website.

Residential Incentives

Non-Residential Incentives

Texas Gas Service - Texas

Texas Gas Service is an investor-owned utility (IOU) that operates in Texas. This page provides a summary of the types of incentives provided by the utility related to alternative fuels and vehicles. For more information on these incentives, see the Texas Gas Service website.

Residential Incentives

Non-Residential Incentives

Texas-New Mexico Power Co - Texas

Texas-New Mexico Power Co is an investor-owned utility (IOU) that operates in Texas. This page provides a summary of the types of incentives provided by the utility related to alternative fuels and vehicles. For more information on these incentives, see the Texas-New Mexico Power Co website.

Residential Incentives

Non-Residential Incentives

Tri-County Electric Cooperative - Texas

Tri-County Electric Cooperative is a cooperative that operates in Texas. This page provides a summary of the types of incentives provided by the utility related to alternative fuels and vehicles. For more information on these incentives, see the Tri-County Electric Cooperative website.

Residential Incentives

Non-Residential Incentives

Trinity Valley Electric Coop - Texas

Trinity Valley Electric Coop is a cooperative that operates in Texas. This page provides a summary of the types of incentives provided by the utility related to alternative fuels and vehicles. For more information on these incentives, see the Trinity Valley Electric Coop website.

Residential Incentives

Non-Residential Incentives

United Cooperative Services (UCS) - Texas

United Cooperative Services (UCS) is a cooperative that operates in Texas. This page provides a summary of the types of incentives provided by the utility related to alternative fuels and vehicles. For more information on these incentives, see the United Cooperative Services (UCS) website.

Residential Incentives

Non-Residential Incentives

Weatherford Municipal Utility System - Texas

Weatherford Municipal Utility System is a municipal utility that operates in Texas. This page provides a summary of the types of incentives provided by the utility related to alternative fuels and vehicles. For more information on these incentives, see the Weatherford Municipal Utility System website.

Residential Incentives

Non-Residential Incentives

Wise Electric Coop - Texas

Wise Electric Coop is a cooperative that operates in Texas. This page provides a summary of the types of incentives provided by the utility related to alternative fuels and vehicles. For more information on these incentives, see the Wise Electric Coop website.

Residential Incentives

Non-Residential Incentives

Xcel Energy - Texas

Xcel Energy is an investor-owned utility (IOU) that operates in multiple states. This page provides a summary of the types of incentives provided by the utility related to alternative fuels and vehicles. For more information on these incentives, see the Xcel Energy website.

Residential Incentives

Non-Residential Incentives

Laws and Regulations

Electric Vehicle (EV) Registration Fee

Beginning September 1, 2023, in addition to standard vehicle registration fees, new EV owners must pay a first-time registration fee of $400. After the first-time registration fee, the fee for EV registration renewal is $200. Fees contribute to the State Highway Fund.

(Reference Texas Statutes, Transportation Code 502.360)

Automated Vehicle (AV) Testing and Operation Support

Texas state agencies must support the testing and operation of AVs. AV usage is authorized if the driving system complies with traffic or motor vehicle laws and is licensed to operate. Additionally, AVs may operate on highways if the AV complies with state and federal laws, is equipped with a recording device, is registered with the Texas Department of Motor Vehicles, and is covered by insurance. AVs are defined as motor vehicles equipped with technology that allows vehicle automation to perform one or more driving functions without the direct control of the driver. In the event of an accident, the vehicle operator must notify local authorities or the Texas Department of Public Safety.

(Reference Texas Statutes, Transportation Code 545.451-545.456)

Connected and Automated Vehicle (CAV) Task Force

The Texas Department of Transportation (TxDOT) formed the CAV task force to support CAV advancement in Texas. The task force will serve as a resource for information and will coordinate all ongoing CAV projects, investments, and initiatives in Texas. The task force will host industry forums and report lessons learned to facilitate progress and encourage collaboration. For more information, see the TxDOT CAV Task Force website.

Authorization of Governmental Alternative Fuel Fleet Grant Program

The Texas Commission on Environmental Quality (TCEQ) must administer a grant program for governmental alternative fuel fleets to provide grants for the purchase or lease of a new vehicle and the purchase, lease, or installation of alternative fueling equipment. Eligible alternative fuels include natural gas, propane, hydrogen, and electricity. State agencies and political subdivisions are eligible to apply for a grant under the program if the entity operates a fleet of more than 15 vehicles. Mass transit and school transportation providers will also be eligible for grants.

TCEQ must establish standardized vehicle grant amounts based on the incremental costs associated with the purchase or lease of different categories of motor vehicle, including the fuel type, vehicle class, and other categories TCEQ considers appropriate. TCEQ will also establish standardized fueling equipment grant amounts.

(Reference Texas Statutes, Health and Safety Code 386.153)

Alternative Fuel Vehicle (AFV) Registration Tracking Program

The Texas Department of Motor Vehicles (Department) collects data on the number of AFVs registered in the state. The Department must submit an annual report to the Texas Legislature detailing the results of each data collection year. The annual report must include information on electric, hybrid, compressed natural gas, and liquefied natural gas vehicle registrations.

(Reference Texas Statutes, Transportation Code 502.001 and 502.004)

Alternative Fuel Use and Vehicle Acquisition Requirements

State agency fleets with more than 15 vehicles, excluding emergency and law enforcement vehicles, may not purchase or lease a motor vehicle unless the vehicle uses natural gas, propane, ethanol or fuel blends of at least 85% ethanol (E85), methanol or fuel blends of at least 85% methanol (M85), biodiesel or fuel blends of at least 20% biodiesel (B20), or electricity (including plug-in hybrid electric vehicles). Waivers may be granted for fleets if the fleet will operate primarily in areas where neither the state agency or a supplier can reasonably be expected to establish adequate fueling infrastructure for these fuels or the agency is unable to obtain equipment or fueling facilities necessary to operate alternative fuel vehicles at a cost that is no greater than the net costs of using conventional fuels.

Covered state agency fleets must consist of at least 50% of vehicles that are able to operate on alternative fuels and use these fuels at least 80% of the time the vehicles are driven. Covered state agencies may meet these requirements through the purchase of new vehicles or the conversion of existing vehicles. State agencies that purchase passenger vehicles or other ground transportation vehicles for general use must ensure that at least 25% of the vehicles purchased during any state fiscal biennium, other than exempted vehicles, meet or exceed federal Tier II, Bin 3 emissions standards.

(Reference Texas Statutes, Government Code 2158.004-2158.009)

Public Utility Definition

Electric vehicle charging service providers are not regulated as a public utility in areas of customer choice, where utility customers have the option to choose an alternate electricity supplier. The Texas Public Utilities Commission is authorized to exempt electric vehicle supply equipment from being regulated as a public utility.

(Reference Texas Utilities Code 37.001)

Public Utility Electric Vehicle (EV) Charger Policy Design Requirements

Public electric utilities must develop and implement competitively neutral electricity policies and tariffs to encourage competitive private sector investment in the deployment of public EV chargers. Entities that are not electric utilities may enter into an agreement with a utility to own or operate EV chargers.

The Public Utility Commission of Texas may not authorize electric utilities to recover costs for the installation, equipment, operation, and maintenance of EV chargers.

(Reference Texas Statutes, Utilities Code 42.0104)

Fuel Dispenser Labeling Requirement

All equipment used to dispense motor fuel containing at least 1% ethanol or methanol must be clearly labeled to inform customers that the fuel contains ethanol or methanol.

(Reference Texas Statutes, Occupations Code 2310.201)

Natural Gas Vehicle (NGV) Inspection Requirements

To pass the state vehicle inspection, an NGV owner must be able to provide proof that the fuel tank on the vehicle has met inspection requirements and falls within the manufacturer’s recommended service life, as required by Title 49 of the U.S. Code of Federal Regulations, section 571.304. Fleet operators must also prove that a certified technician inspected the vehicle’s fuel tank.

(Reference Texas Administrative Code Title 37, Part 1, Chapter 23, Subchapter D, Rule 23.41)

Provision for Establishment of Hydrogen Program

The Texas Department of Transportation (TxDOT) may seek funding from public and private sources to acquire and operate hydrogen vehicles and establish and operate publicly accessible hydrogen fueling stations. TxDOT must ensure that data on emissions from the vehicles, fueling stations, and related hydrogen production are monitored and compared with data on emissions from control vehicles with internal combustion engines that operate on fuels other than hydrogen. TxDOT must report the results of this monitoring, analysis, and comparison to the Texas Commission on Environmental Quality.

(Reference Texas Statutes, Transportation Code 201.618)

Idle Reduction Requirement

A vehicle may not idle for more than five minutes from April through October in cities and counties where the local government has signed a Memorandum of Agreement with the Texas Commission on Environmental Quality (TCEQ). Exemptions apply for the following: vehicles with a gross vehicle weight rating (GVWR) of 14,000 pounds (lbs.) or less; emergency or law enforcement vehicles; airport ground support vehicles; rented/leased vehicles; to perform needed work, including roadway construction, maintenance and diagnostics; to defrost a windshield; traffic conditions; and hours of service compliance activities. Vehicles may idle for up to 30 minutes for bus passenger comfort or transit operations. Fines vary by jurisdiction.

TCEQ may not prohibit or limit the idling of any vehicle with a GVWR greater than 8,500 lbs. provided that the vehicle is equipped with a 2008 or subsequent model year heavy-duty diesel or natural gas engine that is certified by the U.S. Environmental Protection Agency or another state agency to emit no more than 30 grams of nitrogen oxides per hour when idling.

(Reference Texas Statutes, Health and Safety Code 382.0191 and Texas Administrative Code Title 30, Part 1, Chapter 114, Subchapter J, Division 2, Rule 30.114.510-30.114.517)

Neighborhood Electric Vehicle (NEV) Access to Roadways

NEVs are defined as vehicles that can attain a maximum speed of 35 miles per hour (mph) and that must comply with the safety standards in Title 49 of the U.S. Code of Federal Regulations, section 571.500. NEVs may only be used on roadways that have a posted speed limit of 45 mph or less except to cross at an intersection. A county, municipality, or the Texas Department of Transportation may prohibit the operation of NEVs on a street or highway if the governing body determines that the prohibition is necessary in the interest of safety.

(Reference Texas Statutes, Transportation Code 551.301-551.303)

Natural Gas Tax

Compressed natural gas (CNG) and liquefied natural gas (LNG) dispensed into a motor vehicle is taxed at a rate of $0.15 per gasoline gallon equivalent (GGE) or diesel gallon equivalent (DGE), depending on how the dispenser lists the price. A GGE is defined as 5.66 pounds (lbs.) of CNG or 5.37 lbs. of LNG. A DGE is defined as 6.38 lbs. of CNG or 6.06 lbs. of LNG. Exemptions may apply.

(Reference Texas Statutes, Tax Code 162.001, and 162.351-162.356)

Propane and Natural Gas Licensing and Safety

The Railroad Commission of Texas regulates the safety of the natural gas and propane industries. Any business that engages in propane or natural gas activities in Texas must be licensed. These activities include selling, transporting, dispensing or storing propane and natural gas and manufacturing, installing, servicing or repairing propane and natural gas containers, systems and appliances. Some exceptions apply. For more information, see the Texas Safety, Licensing, Training, and Certification website.

(Reference Texas Statutes, Natural Resources Code 113.011, 113.081, 116.011, and 116.031)

Publicly Funded Electric Vehicle (EV) Charger Connector Standards

By December 1, 2024, the Texas Department of Licensing and Regulation (TDLR), in consultation with the Texas Department of Transportation, must adopt standards for EV chargers to ensure that the connectors or plugs are widely compatible with as many EVs as practicable.

After December 1, 2024, publicly available EV chargers funded through public grants or state rebate programs must meet the standards adopted by TDLR.

(Reference Texas Statutes, Occupations Code 2311.001)

Vehicle Purchase and Lease Requirements

Political subdivisions are prohibited from limiting or banning the use, sale, or lease of vehicles or fueling infrastructure based on their fuel source. A political subdivision is defined as a city, county, municipality, special district, school district, junior college, or housing authority.

(Reference Texas Statutes, Local Government Code 247.001-247.003)

Electric Vehicle (EV) Charger Inspection Regulations

By December 1, 2024, the Texas Commission of Licensing and Regulation (Commission) must adopt rules for EV charger inspections. The Commission is authorized to set fees to cover the cost of administering an inspection program and establish exemptions.

The Texas Department of Licensing and Regulation (TDLR) is authorized to periodically conduct an inspection of EV chargers, including for complaints, to verify compliance with requirements and standards. TDLR must establish methods by which consumers can provide complaints regarding EV chargers.

(Reference Texas Statutes, Occupations Code 2311.0101-2311.0306)

Hydrogen Fuel Cell Electric Vehicle (FCEV) and Infrastructure Grant Program Authorization

The Texas Commission on Environmental Quality (TCEQ) must establish a grant program to replace on-road and non-road vehicles with newer on-road or non-road FCEVs, including the associated infrastructure. The program must encourage the adoption of FCEVs and associated infrastructure in nonattainment areas.

(Reference Texas Statutes, Health and Safety Code 386.301-386.303)