
Texas Hybrid Electric Vehicle Laws and Incentives
State Incentives
Texas Clean Fleet Program
Beginning in 2010, the Texas Commission on Environmental Quality (TCEQ) will administer the Texas Clean Fleet Program (Program), which encourages owners of fleets containing diesel vehicles to permanently remove the vehicles from the road and replace them with alternative fuel or hybrid electric vehicles. Grants will be available to fleets to offset the incremental cost of such replacement projects. An entity that operates a fleet of at least 100 vehicles and places 25 or more qualifying vehicles in service for use entirely in Texas during a given calendar year is eligible to participate in the Program. Qualifying alternative fuel or hybrid electric vehicle replacements must: result in a reduction of emissions of nitrogen oxides or other pollutants, as established by the TCEQ, by at least 25% as compared to baseline levels; meet established minimum fuel economy guidelines; and meet other requirements as established by TCEQ. Neighborhood electric vehicles do not qualify under this Program. This Program expires August 31, 2017. (Reference Senate Bill 1759, 2009, and Texas Statutes, Health and Safety Code 391)
Clean School Bus Program - North Central Texas
The North Central Texas Clean School Bus Program (Program) is a fuel and technology neutral program, administered by the North Central Texas Council of Governments, serving a 16-county service area. The Program serves as a clearinghouse for information on technology, legislation, best-practices for school bus operators, and clean school bus funding opportunities. The Program aims to reduce emissions from school bus fleets by encouraging and assisting in the expedited purchase of clean school buses as well as adoption and enforcement of idle reduction policies. In addition, the Program seeks to gather community resources to assist schools, school districts, and school bus operators in improving air quality and protecting the health of school-aged children.
Clean Vehicle Incentives - Dallas-Fort Worth
The AirCheckTexas Drive a Clean Machine Program helps vehicle owners comply with vehicle emissions standards and targets the highest polluting vehicles by offering financial incentives to remove them from the roadways or to make repairs to reduce emissions. The North Central Texas Council of Governments administers the program for residents in nine North Central Texas ozone non-attainment counties.
State Laws and Regulations
Alternative Fuel Use Required in State Fleets
State fleets with more than 15 vehicles, excluding emergency and law enforcement vehicles, may not purchase or lease a motor vehicle unless the vehicle uses compressed natural gas, liquefied natural gas, liquefied petroleum gas, methanol or methanol-gasoline blends of 85% or greater (M85), ethanol or E85, biodiesel or B20 and higher blends, or electricity including plug-in hybrid electric vehicles. Waivers may be granted for fleets under the following circumstances: 1) the fleet will operate primarily in areas where neither the state agency or a supplier can reasonably be expected to establish adequate fueling for these fuels, or 2) 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.
By September 30, 2010, covered state agency fleets must consist of at least 50% vehicles that use alternative fuels as listed above and use these fuels not less than 80% of the time the vehicle is driven.
Furthermore, state agencies authorized to 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. Covered state agencies may meet these requirements through the purchase of new vehicles or the conversion of existing vehicles.
(Reference House Bill 432, 2009, and Texas Statutes, Government Code 2158.001, 2158.0013, and 2158.003 to 2158.009)

