The Texas Commission on Environmental Quality will award $7.7 million in financial incentives for the purchase or lease of eligible new vehicles powered by compressed natural gas (CNG), liquefied petroleum gas (propane), or electric drives.

Government fleets in Texas may apply for the incentives, and there is no limit on the number of incentives they can apply for. However, they must fill out one application per vehicle.

Owners or lessees will be eligible for $2,500 for a purchase and a tiered system for leases. The commission will award $2,500 for a four-year lease term; $1,875 for a term of at least three years and less than four; $1,250 for a term of at least two years and less than three; and $625 for a term of at least one year and less than two.

The TCEQ has compiled a list of vehicle makes and models that vehicle and conversion system manufacturers report may meet the eligibility criteria and be available for sale or lease in Texas. This list will be updated whenever a manufacturer submits new information.

The application period will run through June 2015, until the commission depletes funding or reaches the limits on the maximum number of vehicles. The maximum number of vehicles allowed is 2,000 electric drive vehicles and 2,000 CNG and propane vehicles.

Only vehicles sold through a franchised dealer in Texas, or leased from a leasing company licensed to do business in Texas, may be eligible. Vehicles purchased from the manufacturer or from an out-of-state dealer are not eligible.

For leased vehicles, the vehicle must be purchased by the leasing company from a franchise dealer in Texas as well. Recipients of the grant will be required to title, register, and operate the vehicle in Texas for one year. Vehicles must be purchased on or after May 13.

Senate Bill 1727, enacted by the Texas Legislature, revised the state's Emissions Reduction Plan's Light-Duty Motor Vehicle Purchase or Lease Incentive Program as a statewide program to provide up to $2,500 per eligible vehicle.

Visit the TCEQ for more information.