By Scott McClallen, The Center Square
Published Sept. 19, 2023
Texas’ electric vehicle rebate program has gave 6,751 rebates for $16.3 million from 2014 through August 2022.
The Texas Emissions Reduction Program offers a $2,500 rebate for buying or leasing an electric or plug-in hybrid vehicle on top of a $7,500 federal subsidy.
Victoria Cann, communication specialist with the Texas Commission on Environmental Quality, told The Center Square in an email the rebates apply for select new light-duty motor vehicles powered by compressed natural gas, liquified petroleum gas, hydrogen fuel cell, or plug-in or plug-in hybrid to encourage the greater use of these vehicles and fuels.
In fiscal year 2019, fewer than 30,000 electric vehicles were registered statewide. As of 2023, Texas has 222,150 zero emission vehicles registered.
The Environmental Quality commission can provide 1,000 rebate grants for qualifying natural gas vehicles and 2,000 rebates for qualifying hydrogen fuel cell or other electric drive vehicles, as limited by statute, each fiscal year.
The Electric Reliability Council of Texas estimates 1 million electric vehicles will be rolling on Texas roads by 2028. The Texas Department of Motor Vehicles estimates Texas will reach 1 million by 2031.
The Light-Duty Motor Vehicle Purchase or Lease Incentive Program project is funded with $8.1 million in fiscal year 2022-23, or 5% of the Environmental Quality commission budget, the statutory limit. Cann said the emissions reduction program, commonly called TERP, expects to begin accepting applications in October, subject to change.
The 2023 electric vehicle model year, with 63,645 registered, represents 28% of all EV registrations statewide, according to state data.
The Texas government tracks vehicle rebates awarded from 2014 through Aug. 31, 2022. A list of eligible vehicles is here.
The state has nearly 30 million residents, with around 21 million driving vehicles fueled by gasoline; 771,000 are fueled by diesel, 420,800 vehicles use biodiesel and 2.3 million use E85.
Most electric vehicle registration is concentrated within cities, with the Dallas-Fort Worth area composing 37.1%, Houston 24.2%, and Austin 19.7%. For context, EVs account for 2.1% of all registered vehicles in Austin.
The state doesn’t collect rebate recipient demographics.
The Environmental Quality commission implemented the Texas Clean Fleet Program in 2009 and the Texas Natural Gas Vehicle Grant Program in 2012, which have funded $123 million to replace or upgrade 1,875 existing vehicles with new vehicles or engines powered by natural gas or an alternative fuel.
Within the rebate program, about 9,300 rebate vehicles were brands including Chevrolet, Nissan, Ford and Hyundai. The numbers include:
• 1,507 Chevrolets
• 1,500 Nissan Leafs
• 550 Fords
• 372 Hyundais
• 309 Toyotas
• 154 Volvos
The program subsidized 1,191 luxury vehicles, including:
• 686 BMWs
• 329 Audis
• 90 Porsches, including 60 Taycans
• 33 Mercedes-Benz
• 53 Jaguar I-Pace
Nationwide, Texas is second in the race to register electric vehicles with 222,150, trailing California, which has more than 1.5 million zero-emission vehicles as of 2022, according to the California Energy Commission.
