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PoliticsSeptember 13, 2026

Texas expands vehicle replacement program to include diesel engines

The expansion broadens options for government fleets, allowing diesel and alternative fuel choices alongside electric vehicles.

SK
Steve Kim
2d ago
Source: This report is based on an official public release from Texas Commission on Environmental Quality. PULSE organizes and summarizes public government communications. Read the original release →

The Texas Commission on Environmental Quality expanded fuel options available to government entities purchasing replacement vehicles through a $28 million state program. Governmental entities can now select diesel or alternative fuel vehicles in addition to electric vehicles under the Texas Volkswagen Environmental Mitigation Program (TxVEMP), and the agency extended the application deadline to Aug. 31, 2029, or until funds are exhausted.

All new vehicles must emit at least 25 percent less nitrogen oxides than the vehicle being replaced.

Governmental entities may request reimbursement for up to 100 percent of the incremental cost of replacing or re-powering an on-road vehicle or equipment. Non-governmental entities are limited to 75 percent reimbursement for electric models or engines.

Eligible applicants include individuals, governmental entities, corporations, school districts, municipalities, counties, transit districts, and tribal governments. Non-governmental entities must select electric vehicles or equipment. Applications are selected on a first-come, first-served basis, and approximately $28 million remains available.

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