Reviewed November 2, 2026
Texas fleets can compare propane, natural gas, biofuels, electricity and hydrogen by vehicle requirements, fueling access and cost. The U.S. Department of Energy’s fuel guides explain each option; its station locator shows reported fueling and charging locations.
Alternative fuel requirements
| Fuel | Texas requirements and resources |
|---|---|
| Propane, CNG and LNG | The Railroad Commission of Texas (RRC) licenses regulated company activities and certifies workers. Select the category for selling, dispensing, transporting, installing or servicing the fuel system; exemptions and insurance requirements depend on the activity. RRC licensing instructions. |
| CNG and LNG vehicle fuel | A Comptroller dealer license also applies when a business fuels its own vehicles from its own storage. Review the separate tax account and reporting requirements. Comptroller CNG/LNG tax guide. |
| Biodiesel and renewable diesel | Texas exempts the qualifying biofuel portion from diesel fuel tax. Blends require identification on the pump, tank and invoice; check the exemption conditions before pricing a sale. DOE summary and Texas Tax Code reference. |
| Electricity and hydrogen | Compare charging or fueling equipment, vehicle compatibility and available stations using the DOE electricity guide and hydrogen guide. |
Stationary fuel installations have their own filings. For CNG, RRC plan review and completion reports depend on storage capacity; installations requiring plan approval must receive it before construction. Start with the CNG installation requirements and fuel-specific forms.
Permitting an oil and gas site
RRC Form W-1 covers applications to drill, recomplete or re-enter a well. Use the current forms and drilling permit instructions.
For facilities that emit air contaminants, TCEQ’s authorization process depends on the equipment and emissions. Its oil and gas guide covers de minimis facilities, permits by rule, standard permits, individual permits and major-source operating permits. Check the applicable construction requirements before work begins. TCEQ oil and gas air authorizations.
Related guides: fees and deadlines, waste haulers and fines and penalties.