Texas Commission on Environmental Quality Announces Opening of the TERP Rebate Grants Program

AUSTIN, TX - The Texas Commission on Environmental Quality (TCEQ) is now accepting applications under the Texas Emissions Reduction Plan (TERP) Rebate Grants Program. The program provides financial incentives to help reduce nitrogen oxide (NOₓ) emissions from on-road heavy-duty vehicles and select non-road diesel equipment operating in eligible areas of Texas.

Optional add-on funding is available under the program for onsite alternative refueling infrastructure associated with an eligible replacement, repower, or new purchase/lease project.

By accelerating the adoption of cleaner technologies, the program helps improve air quality in nonattainment areas and affected counties across the state.

Eligible projects include:

• Replacement or repower of on-road heavy-duty diesel vehicles with a gross vehicle weight rating greater than 8,500 pounds
• Replacement or repower of select non-road diesel equipment powered by an engine rated at 25 horsepower or greater
• On-vehicle electrification (add-on equipment such as battery APUs or electric refrigeration units) that reduce NOₓ emissions
• Purchase or lease of new near-zero or zero-emission vehicles, where no disposal of an existing vehicle is required
• Onsite refueling infrastructure- including electricity, hydrogen, compressed natural gas (CNG), liquefied natural gas (LNG), propane, and methanol-associated with an eligible replacement, repower, or new purchase/lease project

At least 55% of the operation of grant-funded vehicles or equipment must occur in eligible nonattainment or affected counties.

Eligible Applicants

Eligible applicants include individuals, state and local governments, and other legal entities. A portion of available funding is set aside for small businesses that own and operate no more than five vehicles or pieces of equipment.

Application Process

Awards are granted on a first-come, first-served basis, subject to eligibility and available funding. Applications must be submitted online through TCEQ's TERP SUNSS system. Detailed eligibility requirements, program guidelines, and application instructions are available on the Rebate Grants Program webpage.

Contact Information

For additional information, contact the TERP team toll-free at 800-919-TERP (8377), by email at [email protected], or visit https://www.terpgrants.org.

The Texas Emissions Reduction Plan (TERP) helps improve air quality in Texas by providing grants and incentives to reduce emissions from mobile sources and to support the use of cleaner fuels and advanced technologies.