Texas Emissions Reduction Plan (TERP) Grant programs

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Texas Emissions Reduction Plan


TERP is a program of the TCEQ that provides grants to reduce nitrogen oxides (NOX) emissions from mobile sources, supports programs to encourage the use of alternative fuels for transportation in  Texas, and helps to keep the air in Texas clean. After a brief period of unavailability, several TERP grants will be reopened for fiscal year 2020. Read on to learn more about the TERP program, and what sort of grants will soon be available.


How does TERP reduce NOX emissions from Mobile Sources?

TERP provides financial incentives for the early retirement of heavy-duty vehicles and equipment (particularly those with large diesel engines) that have been operating in Texas:

  • Retired vehicles and equipment are rendered permanently inoperable.

  • Retired vehicles and equipment are replaced with newer, cleaner models.

  • Grantees commit to operating newer, cleaner models in designated areas of Texas.

TERP and the State Implementation Plan (SIP)

Since 2001, emissions reductions from the TERP have been included in certain SIP revisions to help demonstrate attainment and progress toward attainment of the NAAQS under the FCAA. TERP programs continue to support attainment demonstrations in SIP revisions as additional measures called “Weight of Evidence,” which includes activities that are expected to further reduce ozone levels in the nonattainment areas.


TERP Program Descriptions:

  • The Light-Duty Motor Vehicle Purchase or Lease Incentive Program (LDPLIP) provides rebates for the purchase of light-duty vehicles operating on natural gas, propane, or electricity. $7.7 million in funds will be available starting in September 2019 until early 2021, or when funds run out, whichever comes first. Funds will be distributed on a first-come, first-served basis.

  • The Texas Natural Gas Vehicle Grants Program (TNGVGP) provides grants to replace or repower existing diesel or gasoline vehicles with natural gas vehicles and engines. $15.4 million in funds will become available in Fall 2019 and will be distributed on a first-come, first-served basis for 16 months, or until funds run out.

  • The purpose of the Seaport and Rail Yard Areas Emissions Reduction (SPRY) Program is to provide financial incentives for the replacement of older drayage trucks and equipment operating at eligible seaports and Class I rail yards in areas of Texas designated as nonattainment under the Federal Clean Air Act. $9.2 million will be distributed on a first-come, first-served basis; dates have yet to be determined.

  • The Texas Clean School Bus (TCSB) program provides grants to replace or retrofit older school buses to reduce emissions of particulate matter in diesel exhaust and throughout the state. $6.2 million will be distributed on a first-come, first-served basis; dates have yet to be determined.

  • The Alternative Fueling Facilities Program (AFFP) provides grants for the construction or expansion of facilities to store, compress, or dispense alternative fuels. Alternative fuels eligible for funding under this program include biodiesel, hydrogen, methanol, natural gas, propane, and/or electricity. Dates are to be determined and applicants will compete for $12 million.

  • The Texas Clean Fleet Program (TCFP) provides grants to owners of at least 75 vehicles in Texas to replace a minimum of 10 diesel vehicles with new alternative-fuel or hybrid vehicles. Alternative fuels include: natural gas, propane, hydrogen, methanol (85% by volume), and electricity. Applicants will compete for $7.7 million; dates have yet to be determined.

  • The New Technology Implementation Grant (NTIG) Program provides grants to offset the incremental cost of emissions reductions of pollutants from facilities and other stationary sources in TexasApplicants will compete for $4.6 million; dates have yet to be determined.

  • The Emissions Reduction Incentive Grants (ERIG) Program offers grants to upgrade or replace on-road vehicles, non-road equipment, stationary equipment, marine vessels, locomotives, on-vehicle electrification and idle reduction infrastructure, and rail relocation and improvement projects, which must result in a reduction of emissions of nitrogen oxides (NOx) of at least 25%. Applicants will compete for $50 million; dates have yet to be determined.

  • The Rebate Grants program is a simplified first-come, first-served grant program to upgrade or replace diesel heavy-duty vehicles and/or non-road equipment. Applicants will compete for $10 million; dates have yet to be determined.

Receive Updates About TERP Grants

As dates and other details about many of these programs are not yet available, interested parties should sign up for the mailing list to receive the latest updates and get a jump on applying for grants.

Additional information can also be found on the Upcoming TERP Meetings and Workshops page, including a webinars about LDPLIP and TNGVGP.

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