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Other School-Bus Funding Opportunities

Other possible funding opportunities for school districts to upgrade (retrofit, replace, and/or re-power) school-bus fleets to reduce diesel exhaust emissions.

Grants for Retrofits and Replacement Programs

Texas Emissions Reduction Plan (TERP)

Type of Funding Available: Emission Reduction Incentive Grants (ERIG) are available to assist applicants in offsetting the costs associated with reducing nitrogen oxides (NOx) emissions in a variety of vehicles and equipment-including buses--through retrofit, repower, or replacement.

Additional Details: Find out more about the TERP grants and how your district might qualify.

Areas Available: Grants may be available in the following non-attainment areas and affected counties: Houston-Galveston-Brazoria, Dallas-Fort Worth, Beaumont-Port Arthur, Tyler-Longview, San Antonio, and Austin.

Contact Information: Contact the program by calling TERP Staff at 800-919-TERP (8377) or via e-mail. Grant applications and information are available at the TERP website. Contact the program by mail at:

Texas Commission on Environmental Quality
Air Quality Division
Implementation Grants Section (Incentive Grants) MC-204
P.O. Box 13087
Austin, TX 78711-3087

Railroad Commission of Texas

Type of Funding Available: Funding is available to school districts to replace older diesel, gasoline or propane school buses with new propane-fueled school buses that meet or exceed the EPA's current emissions standards.

Additional Details: The amount of the grant varies depending on the calculated reduction in emissions. A grant estimate may be calculated by visiting the Railroad Commission of Texas' website.

Areas Available: School districts who operate vehicles in the following non-attainment counties are eligible for funding: Bastrop, Bexar, Brazoria, Caldwell, Chambers, Collin, Comal, Dallas, Denton, Ellis, Ft. Bend, Galveston, Gregg, Guadalupe, Harris, Hardin, Harrison, Hays, Jefferson, Johnson, Kaufman, Liberty, Montgomery, Orange, Parker, Rockwall, Rusk, Smith, Tarrant, Travis, Upshur, Waller, Williamson, and Wilson.

Contact Information: Contact Daniel Mowrey of the Railroad Commission of Texas by phone at (512) 463-3370, or via e-mail. Contact the program by mail at:

Railroad Commission of Texas
Alternative Fuels Research Education Division
P.O. Box 12967
Austin, Texas 78711-2967

Texas General Land Office

Type of Funding Available: A Natural Gas Vehicle (NGV) Initiative Grant Program is available to help cover the cost of replacing a variety of diesel vehicles including buses with natural gas vehicles.

Additional Details: Preference is given to state and local public sector fleets. Private fleets also may be eligible, especially those that operate directly under contract for government work or do other government business. Additional information can be found at the Texas General Land Office website.

The Public Customer Gas Program helps public customers including school districts save money on their natural gas bills by buying gas from the Land Office. For more information on the Public Customer Gas Program, visit the Land Office web site at http://www.glo.texas.gov/what-we-do/energy-and-minerals/energy-sales/natural-gas-sales/index.html.

Areas Available: Grants may be available in the following non-attainment areas and affected counties: Houston-Galveston-Brazoria, Dallas-Fort Worth, Beaumont-Port Arthur, Tyler-Longview, San Antonio, and Austin.

Contact Information: Contact Soll Sussman in the Renewable Energy Division at (512) 463-9210, or via e-mail. Contact the program by mail at:

Texas General Land Office Renewable Energy Division
Natural Gas Initiative Program Grants
Attn: Soll Sussman
P.O. Box 12873
Austin, TX 78711-2873

Supplemental Environmental Projects (SEP)

This TCEQ program makes funding available in certain areas of the state where SEP third-party project administrators have agreed to participate in clean school bus retrofit projects. The project administrators receive the money, which comes from a portion of fines resulting from enforcement actions for environmental violations.  Visit the TCEQ SEP Web page for complete details.

Texas Parent Teacher Association (PTA) SEP

Type of Funding Available: Using Supplemental Environmental Project (SEP) funds, reimbursement is available to PTA school districts that retrofit or replace 1991 or older diesel-engine school buses with newer model year buses or cleaner technology.

Additional Details: Buses older than 5 years old will be retrofitted with control technologies approved by the EPA. Buses older than model year 1991 that are not on the school districts replacement schedule can be scrapped and replaced with model year 2007 or newer buses.

Areas Available: Funding is available statewide; however, SEPs are designated by county and are not available for all districts at all times.

Contact Information: Contact the Texas Parent Teacher Association by phone at (512) 476-6769 or via e-mail. Contact the Texas PTA by mail at:

Texas PTA
408 W. 11th St.
Austin, Texas 78701-2113

Texas Association of Resource Conservation and Development SEP

Type of Funding Available: Using Supplemental Environmental Project (SEP) funds, financial assistance is available to replace older diesel buses with alternative-fuel or clean-diesel buses, or to retrofit older diesel buses with new, cleaner technology.

Additional Details: Retrofitting is prioritized over replacing school buses. Older buses deemed not suitable for retrofitting will be permanently retired and sold only for scrap.

Areas Available: Funding is available statewide; however, SEPs are designated by county and are not available for all districts at all times.

Contact Information: Contact the Texas Association of Resource Conservation and Development by phone at (979) 846-0819. Contact the program by mail at:

Texas Association of Resource Conservation and Development
1716 Briarcrest Drive, Suite 510
Bryan, TX 77802-2700

Council of Governments Programs

Houston-Galveston Area Council (H-GAC) on behalf of the Houston-Galveston Area Emission Reduction Credit Organization (AERCO)

Type of Funding Available: Funding is available to retrofit, repower, convert, or replace school buses through the Clean School Bus Houston program. Funding is also available to establish an alternative fuel refueling stations with public access in the Houston area.

Additional Details: Funding for school districts is up to one hundred percent (100%), depending on funding source and availability. For more information, please visit the HGAC AERCO web site at http://www.h-gac.com/taq/airquality/aerco.

Areas Available: School districts in the geographic area served by AERCO, namely, TCEQ Regions 10 and 12, excluding Shelby County. This area currently includes the twenty-seven (27) counties of Angelina, Austin, Brazoria, Chambers, Colorado, Fort Bend, Galveston, Hardin, Harris, Houston, Jasper, Jefferson, Liberty, Matagorda, Montgomery, Nacogdoches, Newton, Orange, Polk, Sabine, San Augustine, San Jacinto, Trinity, Tyler, Walker, Waller, and Wharton. 

Contact Information: Please contact program staff phone at 713-993-2488 or e-mail at cleanvehicles@h-gac.com, or U.S. mail at:

Attn: Air Quality Coordinator
Clean School Bus Houston
H-GAC
PO Box 22777
Houston, TX 77227 -2777

North Central Texas Council of Governments (NCTCOG)

Type of Funding Available: Grants may be available to public and private schools, school districts, and school bus operators to reduce emissions from school bus fleets in the 16-county NCTCOG services area. Visit the NCTCOG website for current availability.

Additional Details: The program encourages the adoption and enforcement of anti-idling policies. It also serves as a clearing house for information on technology, legislation, best-practices for school bus operators, and clean school bus funding opportunities.

Areas Available: Counties in the North Central Texas COG are eligible for available funding. (Collin, Dallas, Denton, Ellis, Erath, Hood, Hunt, Johnson, Kaufman, Navarro, Palo Pinto, Parker, Rockwall, Somervell, Tarrant, and Wise counties).

Contact Information: Contact the program manager, Amanda Brimmer, at (817) 608-2354, or via e-mail. Contact the program by mail at:

North Central Texas Council of Governments
Clean School Bus Program
616 Six Flags Drive P.O. Box 5888
Arlington, TX 76005-5888

Clean Air Force and Capital Area Council of Governments

Type of Funding Available: CLEAN AIR Force of Central Texas along with the Capital Area Council of Governments has established a non-profit grant program to provide information and funds (State and Federal) to help local school districts retrofit or replace their existing diesel-powered school bus fleets to improve the air quality inside of the bus.

Additional Details: The program also provides information on retrofit technologies, clean fuels, and idling-reduction strategies.

Areas Available: School districts in Travis, Williamson, Bastrop, Caldwell and Hays counties are eligible for funding.

Contact Information: Contact the program coordinator, Janet Dewey, at (512) 913-2523 or via e-mail. Contact the program by mail at:

Clean Air Force
Clean School Bus Program of Central Texas
301 Congress Avenue, Suite 650
Austin, TX 78701

Alamo Area Council of Governments

Type of Funding Available: The Alamo Area Council of Governments provides grants as available.

Additional Details: The program acts as an information source for Federal, State, and local funding as well as provides grants for replacement of diesel school buses as funding is available.

Areas Available: Counties in the San Antonio COG are eligible for available funding. (Atascosa, Bandera, Bexar, Comal, Frio, Gillespie, Guadalupe, Karnes, Kerr, Medina, and Wilson counties)

Contact Information: Contact Peter Bella, Natural Resources Director, at (210) 362-5249 or via e-mail. Contact the program by mail at:

Alamo Area Council of Governments
Atten: Peter Bella
8700 Tesoro Drive, Suite 700
San Antonio, TX 78217

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