Questions or Comments: VWsettle@tceq.texas.gov
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School Bus, Shuttle Bus, Transit Bus

Offers grants in eligible areas to replace or repower school buses, shuttle buses, and transit buses.

A Program of the Texas Volkswagen Environmental Mitigation Program (TxVEMP)

No Longer Accepting Applications

The latest application period has ended. Applications may no longer be submitted for funding consideration.

Program Information

Program Information

Contact Information

Sandra Hernandez
800-919-TERP (8377)

VWsettle@tceq.texas.gov

How to Apply

Review the following documents before completing and submitting an application:

Eligible Applicants

Eligible applicants under the TxVEMP must operate school buses, shuttle buses, or transit buses of 14,001 pounds or greater at least 51% of the buses’ annual mileage in one of the Priority Areas.

School buses, shuttle buses, and transit buses being replaced or repowered must:
  • have a diesel engine with a model year of 2009 or older;
  • be considered capable of performing its primary function for the next five years;
  • been continuously inspected and registered in Texas for the two years immediately preceding the application signature date;
  • been used routinely by the applicant in its primary function in Texas for the two years immediately preceding the application signature date; and
  • been owned by the applicant at the time of application and for the two years immediately preceding the application signature date.
New school buses, shuttle buses, and transit buses must:
  • be powered by electricity, diesel, or an alternative fuel;
  • have an engine model year not more than one year older than the year the application is submitted;
  • be certified by the EPA or CARB to a NOx emissions standard or family emissions limit (FEL) of 0.2 g/bhp-hr or lower; and
  • be of the same type, weight category, and body and axle configuration as the vehicle being replaced.
Activity Life and Usage Commitment

The applicant must commit to use the grant-funded vehicle at least 51% of the vehicle’s annual miles of operation in one of the Priority Areas for the duration of the five-year activity life.

Replacement Activities

Reference Section 2.7 and Appendix B of the RFGA for guidance on determining your grant amount. Applicants may request the applicable table amount under Part A below. Final reimbursement amounts may not exceed the cost percentage from Part B applied the actual invoice cost of the new vehicle.

Repower Activities
Reference Section 2.8, Appendix B, and Appendix D of the RFGA for guidance on determining your grant amount. Applicants may request the lesser amount of either:
  1. the applicable table amount under Part A, or
  2. the cost percentage from Part B applied to the applicant’s actual, eligible expenditures.
Infrastructure Activities
Reference Section 2.9, Appendix B, and Appendix D of the RFGA for guidance on determining your grant amount. Applicants may request the lesser amount of either:
  1. the applicable table amount under Part A, or
  2. the cost percentage from Part B applied to the applicant’s actual, eligible expenditures.

Part A. Maximum Funding Amounts

Note:“Government” shall mean a state or local government agency (including school district, municipality, city, county, special district, joint powers authority, or port authority owning fleets purchased with government funds), and a tribal government or native village. A federal government agency or entity is not included in this definition.

Grant Tables for Government-Owned Vehicles
Grant Tables for Non-Government-Owned Vehicles

Part B: Maximum Percentage of Cost Limits

Apply the maximum percentage of cost limits to your actual, eligible expenditures. The maximum percentage of cost limits by entity, project, and fuel type are provided below.

Government-Owned Vehicles
  • Replacement or Repower- Electric, Diesel, or Alternative Fuel: 80%
Non-Government-Owned Vehicles
  • Replacement (Diesel or Alternative Fuel): 25%
  • Repower (Diesel or Alternative Fuel): 40%
  • Replacement or Repower (Electric): 50%

Download and complete the project application and W-9 form:

The TCEQ requires applicants to complete the W-9 to certify their Taxpayer Identification Number (TIN). The W-9 Form must be submitted with the Application Forms.

The TCEQ is committed to accessibility. If you would like to request a more accessible version of the project application, please contact the TERP program at 800-919-TERP (8377).

The following items must be completed in full to be considered for eligibility:

  • Two (2) original signed copies of the project application
  • W-9

Application forms submitted electronically will not be accepted.

Regular Post Delivery:
Texas Commission on Environmental Quality
Air Grants Division
TxVEMP, MC-204
P.O. Box 13087
Austin, TX 78711-3087

Express Delivery:
Texas Commission on Environmental Quality
Air Grants Division
TxVEMP, MC-204
12100 Park 35 Circle
Building F, 1st Floor, Room 1301
Austin, TX 78753

Questions on obtaining the RFGA, determining the eligibility of a project, or completing and submitting an application?
Contact TxVEMP staff at VWsettle@tceq.texas.gov to discuss.