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Texas Emissions Reduction Plan (TERP)

The TERP program provides financial incentives to eligible individuals, businesses, or local governments to reduce emissions from polluting vehicles and equipment.

New and upgraded equipment pollutes less, improving the air quality in Texas. Grant applications are accepted at different times throughout the year, depending on available funds.

We believe these to be taxable grants. Please consult with your tax advisor.

In accordance with Texas Health and Safety Code 386.057Exit the TCEQ, the TCEQ is required to publish and submit to the Legislature a biennial report on the status of implementing the TERP. A link to the TERP Biennial Report for 2019-2020 is provided below:

To minimize the impact of COVID-19 on both applicants and grantees, the TCEQ will be accepting TERP grant documents by email at, fax at (512) 239-6161, or regular mail. The TCEQ will still require that grant documents submitted by email or fax be signed by the appropriate party. Grant documents include, but are not limited to, applications, contracts and contract amendments, requests for reimbursement, disposition verification requests, and usage reports. Staff remain available to answer questions regarding the status of TERP grant programs, applications, and existing grant projects at
The TCEQ is now accepting applications for the following programs:


The TERP program is comprised of multiple grant programs. Each program has its own specific eligibility requirements and may accept applications at different time periods throughout the year. 

Alternative Fueling Facilities Program (AFFP)

The AFFP program offers grants for the construction or expansion of natural gas and other alternative fuel fueling stations within the Clean Transportation Zone. 

Seaport and Rail Yard Areas Emissions Reduction (SPRY) Program

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.

Emissions Reduction Incentive Grants (ERIG)

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%.

New Technology Implementation Grant (NTIG) Program

These grants provide incentives to assist in the implementation of new technologies to reduce emissions of pollutants from facilities and other stationary sources.

Rebate Grants Program

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.

Texas Clean Fleet Program (TCFP)

The Texas Clean Fleet Program (TCFP) offers grants to replace heavy-duty and light-duty on-road diesel vehicles with alternative fuel and hybrid vehicles.

Texas Clean School Bus (TCSB) Program

The goal of the Texas Clean School Bus Program is to reduce children’s exposure to diesel exhaust in and around diesel school buses. Under the program, TCEQ will provide grants to offset the incremental cost of eligible projects that reduce diesel exhaust emissions. Eligible projects include the replacement or retrofit of diesel-fueled school buses.

Light-Duty Motor Vehicle Purchase or Lease Incentive Program (LDPLIP)

The Light-Duty Motor Vehicle Purchase or Lease Incentive Program (LDPLIP) will provide rebate incentives statewide to persons who purchase or lease an eligible new light-duty motor vehicle powered by compressed natural gas (CNG), liquefied petroleum gas (LPG), or hydrogen fuel cells or other electric drives (plug-in or plug-in hybrid).  Only vehicles purchased in Texas are eligible for the incentive.

Texas Natural Gas Vehicle Grant Program (TNGVGP)

The TNGVGP provides grants to encourage an entity that owns and operates a heavy-duty or medium-duty motor vehicle to repower the vehicle with a natural gas engine or replace the vehicle with a natural gas vehicle. Grant applicants are no longer required to go through a Participating Dealer under contract with the TCEQ to apply.

Governmental Alternative Fuel Fleet (GAFF) Grant Program

The GAFF Grant Program will provide grants to assist eligible applicants in purchasing or leasing new motor vehicles that operate primarily on compressed natural gas, liquefied natural gas, liquefied petroleum gas, hydrogen fuel cells, or electricity. The GAFF Grant Program will also provide grants to assist eligible applicants in the installation of refueling infrastructure for grant-funded vehicles.

Need more information?

Call (toll-free)
800-919-TERP (8377)

Or see other contact info.

Need to make post-contract changes?

Upcoming TERP Meetings and Workshops

Information for potential applicants and interested parties: grant program workshops, application assistance sessions, and public meetings

TERP Project Summary Reports and Publications

Find TERP project summary reports and publications here.

Request Reimbursement

Forms and Instructions for Requesting Reimbursement
(For those already with a grant)

Meeting Your Grant Disposition Requirements 

Forms and Instructions for Meeting your Disposition Requirements
(For those already with a grant)

Report Usage for TERP Grant-Funded Equipment

Forms and Instructions for Reporting Your Usage
TERP GPS Monitoring

Liquefied Gas Tax Information