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Emissions Reduction Incentive Grants (ERIG) Program

TERP

A Program of the Texas Emissions Reduction Plan (TERP)

Now Accepting Applications

The TCEQ is now accepting applications for funding consideration under the Emissions Reduction Incentive Grants (ERIG) Program. Applications will be accepted on a competitive basis during the grant solicitation period. Applications will be accepted for consideration during this grant period only if received on the premises of TCEQ or via electronic mail to TERPapply@tceq.texas.gov no later than 5:00 p.m. Central Time, on January 11, 2021.

How to Apply

Applicants should review the following documents for detailed requirements and information about applicant eligibility:

  • Any person who operates or plans to operate on-road heavy-duty equipment, non-road equipment, or stationary engines primarily in one or more of the nonattainment areas or other eligible counties of the state is potentially eligible for a grant. For infrastructure projects, persons owning or operating the infrastructure in an eligible county may also be eligible for funding
  • Eligible applicants include individuals, corporations, organizations, governments or governmental subdivisions or agencies, business trusts, partnerships, associations, or any other legal entity
  • Eligible applicants must also have the legal authority to dispose of the equipment being replaced in accordance with the requirements outlined in Section 3.0 of the RFGA

The counties in which projects may be eligible for funding include the state’s air quality nonattainment areas and other affected counties.

Map of eligible counties

Eligible Equipment

Equipment used primarily for competition or recreational purposes are not eligible for funding under any of the ERIG project categories. The TCEQ may more narrowly define or limit the types of eligible equipment for a particular funding period. The types of equipment eligible under the FY21 ERIG funding period include:


  • Heavy-Duty On-Road Equipment: must have a gross vehicle weight rating (GVWR) of 8,501 pounds or more and be certified by the Environmental Protection Agency (EPA) to the heavy-duty equipment federal emission standard
  • Heavy-Duty Non-Road Equipment, Stationary Equipment, and Marine Vessels: engines must have horsepower (hp) rating of 25 or greater
  • Locomotives

The replacement of an eligible piece of equipment with a newer piece of equipment.

  • Equipment being replaced must be in good operating condition with a remaining useful life consistent with the activity life selected in the application
  • On-Road Equipment: the new on-road equipment model year may not be more than three years prior to the calendar year in which the equipment is purchased
  • Non-Road Equipment: the new non-road engine year may not be more than three years prior to the calendar year in which the equipment is purchased
  • The replacement equipment must be certified to emit at least 25% less NOx than the equipment being replaced. Certified means approved by the EPA, the CARB, or otherwise accepted by the TCEQ
  • The applicant must own the equipment at the time of application, and must have continuously owned, commercially financed, or leased the equipment and have been listed as the owner on the title or the lessee on the lease agreement for the two years immediately preceding the application signature date
  • Unless the vocational type of the equipment is exempt from inspection and registration requirements, the equipment must currently be registered for operation in Texas and must have been continuously inspected and registered in Texas for the two years immediately preceding the application signature date
  • The equipment must have been used in its primary function in the routine operations of the applicant in Texas for the two years immediately preceding the application signature date and be capable of performing its primary function for the duration of the project Activity Life

The replacement (repower) of an existing engine in an eligible piece of equipment with a new, rebuilt, or remanufactured engine.

  • The new engine must be certified to emit 25% less NOx than the engine being replaced. Certified means approved by the EPA, the CARB, or otherwise accepted by the TCEQ
  • The applicant must own the equipment at the time of application, and must have continuously owned, commercially financed, or leased the equipment and have been listed as the owner on the title or the lessee on the lease agreement for the two years immediately preceding the application signature date
  • Unless the vocational type of the equipment is exempt from inspection and registration requirements, the equipment must currently be registered for operation in Texas and must have been continuously inspected and registered in Texas for the two years immediately preceding the application signature date
  • The equipment must have been used in its primary function in the routine operations of the applicant in Texas for the two years immediately preceding the application date and be capable of performing its primary function for the duration of the project Activity Life

Contact TERP staff at TERP@tceq.texas.gov or 1-800-919-TERP (8377) for more information if you have any of the project categories below:

  • New Purchase or Lease: To be eligible for funding, the engine on the new piece of equipment must be certified to emit at least 25% less NOx than required under the current standard. Certified means approved by EPA, the CARB, or otherwise accepted by the TCEQ
  • Retrofit or Add-On of Emission-Reduction Technology: The retrofit or add-on of emission-reduction technology to an existing engine in an eligible piece of equipment. Except for retrofits with certain dual-fuel conversion systems, the equipment must be currently owned by the applicant and the retrofit or add-on systems must be certified or verified to emit at least 25% less NOx than the engine prior to the retrofit
  • On-Equipment Electrification and Idle Reduction Infrastructure: The purchase and installation of equipment that enables equipment to use electric power to operate, while the equipment is parked, the systems normally supplied power by the propulsion engine or another on-board internal combustion engine that emits NOx
  • On-Site Electrification and Idle Reduction Infrastructure: The purchase and installation of on-site infrastructure including auxiliary power units designed to dispense electricity to motor vehicles, on-road heavy-duty On-Equipment, and non-road equipment, including marine vessels and locomotives
  • Use of Qualifying Fuel: The TCEQ is not accepting applications under this application period for projects to fund the incremental costs of a qualifying fuel
  • Rail Relocation and Improvement: The relocation of rail lines to reduce the number of grade crossings, improvements at rail intersections, and other improvements that will directly result in the reduction of locomotive and/or equipment engine idling at rail intersections. Eligible rail intersections may include the intersection of two rail lines or an intersection of a highway or roadway and a rail line, commonly referred to as a highway-rail grade crossing. The grant recipient must own or otherwise control the rail line, right-of-way, or the facility being improved

Operation Requirements for Grant-Funded Equipment

  • Equipment funded under the ERIG Program are intended to reduce emissions within the eligible counties
  • For Non-Road equipment, the applicant must commit to at least 55% annual usage in the eligible counties
  • For On-Road equipment, the applicant must designate the percentage of annual mileage that will occur in the eligible counties, which may not be less than 25%. In addition to the percentage of use in the eligible counties, the applicant must commit to operating the equipment at least 55% of annual usage in a combination of eligible counties and designated highways and roadways
  • Grant recipients must monitor and report annually on mileage and location of use over the activity life of the grant (5, 6, or 7 years)

Download the Grant Estimator and Technical Supplement for your project type. The Technical Supplement provides step-by-step instructions for completing the grant amount calculations.

Each of the pages of the Grant Estimator is on an individual Excel worksheet within the Workbook. Use the tabs located at the bottom of the worksheet to access each page.

In order to use the Excel Grant Estimator, please follow these directions:

  1. Download the Grant Estimator for your project type and save to your computer
  2. Start entering activity data on Activity Tab 1
  3. Enter the requested information using the Technical Supplement as a guide. Call or email TCEQ if your replacement equipment is powered by an alternative fuel
  4. Repeat steps 3 & 4 for each activity included in the application
  5. Arrive at your estimated grant amount

Use the following resources to help determine the engine family code and federal emission standard for your equipment:

Find the Emission Standard for the equipment being replaced or repowered using the table applicable to your equipment type:

Dual-Fuel Conversions

Retrofit activities to convert a heavy-duty on-road or non-road engine to operate under a dual-fuel configuration that uses natural gas and diesel fuel may be considered using a different minimum standard for the reduction in NOx than is required for other types of projects. The minimum standards will be established in each RFGA(pdf).

How to Request a Determination of Emission Reduction Factors:

In order to determine a NOx emissions percentage reduction factor to use in the application for a dual-fuel retrofit project, manufacturers may submit emissions test data to the TCEQ to evaluate the emissions reductions that will be accepted through the use of a particular system. The following notice and procedures documents provide information for manufacturers to complete this process.

Dual-Fuel Conversion Systems Evaluated by the TCEQ:

The dual-fuel conversion systems that have been evaluated by the TCEQ and assigned a NOx emissions percentage reduction factor are listed below. Copies of the letters sent to the manufacturers assigning a percentage reduction factor for each system evaluated may be obtained from the links listed below.


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

Project Type

Other Project Categories

Supplemental Forms

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:

  • Project Application
  • W-9

Applications will be accepted for consideration during this grant period only if received on the premises of TCEQ or via electronic mail to TERPapply@tceq.texas.gov no later than 5:00 p.m. Central Time, on January 11, 2021. If submitting by mail, use one of the addresses below:

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

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

Questions on obtaining the RFGA and ERIG Example Contract, determining the eligibility of a project, or completing and submitting an application?

Contact the TERP staff at terp@tceq.texas.gov to discuss.