Questions or Comments: terp@tceq.texas.gov
You are here:

New Technology Implementation Grant Program (NTIG)

The NTIG program provides grants to offset the incremental cost of the implementation of existing technologies that reduce the emission of pollutants from facilities and other stationary sources, which may also include energy storage projects in Texas.

A Program of the Texas Emissions Reduction Plan (TERP)

No Longer Accepting Comments

 The NTIG Program will be opening soon. Join our TERP Hot Topics email listExit the TCEQ to get updates. The information below is provided for reference only. This webpage will be updated with the final program requirements and grant documents upon the opening of the program.

Contact Information

Charmini Kodituwakku
800-919-TERP (8377)

Program Summary

The proposed eligibility and scoring criteria for the upcoming NTIG grant round are described below. TCEQ requests written comments on these criteria be submitted by email to TERP-Comments@tceq.texas.gov no later than November 18, 2022 at 5:00 pm CT. Any responses to comments will be posted on the TERP website at terpgrants.org. TCEQ has sole discretion as to whether to respond to comments. TCEQ may not reply to comments received after November 18, 2022.

Final requirements for NTIG projects will be published in the NTIG Request for Grant Applications (RFGA) upon the opening of the program.

  • Applicants (including an individual or business and all of its associated legal affiliates) must be the owner of a facility located in the state of Texas unless the applicant establishes permission from the site owner to install and operate the grant-funded project at the site during the contract.
  • Applicants must provide evidence of operational control and compliance with all applicable Texas laws.
    • Business entities such as corporations or partnerships must have an active registration with the Texas Secretary of State by the date of the grant round opening. Businesses must maintain an active registration during the contract period if awarded a grant.

To be eligible, any project requiring a permit must have an active permit at the time of application submission. Applications must show reasonable evidence that the proposed technology is capable of providing a significant reduction in emissions.

New Technology - Stationary Sources

New technology projects that reduce emissions of regulated pollutants from stationary sources.

New Technology - Oil and Gas Projects

New technology projects that reduce emissions from upstream and midstream oil and gas completions, production, gathering, storage, processing, and transmission activities through:

  • Replacement, repower or retrofit of stationary compressor engines;
  • Installation of systems to reduce or eliminate loss of gas, flaring of gas, or burning of gas using other combustion-control devices; and
  • Installation of systems to reduce flaring and other site emissions.

Electricity-Storage Projects

Electricity-storage projects related to renewable energy, such as:

  • Compressed-air energy storage;
  • Pumped hydropower or other gravity batteries;
  • Sodium-sulfur storage batteries;
  • Energy-retaining flywheels; and
  • Lithium-ion batteries;

Activities eligible for funding under this category must meet the following requirements:

  • Applicants must propose an electricity storage project that clearly demonstrates that it is related to renewable energy in Texas. These projects may include electricity storage produced from wind, solar, or other renewable generation that provides an efficient means of making stored energy available during periods of peak energy use.

The total amount to be awarded under this grant program will depend upon the amount of revenue received in the TERP Trust Fund at the time of the grant round opening. Subject to the projected $9.8 million in total available funding for this program, TCEQ will consider applications on a competitive basis, with no maximum award amount per project. A minimum of $1 million will be set aside for Electricity Storage Projects. Additional funding allocations may be set according to project type in the RFGA.

Projects selected for funding may be awarded a grant amount not to exceed 50% of the costs to implement the project. Applicants awarded a grant will be required to match the grant amount. This matching requirement will not be waived.

TCEQ may not award a grant that, net of taxes, provides an amount that exceeds the incremental cost of the proposed project. In determining the amount of a grant, TCEQ shall reduce the incremental cost of a proposed project by the value of any existing financial incentive that directly reduces the cost of the proposed project, including tax credits or deductions, other grants, or any other public financial assistance.

Projects selected for funding must use the grant to pay the incremental costs of the purchase, lease, or installation of the project for which the grant is made, which may include reasonable and necessary expenses for the labor needed to install emissions-reducing equipment.

The recipient may use the grant for the costs of operating and maintaining the emissions-reducing equipment.

Activities for reimbursement are those that are directly related to the success of the project. All costs should be specifically detailed in the application. To be eligible for reimbursement, costs documented on reimbursement forms must clearly be allocated to activities under the NTIG grant and fall under the categories outlined in the Project Application.

  • Costs incurred prior to opening of grant round;
  • Escalation, inflation, indeterminates, and contingencies;
  • Facility improvements and equipment not directly associated with the project;
  • Cost for preparation of the application;
  • Insurance Premiums;
  • Food and drink;
  • Purchase of testing equipment;
  • Fees for TCEQ-issued permits;
  • Administrative costs including overhead, rent, utilities, and administrative expenses such as general office supplies, telephones, tools (wrenches, screwdrivers, etc.) and other overhead costs on doing business; and
  • Expenses related to projects required as Supplemental Environmental Projects (SEP) or that bring the project’s emissions into compliance with state or federal requirements in effect at the time of application submission are not eligible under this grant program.

As part of the application review, TCEQ will consider the following:

  • The projected potential for reduced emissions and the cost-effectiveness of the new technology;
  • The potential for the new technology to contribute significantly to air quality goals; and
  • The strength of the implementation plan. Information on planned water usage for proposed projects must be consistent with the State water plan.

Applications must contain a plan for implementation of a program that will provide project information and education to the public in the areas subject to public notice under federal and state permitting requirements for the proposed project. The plan must provide for a publicly accessible informational Internet website.

Applications must be substantially complete and must be submitted by the application deadline. Submission of a grant application that is not substantially complete will be disqualified from consideration under this RFGA. A substantially complete application must include:

  • All pages of the application
  • All required attachments
  • Complete applicant contact information
  • All required signatures of the applicant and;
  • All the information that is necessary for TCEQ to review the application according to the program requirements. TCEQ will evaluate proposals according to the selection criteria in the RFGA.
  1. In awarding grants under this RFGA, TCEQ may give preference to projects that:
    1. involve the transport, use, recovery for use, or prevention of the loss of natural resources originating or produced in this state;
    2. contain an energy efficiency component;
    3. include the use of solar, wind, or other renewable energy sources;
    4. recover waste heat from the combustion of natural resources and use the heat to generate electricity; or
    5. reduce flaring emissions and other site emissions.
  2. Projects that include more than one of the criteria described above shall be given a greater preference in the award of grants.
  3. The commission may give preferences based on the criteria above only if the cost-effectiveness and emission performance of the project are comparable to those of a project not claiming such a preference.

Scoring criteria may focus on the potential for reducing emissions while remaining neutral as to the type of technology proposed, or may target types of promising technology.

Quarterly reports on the progress of the grant-funded project will be required throughout the implementation phase of the project and annual reports will be required during the activity life of the project.

For more information, contact TERP staff at TERP-Comments@tceq.texas.gov or 800-919-TERP (8377).