Rebate Grants Program

On-Road Vehicles (old vehicle)

An on-road vehicle eligible for replacement or repower must:

• be a heavy-duty on-road vehicle with a gross vehicle weight rating (GVWR) greater than 8,500 pounds (lbs.) and be certified to or have a diesel engine certified to the United States (US) Environmental Protection Agency (EPA) heavy-duty engine emissions standards.
• have been owned, leased, or otherwise commercially financed and registered and operated by the applicant in Texas for at least the two years immediately preceding the application signature date;
• have been used in its primary function in the routine operations of the applicant in Texas for at least the two years immediately preceding the application signature date; and
• be in operating condition with at least five years of useful life remaining.

Non-Road Equipment (old equipment)

Non-road equipment eligible for replacement or repower must:

• be powered by a diesel engine rated at 25 horsepower (hp) or greater;
• have an engine that is certified to the EPA emissions standards for non-road engines;
• have been continuously owned and operated by the applicant in Texas for at least the two years immediately preceding the application signature date;
• have been used in its primary function in the routine operations of the applicant in Texas for at least the two years immediately preceding the application signature date; and

Replacement On-Road Vehicles (new vehicle)

The replacement on-road vehicle must:

• be certified to emit at least 25% less nitrogen oxides (NO_x) than the old vehicle;
• have a vehicle model year no more than three years older than the calendar year in which it was purchased; and
• be of the same type, weight category, and body and axle configuration as the vehicle being replaced unless otherwise agreed to by TCEQ. The replacement vehicle must be configured and intended for use in the same application or vocation as the vehicle being replaced. TCEQ may accept vehicles of a different type, weight category, or body and axle configuration to account for the latest technology or vehicle type used in a specific vocation.
• Unless the vocational type of the new vehicle is exempt from registration requirements, the vehicle must be registered for operation in Texas.

Replacement Non-Road Equipment (new equipment)

The replacement non-road equipment must:

• be certified to emit at least 25% less nitrogen oxides (NO_x) than the old equipment;
• have an engine model year no more than three years older than the calendar year in which it was purchased; and
• be of the same type and intended for the same use in the same application or vocation.

Repower of On-Road Vehicles and Non-Road Equipment (new engine)

The new, rebuilt, or remanufactured engine must:

• be certified or verified to emit 25% less nitrogen oxides (NO_x) than the engine being repowered or replaced. TCEQ requires “Certification” or verification by either the EPA, the CARB, or another entity that has been deemed acceptable by TCEQ;
• be certified or verified to meet the same category of emission standards as the original engine (e.g., on-road or non-road); and
• use only components procured from the original engine manufacturer (OEM) or an authorized reseller unless otherwise approved by the TCEQ on a case-by-case basis.

New purchase projects must:

• include one of the on-road vehicle types listed as new purchase options on the Rebate Grant Tables;
• unless the new on-road vehicle operates exclusively on electricity (e.g., hydrogen, battery-electric), be certified by the EPA or the CARB to an emission standard, including family emission limits (FEL), that is less than or equal to 0.02 grams per brakehorsepower hour (g/bhp-hr) of NO_x;
• use at least one of the following fuels: natural gas, propane, hydrogen, or electricity; and
• be a new vehicle that has not been subject to first sale.

• the installation of battery-powered auxiliary power units (APU) which, at a minimum, can offset 4 continuous hours of engine idle operation time;
• the installation of a battery-powered refrigeration unit on refrigeration trucks or trailers that can accept a direct plug-in connection while parked; and
• the installation of a heavy-duty electric hybrid power train system which can demonstrably reduce fuel consumption by at least 5%.

• have a model year no more than three years older than the calendar year in which the on-vehicle electrification equipment was purchased;
• must be owned by the grant applicant, including the installed add-on equipment; and
• meet all the requirements of Section 2.4 or Section 2.5 of the RFGA.

1. Allowable alternative fuels are as follows:
1. Electricity
2. Hydrogen
3. Compressed Natural Gas (CNG)
4. Liquified Natural Gas (LNG)
5. Propane (LPG)
6. Methanol
2. The refueling infrastructure must provide, at a minimum, refueling capacity to the on-road vehicles or non-road equipment purchased, replaced, or repowered through this grant program.
3. Applicants may expand existing onsite refueling infrastructure to accommodate the additional new on-road vehicles or non-road equipment in lieu of installing new service.
4. Applicants are required to be the owner of the site where the refueling infrastructure equipment will be installed.
5. Applicants may only include one refueling infrastructure project site and one type of alternative fuel per application.
6. All grant-funded refueling infrastructure must be purchased by the applicant and not leased.

Applicants will receive up to the lesser of the following options:

1. The grant amounts shown in the Rebate Grant Tables below; or
2. 80% of the incremental cost (see Section 3.3 of the RFGA).

Applicants will receive up to the lesser of the following options:

1. The grant amounts shown in the Rebate Grant Tables; or
2. The incremental cost of the project (as defined in Section 3.3(c) of the RFGA).

Applicants will receive up to the lesser of the following options:

1. $100,000 plus $100,000 for each on-road vehicle or non-road piece of equipment that is fueled by the associated infrastructure in the project;
2. 50% of the incremental cost of the refueling infrastructure project; or
3. $600,000