Rebate Grants Program
A Program of the Texas Emissions Reduction Plan (TERP)
Rebate Program Information
Rebate Program Funding Information
| Funds Allocated FY 2020/2021 | $10,000,000 |
| Funds Requested as of 08/21/20 | $11,117,376 |
| Funds Awarded as of 9/18/20 | $2,622,715 |
How to Apply
Applicants should review the following documents for detailed requirements for each project type and information about applicant eligibility:
Eligible Applicants
Eligible applicants include individuals, corporations, organizations, governments or governmental subdivisions or agencies, business trusts, partnerships, associations, or any other legal entity. Applicants meeting the definition of a small business may be provided special consideration for funding.
Eligible Equipment
Eligible applicants must have owned and operated the equipment being replaced for at least the two years immediately preceding the application signature date. Equipment used primarily for competition or recreational purposes are not eligible for funding under any of the Rebate 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 FY20 Rebate Grants program 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 equpment federal emission standard
- Heavy-Duty Non-Road Equipment: engines must have horsepower (hp) rating of 25 or greater
Eligible Project Categories
The replacement of eligible equipment with newer 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 model year of the replacement equipment must not be more than three years older than the calendar year in which the equipment is purchased. Non-Road Equipment: the manufacture year of the engine installed on the replacement equipment must not be more than three years older than the calendar year in which the engine is purchased.
- The replacement equipment or 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 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 registered in Texas for the two years immediately preceding the application 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.
The replacement (repower) of an existing engine in an eligible vehicle or 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 vehicle at the time of application, and must have continuously owned, commercially financed, or leased the vehicle 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 date
- Unless the vocational type of the vehicle is exempt from inspection and registration requirements, the vehicle must currently be registered for operation in Texas and must have been continuously registered in Texas for the two years immediately preceding the application date
- The vehicle or 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
Operation Requirements for Grant-Funded Equipment
- Equipment funded under the Rebate Grants program are intended to reduce emissions within the eligible counties
- For Non-Road equipment and On-Road equipment, the applicant must commit to at least 55% annual usage in the eligible counties
- Grant recipients must monitor and report annually on mileage and location of use over the activity life of the grant (5 or 7 years)
Review the grant table for your project type to determine the maximum grant amount you are eligible for:
| Equipment Type | 5 Year Projects | 7 Year Projects |
| Agricultural Tractors | ||
| Container Handlers | ||
| Combines | ||
| Cranes | ||
| Crawler Tractors | ||
| Crushing-Processing Equipment | ||
| Excavators | ||
| Forklifts | ||
| Graders | ||
| Non-Road Terminal Tractors | ||
| Off-Highway Tractors | ||
| Off-Highway Trucks | ||
| On-Road Terminal Tractors | ||
| Rough Terrain Forklifts | ||
| Rubber Tire Loaders | ||
| Skid Steer Loaders | ||
| Tractor Backhoe Loaders |
| Gross Vehicle Weight Rating (GVWR) in lbs | 5 Year Projects | 7 Year Projects |
| GVWR 8,501-10,000 (HDDV2b) | ||
| GVWR 10,001-14,000 (HDDV3) | ||
| GVWR 14,001-16,000 (HDDV4) | ||
| GVWR 16,001-19,500 (HDDV5) | ||
| GVWR 19,501-26,000 (HDDV6) | ||
| GVWR 26,001-33,000 (HDDV7) | ||
| GVWR 33,001-60,000 (HDDV8a) | ||
| GVWR Greater Than 60,000 - Haul Trucks Only | ||
| GVWR Greater Than 60,000 - Vehicles Other Than Haul Trucks | ||
| School Buses (HDDBS) | ||
| Transit or Urban Buses (HDDBT) |
Use the following resources to help determine the engine family code and federal emission standard for your vehicle/equipment:
Choose the application instructions for your project type:
Download and complete the project application and W-9 form:
- Project Application (TCEQ 20332a)
- W-9 Form - Request for Taxpayer Identification Number and Certification
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 may be submitted via mail or electronic mail to TERP@tceq.texas.gov on or before 5:00 p.m. Central Standard Time, November 12, 2020. If submitting by mail, use one of the addresses below:
Regular Post Delivery
Texas Commission on Environmental Quality
Air Grants Division
Rebate, MC-204
P.O. Box 13087
Austin, TX 78711-3087
Express Delivery
Texas Commission on Environmental Quality
Air Grants Division
Rebate, MC-204
12100 Park 35 Circle
Building F, 1st Floor, Room 1301
Austin, TX 78753
Questions on obtaining the RFGA and RebateExample Contract, determining the eligibility of a project, or completing and submitting an application?
Contact the TERP staff at terp@tceq.texas.gov to discuss.