Rebate Grants Program
A Program of the Texas Emissions Reduction Plan (TERP)
The Texas Commission on Environmental Quality (TCEQ) Texas Emissions Reduction Plan (TERP) program announces its 30-day notice for the upcoming Rebate Grants program. Rebate Grants will be awarded on a first-come, first served basis to repower or replace older heavy-duty diesel vehicles and select non-road equipment.
Application forms may not be submitted until the grant program officially opens on or after July 21, 2020. Previous grant documents including the project application and Rebate Grant Amount Tables are provided for your reference on the "How to Apply" tab. Final grant documents for the 2020 Rebate Grants program will be made available once the grant round officially opens.
Welcome to the TERP Rebate Grants homepage. The Rebate Grants program is a simplified first-come, first-served grant program to upgrade or replace diesel, heavy-duty vehicles and/or equipment.
Reimbursement
Find the instructions and forms you need to submit a Request for Reimbursement (RFR).
Usage Reporting
Find instructions and forms you need to meet the reporting requirements for your TERP grant.
Meetings & Workshops
Find information on upcoming TERP workshops and public meetings for the different TERP grant programs.
Eligible Counties
Find information on the eligible counties under the Rebate Grants program.
How Do I Know if I Am Eligible for a Grant?
This section lists general information about eligible applicants, eligible counties, and the types of projects that may be eligible for grant funding. For complete information on the types of projects and expenses that may be eligible for a grant, refer to the Request for Grant Applications (RFGA):
Read the RFGA
General Information about eligible applicants, eligible counties, and the types of projects that may be funded is provided below:
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 applicants must:
- have owned and operated the equipment being replaced for at least the two years immediately preceding the application signature date; and
- commit to use the grant-funded equipment at least 55% of the annual mileage or hours of operation in one or more of the eligible areas.
The counties in which projects may be eligible for funding include the state’s air quality nonattainment areas and other affected counties.
Click here to view map of eligible counties.
Vehicles and 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 vehicles and equipment for a particular funding period. The types of vehicles and equipment eligible under the FY19 Rebate Grants program funding period include:
- Heavy-Duty On-Road Vehicles: 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 vehicle federal emission standard.
- Heavy-Duty Non-Road Equipment: engines must have horsepower (hp) rating of 25 or greater.
Replacement
- Vehicles and 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 Vehicles: the model year of the replacement vehicle must be 2016 or newer.
- Non-Road Equipment: the manufacture year of the engine installed on the replacement equipment must be 2016 or newer.
- The replacement vehicle or equipment must be certified to emit at least 25% less NOx than the vehicle or equipment 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.
Repower
- 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.
- Vehicles and Equipment funded under the Rebate Grants program are intended to reduce emissions within the eligible counties.
- For Non-Road equipment and On-Road vehicles, 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).
This page outlines the process for completing and submitting a grant application under the Rebate Grants program.
Follow these steps:
Review the following documents before completing and submitting the Application Forms:
|
Request for Grant Applications (RFGA) - PDF: The RFGA is the formal announcement of funding opportunities under the Rebate Grants program, and serves as a guide for determining applicant eligibility. |
|
Addendum 1 - PDF: This Addendum serves to suspend the acceptance of applications due to the availability of grant funds. The TCEQ may remove the suspension should additional grant funds become available. |
|
Rebate Example Contract - PDF: The Rebate Example Contract contains the terms and conditions which are the legal criteria that an applicant must follow if awarded a grant under the Rebate Program. |
Download 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) |
You may use the following links to help determine the engine family code and federal emission standard for your vehicle/equipment:
|
California Air Resources Board Engine Certification Database (On-Road) |
|
California Air Resources Board Engine Certification Database (Non-Road) |
Download the Rebate Grants program application instructions and application forms below.
| Instructions | Application | |
| Rebate Application (TCEQ-20332a) | Replacement Repower | Replacement & Repower Application |
| Waiver Form | |
| Program Waiver Request Form (pdf): To request a waiver of certain program requirements, refer to Section 4.1 of the RFGA and complete the Program Waiver Request Form. This form must be submitted with the Application. |
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.
W-9 Form - Request for Taxpayer Identification Number and Certification (pdf)
Complete your application using the instructions provided. Applicants must complete and submit via regular or express mail two (2) original signed copies of the application and W-9 Form in order to be considered for eligibility. Application forms submitted electronically will not be accepted.
| Regular Mail: Texas Commission on Environmental Quality Air Grants Division Grant Development & Management Section, MC-204 (Rebate Grants) P.O. Box 13087 Austin, TX 78711-3087 |
Express Mail: Texas Commission on Environmental Quality Air Grants Division Grant Development & Management Section, MC-204 (Rebate Grants) 12100 Park 35 Circle Austin, TX 78753 |
Questions on obtaining the Rebate Grants program RFGA and Example Contract, determining the eligibility of a project, or completing and submitting applications? Contact TERP staff to discuss.
Reports and Information
- FY19 Rebate Applications Selected for Award
- Additional reports and guidelines associated with the Rebate Grants program, and other TERP grant programs, can be found on the TERP Project Summary Reports and Publications webpage.
Workshop Presentations
Questions or Comments?
If you have questions regarding the TCEQ's Texas Emissions Reduction Plan (TERP) program, you may contact us toll free at 800-919-TERP (8377).
You may also contact us by email at terp@tceq.texas.gov or send correspondence to the following addresses:
| Regular Mail: Texas Commission on Environmental Quality Air Grants Division Grant Development & Management Section, MC-204 P.O. Box 13087 Austin, TX 78711-3087 |
Express Mail: Texas Commission on Environmental Quality Air Grants Division Grant Development & Management Section, MC-204 12100 Park 35 Circle Austin, TX 78753 |
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