Rebate Grants Program

• Applicants who qualify as a TERP small business. A TERP small business is defined as an applicant who owns and operates no more than five pieces of equipment, one of which is an on-road diesel-powered vehicle or a non-road diesel-powered piece of equipment. The equipment being replaced must have been owned by the applicant for at least two years immediately preceding the application date.
• Any person who operates or plans to operate on-road heavy-duty vehicles or non-road equipment primarily in one or more of the nonattainment areas or other eligible counties of the state is potentially eligible for a grant.
• Eligible applicants include individuals, corporations, organizations, governments or governmental subdivisions or agencies, business trusts, partnerships, associations, or any other legal entity who qualify as a TERP small business.
• Eligible applicants must also have the legal authority to dispose of the vehicle being replaced in accordance with the requirements outlined in Section 4.0 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.

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.

• 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 75% 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 following documents before completing and submitting the Application Forms:

Download the Grant Table for your project type to determine the maximum grant amount you are eligible for.

You may use the following links to help determine the engine family code and federal emission standard for your vehicle/equipment:

Download the Rebate Grants program application instructions and application forms below.

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.

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.