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Rebate Grants Program

A simplified first-come, first-served grant program to upgrade or replace diesel heavy-duty vehicles and/or equipment.

A Program of the Texas Emissions Reduction Plan (TERP)

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.
The TCEQ has received a sufficient number of applications to award all available funding under the Rebate Grants Program and suspends acceptance of applications effective 5:00 p.m., March 21, 2019. The TCEQ may remove the suspension should additional grant funds become available.

 

AMOUNT OF FUNDING REQUESTED AMOUNT OF FUNDING AWARDED $ AMOUNT REMAINING
$7,895,976.89 $0 $5,000,000
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Reimbursement

Find the instructions and forms you need to submit a Request for Reimbursement (RFR).

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Disposition

Find disposition forms and learn how to properly destroy your old equipment.

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Usage Reporting

Find instructions and forms you need to meet the reporting requirements for your TERP grant.

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Meetings & Workshops

Find information on upcoming TERP workshops and public meetings for the different TERP grant programs.

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Eligible Counties

Find information on TERP eligible counties and designated highways and roadways.

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TERP GPS Monitoring

Find information and pricing on the TERP GPS monitoring provider.


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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:

  • 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.

rebate-eligible-counties-map2

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

The replacement of an eligible vehicle or piece of equipment with a newer vehicle or piece of equipment.
  • 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 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.

To be eligible for funding, the engine on the new vehicle or piece of equipment must be certified to emit at least 25% less NOx than required under the current standard. Certified means approved by EPA, the CARB, or otherwise accepted by the TCEQ.
  • 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).

This page outlines the process for completing and submitting a grant application under the Rebate Grants program.


The TCEQ has received a sufficient number of applications to award all available funding under the Rebate Grants Program and suspends acceptance of applications effective 5:00 p.m., March 21, 2019. The TCEQ may remove the suspension should additional grant funds become available.

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.


Non-Road Heavy-Duty Equipment
Equipment Type 5 Year Projects 7 Year Projects
Agricultural Tractors PDF PDF
Container Handlers PDF PDF
Combines PDF PDF
Cranes PDF PDF
Crawler Tractors PDF PDF
Crushing-Processing Equipment PDF PDF
Excavators PDF PDF
Forklifts PDF PDF
Graders PDF PDF
Non-Road Terminal Tractors PDF PDF
Off-Highway Tractors PDF PDF
Off-Highway Trucks PDF PDF
On-Road Terminal Tractors PDF PDF
Rough Terrain Forklifts PDF PDF
Rubber Tire Loaders PDF PDF
Skid Steer Loaders PDF PDF
Tractor Backhoe Loaders PDF PDF
On-Road Heavy-Duty Equipment
Gross Vehicle Weight Rating (GVWR) in lbs 5 Year Projects 7 Year Projects
GVWR 8,501-10,000 (HDDV2b) PDF PDF
GVWR 10,001-14,000 (HDDV3) PDF PDF
GVWR 14,001-16,000 (HDDV4) PDF PDF
GVWR 16,001-19,500 (HDDV5) PDF PDF
GVWR 19,501-26,000 (HDDV6) PDF PDF
GVWR 26,001-33,000 (HDDV7) PDF PDF
GVWR 33,001-60,000 (HDDV8a) PDF PDF
GVWR Greater Than 60,000 - Haul Trucks Only PDF PDF
GVWR Greater Than 60,000 - Vehicles Other Than Haul Trucks PDF PDF
School Buses (HDDBS) PDF PDF
Transit or Urban Buses (HDDBT) PDF PDF

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)Exit the TCEQ: This link is provided to assist you in determining the engine family code and federal emission standard for on-road vehicles.

California Air Resources Board Engine Certification Database (Non-Road)Exit the TCEQ: This link is provided to assist you in determining the engine family code and federal emission standard for non-road equipment.

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. PDF

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)Exit the TCEQ

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 Quality Division
Implementation Grants Section, MC-204 (Rebate Grants)
P.O. Box 13087
Austin, TX 78711-3087
Express Mail:
Texas Commission on Environmental Quality
Air Quality Division
Implementation Grants 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

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 Quality Division
Implementation Grants Section, MC-204
P.O. Box 13087
Austin, TX 78711-3087
Express Mail:
Texas Commission on Environmental Quality
Air Quality Division
Implementation Grants Section, MC-204
12100 Park 35 Circle
Austin, TX 78753