Grants for Drayage Trucks and Cargo Handling Equipment

Eligible applicants

• Individuals, corporations, organizations, governments, government agencies, and any other legal entity. May include a corporation headquartered outside of Texas that operates eligible equipment in Texas.

Eligible projects

• Replacing or repowering drayage trucks and cargo handling equipment with newer ones.
• New vehicles and equipment must emit nitrogen oxides (NO_X) at a rate that is at least 25% less than the vehicles or equipment being replaced.
• Applicants must have owned or leased eligible vehicles and equipment for at least the two years preceding the signature date on the application.

Eligible areas

• Eligible Seaports and Rail Yards
• Seaports or rail yards must be in an eligible county.
• Eligible Counties for Location of Seaports and Rail Yards
• Equipment must operate in nonattainment areas or affected counties.
• Eligible Counties for Usage
• Old vehicles and equipment must have operated in eligible seaports or rail yards for at least 200 days per year for the preceding two years.
• New or repowered vehicles and equipment must operate 200 days per year in eligible seaports or rail yards for the duration of the project (five years). In addition, 50% or 80% of the annual and total use must occur in nonattainment areas and affected counties.

Review documents to ensure eligibility

• Request for Grant Applications
• Addendum No. 1
• Addendum No. 2
• Grant Program Summary
• Program Guidelines
• Example Grant Contract
• Webinar Presentation in English
• Webinar Presentation in Spanish

Grant recipients may be eligible for up to 80% of the eligible costs associated with the purchase, lease, or repower of the equipment. Grant cannot exceed the maximum amount listed in the Maximum Eligible Grant Amount Tables.

Maximum Eligible Grant Amount Tables

Download the table applicable to your project.

If the tables below do not include the vehicle or piece of equipment you want to apply for, please contact us at 800-919-TERP (8377).

Non-Road

• Container Handling Equipment
• Crawler Tractors
• Excavators
• Forklifts
• Graders
• Rough Terrain Forklifts
• Rubber Tire Loaders
• Skid Steer Loaders*
• Tractor Backhoe Loaders
• Yard Trucks

*Update: The Maximum Eligible Grant Amount Table for Skid Steer Loaders was revised in October 2024 to include two new horsepower categories (25-49 hp and 50-74 hp).

On-Road

• Class 7 Vehicles
• Class 8a Vehicles
• Class 8b Haul Trucks
• Yard Trucks

• Project Application (TCEQ-20556)
• IRS Form W-9