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Seaport and Rail Yard Areas Emissions Reduction (SPRY) Program

This page provides information on the SPRY program, a program of the TCEQ that provides financial incentives for the replacement of older drayage and cargo handling equipment operating at seaports, facilities, and Class I rail yards in areas of Texas designated as nonattainment areas under the Federal Clean Air Act.

A Program of the Texas Emissions Reduction Plan (TERP)

TCEQ is now accepting applications under the Seaport and Rail Yard Areas Emissions Reduction (SPRY) Program. Applications will be accepted and awarded on a first-come, first-served basis. Unless the application period is suspended by TCEQ prior to the deadline, applications must be received at TCEQ no later than 5:00 p.m., Central Time, November 22, 2022.

How to Apply

Review the following documents before completing and submitting the Application (provided in Step 4):

  • Individuals, corporations, organizations, governments or governmental subdivisions or agencies, and/or any other legal entity. This may include a corporation headquartered outside of Texas that operates eligible equipment in Texas.
  • Any person or entity is eligible to apply for funding if, for at least two years preceding the submission date of the application, the applicant has:
    • owned or leased an on-road vehicle, non-road yard truck or other cargo handling equipment eligible to be replaced under the program; and
    • operated the vehicle or equipment in one or more of the designated seaports or rail yards for a minimum of 200 days per year (12-month period) for the two years (24-month period) immediately preceding the application signature date.
  • Eligible applicants must also have legal authority to dispose of the vehicle or equipment and engine being replaced or repowered.
  • Models of drayage trucks and cargo handling equipment eligible for purchase to replace an existing drayage truck or cargo handling equipment under the program include:
    • a heavy-duty on-road vehicle with a gross vehicle weight rating (GVWR) over 26,000 pounds
    • a non-road yard truck
    • other cargo handling equipment
  • To be eligible for purchase under this program a drayage truck or cargo handling equipment must:
    • be powered by an electric motor or contain an engine certified to the current federal emissions standards and
    • emit NOx at a rate that is at least 25% less than the emissions rate of the engine on the truck or equipment being replaced.
  • In general, the replacement drayage truck or cargo handling equipment must be of the same type, power range, weight category, and body and axle configuration as the drayage truck or cargo handling equipment being replaced. TCEQ may accept, in specific cases, vehicles or equipment of a different type, power range, weight category, or body and axle configuration to account for the latest technology, vehicle or equipment type used for certain drayage or other cargo handling purposes:
    • replacement of an on-road heavy-duty vehicle used solely for moving cargo in an eligible facility with an on-road or non-road yard truck
    • replacement of an on-road yard truck with a non-road yard truck, or vice versa; and
    • replacement of certain types of cargo handling equipment used specifically for container handling with a different type of cargo handling equipment that is also used for container handling.

Please refer to the RFGA for more detailed information on eligibility requirements.

Refer to Appendix A in the RFGA for a map of the eligible counties. For this grant round, eligible applicants must operate in an eligible seaport or rail yard located in the state's air quality nonattainment areas to be considered for a grant.

  • An eligible seaport is a publicly or privately owned property associated with the primary movement of cargo or materials from oceangoing vessels or barges to shore or vice-versa, including structures and property devoted to receiving, handling, holding, consolidating, and loading or delivery of waterborne shipments.
  • An eligible seaport also includes publicly or privately owned property within a ship channel security district established under Texas Water Code, Chapter 68. Publicly or privately owned property within Houston Ship Channel Security District (HSCSD) is considered eligible for consideration of a grant under this solicitation.
  • An eligible rail yard is a rail facility where cargo is routinely transferred from drayage truck to train or vice versa, including structures that are devoted to receiving, handling, holding, consolidating, and loading or delivery of rail-borne cargo. If an applicant is not able to determine whether a facility is part of the HSCSD or is otherwise not sure of the eligibility of a facility, the applicant should contact TERP staff at terp@tceq.texas.gov or 1-800-919-TERP (8377) for help determining whether a particular facility is eligible.

If an applicant is not able to determine whether a facility is part of the HSCSD or is otherwise not sure of the eligibility of a property, the applicant should contact TERP staff at (800) 919-TERP (8377) for help determining whether a particular facility is eligible.

  • Grant recipients must agree to operate the grant-funded equipment in an eligible seaport or rail yard for a minimum of 200 days per year (12-month period) for the duration of the five-year Activity Life of the project.
  • For on-road projects, grant recipients must agree to operate the grant-funded equipment for 50%, 75%, or 100% of the annual and total usage in the nonattainment areas and affected counties.
  • For non-road projects, grant recipients must agree to operate the grant-funded non-road yard truck or other cargo handling equipment for 75% or 100% of the annual and total usage in the nonattainment areas and affected counties.
  • The grant recipient must agree to monitor the use of the grant-funded vehicles for five years and provide annual reports on the use of the grant-funded vehicles to TCEQ.

Download the Maximum Eligible Grant Amount Table Instructions and Table(s) applicable to your project. Match the engine emissions model year and GVWR or horsepower range of your old equipment with the percent of use commitment in the table. Applicants may be eligible for up to the maximum grant amount listed for the type of activity or 80% of the eligible costs, whichever is less.

Please contact the TERP program at 1-800-919-TERP if the tables listed do not accommodate a specific vehicle/equipment activity.

Maximum Eligible Grant Amount Table Instructions: These instructions apply to all of the tables listed below.

Maximum Eligible Grant Amount Tables

Applications must be received by 5:00 p.m CT, November 22, 2022.

We encourage you to submit your application via email to TERPapply@tceq.texas.gov. However, you may submit your application by mail to one of the addresses below:

Regular Post Delivery
Texas Commission on Environmental Quality
Air Grants Division
SPRY, MC-204
P.O. Box 13087
Austin, TX 78711-3087

Express Delivery
Texas Commission on Environmental Quality
Air Grants Division
SPRY, MC-204
12100 Park 35 Circle
Austin, TX 78753

For questions on obtaining the Request for Grant Applications, determining the eligibility of a project, or completing and submitting an application, please contact TERP staff at terp@tceq.texas.gov or 1(800) 919-TERP (8377).