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Texas Clean Fleet Program (TCFP)

The Texas Clean Fleet Program (TCFP) provides incentives to owners of large fleets in Texas to replace diesel-powered vehicles with alternative fuel or hybrid vehicles.

A Program of the Texas Emissions Reduction Plan (TERP)

Currently Closed

Stay up to date on TERP programs. Join our TERP Hot Topics email list Exit the TCEQ to get updates.

TCFP Program Information

Contact Information

Jennifer Lasseter
800-919-TERP (8377)

Program Overview

Eligible Applicants

An individual, or entity with a fleet of 75 or more vehicles that are registered in Texas.
An applicant must submit a minimum of 10 vehicles for replacement in an application.

Eligible Vehicles

Each vehicle being replaced must:

be an on-road heavy duty or light duty diesel-powered vehicle;

A heavy-duty vehicle has a gross vehicle weight rating (GVWR) greater than 8,500 pounds (lbs.) and is certified to the United States (US) Environmental Protection Agency (EPA) heavy-duty engine emissions standards.
A light-duty vehicle has a GVWR less than 10,000 lbs. and is certified to the US EPA light-duty vehicle emissions standards.

have been owned, leased, or otherwise commercially financed and registered and operated (at least 75% of the vehicle’s total annual miles) by the applicant in Texas for at least the two years immediately preceding the application signature date; and
be in operating condition with at least two years of useful life remaining.

If selected for a grant, the vehicle and engine being replaced must be destroyed and rendered permanently inoperable within 90 days of the reimbursement payment being issued by TCEQ by:

completely crushing the vehicle and engine; or
cutting a 3-inch or larger hole on both sides of the engine block and cutting both frame rails in half.

Vehicles purchased with a grant must be:

a new motor vehicle that has not been the subject of a retail sale regardless of the mileage of the vehicle (not previously sold or leased prior to purchase);
of the same weight classification and used in the same application or vocation as the vehicle being replaced;
a hybrid vehicle or fueled by an alternative fuel including electricity, compressed natural gas (CNG), liquefied natural gas (LNG), hydrogen, propane, or methanol (85% by volume);
certified to the current federal emissions standards applicable to that vehicle and/or engine; and
certified to emit at least 25% less nitrogen oxides (NO_x) than the certified federal emissions standard applicable to the vehicle being replaced, or a baseline emissions level set by the TCEQ.

Each qualifying vehicle must be operated at least 25% of its total annual mileage in the eligible counties of the Clean Transportation Zone and at least 75% of its total annual mileage in Texas for the earlier of five years or the date the vehicle reaches 400,000 miles.

Eligible Grant Amounts

An applicant may request up to 80% of the incremental cost associated with the purchase of the grant-funded vehicle.

TCEQ will consider a lease with a binding commitment to buy and retain ownership of the grant-funded vehicle at the end of the lease (referred to as a lease-purchase agreement) a purchase.

The incremental cost is the total eligible cost of the grant-funded vehicle.
Eligible costs include: the invoice cost (or for a lease, the cost basis) of the grant-funded vehicle, including taxes and government fees, delivery and shipping fees, factory and/or extended warranties, mechanic and safety inspections, cooperative fees, and dealer processing fees not related to financing.

How to Apply

Step 1: Determine if you are eligible

Please review the documents below for eligibility and other requirements. Applicants and/or projects that do not meet the TCFP eligibility requirements at the time of application submittal will not be considered for a grant.

Request for Grant Applications (RFGA): The RFGA is the formal announcement of funding opportunities under the TCFP, and serves as a guide for determining applicant and/or project eligibility.
Addendum No. 1
Addendum No. 1 (Spanish)
Example TCFP Contract: The example contract contains the terms and conditions that an applicant must agree to if awarded a grant under the TCFP.

Step 2: Calculate Your Maximum Grant Amount and Estimated NO_x Reductions (Optional)

An applicant may request up to 80% of the incremental cost (total eligible cost) associated with the purchase of the new hybrid or alternative fuel vehicle. However, an application will be scored based on the projected cost per ton of NO_x reduced and the project’s cost effectiveness. The grant estimators provided below will help you calculate the maximum grant amount, total tons of NO_x reduced, and cost per ton of NO_x reduced for your project.

Please note that the results of the grant estimator are only estimates and the final calculations for your project will be completed by TCEQ.

The methodology TCEQ uses to calculate a project’s total tons of NO_x reduced and cost per ton of NO_x reduced may be found in the technical supplement below.

TCFP Technical Supplement

Step 3: Download and complete the application and W-9 form

To apply for funding, applicants must complete and submit a grant application. Applications for zero-emission vehicles should be submitted on one application. Applications for other eligible fuel types should be submitted separately. The TCFP application and supplemental forms may be downloaded from the links below. All applications must be submitted in portable document format (PDF). Each attachment should be grouped by activity and clearly labeled with the activity number at the top of each attachment page. If submitting electronically, file folders containing attachments should also be labeled by activity number (e.g., Activity1.pdf, Activity2.pdf, etc.). It is preferable that attachments be submitted in a PDF file format but is not required.

If submitting your application by email through the TERP-apply inbox, please use the following naming convention for your application file in the subject line: ‘FY22 TCFP and [your legal name]’.

Only one application may be submitted per email at a maximum file size of 25MB. If your application is larger than 25MB, please submit by uploading the file to TCEQ’s file transfer protocol secure (FTPS) server. Enter TERPapply@tceq.texas.gov as the email address. (Read how to use TCEQ’s FTPS site.)

Project Application (TCEQ - 20954)
W-9 Form - Request for Taxpayer Identification Number and Certification: 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.
Supplemental Forms (if applicable)

All applications for funding must be substantially complete and must be submitted within the required deadline. Submission of a grant application that is not substantially complete will disqualify the applicant from receiving a grant under this application/pdf RFGA. A substantially complete application must include:

all pages of the application;
all required attachments;
applicant’s contact information;
all required signatures; and
all the information for TCEQ to score and rank the project according to the scoring criteria listed in the RFGA.

The TCEQ is committed to accessibility. If you would like to request a more accessible version of the project application, please contact the TERP program at 800-919-TERP (8377).

Step 4: Submit the application and required documents

Applications and Required Attachments must be received by 5:00 p.m CT, September 16, 2022.

Applications will be accepted for consideration during this grant period only if received by TCEQ via electronic mail (email) at TERPapply@tceq.texas.gov or via mail to one of the addresses below, no later than 5:00 p.m. Central Time on September 16, 2022.

All applications must be submitted in portable document format (PDF). Each attachment should be grouped by activity and clearly labeled with the activity number at the top of each attachment page. If submitting electronically, file folders containing attachments should also be labeled by activity number (e.g., Activity1.pdf, Activity2.pdf, etc.). It is preferable that attachments be submitted in a PDF file format but is not required.