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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)

TCEQ is no longer accepting comments for the FY 2022-2023 TERP TCFP grant round. Any comments received by TCEQ and TCEQ’s response to those comments will be posted on the TERP website at www.terpgrants.orgExit the TCEQ. TCEQ has sole discretion as to whether to respond to comments. TCEQ may not reply to comments received after June 27, 2022. The information below is provided for reference only. This website will be updated with the final program requirements and grant documents upon the opening of the program.

La TCEQ ya no está aceptando comentarios para la ronda de subvenciones TERP TCFP del año fiscal 2022-2023. Todos los comentarios recibidos por la TCEQ y las respuestas de la TCEQ a esos comentarios se publicarán en el sitio web de TERP en www.terpgrants.orgExit the TCEQ. La TCEQ tiene la discreción exclusiva de responder a los comentarios. La TCEQ no responderá a ninguno de los comentarios recibidos después del 27 de junio del 2022. La información a continuación se proporciona solo como referencia. Este sitio web se actualizará con los requisitos finales del programa y los documentos de la subvención al momento de la apertura del programa.

En Español

The TCFP provides grants to encourage an entity that has a fleet of diesel-powered vehicles to replace them with alternative fuel or hybrid vehicles.

The proposed eligibility and scoring criteria for the upcoming TCFP grant round are described below.

Final requirements for TCFP projects will be published in the TCFP Request for Grant Applications upon the opening of the program.

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.

Vehicles Being Replaced (old vehicle)

  1. Each vehicle being replaced must:
    1. be an on-road heavy duty or light duty diesel-powered vehicle;
      1. 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.
      2. A light-duty vehicle has a GVWR less than 10,000 lbs. and is certified to the US EPA light-duty vehicle emissions standards.
    2. have been owned, leased, or otherwise commercially financed and registered and operated by the applicant in Texas for at least the two years immediately preceding the application signature date;
    3. have been operated with at least 75% of the vehicle's total annual miles of operation in Texas; and
    4. be in operating condition with at least two years of useful life remaining.
  2. TCEQ may waive one or more of the ownership, registration, or operation requirements listed above. Waivers must be submitted with the application, including any requests to consider the replacement of a third-party vehicle, not owned directly by the applicant for the preceding two years.
    1. Waiver requests must explain:
      1. why the vehicle(s) being replaced does not meet the ownership, registration, and/or operation requirements;
      2. how the replacement of the vehicle(s) will result in reductions in NOx emissions and other pollutants; and
      3. what will happen to the vehicle being proposed for replacement if it is not selected for a grant
    2. TCEQ will review waiver requests on a case-by-case basis and approve requests based on a determination of good cause.
  3. 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:
    1. completely crushing the vehicle and engine, or
    2. cutting a 3-inch or larger hole on both sides of the engine block and cutting both frame rails in half.

Qualifying Vehicles Eligible for Purchase

  1. The qualifying vehicle must be:
    1. 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);
    2. of the same weight classification and used in the same application or vocation as the vehicle being replaced;
    3. 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);
    4. certified to the current federal emissions standards applicable to that vehicle and/or engine; and
    5. certified to emit at least 25% less nitrogen oxides (NOx) than the certified federal emissions standard applicable to the vehicle being replaced, or a baseline emissions level set by the TCEQ.
  2. Each qualifying vehicle must be operated at least 25% of its total annual milage in the eligible counties of the Clean Transportation Zone and at least 75% of its total annual milage in Texas for the earlier of five years or the date the vehicle reaches 400,000 miles.

Non-Qualifying Vehicles

A new vehicle does not qualify if it:

  1. is a neighborhood electric vehicle;
  2. has been used as a qualifying vehicle to qualify for a TCFP grant for a previous reporting period or by another entity; or
  3. has qualified for a similar grant or tax credit (a grant or tax credit has been awarded to, granted, or used for the vehicle).

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.
  • Eligible costs must be incurred after the program opens to be considered for funding.

Selection and Scoring

Applications will be evaluated, scored, and ranked based upon the cost effectiveness of the project, the projected amount of NOx reduced, and the location of the project.

  • Projects with the lowest cost per ton of NOx reduced, as compared to all other projects, will receive the most points in that scoring category (up to 50 points).
  • Projects with the highest projected NOx reductions (tons of NOx), as compared to all other projects, will receive the most points in that scoring category (up to 30 points).
  • Applicants that will operate vehicles at least 75% of total annual miles in the following nonattainment areas will receive up to 20 points.
    • Houston-Galveston-Brazoria Area
    • Dallas-Fort Worth Area
    • San Antonio Area (Bexar County Only)
    • El Paso County

For More Information contact TERP staff at terp@tceq.texas.gov or 800-919-TERP (8377).