Grants for Alternative Fuel and Hybrid Vehicle Fleets

Eligible applicants

An individual or entity operating a fleet of 75 or more vehicles that are registered in Texas.

Eligible projects

• You must submit a minimum of 10 vehicles for replacement per application. Vehicles being replaced must be on-road, heavy-duty or light-duty, and powered by diesel.
• New replacement vehicles must be:
• the same weight classification as the vehicle being replaced.
• powered by an alternative fuel or hybrid system.
• certified to emit at least 25% less nitrogen oxides (NO_X) than the vehicle being replaced, based on the certified federal emissions standard or a baseline emissions level set by TCEQ (refer to the Technical Supplement).

Eligible areas

Map of Eligible Counties

Review documents to ensure eligibility

• Request for Grant Applications
• Grant Program Summary
• Grant Program Summary in Spanish
• Example Grant Contract
• Webinar Presentation

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.

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.

Grant Estimators

• Grant Estimator (Heavy-Duty)
• Grant Estimator (Light-Duty)

Review the Technical Supplement to learn how TCEQ calculates a project’s total tons of NO_X reduced and cost per ton of NO_X reduced.

TCEQ will verify your estimates and make the final calculations for your application.

Applications will be scored based on:

• cost per ton of NO_X reduced
• total NO_X reductions
• total NO_X reductions in the ozone nonattainment areas

All applicants must complete, sign, and upload the following:

• IRS Form W-9
• Supplemental Form - Waiver Request (TCEQ-20954-d Revised January 2025) (if applicable)

Applications must be completed and submitted electronically through the TERP Online Single-Use Non-CROMERR Submission System (SUNSS).

• Review the online application instructions.
• Complete the online application.
• Upload IRS Form W-9 and other required attachments (if applicable).