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Questions or Comments: terp@tceq.texas.gov

Texas Natural Gas Vehicle Grant Program (TNGVGP)

The TNGVGP provides grants to encourage an entity that owns and operates a heavy-duty or medium-duty motor vehicle to repower the vehicle with a natural gas engine or replace the vehicle with a natural gas vehicle.

A Program of the Texas Emissions Reduction Plan (TERP)

Now Accepting Applications

TCEQ is now accepting applications under the Texas Natural Gas Vehicle Grant Program (TNGVGP). Applications will be accepted for consideration on a first-come, first-served basis. Applications must be received by TCEQ via electronic mail (email) at TNGVGP-apply@tceq.texas.gov or via mail no later than 5:00 p.m., Central Time on March 31, 2023.

Program Overview

Eligible applicants include:

  • Individuals and entities operating an on-road heavy-duty or medium-duty vehicle registered to operate in Texas.
    • Business entities such as corporations or partnerships must have an active registration with the Texas Secretary of State by the date of grant program opening. Businesses must maintain an active registration during the contract period if awarded a grant.

TCEQ will provide grants to offset the incremental cost for the replacement or repower of an eligible medium-duty or heavy-duty motor vehicle with a vehicle or engine powered by natural gas. Under the TNGVGP, eligible natural gas fuels include compressed natural gas (CNG), liquefied natural gas (LNG), and liquefied petroleum gas (LPG).

Replacement Projects

An applicant may apply for a grant if the vehicle being replaced is an on-road heavy-duty or medium-duty vehicle that runs on gasoline or diesel. Refer to Section 2.0 of the RFGA for specific replacement project requirements.

Repower Projects

A repower project may include the replacement of the engine in an existing vehicle with a qualifying engine. A repower project may also include conversion of the existing vehicle or engine with an eligible conversion system. Refer to Section 2.0 of the RFGA for specific repower project requirements.

TCEQ maintains a list of qualifying replacement vehicles and engines, and conversion systems that meet program requirements ( List of Eligible Vehicles). An applicant may request to add vehicles or engines to the list of qualifying vehicles when they submit their application.

  • The vehicle must be of the same weight classification and use as the vehicle being replaced;
  • The vehicle must be:
    • new and may not have been subject to a first sale or lease prior to the purchase or lease; or
    • if used, a model year 2017 or newer, provided that the model year is not more than six years older than the current model year at the time of the application signature date;
      • If the replacement vehicle is used and was originally purchased with grant funds under another TERP program, it may be eligible for funding as long as it has fulfilled its previous contractual obligations.
  • The vehicle and/or engine must be certified by the EPA to the current federal emission standards or a lower family emissions limit (FEL);
  • The vehicle and/or engine must be certified by the EPA to emit at least 25% less NOx than the vehicle being replaced;
  • The vehicle must be a natural gas vehicle with a gross vehicle weight rating of more than 8,500 pounds;
  • The engine must receive not less than 60% of its power from compressed natural gas (CNG), liquefied natural gas (LNG), or liquefied petroleum gas (LPG); and
  • Dump trucks, regardless of the configuration of the vehicle(s) being replaced, may not be replaced with a dump truck that has a sleeper cab.

  • A replacement engine must be certified by the EPA to the current federal emissions standard or lower FEL;
  • A replacement engine must be certified by the EPA to emit at least 25% less nitrogen oxides (NOx) then the engine being replaced;
  • A conversion system must be approved by the EPA for installation on the vehicle/engine being converted;
  • A conversion system must be certified by the EPA to the current federal emissions standards or a lower FEL, or otherwise accepted by the TCEQ as meeting the emissions criteria;
  • A conversion system must be certified by the EPA to a NOx emissions standard or FEL, or otherwise accepted by the TCEQ as meeting an emissions standard, that is at least 25% less than the emissions standard or FEL of the original engine; and
  • A new engine or conversion system certified to receive not less than 60% of its power from CNG, LNG, or LPG.

Grantees will receive the lesser amount of either:

  • The standardized grant amounts set by TCEQ in the Maximum Grant Amount Tables; or
  • Ninety percent (90%) of the incremental cost (the eligible costs associated with the qualifying vehicle or engine minus scrappage value).
    • TCEQ will use a scrappage value of $1,000 for replacement projects and $250 for repower projects to calculate grant awards.

How to Apply

Review the following documents before completing and submitting the Application Forms:

  • Request for Grant Applications (RFGA): The RFGA is the formal announcement of funding opportunities under the TNGVGP program and serves as a guide for determining applicant eligibility.
  • List of Eligible Vehicles: Refer to the current list of vehicles and engines that are eligible for grant funding.
  • TNGVGP Example Contract: The TNGVGP Example Contract contains the terms and conditions that an applicant must agree to if awarded a grant under the TNGVGP.

Review the TNGVGP Maximum Grant Amount Tables to determine your potential grant amount. Applicants may be eligible for up to the maximum grant amount listed for the type of activity or 90% of the eligible cost, whichever is less.

Download the TNGVGP application form:

Supplemental Forms (if applicable):

All applications for funding must be substantially complete and must be submitted by the application deadline. Submission of a grant application that is not substantially complete will be disqualified from consideration under this 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 necessary for TCEQ to review the application for selection according to the program requirements listed in this RFGA.

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

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 Forms.

Applications and Required Attachments must be received by 5:00 p.m CT, March 31, 2023.

Applications will be accepted for consideration during this grant period only if received by TCEQ via electronic mail at TNGVGP-apply@tceq.texas.gov or via mail at one of TCEQ’s addresses, no later than 5:00 p.m. Central Time on the application submission deadline listed on the cover page of the RFGA.

For applications submitted electronically, each attachment must be grouped by activity and clearly labeled with the activity number at the top of each page. It is preferable that the application and attachments be submitted as a single PDF, but it is not required.

  • Submitting Applications via Email. If submitting an application via email to TNGVGP-apply@tceq.texas.gov, please use the following naming convention for your application file in the subject line: ‘FY23 TNGVGP and [your legal name].’ Only one application may be submitted per email at a maximum file size of 25MB.
  • Submitting Applications via TCEQ’s FTPS Server. If your application is larger than 25MB, please submit by uploading the file to TCEQ’s file transfer protocol secure (FTPS) server. Enter TNGVGP-apply@tceq.texas.gov as the email address. (Read how to use TCEQ’s FTPS server ).

Applications may also be submitted to one of these addresses:

Standard Mail:
Texas Commission on Environmental Quality
Air Grants Division, MC-204 (TNGVGP)
P.O. Box 13087
Austin, TX 78711-3087

Express Mail
Texas Commission on Environmental Quality
Air Grants Division, MC-204 (TNGVGP)
12100 Park 35 Circle
Building F, 1st Floor, Suite 1301
Austin, TX 78753

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