Grants for Natural Gas Vehicles

Eligible applicants

Individuals and entities operating an on-road heavy-duty or medium-duty vehicle registered to operate in Texas.

Eligible projects

• Replacement or repower of eligible medium-duty or heavy-duty motor vehicles with a vehicle or engine powered by natural gas. 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.
• 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.

Qualifying vehicles for replacement

See the list of eligible vehicles, engines, and conversion systems that meet program requirements and qualify for replacement. 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 2018 or newer;
• 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 U.S. Environmental Protection Agency (EPA) to the current federal emission standard or a lower family emissions limit (FEL);
• The vehicle and/or engine must be certified by the EPA to emit at least 25% less nitrogen oxides (NO_X) 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 CNG, LNG, or 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.

Qualifying vehicles for repower and conversion

• A replacement engine must be certified by the EPA to the current federal emission standard or a lower FEL;
• A replacement engine must be certified by the EPA to emit at least 25% less NO_X than 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 emission standard or a lower FEL, or otherwise accepted by TCEQ as meeting the emissions criteria;
• A conversion system must be certified by the EPA to a NO_X emission standard or FEL, or otherwise accepted by TCEQ as meeting an emission standard that is at least 25% less than the emission 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.

Eligible Areas

• Map of Eligible Counties

Review documents to ensure eligibility

• Request for Grant Applications
• Grant Program Summary in English
• Grant Program Summary in Spanish
• List of Eligible Vehicles
• Example Grant Contract

Review the 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 incremental cost (the eligible costs associated with the qualifying vehicle or engine minus scrappage value), whichever is less.

TCEQ will use a scrappage value of $1,000 for replacement projects and $250 for repower projects to calculate grant awards.

• Project Application (TCEQ-20625)
• Supplemental Form 1 (TCEQ-20625-a): Waiver Request or Special Ownership Preapproval
• Supplemental Form 2 (TCEQ-20625-b): Agricultural Product Transport
• IRS Form W-9