Estimated $53 Million in Funding Available for Two Texas Emissions Reduction Plan Grants

The Texas Commission on Environmental Quality (TCEQ) is now accepting a second round of applications under the Emissions Reduction Incentive Grants Program (ERIG) and Texas Volkswagen Environmental Mitigation Program (TxVEMP).

The ERIG Program will provide an estimated $40 million in grants to help replace or repower older locomotives, marine vessels, stationary equipment, and select non-road equipment in nonattainment areas and affected counties in Texas. ERIG projects are awarded competitively with priority given to those with the lowest cost per ton (CPT) of nitrogen oxides (NO_X) emissions reduced and highest reduction in NO_X emissions.

Applicants under the ERIG Program may be eligible for up to 80% of the cost to replace or repower eligible equipment. Detailed eligibility requirements, application forms, and instructions for how to apply can be found on the ERIG program webpage.

The ERIG program implements a portion of the  Texas Emission Reduction Plan (TERP) administered by TCEQ. TERP helps to keep the air clean in Texas by providing grants to reduce NO_X emissions from mobile and stationary sources; as well as supporting programs that encourage the use of alternative fuels for transportation in Texas.

The TxVEMP grant round will provide an estimated $13 million to help replace or repower older freight switcher locomotives and repower older ferry and tug marine vessels operated in the TxVEMP priority areas. TxVEMP projects are awarded competitively with priority given to those with the lowest CPT of NO_X emissions reduced and highest reduction in NO_X emissions. Applicants under TxVEMP may be eligible for up to 100% of the cost to adopt all-electric equipment. Detailed eligibility requirements, application forms, and instructions for how to apply for a TxVEMP grant can be found on the TxVEMP Ferry, Tug, and Switcher Grant Round webpage. The Ferry, Tug, and Switcher grant round implements a portion of TxVEMP administered by TCEQ.

Grant applications under both programs will be accepted until 5 p.m. on Friday, Feb. 14, 2025.

Applicants who submitted project applications under the first ERIG and TxVEMP grant round that opened in July 2024 do not need to resubmit applications under this grant round. TCEQ is currently in the process of reviewing and awarding grants for eligible projects under the first grant round.

For more information on ERIG, contact TERP toll‑free at 800-919-TERP (8377) or by email at terp@tceq.texas.gov. For more information on TxVEMP, contact 833-215-TXVW (8989) or by email at vwsettle@tceq.texas.gov.

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