Estimated $87 Million in Funding Available for Texas Volkswagen Environmental Mitigation Program Grants

The Texas Commission on Environmental Quality (TCEQ) is now accepting grant applications for the Texas Volkswagen Environmental Mitigation Program (TxVEMP) with an estimated $87 million in funding available for the repower or replacement of select vehicles and equipment operating in priority areas of the state with new, all-electric models. Some entities may qualify to receive up to 100% of the cost to adopt all-electric vehicles and equipment. 

Eligible vehicles and equipment include:

• Class 8 Local Freight and Port Drayage Truck
• Class 4-8 School Bus, Shuttle Bus, and Transit Bus
• Class 4-7 Local Freight Trucks
• Airport Ground Support Equipment
• Forklifts and Port Cargo Handling Equipment

Applicants purchasing eligible vehicles and equipment may request additional funding for refueling infrastructure.

Detailed eligibility requirements and instructions for how to apply for a TxVEMP Grant can be found on the TxVEMP webpage. Applications will be accepted until 5 p.m. CST on Aug. 31, 2025. The program may suspend the acceptance of applications if all funds are awarded before the program is scheduled to close.

Information about other emissions reductions programs at TCEQ can be found at www.terpgrants.org , by calling 800-919-TERP (8377), or by email at TERP@tceq.texas.gov.

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