Texas Commission on Environmental Quality Launches Program to Reduce Diesel Exhaust Emissions from School Buses

AUSTIN - The Texas Commission on Environmental Quality’s (TCEQ) Texas Emissions Reduction Plan (TERP) is now accepting applications for the Texas Clean School Bus (TCSB) Program. Grants are available statewide on a first-come, first-served basis to offset the cost of projects that reduce diesel-exhaust emissions.

TCEQ administers this program to reduce children's exposure to diesel exhaust in and around diesel-fueled school buses.

Eligible applicants include any Texas public school district, open-enrollment charter school, or transportation system provided by a countywide school district that operates one or more diesel-fueled school buses. Private schools are not eligible for this program.

Grant Amounts

• Grants of up to 80% of the eligible incremental costs associated with the purchase of replacement school buses are available for eligible replacement projects.
• Funding is also available for the retrofit of an existing school bus.

Eligible Replacement Projects

• Replacement of 2006 model year or older diesel-fueled school buses with buses of the current or previous model year at the time of application.
• School buses proposed for replacement must currently, and for at least the two years immediately preceding the grant application, have been owned, registered, and operated by the applicant in Texas. 
• School buses proposed for replacement must currently be used on a regular daily route to and from a school during the regular school year.

Eligible Retrofit Projects

• Purchase and installation of eligible retrofit systems - closed crankcase filtration systems, diesel particulate filters, or diesel oxidation catalysts. 
• A school bus proposed for retrofit must currently be used on a regular daily route to and from a school during the regular school year and have at least five years of useful life remaining.

Detailed eligibility requirements and instructions for how to apply for a TCSB grant can be found on the TCSB webpage. Applications will be accepted until 5:00 p.m. CST on May 22, 2026, or until all available funds have been awarded.

Information about other emission reduction programs at TCEQ can be found at www.terpgrants.org , or contact us at 800-919-TERP (8377) or via email at TERP@tceq.texas.gov.

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