Texas Commission on Environmental Quality Announces Opening of the Texas Natural Gas Vehicle Grant Program

AUSTIN, TX - The Texas Commission on Environmental Quality (TCEQ) is now accepting applications under the Texas Emissions Reduction Plan (TERP) Texas Natural Gas Vehicle Grant Program (TNGVGP). With an allocation of $30 million projected for this grant round, the program encourages entities operating heavy-duty or medium-duty diesel or gasoline vehicles to replace those vehicles with natural gas vehicles or repower them with natural gas engines.

Eligible natural gas fuels include compressed natural gas (CNG), liquefied natural gas (LNG), and liquefied petroleum gas (LPG).

Grant Amounts

• Grants reimburse up to 90% of the eligible incremental cost to purchase, lease, commercially finance, or repower a qualifying vehicle.
• Standardized Grant amounts are set by TCEQ in the Maximum Grant Amount Tables, available on the TNGVGP webpage. Grantees receive the lesser of the standardized amount or 90% of the incremental cost.
• At least 60% of the total amount of grants awarded in the grant round will go to motor vehicles with a gross vehicle weight rating of at least 33,001 pounds, if sufficient applications are received.

Eligible Applicants

• Individuals, state and local governments, corporations, or any other legal entity with an on-road heavy-duty or medium-duty vehicle registered to operate in Texas.
• All business entities, such as corporations or partnerships, must have an active registration with the Texas Secretary of State by the program opening date and must maintain that registration during the contract period if awarded.

Eligible Projects

• Replacement of an on-road heavy-duty or medium-duty diesel or gasoline vehicle with a new or used natural gas vehicle certified to the current federal emissions standards.
• Repower of an existing on-road heavy-duty or medium-duty vehicle with a natural gas engine certified to the appropriate current federal emissions standards.
• Qualifying vehicles must be operated at least 75% of their annual use within the Clean Transportation Zone (CTZ) for the earlier of the four-year activity life or 400,000 miles. A map of eligible CTZ counties is available on the TNGVGP webpage.

Application Process

Detailed eligibility requirements, informational webinar, application forms, and instructions are available on the TNGVGP webpage. Applications may be submitted electronically and securely using TCEQ Send, or by mail to one of the addresses listed in the Request for Grant Applications.

Applications will be accepted until 5:00 p.m. Central Time on Tuesday, Oct. 20, 2026, or until all available funds have been awarded.

Applicants may include up to 10 vehicles on a single application.

About TERP

TERP helps keep Texas air clean by providing grants to reduce nitrogen oxide (NO_X) emissions from mobile sources and support programs that encourage the use of alternative fuels for transportation in Texas.

For additional information, please contact the TERP team toll-free at 800-919-TERP (8377) or via email at [email protected].

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