Updated February 2025
If the cost of managing your air emissions is starting to affect your bottom line, or if your equipment is so out of date that upgrading it would put your EHS Department in the red, it could be time to consider applying for one of the Texas Emissions Reduction Plan program grants.
The Texas Emissions Reduction Plan (TERP) offers a variety of grants that help to mitigate the cost of upgrading equipment and vehicles in order to cut your nitrogen oxides (NOx) emissions. TERP grants provide financial incentives for facility owners to upgrade older heavy-duty vehicles, non-road equipment, locomotives, marine vessels, and stationary equipment.
There are several available grant programs under TERP, each one covering a different aspect of a facility’s operations, and each one having different eligibility requirements. Since each grant is handled separately within the Texas Commission on Environmental Quality (TCEQ), each one also has a separate application deadline.
TERP grants cover a wide range of different areas, with many distinct grants available. The availability of these grants varies over time, with some only accepting applications over certain periods, some closing for good, and new grants emerging regularly. Here are some of the top TERP grants today, and you can visit the TERP website for information on the latest grants.
The Texas Natural Gas Vehicle Grant Program (TNGVGP) offers a financial incentive to businesses that own and operate heavy-duty or medium-duty motor vehicles to repower the vehicle with a natural gas engine or replace the vehicle with a natural gas vehicle. Grant amounts vary depending on a variety of factors, ranging from around $1,000 to upwards of $500,000.
There are several key requirements to qualify. The replacement vehicle must be of the same weight class and use as the vehicle being replaced. The vehicle must be certified by the EPA to emit at least 25% less nitrogen oxides than the vehicle being replaced. You can apply for this grant by filling out an application and submitting the file online or by mail.
The Texas Clean Fleet Program (TCFP) offers funding to replace diesel-powered vehicles with alternative fuel and hybrid vehicles. The program is open to individuals or organizations operating a fleet of 75 or more vehicles that are registered in Texas. Submissions must be for the replacement of at least 10 vehicles.
Replacements must be powered by an alternative fuel or hybrid system and be of the same weight classification as the vehicle being replaced. There are many factors that determine your grant amount, and there is a calculator available on the TCEQ website. Applications can only be submitted electronically.
The New Technology Implementation Grants (NTIG) delivers funding to assist in implementing new technologies that reduce emissions of regulated pollutants from facilities and other stationary sources. Organizations are eligible for up to 50% reimbursement for eligible projects that reduce emissions from upstream, midstream, and downstream oil and gas industry activities.
Organizations must prepare a substantial implementation plan to qualify for the grant. The plan must maximize the likelihood of implementation and demonstrate the applicant’s ability to maintain the grant-funded technology for the duration of the contract. Applications can be submitted online or via mail.
The above TERP grants can make an enormous difference in enabling your business to reduce its NOx emissions at very little cost.
However, getting a grant from the TCEQ can also require some in-depth record keeping about your NOx emissions and about your current equipment. You’ll also be expected to carefully track your activities for applications (for example, exactly how much you use a vehicle and percentages of use for that vehicle broken down by site).
The strength of your applications rely on the accuracy of your data as well as the potential benefits of your project. Demonstrating why your business should be given a grant from the TCEQ will require you to prove both that you have a strong project and that you have a history of demonstrating compliance - TERP grants consistently have more requests for funding than actual available funds, leaving the TCEQ to carefully review and assess applicants. Although many grants use a queuing system, not every grant submitted within the deadline will result in funding.
The most effective way of tracking all of your NOx emissions, activities, and information about equipment, is to centralize all of it and automate as much of the number crunching as possible. ERA’s web-based EMS platform is a powerful tool for any business looking to track internal equipment data and regulatory compliance reporting. By having all your EHS data, equipment and sources virtually modeled, everyone who might need to be involved in the application process can access the data they need quickly and easily.
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