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Estimated $75 Million in Funding Available for Diesel Emissions Reduction Incentive Rebate Grants

The Texas Commission on Environmental Quality (TCEQ) is now accepting applications for the Rebate Grants program. This first-come, first-served grant program has an estimated $75 million to help reduce NOx emissions from on-road heavy-duty diesel vehicles and select diesel non-road equipment in nonattainment areas and affected counties in Texas. Of that, $20 million will be set aside for applicants qualifying as a Small Business.

Projects eligible for the Rebate Grants program include:

  • Replacement and Repower of on-road heavy-duty diesel vehicles or select diesel non-road equipment with newer, cleaner models.
  • On-Vehicle Electrification Projects for the purchase and installation of equipment that enables an on-road heavy-duty diesel vehicle or a diesel non-road piece of equipment to use electric power to reduce NOx emissions related to power normally supplied by the propulsion engine or another onboard internal combustion engine (e.g., auxiliary power unit, refrigeration trailer).
  • New Purchase Projects for the purchase or lease of select, new on-road heavy-duty vehicles without the requirement to dispose of an old vehicle. For this project type, $10 million in grant funds are available.

Applicants who are eligible for replacement, repower, or new purchase projects may also be eligible to request additional funding for the installation of refueling infrastructure to support the alternatively fueled vehicles or pieces of equipment in their application. This includes vehicles or equipment powered by natural gas, propane, hydrogen, or electricity.

Detailed eligibility requirements and instructions for how to apply for a Rebate Grant can be found on the grant website. Applications will be accepted on a first-come, first-served basis until 5 p.m. Central Standard Time on Dec. 19, 2022. The program may suspend acceptance of applications if all funds are awarded before the program is scheduled to close.

Information about other emission reduction programs at TCEQ can be found at www.terpgrants.orgExit the TCEQ, by calling 800-919-TERP (8377), or through email to

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