April 30, 2020. The Texas Commission on Environmental Quality (TCEQ) has announced that up to $7.7 million in grants are available for the Texas Clean Fleet Program (TCFP) to encourage entities that operate large fleets of vehicles in Texas to replace diesel-powered vehicles with alternative fuel or hybrid vehicles. These grants will be competitively awarded, and applications will be accepted until 5:00 p.m. Central, Tuesday, June 30, 2020.

These grants are part of the Texas Emissions Reduction Plan (TERP) and are available to owners of fleets of 75 or more vehicles operating in Texas. Grant applicants must commit to replace at least 10 diesel-powered vehicles with hybrid or alternative fuel vehicles.

Projects eligible for funding under this program must include vehicles that will be operating at least 25% of annual mileage within the Texas Clean Transportation Zone (CTZ) and will result in a reduction of nitrogen oxides (NOX) emissions of at least 25%. The CTZ includes Atascosa, Bexar, Comal, Frio, Guadalupe, Karnes, Medina, McMullen, and Wilson Counties. Applicants must commit to operate the grant funded vehicles for at least 75% of the annual mileage in Texas.

The maximum eligible grant amount for the replacement of a heavy-duty or light-duty diesel vehicle is 80% of the incremental cost for the new vehicle. The incremental cost includes the total cost of the new vehicle minus a default scrap value of $1,000 for heavy-duty vehicles, $500 for light-duty vehicles, and minus any other financial incentives received toward the price of the new vehicle.

The eligible alternative fuels under this program are:

  • Electricity
  • Compressed Natural Gas (CNG)
  • Liquefied Natural Gas (LNG)
  • Hydrogen
  • Propane (LPG) and
  • Methanol (M85).
  • Fleets with bi-fuel or multi-fuel vehicles must commit to using the alternative fuel for at least 75% of the annual operation of the vehicle.

Eligible vehicles must be owned, leased, or otherwise commercially financed by the applicant; continually registered in Texas; and operated in the State of Texas by the grant applicant for at least two years prior to the application submission. Vehicles must be in good operating condition with at least two years of remaining useful life.