Emissions Reduction Incentive Grants Program (ERIG)

The Texas Commission on Environmental Quality (TCEQ) is soliciting grant applications for the Emissions Reduction Incentive Grants Program (ERIG) under the Texas Emissions Reduction Plan (TERP). The ERIG program provides financial incentives to eligible applicants to repower or replace older locomotives, marine vessels, stationary equipment, and select non-road equipment in order to reduce nitrogen oxides (NOX) emissions in nonattainment areas and affected counties in Texas. Applicants can submit up to 10 activities per application for replacement or repower projects, with grants covering up to 80% of the eligible equipment costs or $35,000 per ton of NOX reduced, whichever is less. The application deadline is October 29, 2024, and TCEQ will review applications for completeness before issuing awards. Grantees must agree to maintain and operate the grant-funded equipment for the designated Activity Life and comply with various program requirements.

The ERIG program is established under the Texas Health and Safety Code and administered by TCEQ. Eligible applicants include private businesses, governmental entities, and non-profit organizations. TCEQ may limit awards to a single applicant to no more than $10 million in grant funds. The program has approximately $55 million in available funding. Applicants may also be eligible for additional funding through the Texas Volkswagen Environmental Mitigation Program (TxVEMP), which provides incentives for repowering ferries and tugs, and replacing or repowering freight switchers. Applicants can apply for eligible projects under both the ERIG and TxVEMP programs, but can only receive a single grant award.