Rebate Grants Program (Rebate)

The Texas Commission on Environmental Quality (TCEQ) is seeking applications for the Rebate Grants Program under the Texas Emissions Reduction Plan (TERP). This program provides financial incentives to repower or replace older on-road heavy-duty diesel vehicles and select non-road diesel equipment in order to reduce nitrogen oxides (NOx) emissions in nonattainment areas and affected counties in Texas. Eligible project categories include replacement, repower, electrification, and new purchase of on-road vehicles and non-road equipment. Grants will cover up to 80% of the incremental costs for replacement, repower, and electrification projects, while new purchase projects will receive the lesser of the grant amount or the incremental cost. The application submission period is open from June 3, 2024 through the deadline of July 29, 2024, and eligible costs must be incurred after June 3, 2024.

The program has set aside $30 million for small businesses, defined as those owning no more than five vehicles or pieces of equipment, one of which has been owned for over two years. Additionally, $20 million is allocated for new purchase projects. Applicants must comply with various state contracting regulations and certifications, including requirements related to equipment ownership, condition, operation, and emissions reductions. The total anticipated funding for this program is $92 million, and grant recipients must use the equipment primarily in the eligible nonattainment areas and affected counties, providing annual usage reporting.