Seaport and Rail Yard Areas Emissions Reduction Program (SPRY)

The Texas Commission on Environmental Quality (TCEQ) is seeking applications for the Seaport and Rail Yard Areas Emissions Reduction (SPRY) Program, which provides incentive funding to replace or repower drayage trucks and cargo handling equipment at seaports and rail yards located within the air quality nonattainment areas of Texas. The program aims to reduce emissions of nitrogen oxides (NOx) and other pollutants, including particulate matter (PM), at these facilities and in the affected counties. Eligible applicants must have operated the old equipment at eligible seaports, facilities, or rail yards for a minimum of 200 days per year for the two years preceding the application. The grant will cover up to 80% of the eligible costs or the maximum grant amount, whichever is less, and applicants must agree to operate the new grant-funded equipment at an eligible location for a minimum of 200 days per year for five years. The application deadline is March 4, 2025, and the request for reimbursement deadline is April 30, 2026.

The SPRY program is open to persons or entities who operate drayage trucks and cargo handling equipment at eligible seaports and rail yards. There are no set-aside designations or restrictions on the types of organizations that can respond. The total available funding amount depends on TERP revenues, and TCEQ may select and fund less than the full request amount. The maximum total contract value is not specified, but the program provides financial assistance to cover a portion of the incremental cost of replacing or repowering the eligible equipment, not to exceed maximum grant amounts.