Texas Volkswagen Environmental Mitigation Program (TxVEMP)

The Texas Commission on Environmental Quality is inviting grant applications for the new Texas Volkswagen Environmental Mitigation Program (TxVEMP). The program offers incentive funding for eligible applicants in Travis County and the City of Austin to upgrade or replace vehicles and equipment, such as Class 8 local freight trucks, transit buses, forklifts, and airport ground support equipment, with new all-electric models. Applicants may also request additional funding for refueling infrastructure. The application deadline is August 31, 2025, and the request for reimbursement deadline is October 31, 2026. TCEQ projects approximately $87 million in available funding and will initially allocate funds based on eligible project categories and priority areas, but may redistribute funds as needed. Grant amounts can cover up to 100% of the incremental costs for governmental entities and up to 75% for non-governmental entities. Eligible costs include the purchase price, taxes, delivery, warranties, and infrastructure installation. Applicants must demonstrate ownership and usage of the old vehicles/equipment for at least two years prior to applying and commit to operating the new equipment in the priority areas for at least 5 years.

The TxVEMP program is open to a variety of eligible applicants, including individuals, state/local governments, corporations, and other legal entities. TCEQ may limit awards to a single applicant to no more than 50% of the total funding allocation. There are no specific set-aside designations, but the program provides higher funding levels for governmental entities. The contract contains requirements related to ownership, registration, usage, and disposition of the replaced vehicles and equipment, though TCEQ may consider waiver requests. No information is provided on incumbent vendors or current contractors.