Texas Volkswagen Environmental Mitigation Program (TxVEMP)

The Texas Commission on Environmental Quality (TCEQ) is seeking grant applications under the Texas Volkswagen Environmental Mitigation Program (TxVEMP) to repower or replace older locomotive freight switchers and repower marine ferries or tugs in order to reduce nitrogen oxide (NOX) emissions in priority areas of Texas. The grant program covers up to 100% of the incremental costs for governmental entities and up to 75% for non-governmental entities. Eligible activities include repowering or replacing older freight switchers, repowering marine ferries or tugs, and installing on-site electric charging infrastructure. Applicants must provide detailed information about the existing equipment, the proposed new equipment, usage, and geographic areas of operation. The application deadline is October 29, 2024, and awarded projects will have a 5-year activity life. Applicants may request waivers for the ownership and usage requirements, and TCEQ will review requests for non-standard annual usage rates.

The TxVEMP program has $13 million in available funding and is established and administered by TCEQ in accordance with the Environmental Mitigation Trust Agreement for State Beneficiaries and the Beneficiary Mitigation Plan for Texas. The eligible applicants include individuals, state and local governments, corporations, and other legal entities. TCEQ will prioritize the usage of the new equipment in specific geographic regions of Texas to maximize the emissions reductions. The program does not have any set-aside designations or restrictions on the types of organizations that can respond, and there are no listed incumbent vendors or current contractors. The total award value will depend on the number and nature of the approved grant applications.