Advanced Notice – Governmental Alternative Fuel Fleet Grant Program Coming Soon!

The Texas Commission on Environmental Quality (TCEQ) Texas Emissions Reduction Plan (TERP) program is providing advanced notice for the opening of the Governmental Alternative Fuel Fleet (GAFF) grant program. Grants will be awarded to eligible applicants on a competitive basis for projects to purchase or lease new on-road vehicles that operate on the following alternative fuels:

  • compressed natural gas;
  • liquefied natural gas;
  • liquefied petroleum gas;
  • hydrogen fuel cells; or
  • electricity, including electricity to powerfully electric motor vehicles and plug-in hybrid motor vehicles.

Up to 10% of awarded funds may be granted for the purchase, lease, or installation of refueling infrastructure or equipment, or refueling services in conjunction with an eligible vehicle purchase or lease.

Application forms may not be submitted until the grant program officially opens. The grant round will remain open for approximately 60 days, with the official opening planned for April 2021.

Eligible Applicants:

Eligible applicants include state agencies, counties, municipalities, school districts, junior college districts, river authorities, water districts or other special districts, or other political subdivisions that own and operate a fleet of more than 15 motor vehicles. Eligible applicants may include a commercial mass transit or school transportation provider that operates on the behalf of a school district or county transportation system.

Eligible Areas:

Grants under this solicitation will be available statewide, but priority will be given to projects located in or near the nonattainment areas and in the affected counties.

Grant Amounts:

TCEQ has established pre-determined grant amounts for the purchase or lease of eligible vehicles. Grant amounts by vehicle class are provided below.

Class 1 Vehicles – $15,000

Class 2-3 Vehicles – $20,000

Class 4-6 Vehicles – $35,000

Class 7-8 Vehicles – $70,000 

Join us for a Webinar:

TCEQ will host an informational webinar on Wednesday, April 21, 2021, at 1:00 pm C.T. The webinar will be free and open to the public. Please RSVP to terp@tceq.texas.gov to receive instructions for joining the webinar.

Please contact us toll-free at 800-919-TERP (8377) or by email at terp@tceq.state.tx.us with any questions.