Category Archives: Funding Opportunities

EPA’s Clean School Bus Rebate Program

The Bipartisan Infrastructure Law of 2021 authorizes EPA to offer rebates to replace existing school buses with clean and zero-emission (ZE) models. The 2022 Clean School Bus (CSB) Rebates process includes SAM.gov account registration, application submission, review and selection by EPA, purchase order submission and request for payment, payment receipt, new bus delivery and old bus replacement, and close out.

Eligible Applicants

The following entities are eligible to apply for EPA school bus rebates:

  1. State and local governmental entities that provide bus service
    • Public school districts, including charter schools, with an NCES District IDEXIT EPA WEBSITE are eligible to apply directly for funding.
    • Most State governmental entities would not be eligible to apply, but some, like South Carolina, own bus fleets and would be eligible.
  2. Eligible contractors – Eligible contractors are for-profit, not-for-profit, or nonprofit entities that have the capacity to (1) sell clean or ZE school buses or related charging or fueling infrastructure to school bus owners or (2) arrange financing for such a sale.
    • School bus dealers and original equipment manufacturers (OEMs) that meet these criteria are eligible contractors.
  3. Nonprofit school transportation associations
  4. Indian tribes, tribal organizations, or tribally controlled schools responsible for the purchase of school buses or providing school bus service for a Bureau of Indian Affairs (BIA) funded school

Private school bus fleets cannot apply directly for funding. However, eligible applicants listed above can enter into a contractual arrangement with a private fleet that owns and operates buses to replace buses that serve a public school district.

A goal of the Clean School Bus program is to provide opportunities for as many eligible applicants as possible to participate. We understand that there may be questions about a school district’s eligibility to participate in the 2022 CSB Rebates. If interested applicants have questions about their eligibility after reviewing this webpage and the Program Guide they should contact cleanschoolbus@epa.gov with their specific question.

Note: EPA will be providing additional funding opportunities in the near future and your input will be valuable in helping us design those programs to be as inclusive and effective as possible.

Eligible Old School Buses to be Replaced

To be eligible for replacement, old school buses must:

  1. Be vehicle model year 2010 or older diesel-powered school buses that will be scrapped if selected for funding
    • If a fleet has no eligible 2010 or older diesel school buses and is requesting zero-emission school bus replacements, the fleet can either:
      1. Scrap 2010 or older non-diesel internal combustion engine buses; or
      2. Scrap, sell, or donate 2011 or newer internal combustion engine buses
  2. Have a Gross Vehicle Weight Rating (GVWR) of 10,001 lbs. or more
  3. Be operational at the time of application submission – Able to start, move in all directions, and have all operational parts
  4. Have provided bus service to a public school district for at least 3 days/week on average during the 2021/2022 school year at the time of applying, excluding COVID-related school closures

Eligible New Replacement Buses

To be eligible as a replacement, new buses must:

  1. Have a battery-electric, CNG, or propane drivetrain
  2. Be EPA certified vehicle model year 2021 or newer
  3. Have a Gross Vehicle Weight Rating (GVWR) of 10,001 lbs. or more
  4. Not be ordered prior to receiving official notification of selection for EPA funding
  5. Be purchased, not leased or leased-to-own
  6. Serve the school district listed on the application for at least five years from the date of delivery

For a complete list of eligibility requirements for new buses, see the Program Guide.

Available Funding

  • Applications can request funds for replacing up to 25 buses.
  • For the 2022 CSB Rebates, EPA anticipates offering $250 million for clean school buses and $250 million for zero-emission school buses. EPA may award more funding depending on demand and other considerations.
  • School districts applying directly for funds may only submit one application
    • Other eligible applicants may submit multiple applications, but each application must be for buses serving a different school district. EPA will not fund multiple applications for bus replacements that will serve the same school district.
  • The maximum rebate amount per bus is dependent on (1) the replacement bus fuel type, (2) the replacement bus size, and (3) whether the school district served by the buses is prioritized:

Supporting Materials

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.

Continue reading→

Grant Funding Available: Clean School Bus Program

Greetings Valued Educators,
The Houston-Galveston Area Council ‘s Clean School Bus Program is currently accepting applications to replace older buses with new, cleaner buses. There is no deadline; however, funding is very limited. Therefore, please apply as soon as possible. A maximum 10 buses will be replaced per application. School districts that have never applied for funding from H-GAC will be preferred in the application review process.
The goal of the Clean School Bus Program region is to reduce children’s exposure to diesel exhaust and reduce the amount of air pollution created by diesel school buses. Clean School Bus Program aims to reduce pollution from buses through partners from business, education, transportation, and public health organizations. Our program noticed that many of our local school districts applied for grant funding through the Texas Commission of Environmental Quality’s Texas Volkswagen Environmental Mitigation Program. Based on the limited funding ($10.5M allocated to Houston vs $21.5M requested), there will be many projects that will not be funded. We hope to provide those school districts that do not get Volkswagen funds, a chance to replace their buses. It is vital that our students, educators, and all those in between are able to breathe clean air.
Clean School Bus Program is serving the following counties: Brazoria, Chambers, Fort Bend, Galveston, Harris, Liberty, Montgomery, and Waller. These counties are currently in non-attainment for air quality for the air pollutant ozone.
Eligibility Requirements:
• Own vehicle(s) currently operating 75% of mileage in the Houston-Galveston-Brazoria (HGB) ozone nonattainment area (Brazoria, Chambers, Fort Bend, Galveston, Harris, Liberty, Montgomery, and Waller counties)
• Agree to destroy old chassis and engine with an H-GAC-approved salvage vendor
• Purchase brand new vehicle(s) similar in size and weight to the vehicle being destroyed
• Commit to continuing operating the new vehicle(s) at the same mileage as the old vehicle(s)
• Have site visits to view any and all vehicles under for consideration in the program
• NOT perform grant work (purchase, or destroy vehicles) without a contract with H-GAC
• Commit to reporting quarterly on mileage, fuel use, and maintenance information for 5 years after reimbursement
To apply, please visit our website. You can submit all questions and applications to CleanVehicles@h-gac.com. You can also give us a call at 713-993-2488.

Replace or repower your drayage truck or cargo handling equipment with a TERP Grant

The Texas Commission on Environmental Quality is preparing to open the Seaport and Rail Yard Areas Emissions Reduction Program, a grant program under the Texas Emissions Reduction Plan Program. TCEQ will be has posted a workshop presentation for review.
The purpose of the SPRY program is to encourage individuals and entities operating at designated seaports and Class I rail yards in Texas’ nonattainment areas to replace or repower their older on-road vehicles, non-road yard trucks, or other cargo handling equipment with new models.
Applicants may be eligible for funding up to 80% of the cost to replace or repower eligible vehicles and equipment if, for at least two years preceding the submission date of the application, the applicant has:
  • Owned or leased the on-road vehicle, non-road yard truck, or other cargo handling equipment eligible to be replaced under the program; and
  • Operated the vehicle or equipment at one or more of the designated seaports or rail yards for a minimum of 200 days of operation per year for the preceding two years.
Designated seaports include terminals and facilities located in the Port of Houston (including the participating facilities of the Houston Ship Channel Security District), Port of Galveston, and Port Freeport.
Designated Class I rail yards include terminals and facilities located in the Dallas-Fort Worth area, Bexar County, Houston-Galveston-Brazoria area, and El Paso area.
Please share with anyone who might be interested.
For program opening information, sign up for email updates at www.terpgrants.org.
Have questions? Contact TCEQ toll-free at 800-919-TERP (8377) or by email at terp@tceq.state.tx.us.

TCEQ Opens $6.4M in VW Funds for Freight and Drayage Trucks in the Houston Region

The Texas Commission on Environmental Quality is inviting applications from person who operate trucks, including commercial trucks, used to deliver cargo and freight in areas designed as Priority Areas. Incentive funding is available to replace or repower eligible vehicles to reduce the emission of nitrogen oxides in designated eligible counties.
Eligible Applicants:
Eligible applicants under the TxVEMP must operate a freight or port drayage truck at least 51% of the vehicle’s annual mileage in one of the Priority Areas.
Vehicles being replaced or repowered must:
  • be a Class 4-7 local freight truck or commercial truck used to deliver cargo and freight with a gross vehicle weight rating (GVWR) between 14,001 – 33,000 lbs. or;
  • be a Class 8 local freight truck used for port drayage and/or freight/cargo delivery with a GVWR greater than 33,000 lbs;
  • have a diesel engine with a model year of 1992 – 2009;
  • be considered capable of performing its primary function for the next five years;
  • have been continuously inspected and registered in Texas for the two years immediately preceding the application signature date;
  • have been used routinely by the applicant in its primary function in Texas for the two years immediately preceding the application signature date; and
  • been owned by the applicant for the two years immediately preceding the application signature date.
New vehicles must:
  • be powered by electricity, diesel, or an alternative fuel;
  • have an engine model year not more than one year older than the year the application is submitted;
  • be certified by the EPA or CARB to a NOx emissions standard or family emissions limit (FEL) of 0.2 g/bhp-hr or lower;
  • be used in the same priority priority area as the vehicle being replaced or repowered; and
  • be of the same type, weight category, and body and axle configuration as the vehicle being replaced.
Activity Life and Usage Commitment:
  • The applicant must commit to use the grant-funded vehicle at least 51% of the vehicle’s annual miles of operation in one of the Priority Areas for the duration of the five-year activity life.

TCEQ Announces New Round of Grants for The Texas Clean School Bus Program

The Texas Commission on Environmental Quality (TCEQ) is currently accepting applications for the Texas Emissions Reduction Plan (TERP) TCSB. Approximately $6.2 million in grants is available state-wide for school districts, charter schools, and transportation systems provided by countywide school districts, to replace or retrofit school buses operating on a regular daily route to and from school.
Grants are available on a first-come, first-served basis to reimburse up to 80% of the cost to replace a school bus with a newer, cleaner model, and up to 100% of the cost to retrofit a school bus.
Applications will be accepted until 5:00 p.m. on December 17, 2020 or until all funding is awarded.
For more information on the grant program and to access up-to-date information on the application criteria and process, or to receive copies of the application forms, visit www.terpgrants.org or call 800-919-TERP (8377).

$12 Million Available: TCEQ Announces New Round of Grants for Alternative Fueling Facilities!

The Texas Commission on Environmental Quality announces that up to $12 million in grants is available for eligible individuals, businesses, and governmental entities to build or expand alternative fueling facilities in Texas! 
The Texas Emissions Reduction Plan’s Alternative Fueling Facilities Program (AFFP) provides financial incentives for entities to provide alternative fueling facilities within the state’s Clean Transportation Zone to serve as a foundation for a self-sustaining market for alternative fuel vehicles in the state.
AFFP grants are available for the construction of new alternative fueling facilities or the expansion of existing facilities to provide new services or fueling capacity.
Eligible fuel types include compressed natural gas and/or liquefied natural gas; propane; biodiesel; methanol; hydrogen; and electricity.
Applications will be accepted until 5:00 p.m. CST, Wednesday, March 18, 2020.
The TCEQ has scheduled nine AFFP grant application workshops to review the grant requirements and the application process. RSVP toTERP@tceq.texas.gov
All workshops are free of charge.
WEBINAR: TUESDAY, DEC 3, 2019
2:00 – 4:00 p.m.
RSVP to TERP@tceq.texas.gov (required)
Meeting link will be sent to participants via email on the day of the webinar.
TYLER: WEDNESDAY, DEC 4, 2019
2:00 – 4:00 p.m.
TCEQ Region 5 Office, Large Conference Room
2916 Teague Dr.
Tyler, TX 75701
ARLINGTON: THURSDAY, DEC 5, 2019
2:00 – 4:00 p.m.
North Central Texas Council of Governments
616 Six Flags Drive
Arlington, TX 76011
HOUSTON: TUESDAY, DEC 10, 2019
2:00 – 4:00 p.m.
Tracy Gee Community Center
3599 Westcenter Dr.
Houston, TX 77042
SAN ANTONIO: MONDAY, DEC 12, 2019
2:00 – 4:00 p.m.
Alamo Area Council of Governments
8700 Tesoro Drive
San Antonio, TX 78217
AUSTIN: TUESDAY, JAN 07, 2020
2:00 – 4:00 p.m.
TCEQ’s Austin Office
Building E, 2nd Floor, Room 254S
12100 Park 35 Circle, Austin, TX 78753
CORPUS CHRISTI: WEDNESDAY, JAN 08, 2020
2:00 – 4:00 p.m.
Corpus Christi Development Services and Fire Department Headquarters
2406 Leopard Street
Corpus Christi, TX 78408
LAREDO: THURSDAY, JAN 09, 2020
9:00 – 11:00 a.m.
TCEQ’s Region 16 Office
707 E. Carlton Drive, Suite 30
Laredo, TX 78041
EL PASO: TUESDAY, JAN 14, 2020
9:00 – 11:00 a.m.
El Paso Hispanic Chamber of Commerce
MWEDC Global Training Room
4141 Pinnacle, Suite 120
El Paso, TX 79902
For more information on the grant programs and to access up-to-date information on the application criteria and process, specific geographic eligibility requirements, and copies of the application form, visitwww.terpgrants.org or call 800-919-TERP (8377).

Stakeholder Meeting to Solicit Comments on the Implementation and Administration of the Governmental Alternative Fuel Fleet Grant Program

The Governmental Alternative Fuel Fleet (GAFF) Grant Program is established under Texas Health and Safety Code, Chapter 395, to be administered by the Texas Commission on Environmental Quality (TCEQ or commission). The GAFF Grant Program is one of several incentive programs under the Texas Emissions Reduction Plan (TERP).

The GAFF Grant Program will provide grants to assist eligible applicants in purchasing or leasing new motor vehicles that operate primarily on compressed natural gas, liquefied natural gas, liquefied petroleum gas, hydrogen fuel cells, or electricity, including electricity to power fully electric motor vehicles and plug-in hybrid motor vehicles. The GAFF Grant Program will also provide grants to assist eligible applicants in the installation of refueling infrastructure for grant funded vehicles.

Eligible applicants include:

  • a state agency or political subdivision that operates a fleet of more than 15 motor vehicles, excluding motor vehicles that are owned and operated by a private company or other third party under a contract with the entity; and
  • a mass transit or school transportation provider or other public entity established to provide public or school transportation services.

The TCEQ will conduct a stakeholder meeting to solicit informal comments on the implementation and administration of the GAFF Grant Program on Wednesday, September 4, 2019, at 1:30 p.m., at the commission’s central office located at 12100 Park 35 Circle, Building E, Room 201S, Austin, Texas.

Written comments may be submitted to Ron Hieser, MC 204, Implementation Grants Section, Texas Commission on Environmental Quality, P.O. Box 13087, Austin, Texas 78711-3087, or faxed to (512) 239-0077. Electronic comments may be submitted to terp@tceq.texas.gov. Comments must be received by the TCEQ no later than September 30, 2019. Please note that this is an opportunity to provide informal comments to staff. While staff will review all comments received, the TCEQ will not be formally responding to any informal comments.

For additional information, please contact Ron Hieser at (512) 239-0244, or toll free at (800) 919-TERP (8377).

Texas Natural Gas Vehicles Grants and Opening Dates

Below is an overview of major funding opportunities for natural gas vehicles in Texas. For more detailed information on the incentives, click here or contact Heather Ball at 512-484-8535 or heather@txng.org.

Emissions Reduction Incentive Grants: Open Summer 2020 for Heavy-duty on-road and non-road; locomotives, marine vessels, stationary equipment. Budget: $60,332,490.

Texas Clean School Bus Program: Open End of 2019 for School Bus Replacement or Diesel Particulate Emission Capture. Default grant amounts. Budget: $6,189,590.

Alternative Fueling Facilities Program: Open Spring 2020. Max of $400,000 for CNG or LNG; $600,000 if combined. Max $600,000 for other alt fuels. Budget: $12 million.

Governmental Alternative Fuel Fleet Program: Open Date TBD. Budget: $6 million.

Texas Clean Fleet Program: Open Winter 2020 for Up to 80% of total cost of heavy or light-duty alt fuel vehicle. Replacement of Diesel and Gasoline Vehicles greater than 8,500 GVWR; Default grant amounts based on annual mileage, GVWR and CNG/LNG or Propane fuel system capacity. Budget: $7,736,986.

Texas Natural Gas Vehicle Grant Program: Open End of 2019 for Replacement of Diesel and Gasoline Vehicles greater than 8,501 GVWR; Default grant amounts based on annual mileage, GVWR and CNG/LNG.Propane fuel system capacity. Up to 90% of cost of dedicated natural gas or propane medium or heavy-duty vehicle. Includes repowers. Budget: $15,473,974.

Light-Duty Motor Vehicle Purchase or Lease Incentive: Open until Jan.7, 2021 for $5,000 per vehicle for new light-duty (less than 10,000 lbs. GVWR) natural gas or propane vehicles; $2,500 for electric vehicles. Budget: $7,736,988.

New Technology Implementation For Facilities and Stationary Sources: Open 2020 to Offset the incremental cost of emissions reductions of air pollutants from facilities and other stationary sources in Texas. Budget: $9,284,384.

Seaport and Rail Yard Areas Emissions Reduction Program: Open 2020 for Replacement of Older vehicle, which must have operated in a seaport or rail yard for at least two years or 200 visits per year prior to receiving the grant. Includes trucks and non-road yard trucks. Budget: $9,284,384.

Texas Volkswagen Environmental Mitigation Program: Open Now. The TCEQ is now accepting applications for the first round of funding under the TxVEMP with more than $58 million for projects that replace or repower school buses, transit buses, and shuttle buses.

Clean Fleets North Texas: Open Now. Grants for Replacement of Heavy-Duty Diesel Vehicles and Equipment: 45% for Electric; 35% CARB Low NOx Engines; 25% for All Others. Budget: $2.0 million.

Houston-Galveston Area Council (HGAC) Congestion Mitigation and Air Quality (CMAQ): Open Now for On-road Vehicles and Refueling Infrastructure (parts only). Budget: $1.5 million.

Texas Gas Service Program: Open now for $2,000 rebate for the purchase of a qualified NGV or $3,000 for the conversion of a gasoline powered vehicle to operate on natural gas.

TXNG thanks Windy Johnson, Texas Conference of Urban Counties, and Joe Walton, Texas Commission on Environmental Quality, for their assistance in compiling this information. Click here for a schedule of upcoming TERP workshops.

Propane Council of Texas Offers Incentives for Public Fleets to Go Green

Public fleets can now take advantage of incentives to help lower their carbon footprint in their communities. The Propane Council of Texas, a non-profit organization dedicated to educating the public on clean-burning, domestically-produced propane is offering funding for Texas public fleets to switch to the greener alternative.

Since 2010, the Council has offered incentives for businesses to power their vehicles with propane autogas and has now expanded funding to public fleets, including city, county, law enforcement and school white fleet for 2017.

The Propane Council of Texas offers incentives up to $7,500 per vehicle for fleets statewide for the purchase of new, dedicated original equipment manufacturer (OEM) propane autogas vehicles as well as conversions to propane. The program has a perpetual cap of $30,000 per fleet.

Visit www.procot.org and www.fuelingtexas.com for more information about the benefits of propane autogas and incentives including funding availability.