The Texas Emissions Reduction Plan (TERP), administered by the Texas Commission on Environmental Quality (TCEQ), provides grants and rebates to reduce emissions of nitrogen oxides (NOx) and other pollutants. TERP funds projects statewide, with priority generally given to cost‑effective emission reductions that improve air quality in nonattainment and near‑nonattainment areas and in transport regions.
TERP has many grant programs for various transportation systems and industrial equipment. Grants are issued under the following programs. To receive a grant, an application is filed and reviewed by the TCEQ for program alignment. Grants are typically first-come, first-serve or competitive. The grant programs currently accepting applications, or that will be accepting applications later in 2026, are as follows:
Rebate Grants Program
Scope: Upgrade or replace diesel heavy-duty vehicles and non-road equipment in eligible counties.
Award basis: First-come, first-served.
Status: The program is currently accepting applications until July 28, 2026.
Emissions Reduction Incentive Grants Program (ERIG)
Scope: Repower or replace older locomotives, marine vessels, stationary equipment, and select non-road equipment in eligible counties.
Award basis: Competitive.
Status: The program is currently accepting applications until September 4, 2026. Applicants may request up to 80% of the incremental cost for the purchase or lease of the replacement equipment.
New Technology Implementation Grant Program (NTIG)
Scope: Implementation of new technologies that reduce emissions of pollutants from facilities and other stationary sources statewide.
Award basis: Competitive.
Status: The program is expected to open for applications starting May 2026. Applicants may request reimbursement of up to 50% for eligible project costs.
Texas Natural Gas Vehicle Grant Program (TNGVGP)
Scope: Repower heavy-duty or medium-duty vehicles with natural gas engines or replace the vehicles with natural gas vehicles in eligible counties.
Award basis: First-come, first-served.
Status: The program is expected to open for applications starting July 2026.
Texas Hydrogen Infrastructure, Vehicle, and Equipment Program (THIVE)
Scope: Hydrogen vehicles, equipment, and refueling infrastructure in eligible counties.
Award basis: Competitive.
Status: The program is expected to open for applications starting August 2026.
Seaport and Rail Yard Areas Emissions Reduction Program (SPRY)
Scope: Replace older drayage trucks and equipment operating at eligible seaports and rail yards in eligible counties.
Award basis: First-come, first-served.
Status: The program is expected to open for applications starting August 2026.
Port Authority Studies and Pilot Projects Grant Program (PASPP)
Scope: Studies and pilot programs to reduce nitrogen oxides (NOx) and particulate matter (PM) emissions from cargo movement in eligible counties.
Governmental Alternative Fuel Fleet Grant Program (GAFF)
Scope: Assist with purchasing or leasing new vehicles that operate primarily on compressed natural gas, liquefied natural gas, liquefied petroleum gas, hydrogen fuel cells, or electricity statewide.
Award basis: Competitive.
Additional TERP grant programs that are not accepting applications in 2026 are: Texas Clean Fleet Program (TCFP), Alternative Fueling Facilities Program (AFFP), Light-Duty Motor Vehicle Purchase or Lease Incentive Program (LDPLIP), and Texas Clean School Bus Program (TCSB).
The programs of most interest to industrial operators are NTIG for industrial equipment and ERIG for replacement/repowering of stationary engines.
Additional information on NTIG may be found here: NTIG Program Summary.
Additional information on ERIG may be found here: ERIG FY26 Program Summary.
If you are considering voluntary projects that would result in a decrease in actual emissions of NOX and other pollutants, we highly recommend that you submit an NTIG or ERIG program application. It could be essentially “found” money. EDGE can assist with navigation of the NTIG program, including determination of eligibility, preparation of applications, and support during TCEQ review. For #FurtherInsight into TERP and how these programs may apply to your project, reach out to the EDGE team.