Texas Commission on Environmental Quality Announces Opening of the Emissions Reduction Incentive Grants Program

AUSTIN, TX — The Texas Commission on Environmental Quality (TCEQ) is now accepting applications under the Texas Emissions Reduction Plan (TERP) Emissions Reduction Incentive Grants (ERIG) with $62.8 million in funding available to reduce nitrogen oxides (NOₓ) emissions in nonattainment areas and affected counties in Texas.

Eligible applicants include individuals, corporations, state and local governments, and other legal entities.

Eligible Project Categories

• Replacement or repower of eligible non-road or stationary equipment powered by engines, turbines, or other internal combustion devices rated at 25 horsepower or greater.
• Replacement or repower of eligible marine vessels subject to U.S. Environmental Protection Agency (EPA) emission standards.
• Replacement or repower of eligible linehaul or switcher locomotives subject to EPA emission standards.
• Optional add-on funding may be available for onsite refueling infrastructure when associated with an eligible replacement or repower project using alternative fuels.

All projects must meet applicable program requirements, including operating the grant-funded equipment primarily within eligible nonattainment areas or affected counties.

Grant Amounts

Eligible projects may receive reimbursement of a portion of the incremental costs associated with replacement, repower, and associated infrastructure activities. Grant funding is based on a competitive evaluation process and is subject to cost-per-ton limits for NOₓ reductions, as specified in the RFGA. 

Application Process

Detailed eligibility requirements, application forms, and submission instructions are available on the ERIG Program webpage. Applications must be submitted electronically through the TERP SUNSS online system during the open application period.

Applications will be accepted until 5:00 p.m. Central Time on Friday, Sept. 4, 2026.

Contact Information

For additional information, contact the TERP team toll-free at 800-919-TERP (8377), by email at terp@tceq.texas.gov, or visit www.terpgrants.org.

About TERP

The Texas Emissions Reduction Plan (TERP) helps improve air quality in Texas by providing grants and incentives to reduce emissions and to support the use of cleaner fuels and advanced technologies.