On July 9, 2012, the Texas Commission on Environmental Quality (TCEQ) announced that up to $18 million in grants are available to encourage an entity that owns and operates a heavy-duty or medium-duty motor vehicle (gasoline or diesel) to replace that vehicle with a natural gas vehicle. Or, alternatively, repower the vehicle with a natural gas engine.

The Texas Natural Gas Vehicle Grants Program (TNGVGP) is a program of the Texas Emissions Reduction Plan (TERP). Grant applicants must go through a participating dealer under contract with the TCEQ to apply. The latest list of participating dealers is available here.

Projects eligible for funding under this program must result in a reduction of nitrogen oxide (NO_X) emissions of at least 25%. Vehicles funded under the TNGVGP must be operated by the grantee in one or more eligible counties.

According to the TCEQ, TNGVGP will be accepting applications until 5 p.m. on May 31, 2013, or until all funding is awarded, whichever occurs first. Grant awards will be made on a first-come, first-served basis.

For additional up-to-date information on the grant application process, eligibility requirements, and copies of the application forms for the TNGVGP, visit the TERP website, www.terpgrants.org, or call 800-919-TERP (8377).