The Texas Commission on Environmental Quality (TCEQ) has opened a new round of funding under the Texas Emissions Reduction Incentive Grants (ERIG) program. The program will provide $60 million in grant funding to cover up to 80% of the eligible costs of replacing, purchasing, leasing, repowering or retrofitting heavy duty diesel vehicles and equipment in Texas.

The ERIG program is open to any entity operating diesel vehicles or equipment in Texas. The program has broad applicability, and includes on-road and off-road vehicles, marine vessels, locomotives and stationary equipment. An applicant must commit to replacing existing diesel-powered vehicles and equipment with newer, cleaner diesel vehicles and equipment over 18-24 months, resulting in a reduction of NOx emissions of 25% or more. The vehicles being replaced must have been operated in Texas for at least two years, must be in operating condition with at least five years of useful life remaining, and must be destroyed within 90 days of receipt of funding. Vehicles must be used in designated areas in Texas for at least 75% of their annual mileage and at least 25% in eligible counties. There are over 40 eligible counties covering areas around Austin, Corpus Christi, Dallas, Fort Worth, El Paso, Houston, Galveston, San Antonio, Tyler, Longview and several other counties.

The grant awards are made on a competitive basis considering emission reductions and costs of the project. Grants will be paid on a reimbursement basis, after the qualifying vehicle or equipment has been purchased. Successful applicants must monitor and make annual reports of the location of use and mileage traveled over the activity life of the vehicle to the TCEQ. The application must provide details on the description of vehicles and equipment to be replaced and the purchased vehicles or equipment as well as the projected emission reductions for the new vehicles or equipment. The application deadline is January 10, 2017.

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