Emissions Reduction Incentive Grants Program

The Emissions Reduction Incentive Grants Program, administered by the Texas Commission on Environmental Quality (TCEQ), offers financial incentives for repowering or replacing older locomotives, marine vessels, stationary equipment, and select non-road equipment. The core mission of this program aligns with environmental protection and public health by directly targeting the reduction of nitrogen oxides (NOx) emissions. This initiative is particularly focused on nonattainment areas and other affected counties within Texas, aiming to improve air quality where it is most needed. The program serves as a strategic tool to modernize equipment fleets, thereby reducing the environmental footprint of various industries operating within the state. The primary target beneficiaries of this grant program include individuals, state and local governments, corporations, and other legal entities that operate the aforementioned types of equipment in Texas. This broad eligibility ensures that a wide range of organizations can participate in efforts to reduce emissions. The impact goals are directly tied to environmental improvement, specifically reducing NOx emissions. By offering incentives, the program aims to encourage the adoption of cleaner technologies, leading to better air quality for residents and ecosystems within the targeted regions. The expected outcomes include a measurable decrease in harmful air pollutants, contributing to a healthier environment and potentially mitigating issues related to climate change. The program prioritizes projects that involve the replacement or repowering of select non-road and stationary equipment, marine vessels, and locomotives. This focus is driven by the significant NOx emissions these types of equipment typically produce. Funding information specifies that an applicant can request up to 80% of the incremental cost of replacement equipment, with a maximum incentive tied to a cost-per-ton (CPT) of NOx reduced. For marine and locomotive projects, the CPT is $20,000, while for stationary and non-road equipment projects, it is $35,000. These specific CPT values dictate the financial leverage provided for different types of emission reduction efforts. Eligible criteria further define the program's strategic priorities. Applicants must meet specific requirements at the time of application, including being a legally recognized entity. Corporations or partnerships must maintain active registration with the Texas Secretary of State throughout the contract period. Furthermore, applicants are required to disclose any potential conflicts of interest with TCEQ. This emphasis on transparency and legal compliance ensures the integrity and effectiveness of the grant distribution process. The program’s theory of change is that by offering significant financial incentives and clearly defining eligible projects and beneficiaries, it can accelerate the adoption of cleaner technologies and achieve substantial, measurable reductions in NOx emissions across key sectors in Texas.