All-Electric Grants

The Texas Commission on Environmental Quality (TCEQ), through its Texas Volkswagen Environmental Mitigation Program (TxVEMP), is soliciting applications under its FY2023 All-Electric Request for Grant Applications (RFGA) program, Solicitation No. 582-23-44687-VW. This grant opportunity is part of the broader effort by the state to administer environmental mitigation funds stemming from the Volkswagen emissions violation settlement. The program’s objective is to fund eligible all-electric projects aimed at reducing nitrogen oxides (NOx) emissions in specific priority areas throughout Texas. The funding originates from the VW Environmental Mitigation Trust and aligns with Texas' Beneficiary Mitigation Plan. The grant supports a range of project types, including the replacement or repowering of diesel-powered vehicles and non-road equipment with electric alternatives, as well as the installation of associated electric or hydrogen refueling infrastructure. Eligible categories include Class 8 local freight or port drayage trucks, Class 4-8 buses (school, shuttle, and transit), Class 4-7 local freight trucks, airport ground support equipment, forklifts, and port cargo handling equipment. Repower projects must install certified engines that emit at least 25% less NOx than those being replaced. Refueling infrastructure projects must directly support the newly funded equipment and cannot be leased. Eligible applicants include individuals, corporations (including out-of-state entities operating in Texas), state and local government agencies, and other legal entities. Projects must operate primarily in designated priority counties such as those in the Dallas-Fort Worth, Houston-Galveston-Brazoria, Austin, San Antonio, and El Paso areas, among others. Entities serving as pass-throughs are not eligible. Vehicles or equipment must have been owned and operated in Texas for at least two years prior to the application and be in operational condition. The grant requires grant-funded equipment to operate in the specified priority areas for at least 51% of its annual activity life. Applications will be accepted until 5:00 p.m. Central Time on August 31, 2025, with a program opening date of June 29, 2023. Applications can be submitted by email to VWsettle@tceq.texas.gov or by physical mail. There are no pre-application meetings, but applicants can request clarifications by contacting the Air Grants Division. The total program funding is projected at approximately $87 million, with reimbursement rates up to 100% for governmental entities and up to 75% for private entities, depending on project type and entity classification. Refueling infrastructure may only support one fuel type per site per application. Evaluation is conducted on a first-come, first-served basis for substantially complete applications that meet eligibility criteria. Projects will be reviewed by category and priority area. No more than 50% of the funding allocation for a project category or area may be awarded to a single applicant, including affiliated entities. The old equipment being replaced must be rendered permanently inoperable and verified through approved methods such as crushing or cutting the engine block. Grant recipients are required to maintain ownership and operational records for five years post-reimbursement. For additional assistance, applicants may contact the TCEQ Air Grants Division at 833-215-TXVW (8989) or email VWsettle@tceq.texas.gov. The full RFGA and application materials are available at www.txvwfund.org. Reimbursement requests must be submitted no later than October 31, 2026, unless extended by prior written approval.

Include all required photos and documentation. Label each activity clearly and use consistent units for fuel/usage data.