Looking to replace an old, heavy-duty vehicle or piece of equipment? Check your eligibility for a TERP grant

If you’re located in Texas and have an older vehicle or equipment that is still in operating condition, you may be eligible for a replacement grant under the Texas Commission on Environmental Quality’s Texas Emissions Reduction Plan Program (TERP).

Now’s a good time to see if your vehicles or equipment qualify, with new grant opportunities on the horizon.

We asked TCEQ’s Deputy Director of Air Grants, Michael Wilson, to answer a few questions about TERP’s most popular grant programs, eligibility requirements, where to get more information and where to apply for a grant.

What is TERP?

TERP provides grants to replace older vehicles and equipment with newer models.

The most popular programs for the replacement of equipment and vehicles under TERP include the Emissions Reduction Incentive Grants (ERIG) Program and the Rebate Grants Program.

Vehicles and equipment eligible for replacement under the ERIG and Rebate Grants programs include:

  • Vehicles with a gross vehicle weight rating of at least 8,500 lbs. and powered by a heavy-duty engine; and
  • Equipment powered by an engine rated at 25 horsepower (hp) or greater.

This includes heavy-haul trucks, dump trucks, agricultural equipment, and construction equipment.

What is the goal of TERP?

There are certain areas in Texas that are currently not meeting, or that are close to not meeting, air quality standards set by the U.S. Environmental Protection Agency. These areas include the more populous areas of the state like the Houston-Galveston-Brazoria, Austin, San Antonio, and Dallas-Fort Worth areas.

The primary goal of TERP is to help reduce pollution from vehicles and equipment within these areas. We do that by replacing older, dirtier vehicles and equipment with newer models.

Who is eligible for TERP?

Just about anyone is eligible to apply so long as they currently own and operate an eligible vehicle or piece of equipment in Texas. They must have also owned and operated the vehicle or equipment in Texas for the previous two years.

The vehicle or equipment being replaced must be in good operating condition and used in the daily operations of the applicant.

What’s the application process?

TCEQ posts applications for various grants on the TERP webpage. An applicant must complete and submit the application to the TCEQ by the deadline provided to be considered for a grant.

TCEQ selects applicants either on a first-come, first-served or competitive basis, depending on the type of grant. Once selected for a grant, an applicant will receive a grant agreement to sign and return to the TCEQ.

Once the grant agreement is signed, the grantee has approximately 18 months to purchase the new vehicle or equipment and be reimbursed by TCEQ. Reimbursement amounts may be up to 80% of the cost to purchase the new vehicle.

Is there anything required of people who participate in TERP after they replace a piece of equipment or a vehicle?

Yes! Grantees must agree to destroy the old vehicle or equipment being replaced. They must also commit to operating the new vehicle or equipment at least 55% of its annual mileage or hours of operation in certain areas of the state. For a list of eligible areas and counties, please visit www.terpgrants.org.

How can individuals and businesses participate in the program?

Join our mailing list! Interested parties can visit www.terpgrants.org to sign-up for email updates. Updates include schedules for upcoming webinars and announcements of upcoming grant rounds. Interested parties may also call us at 800-919-TERP to figure out which program is the best fit for them.

Photo by Jed Owen on Unsplash