Call for Applications: Texas Natural Gas Vehicle Grant Program (TNGVGP)

The Texas Commission on Environmental Quality (TCEQ) is now accepting applications under the Texas Natural Gas Vehicle Grant Program (TNGVGP).

Donor Name: Texas Commission on Environmental Quality (TCEQ)

State: Texas

County: Selected Counties

Type of Grant: Grant

Deadline: 03/31/2023

Size of the Grant: $1,000


The TNGVGP provides grants to encourage an entity that owns and operates a heavy-duty or medium-duty motor vehicle to repower the vehicle with a natural gas engine or replace the vehicle with a natural gas vehicle.

Eligible Project Categories

TCEQ will provide grants to offset the incremental cost for the replacement or repower of an eligible medium-duty or heavy-duty motor vehicle with a vehicle or engine powered by natural gas. Under the TNGVGP, eligible natural gas fuels include compressed natural gas (CNG), liquefied natural gas (LNG), and liquefied petroleum gas (LPG).

  • Replacement Projects
    • An applicant may apply for a grant if the vehicle being replaced is an on-road heavy-duty or medium-duty vehicle that runs on gasoline or diesel.
  • Repower Projects
    • A repower project may include the replacement of the engine in an existing vehicle with a qualifying engine. A repower project may also include conversion of the existing vehicle or engine with an eligible conversion system.

Funding Information

Grantees will receive the lesser amount of either:

  • The standardized grant amounts set by TCEQ in the Maximum Grant Amount Tables; or
  • Ninety percent (90%) of the incremental cost (the eligible costs associated with the qualifying vehicle minus scrappage value).
    • TCEQ will use a scrappage value of $1,000 for replacement projects and $250 for repower projects to calculate grant awards.

Eligible Applicants

Eligible applicants include:

  • Individuals and entities operating an on-road heavy-duty or medium-duty vehicle registered to operate in Texas.
    • Business entities such as corporations or partnerships must have an active registration with the Texas Secretary of State by the date of grant program opening. Businesses must maintain an active registration during the contract period if awarded a grant.

For more information, visit TNGVGP.