Texas Commission on Environmental Quality (TCEQ) invites applications for Governmental Alternative Fuel Fleet Grant Program (GAFF) to provide grants to purchase or lease new vehicles that operate primarily on compressed natural gas, liquified natural gas, liquified petroleum gas (propane), hydrogen fuel cells, or electricity.
Donor Name: Texas Commission on Environmental Quality (TCEQ)
State: Texas
County: Selected Counties
City: Selected Cities
Type of Grant: Grant
Deadline: 05/16/2023
Size of the Grant: $3.9 million
Details:
Purpose
TCEQ invites applications from state agencies and political subdivisions that operate a fleet of more than 15 motor vehicles, excluding motor vehicles that are owned and operated by a private company or third party under contract with the entity. Mass transit or school transportation providers or other public entities established to provide public or school transportation are also invited to apply.
The GAFF program is established under Texas Health and Safety Code, Chapter 395, to fund the purchase or lease of new motor vehicles that operate primarily on alternative fuel, as well as the purchase, lease, or installation of refueling infrastructure or equipment, or the procurement of refueling services, to store and dispense alternative fuel.
Alternative fuel means compressed natural gas (CNG), liquefied natural gas (LNG), liquefied petroleum gas (LPG), hydrogen fuel cells, or electricity, including electricity to power fully electric motor vehicles and plug-in hybrid motor vehicles.
Funding Information
The total amount to be awarded under this grant program will depend upon the amount of revenue received into the TERP trust fund, but it is anticipated to be $3.9 million. TCEQ may offer to fund less than the total dollar amount requested for a project.
- TCEQ has established pre-determined grant amounts for the purchase or lease of new motor vehicles. Grant amounts by vehicle class are provided below.
- Class 1 Vehicles: $17,000
- Class 2-3 Vehicles: $23,000
- Class 4-6 Vehicles: $40,000
- Class 7-8 Vehicles, School Buses, and Transit Buses: $80,000
- The total requested grant amount for refueling infrastructure or equipment may not exceed 10% of the total requested grant amount for the project.
- Funds may be advanced through a contract between TCEQ and the grantee, and then reconciled with documented, eligible, final costs, along with any other financial incentives received. Any financial incentives that directly reduce the costof the proposed activity, such as tax credits or deductions, other grants, or any other public financial assistance must be disclosed along with proof of purchase documentation to TCEQ. Alternatively, grantees may choose to receive funds through a reimbursement process, which requires documentation of eligible, final costs paid and the disclosure of any financial incentives. Under either payment method, the grant amount plus financial incentives must not exceed the total eligible cost of the project.
Eligible costs for the purchase or lease of new motor vehicles and the purchase, lease, installation, or procurement of refueling infrastructure or equipment are provided below.
Eligible Costs
- Purchase or Lease of New Motor Vehicles
- Purchase or operating lease invoice cost or capital lease cost basis of the vehicle, including taxes, duty, protective in-transit insurance, and freight charges.
- Purchase, Lease, Installation or Procurement of Refueling Infrastructure or Equipment
- Invoice cost or cash basis of the lease or service agreement costs for the infrastructure or equipment including taxes, duty, protective in-transit insurance, and freight charges for the term of the contract.
- Invoice cost of additional equipment with a per unit acquisition cost of $5,000 or more that is necessary for the completion of the project.
- Installation of the infrastructure or equipment and associated on-site electrical work. Technical design, testing, and other engineering services required as part of the installation work should also be included under this subcategory. The costs for permitting required as part of the installation may also be included.
Eligible Projects
Eligible projects under this solicitation include the:
- purchase or lease of a new motor vehicle that is originally manufactured to operate using one or more alternative fuels or is converted to operate using one or more alternative fuels before the first retail sale of the vehicle; and
- purchase, lease, or installation of refueling infrastructure or equipment or the procurement of refueling services for those vehicles.
Applicants must prioritize the following activities when using grant funds, and must indicate their priority activity or activities (in the application):
- The purchase or lease of new motor vehicles, including new motor vehicles that are converted to operate on an alternative fuel, when replacing vehicles or adding vehicles to the fleet.
- The purchase of new motor vehicles, including new motor vehicles that are converted to operate on an alternative fuel, to replace vehicles that have the highest total mileage and do not use an alternative fuel.
- To the extent feasible, whether by purchase, purchase and conversion, or lease, obtaining motor vehicles that use CNG, LNG, or LPG.
Eligible Applicants
- Eligible applicants include a state agency or political subdivision that operates a fleet of more than 15 motor vehicles, excluding motor vehicles that are owned and operated by a private company or other third-party under a contract with an entity.
- A “political subdivision” means a county, municipality, school district, junior college district, river authority, water district or other special district, or other political subdivision created under the constitution or a statute of this state.
- Eligible applicants also include a mass transit or school transportation provider or other public entity established to provide public or school transportation services.
- Applicants must disclose any known apparent, potential, or actual conflicts of interest to TCEQ in writing at the time the application is submitted. Businesses or other entities in which a TCEQ employee, spouse, or family member of a TCEQ employee has a direct or indirect interest, financial or otherwise, may be prohibited from receiving a grant, depending upon the nature of the interest.
- Grants will not be awarded to third-party entities to pass on to the owners or operators of the vehicles or equipment.
For more information, visit TCEQ.