The Texas Natural Gas Vehicle Grant Program (TNGVGP) is a significant initiative by the Texas Commission on Environmental Quality (TCEQ) aimed at reducing emissions and promoting cleaner transportation within the state. This program provides financial assistance to repower heavy-duty or medium-duty motor vehicles with natural gas engines or to replace them with new natural gas vehicles. Here’s a comprehensive look at the program, its benefits, and how you can apply.
Why Consider a Natural Gas Upgrade?
Natural gas vehicles (NGVs) offer a cleaner alternative to traditional diesel or gasoline-powered vehicles. By switching to NGVs, operators can significantly reduce their carbon footprint and contribute to a healthier environment. The TNGVGP makes this transition more accessible by offering substantial financial incentives.
Program Overview
The TNGVGP is designed to assist operators of heavy-duty and medium-duty vehicles in Texas. The program provides grants to either repower existing vehicles with natural gas engines or replace them entirely with new natural gas vehicles.
Key Benefits
- Financial Assistance: Some applicants may qualify for up to 90 percent of the cost to repower or replace their vehicles.
- Environmental Impact: Switching to natural gas can significantly reduce emissions, contributing to cleaner air quality.
Eligibility Criteria
To qualify for the TNGVGP, vehicles and engines must meet specific criteria:
- Vehicles/Engines Eligible for Replacement/Repower
- Must be powered by diesel or gasoline.
- Must be a heavy-duty or medium-duty vehicle greater than 8,500 lbs.
- Natural Gas Vehicles/Engines Eligible for Purchase
- Must be a TCEQ-approved natural gas vehicle/engine powered by compressed natural gas (CNG), liquefied natural gas (LNG), or liquefied petroleum gas (LPG).
- Must be of the same type and general weight class as the old vehicle/engine.
Grant Areas
Grants are awarded to applicants who will operate their new or repowered vehicles in one or more of the following eligible counties:
- Austin Area: Bastrop, Caldwell, Hays, Travis, Williamson
- Beaumont-Port Arthur Area: Hardin, Jefferson, Orange
- Corpus Christi Area: Nueces, San Patricio
- Dallas-Ft. Worth Area: Collin, Dallas, Denton, Ellis, Henderson, Hood, Hunt, Johnson, Kaufman, Parker, Rockwall, Tarrant, Wise
- El Paso Area: El Paso
- Houston-Galveston-Brazoria Area: Brazoria, Chambers, Fort Bend, Galveston, Harris, Liberty, Montgomery, Waller
- San Antonio Area: Bexar, Comal, Guadalupe, Wilson
- Tyler-Longview Area: Gregg, Harrison, Rusk, Smith, Upshur
- Additional Counties: Austin, Aransas, Atascosa, Bee, Bell, Brazos, Burleson, Calhoun, Colorado, DeWitt, Duval, Falls, Fayette, Freestone, Frio, Goliad, Gonzales, Grimes, Hill, Jackson, Jim Wells, Karnes, La Salle, Lavaca, Lee, Leon, Limestone, Live Oak, Madison, Matagorda, McLennan, McMullen, Medina, Milam, Navarro, Refugio, Robertson, Victoria, Walker, Washington, Webb, Wharton
For more information about this opportunity, please contact an A&M representative. You can subscribe to our Tax Compass Credits and Incentives blog here.
https://www.alvarezandmarsal.com/insights/texas-natural-gas-vehicle-grant-program-pathway-cleaner-transportation
