TCEQ Extends TxVEMP Application Deadline and Expands Eligible Fuel Types for Governmental Entities
AUSTIN, TX — The Texas Commission on Environmental Quality (TCEQ) has issued Addendum 5 to the Texas Volkswagen Environmental Mitigation Program (TxVEMP), extending the application deadline and broadening the fuel types eligible for on-road vehicle replacements and repowers for governmental entities only.
Applications will now be accepted until 5:00 p.m. CT on Friday, Aug. 31, 2029, or until funds are no longer available, whichever comes first. Approximately $28 million remains available and applications are selected on a first-come, first-served basis.
The most significant change under Addendum 5 involves eligible fuels. Governmental entities replacing or re-powering an on-road vehicle may now select a diesel or alternative fuel vehicle or engine in addition to an electric one.
All new vehicles, equipment and engines must be certified to emit at least 25 percent less nitrogen oxides (NOX) than the vehicle, equipment or engine being replaced.
Grant Amounts
Governmental entities may request up to 100 percent of the incremental cost of replacing or repowering an on-road vehicle, non-road equipment, or freight switcher with an electric model or engine, and up to 100 percent of the incremental cost of replacing or repowering an on-road vehicle with a diesel or alternative fuel vehicle or engine.
Non-governmental entities may request up to 75 percent of the incremental cost for replacing or repowering an on-road vehicle, non-road equipment, or freight switcher with an electric model or engine
Applicants choosing electric models or engines may request additional funding for refueling infrastructure.
Who Is Eligible
Eligible applicants are individuals, governmental entities, corporations, or any other legal entity. A governmental entity is defined as a state or local government agency (including a school district, municipality, city, county, special district, transit district, joint powers authority, or port authority owning fleets purchased with government funds), and a tribal government or native village.
Non-governmental entities replacing or re-powering an on-road vehicle must still select an electric vehicle or engine, including hydrogen fuel cells and battery-electric models. Non-road equipment and freight switchers must be replaced or re-powered with electric equipment or engines regardless of entity type.
Eligible vehicles and equipment include:
• Class 8 local freight trucks and port drayage trucks
• Class 4–8 school buses, shuttle buses, and transit buses
• Class 4–7 local freight trucks
• Airport ground support equipment
• Forklifts and port cargo handling equipment
• Freight switcher locomotives
How to Apply
Applications may be submitted electronically and securely through TCEQ Send or by mail. Detailed eligibility requirements, application forms, and instructions are available on the Texas Volkswagen Environmental Mitigation Program webpage at texasvwfund.org .
Applicants with questions may call 833-215-TXVW (8989) or email vwsettle@tceq.texas.gov.
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