The Texas Commission on Environmental Quality (TCEQ) opened applications for the Emissions Reduction Incentive Grants (ERIG) program on April 30, 2026, offering $62.8 million in competitive funding.
The grants, managed under the Texas Emissions Reduction Plan (TERP), are intended to reduce nitrogen oxide (NOₓ) emissions in nonattainment areas and affected counties across the state.
This competitive grant cycle is part of the agency’s broader efforts to improve air quality by incentivizing the modernization of heavy-duty equipment and marine vessels. Unlike the first-come, first-served rebate programs typically offered by the commission, the ERIG program utilizes a competitive evaluation process based on the cost-effectiveness of emission reductions.
According to the agency, the initiative is critical for high-traffic regions like Houston and Dallas-Fort Worth that struggle to meet federal ozone standards, as it directly targets the stationary and non-road sources that contribute significantly to regional pollution.
According to the TCEQ, eligible project categories for this cycle include the replacement or repower of non-road and stationary equipment powered by engines 25 horsepower or greater. The program also covers marine vessels and both linehaul and switcher locomotives subject to U.S. Environmental Protection Agency (EPA) emission standards.
Applicants, including individuals, corporations, and local governments, may also seek optional add-on funding for onsite alternative refueling infrastructure when it is associated with an eligible equipment replacement project.
The opening of the ERIG program follows previous reporting by The Texas Dispatch regarding the TCEQ’s launch of the $116 million TERP Rebate Grants Program. While the Rebate Grants specifically target on-road heavy-duty vehicles, the ERIG program broadens the state’s air quality strategy to include industrial and maritime sources.
Projects funded through ERIG must meet strict cost-per-ton limits for NOₓ reductions and are required to operate primarily within specified counties that have been identified as having elevated pollution levels. Applications for this competitive funding will be accepted through the TERP online system until 5:00 p.m. CT on September 4, 2026.
“The Texas Emissions Reduction Plan (TERP) helps improve air quality in Texas by providing grants and incentives to reduce emissions and to support the use of cleaner fuels and advanced technologies,” the TCEQ stated in its program announcement.