Texas makes $12 million available to support alternative fuel facilities

The Texas Commission on Environmental Quality (TCEQ) is making $12 million available to build or reconstruct alternative fueling facilities statewide. Applications are due March 22, 2024.

The grants come from the Alternative Fueling Facilities Program (AFFP), an initiative that promotes building clean alternative fueling infrastructure. The AFFP is a part of the TCEQ’s Texas Emissions Reduction Program (TERP), a program that improves the state’s air quality by replacing outdated machinery with clean technology upgrades. TERP has distributed over $1.4 billion in grants since 2001 to reduce Nitrogen Oxide emissions.

Eligible alternative fuel types include compressed natural gas (CNG), liquified natural gas (LNG), or a combination of the two. Eligibility will also extend to hydrogen, biodiesel, biodiesel blends, propane, electricity and methanol (at least 85% by volume).

Projects must involve building or reconstructing alternative fueling facilities and be located within TERP’s Clean Transportation Zone, an 88-county area that primarily covers southern and eastern Texas. Eligible applicants include individuals, state and local governments, corporations or other legal entities.

Applicants can seek up to $600,000 in reimbursement for a project combining CNG and LNG. The program will also cover 50% of total project costs – up to $600,000 – for electricity or fuels other than natural gas. CNG or LNG projects are eligible for a maximum $400,000 reimbursement.

TCEQ will dedicate $6 million to support CNG and/or LNG projects, with $2 million for small business gas projects and $4 million for all other natural gas projects. The fund will earmark another $6 million to support all other fuel types. From there, $2 million will support small business alternative fuel projects – including electric vehicle (EV) charging – and $4 million will support all project types.

Applicants may submit their request via mail, email or using TCEQ’s third-party site. Successful applicants will have until April 30, 2026, to request reimbursement for their project.