The Texas Commission on Environmental Quality (TCEQ) has opened the application period for its Alternative Fueling Facilities Program (AFFP), part of the Texas Emissions Reduction Plan (TERP). The program offers $12 million in grants to support the construction and reconstruction of alternative fueling stations across 88 counties designated as the Clean Transportation Zone.
Grants are available in varying amounts depending on project type. Projects focused on compressed natural gas (CNG) or liquified natural gas (LNG) can receive up to $400,000. Those combining CNG and LNG are eligible for up to $600,000. Projects using fuels other than natural gas may qualify for up to $600,000 or 50% of eligible costs, whichever is less.
Applicants can include individuals, government entities at all levels, corporations, and other legal entities. All business applicants must have active registration with the Texas Secretary of State as of the program’s opening date. The applicant must also be the purchaser and owner of any equipment funded by these grants during the contract period.
Eligible projects must involve building or expanding an alternative fueling facility at a fixed location within one of the specified counties. Expansion projects must add a new type of alternative fuel not previously available at that site. Qualifying fuel types include CNG, LNG, hydrogen, biodiesel and its blends, propane, electricity, and methanol containing at least 85% by volume.
Publicly accessible facilities will be prioritized over private ones when awarding funds. Applications are being accepted until 5:00 p.m. CST on January 20, 2026. Detailed requirements and application materials are available on the AFFP webpage.
For more information about this funding opportunity or assistance with applications, interested parties can contact TERP staff toll-free at 800-919-TERP (8377) or via email at terp@tceq.texas.gov.
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