Emission Reduction Incentive Grants Program

As of May 2025, this program is currently closed and not accepting applications from homeowners. When it was active, it offered grants covering up to 80% of incremental costs for replacing or repowering locomotives, marine vessels, stationary equipment, and select non-road equipment with cleaner alternatives, plus funding for related refueling infrastructure.

This competitive grant program is currently closed as of May 2025. When applications reopen (with the next cycle accepting applications through September 4, 2026), contractors should help customers understand that grants cover up to 80% of incremental equipment costs and that projects with the lowest cost per ton of NOx emissions reduced will score highest, making emissions calculations critical to competitiveness.

ERIG is a competitive grant program under Texas's Emission Reduction Plan that funds replacement or repowering of locomotives, marine vessels, stationary equipment, and select non-road equipment, plus associated refueling infrastructure for electricity, hydrogen, CNG, LNG, LPG, or methanol. Eligible applicants are individuals, governments, corporations, or other legal entities in designated Texas counties; maximum grant is 80% of incremental cost but cannot exceed cost-per-ton thresholds ($35,000/ton NOx for non-road/stationary, $20,000/ton for marine/locomotives), with awards prioritized by lowest cost-per-ton and highest total NOx reduction. Applications must be submitted electronically through TERP Online SUNSS with supporting documentation including W-9 and equipment photos.