Texas Commission on Environmental Quality opens applications for $12M in biofuel funding

In Texas, Texas Commission on Environmental Quality (TCEQ) is now accepting applications under the Texas Emissions Reduction Plan’s (TERP) Alternative Fueling Facilities Program (AFFP) with $12 million in funding available to encourage the construction and reconstruction of alternative fueling facilities within the 88 counties making up the Clean Transportation Zone. 

Grant Amounts

·      Up to $400,000 for Compressed Natural Gas (CNG) or Liquified Natural Gas (LNG) projects

·      Up to $600,000 for combined CNG and LNG projects

·      Up to $600,000 or 50% of eligible project costs, whichever is less, for fuels other than natural gas.

Who Can Apply?

·      Individuals, state and local governments, corporations, or any other legal entity.

·      All business entities must have an active registration with the Texas Secretary of State by the program opening date.

·      Applicants must be the entity that will purchase and own the grant-funded equipment during the contract period. 

Eligible Projects

·      Projects must include the construction or reconstruction of an alternative fueling facility. Reconstruction is defined as the expansion of a site to provide a new and different alternative fuel that does not exist at the site.

·      Projects must provide fueling or charging infrastructure fixed at a single, specified geographic location.

·      Eligible alternative fuel types include: CNG, LNG, CNG and LNG, hydrogen, biodiesel, biodiesel blends, propane, electricity, and methanol (at least 85% by volume).

Projects must be in the 88 counties making up the

Clean Transportation Zone (CTZ).

·      Projects that are open to the public will be considered for funding before private facilities.

Detailed eligibility requirements, application forms, and instructions are available on the AFFP webpage. Applications will be accepted until 5:00 p.m. CST on Tuesday, Jan. 20, 2026.