The Texas Commission on Environmental Quality (TCEQ) is now accepting applications for $37.8 million in grants from the Texas Natural Gas Vehicle Grant Program, the commission announced.

The program provides grants to encourage fleets that operate heavy-duty or medium-duty motor vehicles to repower them with a natural gas engine or replace them with a natural gas vehicle.

Eligible entities may include individuals, corporations, organizations, governments or governmental subdivisions or agencies, business trusts, partnerships, associations, or any other legal entity in the State of Texas.

Vehicles that are eligible for replacement or repower must be powered by a diesel or gasoline engine; have a gross vehicle weight rating (GVWR) greater than 8,500 lbs.; be in good operating condition with at least two years of remaining useful life; and have been owned, leased, or commercially financed and registered and operated (at least 75% of the annual mileage) by the applicant in Texas for at least the two years immediately preceding the submission of a grant application.

Grant awards will provide reimbursement up to 90% of the incremental cost for the replacement or repowering of an existing diesel or gasoline vehicle or engine with a natural gas vehicle or engine. Predetermined grant amounts are based on the size of the fuel system of the new or repowered natural gas vehicle and the historical usage of the vehicle being replaced.

Applications must be received no later than 5:00 p.m. Central Time, May 26, 2017. Grants will be awarded on a first-come, first-served basis.

For full details, click here.