Texas Volkswagen Environmental Mitigation Program (TxVEMP) All-Electric Grant

• Individuals, state and local governments, corporations, or any other legal entity. This may include a corporation headquartered outside of Texas, but which operates vehicles or equipment primarily in an eligible priority area in Texas (See Appendix A of the RFGA).
  
  
• All business entities must have an active registration with the Texas Secretary of State by no later than the program opening date listed on the cover page of RFGA . If awarded a contract, businesses must maintain an active registration during the contract period.

To be eligible for a grant, an applicant must be replacing or repowering a vehicle or a piece of equipment from one of the categories listed below, and may request additional funding for refueling infrastructure.

• Class 8 Local Freight and Port Drayage Trucks Must be powered by a diesel engine of a model year 1992 through 2009, used to transport freight, cargo, or refuse, and have a gross vehicle weight rating of greater than 33,001 pounds.
  
  
• Class 4-7 Local Freight Trucks Must be powered by a diesel engine of a model year 1992 through 2009, be used to transport freight, cargo, or refuse, and have a gross vehicle weight rating between 14,001 to 33,000 pounds.
  
  
• Refueling Infrastructure Applicants purchasing on-road vehicles or non-road equipment may request additional funding for refueling infrastructure. Allowable alternative fuels are as follows:
  • electricity
  • hydrogen
  
  Note: refer to Section 2.7 of the RFGA for additional information

An on-road vehicle eligible for replacement or repower must:

1. Have been owned or otherwise commercially financed and registered and operated by the applicant in Texas for at least the two years immediately preceding the application signature date:
   1. Vehicles with apportioned registration to allow for operation in multiple states must have been operated in Texas at least 75% of the annual mileage for at least the two years preceding the application date.
      
      
2. Have been used in its primary function in the routine operations of the applicant in Texas for at least the two years immediately preceding the application signature date.
   
   
3. Have a diesel engine certified to the United States Environmental Protection Agency (EPA) heavy-duty on-road engine emissions standards.
   
   
4. Be in operating condition with at least five years of useful life remaining.
   
   
5. Meet any other requirements for its eligible project category (See Section 2.2).

These projects replace eligible on-road vehicles or non-road equipment with newer models. If awarded a grant, the applicant must destroy the old vehicle or piece of equipment. 

Replacement On-Road Vehicles (new vehicle)

1. The replacement on-road vehicle must:
   1. Be certified to emit at least 25% less nitrogen oxides (NOX ) than the old vehicle.
   2. Have an electric engine (including hydrogen fuel cells and battery-electric vehicles).
   3. Have a vehicle model year no more than one year older than the calendar year in which the vehicle was purchased
   4. Be of the same type and intended for the same use in the same application or vocation. 
   
   
2. Unless the vocational type of the new vehicle is exempt from registration requirements, the vehicle must be registered for operation in Texas. 
   
   
3. On-road vehicles must be replaced by another on-road vehicle unless the applicant wishes to replace an on-road vehicle with a non-road, purpose-built, port drayage truck (also known as a terminal tractor or yard truck). A non-road, purpose-built, port drayage truck is a truck which is designed to operate solely in a non-road capacity to move cargo at a facility and contains a US EPA certified, non-road engine, lacks safety features which the Department of Transportation would require of a vehicle to operate on the road (e.g., turn signal indicators), and is not required to be registered with the Texas Department of Motor Vehicles.

Applicants purchasing on-road vehicles or non-road equipment may request additional funding for refueling infrastructure. 

1. Allowable alternative fuels are as follows: 
   1. Electricity
   2. Hydrogen
2. Applicants may only include one refueling infrastructure project site with a single type of alternative fuel per application.
3. The refueling infrastructure must provide, at a minimum, refueling capacity to the on-road vehicles or non-road equipment replaced or repowered through this grant program.
4. Applicants may expand existing onsite refueling infrastructure to accommodate the additional new grant-funded equipment in lieu of installing new service. 
5. Applicants are required to be the owner of the site where the refueling infrastructure equipment will be installed or be able to demonstrate the ability to install, operate, and maintain the refueling infrastructure at the proposed site for the duration of the contract. If an applicant does not own the property where the refueling infrastructure equipment will be installed, the Refueling Infrastructure Project Certifications under Section 5: Program Certifications of the application must be completed and signed by the applicant and the property owner.
6. All grant-funded refueling infrastructure must be purchased by the applicant and not leased.

1. At least 51% of the grant-funded vehicle or equipment’s annual operation must occur in one of the priority areas listed in Appendix A of this RFGA.
   
   
2. Annual operation will be considered as miles traveled, hours of engine operation, or fuel consumed. For determining the total annual operation, a single unit of measurement (e.g., miles traveled) must be used. Applicants receiving a grant should be prepared to keep and maintain records of their annual operation in the unit of measurement they choose on their application. 
   
   
3. Refueling infrastructure must be owned, operated, and maintained for the duration of the activity life as defined in Section 4.7 of this RFGA. 

Available Funding

1. The total amount awarded under this RGFA will depend upon the amount of funds available to TCEQ under the VW Trust Agreement. TCEQ projects that approximately $87 million will be available to award under this RFGA. 
   
   
2. Funding will be initially allocated based upon eligible project categories and priority area as shown in Appendix C. 
   
   
3. Depending on demand and the requested grant amounts of eligible applications received, TCEQ may redistribute these allocations to best meet the purposes of the program. This may include, but is not limited to, redistributing funds between eligible project categories and priority areas. 
   1. TCEQ will not reallocate funds until the program is open for at least 90 days. 
   2. Where possible, TCEQ will prioritize reallocating funds to maintain the funding allocations by priority area as described in the Beneficiary Mitigation Plan for Texas. 
   
   
4. TCEQ will not be obligated to select project proposals to cover the full amount of expected or available funding even if received within the application deadline. 

Maximum Grant Amounts

For replacement and repower projects, applicants may request up to the lesser of the following options:

1. Governmental entities may request up to 100% of the incremental cost of the project.
   Governmental entities include a state or local government agency (including school district, municipality, city, county, special district, joint powers authority, or port authority owning fleets purchased with government funds), and a tribal government or native village. A privately-owned school bus under contract with a public school district is also eligible for this reimbursement amount. A federal government agency or entity is not included in this definition and will be considered a private entity for this grant program. 
2. Non-governmental entities may request up to 75% of the incremental cost of a project.

Program Grant Tables 

1. Replacement or Repowers of Class 6 Vehicles: https://www.tceq.texas.gov/downloads/air-quality/terp/txvemp/all-electric/all-electric-23-table-class-6-vehicles.pdf
2. Replacement or Repowers of Class 7 Vehicles: https://www.tceq.texas.gov/downloads/air-quality/terp/txvemp/all-electric/all-electric-23-table-class-7-vehicles.pdf
3. Replacement or Repowers of Class 8 Vehicles: https://www.tceq.texas.gov/downloads/air-quality/terp/txvemp/all-electric/all-electric-23-table-class-8-vehicles.pdf

Eligible Costs

Eligible costs must be paid on or after the program opening date listed on the first page of this RFGA to be considered for funding. 

1. Eligible costs for replacement projects include: 
   1. Cost(s) of the grant-funded on-road vehicle or non-road equipment
   2. Taxes and government fees
   3. Delivery and shipping fees
   4. Factory and/or extended warranties 
   5. Maintenance and service contracts 
   6. Mechanic and safety inspections 
   7. Cooperative fees 
   8. Manufacturer or dealer processing fees not related to financing
2. Eligible costs for refueling infrastructure projects must fall under the following categories: 
   1. Equipment
   Equipment includes tangible personal property with an estimated useful life of over one year and a per-unit acquisition cost of $5,000 or more (including sales tax and delivery). This includes equipment with separate, essential component parts if the sum of the separate component parts (including tax and delivery) has an original value of $5,000 or more. 
   2. Supplies
   Non-construction goods and materials having a unit acquisition cost (including sales tax and delivery) of less than $5,000 per unit. 
   3. Construction
   a. The costs for the enhancement or building of permanent facilities.  
   b. Construction costs include:
   -  Planning, designing, and engineering
   -  Materials and labor 
   -  Subcontracts for services in connection with the construction
   -  Facility improvements, such as paving, foundations, and covers
3. Contract Services
    Non-construction related costs for subcontracted or hired-out professional services or tasks provided by a firm or individual who is not employed by the applicant. 

Ineligible Costs

 Ineligible costs include: 

1. Insurance premiums
2. Finance fees and charges
3. Salaries and travel expenses for employees of the grantee
4. Expenses of any lobbyist registered in Texas
5. Costs associated with the preparation and submission of the application
6. Administrative costs of the grantee, including overhead and indirect costs (e.g., office supplies, rent, marketing, and advertising)
7. Any costs paid prior to the program opening date listed on the first page of this RFGA
8. Food and drink
9. Costs that do not involve an arms-length transaction, such as the use of existing inventory without a proof of purchase or a transaction with a related business affiliate. Transactions between related businesses (subsidiary, sister, or parent companies) are not considered arms’ length transactions, but indicate a potential conflict of interest. TCEQ will consider costs between business affiliates ineligible unless sufficient documentation is provided demonstrating that procedures were in place to mitigate any conflict of interest. Grantees should seek approval from TCEQ prior to incurring and paying expenses of this nature. 

An application may only include activities involving one project category, replacement vehicle fuel type, and priority area. Projects involving different project categories, fuel types, or priority areas should be applied for in separate applications. Please discuss any questions with TxVEMP staff at (833) 215-TXVW (8989) before submitting an application. 

Application Process

• All applications for funding under this RFGA must be substantially complete. Submission of an application that is not substantially complete may result in the application being determined ineligible. A substantially complete application must include: 

1. All pages of the application
2. All required attachments
3. Applicant’s contact information
4. All required signatures
5. All the information necessary for TCEQ to review the eligibility of the project and subsequently award grant funds

• At the sole discretion of the TCEQ, applicants whose applications are missing a minor amount of required information may be provided with an additional opportunity to provide that information. In this event, TCEQ will notify the applicant in writing or by phone with the details about what is missing from the application. Applicants will be provided a deadline of three (3) full business days to submit the missing information to TCEQ. The deadline will begin on the first full business day following the date the applicant is notified by TCEQ and will end at 5:00 p.m., Central Time (CT), on the third full business day. If the missing information is not received by TCEQ by 5:00 p.m. CT on the third full business day, the application may be determined ineligible by TCEQ. 
  
  
• Applicants may not submit more than 10 activities in a single application. If an applicant has more than 10 activities, additional applications may be submitted.
  
  
• Applicants will be required to submit documentation and photographs with the application to demonstrate the eligibility of on-road vehicles and non-road equipment being replaced or repowered including:  
  • Color photographs of the vehicle and equipment being replaced including the front, right side, left side, rear, engine, and engine data plate. Photographs of the vehicle and equipment should include tires or tracks. All photographs must be clear enough to read pertinent information (e.g., engine plate information).  
  • On-road projects will require the following documentation: 
    •  A copy of the vehicle title listing the applicant as the owner or lessor, for the two years immediately preceding the application signature date.
    • Registration renewal receipts for the 12 months immediately preceding the application signature date. An apportioned registration for operation in several states including Texas may be considered as proof of continuous registration and operation in Texas.
      
      
• Applicants with projects that include refueling infrastructure must provide documentation that includes: 
  • A site plan with the application (including a scaled map which could be a photograph, satellite map, drawing, or similar graphic of the proposed site – none of which are required to be formally drawn or certified by an engineer or architect) that shows the planning and design of the proposed facility. The site plan must: 
    • Demonstrate how the vehicle or equipment may access the proposed facility.
    • Provide the location of the facility within the property and include any easements, set-back requirements, and property boundaries. 
  • A demonstration of their ability to install, operate and maintain the refueling infrastructure at the proposed site by providing documentation, such as property ownership records, or other legal agreements, that can show the following: 
    • The ability to complete any required construction on the proposed site.
    • The ability to operate on the proposed property for at least 5 years from the date the application is signed.
      
      
• Applicants must request TCEQ’s preauthorization of an alternative method of disposition for the on-road vehicle, non-road equipment, and/or engine being replaced by completing Section 9 of the application. If approved, the alternative method of disposition will be included in the special conditions of the contract; otherwise, the standard methods described in Section 4.6 of this RFGA will be required. 
  
  
• Private consultants may be available to assist an applicant with completing and submitting an application. TCEQ neither encourages nor discourages the use of a consultant to assist with the application process. Consultants do not represent TCEQ, and TCEQ has no agreements where applications submitted by a particular consultant will receive more favorable treatment than other applications. 
  
  
• The applicant must indicate in the application if the application was prepared by a third party (someone other than the applicant or an employee of an applicant). If a third party prepares the application, the third party must also sign the application and certify that the information provided in the application is true and correct and as represented to the third party by the applicant. A third party’s failure to sign the application or signing it with a false statement may make the application ineligible, may make any resulting contracts voidable, and may subject the third-party preparer to criminal or civil penalties.
  
  
• By signing the application, the applicant is certifying its understanding and compliance with the statements listed in Sections 4 and 5 of the application, as well as with any state statutes, regulations, policies, guidelines, and requirements as they relate to the application, acceptance, and use of funds for the project. If any of these certifications change between submittal of the application and award of a contract, the applicant must notify TCEQ within three (3) business days of becoming aware of the change. Failure to notify TCEQ of any changes to these certifications may make the application ineligible and may make any resulting contracts voidable. 
  
  
• Applications will be accepted for consideration during this grant period only if received by TCEQ via electronic mail at VWsettle@tceq.texas.gov or via mail at one of TCEQ’s addresses listed below no later than 5:00 p.m., Central Time, on the application submission deadline listed on the cover page of this RFGA, as long as funds are available. 
  
  
• Applications may be submitted electronically using one of the methods listed below. It is preferable that the application and its attachments be submitted as a single PDF. If the attachments for an application will be submitted as separate files, each attachment must be grouped by activity and clearly labeled with the activity number at the top of each page. 
  • Submitting Applications via Email. For applications that are submitted via email to VWsettle@tceq.texas.gov please use the following naming convention for your application file in the subject line: ‘FY23 TxVEMP and [your legal name].’ Only one application may be submitted per email at a maximum total file size of 25MB. 
  • Submitting Applications via TCEQ’s FTPS Server. If the application is larger than 25MB, please submit by uploading the file to TCEQ’s file transfer protocol secure (FTPS) server and selecting the share file(s) button. Enter VWsettle@tceq.texas.gov as the email address. Detailed directions for using TCEQ’s FTPS Server can be found at https://ftps.tceq.texas.gov/help/. Please note: Applications uploaded to TCEQ’s FTPS server without completing the share file(s) step will not be considered as submitted. See detailed instructions on how to share files via TCEQ’s FTPS server.  
    
    
• Applications may also be submitted by mailing a physical copy to one of these addresses: 
  • Standard Mail
    Texas Commission on Environmental Quality
    Air Grants Division (TxVEMP)
    MC-204  P.O. Box 13087 
    Austin, TX 78711-3087 
  • Express Mail
    Texas Commission on Environmental Quality 
    Air Grants Division (TxVEMP), MC-204
    12100 Park 35 Circle, Building F, 1st Floor, Suite 1301 
    Austin, TX 78753
    
    
• Upon submission, all proposals become the property of the State of Texas and as such become subject to public disclosure under the Texas Public Information Act (PIA), Texas Government Code, Chapter 552. 

1. Class 8 Local Freight Trucks and Port Drayage Trucks Application: https://www.tceq.texas.gov/downloads/air-quality/terp/txvemp/all-electric/all-electric-23-port-drayage-20970a.pdf
   
   
2. Class 4-7 Local Freight Trucks Application: https://www.tceq.texas.gov/downloads/air-quality/terp/txvemp/all-electric/all-electric-23-freight-truck-20970c.pdf