The Texas Commission on Environmental Quality (TCEQ) has opened the application period for the Alternative Fueling Facilities Program (AFFP), which is part of the Texas Emissions Reduction Plan (TERP). The program offers $12 million in funding to support the construction and reconstruction of alternative fueling stations across 88 counties in what is known as the Clean Transportation Zone.
Grant amounts vary by project type. Projects involving compressed natural gas (CNG) or liquified natural gas (LNG) are eligible for up to $400,000, while combined CNG and LNG projects can receive up to $600,000. For facilities using fuels other than natural gas, grants may cover up to $600,000 or 50% of eligible costs, whichever is less.
Eligible applicants include individuals, state and local governments, corporations, and other legal entities. Businesses must have active registration with the Texas Secretary of State as of the program opening date. Applicants must also be the purchaser and owner of any grant-funded equipment during the contract period.
Projects must involve either building a new alternative fueling facility or expanding an existing site to offer a new fuel type not previously available there. The infrastructure must be fixed at a single location within one of the designated 88 counties. Eligible fuel types include CNG, LNG, hydrogen, biodiesel and its blends, propane, electricity, and methanol containing at least 85% by volume.
Priority will be given to projects that provide public access over those intended for private use.
Applications are being accepted until January 20, 2026 at 5:00 p.m. CST. Detailed eligibility requirements and application forms are available on TCEQ’s AFFP webpage.
For more information about TERP programs or assistance with applications, interested parties can contact TCEQ’s TERP team by phone or email.
