The Texas Commission on Environmental Quality is offering $5.7 million in grants to eligible individuals, businesses, governmental entities and school districts to replace older diesel vehicles with new alternative fuel and hybrid vehicles.

Eligible alternative fuel vehicles are limited to those powered by the following: electricity, compressed natural gas, liquefied natural gas, hydrogen, propane or a mixture of fuels containing at least 85% methanol by volume (M85).

TCEQ Texas Clean Fleet Program grants, which are part of the Texas Emission Reductions Plan, are offered to eligible entities that own or lease a fleet of 75 or more on-road vehicles that are currently registered in Texas and intend to replace at least 20 on-road diesel vehicles. Projects must result in at least a 25% reduction of emissions of nitrogen oxides.

The eligible reimbursement amounts range between 50% and 80% of the purchase costs depending on the model year of the vehicle and engine being replaced. Grants are awarded on a competitive basis with projects ranked according to the cost per ton of NOX reduced by the project.

Recipients must agree to operate the grant-funded vehicles for a defined percentage of the annual mileage in the Houston-Galveston-Brazoria area, Dallas-Fort Worth area, Beaumont-Port Arthur area, Tyler-Longview area, Austin area, San Antonio area, Corpus Christi area or Victoria area for five years or 400,000 miles, whichever occurs earlier.

The application deadline is August 29, 2012.

For up-to-date program information, eligibility requirements, copies of the application forms and a schedule of informational meetings, go to