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Alternative Fueling Facilities Program (AFFP)

Grants for Texas Organizations, Corporations, Agencies, and
Individuals in Eligible Counties for Projects to Improve Air Quality

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Funding Source:

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Texas Commission on Environmental Quality (TCEQ) - Air Quality Division

Deadline Date:

03/29/18 5:00 PM CST Received and Date-Stamped


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Grants to Texas organizations, corporations, government agencies, business trusts, and individuals for natural gas and alternative fueling station projects in the eighty-three counties of the Clean Transportation Zone. Funding is intended for constructing new stations or expanding existing facilities that will provide a new fueling service or capacity.

The statutory goal of the AFFP is to ensure that alternative fuel vehicles have access to fuel and to build the foundation for a self-sustaining market for alternative fuels in Texas. The program’s objective is aimed at increasing the use of alternative fuels in the Clean Transportation Zone.

To accomplish TERP goals and objectives, the TCEQ is encouraging the development of projects that will provide for strategically placed fueling facilities in the Clean Transportation Zone to enable an alternative fuel vehicle to travel in those areas solely on the alternative fuel.

Eligible project categories for AFFP applications are:
-Construction of new facilities dispensing eligible alternative fuels to vehicles and equipment in the Clean Transportation Zone, or
-Expansion of existing alternative or natural gas fueling facilities currently located in the Clean Transportation Zone, dispensing natural gas or other alternative fuels to vehicles and equipment to provide new services or capabilities.

Under the AFFP, TCEQ will give preference to stations:
-That will provide both LNG and CNG at a single location;
-Are located not more than one mile from an interstate highway system within the eligible counties; and/or
-That are located inside the triangular area between the Houston, San Antonio, and Dallas-Fort Worth areas, and in the area in and between the Corpus Christi, Laredo, and San Antonio areas.

Eligible fuels for AFFP applications are:
-Compressed natural gas (CNG) projects;
-Liquefied natural gas (LNG) projects;
-Combined LNG and CNG projects;
-Electricity; and
-Methanol (at least 85% by volume).

Eligible Facilities:
Stations funded by AFFP grants must be new facilities or, at a minimum, provide new services.Projects that are open to the public will be considered for funding before private facilities.

Eligible activities are those that are directly related to the implementation of the project. AFFP grants are to be used to offset a portion of the cost of installation of the natural gas and alternative fuel-dispensing equipment. Applications that include design, engineering, and permitting costs for facility improvements directly related to installation of the equipment will be considered on a case-by-case basis if the cost in the Equipment and/ or Supplies and Materials categories alone will not expend the entire eligible grant amount.

The TCEQ prefers to reimburse costs for equipment, supplies, and materials. Priority budget categories cover:
- Equipment
- Supplies and Materials

Please consult the AFFP Request for Grant Applications (see Supporting Documents below) for further detailed information about eligible projects, facilities, and expenses.

GrantWatch ID#:

GrantWatch ID#: 166827

Estimated Size of Grant:

Grant amounts may not exceed:
- $400,000 for a CNG project or an LNG project
- $600,000 for a combined CNG and LNG project
- 50% of the total eligible costs or a maximum of $600,000, whichever is less, for fuels other than natural gas.

Term of Contract:

Activities funded under this RFGA must be completed by May 31, 2020, and all costs must be incurred by this date. The grantee must notify the TCEQ in writing if a project is expected to require a longer period of time to be completed.

Additional Eligibility Criteria:

Eligible Applicants:
Applicants must meet all State of Texas requirements and be eligible to conduct business in Texas. Eligible applicants include individuals, corporations, organizations, governments or governmental subdivisions or agencies, business trusts, partnerships, associations, or other legal entities.

Applicants must certify in the application that they comply with laws, rules, guidelines, and requirements applicable to taxation of fuel provided by the applicant at each fueling facility owned or operated by the applicant.

AFFP grant recipients must meet the operational, maintenance, and reporting requirements specified by the TCEQ.

The applicant must be the entity that will purchase and own the grant-funded equipment for the life of the grant. Entities leasing equipment or entities acting as a third party to purchase the equipment and then transfer ownership of the equipment to another entity are not eligible to apply for a grant.

An entity that purchases the equipment and leases it to another entity may establish eligibility provided that the grantee maintains ownership of the grant-funded equipment for the life of the grant. Applicants are not required to be the owner of the overall fueling facility provided that the applicant can demonstrate a binding commitment from the fueling facility owner to install and operate the grant-funded equipment at the site for the life of the grant.

Businesses or other entities in which a TCEQ employee, spouse, or family member of a TCEQ employee has a direct or indirect interest, financial or otherwise, may be prohibited from receiving a grant, depending upon the nature of the interest. Any questions regarding the eligibility of an entity to apply for a grant should be referred to TERP staff early in the application process.

The TCEQ is not obligated to fund a project that was previously awarded a Clean Transportation Triangle (CTT) or AFFP grant. The TCEQ may consider, among other factors: (1) whether the previous grant was canceled before or after the issuance date of this RFGA; (2) whether the previous grant was canceled by mutual agreement between the TCEQ and the grant recipient due to circumstances outside of the control of the grant recipient; and (3) if the award of a new grant for the project would be in the best interest of the program.

There is no limitation on the number of grants an eligible applicant may receive from this program for different locations.

Ineligible Budget Categories:
-Salaries and travel expenses for employees of the grantee;
-Facility improvements and equipment not directly associated with the equipment to store, compress, or dispense the natural gas or alternative fuel;
-Purchase of an existing natural gas or alternative fuel fueling station;
-Facility, land, or an interest in land;
-Permitting costs for TCEQ-issued permits;
-Other administrative costs of the grantee, including overhead and indirect costs (e.g., office supplies, rent, marketing, and advertising); and
-Food and drink.

The purchase of testing equipment will not be funded through this program.

No grant funds may be used to reimburse the salary of any lobbyist registered in the state of Texas.

Pre-Application Information:

The current grant round closes at 5:00pm on March 29, 2018. Applications will be accepted for consideration during this RFGA only if received and date-stamped on the premises of TCEQ, Building F, room 1301 by no later than 5:00 p.m. Central Standard Time on March 29, 2018. Applications received in the TCEQ mail room on this date are not guaranteed to be delivered to Building F, Room 1301 by the required deadline. Applicants are highly encouraged to plan their submissions accordingly.

Interested entities should review the Request for Grant Applications (RFGA) and AFFP Example Contract before completing and submitting the application forms (see Supporting Documents below).

Applicants must electronically complete and submit via regular or express mail one (1) original copy (signed in blue ink) and one electronic copy saved to a disc to TCEQ (details below).

Applicants may apply for multiple grants at different locations, but no more than one grant application will be accepted from an applicant for each facility and no more than one grant may be awarded for each facility location.

Payments will be made on a reimbursement basis for eligible expenses incurred by the grantee.

Apply for a Grant:

Contact Information:

Before starting your grant application, please review the funding source's website listed below for updates/changes/addendums/conferences/LOIs.

Submit applications:

Mailing address for Express Delivery:
Air Quality Division
Implementation Grants Section, MC-204
12100 Park 35 Circle
Austin, TX 78753

Mailing address for Standard Mail:
Air Quality Division
Implementation Grants Section, MC-204
P.O. Box 13087
Austin, TX 78711-3087

Mailing address for Hand Delivery:
Air Quality Division
Implementation Grants Section
12100 Park 35 Circle, Bldg. F
Austin, TX 78753

For additional program information, call the TERP hotline or Ms. Camen Gupta:

Camen Gupta

TERP hotline:
512-239-4950 or 1-800-919-TERP (8377).

Funding or Pin Number:


URL for Full Text (RFP):

Geographic Focus:

USA: Texas: The 83 counties making up the Clean Transportation Zone.