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Alternative Fueling Facilities Program (AFFP)

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

Agency Type:


Funding Source:

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

Deadline Date:

03/18/20 5:00 PM CST Received and Date-Stamped


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Grants to Texas organizations, corporations, agencies, and individuals in eligible regions for projects to reduce pollution and improve air quality by promoting the use of vehicles that utilize alternative fuels. Funding is intended for developing existing natural gas or alternative fueling facilities, and for building new alternative fuel stations in the Texas Clean Transportation Zone.

Eligible alternative fuels for AFFP applications include: Compressed Natural Gas (CNG), Liquified Natural Gas (LNG), combined LNG and CNG, hydrogen, biodiesel, propane, electricity, and methanol (at least 85% by volume). Projects that are open to the public will be considered for funding before private facilities.

Stations funded by AFFP grants must be new facilities or, at a minimum, provide new services. 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 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 costs in the Equipment and/or Supplies and Materials categories alone will not expend the entire eligible grant amount. 

Eligible locations under the AFFP consist of the 83 counties making up the Clean Transportation Zone, listed in Addendum 1: 

For detailed requirements for each project type, facilities, eligibility, and expenses, applicants should review the current AFFP Request for Grant Applications (RFGA) in Supporting Documents.

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; or 50% of the total eligible costs, with a maximum of $600,000, for fuels other than natural gas.

Term of Contract:

Activities funded under this RFGA must be completed by April 30, 2022, 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:

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.

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. Applicants must disclose known apparent, potential, or actual conflicts of interest to the TERP staff.

Ineligible Costs:
- Salaries and travel expenses for employees of the grantee
- Salaries of any lobbyists registered in the State of Texas
- 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
- Testing equipment
- Other administrative costs of the grantee, including overhead and indirect costs (e.g., office supplies, rent, marketing, and advertising)
- Food and drink

Pre-Application Information:

Application Deadline: March 18, 2020, by 5:00 PM Central Time, Received and Date-Stamped

Applications will be accepted for consideration during this grant period only if received and date-stamped at the front desk, Room 1301, 1st floor of Building F on the premises of the TCEQ (12100 Park 35 Circle, Austin, TX, 78753) by no later than 5:00 PM Central Standard Time, March 18, 2020.

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.

The award of the grant is dependent upon the availability of funding.

Any changes to this solicitation will be made through an addendum in the Electronic System Business Daily (ESBD)

Applicants may apply for multiple grants at different locations, but only one grant application will be accepted from an applicant for each facility and only one grant may be awarded for each facility location. In addition, grant funding may not be combined under this program and other TERP grant programs administered by the TCEQ to fund the same project or facility.

Individuals desiring further information are encouraged to call the TERP hotline or Ms. Gloria Lyall.

Contact Information:

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

Applicants must submit via regular or express mail one (1) original signed copy of the Application and W-9 Form, and one (1) electronic copy of the Application saved to a disk, in order to be considered for eligibility.

Regular Mail:
Texas Commission on Environmental Quality
Air Grants Division
AFFP, MC-204
P.O. Box 13087
Austin, TX 78711-3087

Express Mail or Hand Delivery:
Texas Commission on Environmental Quality
Air Grants Division
AFFP, MC-204
12100 Park 35 Circle
Austin, TX 78753

Questions should be directed to Ms. Gloria Lyall (512) 239-3602
or the TERP hotline: (512) 239-4950 or 1-800-919-TERP (8377)

Funding or Pin Number:

Solicitation No. 582-20-10898-AF

URL for Full Text (RFP):

Geographic Focus:

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

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