The Texas Commission on Environmental Quality (TCEQ) announced a funding plan for more environmentally friendly school transportation for students around the state.
The Texas Clean School Bus Program, a part of the Texas Emissions Reduction Plan, is offering $16.3 million in grants to help school systems replace or retrofit diesel buses with filtration or emission-reducing systems.
Applications are now open for grants that cover up to 80% of the cost to make the changes. Eligible replacements must involve 2006 or older buses that have been owned, registered, and used daily in Texas for at least two years. Retrofit projects may include installing filtration or emission-reducing systems on buses that still have at least five years of service life remaining.
Statewide grants will be awarded on a first-come, first-served basis until all available funds are awarded. Submissions are due May 22, 2026. Eligible applicants include public school districts, open-enrollment charter schools and countywide transportation systems. Private schools are not eligible. The goal is to reduce children’s exposure to diesel emissions in and around school transportation.
In addition to the bus program TCEQ announced its Light‑Duty Motor Vehicle Purchase or Lease Incentive Program (LDPLIP) which offers grants of up to $2,500 for eligible electric-drive or hydrogen fuel cell vehicles, and up to $5,000 for eligible compressed natural gas (CNG) or liquefied petroleum gas (LPG) vehicles. Similar to the bus program, these funds are available until all is awarded. Applications are due March 6, 2026.
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