The Texas Commission on Environmental Quality’s (TCEQ) Texas Emissions Reduction Plan (TERP) is now accepting applications for the Texas Clean School Bus (TCSB) Program. Grants are available statewide on a first-come, first-served basis to offset the cost of projects that reduce diesel exhaust emissions.

According to a release, the commission administers this program to reduce children's exposure to diesel exhaust in and around diesel-fueled school buses.

Eligible applicants include any Texas public school district, open-enrollment charter school, or transportation system provided by a countywide school district that operates one or more diesel-fueled school buses. Private schools are not eligible for this program.

Grants of up to 80% of the eligible incremental costs associated with purchasing replacement school buses are available for eligible replacement projects. Funding is also available for retrofitting an existing school bus.

Eligible TCSB Program Replacement Projects

• Replacement of 2006 model year or older diesel-fueled school buses with buses of the current or previous model year at the time of application.

• School buses proposed for replacement must have been owned, registered, and operated by the applicant in Texas for at least two years immediately preceding the grant application.

• School buses proposed for replacement must currently be used on a regular daily route to and from a school during the regular school year.

Eligible TCSB Program Retrofit Projects

• Purchase and installation of eligible retrofit systems — closed crankcase filtration systems, diesel particulate filters, or diesel oxidation catalysts.

• A school bus proposed for retrofit must currently be used on a regular daily route to and from a school during the regular school year and have at least five years of useful life remaining.

Detailed eligibility requirements and instructions for how to apply for a TCSB grant can be found on the TCSB webpage. Applications will be accepted until 5:00 p.m. CST on May 22, 2026, or until all available funds have been awarded.

Information about other emission reduction programs at TCEQ can be found at www.terpgrants.org.