{"id":24894,"date":"2026-04-30T16:05:00","date_gmt":"2026-04-30T20:05:00","guid":{"rendered":"https:\/\/blogs.edf.org\/energyexchange\/?p=24894"},"modified":"2026-04-30T16:05:02","modified_gmt":"2026-04-30T20:05:02","slug":"new-briefing-paper-provides-roadmap-for-unlocking-2-billion-in-texas-clean-air-funds","status":"publish","type":"post","link":"https:\/\/blogs.edf.org\/energyexchange\/2026\/04\/30\/new-briefing-paper-provides-roadmap-for-unlocking-2-billion-in-texas-clean-air-funds\/","title":{"rendered":"New briefing paper provides roadmap for unlocking $2 billion in Texas clean air funds"},"content":{"rendered":"\n<p><\/p>\n\n\n\n<p>In advance of the 90th\u00a0Texas Legislature, which\u00a0convenes\u00a0in January 2027, Environmental Defense Fund\u00a0completed a detailed and thorough analysis of Texas Emissions Reduction Plan grants and nitrogen oxide emissions over the lifetime of the program. Using more than two decades worth of data provided by the Texas Commission on Environmental Quality, the <a href=\"https:\/\/library.edf.org\/AssetLink\/1t715n8y645io6nes0sy7rdhgl8251ch.pdf\">newly released briefing paper<\/a>\u00a0 details how TERP has transformed in recent years and provides recommendations for how the Legislature can further maximize efficiencies and increase market-driven investments\u00a0\u2014\u00a0all without raising any new taxes or fees.\u00a0<br><br>TERP provides financial incentives for projects that decrease emissions of NOx and other pollutants from mobile sources and non-road equipment and is administered by TCEQ. It includes 11 unique grant programs, including a number of advanced clean truck grants that provide significant funds for fleets to transition to cleaner trucks. In the most recent two-year budget cycle, TERP awarded over $412 million to fund 3,879 incentive grant projects that are estimated to result in the reduction of 6,137 tons of\u00a0NOx\u00a0emissions. Based on EDF analysis, this represents\u00a0the second largest reduction of\u00a0NOx\u00a0emissions in the program\u2019s history. TERP can do even more with more funding, and the additional funding is already available.<br>\u00a0<br>There is currently\u00a0$2 billion\u00a0in revenue collected for TERP prior to 2019 that is sitting untouched in a general revenue dedicated account. These funds were collected prior to TERP reforms five years ago and are used to help certify the state\u2019s budget. For years, the conventional wisdom at the Texas Capitol was that the\u00a0$2 billion\u00a0in the general revenue dedicated GR-Dedicated TERP account was necessary to certify the state budget, and TERP can simply operate on new revenues\u00a0collected\u00a0each biennium.\u00a0While that may have made sense years ago, it doesn\u2019t made sense today \u2014 Texas\u00a0has more than\u00a0$26 billion in\u00a0the\u00a0Economic Stabilization Fund, better known as the \u201crainy day fund,\u201d which is\u00a0a state savings account that collects\u00a0excess\u00a0oil and gas revenues and makes them\u00a0available for emergency appropriations.\u00a0In fact, Texas\u2019 economy has been so strong for so long\u00a0that the Legislature has been able to create a\u00a0number\u00a0of new\u00a0long-term infrastructure funds\u00a0\u2014\u00a0including ones for water, transportation and broadband\u00a0\u2014\u00a0while still maintaining record surpluses.<br><br>With Texas\u2019 strong economic foundation, now is the time to\u00a0use these dedicated TERP funds for their intended purpose.<br>\u00a0<br>For the 2028-29 budget, the Legislature should consider taking 20% of the balance, or $400 million, from the GR-Dedicated Account NO. 5071 and transferring it to the TERP Trust Fund No. 1201, to be used to supplement newly collected TERP revenue.<br>\u00a0<br>The funding increase can, and should, compliment ongoing reforms being considered for TERP. EDF has worked closely with the Legislature on a consolidation bill that would make it simpler for companies to apply for funds.\u00a0For example, an entity seeking a newer regional haul truck and accompanying infrastructure would have to review application materials for as many as six different grant programs, each with their own specific requirements that open at different times of the year.\u00a0For entities trying to align their\u00a0budgets and\u00a0timelines for vehicle and equipment\u00a0replacement schedules,\u00a0navigating the\u00a0large number\u00a0of grants can be a significant barrier to participation.\u00a0A TERP consolidation bill will make it easier for companies to apply,\u00a0 and free up considerable agency time. Additionally, the\u00a0additional\u00a0dollars that would come from increasing TERP funding by $400 million would also include, by law, a percentage of funds available for the administration of the TERP program. Those funds could help cover costs of any additional\u00a0full-time employees\u00a0required for the increased project activity.\u00a0<br>\u00a0<br>As elected officials and TCEQ prepare for the 90<sup>th<\/sup>\u00a0Texas Legislature next year, the policy opportunity for TERP is tremendous. Using revenue already collected for TERP and consolidating several grant programs can boost the program without increasing taxes, revenues or fees by a single dollar\u00a0\u2014\u00a0doubling the\u00a0economic opportunities for companies seeking clean transportation projects, as well as emissions reductions in key areas of the state.<br><\/p>\n","protected":false},"excerpt":{"rendered":"<p>In advance of the 90th\u00a0Texas Legislature, which\u00a0convenes\u00a0in January 2027, Environmental Defense Fund\u00a0completed a detailed and thorough analysis of Texas Emissions Reduction Plan grants and nitrogen oxide emissions over the lifetime of the program. Using more than two decades worth of data provided by the Texas Commission on Environmental Quality, the newly released briefing paper\u00a0 details &#8230;<\/p>\n","protected":false},"author":152443,"featured_media":24906,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[8015,42996,1,181],"tags":[],"coauthors":[114167],"class_list":["post-24894","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-air-quality","category-smart-power","category-uncategorized","category-texas"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.3 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>New briefing paper provides roadmap for unlocking $2 billion in Texas clean air funds - Energy Exchange<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/blogs.edf.org\/energyexchange\/2026\/04\/30\/new-briefing-paper-provides-roadmap-for-unlocking-2-billion-in-texas-clean-air-funds\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"New briefing paper provides roadmap for unlocking $2 billion in Texas clean air funds - Energy Exchange\" \/>\n<meta property=\"og:description\" content=\"In advance of the 90th\u00a0Texas Legislature, which\u00a0convenes\u00a0in January 2027, Environmental Defense Fund\u00a0completed a detailed and thorough analysis of Texas Emissions Reduction Plan grants and nitrogen oxide emissions over the lifetime of the program. 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