The Texas Commission on Environmental Quality (TCEQ) has announced that its Texas Emissions Reduction Plan (TERP) is now accepting applications for the Texas Clean School Bus (TCSB) Program. The program offers grants statewide on a first-come, first-served basis to help reduce diesel exhaust emissions from school buses.
According to TCEQ, the initiative aims to lower children’s exposure to diesel exhaust in and around diesel-fueled school buses. “TCEQ administers this program to reduce children’s exposure to diesel exhaust in and around diesel-fueled school buses.”
Eligible applicants include public school districts, open-enrollment charter schools, or countywide transportation systems operating at least one diesel-fueled school bus in Texas. Private schools are not eligible for this grant.
Grants cover up to 80% of eligible incremental costs associated with purchasing replacement school buses. Funding is also available for retrofitting existing buses with emission-reducing technology.
Replacement projects are limited to 2006 model year or older diesel-fueled school buses. Buses must have been owned, registered, and operated by the applicant in Texas for at least two years prior to application and be used on regular daily routes during the school year.
Retrofit projects include purchasing and installing closed crankcase filtration systems, diesel particulate filters, or diesel oxidation catalysts. To qualify for retrofit funding, a bus must operate on a regular daily route and have at least five years of useful life remaining.
Applications will be accepted until 5:00 p.m. CST on May 22, 2026, or until all funds are awarded. Detailed eligibility requirements and application instructions can be found on the TCSB webpage.
Additional information about other emission reduction programs administered by TCEQ is available at www.terpgrants.org.



