TXVEMP 101: How Texas’ Fleet EV Funding Program Works

Texas has one of the largest and most diverse commercial vehicle markets in the country. From delivery fleets and service vehicles to school buses and municipal trucks, fleets play a major role in how goods and people move across the state.

As Texas works to improve air quality and reduce emissions from heavy-duty transportation, one of the most important funding tools available to fleets today is TXVEMP, the Texas Volkswagen Environmental Mitigation Program.

Unlike simple rebate programs, TXVEMP is a grant-based funding program that supports a wide range of clean transportation projects. It was created through Texas’ share of the Volkswagen settlement and continues to provide funding for electric vehicles, alternative fuel vehicles, and charging infrastructure across the state.

For many Texas fleets, the challenge is not interest in cleaner vehicles. It is navigating a complex funding landscape and understanding how programs like TXVEMP actually work. In this guide, we break down what TXVEMP is, what types of projects qualify, and how fleets can use it as part of a long-term electrification strategy.

What Is TXVEMP?

TXVEMP stands for the Texas Volkswagen Environmental Mitigation Program. It is administered by the Texas Commission on Environmental Quality (TCEQ) and funded through Texas’ allocation of the Volkswagen emissions settlement.

The program was created to reduce air pollution caused by heavy-duty vehicles and equipment across Texas. Rather than offering rebates at the point of sale, TXVEMP provides competitive grant funding to support clean transportation replacement or repower projects.

TXVEMP funding can be used for a wide range of eligible projects, including:

• Electric trucks and vans

• Electric buses and shuttles

• Charging infrastructure

• Other clean and alternative fuel vehicles

The core goal of TXVEMP is to help fleets reduce emissions by replacing older, higher-polluting vehicles with cleaner technologies.

Why TXVEMP Matters for Texas Fleets

Texas has one of the largest commercial transportation sectors in the United States. Heavy-duty vehicles contribute significantly to nitrogen oxide emissions and local air pollution, particularly in urban and industrial regions.

For fleet operators, transitioning to cleaner vehicles can be expensive without financial support. Electric trucks, buses, and infrastructure require higher upfront investment, even though they offer long-term savings through reduced fuel and maintenance costs.

TXVEMP helps close that gap by offsetting a portion of project costs. Through grant funding, fleets can lower the financial risk of adopting electric and low-emission vehicles while accelerating their sustainability goals.

TXVEMP funding is available to a wide range of organizations, including:

• Private businesses

• Municipal and government fleets

• School districts

• Transit agencies

• Public institutions and nonprofits

Beyond financial benefits, TXVEMP allows fleets to future-proof their operations. By electrifying vehicles today, organizations can prepare for evolving regulations, improve public perception, and operate cleaner vehicles in the communities they serve.

How TXVEMP Works (A Practical Overview)

TXVEMP operates differently from typical incentive programs. Understanding its structure early helps fleets avoid delays and missed opportunities.

Eligible Project Types (High Level)

TXVEMP supports a variety of clean transportation projects, including:

• Electric medium- and heavy-duty trucks

• Electric buses and shuttles

• Charging infrastructure for fleet operations

• Other approved clean vehicle technologies

All projects must meet TCEQ eligibility requirements and demonstrate emissions reduction benefits.

Funding Structure

TXVEMP awards funding through competitive grant rounds. Fleets submit project applications during open funding windows, and projects are evaluated based on program criteria.

Grant funding typically covers a portion of total project costs. Award amounts vary depending on the project category, vehicle type, and available program funding.  Non-government fleets can receive up to 75% reimbursement of the incremental cost of the project.  This depends on the vehicle class and model year that is being replaced.  

Unlike rebate programs, TXVEMP does not guarantee funding for every applicant. Strong project planning and clear alignment with program goals are critical.

Important Program Realities

TXVEMP operates within several real-world constraints:

• Funding rounds open periodically

• Applications are competitive

• Program categories and rules can change

• Approval and deployment timelines can be long

• Vehicles and infrastructure must meet strict eligibility criteria

For fleets, this means TXVEMP requires more advanced planning than most incentive programs. Success often depends on preparation well before a funding window opens.

How Range Helps Fleets Use TXVEMP Successfully

Navigating grant-based funding programs can be challenging, especially for fleets new to electrification. That is where working with an experienced partner becomes valuable.

Range works with Texas fleets to help them evaluate and pursue TXVEMP funding opportunities. Our team supports customers across the process, including:

• Identifying eligible vehicles and projects

• Understanding program categories and requirements

• Planning project scope and timelines

• Aligning vehicles, infrastructure, and operations

Beyond funding, Range helps fleets take a holistic approach to electrification. That includes analyzing duty cycles, planning charging infrastructure, evaluating total cost of ownership, and building scalable fleet strategies.

TXVEMP success does not start with submitting an application. It starts with understanding your fleet, your operational needs, and your long-term goals.

Final Thoughts: Turning TXVEMP Into Real Fleet Impact

TXVEMP remains one of the most important funding opportunities available for Texas fleets looking to transition to cleaner and electric vehicles. With significant grant funding, broad project eligibility, and ongoing program cycles, the program creates real opportunities for organizations ready to invest in the future of transportation.

However, competitive funding means timing, preparation, and the right partner all matter.

With the right strategy and support, TXVEMP can become a foundational part of your fleet’s electrification journey.

Talk to the Range team to see how TXVEMP can fit into your fleet strategy and start planning your next clean vehicle or electrification project.