Heavy Duty Diesel Replacement Program

About the Heavy Duty Diesel Replacement Program

The Houston-Galveston Area Council’s Drayage Program has been replaced by the Heavy Duty Diesel Replacement Program (HDDRP). Grant funds are available, and we are accepting new applications.

The H-GAC Heavy Duty Replacement Program provides a reimbursement grant to help fund the replacement of heavy duty diesel powered equipment with newer, cleaner equipment.

Funding Limits

The amount of the reimbursement grant is limited to:

• 50% of the incremental cost of the equipment should the new equipment be powered by diesel fuel.
• 75% of the incremental cost of the equipment should the new equipment be powered by alternative fuel (such as CNG, LNG, Electric, etc.).

The incremental cost is the price of the equipment less all taxes, fees, and funds generated through the vehicle/equipment dismantling process.

Eligibility Requirements

To be eligible for the reimbursement grant, you must meet the following requirements:

• On-road vehicles class 6 to class 8 are eligible.
• Non-road equipment powered by diesel engines Tier IV or dirtier is eligible.
• Vehicles and/or equipment to be replaced need to be in use in the Houston-Galveston-Brazoria area spanning the last two years.
• Vehicles and/or equipment to be replaced must have at least three years of quality use remaining.
• Vehicles and/or equipment to be replaced may not have engines more than 25 years old.
• Vehicles and/or equipment to be replaced must be destroyed by an H-GAC approved dismantler vendor.
• Replacement vehicles and/or equipment must assume the functions and duties of the replaced vehicles and/or equipment (like-for-like replacement).
• Replacement vehicles and/or equipment must be New, purchased from a dealer, and have proof of payment before the reimbursement amount is released.
• Replacement vehicles and/or equipment will be monitored for three years to document an agreed-upon usage goal.