Texas Emissions Reduction Plan TERP

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Texas Emissions Reduction Plan (TERP)
Rebate Grant Application Workshop
Air Quality Division

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OVERVIEW
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TERP Program

• The Texas Emissions Reduction Plan (TERP)
  program provides financial incentives to upgrade
  or replace older heavy-duty vehicles, non-road
  equipment, locomotives, marine vessels, and
  stationary equipment to reduce nitrogen oxide
  (NOx) emissions in nonattainment and
  near-nonattainment areas.

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TERP Program
NOX emissions combine with volatile organic
compounds (VOC) in the presence of sunlight to
form ground level ozone (smog)
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NOx Sources
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Potential Health Effects of Ozone

• Acute respiratory problems
• Irritated and inflamed lung tissue
• Reduced lung capacity
• Aggravated asthma and other respiratory illnesses
• Increased hospital admissions and emergency room
  visits
• Immune system impairment, making people more
  susceptible to respiratory illnesses like
  bronchitis and pneumonia

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Types of Projects
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TERP Overview
Application Review
Contract Development
Outreach
Fiscal
Monitoring Usage
Disposition
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TERP Grants AwardedFrom 2001 Through July 2009
Total Tons of NOx
Includes Third-Party Grants to the NCTCOG, HGAC,
RRC, and the GLO for funding not yet reported as
assigned to specific emission sources.
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• Grant Programs

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Grant Program Comparison

• Emissions Reduction Incentive Grants
• New purchases and leases
• Replacements
• Repowers
• Retrofit and add-on devices
• Infrastructure

• Rebate Grants
• Replacements
• Repowers

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Grant Program Comparison

• Emissions Reduction Incentive Grants
• On-road
• Non-road
• Marine vessels
• Locomotives
• Stationary equipment

• Rebate Grants
• On-road diesel
• Non-road diesel

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TERP Fiscal Year 2010Grant Programs

• Emissions Reduction Incentive Grants (ERIG)
• Approximately 80 million available
• Competitive process
• Funding determined by various factors using a
  calculator
• Rebate Grants Program
• Approximately 30 million available
• First-come, first-served (non-competitive)
• Funding determined by the Rebate Tables (default
  factors used)

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Eligible Applicants

• Persons (individuals, businesses, districts,
  non-profits, governments) that own or operate
  eligible vehicles and equipment in the eligible
  counties

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Eligible Areas

• Austin
• Beaumont-Port Arthur
• Corpus Christi
• Dallas-Fort Worth
• El Paso
• Houston-Galveston-Brazoria
• San Antonio
• Tyler-Longview
• Victoria
• Counties
  may vary with each grant cycle.
• See map on the next slide

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General Requirements

• Horsepower (HP) and Gross Vehicle Weight Ratings
  (GVWR)
• On-Road Vehicles must have a GVWR of 8,500 pounds
  or higher
• Non-Road, Marine, and Stationary Equipment
  engines must have a HP rating of 25 or higher
• Locomotives will be over 1,000 HP

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• REBATE GRANTS

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Eligible Emission Sources

• On-road heavy-duty diesel vehicles
• Non-road heavy-duty diesel equipment
• Diesel engines only, no alternative-fuel
• vehicles or equipment under the Rebate
• Grants Program

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Eligible Project Categories

• Replacement of older vehicles and equipment with
  newer models
• Repower (engine replacement) existing vehicles
  and equipment

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Cost Limits

• May not exceed the incremental cost of the
  activity
• Must be the lesser amount of the Rebate Table
  Amount or the Incremental Cost
• Replacements may not exceed 80 of the
  incremental cost
• Repowers may be eligible for 100 of the
  incremental costs

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Required Application Information

• Rebate
• Application Form 20332
• Price Quote and Price Comparison Information, per
  the Price Analysis Form
• Replacement Projects Vehicle title, proof of
  registration, and photographs
• Old vehicle/equipment and/or engine information
• New vehicle/equipment and/or engine information

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Required Application Information

• Old and New Engine Information
• Grants are based on the Engine Emissions Model
  Years and not the model year of the
  vehicle/equipment.
• Engine Emissions Model Year may be verified
  through determining the Engine Family Code.
• A 12-digit code affixed to the engine that
  depicts the year the engine is certified to meet
  emissions.
• Example 8CPXH0928EBK

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What Program to Apply Under

• COMPARE PROGRAMS
• Look up the Rebate Grant Amount by using the
  correct Rebate Grant Amount Table.
• Determine the eligible grant amount by completing
  an ERIG calculator.
• Rebate Program
• Tables can be found on the Web site and as an
  attachment to the Notice of Rebate Grants (NRG)
• ERIG Program
• Calculators can be found on the Web site and by
  using the appropriate Technical Supplement.

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• Grant Management

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Usage Commitment

• On-Road Vehicles
• At least 25 of the annual usage (miles or fuel
  use) must occur in the eligible counties. The
  applicant must also commit to operating the
  vehicle at least 75 of the annual usage in a
  combination of the eligible counties and on one
  or more of the designated highways or roadways.
• All Other Equipment
• At least 75 of the annual usage must occur in
  the eligible counties.
• Miles/Hours/Fuel Use
• Under the ERIG program, the applicant must use
  the equipment in the eligible counties for the
  number of hours, miles, or fuel use agreed to in
  the application. For the Rebate Grants Program,
  the miles or hours are defaulted.

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Activity Life Commitment

• Activity Life
• Grant funded equipment must be used in the
  eligible counties for a minimum of 5 years for
  non-road equipment and 7-years for all other
  projects.
• Reporting Requirements
• All grant recipients must track and report on the
  use and location of all grant-funded equipment
  for the Activity Life.
• Reports will be due semi-annually over the
  Activity Life.

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Monitoring and Enforcement

• The grant recipient must submit usage reports
  twice per year (GPS reporting may be used in lieu
  of the paper reports)
• In addition to reviewing the usage reports, TCEQ
  will conduct onsite visits to view the equipment
  and to ensure that usage records are being
  maintained
• Failure to report or to meet the usage
  commitments may result in the recipient having to
  return a share or all of the grant funds

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Global Positioning System

• Global Positioning Systems (GPS) OPTIONAL
• The costs to purchase and install a GPS unit to
  track and log the location and use of the
  equipment may be included in the incremental cost
  (these costs will count towards the applicable
  cost limits).
• The applicant will be responsible for monthly
  operational and maintenance charges.
• If the applicant uses the TCEQ authorized service
  provider, the TCEQ may allow the vendor to
  provide the required usage reports.

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Global Positioning System (GPS)

• Contact Information
• Air-Trak
• 858-864-6197
• or
• TCEQ
• 1-800-919-TERP
• (8377)

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Use of Consultants

• Consultants may be available to assist with the
  application process
• The TCEQ has no relationship with these
  consultants and it is up to you if you want to
  use them
• Consultant fees may not be paid for from the
  grant, nor can the cost basis for determining the
  total costs include consultant fees, even if
  those fees are to be paid by the dealer

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Contracts

• Emissions Reduction Incentive Grants
• a contract will be sent to the selected applicant
  to sign and return
• a Notice to Proceed will be sent to the applicant
  with the executed contract
• Rebate Grants
• the application is the contract form (once
  approved and signed by TCEQ, it is an executed
  contract)

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Reimbursement

• Grant funds are paid to reimburse expenses
  incurred by the grant recipient
• Reimbursements are made after the purchase
• Grant recipients may assign the grant payment to
  the dealer or financing entity
• Reimbursement forms are provided with the contract

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Disposition of Old Equipment

• Salvage Only (see exceptions for locomotive)
• 1,000 scrappage default amount is used for
  on-road and non-road projects
• Disposition must occur within 90 days of
  receiving your payment from TCEQ
• Every destruction is verified by TERP staff
  through photos, documents, or site visits.

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Sample Disposition Photo
Wedge Cut in the Frame
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Sample Disposition Photo
Engine Serial Plate
Hole in the Engine Block
Cut Frame
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Next Grant Rounds

• The next ERIG grant application period will open
  in the spring of 2010
• Enter your email address on the TERP Web site to
  receive program updates
• www.terpgrants.org

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New Technology Research DevelopmentAdditional
TERP-Funded Grant Programs

• The New Technology Research Development Program
  gives grants to encourage research, development,
  and commercialization of technologies that reduce
  pollution from mobile sources. It is designed to
  promote technologies that can then be funded by
  TERP grants.
• 13.8 Million allocation

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Alternative Fuel ProjectsAdditional TERP-Funded
Grant Programs

• Propane Forklift Initiative Program Railroad
  Commission of Texas
• www.propane.tx.gov
• 800-64CLEAR (1-800-642-5327)
• Natural Gas Vehicle Initiative Grant Program
  Texas General Land Office http//www.glo.state.tx
  .us/energy/altfuels/NGIPG.html
• 512-463-9210

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Contacts

• Web Site
• Email
• Toll Free

www.terpgrants.org
terp_at_tceq.state.tx.us
800-919-TERP (8377)