Texas Emissions Reduction Plan (TERP) Workshop

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Texas Emissions Reduction Plan (TERP) Workshop
Air Quality Division

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TERP Workshop

• Program Description
• Grant Programs
• Grantee Responsibilities
• Application Forms

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TERP
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TERP
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TERP

• Provides incentives for projects that reduce
  nitrogen oxides (NOx)
• NOx emissions combine with volatile organic
  compounds (VOCs) in the presence of sunlight to
  form ground-level ozone (smog)
• Certain areas of the state are in noncompliance
  with federal Clean Air Act requirements for
  levels of ozone

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Map of TERP Eligible Counties
Current RFA Eligible Areas Houston-Galveston-Braz
oria Brazoria Fort Bend Waller Montgomery Liberty
Chambers Galveston Harris Dallas-Fort
Worth Denton Collin Tarrant Dallas Rockwall Kaufm
an Ellis Johnson Parker Beaumont-Port
Arthur Hardin Orange Jefferson
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Grant Programs

• Emissions Reduction Incentive Grants
• 126 million
• Competitive process
• Non-road equipment, public works projects
• Rebate Grants Program
• 10 million
• Small businesses - 5 million
• First-come, first-served

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Small Business Eligibility

• A small business is defined as a person who
• owns and operates no more than two vehicles or
  pieces of equipment, one of which is
• - an on-road diesel heavy-duty vehicle with a
  pre-1994 engine model or
• - a non-road diesel-powered piece of equipment
  with an engine with uncontrolled emissions

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Emissions Reduction Incentive Grants Eligibility

• Operate or plan to operate
• On-road heavy-duty vehicles
• Stationary engines
• Locomotives
• Marine vessels
• Must operate 75 of the annual usage in the
  eligible areas for a minimum of 7 years
• Non-road equipment
• Must operate 75 of the annual usage in the
  eligible areas for a minimum of 5 years

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Emissions Reduction Incentive Grants Eligibility

• Eligible Source Categories
• On-road vehicles with equal to or greater than
  8,500 gross vehicle weight rating (GVWR)
• Non-road engines equal to or greater than 25
  horsepower (hp)
• Marine vessels - engines equal to or greater than
  25 hp
• Stationary equipment - engines equal to or
  greater than 25 hp
• Locomotives

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Emissions Reduction Incentive Grants Eligibility

• Types of Projects
• New purchases and leases (fleet expansion)
• Replacement of old vehicles and equipment with
  newer models (limited to 80 of eligible
  incremental costs)
• Repower existing vehicles and equipment (engine
  replacement)

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Emissions Reduction Incentive Grants Eligibility

• Types of Projects
• Retrofit and add-on devices to vehicles and
  equipment (EPA or CARB certified/verified)
• Infrastructure for idle-reduction or
  electrification systems, and qualifying fuel
  infrastructure

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Emissions Reduction Incentive Grants Eligibility

• Activity must be at least 25 cleaner for NOx
  than baseline vehicle or equipment
• Grant request must not exceed cost/ton limits
• Locomotives 2,500
• Marine 4,000
• Non-road 10,000
• On-road 5,500
• Stationary 5,500

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Emissions Reduction Incentive Grants Eligibility

• Grant request may not exceed incremental cost of
  activity
• Replacements may not exceed 80 of incremental
  costs
• Retrofits and repowers may be eligible for 100
  of the incremental costs

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Rebate Grants Eligibility

• Operate or plan to operate
• On-road heavy-duty vehicles
• Must operate 75 of the annual usage in the
  eligible areas for 7 years
• Non-road equipment
• Must operate 75 of the annual usage in the
  eligible areas for 5 or 7 years

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Rebate Grants Eligibility

• Eligible Source Categories
• On-road vehicles with equal to or greater than
  8,500 gross vehicle weight rating (GVWR)
• Non-road engines equal to or greater than 25
  horsepower (hp)

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Rebate Grants Eligibility

• Types of Projects
• Replacement of old vehicles and equipment with
  newer models
• Limited to 80 of eligible incremental costs
• Repower (engine replacement) existing vehicles
  and equipment
• Up to 100

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Grant Program Projects

• 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 Source Categories

• 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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Caution

• 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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Caution

• Do not overstate the annual usage or the
  percentage of use in the eligible counties
• You will be obligated to return grant funds if
  you do not meet the annual usage commitment

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Contract

• 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

• Salvage Only
• 1,000 default amount for on-road and non-road
• 90 days payment from TCEQ

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Usage Commitment

• For all grants, the recipient is obligated under
  the contract to use the grant-funded equipment
  for at least 75 of the annual usage (miles,
  hours, or fuel) within the eligible counties

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Reporting

• All recipients must track and report on the use
  and location of all grant-funded equipment
• Reports will be due semi-annually over the
  activity life

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TCEQ Monitoring/Enforcement

• 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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Required Information for the Application

• Baseline Engine (currently operating)
• Year
• Engine Family Code
• New Engine
• Year
• Engine Family Code
• Example 6CPXH0928EBK

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Rebate Grants Application
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Emissions Reduction Incentive Grants Application
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Application Information

• Calculations to complete forms
• Calculator at www.terpgrants.org
• Technical Supplements

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Contacts

• Web Site www.terpgrants.org
• Email terp_at_tceq.state.tx.us
• Toll Free 800-919-TERP (8377)