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Texas Emissions Reduction Plan (TERP)

Texas Emissions Reduction Plan (TERP) . • . TCEQ Environmental Trade Fair • May 2014. What does TERP do?.

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Texas Emissions Reduction Plan (TERP)

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  1. Texas Emissions Reduction Plan (TERP) • TCEQ Environmental Trade Fair • May 2014

  2. What does TERP do? 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 oxides (NOx) emissions in eligible areas. With recent legislation, the TERP also supports programs to encourage the use of alternative fuels for transportation in Texas.

  3. NOX + VOC + Ozone Primary Goal is to Reduce NOX TERP provides financial incentives for projects that reduce NOX emissions in eligible areas. NOX emissions combine with volatile organic compounds (VOC) in the presence of sunlight to form ground level ozone (smog).

  4. Mobile Sources of NOx

  5. TERP Grant Programs

  6. TERP Grant Programs • Diesel Emissions Reduction Incentive (DERI) Program • Emissions Reduction Incentive Grant (ERIG) Program • Rebate Grants Program • Third-Party Grants • Drayage Truck Incentive Program (DTIP) (new) • Texas Clean Fleet Program (TCFP) • Texas Natural Gas Vehicle Grant Program (TNGVGP) • Light-Duty Motor Vehicle Purchase or Lease Incentive Program (LDPLI) (new) • Alternative Fueling Facilities Program (AFFP) • Clean Transportation Triangle (CTT) • New Technology Implementation Grant (NTIG) Program • Texas Clean School Bus Program

  7. Emissions Reduction Incentive Grants (ERIG) Program • A competitive grant program that provides incentives to upgrade or replace older heavy-duty vehicles, non-road equipment, locomotives, marine vessels, and stationary equipment

  8. Emission Reduction Incentive Grants (ERIG) Program • Eligible vehicles and equipment include: • On-road vehicles that have a gross vehicle weight rating (GVWR) of 8,501 pounds or higher, and • Non-road equipment, marine vessels, locomotives, and stationary equipment engines that have a horsepower of 25 or higher. • Eligible replacement vehicles and equipment include: Diesel Engines; Alternative Fuel Vehicles and Equipment; Hybrid Vehicles and Equipment; Idle Reduction Infrastructure; and Refueling Infrastructure.

  9. ERIG Eligible Counties

  10. Rebate Grants Program • Provides incentives for the replacement or repower of on-road diesel vehicles and non-road equipment • This program offers a faster, simpler process for projects consistent with the ERIG requirements. • Grants are awarded on a first-come-first-served basis. • On-road diesel vehicles may be replaced with diesel, natural gas, propane, or electric-powered vehicles.

  11. Rebate Grants Program Eligible Counties

  12. Third-Party Grants Provides grant funds for projects that assist with the implementation of TERP in eligible areas Previous 3rd Party Grantees: • Railroad Commission of Texas • Propane vehicle and equipment projects • North Central Texas Council of Governments • Various TERP projects, including refuse hauler projects • Houston-Galveston Area Council • Local government projects and projects involving vehicles operating in or near port facilities • Texas General Land Office • Natural gas vehicle and equipment projects

  13. Diesel Emissions Reduction Incentive Program (DERI)Projects Awarded October 2001 - May 2014*

  14. DERI Projects Awarded Summary • Number of Projects – 9,734 • Number of Activities – 15,980 • Total NOX Tons – 176,364 • Grant Amount Awarded - $943,395,182 • Cost Per Ton - $5,349

  15. DERI Grant Amounts by Area * Includes Third-Party for funding not yet reported as assigned to specific areas.

  16. Drayage Truck Incentive Program (DTIP) • Provides incentives to replace trucks that transport a load to or from a seaport or rail yard in a nonattainment area of Texas • Grants are awarded on a first-come-first-served basis. • The applicant must replace a pre-2007 model year with a 2010 or newer year. • The grant will reimburse up to 80% of the purchase price. • The old truck must be scrapped. • 50% of annual use must be within an area to be established by the TCEQ. • Vehicles must visit one eligible seaport and/or rail yard for a minimum number of visits, as established by the TCEQ.

  17. Texas Clean Fleet Program (TCFP) • Provides incentives for the replacement of diesel vehicles with alternative fuel and hybrid vehicles • This program allows for replacement of light-duty, medium-duty, and heavy-duty vehicles. • Applicants must own at least 75 vehicles and operate those vehicles in Texas. • Applicants must apply to replace at least 20 vehicles.

  18. Texas Clean Fleet Program Eligible Counties

  19. Texas Clean Fleet Program (TCFP) Projects Awarded SummaryFiscal Years 2010 - 2012 • Number of Projects – 12 • Number of Activities – 307 • Grant Amount Awarded - $23,606,444

  20. Texas Natural Gas Vehicle Grant Program (TNGVGP) • Provides grants for the replacement and repower of heavy-dutyand medium-duty vehicles and engines with compressed natural gas (CNG) and liquefied natural gas (LNG) heavy-duty and medium-duty vehicles and engines • Vehicles must operate in counties in the area defined by the Clean Transportation Triangle (CTT). • Applications are submitted through Participating Dealers and awards are made on a first-come-first-served basis. • Participating Dealer will verify eligibility, arrange for inspection of the original vehicle to confirm that it is in operating condition, and arrange for disposition.

  21. Texas Natural Gas Vehicle Grant Program (TNGVGP) • The new vehicle/engine must receive 75% of its power from compressed or liquefied natural gas. • The project must result in a reduction in NOx emissions of at least 25% as compared to the original engine. • Grants awarded to cover up to 90% of the incremental cost of the natural gas vehicle or engine.

  22. Texas Natural Gas Vehicle Grant Program (TNGVGP) Projects Awarded SummaryFiscal Years 2012 - 2013 • Number of Projects – 31 • Number of Activities – 177 • Grant Amount Awarded - $25,789,500

  23. Light-Duty Motor Vehicle Purchase or Lease Incentive Program (LDPLI) • Provides rebates for certain light-duty vehicles • Up to 2,000 CNG and propane (LPG) vehicles and 2,000 electric plug-in vehicles may be funded. • Rebates of up to $2,500 per vehicle will be available. • The program will maintain a list of qualifying vehicles. • The new vehicle must be registered and operated in Texas for a period of one year. • CNG and LPG vehicles must be under 10,000 pounds GVWR. • Electric vehicles must be less than 8,500 pounds GVWR.

  24. Alternative Fueling Facilities Program (AFFP) • Provides grants for the construction or reconstruction of facilities to dispense alternative fuels • Grant-funded facilities must be located in the nonattainment areas of Texas. • Grant amounts will be for the lesser of 50% of the eligible costs or $600,000. • A facility must operate for at least three years. • Eligible fuels include natural gas, liquefied petroleum gas (LPG), biodiesel, hydrogen, methanol (80% by volume), and electricity.

  25. Alternative Fueling Facilities Program (AFFP) Projects Awarded SummaryFiscal Year 2012 • Number of Projects – 4 • Number of Stations: • CNG and LNG 1 • CNG 3 • Grant Amount Awarded - $1,786,602

  26. Clean Transportation Triangle (CTT) • Provides grants for the construction or reconstruction of facilities to dispense natural gas • Grant-funded fueling stations must be in the nonattainment areas, affected counties, or counties along and between the interstate highways connecting Dallas-Fort Worth, Houston, and San Antonio. • Grant-funded fueling stations must be made available to the public and must operate for at least three years. • Grants may not exceed: • $400,000 for stations providing CNG; • $400,000 for stations providing LNG; or • $600,000 for stations providing both CNG and LNG.

  27. Texas Clean Transportation Triangle (CTT) Program Projects Awarded SummaryFiscal Years 2012 - 2013 • Number of Projects – 18 • Number of Stations: • CNG and LNG 6 • CNG 10 • LNG 2 • Grant Amount Awarded - $3,900,000

  28. New Technology Implementation Grant (NTIG) Program • Provides grants to offset the incremental cost of emission reductions from facilities and other stationary sources in Texas • Eligible categories include: • Electricity Storage projects related to renewable energy, such as: • compressed air energy storage; • pumped hydropower; • thermal storage; • flywheels; • lithium-ion batteries; and • Superconducting magnetic energy storage. • New Technology projects that reduce emissions of regulated pollutants from point sources

  29. New Technology Implementation Grant (NTIG) Program • Advanced Clean Energy projects that involve the generation of electricity using the following fuels: • coal; • biomass; • natural gas; • petroleum coke; • solid waste; and • fuel cells which use derived hydrogen. • Projects must meet minimum emissions reductions requirements for sulphur dioxide (SO2), mercury, NOX, filterable particulate matter, and carbon dioxide (CO2).

  30. New Technology Implementation Grant (NTIG) Program Projects Awarded SummaryFiscal Year 2011 • Number of Projects – 1 • Grant Amount Awarded - $3,700,000

  31. Texas Clean School Bus Program • A comprehensive program designed to reduce emissions of diesel exhaust from school buses • Projects may include diesel oxidation catalysts, diesel particulate filters, and emissions-reducing add-on equipment. • This program focuses on the reduction of emissions of diesel exhaust by retrofitting older school buses.

  32. Texas Clean School Bus ProgramProjects Awarded SummaryFiscal Years 2008 - 2013 • Number of Projects – 178 • Number of School Buses Retrofitted - 6,951 • Grant Amount Awarded - $18,564,030 (state funding)

  33. TERP FUNDING

  34. TERP FY 2014 – 2015 Funding

  35. Next Grant Rounds • A CTT/AFFP joint solicitation closed on February 18, 2014. 78 grant applications were received for funding consideration. • The next New Technology Implementation Grant Program is planned for April 2014. • The next Clean Fleet application period is planned for June 2014. • The TNGVGP solicitation is currently open until May 31, 2015. • The next ERIG application period is planned for September 2014. • The next Rebate Grants application period is planned for December 2015. • The Drayage Truck Incentive Program is planned for September 2014. • The Clean School Bus Program application period is currently closed.

  36. Contact Information • Web site: www.terpgrants.org • E-mail: terp@tceq.texas.gov • Toll Free: 800-919-TERP (8377)

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