Texas NTRD Program: Funding for New Technologies

1. New Technology Research and Development Program (NTRD)Texas Commission on Environmental Quality

2. Agenda • Introduction • NTRD Overview • Application Forms and Processes • ETV Process Overview • Questions and Answers

3. Two Main Programs • Emissions Reduction Incentive Grants (TERP) • New Technology Research & Development Program

4. Emissions Reduction Incentive Grants (TERP) • NOx reduction of 25% or greater • Electrification and idle reduction infrastructure • Infrastructure for qualifying fuel • Incremental costs for qualifying fuel purchases • Less than $13,000 per ton of NOx reduced. • Requires approved technology www.terpgrants.org

5. What is the NTRD? • NTRD was created as TCET in 2001 by SB 5 • Assist in developing solutions to • air • water • waste problems • Formally transferred to TCEQ in 2003, by HB 37

6. New Technology Research & Development Program • Retrofit/add-on technologies targeted by the TERP • Advanced technologies for new engines • Studies and modeling • Advanced technologies that promote building and appliance energy performance • Advanced technologies that reduce emissions from other significant sources.

7. FundingHB 1365 • 9.5% of TERP funds • ~$11 million for FY’05

8. Eligible Applicants • Individuals • Corporations • Organizations • Governments or agencies • Business Trust • Partnerships • Associations • Or any other legal entity

9. Application Process • Periodic call for a RFGA • Required Forms • will be available on the TCEQ web page • Application Submission • three hard copies • one electronic copy • Deadline for Submission • 45 days after RFGA posting

10. Status of Application Upon submission, all proposals : • Become the property of the State of Texas • Subject to public disclosure under the Texas Public Information Act (PIA) • Grantee owns the Intellectual Property

11. Scoring Categories • Projects leading to the TERP • Other new technology projects • Studies All projects reviewed by evaluation committee.

12. Projects Leading to TERP • Reduce heavy duty diesel NOx emissions • Commercialization in Texas nonattainment areas • Commercialization within five years

13. Other New Technology Projects • Ultimately have commercial use in Texas • Result in reduced air pollution emission • Not eligible for funding under TERP

14. Studies • Ranked according to the Science Coordination Committee priorities • Significant demonstration project (provide a modeling study in time to be considered in a SIP revision)

15. Commercialization Plan Heavily weighted towards the strongest and most immediate commercialization plan • Should be available within five years • Greatest potential for large emission reductions • Cost-effective commercial technology

16. Testing Protocol • State clearly • Extent it has been developed and approved (e.g., by EPA or CARB) • Address the warranty issues

17. Other Criteria • Experience obtaining EPA or CARB verification • Previous experience with similar types of projects • Additional funding through other sources

18. Negative Scoring • Environmental Hazards • Safety Issues • Warranty Issues If you know any of these issues, indicate in the application how they will be addressed.

19. Other Helpful Information • Each different phase of the project could be submitted as a separate application • Costs should be broken down so that partial funding could be considered • May be considered for future project selection within the fiscal year

20. Important Information to Include in Application • Detailed Scope of work • Estimate of reductions • Estimate of cost of commercialized product • Safety and Environmental issues • Confidential information should be Part F.

21. Grant Awards • Notice to proceed • Payment of grant is based on periodic progress and financial reports • Grant must be closed out by the end of the biennium

22. Environmental Technology Verification (ETV) Program • Objective: Evaluate the emission reduction effectiveness of technologies • Verification consists of the following: • Application & Technology Description • Appropriate Testing Protocols • Statistical Sampling Methods • Durability Requirements

23. Key Verification Participants • Manufacturers • Retrofit Technology Manufacturers • Engine Manufacturers • EPA, Office of Transportation & Air Quality (OTAQ) • Technical Support • Mobile Source Program Guidance • Research Triangle Institute (RTI) • EPA Environmental Technology Verification (ETV) Program • Testing Organizations • Southwest Research Institute (so far)

24. Verification Process • Manufacturer Applies To EPA & RTI • EPA, RTI & Manufacturer Develop Test Plan • RTI, Testing Organization & Manufacturer – Develop and Sign Statement of Work • Testing Performed & Documented • RTI Generates ETV Report (which is public information) • OTAQ Includes on Verified Technology List • Explore Expanding Verification to Other Engines

25. Verification Process Contacts • EPA Retrofit Verification: johnson.dennis@epa.gov • ETV Air Pollution Control Center Research Triangle Institute: atrenholm@rti.org • California Air Resources Board Retrofit Assessment Section: srowland@arb.ca.gov Dennis Johnson (202) 343-9278 Drew Trenholm (919) 316-3742 Scott Rowland (626) 575-6972

26. For Further Information on the ETV Process • EPA’s Voluntary Diesel Retrofit Program www.epa.gov/otaq/retrofit • EPA’s ETV Program www.epa.gov/etv • Research Triangle Institute - Air Pollution Control Center http://etv.rti.org/apct/ • California Air Resources Board http://www.arb.ca.gov/diesel/verdev/verdev.htm

27. TCEQ Contact Information Web Site http://www.tnrcc.state.tx.us/oprd/sips/research.html Or www.terpgrants.org Mr. Joe Walton at (512) 239-4143 E-Mail: jwalton@tceq.state.tx.us Mr. Randy Baylor at (512) 239-0225 E-Mail: rbaylor@tceq.state.tx.us