air quality division 1-800-919-terp (8377) page 1 texas emissions reduction plan (terp) workshop...

Air Quality Division • www.terpgrants.org • 1-800-919-TERP (8377)

Texas Emissions Reduction Plan (TERP)

Workshop

Air Quality Division •


TERP Workshop

• Program Description

• Grant Programs

• Grantee Responsibilities

• Application Forms


TERP


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


Map of TERP Eligible CountiesCurrent RFA Eligible Areas

Houston-Galveston-Brazoria:BrazoriaFort BendWallerMontgomeryLibertyChambersGalvestonHarrisDallas-Fort Worth:DentonCollinTarrantDallasRockwallKaufmanEllisJohnsonParkerBeaumont-Port Arthur:HardinOrangeJefferson


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


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


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 equipmentMust operate 75% of the annual usage in the eligible areas for a minimum of 5 years



• 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



• 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)




– 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



• 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



• 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


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



• 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)




– 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%


Grant Program Projects

Emissions Reduction Incentive Grants

• New purchases and leases

• Replacements• Repowers• Retrofit and add-on

devices• Infrastructure

Rebate Grants

• Replacements• Repowers


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


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


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


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)


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


Disposition

• Salvage Only

• $1,000 default amount for on-road and non-road

• 90 days payment from TCEQ


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


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


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


Required Information for the Application

• Baseline Engine (currently operating)– Year– Engine Family Code

• New Engine – Year– Engine Family Code

Example: 6CPXH0928EBK


Rebate Grants Application


Emissions Reduction Incentive Grants Application


Application Information

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


Contacts

• Web Site: www.terpgrants.org

• Email: [email protected]

• Toll Free: 800-919-TERP (8377)

air quality division 1-800-919-terp (8377) page 1 texas emissions reduction plan (terp) workshop...

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