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

Texas Emissions Reduction Plan (TERP)

Donna F. HuffProject Development Coordinator

Air Quality Division •

Air Quality Division • www.terpgrants.org • 1-800-919-TERP (8377) Page 2

TERP

• Program Description• Implementation• Monitoring• Reporting

Air Quality Division • www.terpgrants.org • 1-800-919-TERP (8377) Page 3

TERP

Air Quality Division • www.terpgrants.org • 1-800-919-TERP (8377) Page 4

TERP

Air Quality Division • www.terpgrants.org • 1-800-919-TERP (8377) Page 5

Program to Date

• $406 million

• 1,513 grant projects

• 5,943 vehicles, engines, and pieces of equipment

• 100,582 tons of NOx reduced

• 45 tons per day of NOx reduced

Air Quality Division • www.terpgrants.org • 1-800-919-TERP (8377) Page 6

TERP

• Provides incentives for projects that reduce nitrogen oxides (NOx)

– Voluntary

– Equivalent reductions that would have been achieved through mandatory SIP requirements

Construction Equipment RestrictionAccelerated Purchase of Tier 2/Tier 3 diesel equipment

Air Quality Division • www.terpgrants.org • 1-800-919-TERP (8377) Page 7

Funding Sources• Portion of vehicle certificate of title

fee

• 2% surcharge for sale, lease, rental, storage, use and consumption of heavy-duty diesel (HDD) non-road equipment

• $10 inspection fee surcharge for commercial motor vehicles

Air Quality Division • www.terpgrants.org • 1-800-919-TERP (8377) Page 8

Funding Sources

• 2.5% surcharge for sale, lease, or use of pre-1997 HDD vehicles over 14,000 lbs; 1% for 1997 and later HDDs

• 10% registration fee surcharge for truck tractors and commercial motor vehicles

Air Quality Division • www.terpgrants.org • 1-800-919-TERP (8377) Page 9

Implementation

• Administration:

– Request for Applications/Notice of Rebate Grants

– Application forms

– OutreachWorkshops in eligible areasApplication assistance

Air Quality Division • www.terpgrants.org • 1-800-919-TERP (8377) Page 10

Implementation

• Release the Request for Applications/Notice of Rebate Grants:

– Web site/listserv

– Press release

– Mail outsDealersTxDOT database

Air Quality Division • www.terpgrants.org • 1-800-919-TERP (8377) Page 11

Implementation• Emissions Reduction Incentive Grants

– Open/close date

– Review applicationsCalculatorsEngine family codesEnforcement check

Air Quality Division • www.terpgrants.org • 1-800-919-TERP (8377) Page 12

Implementation• Emissions Reduction Incentive Grants

– Project Selection Selection committeeCost per ton

– Notify applicants

– Contracts

Air Quality Division • www.terpgrants.org • 1-800-919-TERP (8377) Page 13

Implementation• Rebate Grants

– Small businesses

– First-come, first-served

– Open/close dateAvailability of funds

– Pre-calculated numbers

– Application becomes contract

Air Quality Division • www.terpgrants.org • 1-800-919-TERP (8377) Page 14

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

Air Quality Division • www.terpgrants.org • 1-800-919-TERP (8377) Page 15

Disposition

• Salvage Only

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

• 90 days payment from TCEQ

Air Quality Division • www.terpgrants.org • 1-800-919-TERP (8377) Page 16

Usage Commitment• Contractual commitment

• 75 percent of usage must be in eligible areas

– Miles– Hours– Fuel

Failure to meet the usage commitment may result in the recipient having to return a share or all of the grant funds

Air Quality Division • www.terpgrants.org • 1-800-919-TERP (8377) Page 17

Monitoring and Reporting• Monitoring

– Application verification– High risk

• Reporting – Semi-annually– Usage commitment (miles, hours, fuel)

Failure to report may result in the recipient having to return a share or all of the grant funds

Air Quality Division • www.terpgrants.org • 1-800-919-TERP (8377) Page 18

Monitoring and Reporting

• Global Positioning Systems (GPS)

– Eligible grant expenseInstallationUnit

– ServiceTCEQ vendorGrantee responsibility

Air Quality Division • www.terpgrants.org • 1-800-919-TERP (8377) Page 19

Monitoring and Reporting

• Global Positioning Systems (GPS)

– Self reportingVoluntaryReporting requirement waived

– Enforcement toolNoncompliance

– High riskRequired to be eligible

Air Quality Division • www.terpgrants.org • 1-800-919-TERP (8377) Page 20

Contacts

• Web Site: www.terpgrants.org

• Email: terp@tceq.state.tx.us

• Toll Free: 800-919-TERP (8377)