Transcript www.tceq.state.tx.us

Texas Emissions Reduction Plan
(TERP)
Texas Commission on Environmental Quality
August 4, 2004
TERP Advisory Board Meeting
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Overview
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TERP was created in 2001 by SB 5 (77th Texas
Legislature)
Focus is on voluntary incentives for projects to
reduce emissions of nitrogen oxides (NOx) in
the nonattainment and near-nonattainment
areas of Texas.
The program was amended in 2003 by HB 1365
(78th Texas Legislature)
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Added Small Business Grant Program
Increased types of eligible sources and projects
Provided for new revenues
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TERP Programs
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Chapter 386
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Chapter 387
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Emissions Reduction Incentive Grant Program (TCEQ)
Small Business Grants Program (TCEQ)
Heavy-Duty Motor Vehicle Purchase or Lease Incentive Program
(TCEQ)
Light-Duty Motor Vehicle Purchase or Lease Incentive Program
(TCEQ and Comptroller)
Energy Efficiency Grant Program (PUC)
New Technology Research and Development Program (TCEQ)
Chapter 388
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Texas Building Energy Performance Standards (Lab)
Energy Efficiency Programs in Certain Political Subdivisions (SECO)
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Legislative Report Contents
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Summary of projects funded with TERP funds
Accounting of the use of funds
Status of Plan in achieving emission reductions credited in
air quality plans
Summary of administrative processes
Program adjustments made since last report and
necessary legislative recommendations necessary to
improve the Plan
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Funding (FY02 – June 30, 2004)
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Surcharge on off road equipment - $34.7 million
Surcharge on heavy-duty on-road vehicles - $16.1 million
10% fee on commercial motor vehicle registrations - $22.5
million
$225 fee for inspection of out-of-state vehicles - $0
Portion of vehicle title fees - $87.7 million
$10 fee on commercial vehicle inspections - $10.1 million
Fund balance interest - $1.8 million
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Emissions Reduction Incentive and
Small Business Projects Funded to
Date (Sept. 1, 2001 - June 30, 2004)
Area
$ Awarded
Projected NOx
reductions (tons)
Projected NOx
reductions
(Tons/Day)
Average Cost
per ton/NOx
Total
$41,819,695
7,179.8347
4.6558
$5,736
AUS
$514,423
41.1708
0.0107
$12,495
BPA
$400,000
120.2500
0.0962
$3,326
CC
$15,432
3.3029
0.0026
$4,672
DFW
$10,753,864
2,638.0720
1.5886
$3,186
ELP
$1,475,000
327.3413
0.1637
$5,632
HGA
$23,544,589
3,141.3749
2.3257
$7,261
SAT
$5,116,387
908.3228
.4682
$5,632
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Small Business Projects
Only (as of June 30, 2004)
Area
$ Awarded
Projected
NOx
reductions
(tons)
Projected
NOx
Reduction
s
(tons/day)
Average
Cost per
ton/NOx
DFW
$104,531
9.2464
1.8493
$12,345
SAT
$38,500
3.2792
0.6558
$12,820
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FY04 2nd Round Selected Projects
(as of July 26, 2004)
No. of Projects
Grant Amount
Projected NOx
Reductions
(tons)
Projected NOx
reductions
(Tons/day)
Average Cost
per ton/NOx
Total
203
$80,894,367
13,573.87
9.55
$5,960
AUS
43
$6,069,179
871.91
0.59
$6,961
BPA
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$2,181,910
426.48
0.29
$5,116
CC
4
$1,907,996
275.35
0.22
$6,929
DFW
93
$29,693,983
5564.12
3.78
$5,337
ELP
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$457,018
113.90
0.09
$4,012
HGA
43
$36,408,518
5690.89
3.72
$6,398
SAT
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$2,547,923
388.59
0.26
$6,557
TYL
2
$799,450
122.74
0.10
$6,513
VIC
4
$828,390
119.89
0.51
$6,910
Area
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FY05 Program
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Staff working on allocation approaches for
Commissioners’ Work Session on August 16th
Eligibility criteria for Emissions Reduction Incentive Grant
Program - $7,000/ton; for Small Business Grants Program
- $8,500
Funding cap for infrastructure projects at 50%
Ensure minimal risk to state funds when funding start-up
businesses
Continue funding lease projects
Continue to work with public entities on 3rd party grants;
no private entities for FY05
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Estimated Future Revenue
for Emissions Reduction Incentive
and Small Business Grants
Programs
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FY2005 - $127.4 million
FY2006 - $129.8 million
FY2007 - $132.8 million
FY2008 - $135.2 million
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New Technology Research and
Development Estimated Future
Revenue
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FY2005 - $13.8 million
FY2006 - $14.2 million
FY2007 - $14.5 million
FY2008 - $14.7 million
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What is the NTRD?
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The Texas Council on Environmental Technology
(TCET) was created in 2001 by SB 5 to implement
NTRD
Assist in developing solutions to
• air
• water
• waste problems
Funded 15 projects totaling $2.4 million
NTRD Program was formally transferred to TCEQ in
2003, by HB 37
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New Technology Research &
Development Program
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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.
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Fiscal Year 2004
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Primary objective to fund :
• Emissions-reducing technologies
• May be eligible for funding under Chapter 386
(TERP)
74 applications - requesting approximately $60
million in funding
17 projects selected for $8.3 million
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NTRD Funding for Fiscal Year
2004
Advanced
Technology-Other
17%
Study/Modeling
8%
Qualifying Fuel
4%
Retrofit/Add-On
51%
Advanced
TechnologyEngine
20%
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NTRD Funded Projects for Fiscal
Year 2004
$ Awarded
Number of
Projects
Total
$8.3 Million
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Retrofit/add-on technologies targeted by the TERP
$ 4,347,369
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Advanced technologies for new engines
$ 1,633,628
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Studies and modeling
$ 687,439
2
$0
0
Advanced technologies that reduce emissions from
other significant sources.
$1,385,635
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*Qualifying fuel projects
$ 295,322
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Advanced technologies that promote building and
appliance energy performance
*TERP Related
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Fiscal Year 2005 Applications
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Primary objective to fund :
• Emissions-reducing technologies
• May be eligible for funding under Chapter
386 (TERP)
104 applications - requesting approximately
$73.6 million in funding
Currently in the review process
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