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Texas Emissions Reduction Plan
(TERP)
Workshop
Air Quality Division
Air Quality Division • www.terpgrants.org • 1-800-919-TERP (8377) Page 1
•
TERP Workshop
• Program Description
• Grant Programs
• Grantee Responsibilities
• Application Forms
Air Quality Division • www.terpgrants.org • 1-800-919-TERP (8377) Page 2
TERP
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
• 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
Air Quality Division • www.terpgrants.org • 1-800-919-TERP (8377) Page 5
Map of TERP Eligible Counties
Current RFA Eligible Areas
Houston-Galveston-Brazoria:
Brazoria
Fort Bend
Waller
Montgomery
Liberty
Chambers
Galveston
Harris
Dallas-Fort Worth:
Denton
Collin
Tarrant
Dallas
Rockwall
Kaufman
Ellis
Johnson
Parker
Beaumont-Port Arthur:
Hardin
Orange
Jefferson
Air Quality Division • www.terpgrants.org • 1-800-919-TERP (8377) Page 6
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
Air Quality Division • www.terpgrants.org • 1-800-919-TERP (8377) Page 7
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
Air Quality Division • www.terpgrants.org • 1-800-919-TERP (8377) Page 8
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 equipment
Must operate 75% of the annual usage in
the eligible areas for a minimum of 5 years
Air Quality Division • www.terpgrants.org • 1-800-919-TERP (8377) Page 9
Emissions Reduction Incentive Grants
Eligibility
• 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
Air Quality Division • www.terpgrants.org • 1-800-919-TERP (8377) Page 10
Emissions Reduction Incentive Grants
Eligibility
• 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)
Air Quality Division • www.terpgrants.org • 1-800-919-TERP (8377) Page 11
Emissions Reduction Incentive Grants
Eligibility
• Types of Projects:
– 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
Air Quality Division • www.terpgrants.org • 1-800-919-TERP (8377) Page 12
Emissions Reduction Incentive Grants
Eligibility
• 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
Air Quality Division • www.terpgrants.org • 1-800-919-TERP (8377) Page 13
Emissions Reduction Incentive Grants
Eligibility
• 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
Air Quality Division • www.terpgrants.org • 1-800-919-TERP (8377) Page 14
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
Air Quality Division • www.terpgrants.org • 1-800-919-TERP (8377) Page 15
Rebate Grants Eligibility
• 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)
Air Quality Division • www.terpgrants.org • 1-800-919-TERP (8377) Page 16
Rebate Grants Eligibility
• Types of Projects:
– 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%
Air Quality Division • www.terpgrants.org • 1-800-919-TERP (8377) Page 17
Grant Program Projects
Emissions Reduction
Incentive Grants
• New purchases and
•
•
•
•
leases
Replacements
Repowers
Retrofit and add-on
devices
Infrastructure
Rebate Grants
• Replacements
• Repowers
Air Quality Division • www.terpgrants.org • 1-800-919-TERP (8377) Page 18
Grant Program Source Categories
Emissions Reduction
Incentive Grants
• On-road
• Non-road
Rebate Grants
• On-road diesel
• Non-road diesel
• Marine vessels
• Locomotives
• Stationary equipment
Air Quality Division • www.terpgrants.org • 1-800-919-TERP (8377) Page 19
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
Air Quality Division • www.terpgrants.org • 1-800-919-TERP (8377) Page 20
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
Air Quality Division • www.terpgrants.org • 1-800-919-TERP (8377) Page 21
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)
Air Quality Division • www.terpgrants.org • 1-800-919-TERP (8377) Page 22
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 23
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 24
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
Air Quality Division • www.terpgrants.org • 1-800-919-TERP (8377) Page 25
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
Air Quality Division • www.terpgrants.org • 1-800-919-TERP (8377) Page 26
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
Air Quality Division • www.terpgrants.org • 1-800-919-TERP (8377) Page 27
Required Information for the
Application
• Baseline Engine (currently operating)
– Year
– Engine Family Code
• New Engine
– Year
– Engine Family Code
Example:
6CPXH0928EBK
Air Quality Division • www.terpgrants.org • 1-800-919-TERP (8377) Page 28
Rebate Grants Application
Air Quality Division • www.terpgrants.org • 1-800-919-TERP (8377) Page 29
Emissions Reduction Incentive Grants Application
Air Quality Division • www.terpgrants.org • 1-800-919-TERP (8377) Page 30
Application Information
• Calculations to complete forms
– Calculator at www.terpgrants.org
– Technical Supplements
Air Quality Division • www.terpgrants.org • 1-800-919-TERP (8377) Page 31
Contacts
• Web Site: www.terpgrants.org
• Email: [email protected]
• Toll Free: 800-919-TERP (8377)
Air Quality Division • www.terpgrants.org • 1-800-919-TERP (8377) Page 32