TCEQ Environmental Trade Fair & Conference May 5, 2015 Page 1 Texas Emissions Reduction Plan (TERP) Air Quality Division May 2015

TCEQ Environmental Trade Fair & Conference • May 5, 2015 • Page 1

Texas Emissions Reduction Plan (TERP)

Air Quality Division • May 2015

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What does TERP do?

The Texas Emissions Reduction Plan (TERP) program provides financial incentives to upgrade or replace older heavy-duty vehicles, non-road equipment, locomotives, marine vessels, and stationary equipment to reduce nitrogen oxides (NOx) emissions in eligible areas.

With recent legislation, the TERP also supports programs to encourage the use of alternative fuels for transportation in Texas.


Primary Goal is to Reduce NOX

TERP provides financial incentives for projects that reduce NOX emissions in eligible areas.

NOX emissions combine with volatile organic compounds (VOC) in the presence of sunlight to form ground level ozone (smog).

NOX + VOC + Ozone


Mobile Sources of NOx



Diesel Emissions Reduction Incentive (DERI) Program



Emissions Reduction Incentive Grants (ERIG) Program

A competitive grant program that provides incentives to upgrade or replace older heavy-duty vehicles, non-road equipment, locomotives, marine vessels, and stationary equipment

Eligible replacement vehicles and equipment include:

• Diesel Engines;

• Alternative Fuel Vehicles and Equipment;

• Hybrid Vehicles and Equipment;

• Idle Reduction Infrastructure; and

• Refueling Infrastructure.


• Eligible ApplicantsPersons (individuals, businesses, districts, non-profits, and governments) that own and operate eligible vehicles and equipment in the eligible counties are eligible.

• Eligible Vehicles and Equipment− On-road vehicles must have a gross vehicle weight

rating (GVWR) of 8,501 pounds or higher.

− Non-road equipment, marine vessels, locomotives, and stationary equipment engines must have a horsepower of 25 or higher.

ERIG Program


Rebate Grants Program

Limited to replacement or repower of heavy-duty on-road diesel vehicles and non-road equipment

• Faster, simpler process for projects consistent with the ERIG requirements

• First-come, first-served

• On-road diesel vehicles may be replaced with diesel, natural gas, propane, or electric powered vehicles


DERI Projects Awarded by Area2001 Through August 2014

*Unknown/TBD includes grant funding to third parties that have not yet reported awards to a particular area.

AREANUMBER OF

PROJECTSNUMBER OF ACTIVITIES

TOTAL NOX

REDUCED (TONS) GRANT AMOUNT COST PER TON

TONS PER DAY OF NOX

REDUCED 2014

TONS PER DAY OF NOX

REDUCED 2015

TONS PER DAY OF NOX

REDUCED 2016Dallas/Fort Worth 3,843 6,226 57,052 $313,175,663 $5,489 19.0856 18.3152 14.0616Houston/Galveston/Brazoria 3,559 6,039 71,211 $383,672,768 $5,388 23.3956 20.5548 15.7429San Antonio 842 1,224 9,131 $64,074,653 $7,017 3.6435 3.6968 2.8766Austin 768 1,066 7,448 $56,537,201 $7,591 2.8663 2.7656 2.3353Tyler/Longview 204 300 5,381 $33,214,984 $6,172 2.3898 1.8485 1.3616Beaumont/Port Arthur 181 393 8,338 $41,850,438 $5,019 2.1857 1.7965 1.4771El Paso 135 170 706 $3,174,307 $4,497 0.1943 0.0000 0.0000Corpus Christi 31 169 987 $5,562,774 $5,634 0.0787 0.0569 0.0569Victoria 16 35 314 $2,202,300 $7,019 0.0086 0.1270 0.1270Unknown/TBD* 1 1 268 $1,678,050 $6,267 0.0000 0.1530 0.1530Total 9,580 15,623 160,836 $905,143,138 $5,628 53.8482 49.3143 38.1920


DERI Grant Amounts by Area

AUS Austin Area

BPA Beaumont-Port Arthur

CC Corpus Christi

DFW Dallas-Fort Worth

ELP El Paso

HGB Houston-Galveston-Brazoria

SA San Antonio Area

TBD* To Be Determined

TYL Tyler-Longview

VIC Victoria

* Includes Third-Party for funding not yet reported as assigned to specific areas.

AUS6% VIC

<1% BPA5%

CC1%

DFW35%

ELP<1%

SAT7%

HGB42%

TYL4%

TBD<1%


DERI Projects Awarded by Emission Source2001 Through August 2014

EMISSION SOURCENUMBER OF


TOTAL NOX

REDUCED (TONS) GRANT AMOUNT COST PER TON

TONS PER DAY OF NOX REDUCED

2014

TONS PER DAY OF NOX

REDUCED 2015

TONS PER DAY OF NOX

REDUCED 2016Non-Road 5,188 7,509 39,884 $289,981,153 $7,271 16.4565 14.9333 11.3106On-Road 4,201 7,271 52,346 $348,178,180 $6,651 20.5523 17.2997 13.6998Stationary 71 111 4,258 $13,427,343 $3,154 1.6379 1.6259 0.8638Marine 70 432 13,542 $42,635,086 $3,148 3.8095 3.7195 2.5553Locomotive 48 298 50,146 $206,321,342 $4,114 11.3920 11.3588 9.3854Unknown/TBD* 2 2 660 $4,600,035 $6,970 0.0000 0.3771 0.3771Total 9,580 15,623 160,836 $905,143,138 $5,628 53.8482 49.3143 38.1920

*Unknown/TBD includes grant funding to third parties that have not yet reported awards to particular categories.


Projects Awarded by Emission Source

Non-Road32%

On-Road38%

Stationary<1%

Marine5%

Locomotive23%

TBD<1%


DERI Projects Awarded Summary

• Number of Projects – 9,580

• Number of Activities – 15,623

• Total NOX Tons – 160,836

• Grant Amount - $905,143,138

• Cost Per Ton - $5,628


Other Grant Programs


Texas Clean Fleet Program (TCFP)

Provides incentives for the replacement of diesel vehicles with alternative fuel and hybrid vehicles

• Alternative fuels include compressed natural gas (CNG), liquefied natural gas (LNG), liquefied petroleum gas (LPG), hydrogen, methanol (80% by volume), and electricity.

• This program allows for replacement of light-duty, medium-duty, and heavy-duty diesel vehicles.

• Applicants must own at least 75 vehicles and operate those vehicles in Texas.

• Applicants must apply to replace at least 20 vehicles.

• Grants may pay for up to 80% of the costs.

• Grant selections are competitive, based on cost-per-ton of NOX reduced.


TCFP Awards(through August 2014)

CNG ; 88

Diesel Hybrid;

55

LPG; 162

FUELNUMBER OF


GRANT AMOUNT

CNG 4 88 $9,723,469Diesel Hybrid 1 55 $3,181,967LPG 7 162 $10,689,679Total 12 305 $23,595,115


Texas Natural Gas Vehicle Grant Program (TNGVGP)

Provides grants for the replacement and repower of heavy-duty and medium-duty vehicles and engines with heavy-duty and medium-duty CNG or LNG vehicles and engines

• Vehicles must operate in counties in the area defined by the Clean Transportation Triangle (CTT).

• Applications are submitted through Participating Dealers and awards are made on a first-come, first-served basis.

• Participating Dealer will verify eligibility, arrange for inspection of the original vehicle to confirm that it is in operating condition, and arrange for disposition.


TNGVGP

• The new vehicle/engine must receive at least 75% of its power from CNG or LNG.

• The project must result in a reduction in NOx emissions of at least 25% as compared to the original engine.

• The new engine must be certified to emit no more than 0.2 grams per brake horsepower-hour of NOX.

• Grants awarded to cover up to 90% of the incremental cost of the natural gas vehicle or engine.



TNGVGP Awards(through August 2014)

• Number of Projects: 57

• Number of Activities: 714

• Grant Amount Awarded: $36,487,425


Drayage Truck Incentive Program (DTIP)

Provides incentives for the replacement of older drayage trucks operating at seaports and Class I rail yards in areas of Texas designated as nonattainment.

• Eligible applicants must operate the grant-funded drayage trucks in the nonattainment or affected counties for at least 50% of the annual usage.

• Eligible applicants must operate a drayage truck in one or more of the designated seaports or Class I rail yards for an average of 200 visits per year.

• Eligible vehicles & equipment include: – on-road vehicles with a GVWR greater than 26,000

pounds; and– yard trucks (terminal tractors) with an engine rated at

greater than 125 horsepower.


Clean Transportation Triangle (CTT)

Provides grants for the construction or reconstruction of facilities to dispense natural gas

• Grant-funded fueling stations must be in the nonattainment areas, affected counties, or counties along and between the interstate highways connecting Dallas-Fort Worth, Houston, and San Antonio.

• Grant-funded fueling stations must be made available to the public and must operate for at least three years.

• Grants may not exceed:

− $400,000 for stations providing CNG;

− $400,000 for stations providing LNG; or

− $600,000 for stations providing both CNG and LNG.



CTT Awards(through August 2014)

•CNG: 10− 5 in Dallas-Fort Worth− 1 in Houston-Galveston-Brazoria− 4 in other areas

• LNG: 2− 1 in Houston-Galveston-Brazoria− 1 in other areas

• CNG + LNG: 6− 3 in Dallas-Fort Worth− 3 in other areas

• Grant Amount: $3,900,000

• Additional grant awards for FY 2015 are pending.


Alternative Fueling Facilities Program (AFFP)

Provides grants for the construction or reconstruction to dispense alternative fuels

• Eligible Alternative Fuels; Biodiesel, Hydrogen, Methanol, Natural Gas, Propane, and Electricity

• Grant-funded facilities must be located in the nonattainment areas of Texas.

• Grant amounts will be for the lesser of 50% of the eligible costs or $600,000.

• Grant-funded fueling stations must be made available to the public and must operate for at least three years.



AFFP Awards(through August 2014)

• CNG: 3− 2 in Houston-Galveston-Brazoria− 1 in Dallas-Fort Worth

• CNG + LNG: 1− Houston-Galveston-Brazoria

• Grant Amount: $1,786,602

• Additional grant awards for FY 2015 are pending.


Texas Clean School Bus Program

The Texas Clean School Bus Program is a comprehensive program designed to reduce emissions of diesel exhaust from school buses.

• Projects may include diesel oxidation catalysts, diesel particulate filters, and emissions-reducing add-on equipment.

• This program focuses on the reduction of emissions of diesel exhaust by retrofitting older school buses.


Texas Clean School Bus Program

• Through FY 2014 this program had funded the retrofit of 7,103 school buses, for a total funding amount of $25,946,067 ($21,614,775 in TERP funds and $4,331,292 in federal funds).

• So far in FY 2015, an additional 161 buses have been funded for a total funding amount of ($3,010,696 in TERP funds and $136,688 in federal funds).


Light-Duty Motor Vehicle Purchase or Lease Incentive Program (LDPLI)

Provides rebate-type grants for certain light-duty vehicles

• Up to 2,000 CNG and LPG vehicles and 2,000 electric plug-in light-duty vehicles may be funded.

• Plug-in hybrid-electric vehicles are included.

• Rebates of up to $2,500 per vehicle are available (first-come, first-served).

• The TCEQ maintains a list of qualifying vehicles.

• The new vehicle must be registered and operated in Texas for a period of at least one year.

• Vehicles must be less than 10,000 pounds GVWR.


LDPLI Awards(through March 2015)

•Plug-In Electric Vehicles: 1,160

• CNG Vehicles: 162

• Grant Funds Awarded: $2,956,250.00

• Funds Remaining: $4,800,866.00


LDPLIPlug-In Electric Vehicles Funded

BMW i3; 57

BMW i3 Rex; 46

BMW i8; 3 Cadillac ELR; 17

Chevrolet Volt; 192

Ford Focus BEV; 17

Ford Fusion Energi; 40

Ford C-Max Energi; 41Mercedes-Benz Smart , 11

Mitsubishi i-MiEV; 5

Nissan Leaf; 419

Porsche Panamera S E-Hybrid, 2


LDPLICNG/LPG Vehicles Funded

Chevrolet Silverado 1500; 1Chevrolet Sil-

verado 2500; 21

Chevrolet Ex-press 2500; 51

Ford F150; 78

Ford F250; 6


New Technology Implementation Grants (NTIG) Program

The primary purpose of this grant program is to offset the incremental cost of emission reductions from facilities and other stationary sources in Texas.

• Eligible categories include:

− Electricity Storage;

− New Technology; and

− Advanced Clean Energy.


TERP FUNDING


TERP Grant FundingFY 2014 – 2015

PROGRAMApproximate Funding

Amounts per Fiscal Year(FY 2014 – 2015)

Emissions Reduction Incentive Grants/ Rebate Grants/Third-Party Grants

$33.7 M

Texas Natural Gas Vehicle Grant Program $12.4 M

Texas Clean Fleet Program $3.9 M

Texas Clean School Bus Program $3.1 M

Clean Transportation Triangle $3.9 M

Alternative Fueling Facilities Program $3.9 M

New Technology Implementation Grants $2.3 M

Drayage Truck Incentive Program $1.5 M

Light-Duty Motor Vehicle Purchase or Lease Incentives $3.9 M


Contact Information

• Web site: www.terpgrants.org

• E-mail: [email protected]

• Toll Free: 800-919-TERP (8377)

Documents

TCEQ Environmental Trade Fair & Conference May 5, 2015 Page 1 Texas Emissions Reduction Plan (TERP) Air Quality Division May 2015