Texas Emissions Reduction Plan (TERP) · 15/07/2012 · (DTIP) Provides incentives for the replacement of older drayage trucks operating at seaports and Class I rail yards in areas

Air Quality Division • December 2015 • Page 1

Texas Emissions Reduction Plan (TERP)

Air Quality Division • December 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.

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


TERP and the Ozone Standards

• TERP grant programs are a strategy in the State Implementation Plan (SIP).

• TERP emissions reductions have recently been used as weight of evidence in the Attainment Demonstration SIP.

• TERP is also intended to help air quality planning areas remain in attainment.


Mobile Sources of NOx


TERP Grant Programs

• Diesel Emissions Reduction Incentive (DERI) Program

• Drayage Truck Incentive Program (DTIP)

• Texas Clean Fleet Program (TCFP)

• Texas Natural Gas Vehicle Grant Program (TNGVGP)

• Clean Transportation Triangle (CTT) Program

• Alternative Fueling Facilities Program (AFFP)

• Texas Clean School Bus Program (TCSBP)

• New Technology Implementation Grants (NTIG)


Diesel Emissions Reduction Incentive Program(DERI)



Emissions Reduction Incentive Grants Program(ERIG)

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.


Rebate Grants Program

Limited to replacement or repower of heavy-duty

on-road diesel vehicles and select 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-August 2015

AREANUMBER

OF PROJECTS

NUMBER OF ACTIVITIES

TOTAL NOX

REDUCED (TONS)

GRANT AMOUNT

COST PER TON

Dallas/Fort Worth 4,055 6,583 58,062 $327,180,375 $5,635

Houston/Galveston/Brazoria 3,737 6,364 75,234 $411,997,395 $5,476

San Antonio 916 1,328 9,562 $68,061,268 $7,118

Austin 898 1,259 8,675 $67,707,651 $7,805

Tyler/Longview 208 470 5,377 $33,184,436 $6,171

Beaumont/Port Arthur 203 299 8,721 $45,069,315 $5,168

El Paso 135 170 706 $3,174,307 $4,497

Corpus Christi 47 198 1,434 $7,831,832 $5,462

Victoria 38 60 518 $4,065,018 $7,847

TOTAL 10,237 16,731 168,289 $968,271,596 $5,754


DERI Percentage of Grant Funds Awarded by Area2001-August 2015

Dallas/Fort Worth34%

Houston/GalvestonBrazoria

43%

San Antonio7%

Austin7%

Tyler/Longview3%

Beaumont/Port Arthur5%

El Paso<1%

Corpus Christi1%

Victoria<1%


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 and/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 yards for a minimum number of visits per year.

• Eligible vehicles and equipment include:

– on-road vehicles with a gross vehicle weight rating (GVWR) greater than 26,000 pounds; and

– yard trucks (terminal tractors) with an engine rated at greater than 125 horsepower.



DTIP Projects Awarded by Terminal Type Fiscal Year 2015

AREA

NUMBER OF

PROJECTS

NUMBER OF

ACTIVITIESGRANT

AMOUNT

TOTAL NOX

REDUCTIONS (Tons)

COST PER TON OF NOX

REDUCED

Port 8 37 $3,452,400 208 $16,621

Rail 1 10 $501,524 25 $19,983

TOTAL 9 47 $3,953,924 233 $16,983


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 (85% by volume), and electricity.

• This program allows for replacement of light-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 Projects Awarded by Fuel Type2010-August 2015

FUELNUMBER

OF PROJECTS

NUMBER OF

ACTIVITIES

GRANT AMOUNT

TOTAL NOX

REDUCTIONS (Tons)

COST PER TON OF NOX

REDUCED

Compressed Natural Gas (CNG) 6 112 $13,414,276 238 $56,396

Diesel Hybrid 1 61 $4,462,877 40 $111,551

Liquified Petroleum Gas (LPG) 9 218 $13,534,072 123 $110,185

TOTAL 16 391 $31,411,226 401 $78,391


TCFP Projects Awarded by Area2010-2015

AREANUMBER OF

PROJECTSNUMBER OF ACTIVITIES

GRANT AMOUNT

TOTAL NOX

REDUCTIONS (Tons)

COST PER TON OF NOX

REDUCED

Austin (AUS) 5 143 $11,815,913 123 $96,274

Dallas/Fort Worth (DFW) 5 108 $9,147,383 182 $50,355

Houston/Galveston/Brazoria (HGB) 6 140 $10,447,930 96 $108,484

TOTAL 16 391 $31,411,226 401 $78,391


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 Projects Awarded by Fuel Type2012-August 2015

FUEL TYPENUMBER

OFPROJECTS

NUMBER OF

ACTIVITIES

GRANTAMOUNT

TOTAL NOX

REDUCTIONS (Tons)

COST PER TON OF NOX

REDUCED

Compressed Natural Gas (CNG) 82 770 $32,553,300 1,179 $27,942

Liquified Natural Gas (LNG) 10 123 $6,399,000 204 $31,473

LNG/Diesel 10 98 $7,428,000 261 $28,497

TOTAL 102 991 $46,380,300 1,645 $28,203


TNGVGP Projects Awarded by Area2012-2015

AREANUMBER

OFPROJECTS

NUMBER OF

ACTIVITIES

GRANTAMOUNT

TOTAL NOX

REDUCTIONS (Tons)

COST PER TON OF NOX

REDUCED

Dallas/Fort Worth (DFW) 44 420 $14,047,417 568 $24,722

Houston/Galveston/Brazoria (HGB) 23 281 $13,610,304 380 $35,781

Inside Clean Transportation Triangle (CTT) 21 155 $12,643,902 432 $29,282

San Antonio (SAT) 4 65 $2,703,326 114 $23,648

Austin (AUS) 4 33 $1,975,141 78 $25,452

Tyler/Longview (TYL) 2 12 $433,625 23 $18,672

Beaumont/Port Arthur (BPA) 1 3 $71,321 4 $19,448El Paso (ELP) 2 20 $528,000 35 $15,115

Corpus Christi (CC) 1 2 $314,567 7 $42,725

Victoria 0 0 $52,697 3 $17,474

TOTAL 102 991 $46,380,300 1,645 $28,203

Note - The grant amounts and tons of NOX reduced are apportioned among all areas where a grantee has indicated that a grant-

funded vehicle or equipment will be operated for an estimated percentage of its annual use, while the number of projects and

activities are listed according to the primary area of use designated for each project and activity. The number of projects and

activities in the Victoria area are listed as zero because none of the projects have Victoria County as a primary area of use, even

though there are grant funding and NOx reductions apportioned to that area.


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 Projects Awarded Summary2012-August 2015

• CNG Projects: 19

− 6 in Dallas-Fort Worth

− 3 in Houston-Galveston-Brazoria

− 3 in San Antonio

− 2 in Austin

− 5 in other areas

• CNG + LNG Projects: 10


− 3 in Houston

− 3 in other areas

Total Funds Awarded: $9,659,616


Alternative Fueling Facilities Program (AFFP)

Provides grants for facilities to dispense alternative fuels

• Eligible Alternative Fuels include: Biodiesel, Hydrogen, Methanol (85% by volume), 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 Projects Awarded Summary2012-August 2015

• CNG Projects: 15

− 8 in Houston-Galveston-Brazoria


• Electricity Projects: 5

– 2 in Houston-Galveston-Brazoria

– 3 in Dallas-Fort Worth

• CNG + LNG Projects: 1

− Houston-Galveston-Brazoria

• CNG + Electricity Projects: 1

− Houston-Galveston-Brazoria



Texas Clean School Bus Program

The Texas Clean School Bus Program is a

comprehensive program designed to reduce particulate matter 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 Summary of Projects Awarded

2008-August 2015

• Retrofit Projects: 7,103 school buses

• Total Funds Awarded: $29,112,164

− $24,651,637 in TERP Funds

− $4,460,527 in Federal Funds


New Technology Implementation Grants Program(NTIG)

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.


NTIG Projects Awarded Summary2010-August 2015

• Electricity Storage Projects: 3

• New Technology Projects: 1



TERP Grant FundingFY 2016 – 2017

PROGRAM

Approximate Funding Amounts per Fiscal Year

(FY 2016 – 2017)

Diesel Emissions Reduction Incentive Program

• Emissions Reduction Incentive Grants

• Rebate Grants

$61.7 M

Texas Natural Gas Vehicle Grant Program $18.9 M

Texas Clean Fleet Program $5.9 M

Texas Clean School Bus Program $4.7 M

Clean Transportation Triangle $5.9 M

Alternative Fueling Facilities Program $5.9 M

New Technology Implementation Grants $3.5 M

Drayage Truck Incentive Program $2.3 M


TERP Grant RoundsFY 2016

PROGRAMApproximate Grant Round

Opening Date

Emissions Reduction Incentive Grants Closes Feb. 2, 2016

Texas Natural Gas Vehicle Grant Program December 2015

Texas Clean Fleet Program Closed November 10, 2015

Texas Clean School Bus Program Closed December 2, 2015

Clean Transportation Triangle December 2015

Alternative Fueling Facilities Program December 2015

New Technology Implementation Grants Closes Mid-Feb, 2016


Promotion and Outreach

• Grant Workshops

• Presentations and Conference Booths

• TERP Web site and email listserv

• Media releases


Contact Information

• Web site: www.terpgrants.org

• E-mail: [email protected]

• Toll Free: 800-919-TERP (8377)

Documents

Texas Emissions Reduction Plan (TERP) · 15/07/2012 · (DTIP) Provides incentives for the replacement of older drayage trucks operating at seaports and Class I rail yards in areas