1	Texas Emissions Reduction Plan (TERP)
2	TERP Presentation Program Description Program to date Eligibility Criteria Program Implementation
3	Program Description TERP was created in 2001 by SB 5 Amended in 2003 by HB 1365, and, in 2005 by HB 2481 and HB 3469 Provides incentives for projects that reduce nitrogen oxides (NOx)
4	Map of TERP Eligible Counties
5	Program to date TERP 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 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 $10 inspection fee surcharge for commercial motor vehicles
6	Program to date, cont. Results to Date Approximately 700 projects funded Over $300 million expended Over 70,000 tons of projected NOx reductions approximately 34 tons/day $4,600 average cost to reduce one ton of NOx
7	Eligibility Criteria Types of Projects: New Purchases and Leases (fleet expansion) Replacement of old vehicles and equipment with newer models Repower existing vehicles and equipment (engine replacement) Retrofit and Add-On devices to vehicles and equipment Infrastructure for idle-reduction or electrification systems, and qualifying fuel infrastructure
8	Eligibility Criteria, cont. 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 On-vehicle electrification and idle reduction infrastructure On-site electrification and idle reduction infrastructure Qualifying fuel infrastructure
9	Eligibility Criteria, cont. Activity must be at least 25% cleaner for NOx than baseline vehicle or equipment Grant request must not exceed cost/ton of $7,000/ton ($4,500 for locomotive and marine) Grant request may not exceed incremental cost of activity Funded equipment must operate minimum 75% in the eligible counties for a minimum of 5 years Replacement projects are limited to 80% of eligible incremental costs Engines and retrofit/add-on devices must be EPA or CARB certified/verified
10	TERP and Alt. Fuels TERP incentives are fuel neutral CNG on-road engines can be certified to either a diesel standard or an otto-cycle standard For alt-fuel new purchase projects, the baseline for comparison is the federal standard that applies to the alt-fuel engine Fuel infrastructure projects must be able so show a verifiable emission reduction (i.e., fleet change-over to alt fuel, which results in reductions) Bio-Diesel does not, by itself, achieve a reduction in NOx TxLED projects are not eligible; the emission reductions are already counted
11	Program Implementation Request for Applications Application reviews Selection committee list Agency management decisions Award contracts Grantees complete activities; request reimbursement Grantees report usage of funded equipment for activity life
12	Contact Information www.terpgrants.org terp@tceq.state.tx.us (800) 919-TERP (8377)