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- Program Description
- Program to date
- Eligibility Criteria
- Program Implementation
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- 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)
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- 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
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- 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
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- 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
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- 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
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- 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
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- 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
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- 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
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- www.terpgrants.org
- terp@tceq.state.tx.us
- (800) 919-TERP (8377)
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