Texas Emissions Reduction Plan TERP 2017 Texas Energy

Texas Emissions Reduction Plan (TERP) 2017 Texas Energy Summit Everything You Wanted to Know About Financing Energy or Air Quality Projects Air Quality Division • October 2017 • Page

What is TERP? • Provides grants to reduce nitrogen oxides (NOX) emissions from mobile sources • Supports programs to encourage the use of alternative fuels for transportation in Texas • Helps to keep the air in Texas clean Air Quality Division • October 2017 • Page 2

TERP Grant Programs Diesel Emissions Reduction Incentive (DERI) Program Emissions Reduction Incentive Grants (ERIG) Program Rebate Grants Program Seaport and Rail Yard (SPRY) Program Texas Clean School Bus Program Texas Clean Fleet Program (TCFP) Texas Natural Gas Vehicle Grant Program (TNGVGP) Alternative Fueling Facilities Program (AFFP) New Technology Implementation Grant (NTIG) Program Light-Duty Motor Vehicle Purchase or Lease Incentive (LDPLI) Air Quality Division • October 2017 • Page 3

Texas Clean Fleet Program Provides incentives to owners of large fleets in Texas to replace diesel vehicles with alternative fuel and hybrid vehicles. • This program allows for replacement of light-duty and heavy-duty diesel vehicles (up to 80% of the cost) • Applicants must own at least 75 vehicles and operate them in Texas. • Applicants must apply to replace at least 10 vehicles. • Replacement vehicles must be hybrid vehicles or vehicles fueled by: • • • Electricity, Compressed Natural Gas (CNG), Liquefied Natural Gas (LNG), Hydrogen, Propane (LPG), or Methanol (85% by volume) Air Quality Division • October 2017 • Page 4

Texas Natural Gas Vehicle Grant Program Provides grants for the replacement and repower of heavy-duty and medium-duty vehicles and engines with heavy-duty and medium-duty CNG, LNG, or LPG vehicles and engines • Applications are submitted directly by applicants. • Awards are made on a first-come, first-served basis. • The new engine must be certified to the applicable federal emissions standard. Air Quality Division • October 2017 • Page 5

Alternative Fueling Facilities Program Provides grants for fueling facilities for alternative fuel in the Clean Transportation Zone (CTZ). • Build the foundation for a self-sustaining market for alternative fuels in Texas • For electric charging, funds up to 50% of the cost, NTE $600, 000 • Eligible Alternative Fuels include: – Natural gas (CNG and/or LNG) – Biodiesel (at least 20% by volume) – Methanol (at least 85% by volume) – Propane – Hydrogen – Electricity Air Quality Division • October 2017 • Page 6

Clean Transportation Zone Air Quality Division • October 2017 • Page 7

New Technology Implementation Grant Program Offset the cost of the implementation of existing technologies that reduce the emissions from facilities and other stationary sources in Texas. • Eligible categories include: • Electricity Storage Projects Related to Renewable Energy; • New Technology Projects; • Advanced Clean Energy Projects; and • Oil and Gas Upstream and Midstream Emissions Reduction Projects Air Quality Division • October 2017 • Page 8

Light-Duty Motor Vehicle Purchase or Lease Incentive Program Provides rebates statewide for purchase of new light-duty vehicles (less than 10, 000 lbs) powered by CNG, LPG, or Electric Drive • A list of qualifying vehicles will be available on the TERP website. • Incentives are limited to 1, 000 CNG and LPG powered vehicles and 2, 000 electric drive vehicles per fiscal biennium • Receive up to $5, 000 for new CNG or LPG powered vehicles • Receive up to $2, 500 for new electric drive vehicles • The new vehicle must be registered and operated in Texas for a period of one year. Air Quality Division • October 2017 • Page 9

FY 18 -19 Available Funding TERP Grant Program Funds Available Alternative Fueling Facilities Program $6 Million (FY 2018 only) Rebate Grants $10 Million Texas Clean School Bus Program $6. 1 Million Texas Natural Gas Vehicle Grant Program $15. 4 Million New Technology Implementation Grants $4. 6 Million Light-Duty Motor Vehicle Purchase or $7. 7 Million Lease Incentive Emissions Reduction Incentive Grants $62. 3 Million Texas Clean Fleet Program $7. 7 Million Seaport and Rail Yard Areas $9. 2 Million Air Quality Division • October 2017 • Page 10

TERP E-Mail Updates www. terpgrants. org Air Quality Division • October 2017 • Page 11

TERP Contact Information • Website: www. terpgrants. org • E-mail: terp@tceq. texas. gov • Toll Free: 800 -919 -TERP (8377) We’re Here to Help! Air Quality Division • October 2017 • Page 12