Texas Emissions Reduction Plan TERP Helping to Keep

Texas Emissions Reduction Plan (TERP) Helping to Keep the Air Clean in Texas Air Quality Division • April 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 • April 2017 • Page 2

Why Reduce NOX Emissions? Ground level ozone is created by chemical reactions of NOX and volatile organic compounds (VOC) in the presence of sunlight. NOX + VOC + Sunlight = OZONE Air Quality Division • April 2017 • Page 3

Diesel Emissions. Non-Attainment Reduction Incentive Program Areas Eligible Counties for Fiscal Year 2016 -2017 & Eligible Counties Air Quality Division • April 2017 • Page 4

Mobile Sources of NOX Air Quality Division • April 2017 • Page 5

NOX Emissions by Source Dallas-Fort Worth Area Air Quality Division • April 2017 • Page 6

NOX Emissions by Source Houston-Galveston-Brazoria Area Air Quality Division • April 2017 • Page 7

How Does TERP Reduce NOX Emissions from Mobile Sources? • Through the early retirement of heavy-duty vehicles and pieces of equipment, particularly those with large diesel engines • By replacing older engines with newer models with more stringent federal emission standards for NOX and other pollutants Air Quality Division • April 2017 • Page 8

Meet Adrian, TERP Grantee • Adrian owns a small trucking company in Houston, Texas. • Adrian owned and operated a 1989 Peterbilt dump truck. • He operates 100% of the time in the Houston area hauling sand gravel between job sites. Air Quality Division • April 2017 • Page 9

Adrian’s TERP Story Adrian attended the Houston Trucking Show where he met TERP staff members and found out about the Emissions Reduction Incentive Grants (ERIG) program. Air Quality Division • April 2017 • Page 10

Adrian’s TERP Story • Adrian received an e-mail from TERP announcing the opening of an ERIG round. • Adrian attended an ERIG application workshop in Houston led by TERP staff. • Armed with good information, Adrian began to complete the ERIG application for replacement projects. • TERP staff was readily available to answer Adrian’s questions. Air Quality Division • April 2017 • Page 11

Adrian’s TERP Story After comparing the emissions of the vehicle being replaced and the emissions of the vehicle being purchased, Adrian found it hard to believe that not only would TERP help him replace his old truck, the new truck would emit 98% fewer emissions than his old one. 98% Cleaner Air Quality Division • April 2017 • Page 12

Adrian’s TERP Story New Vehicle Cost = $154, 000 Maximum Grant Amount at 80% of the Cost to Replace the Vehicle Adrian Requested: $123, 200 $120, 000 Air Quality Division • April 2017 • Page 13

Adrian’s TERP Story Adrian drove his truck to his local mechanic who certified that the diesel engine had at least seven years of useful life left. Air Quality Division • April 2017 • Page 14

Adrian’s TERP Story With the application deadline drawing near, Adrian put the finishing touches on his application. Just to be safe, Adrian handdelivered his application to TERP. Air Quality Division • April 2017 • Page 15

Adrian’s TERP Story Three months later, Adrian was notified that his project was selected for award! Air Quality Division • April 2017 • Page 16

Adrian’s TERP Story • Within a few weeks, Adrian got a contract from the TCEQ in the mail. • Adrian agreed to: – decommission his old truck and engine; – operate the grant-funded vehicle 100% of the time in the Houston area for the next seven years; and – report the usage of the grant-funded vehicle to the TCEQ on an annual basis for the next seven years. Air Quality Division • April 2017 • Page 17

Adrian’s TERP Story Adrian was reimbursed $120, 000 Adrian was left with a balance of only $34, 000 Air Quality Division • April 2017 • Page 18

Adrian’s TERP Story After being reimbursed, and as a final step in the replacement process, Adrian destroyed his old truck. Air Quality Division • April 2017 • Page 19

Be Like Adrian! Is there a TERP Grant for You? Diesel Emissions Reduction Incentive (DERI) Program Emissions Reduction Incentive Grants (ERIG) Program Rebate Grants Program Third-Party Grants 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 New Technology Implementation Grant (NTIG) Program Air Quality Division • April 2017 • Page 20

DERI-ERIG Air Quality Division • April 2017 • Page 21

DERI-ERIG A competitive grant program that provides incentives to repower 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. Air Quality Division • April 2017 • Page 22

DERI-Rebate Grants Air Quality Division • April 2017 • Page 23

DERI-Rebate Grants 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 - quicker selection process • On-road diesel vehicles and equipment may be replaced with diesel, natural gas, propane, or electric powered vehicles Air Quality Division • April 2017 • Page 24

DTIP Air Quality Division • April 2017 • Page 25

DTIP Provides incentives for the replacement of older drayage trucks and cargo-handling equipment operating at seaports and Class I railyards in areas of Texas designated as nonattainment on a firstcome, first-served basis. • • • Eligible applicants must operate eligible seaport terminals and Class I intermodal rail yards located in the state's air quality nonattainment areas. Other participating facilities of the Houston Ship Channel Security District (HSCSD) will be considered. Models of drayage trucks eligible for replacement under this program include: – heavy-duty on-road vehicle with a gross vehicle weight rating (GVWR) over 26, 000 pounds; – non-road yard truck; and – other cargo handling equipment. Air Quality Division • April 2017 • Page 26

TCFP Air Quality Division • April 2017 • Page 27

TCFP 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 heavyduty diesel vehicles. • Applicants must own at least 75 vehicles and operate those vehicles in Texas. • Applicants must apply to replace at least 20 vehicles. • Replacement vehicles must be hybrid vehicles or vehicles fueled by one of the following alternative fuels: Electricity, Compressed Natural Gas (CNG), Liquefied Natural Gas (LNG), Hydrogen, Propane (LPG), or methanol (85% by volume) Air Quality Division • April 2017 • Page 28

TNGVGP Air Quality Division • April 2017 • Page 29

TNGVGP Provides grants for the replacement and repower of heavy-duty and medium-duty vehicles and engines with heavy-duty and medium-duty compressed or liquefied natural gas (CNG or LNG) vehicles and engines • Applications are submitted through Participating Dealers. • Awards are made on a first-come, first-served basis. • The new engine must be certified to emit no more than 0. 2 grams per brake horsepower-hour of NOX. Air Quality Division • April 2017 • Page 30

CTT/AFFP Air Quality Division • April 2017 • Page 31

CTT/AFFP • CTT provides grants for the construction or reconstruction of facilities to dispense natural gas. – Facilities must be in the nonattainment areas, affected counties, or counties along and between the interstate highways connecting Dallas-Fort Worth, Houston, and San Antonio. • AFFP provides grants for facilities to dispense alternative fuels. – – Grant-funded facilities must be located in the nonattainment areas of Texas. Eligible Alternative Fuels include: Biodiesel, Hydrogen, Methanol (85% by volume), Natural Gas, Propane, and Electricity. Air Quality Division • April 2017 • Page 32

Clean Transportation Triangle Air Quality Division • April 2017 • Page 33

Texas Clean School Bus Program Air Quality Division • April 2017 • Page 34

Texas Clean School Bus Program The Texas Clean School Bus Program is a statewide program designed to reduce diesel exhaust emissions from school buses. • Projects may include retrofitting school buses with diesel oxidation catalysts, diesel particulate filters, and emissions-reducing add-on equipment. • This program focuses on the reduction of particulate matter (PM 10) in diesel exhaust by retrofitting older school buses. Air Quality Division • April 2017 • Page 35

NTIG SO 2 scrubbers installed at power plant in Texas Air Quality Division • April 2017 • Page 36

NTIG The primary purpose of this grant program is to 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; • New Technology; and • Advanced Clean Energy. Air Quality Division • April 2017 • Page 37

How Are We Doing? DERI Funds Awarded by Area September 2001 -August 2016 VIC CC [PERCENTAGE] <[PERCENTAG E] ELP <1% TYL [PERC ENTA GE] BPA [PERCENTAGE ] DFW [PER CENT AGE] SAT [PERCENTAGE ] AUS [PERCENTAGE ] HGB [PER CENT AGE] Air Quality Division • April 2017 • Page 38

How Are We Doing? DERI Funds Awarded by Emission Source September 2001 -August 2016 [CATEGORY NAME] [PERCENTAGE] Locomotive 21% [CATEGORY NAME] [PERCENTAGE] On-Road 38% Air Quality Division • April 2017 • Page 39

FY 16 -17 Available Funding Program Funds Available Emissions Reduction Incentive Grants $51. 7 Million Texas Natural Gas Vehicle Grant Program $37. 8 Million Texas Clean Fleet Program $5. 9 Million Texas Clean School Bus Program $5. 9 Million Drayage Truck Incentive Program $4. 7 Million Rebate Grants $10 Million Clean Transportation Triangle $5. 9 Million Alternative Fueling Facilities Program $5. 9 Million New Technology Implementation Grants $3. 5 Million Air Quality Division • April 2017 • Page 40

TERP E-Mail Updates www. terpgrants. org Air Quality Division • April 2017 • Page 41

TERP Contact Information • Website: www. terpgrants. org • E-mail: terp@tceq. texas. gov • Toll Free: 800 -919 -TERP (8377) Air Quality Division • April 2017 • Page 42