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Air Quality Division • January 2018 • Page 1 Texas Emissions Reduction Plan (TERP) Air Quality Division • August 2018

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Air Quality Division • January 2018 • Page 1

Texas Emissions Reduction Plan (TERP)

Air Quality Division • August 2018

Air Quality Division • January 2018 • Page 2

What does TERP do?

• Provides grants to reduce nitrogen oxides

(NOx) emissions from mobile sources to:

o Eligible individuals, businesses, districts, non-profits,

and governments, that own and operate eligible

vehicles and equipment in Texas.

• Supports programs to encourage the use of

alternative fuels for transportation in Texas.

• Helps to keep the air in Texas clean.

Air Quality Division • January 2018 • Page 3

Primary Goal is to Reduce NOX

Ground level ozone is created by chemical reactions of NOX and volatile organic compounds (VOC) in the presence of sunlight.

NOX + VOC + OZONE

Air Quality Division • January 2018 • Page 4

Mobile Sources of NOx

Air Quality Division • January 2018 • Page 5

TERP Grant Programs

Diesel Emissions Reduction Incentive (DERI) Program

Emissions Reduction Incentive Grants (ERIG) Program

Rebate Grants Program

Third-Party Grants Program

Texas Clean Fleet Program (TCFP)

Texas Natural Gas Vehicle Grant Program (TNGVGP)

Seaport and Rail Yard Areas Emissions Reduction (SPRY) Program

Texas Clean School Bus (TCSB) Program

Light-Duty Motor Vehicle Purchase or Lease Incentive (LDPLI) Program

Alternative Fueling Facilities Program (AFFP)

New Technology Implementation Grant (NTIG) Program

Port Authorities Studies & Pilot Program

Air Quality Division • January 2018 • Page 6

Diesel Emissions Reduction Incentive Program(DERI)

Air Quality Division • January 2018 • Page 7

Air Quality Division • January 2018 • Page 8

Emissions Reduction Incentive Grants (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 projects include the replacement, upgrade, or new purchase of:

• On-road vehicles with a gross vehicle weight rating (GVWR) of 8,501 pounds or more; and

• Non-road equipment, marine vessels, locomotives, and stationary equipment powered by an engine rated at 25 horsepower or greater;

• Diesel, alternative fuel, and hybrid powered vehicles and equipment;

• idle reduction infrastructure; and

• refueling infrastructure.

Air Quality Division • January 2018 • Page 9

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 – quicker selection process.

• On-road diesel vehicles and equipment may be replaced with diesel, natural gas, propane, or electric powered vehicles.

Air Quality Division • January 2018 • Page 10

DERI by Emissions Source2001-August 2018

Non-Road9,226

On-Road9,043

Marine507

Stationary125 Locomotive

302

NUMBER OF ACTIVITIES

Non-Road, $387,539,114

On-Road, $437,337,981

Marine, $49,052,583

Stationary, $13,626,940 Locomotive,

$214,675,457

GRANT AMOUNT

Non-Road48,860

On-Road60,727

Marine15,205

Stationary4,340 Locomotive

50,746

TOTAL NOX REDUCED (TONS)

Air Quality Division • January 2018 • Page 11

DERI by Area2001-August 2018

DFW7,490

HGB7,170

AUS1,590

SA1,591

BPA535

TYL310

EL…

CC242

VIC97

NUMBER OF ACTIVITIES

DFW63,308

HGB78,704

AUS10,273

SA10,844 BPA

8,935TYL4,999

ELP736

CC1,522

VIC<1%

TOTAL NOX REDUCED (TONS)

DFW$381,907,22

7

HGB$455,054,21

9

AUS$84,492,492

SA$82,951,051

BPA$47,690,113

TYL$31,435,756

ELP$3,570,748

CC$9,834,936

VIC<1%

GRANT AMOUNT

Note: The Number of Projects and Number of Activities are based on the primary area of a project. The Grant Amount, Total NOX

Reductions, and Cost per Ton of NOX Reduced are apportioned to all areas of use associated with a project. List does not include projects funded and subsequently canceled.

Air Quality Division • January 2018 • Page 12

Other Grant Programs

Air Quality Division • January 2018 • Page 13

Texas Clean Fleet Program (TCFP)

Air Quality Division • January 2018 • Page 14

TCFP Eligible AreasClean Transportation Zone

Air Quality Division • January 2018 • Page 15

TCFP

Provides incentives to owners of large fleets in

Texas to replace diesel vehicles with alternative fuel and hybrid vehicles.

• This program allows for the 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 10 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).

• Grant selections are competitive, based on cost-per-ton of NOX reduced.

Air Quality Division • January 2018 • Page 16

TCFP Projects Awarded by Fuel Type2010-August 2018

CNG257

Diesel Hybrid55

LPG314

NUMBER OF ACTIVITIES

CNG, $29,547,488

Diesel Hybrid, $1,999,197

LPG, $24,363,817

GRANT AMOUNT

Note: CNG=Compressed Natural Gas; LPG= Liquified Petroleum Gas

Air Quality Division • January 2018 • Page 17

TCFP Projects Awarded by Area2010-August 2018

AUS163

BPA17

DFW188

HGB233

SA25

NUMBER OF ACTIVITIES

AUS139

BPA8

DFW246

HGB189

SA51

TOTAL NOX REDUCED (TONS)

AUS$12,886,133

BPA$912,608

DFW$16,315,047

HGB$20,742,783

SA$5,053,933

GRANT AMOUNT

Air Quality Division • January 2018 • Page 18

Texas Natural Gas Vehicle Grant Program (TNGVGP)

Air Quality Division • January 2018 • Page 19

TNGVGP

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 on a first-come, first-served basis.

• The new engine must be certified to the applicable federal emissions standard.

• The project must result in a reduction in NOX emissions of at least 25% as compared to the original engine.

• The new engine must be certified to emit no more than 0.2 grams per brake horsepower-hour of NOX.

• Grants may cover up to 90% of the incremental cost of the natural gas vehicle or engine.

Air Quality Division • January 2018 • Page 20

TNGVGP Eligible AreasClean Transportation Zone

Air Quality Division • January 2018 • Page 21

TNGVGP Projects Awarded by Area2012-August 2018

AUS52

BPA2

CC2

DFW422

ELP27

HGB, 254

SA, 39TYL, 12

VIC, 0

CTZ, 129

NUMBER OF ACTIVITIES

AUS82

BPA6

CC11

DFW515

ELP41

HGB298

SA105

TYL31

VIC3

CTZ403

TOTAL NOX REDUCED (TONS)

AUS$2,547,863

BPA$90,379

CC$327,406

DFW$14,030,888

ELP$795,945

HGB$10,365,466

SA$2,035,237

TYL$631,607

VIC$55,341

CTZ$11,516,216

GRANT AMOUNT

Air Quality Division • January 2018 • Page 22

TNGVGP Projects Awarded by Fuel Type2012-August 2018

CNG82%

LNG7%

LNG/Diesel8%

LPG3%

NUMBER OF PROJECTS BY FUEL TYPE

AUS5%

BPA1%

CC2%

DFW47%

ELP<1%

HGB18%

SA4%

TYL2%

VIC0%

CTZ17%

NUMBER OF PROJECTS BY AREA

Note: CNG=Compressed Natural Gas; LPG= Liquified Petroleum Gas

Air Quality Division • January 2018 • Page 23

Seaport and Railyard Area Emissions Reduction Program (SPRY)

Air Quality Division • January 2018 • Page 24

SPRY

Provides incentives for the replacement and repower of older

drayage trucks and cargo-handling equipment operating at seaports and Class I railyards in areas of Texas designated as nonattainment on a first-come, first-served basis.

• Formerly known as the Drayage Truck Incentive Program (DTIP).

• 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 and cargo handling equipment eligible for replacement or repower under this program include:

o heavy-duty on-road vehicles with a gross vehicle weight rating (GVWR) over 26,000 pounds;

o non-road yard trucks; and

o other cargo handling equipment.

Air Quality Division • January 2018 • Page 25

SPRY Eligible CountiesNonattainment Areas of Texas

Air Quality Division • January 2018 • Page 26

SPRY Projects Awarded by Area 2015-August 2018

AREA

NUMBER

OF

PROJECTS

NUMBER

OF

ACTIVITIES

GRANT

AMOUNT

TOTAL NOX

REDUCED

(TONS)

COST PER

TON OF NOX

REDUCED

Houston/Galveston/Brazoria 14 64 $5,598,155 331.27 16,899

Dallas/Fort Worth 2 11 $501,524 25.10 19,983

El Paso 1 2 $109,745 5.49 20,000

TOTAL 17 77 $6,209,424 361.85 17,160

Air Quality Division • January 2018 • Page 27

Texas Clean School Bus (TCSB) Program

Air Quality Division • January 2018 • Page 28

TCSB

The Texas Clean School Bus Program is a statewide

program designed to reduce diesel exhaust emissions from school buses.

• This program focuses on the reduction of pollutants emitted in diesel exhaust by retrofitting or replacing older school buses.

• Eligible projects may include:

o retrofitting school buses with diesel oxidation catalysts, diesel particulate filters, or other emissions-reducing add-on equipment; and

o replacing pre-2007 diesel school buses with school buses of the current or previous model year (at the time the application is submitted).

Air Quality Division • January 2018 • Page 29

Texas Clean School Bus Summary of Retrofit Activities Awarded1

2008-August 2017

• Number of Retrofit Activities Awarded: 7,560

• Total TERP Funds Awarded: $29,864,522

• Total Federal Funds Awarded: $4,694,101

• Grand Total of Funds Awarded: $34,558,623

1The replacement project category will not be implemented until FY18.

Air Quality Division • January 2018 • Page 30

Texas Clean School Bus Summary of Replacement Projects Awarded by Area

August 2018

AREA

NUMBER OF

PROJECTS

NUMBER OF

ACTIVITIES

GRANT

AMOUNT

Austin (AUS) 2 10 $478,500

Beaumont/Port Arthur (BPA) 1 1 $50,000

Dallas/Fort Worth (DFW) 2 10 $527,500

Houston/Galveston/Brazoria (HGB) 1 5 $275,000

Other 10 35 $1,645,000

TOTAL 16 61 $2,976,000

Air Quality Division • January 2018 • Page 31

Light-Duty Motor Vehicle Purchase or Lease Incentive Program (LDPLIP)

Air Quality Division • January 2018 • Page 32

LDPLI

Provides rebate-type grants for certain light-duty

vehicles.

• Up to 1,000 CNG and LPG vehicles and 2,000 electric plug-in light-duty vehicles may be funded.

• Plug-in hybrid-electric vehicles are included.

• Rebates of up to $5,000 per vehicle are available (first-come, first-served).

• The TCEQ maintains a list of qualifying vehicles.

• The new vehicle must be registered and operated in Texas for a period of at least one year.

• Vehicles must be less than 10,000 pounds GVWR.

Air Quality Division • January 2018 • Page 33

Alternative Fueling Facilities Program (AFFP)

Air Quality Division • January 2018 • Page 34

AFFP

Provides grants for the construction or expansion of alternative fuel and natural gas facilities in the Clean Transportation Zone.

• Includes the program formerly known as the Clean Transportation Triangle Program (CTT).

• Eligible Alternative Fuels include: Biodiesel, Hydrogen, Methanol (85% by volume), Natural Gas (CNG and/or LNG), Propane (LPG), and Electricity.

• Grant amounts will be:

o $400,000 for a CNG or LNG station;

o $600,000 for a station providing both CNG and LNG; or

o the lesser of 50% of the eligible costs or $600,000 for alternative fuel facilities other than natural gas.

Air Quality Division • January 2018 • Page 35

AFFP Eligible AreasClean Transportation Zone

Air Quality Division • January 2018 • Page 36

AFFP Projects Awarded by Area 2012-August 20181

1Includes Clean Transportation Triangle (CTT) Projects.2Does not include projects funded and subsequently canceled.

AREA

NUMBER OF

PROJECTS2 GRANT AMOUNT

Houston/Galveston/Brazoria (HGB) 56 $9,731,055.84

Dallas/Fort Worth (DFW) 53 $8,003,071.69

Austin (AUS) 22 $2,808,693.97

San Antonio (SA) 9 $1,504,764.28

Tyler/Longview (TYL) 2 $800,000.00

El Paso (ELP) 1 $600,000.00

Victoria (VIC) 1 $36,056.09

Other Clean Transportation Zone (CTZ) Counties 5 $1,618,953.40

TOTAL 149 $25,102,595.27

Air Quality Division • January 2018 • Page 37

AFFP Projects Awarded by Fuel Type 2012-August 2018

Note: Includes Clean Transportation Triangle (CTT) Projects; CNG=Compressed Natural Gas; EC=Electrical Charging Station; LNG=Liquified Natural Gas.

Biodiesel, 6

Biodiesel, EC, 5

CNG, 43CNG, EC, 1

CNG, LNG, 4

EC, 83

Propane, 7

NUMBER OF PROJECTS

Biodiesel, $1,070,624

Biodiesel, EC, $1,493,325

CNG, $17,303,442

CNG, EC, $570,005

CNG, LNG, $1,700,000

EC, $2,632,248

Propane, $332,952

GRANT AMOUNT

Air Quality Division • January 2018 • Page 38

AFFP Projects Awarded by Fuel Type 2012-August 2018

Biodiesel4%

Biodiesel, EC3%

CNG29%

CNG, EC<1%

CNG, LNG3%

EC56%

Propane5%

NUMBER OF PROJECTS

Biodiesel4%

Biodiesel, EC6%

CNG69%

CNG, EC2%

CNG, LNG7%

EC11%

Propane1%

GRANT AMOUNT

Note: Includes Clean Transportation Triangle (CTT) Projects; CNG=Compressed Natural Gas; EC=Electrical Charging Station; LNG=Liquified Natural Gas.

Air Quality Division • January 2018 • Page 39

New Technology Implementation Grants Program (NTIG)

Air Quality Division • January 2018 • Page 40

NTIG

Provides grants to offset cost of the

implementation of existing technologies that reduce emissions from facilities and other stationary sources in Texas.

Eligible categories include:

− Electricity Storage;

− New Technology;

− Advanced Clean Energy; and

− Upstream and Midstream Oil and Gas Emissions Reductions.

Air Quality Division • January 2018 • Page 41

NTIG Project List2010-August 2018

Note: Does not include projects funded and subsequently canceled.

Electricity Storage Projects

AREANUMBER OF

PROJECTSGRANT AMOUNT

Austin 2 $2,500,000

Houston-Galveston- Brazoria 1 $2,044,145

San Antonio 1 $3,000,000

Other 2 $2,011,875

TOTAL 6 $9,556,020

New Technology Projects

AREANUMBER OF

PROJECTSGRANT AMOUNT

Dallas-Fort Worth 1 $543,745

San Antonio 1 $500,000

TOTAL 2 $1,043,745

Air Quality Division • January 2018 • Page 42

Port Authority Studies and Pilot Programs

Air Quality Division • January 2018 • Page 43

Port Authority Studies and Pilot Programs

A new grant program to fund studies and pilot programs for incentives for port authorities in nonattainment areas and affected counties to encourage cargo movement that reduces emissions of nitrogen oxides (NOx) and particulate matter (PM).

Air Quality Division • January 2018 • Page 44

TERP Funding and ImplementationFY 2018 – 2019

ProgramFY 18

Funding

FY 19

FundingOpen/ Close Dates

Diesel Emissions Reduction Incentive• Emissions Reduction Incentive Grants

• Rebate Grants

$33.2M $39.2M Ended August 15, 2018

Texas Natural Gas Vehicle Grants Program $7.7M $7.7MOpen through May 31, 2019,

or until all funds awarded

Seaport and Rail Yard Areas Emissions

Reduction Program$4.6M $4.6M Opening Fall 2018

Texas Clean Fleet Program $3.9M $3.9M Opening Fall 2018

Light-Duty Motor Vehicle Purchase or Lease

Incentive Program$3.8M $3.8M

Open through May 31, 2019,

or until all funds awarded

Texas Clean School Bus Program $3.1M $3.1M Ended September, 2019

Alternative Fueling Facilities Program $6M $0 Ended April, 2018

New Technology Implementation Grants $2.3M $2.3MOpen through December 14,

2018

Air Quality Division • January 2018 • Page 45

Sign-up for Updates!

Air Quality Division • January 2018 • Page 46

TERP Contact Information

• Website: www.terpgrants.org

• E-mail: [email protected]

• Toll Free: 800-919-TERP (8377)

We are here to help! Call us!