Texas Emissions Reduction Plan (TERP) • Air Quality Division • December 2015 Air Quality Division • December 2015 • Page 1
What does TERP do? The Texas Emissions Reduction Plan (TERP) program provides financial incentives to upgrade or replace older heavy-duty vehicles, non-road equipment, locomotives, marine vessels, and stationary equipment to reduce nitrogen oxides (NO x ) emissions in eligible areas. The TERP also supports programs to encourage the use of alternative fuels for transportation in Texas. Air Quality Division • December 2015 • Page 2
Primary Goal is to Reduce NO X TERP provides financial incentives for projects that reduce NO X emissions in eligible areas. NO X + VOC + Ozone NO X emissions combine with volatile organic compounds (VOC) in the presence of sunlight to form ground level ozone (smog). Air Quality Division • December 2015 • Page 3
TERP and the Ozone Standards • TERP grant programs are a strategy in the State Implementation Plan (SIP). • TERP emissions reductions have recently been used as weight of evidence in the Attainment Demonstration SIP. • TERP is also intended to help air quality planning areas remain in attainment. Air Quality Division • December 2015 • Page 4
Mobile Sources of NO x Air Quality Division • December 2015 • Page 5
TERP Grant Programs • Diesel Emissions Reduction Incentive (DERI) 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 (TCSBP) • New Technology Implementation Grants (NTIG) Air Quality Division • December 2015 • Page 6
Diesel Emissions Reduction Incentive Program (DERI) Air Quality Division • December 2015 • Page 7
Air Quality Division • December 2015 • Page 8
Emissions Reduction Incentive Grants Program (ERIG) A competitive grant program that provides incentives to upgrade 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 • December 2015 • 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 • On-road diesel vehicles may be replaced with diesel, natural gas, propane, or electric powered vehicles Air Quality Division • December 2015 • Page 10
DERI Projects Awarded by Area 2001-August 2015 NUMBER TOTAL NO X NUMBER OF GRANT AREA OF REDUCED COST PER TON ACTIVITIES AMOUNT PROJECTS (TONS) Dallas/Fort Worth 4,055 6,583 58,062 $327,180,375 $5,635 Houston/Galveston/Brazoria 3,737 6,364 75,234 $411,997,395 $5,476 San Antonio 916 1,328 9,562 $68,061,268 $7,118 Austin 898 1,259 8,675 $67,707,651 $7,805 Tyler/Longview 208 470 5,377 $33,184,436 $6,171 Beaumont/Port Arthur 203 299 8,721 $45,069,315 $5,168 El Paso 135 170 706 $3,174,307 $4,497 Corpus Christi 47 198 1,434 $7,831,832 $5,462 Victoria 38 60 518 $4,065,018 $7,847 TOTAL 10,237 16,731 168,289 $968,271,596 $5,754 Air Quality Division • December 2015 • Page 11
DERI Percentage of Grant Funds Awarded by Area 2001-August 2015 El Paso <1% Beaumont/Port Arthur Corpus Christi Victoria 5% 1% <1% Tyler/Longview 3% Austin Dallas/Fort Worth 7% 34% San Antonio 7% Houston/Galveston Brazoria 43% Air Quality Division • December 2015 • Page 12
Drayage Truck Incentive Program (DTIP) Provides incentives for the replacement of older drayage trucks operating at seaports and Class I rail yards in areas of Texas designated as nonattainment. Eligible applicants must operate the grant-funded drayage • trucks in the nonattainment and/or affected counties for at least 50% of the annual usage. Eligible applicants must operate a drayage truck in one or • more of the designated seaports or yards for a minimum number of visits per year. Eligible vehicles and equipment include: • on-road vehicles with a gross vehicle weight rating – (GVWR) greater than 26,000 pounds; and yard trucks (terminal tractors) with an engine rated at – greater than 125 horsepower. Air Quality Division • December 2015 • Page 13
Air Quality Division • December 2015 • Page 14
DTIP Projects Awarded by Terminal Type Fiscal Year 2015 NUMBER NUMBER TOTAL NO X COST PER TON OF OF GRANT REDUCTIONS OF NO X AREA PROJECTS ACTIVITIES AMOUNT (Tons) REDUCED Port 8 37 $3,452,400 208 $16,621 Rail 1 10 $501,524 25 $19,983 TOTAL 9 47 $3,953,924 233 $16,983 Air Quality Division • December 2015 • Page 15
Texas Clean Fleet Program (TCFP) Provides incentives for the replacement of diesel vehicles with alternative fuel and hybrid vehicles Alternative fuels include compressed natural gas (CNG), • liquefied natural gas (LNG), liquefied petroleum gas (LPG), hydrogen, methanol (85% by volume), and electricity. This program allows for 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 20 vehicles. Grants may pay for up to 80% of the costs. • Grant selections are competitive, based on cost-per-ton of • NO X reduced. Air Quality Division • December 2015 • Page 16
Air Quality Division • December 2015 • Page 17
TCFP Projects Awarded by Fuel Type 2010-August 2015 NUMBER NUMBER TOTAL NO X COST PER GRANT FUEL OF OF REDUCTIONS TON OF NO X AMOUNT PROJECTS ACTIVITIES (Tons) REDUCED Compressed Natural Gas (CNG) 6 112 $13,414,276 238 $56,396 Diesel Hybrid 1 61 $4,462,877 40 $111,551 Liquified Petroleum Gas (LPG) 9 218 $13,534,072 123 $110,185 TOTAL 16 391 $31,411,226 401 $78,391 Air Quality Division • December 2015 • Page 18
TCFP Projects Awarded by Area 2010-2015 TOTAL NO X COST PER TON NUMBER OF NUMBER OF GRANT AREA REDUCTIONS OF NO X PROJECTS ACTIVITIES AMOUNT (Tons) REDUCED Austin (AUS) 5 143 $11,815,913 123 $96,274 Dallas/Fort Worth (DFW) 5 108 $9,147,383 182 $50,355 Houston/Galveston/Brazoria (HGB) 6 140 $10,447,930 96 $108,484 TOTAL 16 391 $31,411,226 401 $78,391 Air Quality Division • December 2015 • Page 19
Texas Natural Gas Vehicle Grant Program (TNGVGP) Provides grants for the replacement and repower of heavy-duty and medium-duty vehicles and engines with heavy-duty and medium-duty CNG or LNG vehicles and engines Vehicles must operate in counties in the area • defined by the Clean Transportation Triangle (CTT). Applications are submitted through Participating • Dealers and awards are made on a first-come, first- served basis. Participating Dealer will verify eligibility, arrange for • inspection of the original vehicle to confirm that it is in operating condition, and arrange for disposition. Air Quality Division • December 2015 • Page 20
Air Quality Division • December 2015 • Page 21
TNGVGP Projects Awarded by Fuel Type 2012-August 2015 NUMBER NUMBER TOTAL NO X COST PER GRANT FUEL TYPE OF OF REDUCTIONS TON OF NO X AMOUNT PROJECTS ACTIVITIES (Tons) REDUCED Compressed Natural Gas (CNG) 82 770 $32,553,300 1,179 $27,942 Liquified Natural Gas (LNG) 10 123 $6,399,000 204 $31,473 LNG/Diesel 10 98 $7,428,000 261 $28,497 TOTAL 102 991 $46,380,300 1,645 $28,203 Air Quality Division • December 2015 • Page 22
TNGVGP Projects Awarded by Area 2012-2015 NUMBER NUMBER TOTAL NO X COST PER GRANT AREA OF OF REDUCTIONS TON OF NO X AMOUNT PROJECTS ACTIVITIES (Tons) REDUCED Dallas/Fort Worth (DFW) 44 420 $14,047,417 568 $24,722 Houston/Galveston/Brazoria (HGB) 23 281 $13,610,304 380 $35,781 Inside Clean Transportation Triangle (CTT) 21 155 $12,643,902 432 $29,282 San Antonio (SAT) 4 65 $2,703,326 114 $23,648 Austin (AUS) 4 33 $1,975,141 78 $25,452 Tyler/Longview (TYL) 2 12 $433,625 23 $18,672 Beaumont/Port Arthur (BPA) 1 3 $71,321 4 $19,448 El Paso (ELP) 2 20 $528,000 35 $15,115 Corpus Christi (CC) 1 2 $314,567 7 $42,725 Victoria 0 0 $52,697 3 $17,474 TOTAL 102 991 $46,380,300 1,645 $28,203 Note - The grant amounts and tons of NO X reduced are apportioned among all areas where a grantee has indicated that a grant- funded vehicle or equipment will be operated for an estimated percentage of its annual use, while the number of projects and activities are listed according to the primary area of use designated for each project and activity. The number of projects and activities in the Victoria area are listed as zero because none of the projects have Victoria County as a primary area of use, even though there are grant funding and NOx reductions apportioned to that area. Air Quality Division • December 2015 • Page 23
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