1. RECOMMENDATIONS TO ENHANCE TERP PARTICIPATION IN THE NETAC AREA John Grant, Sue Kemball-Cook, Greg Yarwood 1

2. Target Programs Summary Pros and Cons Sample Projects Potential Grantees Recommendations for Next Steps OUTLINE 2

3. Texas Clean Fleet Program (TCFP) Replace heavy-duty and light-duty on-road diesel vehicles with alternative fuel and hybrid vehicles Emissions Reduction Incentive Grants (ERIG) Upgrade or replace on-road vehicles, non-road equipment, stationary equipment, on-vehicle electrification and idle reduction infrastructure, and rail relocation and improvement projects Rebate Grants Program Simplified first-come, first-served grant program to upgrade or replace diesel heavy-duty vehicles and/or non-road equipment Texas Natural Gas Vehicle Grant Program (TNGVGP) Repower a heavy-duty or medium-duty vehicle with a natural gas engine or replace the vehicle with a natural gas vehicle Source: TERP webpage http://www.tceq.state.tx.us/airquality/terphttp://www.tceq.state.tx.us/airquality/terp TARGET PROGRAMS 3

4. TARGET PROGRAMS SUMMARY MATRIX [a] eligible sources/project types may be limited in Fall 2016 (tentative) Request for Grant Applications (RGFA) [b] may close early if funds run out prior to May 2017 [c] For TCFP, applicants must operate a fleet of at least 75 vehicles, at least 20 diesel vehicles must be eligible for replacement 4

5. TARGET PROGRAMS PROS AND CONS 5 [a] For TCFP, applicants must operate a fleet of at least 75 vehicles, at least 20 diesel vehicles must be eligible for replacement

6. SAMPLE FUNDED PROJECTS IN THE NETAC AREA [a] Emissions Reduction Incentive Grants (ERIG) or Rebate Grants [b] Participating Dealer in Tyler/Longview: Rush Truck Centers of Texas, LP dba Rush Truck Center Tyler, 11042 Highway 69 North, Tyler, (903) 525-0500 6

7. Texas Clean Fleet Program (TCFP) School districts, delivery/freight companies, city/county fleets, transit agencies, refuse collection fleets Emissions Reduction Incentive Grants (ERIG), Rebate Grants Program Delivery/freight companies, cement/concrete/aggregates sector, school districts, cities/counties, transit agencies, refuse collectors, food distributors, truck/equipment rental, warehouse operators, industrial/commercial heavy-duty equipment operators, industrial/commercial heavy- duty vehicle operators, construction companies Texas Natural Gas Vehicle Grant Program (TNGVGP) Delivery/freight companies, food distributors, truck rental, city/county governments, industrial/commercial heavy-duty vehicle operators, refuse collectors POTENTIAL GRANTEE CANDIDATES 7

8. May 20, 2016 NETAC committee members requested to identify people responsible for fleets of vehicles/equipment that may be eligible for TERP emissions reduction funding June 24, 2016 NETAC committee members send contact information for potential TERP applicants to ETCOG (Julie.Burnfield@etcog.org)Julie.Burnfield@etcog.org July, 2016 ETCOG contacts potential applicants and provides TERP information to applicants Note: Texas Natural Gas Vehicle Grant Program (TNGVGP) is open and grantees may apply when ready; other programs will be open for applications in Fall 2016 or later (tentative) Fall, 2016 Grant program application opens for ERIG and TCFP (tentative) ETCOG follows up with potential applicants and provides information on TCEQ workshop (workshop schedule to be released by TCEQ concurrently/after grant solicitation is released) TCEQ holds workshop(s) Spring, 2017 ETCOG follows up with applicants and/or TCEQ on TERP application status Ramboll Environ reports on Northeast Texas outreach efforts and TERP participation RECOMMENDATIONS FOR NEXT STEPS 8

9. END 9 PREPARED UNDER A GRANT FROM THE TEXAS COMMISSION ON ENVIRONMENTAL QUALITY This presentation was financed through grants from the State of Texas through the Texas Commission on Environmental Quality. The content, findings, opinions and conclusions are the work of the author(s) and do not necessarily represent findings, opinions or conclusions of the TCEQ.

10. Tentative Application Opening: Fall 2016 Target Sources: Heavy-duty and light-duty diesel on-road vehicle fleets Target Applicants: Fleet operators Must operate at least 75 vehicles, must replace at least 20 diesel-powered vehicles Individuals, corporations, organizations, governments or governmental subdivisions or agencies, school districts, business trusts, partnerships, associations, or any other legal entity Grant amount: Maximum eligible grant amount is up to 80% of the total replacement cost Technology: Vehicle replacements will be alternative fuel or hybrid vehicles Project selection is competitive, criteria listed below is from FY16 solicitation Cost per ton of NOX projected to be reduced (60 points) Long-term commitment to reduce emissions (10 points) Availability of fueling (or charging) infrastructure (10 points) Additional details available at TCFP webpage: http://www.tceq.state.tx.us/airquality/terp/tcf.html http://www.tceq.state.tx.us/airquality/terp/tcf.html Texas Clean Fleet Program (TCFP) Content slide 10

11. Tentative Application Opening: Fall 2016 Target Emission Sources (may vary based on grant solicitation) Heavy-duty vehicles, non-road equipment, marine vessels, locomotives, or stationary engines, alternative refueling/idle reduction infrastructure Target Applicants: Owners or operators of target emission sources Individuals, corporations, organizations, governments or governmental subdivisions or agencies, school districts, business trusts, partnerships, associations, or any other legal entity. Grant amount: Maximum eligible grant amount is up to 80% of the incremental cost Technology: Dependent on emission source, replacement/repower not limited to specific fuel type Project selection is competitive, criteria listed below is from FY16 solicitation Cost per ton of NOx Achieving the Goals of the TERP Overall NOx reductions and project length Advance the use of clean technologies NOx emission reduction potential Additional details available at ERIG webpage: http://www.tceq.state.tx.us/airquality/terp/erig.html http://www.tceq.state.tx.us/airquality/terp/erig.html Emissions Reduction Incentive Grants (ERIG) Content slide 11

12. Tentative Application Opening: Late-2016/early-2017 Target Emission Sources (may vary based on grant solicitation) Heavy-duty vehicles, non-road equipment, marine vessels, locomotives, or stationary engines, alternative refueling/idle reduction infrastructure Target Applicants: Owners or operators of target emission sources Individuals, corporations, organizations, governments or governmental subdivisions or agencies, school districts, business trusts, partnerships, associations, or any other legal entity. Grant amount: Maximum eligible grant amount is up to 80% of the incremental cost Technology: Dependent on emission source, replacement/repower not limited to specific fuel type Project Selection: First-come, first-served Additional details available at Rebate Grants Program webpage: http://www.tceq.state.tx.us/airquality/terp/rebate.html http://www.tceq.state.tx.us/airquality/terp/rebate.html Rebate Grants Program (RGP) Content slide 12

13. Application Opening: Now until May 2017 (may close early if allocated funds are granted prior to May 2017) Target Emission Sources: Heavy- and medium-duty diesel or gasoline vehicles (>8500 lbs GVWR) Target Applicants: owners, lessees, or those who commercially finance a heavy-duty or medium- duty vehicle that is operated in Texas Grant amount: Maximum eligible grant amount is up to 90% of the incremental cost for the replacement or repower Technology: New natural gas vehicles (at least 75% of vehicle power must be from compressed or liquefied natural gas) Project Selection: First-come, first-served Additional details available at TNGVGP webpage: http://www.tceq.state.tx.us/airquality/terp/tngvgp.html http://www.tceq.state.tx.us/airquality/terp/tngvgp.html Texas Natural Gas Vehicle Grant Program (TNGVGP) Content slide 13