1. Texas Emissions Reduction Plan (TERP)•
Air Quality Division • March 2017

2. 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
Talking Points:
The Texas Emissions Reduction Plan (TERP) program provides grants to reduce nitrogen oxides (NOX) Emissions from mobile sources in order to help areas come into compliance or remain in compliance with the National Ambient Air Quality Standards under the Federal Clean Air Act. In other words, to help keep the air clean in Texas.
The TERP also supports programs to encourage the use of alternative fuels for transportation in Texas.

3. Why Reduce NOX Emissions?
Ground level ozone is created by chemical reactions of NOX and volatile organic compounds (VOC) in the presence of sunlight.
Talking Points:
NOX emissions combine with volatile organic compounds (VOC) in the presence of sunlight to form ground level ozone (smog).
By helping to reduce the NOX in the ozone equation, TERP is helping to assure that air in this state remains safe to breathe and meets minimum federal standards established under the Federal Clean Air Act.
Failure to meet the minimum federal standards for Ozone under the Federal Clean Air Act may result in increased costs to industry, permitting delays, restrictions on industry expansion within certain areas, as well as impacts to transportation planning.
NOX + VOC + Sunlight
= OZONE

4. NOX Emissions by Source Houston-Galveston-Brazoria Area

5. 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
Talking Points:
Many heavy-duty vehicles and pieces of equipment, particularly those with large diesel engines, will last a long time before the vehicles and equipment are retired.
The federal engine emission standards for NOX and other pollutants are much more stringent now than when older vehicles and equipment were put into service.
TERP provides incentives for owners of heavy-duty vehicles and equipment to replace or upgrade their vehicles and equipment sooner than they would have otherwise done.
The old, dirty vehicle or piece of equipment being replaced is rendered inoperable to ensure that it will not return to operation.
The result is that emissions from the operation of these large engines will be much less as a result of the TERP incentives and, therefore, the air will be cleaner.

6. Mobile Sources of NOx

7. TERP Grant Programs
Diesel Emissions Reduction Incentive (DERI) Program Emissions Reduction Incentive Grants (ERIG) Program Rebate Grants Programs Third-Party Grants Program Texas Clean Fleet Program (TCFP) Texas Natural Gas Vehicle Grant Program (TNGVGP) Drayage Truck Incentive Program (DTIP) Clean Transportation Triangle (CTT) Program Alternative Fueling Facilities Program (AFFP) Texas Clean School Bus Program (TCSB) New Technology Implementation Grants (NTIG) Program

8. Diesel Emissions Reduction Incentive (DERI) Program

10. Emissions Reduction Incentive Grants (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.

11. ERIG Eligible Applicants
Persons (individuals, businesses, districts, non-profits, and governments) that own and operate eligible vehicles and equipment in the eligible counties are eligible.
Eligible Vehicles and Equipment
On-road vehicles must have a gross vehicle weight rating (GVWR) greater than 8,500 pounds.
Non-road equipment, marine vessels, locomotives, and stationary equipment engines must have a horsepower of 25 or higher.

12. Rebate Grants Program Now Open!
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

13. DERI Percentage of Grant Funds Awarded by Area 2001-August 2016

14. Other Grant Programs

15. Drayage Truck Incentive Program (DTIP) Now Open!
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 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 & equipment include:
on-road vehicles with a GVWR greater than 26,000 pounds; and
yard trucks (terminal tractors) with an engine rated at greater than 125 horsepower.

17. DTIP Projects Awarded by Area Fiscal Year 2015
NUMBER OF PROJECTS
NUMBER
OF ACTIVITIES
TOTAL NOX REDUCED (TONS)
GRANT AMOUNT
COST PER TON OF NOX REDUCED
Dallas/Fort Worth (DFW) 1 10
25.10
$501,524
$19,983
Houston/Galveston/Brazoria (HGB) 8 37
207.89
$3,442,975
$16,562
Grand Total 9 47
232.98
$3,944,499
$ 16,930
Port Terminals include the Turning Basin and Barbours Cut at the Port of Houston.
Rail terminals include the Dallas Intermodal Terminal operated by Union Pacific.

18. Texas Natural Gas Vehicle Grant Program (TNGVGP) Now Open!
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.
Includes El Paso (nonattainment for CO2 and SO4)

19. TNGVGP
The new vehicle/engine must receive at least 75% of its power from CNG or LNG.
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.

21. TNGVGP Projects Awarded by Fuel Type 2012-August 2016
NUMBER OF
PROJECTS
OF ACTIVITIES
TOTAL NOX REDUCTIONS (TONS)
GRANT AMOUNT
COST PER TON OF NOX REDUCED
CNG 83
757
$31,140,488
$27,521
LNG 13
147
284.72
$7,599,000
$26,690
LNG/ Diesel 7 59
156.60
$5,310,000
$33,908
Grand Total
103
963
1,572.84
$44,049,488
$28,006
1CNG=Compressed Natural Gas; LNG=Liquified Natural Gas

22. TNGVGP Percentage of Grant Funds Awarded by Area 2012-August 2016

23. 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 NOX reduced.
SB-20 has changes to the requirements. Fleet size of 75, must replace 20 vehicles

25. TCFP Projects Awarded by Fuel Type 2010-August 2016
NUMBER OF PROJECTS
NUMBER OF ACTIVITIES
TOTAL NOX REDUCED (TONS)
GRANT AMOUNT
COST PER TON OF NOX REDUCED
LPG 11
251
145
$15,068,011
$103,625
CNG 7
148
286
$18,313,911
$64,131
Diesel Hybrid 2 73 67
$5,431,967
$81,505
Grand Total 20
472
498
$38,813,889
$77,998
1CNG=Compressed Natural Gas; LPG= Liquified Petroleum Gas

26. TCFP Percentage of Grant Funds Awarded by Area 2010-August 2016

27. Clean Transportation Triangle (CTT)
Provides grants for the construction or reconstruction of facilities to dispense natural gas
Grant-funded fueling stations must be in the nonattainment areas, affected counties, or counties along and between the interstate highways connecting Dallas- Fort Worth, Houston, and San Antonio.
Grant-funded fueling stations must be made available to the public and must operate for at least three years.
Grants may not exceed:
$400,000 for stations providing CNG;
$400,000 for stations providing LNG; or
$600,000 for stations providing both CNG and LNG.

29. Alternative Fueling Facilities Program (AFFP)
Provides grants for facilities to dispense alternative fuels
Eligible Alternative Fuels include: Biodiesel, Hydrogen, Methanol (85% by volume), Natural Gas, Propane, and Electricity.
Grant-funded facilities must be located in the nonattainment areas of Texas.
Grant amounts will be for the lesser of 50% of the eligible costs or $600,000.
Grant-funded fueling stations must be made available to the public and must operate for at least three years.

31. Texas Clean School Bus Program
The Texas Clean School Bus Program is a comprehensive program designed to reduce emissions of diesel exhaust from school buses.
Projects may include diesel oxidation catalysts, diesel particulate filters, and emissions-reducing add-on equipment.
This program focuses on the reduction of emissions of diesel exhaust by retrofitting older school buses.
Managed by our Env. Ass. Div – Brian Christian is here
A total $3,238,384 ($3,101,696 state TERP and $136,688 federal funds) was awarded for projects to be completed in FY 2015.
The TCSB program was established in 2005 under THSC, Chapter 390. The program is designed to reduce emissions of diesel exhaust from school buses throughout the state. Eligible projects may involve emissions-reducing add-on equipment and other applications such as closed-crankcase filtration systems, diesel particulate filters, and diesel-oxidation catalysts.  The statutory authorization for this program expires August 31, 2019.

32. Texas Clean School Bus Summary of Projects Awarded 2008-August 2016
Retrofit Projects: 7,497 school buses
Total Funds Awarded: $33,013,079
$28,318,977 in TERP Funds
$4,694,10 in Federal Funds

33. New Technology Implementation Grants Program (NTIG)
The primary purpose of this grant program is to offset the incremental cost of emission reductions from facilities and other stationary sources in Texas.
Eligible categories include:
Electricity Storage;
New Technology; and
Advanced Clean Energy.
Go into some detail

34. NTIG Projects Awarded Summary 2010-August 2015
TECHNOLOGY
NUMBER OF PROJECTS
GRANT AMOUNT
Electricity Storage 4
$8,711,875
New Technology 2
$1,043,745
Grand Total 6
$9,755,620
AREA
NUMBER OF PROJECTS
GRANT AMOUNT
Austin (AUS) 4
$5,511,875
Dallas/Fort Worth (DFW) 1
$543,745
1Other
$3,700,000
Grand Total 6
$9,755,620
1NTIG is available statewide. For a complete list of projects see

35. TERP FY17 Grant Rounds PROGRAM GRANT ROUND STATUS
Emissions Reduction Incentive Grants
Closed January 10, 2017
$140.6 million in grants requested
Texas Natural Gas Vehicle Grant Program
Open through May 26, 2017
$34.2 million in grants still available
Texas Clean Fleet Program
Closed October 18, 2016
$30.9 million in grants requested
Texas Clean School Bus Program
Closed December 10, 2016
$3.1 million in grants requested
Drayage Truck Incentive Program
$3.8 million in grants still available
Rebate Grants
$10 million in grants available
Alternative Fueling Facilities Program/ Clean Transportation Triangle
Closed November 8, 2016
$5.3 million in grants requested
New Technology Implementation Grants
$15.8 million in grants requested
Clean Fleet: minimum 5% of budget
CTT: maximum 4% of budget
TNGVGP : minimum 16% of budget
Not included: admin, Health Effects Study, Texas Engineering Exp. Station (TEES)

36. TERP E-Mail Updates www.terpgrants.org Talking Points:
Encourage people interested in learning more information about the TERP program to visit where they can sign up receive TERP updates, and view upcoming program workshop schedules.

37. Website: www.terpgrants.org
Contacts
Website:
Toll Free: TERP (8377)

38. Program Accomplishments

39. Approximate Funding Amounts per Fiscal Year
TERP Grant Funding FY 2016 – 2017
PROGRAM
Approximate Funding Amounts per Fiscal Year
(FY 2016 – 2017)
Diesel Emissions Reduction Incentive Program
Emissions Reduction Incentive Grants
Rebate Grants
$61.7 M
Texas Natural Gas Vehicle Grant Program
$18.9 M
Texas Clean Fleet Program
$5.9 M
Texas Clean School Bus Program
$4.7 M
Clean Transportation Triangle
Alternative Fueling Facilities Program
New Technology Implementation Grants
$3.5 M
Drayage Truck Incentive Program
$2.3 M
Clean Fleet: minimum 5% of budget
CTT: maximum 4% of budget
TNGVGP : minimum 16% of budget
Not included: admin, Health Effects Study, Texas Engineering Exp. Station (TEES)

40. DERI Projects Awarded by Area 2001-August 2016
NUMBER OF PROJECTS
NUMBER
OF ACTIVITIES
TOTAL NOX REDUCED (TONS)
GRANT
AMOUNT
COST PER TON OF NOX REDUCED
Dallas/Fort Worth (DFW)
4,233
6,900
60,109.66
$348,878,660
$5,804
Houston/Galveston/Brazoria (HGB)
3,869
6,653
75,739.43
$423,637,953
$5,593
Austin (AUS)
966
1,414
9,436.03
$74,818,997
$7,929
San Antonio (SAT)
944
1,411
9,975.21
$71,535,878
$7,171
Beaumont/Port Arthur (BPA)
224
476
8,714.13
$45,301,562
$5,199
Tyler/Longview (TYL)
200
300
5,155.87
$32,234,368
$6,252
El Paso (ELP)
137
173
714.57
$3,261,310
$4,564
Victoria (VIC) 67 82
532.62
$4,850,571
$9,107
Corpus Christi (CC) 58
220
1,567.76
$8,739,923
$5,575
Grand Total
10,698
17,629
171,945.29
$1,013,259,223
$5,893
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.

41. DERI Tons Per Day of NOX Reduced by Area 2001-August 2016
PRIMARY AREA
TONS PER DAY OF NOX REDUCED 2016
TONS PER DAY OF NOX REDUCED 2017
TONS PER DAY OF NOX REDUCED 2018
TONS PER DAY OF NOX REDUCED 2019
Dallas/Fort Worth (DFW)
15.70
12.28
10.14
9.86
Houston/Galveston/Brazoria (HGB)
18.55
14.10
12.56
11.61
Austin (AUS)
2.77
2.24
1.90
2.04
San Antonio (SAT)
3.03
2.36
1.82
1.80
Beaumont/Port Arthur (BPA)
1.64
1.21
1.03
1.00
Tyler/Longview (TYL)
1.45
0.91
0.45
0.11
El Paso (ELP)
0.00
0.01
Victoria (VIC)
0.07
0.16
0.26
Corpus Christi (CC)
0.10
0.24
0.30
Grand Total
43.29
33.28
28.29
26.97

42. DERI Projects Awarded by Emission Source 2001-August 2016
NUMBER OF PROJECTS
NUMBER
OF ACTIVITIES
TOTAL NOX REDUCED (TONS)
GRANT AMOUNT
COST PER TON OF NOX REDUCED
Non-Road
6,003
8,509
45,840.83
$350,659,627
$7,650
On-Road
4,487
8,192
56,598.05
$388,343,913
$6,861
Stationary 82
497
14,920.10
$47,140,678
$3,160
Marine 79
131
4,341.11
$13,604,458
$3,134
Locomotive 47
300
50,245.19
$213,510,547
$4,249
Grand Total
10,698
17,629
171,945.29
$1,013,259,223
$5,893

43. DERI Percentage of Grant Funds Awarded by Emission Source 2001-August 2016

44. TNGVGP Projects Awarded by Area 2012-August 2016
NUMBER
OF PROJECTS
OF ACTIVITIES
TOTAL
NOX REDUCTIONS (TONS)
GRANT AMOUNT
COST PER TON OF NOX REDUCED
Dallas/Fort Worth (DFW) 44
435
581.74
$14,510,788
$24,944
Houston/Galveston/Brazoria (HGB) 23
269
338.66
$12,172,304
$35,943
San Antonio (SAT) 4 48
105.99
$2,402,762
$22,669
Austin (AUS) 5 40
72.09
$1,854,428
$25,725
Tyler/Longview (TYL) 2 12
25.48
$497,643
$19,528
Beaumont/Port Arthur (BPA) 1
2.79
$40,001
$14,329
El Paso (ELP) 20
34.93
$528,000
$15,115
Corpus Christi (CC)
6.63
$264,995
$39,950
Victoria (VIC)
2.85
$46,093
$16,192
Other CTT Areas1 21
136
401.68
$11,732,474
$29,209
Grand Total
103
963
1,572.84
$44,049,488
$28,006
1 Other Clean Transportation Triangle (CTT) includes the IH-10, IH-35, and IH-45 corridors
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. Therefore, an area may list zero for the Number of Projects and Number of Activities but still list an amount for the Grant Amount, Total NOX Reductions, and Cost per Ton of NOX Reduced.

45. TCFP Projects Awarded by Area 2010-August 2016
PRIMARY AREA
NUMBER OF PROJECTS
NUMBER
OF ACTIVITIES
TOTAL NOX REDUCED (TONS)
GRANT AMOUNT
COST PER TON OF NOX REDUCED
Houston/Galveston/Brazoria (HGB) 8
208
146
$14,080,373
$96,473
Austin (AUS) 6
138
139
$12,886,133
$92,579
Dallas/Fort Worth (DFW)
126
212
$11,847,383
$55,756
Grand Total 20
472
498
$38,813,889
$77,998
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.

46. CTT Projects Awarded Summary 2012-August 2016
FUEL TYPE1
NUMBER OF PROJECTS
GRANT AMOUNT
CNG 24
$7,408,239
CNG, LNG 10
$4,200,000
Grand Total 34
$11,608,239
1CNG=Compressed Natural Gas; LNG=Liquified Natural Gas
AREA
NUMBER OF PROJECTS
GRANT AMOUNT
Austin (AUS) 5
$1,948,623
Clean Transportation Triangle (CTT)
$2,200,000
Corpus Christi (CC) 2
$800,000
Dallas/Fort Worth (DFW) 10
$2,459,616
El Paso (ELP) 1
$400,000
Houston/Galveston/Brazoria (HGB) 7
$2,500,000
San Antonio (SAT) 3
$900,000
Tyler/Longview (TYL)
Grand Total 34
$11,608,239

47. AFFP Projects Awarded Summary 2012-August 2016
FUEL TYPE1
NUMBER OF PROJECTS
GRANT AMOUNT
Biodiesel 1
$127,156
CNG 20
$10,680,527
CNG, EC
$570,005
CNG, LNG
$500,000 EC 41
$785,208
Propane 5
$169,875
Grand Total 69
$12,832,770
1CNG=Compressed Natural Gas; EC=Electrical Charging Station; LNG=Liquified Natural Gas
AREA
NUMBER OF PROJECTS
GRANT AMOUNT
Dallas/Fort Worth (DFW) 36
$6,404,433
El Paso (ELP) 1
$600,000
Houston/Galveston/Brazoria (HGB) 32
$5,828,337
Grand Total 69
$12,832,770