1. Recommendations to Enhance TERP Participation in the NETAC Area
John Grant, Sue Kemball-Cook, Greg Yarwood
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2. Outline Target Programs Recommendations for Next Steps Summary
Pros and Cons
Sample Projects
Potential Grantees
Recommendations for Next Steps
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3. Target Programs 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
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4. Target Programs Summary Matrix
Grant Program
Grant Application Period Opening
Selection Type
Eligible Sources [a]
Project Type(s) [a]
Texas Clean
Fleet Program (TCFP) [c]
Fall 2016 (tentative)
Competitive, typically many applicants for limited funding
Heavy-duty diesel vehicles, light-duty diesel vehicles
Replace
Emissions Reduction Incentive Grants (ERIG)
Competitive
Heavy-duty vehicles, non-road equipment, marine vessels, locomotives, or stationary engines, alternative refueling/idle reduction infrastructure
Fleet expansion / replace / repower / retrofit
Rebate Grants
Late 2016 /early2017 (tentative)
1st-come, 1st-served
Texas Natural Gas Vehicle Grant Program (TNGVGP)
Now until
May 2017 [b]
Heavy- and medium-duty diesel or gasoline vehicles (>8500 lbs GVWR)
Replace / repower
[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

5. Target Programs Pros and Cons
Grant Program
Pros
Cons
Texas Clean Fleet Program (TCFP)
Has worked well for some school districts. Grants have been awarded to a refuse handler and City fleet
Fleet size requirements limits potential applicants[a]
Emissions Reduction Incentive Grants (ERIG)
Most broadly applicable program
More complex application process than Rebate Grants
Rebate Grants
Simplified application process, first-come, first-served selection
Tentative opening of application period after other programs. In past solicitations, applicable projects were defined more narrowly than ERIG
Texas Natural Gas Vehicle Grant Program (TNGVGP)
Program is open now with a participating dealer in Tyler
Some potential applicants may be waiting to apply because diesel prices are currently low
[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
Grant Program
Grantee
Project
Texas Clean Fleet Program (TCFP)
No NETAC area projects have been funded yet
Diesel Emissions Reduction Incentive (DERI) Program[a]
Luminant Mining Company, LLC
$2.6M in grants (2010CY and 2013CY) to replace various off-road/locomotive equipment
RC Lindale ISD
$16K grant for 2 school buses
L. S. Equipment Co., Inc.
(dba Lone Star Equipment Co., Inc.)
$455K in grants to replace 4 haul trucks
TNGVGP [b]
City of Tyler
$60K grant for 2 garbage trucks
TXI Operations LP
$300K grant for 10 cement trucks
[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, Highway 69 North, Tyler, (903)

7. Potential Grantee Candidates
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
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8. RECOMMENDATIONS FOR NEXT STEPS
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
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
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9. END
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.
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10. Texas Clean Fleet Program (TCFP)
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:
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11. Emissions Reduction Incentive Grants (ERIG)
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:
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12. Rebate Grants Program (RGP)
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:
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13. Texas Natural Gas Vehicle Grant Program (TNGVGP)
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:
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