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Texas Emissions Reduction Plan (TERP) Texas Commission on Environmental Quality August 4, 2004 TERP Advisory Board Meeting. Overview. TERP was created in 2001 by SB 5 (77th Texas Legislature)

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Texas Emissions Reduction Plan(TERP)Texas Commission on Environmental Quality August 4, 2004TERP Advisory Board Meeting
overview
Overview
  • TERP was created in 2001 by SB 5 (77th Texas Legislature)
  • Focus is on voluntary incentives for projects to reduce emissions of nitrogen oxides (NOx) in the nonattainment and near-nonattainment areas of Texas.
  • The program was amended in 2003 by HB 1365 (78th Texas Legislature)
    • Added Small Business Grant Program
    • Increased types of eligible sources and projects
    • Provided for new revenues
terp programs
TERP Programs
  • Chapter 386
    • Emissions Reduction Incentive Grant Program (TCEQ)
    • Small Business Grants Program (TCEQ)
    • Heavy-Duty Motor Vehicle Purchase or Lease Incentive Program (TCEQ)
    • Light-Duty Motor Vehicle Purchase or Lease Incentive Program (TCEQ and Comptroller)
    • Energy Efficiency Grant Program (PUC)
  • Chapter 387
    • New Technology Research and Development Program (TCEQ)
  • Chapter 388
    • Texas Building Energy Performance Standards (Lab)
    • Energy Efficiency Programs in Certain Political Subdivisions (SECO)
legislative report contents
Legislative Report Contents
  • Summary of projects funded with TERP funds
  • Accounting of the use of funds
  • Status of Plan in achieving emission reductions credited in air quality plans
  • Summary of administrative processes
  • Program adjustments made since last report and necessary legislative recommendations necessary to improve the Plan
funding fy02 june 30 2004
Funding (FY02 – June 30, 2004)
  • Surcharge on off road equipment - $34.7 million
  • Surcharge on heavy-duty on-road vehicles - $16.1 million
  • 10% fee on commercial motor vehicle registrations - $22.5 million
  • $225 fee for inspection of out-of-state vehicles - $0
  • Portion of vehicle title fees - $87.7 million
  • $10 fee on commercial vehicle inspections - $10.1 million
  • Fund balance interest - $1.8 million
emissions reduction incentive and small business projects funded to date sept 1 2001 june 30 2004
Emissions Reduction Incentive and Small Business Projects Funded to Date (Sept. 1, 2001 -June 30, 2004)
fy05 program
FY05 Program
  • Staff working on allocation approaches for Commissioners’ Work Session on August 16th
  • Eligibility criteria for Emissions Reduction Incentive Grant Program - $7,000/ton; for Small Business Grants Program - $8,500
  • Funding cap for infrastructure projects at 50%
  • Ensure minimal risk to state funds when funding start-up businesses
  • Continue funding lease projects
  • Continue to work with public entities on 3rd party grants; no private entities for FY05
estimated future revenue for emissions reduction incentive and small business grants programs
Estimated Future Revenuefor Emissions Reduction Incentive and Small Business Grants Programs
  • FY2005 - $127.4 million
  • FY2006 - $129.8 million
  • FY2007 - $132.8 million
  • FY2008 - $135.2 million
new technology research and development estimated future revenue
New Technology Research and Development Estimated Future Revenue
  • FY2005 - $13.8 million
  • FY2006 - $14.2 million
  • FY2007 - $14.5 million
  • FY2008 - $14.7 million
what is the ntrd
What is the NTRD?
  • The Texas Council on Environmental Technology (TCET) was created in 2001 by SB 5 to implement NTRD
  • Assist in developing solutions to
    • air
    • water
    • waste problems
  • Funded 15 projects totaling $2.4 million
  • NTRD Program was formally transferred to TCEQ in 2003, by HB 37
new technology research development program
New Technology Research & Development Program
  • Retrofit/add-on technologies targeted by the TERP
  • Advanced technologies for new engines
  • Studies and modeling
  • Advanced technologies that promote building and appliance energy performance
  • Advanced technologies that reduce emissions from other significant sources.
fiscal year 2004
Fiscal Year 2004
  • Primary objective to fund :
    • Emissions-reducing technologies
    • May be eligible for funding under Chapter 386 (TERP)
  • 74 applications - requesting approximately $60 million in funding
  • 17 projects selected for $8.3 million
fiscal year 2005 applications
Fiscal Year 2005 Applications
  • Primary objective to fund :
    • Emissions-reducing technologies
    • May be eligible for funding under Chapter 386 (TERP)
  • 104 applications - requesting approximately $73.6 million in funding
  • Currently in the review process
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