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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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Overview
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)


Small business projects only as of june 30 2004
Small Business Projects Funded to Date (Sept. 1, 2001 -Only (as of June 30, 2004)


Fy04 2 nd round selected projects as of july 26 2004
FY04 2 Funded to Date (Sept. 1, 2001 -nd Round Selected Projects (as of July 26, 2004)


Fy05 program
FY05 Program Funded to Date (Sept. 1, 2001 -

  • 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 Revenue Funded to Date (Sept. 1, 2001 -for 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? Revenue

  • 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 Revenue

  • 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 Revenue

  • 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 Revenue

  • 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