Clean Transportation Triangle (CTT) Solicitation 582-12-20713

1. Clean Transportation Triangle (CTT) Solicitation 582-12-20713 Kathleen ValeWork Lead, Air Quality Division Kate WilliamsGrant Manager, Air Quality Division Presented at CTT Grant Workshop February 9, 2012 Air Quality Division

2. Workshop Agenda • History & objectives • Solicitation terms • Grant phases & requirements • Application process • Budget & eligible expenses • Application scoring & tips • Questions

3. CTT Origins • New program • Senate Bill 385 of 82nd Texas Legislature 2011 • Part of the Texas Emissions Reduction Plan (TERP) • Codified in Texas Health and Safety Code, Chapter 394

4. CTT Objectives • Build the foundation for a self-sustaining market for natural gas vehicles in Texas • Strategic distribution of fueling facilities • Expansion of use in larger vehicles • Ensure that natural gas vehicles purchased, leased, or otherwise commercially financed or repowered under the separate Texas Natural Gas Vehicle Grant Program (TNGVGP) have access to fuel • TNGVGP to open mid-2012

5. Purpose of CTT Grants • Fund portion of cost of new NG fueling facilities • Facilities along Dallas-Fort Worth, Houston, and San Antonio corridors

6. Solicitation Terms • Eligible project categories • Eligible applicants • Eligible locations & highways • Funding available

7. Eligible Project Categories • Compressed Natural Gas (CNG) projects • Liquefied Natural Gas (LNG) projects • Both LNG and CNG projects • Preference for projects involving both fuels • Project type based on new aspect of project • New facility or new service

8. Eligible Applicants • Any legal entity • Purchaser of NG fueling equipment • No equipment leases • No transfer of ownership • May lease equipment to another entity during grant • Must have binding agreement with facility owner

9. Eligible Locations • ≤ 3 miles from eligible highway • Measured straight line • Preference for locations ≤ 1 mile from eligible highway • Eligible highways • Interstate highways connecting: • Houston • San Antonio • Dallas • Fort Worth

10. Eligible Highways

11. Eligible Highways • IH 10 from eastern Chambers County to Western Bexar County, including IH 410 around San Antonio and IH 610 around Houston • IH 35 from southern Bexar County to northern Denton County, including IH 35E and IH 35W through the Dallas-Fort Worth area and IH 635 around Dallas • IH 30 from eastern Rockwall County to intersection with IH 20 • IH 20 from eastern Kaufman County to western Parker County, including IH 820 around Fort Worth • IH 45 from City of Galveston to intersection with IH 30, including IH 345 in Dallas • IH 37 from City of San Antonio to southern Bexar County

12. Eligible Facilities • New facilities OR new services • Be clear in application about what is new vs existing • Publicly available • Fuel flow rate of ≥3 GGE/min • One grant per station

13. Funding Available • Maximum funding by project type • CNG project – up to $100,000 • LNG project – up to $250,000 • Both CNG & LNG projects – up to $400,000 • Project type determined by new aspect NOT existing • Maximum 3 awards per entity • Cumulative for program • Total funding available: approx $4.5 Million

14. Grant Phases • Implementation Phase: • Construction of facility • Includes grant-funded work • May begin work prior to award • Complete by May 31, 2014 • Operation Phase: • Public access to completed facility • At least 3 years from end of implementation • No grant funding

15. Operation Phase Requirements • Maintain ownership of facility • If sold then grantee may need to refund a portion of the grant to TCEQ • Maintain facility • Insurance coverage • Publicly accessible • At least • 8 hours/day between 6:00 a.m. – 8:00 p.m. • Monday-Friday • Location and hours posted on TCEQ Web site • Notify TCEQ of hours change • Annual reports

16. Reporting Requirements • TCEQ supplies all forms • Implementation Phase: • Quarterly progress reports • Requests for reimbursement as necessary • Final report on completion • Operation Phase: • Annual progress reports • Report change of public access/hours promptly

17. Reimbursements • Reimbursement only • No advance payments • Sufficient support documentation required • Proof of payment • 25% withheld from each reimbursement • Paid on project completion

18. Application Process • Documents at www.terpgrants.org • Read RFGA first • Frequently Asked Questions document • Updated throughout application period

19. Applications • Complete both: • Form 20606a • Excel document • General applicant information • Form 20606b • Word document • Project-specific information • Implementation plan, market, qualifications, etc. • Include supporting documents • Budget, timeline, letters of support, etc

20. Application Submission • Must submit: • 1 signed paper copy • 1 electronic copy • CD/DVD or memory stick • Do not e-mail • Confidential documents in separate labeled envelope only • No electronic copies of confidential info • In person or by mail • Do not e-mail SUBMISSION DEADLINE: April 17, 2012 by 5 PM Central

21. Confidential Documents • Supporting information only • Applications, budget, Scope of Work, & timeline cannot be confidential • Submission • Paper only – no electronic • In separate envelope • Every page marked: • “Confidential/Proprietary: inform applicant & seek AG opinion before releasing” • No guarantee of confidentiality

22. Contract Terms • Shell contract at www.terpgrants.org • Must review prior to application • Notable terms: • Reporting requirements • Operational requirements • Reimbursement requirements • Confidential documentation • Will not modify General Conditions and other terms • Raise concerns in application (20606b)

23. Budget • Attach detailed budget • Own format (form not supplied) • Total project costs • Include and identify both: • Proposed CTT-funded expenses • Detailed • Other funded expenses • Less detail needed • Be clear which is which • Proposed grant-funded expenses should only include eligible expenses

24. Eligible Expenses • First priority: • Natural gas dispensing equipment • Including installation costs (contractual, supplies, etc) • Prefer to allocate all grant funds to equipment costs and have all other expenses funded by grantee • May consider: • Construction for facility improvement • Contractual and other costs for design, engineering, and permitting

25. Ineligible Expenses • Salaries and travel expenses for applicant’s employees • Facility improvements and equipment not directly associated with the natural gas dispensing equipment • Land or purchase of an existing station • Permitting costs for TCEQ-issued permits • Administrative costs of the grantee • Overhead and indirect costs (e.g., office supplies, rent, marketing, and advertising)

26. Tips for Strengthening Applications • Thorough responses to all questions • Be clear about • New vs existing • Steps in Scope of Work & Timeline • Grant-funded vs applicant-funded expenses in Budget • Review and address scoring criteria • Section 3.1 of RFGA • Include supporting documents • Technical details • Support from & agreements with partners

27. Scoring Criteria • See Section 3.1 of RFGA for details • Multiple fuels • Proximity to eligible highways • Need for and potential use of facility • Access to facility • Impact on residents and at-risk • Qualifications and experience of applicant • Project implementation and operation • Program alignment

28. Contact Information www.terpgrants.org Kathleen Vale (512) 239-2464 Kate Williams (512) 239-6797 TERP@tceq.texas.gov 1-800-919-TERP (8377)