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Texas Emissions Reduction Plan (TERP): Overview and Future Initiatives

Learn about TERP's voluntary incentives to reduce nitrogen oxide emissions in Texas, program overview, funded projects, and future funding estimates. Stay informed on the TERP advisory board meeting discussions and strategic initiatives.

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Texas Emissions Reduction Plan (TERP): Overview and Future Initiatives

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  1. Texas Emissions Reduction Plan(TERP)Texas Commission on Environmental Quality August 4, 2004TERP Advisory Board Meeting

  2. 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

  3. 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)

  4. 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

  5. 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

  6. Emissions Reduction Incentive and Small Business Projects Funded to Date (Sept. 1, 2001 -June 30, 2004)

  7. Small Business Projects Only (as of June 30, 2004)

  8. FY04 2nd Round Selected Projects (as of July 26, 2004)

  9. 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

  10. 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

  11. New Technology Research and Development Estimated Future Revenue • FY2005 - $13.8 million • FY2006 - $14.2 million • FY2007 - $14.5 million • FY2008 - $14.7 million

  12. 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

  13. 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.

  14. 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

  15. NTRD Funding for Fiscal Year 2004

  16. NTRD Funded Projects for Fiscal Year 2004 *TERP Related

  17. 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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