Texas Emissions Reduction Plan Grants
Curt Johnson, CPEA, Senior Program Director, Richmond, TX
When was the last time the government gave you money to reduce your emissions? For most organizations, the answer is never. But the Texas Commission on Environmental Quality (TCEQ) has already distributed more than $90 Million to individuals, businesses and local governments to reduce emissions from underperforming vehicles and equipment. And they want to hand out more.
TCEQ administers the Texas Emission Reduction Plan (TERP) as one element supporting Texas' State Implementation Plan (SIP) to comply with federal air quality rules and improve air quality. The Texas legislature established the original pool of money for TERP and that money is long gone. But the pool gets replenished by violators who agree to pay for Supplemental Environmental Projects (SEP) as part of legal settlements and in exchange for reducing their enforcement fines. Six different TERP grant programs are administered by TCEQ, including grant programs for research and development, and for implementation of new technology. TCEQ also administers the Texas Clean Fleet Program, the Emissions Reduction Incentive Grant program and the Rebate Grant Program.
The TERP Rebate Grant program just got another $12 Million to give to eligible individuals, businesses and local governments who want to reduce emissions of nitrogen compounds (NOx) by replacing underperforming heavy vehicles and diesel equipment. Through a grant application process, projects will be selected based on a number of factors including a formula for the dollars granted per ton of NOx that won't be emitted in the future.
Rebate Grant money can be used for replacement of old vehicles or equipment, or for repowering (engine replacement) of on-road heavy duty vehicles or non-road diesel equipment, such as loaders, excavators, forklifts and stationary engines. The money can even be used to purchase Global Positioning Systems (GPS) to better track and more efficiently route vehicles and non-road equipment.
Applications for TERP grants are only accepted during periods when money is available. On April 4, 2011 TCEQ issued a Notice of Rebate Grants (NRG). Applications for this pool of money will be accepted until July 29, 2011, or until the money runs out. Because applications are reviewed on a first-come, first-served basis, time is of the essence if you qualify and want to try for your fair share.
So what's the catch you ask? Well, certain conditions do apply. For instance, applications are only accepted for vehicles and equipment that would be operated in a TERP-eligible county. But these counties are those where the majority of Texas' air sources are located, so there's a good chance that you're included (e.g., counties around Dallas/Fort Worth, Houston/Galveston, Beaumont/Port Arthur, San Antonio, Austin and Tyler/Longview).
Your new equipment does not have to be newly manufactured - engines for the "new" vehicles and equipment need only be model year 2008 or newer. Your current diesel vehicles or equipment must be in operating condition, and you must have owned it for the past two years. You must also commit to stop operating the old equipment. For motor vehicles, you will need to submit a copy of a Texas Non-Repairable Vehicle Title from the department of motor vehicles as part of your documentation. And speaking of paperwork, you have to submit a grant application so the project can be evaluated based on its NOx reductions.
If you have air regulatory compliance experience, you should have a warning alarm going off about one of the words in this article, and if there is a catch under the TERP, it comes from the word "replacement". With few exceptions, air pollution regulations require equipment that is replaced to comply with the current emissions requirements. Generally, new vehicles and equipment can be counted on to meet the current allowable emissions limits. Under certain of the regulations, however, you may also become subject to new operating requirements, such as testing and recordkeeping.
TCEQ's Chapter 117 addresses Control of Air Pollution from Nitrogen Compounds, and Subchapter D addresses Combustion Control at Minor Sources in Ozone Nonattainment Areas. This includes non-emergency stationary engines larger than 50 horsepower, such as might be used to run crushers, shredders or conveyor belts. Engines that have been modified, reconstructed, or relocated must have a performance test within 60 days to prove that they meet the required emissions limits, and then are also subject to ongoing monitoring. Read a little further into the standards and you see that existing engines also had to have had a performance test after the rules became effective and are also subject to ongoing monitoring.
In the end, if you are considering replacing or upgrading on-road heavy-duty vehicles or non-road diesel equipment, TCEQ's TERP program is about as free a lunch as you'll find anywhere. To find out more about TERP and what if any issues you might be facing under the air rules, go to the TERP web site at www.tceq.texas.gov/airquality/terp.
Curt Johnson, CPEA, is a Senior Program Director located in Richmond, TX. He has more than 30 years experience in the development and implementation of environmental, health and safety management systems. For more information about TERP, the grant application process or other EHS solutions for business results, contact Curt at (281)341-8289, cjohnson@stcenv.com.
