Docstoc

Mustang CAT TERP Presentation--TEXAS EMISSION REDUCTION PROGRAM

Document Sample
Mustang CAT TERP Presentation--TEXAS EMISSION REDUCTION PROGRAM Powered By Docstoc
					TEXAS EMISSION REDUCTION PROGRAM

Prepared for Mustang Cat Customers
by Tod Wickersham Good Company Associates, Inc.
October 22, 2003

G ood Com pany
A S S O CIA TE S

Air Quality Program

What’s the Problem? • Many areas of Texas have unhealthy air
• Ground level ozone exceeds federal health based standards which
• Negatively affects human health and drives up medical costs • Negatively affects economic development • Negatively impacts tourism

G ood Com pany
A S S O CIA TE S

Air Quality Program

What if we don’t clean up our air?
• New road construction projects prevented from starting • Federal highway funds withheld — stops existing road construction and maintenance projects… • New business prevented from coming into the area • Significant loss of jobs • Reduction of local tax revenues which may lead to increase in taxes or further cuts in road maintenance and construction • New requirements or restrictions for the construction and trucking industries

G ood Com pany
A S S O CIA TE S

Texas Emissions Reduction Plan

Fixing the Air Quality Problem
• Take advantage of Texas Emissions Reduction Plan (TERP) grant program • Replace older, higher emitting trucks and equipment • Upgrade heavy duty engines in trucks and equipment • Keep equipment in good working condition • Utilize new technologies and cleaner fuels

G ood Com pany
A S S O CIA TE S

Texas Emissions Reduction Plan

TERP Program
• The TERP Grant Program is a voluntary incentive based program created to
• Subsidize the cost of reducing emissions from heavy duty engines in trucks and off-road machines

• Help avoid the negative federal economic penalties and restrictions • Avoid new state regulations that could substantially restrict the operation of heavy duty trucks and equipment
• Prevent wasting time and money estimating and tracking project’s daily and total emissions

G ood Com pany
A S S O CIA TE S

Texas Emissions Reduction Plan

Counties Eligible for TERP Grant

G ood Com pany
A S S O CIA TE S

Texas Emissions Reduction Plan

Counties Eligible for TERP Grant
• • • • Houston-Galveston Severe Nonattainment area: Brazoria, Chambers, Fort Bend, Galveston, Harris, Liberty, Montgomery, and Waller. Beaumont-Port Author Nonattainment area: Harden, Jefferson, and Orange Dallas-Fort Worth Severe Nonattainment area: Denton, Collin, Dallas, and Tarrant. Counties Surrounding the DFW area: area: Ellis, Henderson, Hood, Hunt, Johnson, Kaufman, Parker, and Rockwall.

•
• • •

Tyler-Longview area: Smith, Upshur, Harrison, Gregg, and Rusk.
Austin area: Travis, Williamson, Hays, Caldwell, and Bastrop. San Antonio area: Bexar, Comal, Guadalupe, and Wilson. Corpus Christi area: San Patricio and Nueces.

•
•

Victoria county.
El Paso County.

G ood Com pany
A S S O CIA TE S

Texas Emissions Reduction Plan

TERP Program Funding
• Approximately $150 million per year for 4 years is roughly divided up as follows:
• $130 million to help reduce emissions from primarily heavy duty trucks and off-road equipment
• $100 million to be spent in the severe non-attainment areas, Houston-Galveston and Dallas-Fort Worth areas • $30 million per year will go to the other areas with air quality problems, Austin, Beaumont-Port Arthur, Corpus Christi, El Paso, San Antonio, Tyler-Long View, and Victoria

• $12 million to the Texas Council on Environmental Technology (TCET) for research; new technology development and verification • $5 million for administration of the program

G ood Com pany
A S S O CIA TE S

Texas Emissions Reduction Plan

TERP Funding Options
Mustang Cat can help you get TERP grants to:
• Repower: obtain a new or remanufactured engine for the cost of a basic overhaul • Replacement: instead of rebuilding the engine, scrap your current machine/truck and get grant money towards the purchase of a new/newer machine/truck. • New Purchase: receive funds for buying a machine/truck that is cleaner than current EPA requirements.

G ood Com pany
A S S O CIA TE S

Texas Emissions Reduction Plan

Repowers
• Remove a machine’s existing engine and replace it with a new or newer cleaner engine. • Benefit to you:
• Get new or remanufactured engine for the cost of a basic rebuild (or less). • New engines should last longer • New engines frequently have increased fuel efficiency or horsepower • New engines comes with warrantee • New engines more compatible with future retrofit technologies

• Note:
• Engine must be scrapped or sent back to Cat for core value • New engine must be specified percent cleaner than old engine

G ood Com pany
A S S O CIA TE S

Texas Emissions Reduction Plan

Replacements
• Replace old truck or machine with a new or newer cleaner truck or machine. • Benefit to you:
• Subsidizes the modernization or your fleet • Engines in newer trucks or equipment frequently have increased fuel efficiency or horsepower

• Note:
• New truck or machine must be specified percent cleaner than old truck or machine • Most old trucks and machines must be scrapped or exported. • Incentive amount based on cost-effectiveness not to exceed value of newer truck or machine minus core value…

G ood Com pany
A S S O CIA TE S

Texas Emissions Reduction Plan

New Purchases and Leases
• Purchase/lease a new machine that’s emissions levels are lower than EPA requirements. • Benefit to you:
• Subsidizes the modernization or your fleet • Engines in newer trucks or equipment frequently have increased fuel efficiency or horsepower

• Note:
• Limited window and availability: Tier II 50-100 horsepower machine must be in your possession by December 31, 2003 • Early release Tier III machines will be eligible for TERP funding in 2005 or 2006 depending on horsepower ranges and availability • Program only pays the incremental cost between Tier I and Tier II machine (or in the future between the Tier II and Tier III)

G ood Com pany
A S S O CIA TE S

Texas Emissions Reduction Plan

How to get TERP Funding
• Work with Mustang Cat Product Support Sales Rep and discuss your options • Identify machines to be replaced or upgraded • Review options that are pre-approved and those that require a conventional TERP application • Note:
• Mustang Cat’s is seeking to pre-approve common repowers which is expected to eliminate most of the paperwork and the 3 month approval process for you. • Some grants can be funded retroactively

G ood Com pany
A S S O CIA TE S

Texas Emissions Reduction Plan

How to get TERP Funding
• Provide Mustang Cat Product Support Rep with:
• Estimated hours per year of intended operation • Number of years of intended ownership (3+ to 5+ year minimum requirement expected) • Percent of time you expect operate in eligible counties • Date you intend to begin operating the cleaner engine/equipment • For replacement, provide evidence of ownership…for prior two years

• Complete company information sections of the preapproved TERP contract form or the TERP application

G ood Com pany
A S S O CIA TE S

Texas Emissions Reduction Plan

How to get TERP Funding
• Mustang Cat Product Support Rep
• Calculates cost-effectiveness • Estimates eligible grant amount • Completes supplemental grant application activity forms with you, if necessary • Discusses assignment of payment option with you, if applicable

• Upon award or final approval of the grant, you
• Sign the contract that states your commitments • Complete request for reimbursement form or sign it for dealer to submit • Report once a year the hours of operation within the designated eligible counties

G ood Com pany
A S S O CIA TE S

Other Incentives

Other Expected Opportunities
• Preferential treatment by some state and local agencies
• Meet their new cleaner bid requirements or receive clean equipment bonuses.

G ood Com pany
A S S O CIA TE S

Resources
 Your Mustang Cat Product Support and Sales Representatives
• www.mustangcat.com

 TCEQ TERP website www.tnrcc.state.tx.us/oprd/sips/terp.html  Tod Wickersham or Monica Beard Good Company Associates, Inc. twickersham@goodcompanyassociates.com 512-480-2217

G ood Com pany
A S S O CIA TE S


				
DOCUMENT INFO
Shared By:
Categories:
Tags:
Stats:
views:11
posted:9/11/2009
language:English
pages:17
pptfiles pptfiles
About