Regulatory Text: 
Texas Chapter 114 - Control of Air Pollution From Motor Vehicles

SUBCHAPTER K:  MOBILE SOURCE INCENTIVE PROGRAMS

DIVISION 3:  DIESEL EMISSIONS REDUCTION INCENTIVE PROGRAM FOR ON-ROAD AND NON-ROAD VEHICLES
Approved by EPA August 19, 2005 (70 FR 48647) effective September 19, 2005 (TXd63).

Outline:
§114.620.  Definitions. 4-54, TXd63
§114.621.  Applicability. 4-54, TXd63
§114.622.  Incentive Program Requirements. 4-54, TXd63
§114.623.  Small Business Incentives. 4-54, TXd63
§114.626.  Monitoring, Recordkeeping, and Reporting Requirements. 4-44, TXd63
§114.629.  Affected Counties and Implementation Schedule. 4-54, TXd63


§114.620.  Definitions.
As adopted by TCEQ January 28, 2004, effective February 17, 2004 (4-54).
Approved by EPA August 19, 2005 (70 FR 48647) effective September 19, 2005 (TXd63).

     Unless specifically defined in the Texas Clean Air Act (TCAA) or in the rules of the commission, the terms used in this subchapter have the meanings commonly ascribed to them in the field of air pollution control.  In addition to the terms which are defined by the TCAA; and §§3.2, 101.1, and 114.1 of this title (relating to Definitions), the following words and terms, when used in this division shall have the following meanings, unless the context clearly indicates otherwise.

          (1)  Cost-effectiveness - The total dollar amount expended divided by the total number of tons of nitrogen oxides emissions reduction attributable to that expenditure.

          (2)  Guidelines - Texas Emissions Reduction Plan:  Guidelines for Emissions Reduction Incentive Grants Program (RG-388) adopted by the commission under Texas Health and Safety Code, §386.053, as amended.

          (3)  Incremental cost - The cost of an applicant’s project less a baseline cost that would otherwise be incurred by an applicant in the normal course of business and may include added lease or fuel costs as well as additional capital costs.

          (4)  Motor vehicle - A self-propelled device designed for transporting persons or property on a public highway that is required to be registered under Texas Transportation Code, Chapter 502.

          (5)  Non-road diesel - A vehicle or piece of equipment, excluding a motor vehicle or on-road diesel, that is powered by a non-road engine, including:  non-road non-recreational equipment and vehicles; construction equipment; locomotives; marine vessels; and other high-emitting diesel engine categories.

          (6)  Non-road engine - An internal combustion engine that is in or on a piece of equipment that is self-propelled or that propels itself and performs another function, excluding a vehicle that is used solely for competition, or a piece of equipment that is intended to be propelled while performing its function, or a piece of equipment designed to be and capable of being carried or moved from one location to another.

          (7)  On-road diesel - An on-road diesel-powered motor vehicle that has a gross vehicle weight rating of 8,500 pounds or more.

          (8)  Qualifying fuel - Any liquid or gaseous fuel or additives registered or verified by the EPA that is ultimately dispensed into a motor vehicle or on-road or non-road diesel that provides reductions of nitrogen oxides emissions beyond reductions required by state or federal law.

          (9)   Repower - To replace an old engine powering an on-road or non-road diesel with a new engine; a used engine; a remanufactured engine; or electric motors, drives, or fuel cells. 

          (10)  Retrofit - To equip an engine and fuel system with new emissions-reducing parts or technology verified by the EPA after manufacture of the original engine and fuel system.

          (11)  Small business - A business owned by a person who:

               (A)  owns and operates not more than two vehicles, one of which is:

                    (i)  an on-road diesel with a pre-1994 engine model; or

                    (ii)  a non-road diesel with an engine with uncontrolled emissions; and

               (B)  has owned the on-road or non-road diesel for more than one year.

Adopted January 28, 2004, Effective February 17, 2004.
***end tx 114.620***4-54***EPA-R06-OAR-2005-TX-0021***TX027***TXd63***h3c***


§114.621.  Applicability.
As adopted by TCEQ January 28, 2004, effective February 17, 2004 (4-54).
Approved by EPA August 19, 2005 (70 FR 48647) effective September 19, 2005 (TXd63).

     Any person that owns or leases, or intends to own or lease, one or more on-road or non-road diesels that operate, or will operate, within counties listed in §114.629 of this title (relating to Applicable Counties and Implementation Schedule) may apply for a grant under the diesel emissions reduction incentive program.  Subject to the criteria included in the commission’s Texas Emissions Reduction Plan:  Guidelines for Emissions Reduction Incentive Grants Program (RG-388), a person other than the owner or lessee may also apply for and receive a grant.

Adopted January 28, 2004, Effective February 17, 2004 (4-54).
***end tx 114.621***4-54***EPA-R06-OAR-2005-TX-0021***TX027***TXd63***h3c***


§114.622.  Incentive Program Requirements.
As adopted by TCEQ January 28, 2004, effective February 17, 2004 (4-54).
Approved by EPA August 19, 2005 (70 FR 48647) effective September 19, 2005 (TXd63).

     (a)  Eligible projects include:

          (1)  purchase or lease of on-road and non-road diesels;

          (2)  emissions-reducing retrofit projects for on-road or non-road diesels;

          (3)  emissions-reducing repower projects for on-road or non-road diesels;

          (4)  purchase and use of emissions-reducing add-on equipment for on-road or non-road diesels;

          (5)  development and demonstration of practical, low-emissions retrofit technologies, repower options, and advanced technologies for on-road or non-road diesels with lower nitrogen oxides (NOx) emissions;

          (6)  use of qualifying fuel;

          (7)  implementation of infrastructure projects;

          (8)  replacement of on-road and non-road diesels with newer on-road and non-road diesels; and

          (9)  other projects that have the potential to reduce anticipated NOx emissions from diesel engines.

     (b)  For a proposed project as listed in subsection (a) of this section, other than a project involving a marine vessel or engine, not less than 75% of vehicle miles traveled or hours of operation projected for the five years immediately following the award of a grant must be projected to take place in a nonattainment area or affected county of this state.

     (c)  For a proposed project that includes a replacement of equipment or a repower, the old equipment or engine must be recycled, scrapped, or otherwise removed from all counties listed in §114.629 of this title (relating to Applicable Counties and Implementation Schedule).

     (d)  To be eligible for a grant, the cost-effectiveness of a proposed project as listed in subsection (a) of this section, except for infrastructure projects and infrastructure purchases that are part of a broader retrofit, repower, replacement, or add-on equipment project, must not exceed $13,000 per ton of NOx emissions.

     (e)  Projects funded with a grant from this program may not be used for credit under any state or federal emissions reduction credit averaging, banking, or trading program except as provided under Texas Health and Safety Code, §386.056.

     (f)  A proposed project as listed in subsection (a) of this section is not eligible if it is required by any state or federal law, rule or regulation, memorandum of agreement, or other legally binding document.  This subsection does not apply to:

          (1)  an otherwise qualified project, regardless of the fact that the state implementation plan assumes that the change in equipment, vehicles, or operations will occur, if on the date the grant is awarded the change is not required by any state or federal law, rule or regulation, memorandum of agreement, or other legally binding document; or

          (2)  the purchase of an on-road diesel or equipment required only by local law or regulation or by corporate or controlling board policy of a public or private entity.

     (g)  A proposed retrofit, repower, replacement, or add-on equipment project must achieve a reduction in NOx emissions to the level established in the commission’s Texas Emissions Reduction Plan:  Guidelines for Emissions Reduction Incentive Grants Program (RG-388) for that type of project compared with the baseline emissions adopted by the commission for the relevant engine year and application.

     (h)  If a grant recipient fails to meet the terms of a project grant or the conditions of this division, the executive director can require that the grant recipient return some or all of the grant funding to the extent that emission reductions are not achieved or cannot be demonstrated.

     (i)  Criteria established in the guidelines, including revisions to the commission’s Texas Emissions Reduction Plan:  Guidelines for Emissions Reduction Incentive Grants Program (RG-388), apply to the Texas Emissions Reduction Plan program.  Notwithstanding the provisions of this chapter, as authorized under Texas Health and Safety Code, §386.053(d), revisions to the guidelines may include, among other changes, adding additional pollutants; adding stationary engines or engines used in stationary applications; adding vehicles and equipment that use fuels other than diesel; or adjusting eligible program categories; as appropriate, to ensure that incentives established under this program achieve the maximum possible emission reductions.

Adopted January 28, 2004, Effective February 17, 2004 (4-54).
***end tx 114.622***4-54***EPA-R06-OAR-2005-TX-0021***TX027***TXd63***h3c***


§114.623.  Small Business Incentives.
As adopted by TCEQ January 28, 2004, effective February 17, 2004 (4-54).
Approved by EPA August 19, 2005 (70 FR 48647) effective September 19, 2005 (TXd63).

     (a)  This section establishes a process to provide fast and simple access to grants for small businesses, in accordance with Texas Health and Safety Code, §386.116, as amended.

     (b)  The grant process for a small business may include:

          (1)  a simplified grant application and other forms;

          (2)  pre-approval or pre-authorization of certain types of grant purchases and expenses;

          (3)  a simplified expense reimbursement process, which may include procedures for the grant recipient to assign grant payments directly to the vendor; and

          (4)  promotional activities and instructional materials targeted at small businesses to encourage them to participate in the program and to inform them of how to access the grants.

     (c)  The commission’s Texas Emissions Reduction Plan:  Guidelines for Emissions Reduction Incentive Grants Program (RG-388) shall include details to implement methods identified in subsection (b) of this section.

     (d)  Other methods for providing fast and simple access to grants for small businesses may be developed through guidelines.

Adopted January 28, 2004, Effective February 17, 2004 (4-54).
***end tx 114.623***4-54***EPA-R06-OAR-2005-TX-0021***TX027***TXd63***h3c***


§114.626.  Monitoring, Recordkeeping, and Reporting Requirements.
As adopted by TCEQ August 22, 2001, effective September 13, 2001 (4-44).
Approved by EPA August 19, 2005 (70 FR 48647) effective September 19, 2005 (TXd63).

     Grant recipients must meet the reporting requirements of their grant which must occur no less frequently than annually.

Adopted August 22, 2001, Effective September 13, 2001 (4-44).
***end tx 114.626***4-44***EPA-R06-OAR-2005-TX-0021***TX027***TXd63***h3c***


§114.629.  Affected Counties and Implementation Schedule.
As adopted by TNRCC January 28, 2004, effective February 17, 2004 (4-54).
Approved by EPA August 19, 2005 (70 FR 48647) effective September 19, 2005 (TXd63).

     (a)  Applicable counties in the incentive program include:  Bastrop, Bexar, Brazoria, Caldwell, Chambers, Collin, Comal, Dallas, Denton, El Paso, Ellis, Fort Bend, Galveston, Gregg, Guadalupe, Harris, Hardin, Harrison, Hays, Henderson, Hood, Hunt, Jefferson, Johnson, Kaufman, Liberty, Montgomery, Nueces, Orange, Parker, Rockwall, Rusk, San Patricio, Smith, Tarrant, Travis, Upshur, Victoria, Waller, Williamson, Wilson, and any other county located within an area of Texas designated as a nonattainment area for ground-level ozone under Federal Clean Air Act, §107(d), as amended.

     (b) Equipment purchased before September 1, 2001 is not eligible for a grant under this program.

Adopted January 28, 2004, Effective February 17, 2004 (4-54).
***end tx 114.629***4-54***EPA-R06-OAR-2005-TX-0021***TX027***TXd63***h3c***
**************end texas chapter 114 subchapter k division 3***TXd63***h3c***