By Cyrus Reed, Conservation Director
At a recent legislative hearing of the House Committee on Environmental Regulation concerning ozone pollution, the Sierra Club and Public Citizen had a slightly different message than the lobbyists from the Texas Oil and Gas Association and the Texas Association of Manufacturers about the costs of ozone regulation.
Those two well-funded lobbying entities said - predictably - that requiring compliance with regulations that help to clean up the air is very costly, while public interest and environmental groups said not cleaning up the air is incredibly costly -- to the health of Texans.
But on one point we all agreed: the Texas Legislature should absolutely collect and appropriate money for the Texas Emissions Reduction Plan (TERP) to help clean up the dirty, smoggy air over our major cities. While TERP has a variety of programs designed to get cleaner motors and vehicles on our roads, and dirtier ones off it, one program that was funded and will be available this summer is the “Light-Duty Motor Vehicle Purchase or Lease Incentive Program.” This program gives a break to new car owners (or leasers) who decide to purchase a plug-in electric vehicle or plug-in hybrid. Similar rebates are also available to those wanting to buy new cars that run on hydrogen fuel cells, compressed natural gas, or liquefied petroleum gas (LPG). This incentive, which can range from $2,500 to $5,000 depending on the type of vehicles, should be available sometime this summer.
What Is TERP & Where Did This Incentive Come From?
TERP is a set of incentive programs run by the Texas Commission on Environmental Quality (TCEQ). It came from legislation passed in 2001 as a way to deal with pollution from older on-road and off-road vehicles, while also supporting new cleaner technologies. In essence, it is a voluntary means to clean up the air, as federal standards on vehicles and tighter permitting requirements on large industry also help clean up the air.
Through the years, new legislation made tweaks and added programs, and a coalition of groups - including the Sierra Club - successfully lobbied the Texas Legislature to not only extend TERP until we actually meet health-based ozone (smog) standards, but add several programs, including the “light-duty motor vehicle” program. (SB 1731).
TERP has been very successful, and SB 1731 was a big victory for clean air.The TCEQ estimates that more than 170,000 tons of nitrogen oxide have been removed from our skies because of TERP’s main programs since it first came into existence in 2001. Nonetheless, a continual issue has been the Legislature’s failure to fully appropriate funds intended for TERP. Indeed, the Texas Comptroller of Public Accounts reports that approximately $1.6 billion in various fees and surcharges sits in the TERP account but cannot be spent until, and if, the Legislature allows TCEQ to spend it.
So Why Can’t I Get My State Rebate Right Now?
Hold your horse powers! State rules take time. Earlier this year, TCEQ commissioners took public comment and adopted the rules for the program, which have just been published in the Texas Register. Next, TCEQ has asked manufacturers for a list of all new vehicles that meet the technology requirements to be on the eligible list. Once they have received that - and confirmed the vehicles meet the requirements - TCEQ will put the list on its website.
So Who Would Be Eligible?
Only vehicles purchased or leased in Texas that are on that to-be-drafted TCEQ list are eligible for the incentive. Also, the vehicle must be physically able to be sold in Texas through a dealership. Which means that cars sold directly from another state (sorry Tesla fans) will not be eligible. For those purchasing cars, the rebate will go directly to the buyer;for those leasing, it may be worked into the lease deal.
Stay tuned to how to get your state rebate. You can also check TCEQ’s website for updates on TERP programs.