Off topic, but if you see the new Transformers movie you'll get a quick glimpse of a Volvo EC700C on a cargo ship. He's one of the Decepticons that dives into the ocean to fish out their leader and bring him back to life.
He takes one for the team when the others use him for spare parts to repair Megatron.
My first thought was that maybe Megatron is Tier IV already and they were scrapping our guy for TERP money.
I need to start leaving work at work.
Monday, June 29, 2009
Monday, June 22, 2009
When Can I Buy?
When you sell things for a living (heavy equipment and otherwise) that's a question that never gets old. It's a crucial one when it comes to TERP grants.
Buying equipment at the wrong time disqualifies it from receiving TERP funding.
In the early days of the program buyers could apply on units they purchased up to a year prior. That changed a few rounds back, but for those who don't follow the system's developments it can still come as a surprise.
Once a round starts it's open season. Not one day before.
For instance, the most recent round opened on December 20th, 2008. In that round you could apply for a grant on any equipment purchased starting on that date. If you bought an excavator on December 19th, 2008 then it was not eligible for that round.
Most people applied and waited for the results before buying which is completely understandable given the current economic climate.
So who can buy right now and be TERP eligible?
Buying equipment at the wrong time disqualifies it from receiving TERP funding.
In the early days of the program buyers could apply on units they purchased up to a year prior. That changed a few rounds back, but for those who don't follow the system's developments it can still come as a surprise.
Once a round starts it's open season. Not one day before.
For instance, the most recent round opened on December 20th, 2008. In that round you could apply for a grant on any equipment purchased starting on that date. If you bought an excavator on December 19th, 2008 then it was not eligible for that round.
Most people applied and waited for the results before buying which is completely understandable given the current economic climate.
So who can buy right now and be TERP eligible?
- Those approved in the most recent round that ended February 20th, 2009.
- Those approved in previous years' rounds who either have time left on their original contract or an official extension from the state.
Wednesday, June 17, 2009
Now What?
What should you be doing now?
If you've been approved for a TERP grant I'd suggest checking out this area of the TCEQ's TERP site.
You can get a look at how the process unfolds and have some kind of understanding even before the state's packet hits your doorstep. Their pdf files go beyond just the next step which is signing the contract accepting the grant.
If you're unsure of your status because no call has come as of yet you can be patient and continue to wait or - if you're ready to move forward on a purchase ASAP - you can call the help line the TCEQ set up. That number is 800-919-TERP (8377).
I only mention waiting because I know they have a long list of people to contact and if you're in a holding pattern as far as buying anyway you can save those folks some time and effort.
If you got approved on a contingency basis I honestly don't know what you can do other than wait.
In the previous post you saw the breakdown. You may still end up with a grant if those approved outright turn down their funding. The question is: how soon could that be?
We have seen customers in all three situations. If I hear of somebody on the contingency list being bumped up to grant recipient I'll post it here. If you or somebody you know gets moved please feel free to tell me what you can via comment or email.
If you've been approved for a TERP grant I'd suggest checking out this area of the TCEQ's TERP site.
You can get a look at how the process unfolds and have some kind of understanding even before the state's packet hits your doorstep. Their pdf files go beyond just the next step which is signing the contract accepting the grant.
If you're unsure of your status because no call has come as of yet you can be patient and continue to wait or - if you're ready to move forward on a purchase ASAP - you can call the help line the TCEQ set up. That number is 800-919-TERP (8377).
I only mention waiting because I know they have a long list of people to contact and if you're in a holding pattern as far as buying anyway you can save those folks some time and effort.
If you got approved on a contingency basis I honestly don't know what you can do other than wait.
In the previous post you saw the breakdown. You may still end up with a grant if those approved outright turn down their funding. The question is: how soon could that be?
We have seen customers in all three situations. If I hear of somebody on the contingency list being bumped up to grant recipient I'll post it here. If you or somebody you know gets moved please feel free to tell me what you can via comment or email.
Tuesday, June 16, 2009
Who Was Approved?
This is the breakdown according to the state:
That means there are 106 applications essentially on hold and they will be funded as any of the 217 approvals decide to decline their grant.
Although I don't have the exact breakdown for the last few years I'm pretty confident the percentage of funded applications took a dive this time.
This round was not one of the larger ones in terms of dollars available and as interest has grown so has the level of competition. Having more requests than money will do that.
Congratulations to those who received approval.
- They received 1,054 TERP grant applications.
- 806 applications met the specified criteria to be considered for funding.
- 217 of those were offered TERP grants.
- 106 others were held as contingency options.
That means there are 106 applications essentially on hold and they will be funded as any of the 217 approvals decide to decline their grant.
Although I don't have the exact breakdown for the last few years I'm pretty confident the percentage of funded applications took a dive this time.
This round was not one of the larger ones in terms of dollars available and as interest has grown so has the level of competition. Having more requests than money will do that.
Congratulations to those who received approval.
Friday, June 12, 2009
The Calls Have Started
A customer has contacted us to report he's been approved.
I'm not sure what the cost/ton cutoff is since that company actually went in at one of the lower numbers we submitted. I have a call into the state and will know more later.
For now the main thing is that the calls have started.
I don't know what order, if any, they call people in, but if you don't hear from them today don't get too worried. They usually have a lot of folks to contact.
When we do get a cutoff on the cost/ton remember that you have to meet the other program guidelines. If you submitted a cost/ton lower than the cutoff on your TERP grant application you aren't 100% locked in for a grant. You have to meet all the guidelines they lay out.
I'm not sure what the cost/ton cutoff is since that company actually went in at one of the lower numbers we submitted. I have a call into the state and will know more later.
For now the main thing is that the calls have started.
I don't know what order, if any, they call people in, but if you don't hear from them today don't get too worried. They usually have a lot of folks to contact.
When we do get a cutoff on the cost/ton remember that you have to meet the other program guidelines. If you submitted a cost/ton lower than the cutoff on your TERP grant application you aren't 100% locked in for a grant. You have to meet all the guidelines they lay out.
Wednesday, June 10, 2009
Location, Location, Location
A customer called with a good question today. His office is not in one of the EPA’s non-attainment counties, but his job site is. Can he apply to replace his machines under the TERP grant rules?
Yes.
Pushing paperwork around the office doesn’t really produce emissions. Pushing tons of rock and dirt around the job site does. The state cares where the machine operates.
If you aren’t sure which counties are eligible you can take a look at our TERP overview page. The state’s TERP page also lists these.
Before you apply for a round it would be worth your while to verify that your county is on the list.
Yes.
Pushing paperwork around the office doesn’t really produce emissions. Pushing tons of rock and dirt around the job site does. The state cares where the machine operates.
If you aren’t sure which counties are eligible you can take a look at our TERP overview page. The state’s TERP page also lists these.
Before you apply for a round it would be worth your while to verify that your county is on the list.
Monday, June 8, 2009
When Does The Clock Start?
Let’s say you applied for TERP funding and received an ERIG grant with a 7-year term. What exactly does that mean? When does that term officially begin?
Your 7 years (or 5 if you applied for the shorter contract length) start after you scrap your old machine and the state approves your disposition paperwork and photos.
In many cases the newly purchased piece of replacement equipment could have been on the job for months before you start the 7-year obligation. That means you’ll own and operate your equipment for the agreed-to number of hours for MORE than 7 years.
That is one reason we encourage folks to submit their request for reimbursement and disposition forms sooner rather than later, especially if they tend to put significant wear on a machine.
If nothing else be aware that your TERP grant term does not start the day the new machine arrives at your location unless you have already gone through the steps previously mentioned. That’s not the norm since people usually want their old units running up until the day the new one can take its place.
Your 7 years (or 5 if you applied for the shorter contract length) start after you scrap your old machine and the state approves your disposition paperwork and photos.
In many cases the newly purchased piece of replacement equipment could have been on the job for months before you start the 7-year obligation. That means you’ll own and operate your equipment for the agreed-to number of hours for MORE than 7 years.
That is one reason we encourage folks to submit their request for reimbursement and disposition forms sooner rather than later, especially if they tend to put significant wear on a machine.
If nothing else be aware that your TERP grant term does not start the day the new machine arrives at your location unless you have already gone through the steps previously mentioned. That’s not the norm since people usually want their old units running up until the day the new one can take its place.
Tuesday, June 2, 2009
Do State TERP Inspectors Really Visit Job Sites?
Yes. I can't be any more clear about it.
The TCEQ administers hundreds of millions of dollars through the TERP program trying to attain federal air quality standards. Just handing out checks and hoping everybody adheres to the honor system is not an option for them.
That having been said, I've never heard of the inspectors arriving on a job site with malicious intentions. For the most part they want to verify the information in your application.
Did you scrap the machine you said? Is the new machine the kind you filed on your reimbursement? Is it working in the place and the number of hours listed? If you're behind on hours can you anticipate making them up?
They want to know if you relocate the unit. They track emission reductions in each county and want their math to be correct. They REALLY want to know if you take a TERP-funded machine to a county not included in the program.
I've heard stories of TERP administrators on a job site helping answer questions and assisting with paperwork.
The point here is that they have a job to do and expect grant recipients to follow the guidelines. You should take their visit seriously answer their questions, but I've never heard of them being "out to get" anybody, especially those doing their best to follow the rules.
The visits are random and the inspectors spread out across the state trying to visit as many people as possible, but the sheer volume of grant recipients keeps them from reaching every location. They normally call ahead before arriving.
The TCEQ administers hundreds of millions of dollars through the TERP program trying to attain federal air quality standards. Just handing out checks and hoping everybody adheres to the honor system is not an option for them.
That having been said, I've never heard of the inspectors arriving on a job site with malicious intentions. For the most part they want to verify the information in your application.
Did you scrap the machine you said? Is the new machine the kind you filed on your reimbursement? Is it working in the place and the number of hours listed? If you're behind on hours can you anticipate making them up?
They want to know if you relocate the unit. They track emission reductions in each county and want their math to be correct. They REALLY want to know if you take a TERP-funded machine to a county not included in the program.
I've heard stories of TERP administrators on a job site helping answer questions and assisting with paperwork.
The point here is that they have a job to do and expect grant recipients to follow the guidelines. You should take their visit seriously answer their questions, but I've never heard of them being "out to get" anybody, especially those doing their best to follow the rules.
The visits are random and the inspectors spread out across the state trying to visit as many people as possible, but the sheer volume of grant recipients keeps them from reaching every location. They normally call ahead before arriving.
Monday, June 1, 2009
How Big Will My Grant Be?
It’s the first question people ask when considering whether to file for a TERP grant be it the ERIG or Rebate Grant program – and with good reason. Filing is an involved process and it should be worth your while.
Here's a brief overview. The two programs take different approaches.
Rebate grants use charts the state updates each round to assign a value. You only need to know the model year and horsepower of the existing unit and its replacement to estimate your grant. Rebate grants are less complicated to file, but they also will usually bring less money. If your machine normally racks up significant operating hours each year the Emissions Reduction Incentive Grant is a better paying option.
Why is that?
The ERIG system takes more factors into consideration. When doing an estimate for this program we plug in the following for both machines: NOx emission factor (determined by EPA tier level rating and range of horsepower), gross horsepower, annual hours of usage and the dollar amount you want to be paid for every ton of emission you DON'T put in the air with your newer, cleaner engine.
As you probably noticed hours of annual use is one of the multipliers. All other factors being equal a machine that operates 2,000 hours a year will receive a grant twice as large as a machine that operates 1,000 hours a year in the ERIG program. Hours of annual use do not affect the size of Rebate Grants.
When estimating what your grant would pay (if approved) you may want to leave no stone unturned and run the numbers for both programs, especially if you are new to this.
I can tell you that normally people who run machines around 600 hours a year do better filing Rebate Grants. People who run machines 1,500 hours or more get more from ERIG. That having been said, it's doesn't hurt to run the numbers on both to be sure, especially if your hours fall somewhere in between.
Again, here is the info you needed to do a TERP estimate:
Rebate Grant
Old/existing unit's (engine) model year
Old/existing unit's gross horsepower
New/replacement unit's (engine) model year
New/replacement unit's gross horsepower
ERIG
Old/existing unit’s (engine) model year
Old/existing unit’s gross horsepower
Old/existing unit’s annual hours of usage averaged over the last two years
New/replacement unit’s (engine) model year
New/replacement unit’s gross horsepower
New/replacement unit’s projected annual hours of usage
NOx rating for both machines*
*This is determined using the model year and horsepower. If taking advantage of our free estimates this is not required - we'll use the other info and plug the rating in.
Finally, sometimes it is helpful to have serial numbers for the estimate. If you aren't sure of a model year or horsepower then a reference guide can help you see where one model year ended and the next began.
If you decide to file you'll need the serials for the unit and the engine anyway.
Here's a brief overview. The two programs take different approaches.
Rebate grants use charts the state updates each round to assign a value. You only need to know the model year and horsepower of the existing unit and its replacement to estimate your grant. Rebate grants are less complicated to file, but they also will usually bring less money. If your machine normally racks up significant operating hours each year the Emissions Reduction Incentive Grant is a better paying option.
Why is that?
The ERIG system takes more factors into consideration. When doing an estimate for this program we plug in the following for both machines: NOx emission factor (determined by EPA tier level rating and range of horsepower), gross horsepower, annual hours of usage and the dollar amount you want to be paid for every ton of emission you DON'T put in the air with your newer, cleaner engine.
As you probably noticed hours of annual use is one of the multipliers. All other factors being equal a machine that operates 2,000 hours a year will receive a grant twice as large as a machine that operates 1,000 hours a year in the ERIG program. Hours of annual use do not affect the size of Rebate Grants.
When estimating what your grant would pay (if approved) you may want to leave no stone unturned and run the numbers for both programs, especially if you are new to this.
I can tell you that normally people who run machines around 600 hours a year do better filing Rebate Grants. People who run machines 1,500 hours or more get more from ERIG. That having been said, it's doesn't hurt to run the numbers on both to be sure, especially if your hours fall somewhere in between.
Again, here is the info you needed to do a TERP estimate:
Rebate Grant
Old/existing unit's (engine) model year
Old/existing unit's gross horsepower
New/replacement unit's (engine) model year
New/replacement unit's gross horsepower
ERIG
Old/existing unit’s (engine) model year
Old/existing unit’s gross horsepower
Old/existing unit’s annual hours of usage averaged over the last two years
New/replacement unit’s (engine) model year
New/replacement unit’s gross horsepower
New/replacement unit’s projected annual hours of usage
NOx rating for both machines*
*This is determined using the model year and horsepower. If taking advantage of our free estimates this is not required - we'll use the other info and plug the rating in.
Finally, sometimes it is helpful to have serial numbers for the estimate. If you aren't sure of a model year or horsepower then a reference guide can help you see where one model year ended and the next began.
If you decide to file you'll need the serials for the unit and the engine anyway.
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