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.