And By Soon I Meant Today, I Guess

About 30 seconds ago word came down that we have a customer approval on the Heavy-Duty Vehicle and Equipment Grant Program.

We can't be sure exactly when the calls started, how far down the list they are or even how long the list is. The important part is that folks are getting the good news.

Hopefully you'll get a similar call.

More Contingency Calls, HDVEG Should Be Soon

Another customer reports being bumped from the contingency list of the most recent TERP round to being a full approval. Congratulations to those who find themselves in the same boat.

I'd be curious to see how many of those upgrades come from 2009 TERP grants being turned down and how many are from expired opportunities of previous rounds. Unforutnately, there is probably some money returning to the system from those who couldn't meet the hour requirements they submitted on their orignial TERP application.

As a side note, if you find yourself facing that problem get in touch with the state ASAP. From all reports I've gotten they do their best to work with you. In at least one case they extended the contract beyond the 7 years. They want this program to work.

As for the Heavy-Duty Vehicle and Equipment Grant Program, they should be pretty close to starting notifications. The North Central Texas Council of Governments does their monthly review so all of the earliest applicants will learn their fate all at once.

Contingency Calls Starting

If you got approved on a contingency basis on the most recent TERP grant round you may be getting a call soon - at least if you're one of the ones bumped up to receiving a grant.

A customer of ours notified us they had been on what amounts to the stand-by list and are now moving forward with the grant process after notification from the state.

Of course, not everybody will get this call, but for those who will the process has started.

Good luck.

End of the Round Drawing Near

I don't think anybody following the Heavy-Duty Vehicle and Equipment Grant Program offered by the NCTCOG thought it would last through their final deadline of March 26, 2010. In fact, it appears to be close to wrapping up.

Their website can only update official numbers. Those pass final review once a month (last update 7-24-09) so don't put stock in the posted dollar amount representing the here and now.

I talked to their office Monday and while they didn't have an exact dollar amount on hand they did give me the ballpark figure of around $1 million left.

How long will that last?

It could extend the program another week. Or a single application could take every penny of that. We've helped customers get grants that large before. It's not impossible.

This Friday's 5pm deadline could likely be the last.

Important Link I Forgot To Include

In the last post I mentioned a new grant round very similar to TERP and didin't link to the NCTCOG's page for construction equipment filing.

Well, here you go.

We've already filed some and work is underway on a few more. I'm (obviously) looking forward to hearing back on those.

TERP-ish Grant Round Opens

The North Central Texas Council of Governments and TCEQ are funding a $5 million grant round for North Texas only. It is VERY similar to the TERP setup and is called the Heavy-Duty Vehicle and Equipment Grant Program.

Eligible counties include: Dallas, Tarrant, Denton, Collin, Rockwall, Parker, Kaufman, Johnson and Ellis.

Public and private entities can apply. They are using what they call a "modified first-come, first-serve" format. We've seen this one other time in North Texas and what it means is that instead of waiting for a single deadline months from now when everybody will submit their applications all at once the state will accept them each Friday.

In other words, get your act together and get in line.

The previous occurence I mentioned allowed people to sell their old machine out of the state, but that is not the case this time. You have to scrap it, but the maximum cost per ton has been raised to $10,000 like the ERIG program.

So, while this is not a TERP grant in the strictest of terms it is about as close as you can get. The main difference is that the funding does not come from the diesel tax, but from the ARRA stimulus money.

All purchases must be complete by April 30th of next year. Since the round is currently underway any machine purchased now is eligible assuming it meets the normal criteria.

Scrapping Your Old Machine

The whole point of the TERP grant system (from the state’s perspective) is scrapping the old, dirtier unit. There was a time you could sell your old piece of heavy equipment outside Texas if the new owner agreed it would never return, but those days are long gone. Scrapping is now your only option.

Your 5- or 7-year contracted term does not begin until the TCEQ receives, processes and approves your disposition paperwork and supporting photographs. For some that may not seem like a big deal, but if you put a lot of wear on your construction equipment this is worth knowing.

Let’s say you purchased a new wheel loader the day the TERP round opened in December of last year – the first eligible day to buy – and then received your approval call in June. You already have 6 months of wear. If you wait a month or two to file your request for reimbursement and then another to officially scrap the old piece you are in the ballpark of 9 months of wear on that new loader before the term of your contract starts.

If you keep machines 10+ years or they work light duty then this isn’t such a big deal. If you expect to replace your new TERP-funded equipment as soon as your commitment ends it’s something to be aware of.

This document gives an overview of how to scrap. Page 7 has the answers to some common questions and you’ll see some photo examples after that.

Here is the disposition form you (or a consultant) will fill out and submit. It’s more or less self-explanatory, but don’t be shy about asking questions since they have to approve your disposition before starting your term.

A few customers have told me they used companies experienced in TERP scrapping to handle that part which would let you take care of disposition and selling the old iron in one step. Other customers held on to their old unit and parted it out for similar machines still running.

There's something to be said for holding on to a machine until you get the TCEQ's approval of your scrapping efforts.

Just remember you have to drill a 3-inch hole in the engine block and it cannot be through a replaceable plate. You also have to cut at least 75% of the frame in a V-cut. The closer to the cab, the better.

Don’t forget before and after pictures that include the engine plate proving that you are destroying the correct machine.