New legislation from the 2015 84th Texas Legislative Session will reduce the Texas Emissions Reduction Plan (TERP) fees on the purchase or lease of non-road equipment, beginning September 1, 2015. The TERP fee reduction will make buying and renting heavy equipment more affordable for all customers.
Surcharges on heavy equipment provide funding for TERP, a nationally recognized grant program designed to accelerate fleet turnover, reduce diesel emissions, increase the use of alternative fuels for transportation, and improve air quality for all Texans.
Since TERP was established in 2001, the Diesel Emissions Reduction Incentive (DERI) grant program has awarded over $905 million to 9,580 projects — replacing or upgrading over 15,623 vehicles and heavy equipment.
In the past year, HOLT CAT worked extensively with state legislators and other Texas Cat dealers to push legislation that will provide a 25% reduction in long-standing fees on the sale or lease of non-road equipment powered by diesel engines. This reduction will result in substantial savings for HOLT customers, ranging from approximately $250 to $2,500, on a variety of models.
“This positive change will provide even greater value to our customers while sustaining an important program that protects air quality,” said Paul Hensley, Senior Vice President of Finance and Chief Financial Officer for HOLT CAT.
Through these legislative efforts, HOLT CAT has also worked with a diverse group of government, non-profit and industry-based representatives to successfully advocate for an increase in TERP grant funds of $80 million for the upcoming biennium. Approximately $40 million of this increase will be added to the grant pool for diesel projects, which will make it easier for interested customers to receive grant awards as HOLT continues to assist them with TERP applications.