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North Carolina’s emissions reduction program, created in 1995, actually predates both the Carl Moyer and TERP programs, and was established to achieve reductions in on- and off-road mobile source related emissions primarily for ozone and carbon monoxide. Grants are awarded by the Department of Environment and Natural Resources and are funded through a gasoline tax equal to 1/64 of a cent for each gallon of gasoline sold. 

During the first five years of the program, the vast majority of awards were for the conversion to or purchase of natural gas vehicles. In 2001 and 2002 the program was cancelled due to a statewide budget crisis. Since its restoration in 2003, annual distributions have averaged between $600,000 – $800,000 with most awards supporting the retrofitting of buses with Diesel Oxidation Catalysts as well as idle reduction or biodiesel related equipment. More information on the program is available at: www.ncair.org/motor/ms_grants.