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[Utah Code Table of Contents]
[TITLE 63. Table of Contents]
[CHAPTER 34. Table of Contents]
63-34-201 Title.
This part is known as the "Clean Fuels Conversion Program
Act."
2002
63-34-202 Definitions.
As used in this part:
(1) "Certified by the Air Quality Board" means that a motor vehicle on which conversion equipment has been installed meets the following criteria:
(a) before the installation of conversion equipment, the motor vehicle does not exceed the emission cut points for a transient test driving cycle, as specified in 40 CFR 51, Appendix E to Subpart S, or an equivalent test for the make, model, and year of the motor vehicle;
(b) the motor vehicle's emissions of regulated pollutants, when operating with clean fuel, is less than the emissions were before the installation of conversion equipment; and
(c) a reduction in emissions under Subsection (1)(b) is demonstrated by:
(i) certification of the conversion equipment by the federal Environmental Protection Agency or by a state whose certification standards are recognized by the Air Quality Board;
(ii) testing the motor vehicle, before and after the installation of the conversion equipment, in accordance with 40 CFR 86, Control of Air Pollution from New and In-use Motor Vehicle Engines: Certification and Test Procedures, using all fuel the motor vehicle is capable of using; or
(iii) any other test or standard recognized by Air Quality Board rule.
(2) "Clean fuel" means:
(a) propane, compressed natural gas, or electricity;
(b) other fuel the Air Quality Board determines to be at least as effective as fuels under Subsection (2)(a) in reducing air pollution; or
(c) other fuel that meets the clean-fuel vehicle standards in the federal Clean Air Act Amendments of 1990, 42 U.S.C. Sec. 7521 et seq.
(3) "Clean-fuel vehicle" means a vehicle that:
(a) uses a clean fuel; and
(b) meets clean-fuel vehicle standards in the federal Clean Air Act Amendments of 1990, 42 U.S.C. Sec. 7521 et seq.
(4) "Fund" means the Clean Fuels Vehicle Fund created in Section 63-34-203 .
(5) "Government vehicle" means a motor vehicle registered in Utah and owned and operated by the state, a public trust authority, a school district, a county, a municipality, a town, or a city, including a metropolitan rapid transit motor vehicle, bus, truck, law enforcement vehicle, or emergency vehicle.
(6) "Incremental cost" means the difference between the cost of the OEM vehicle and the same vehicle model manufactured without the clean-fuel fueling system.
(7) "OEM vehicle" means a vehicle manufactured by the original vehicle manufacturer or its contractor to use a clean fuel.
(8) "Private sector business vehicle" means a motor vehicle registered in Utah that is owned and operated solely in the conduct of a private business enterprise.
(9) "Refueling equipment" means compressors when used
separately, compressors used in combination with cascade
tanks, and other equipment that constitute a central refueling
system capable of dispensing vehicle fuel.
2002
63-34-203 Clean Fuels Vehicle Fund - Contents - Loans or grants made with fund monies.
(1) (a) There is created a revolving fund known as the Clean Fuels Vehicle Fund.
(b) The fund consists of:
(i) appropriations to the fund;
(ii) other public and private contributions made under Subsection (1)(d);
(iii) interest earnings on cash balances; and
(iv) all monies collected for loan repayments and interest on loans.
(c) All money appropriated to the fund is nonlapsing.
(d) The department may accept contributions from other public and private sources for deposit into the fund.
(2) (a) The department may make loans or grants with monies available in the fund for:
(i) the conversion of private sector business vehicles and government vehicles to use a clean fuel, if certified by the Air Quality Board; or
(ii) the purchase of OEM vehicles for use as private sector business vehicles or government vehicles.
(b) The amount of a loan for any vehicle may not exceed:
(i) the actual cost of the vehicle conversion;
(ii) the incremental cost of purchasing the OEM vehicle; or
(iii) the cost of purchasing the OEM vehicle if there is no documented incremental cost.
(c) The amount of a grant for any vehicle may not exceed:
(i) 50% of the actual cost of the vehicle conversion minus the amount of any tax credit claimed under Section 59-7-605 or 59-10-127 for the vehicle for which a grant is requested; or
(ii) 50% of the incremental cost of purchasing an OEM vehicle minus the amount of any tax credit claimed under Section 59-7-605 or 59-10-127 for the vehicle for which a grant is requested.
(d) (i) Subject to the availability of monies in the fund, the department may make loans for the purchase of vehicle refueling equipment for private sector business vehicles and government vehicles.
(ii) The maximum amount loaned per installation of refueling equipment may not exceed the actual cost of the refueling equipment.
(3) Administrative costs of the fund shall be paid from the fund.
(4) (a) The fund balance may not exceed $10,000,000.
(b) Interest on cash balances and repayment of loans in excess of the amount necessary to maintain the fund balance at $10,000,000 shall be deposited in the General Fund.
(5) (a) Loans made from monies in the fund shall be supported by loan documents evidencing the intent of the borrower to repay the loan.
(b) The original loan documents shall be filed with the
Division of Finance and a copy shall be filed with the department.
2002
63-34-204 Department duties - Rulemaking - Loan repayment.
(1) The department shall:
(a) establish and administer the loan and grant program to encourage government officials and private sector business vehicle owners and operators to obtain and use clean-fuel vehicles; and
(b) make rules in accordance with Title 63, Chapter 46a, Utah Administrative Rulemaking Act:
(i) specifying the amount of money in the fund to be dedicated annually for grants;
(ii) limiting the amount of a grant given to any person claiming a tax credit under Section 59-7-605 or 59-10-127 for the motor vehicle for which a grant is requested to assure that the sum of the tax credit and grant does not exceed:
(A) 50% of the incremental cost of the OEM vehicle; or
(B) 50% of the cost of conversion equipment;
(iii) limiting the number of motor vehicles per fleet operator that may be eligible for a grant in a year;
(iv) specifying criteria the department shall consider in prioritizing and awarding loans and grants;
(v) specifying repayment periods;
(vi) specifying procedures for:
(A) awarding loans and grants; and
(B) collecting loans; and
(vii) requiring all loan and grant applicants to:
(A) apply on forms provided by the department;
(B) agree in writing to use the clean fuel for which each vehicle is converted or purchased using loan or grant proceeds for a minimum of 70% of the vehicle miles traveled beginning from the time of conversion or purchase of the vehicle;
(C) agree in writing to notify the department if a vehicle converted or purchased using loan or grant proceeds becomes inoperable through mechanical failure or accident and to pursue a remedy outlined in department rules;
(D) provide reasonable data to the department on vehicles converted or purchased with loan or grant proceeds; and
(E) submit vehicles converted or purchased with loan or grant proceeds to inspections by the department as required in department rules and as necessary for administration of the loan and grant program.
(2) (a) When developing repayment schedules for the loans, the department shall consider the projected savings from use of the clean-fuel vehicle.
(b) A repayment schedule may not exceed ten years.
(c) Loans made from the fund for private sector vehicles shall be made at an interest rate equal to the annual return earned in the state treasurer's Public Treasurer's Pool as determined the month immediately preceding the closing date of the loan.
(d) Loans made from the fund for government vehicles shall be made at a zero interest rate.
(3) The Division of Finance is responsible for collection
of and accounting for the loans and has custody of all loan
documents, including all notes and contracts, evidencing
the indebtedness of the fund.
2002
