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SB 68
CLEAN FUELS LOAN PROGRAM AMENDMENTS
1996 GENERAL SESSION
STATE OF UTAH
Sponsor: LeRay McAllister
AN ACT RELATING TO HEALTH AND ENVIRONMENT; COMBINING THE PUBLIC AND
PRIVATE SECTOR CLEAN FUEL LOAN FUNDS INTO ONE FUND; AMENDING
CERTAIN PROVISIONS OF THE COMBINED FUNDS AND THE LOAN PROGRAM;
APPROPRIATING FROM THE GENERAL FUND TO THE LOAN FUND $330,000 AS
NONLAPSING FOR FISCAL YEAR 1996-97; AND PROVIDING AN EFFECTIVE DATE.
This act affects sections of Utah Code Annotated 1953 as follows:
AMENDS:
9-1-702 , as renumbered and amended by Chapters 66 and 249, Laws of Utah 1993
9-1-703 , as last amended by Chapter 129, Laws of Utah 1994
9-1-706 , as renumbered and amended by Chapters 66 and 249, Laws of Utah 1993
REPEALS:
9-1-704 , as last amended by Chapter 129, Laws of Utah 1994
9-1-705 , as renumbered and amended by Chapters 66 and 249, Laws of Utah 1993
Be it enacted by the Legislature of the state of Utah:
Section 1.
Section
9-1-702
is amended to read:
9-1-702. Definitions.
As used in this part:
(1) "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 (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, Title II.
(2) "Clean-fuel vehicle" means a vehicle that uses a clean fuel and that meets clean-fuel
vehicle standards in the federal Clean Air Act Amendments of 1990, Title II.
(3) "Fund" means the Clean Fuels Vehicle Loan Fund created in Section 9-1-703
.
[(3)] (4) "Government vehicle" means a motor vehicle registered in Utah and owned and
operated by the state, a public trust authority, a county, a municipality, a town, or a city, including
metropolitan rapid transit motor vehicles, buses, trucks, law enforcement vehicles, and emergency
vehicles.
[(4)] (5) "Incremental costs" means the difference between the cost of the OEM vehicle and
the same vehicle model manufactured without the clean-fuel fueling system.
[(5)] (6) "OEM vehicle" means a vehicle manufactured by the original vehicle manufacturer
or its contractor to use a clean fuel [as the dedicated vehicle fuel].
[(6) "Private sector fund" means the Clean Fuels Private Sector Vehicle Loan Fund created
in Section 9-1-703
.]
[(7) "Private sector program" means the Clean Fuels Private Sector Vehicle Loan Program
created in Section 9-1-706
.]
[(8)] (7) "Private sector business vehicle" means one or more motor vehicles registered in
Utah that are owned and operated solely in the conduct of a private business enterprise.
[(9) "Public sector fund" means the Clean Fuels Public Sector Vehicle Loan Fund created
in Section 9-1-704
.]
[(10) "Public sector program" means the Clean Fuels Public Sector Loan Program created
in Section 9-1-706
.]
[(11)] (8) "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.
Section 2.
Section
9-1-703
is amended to read:
9-1-703. Clean Fuels Vehicle Loan Fund -- Creation -- Funding.
(1) (a) There is created a revolving fund known as the Clean Fuels [Private Sector] Vehicle
Loan Fund.
(b) The [private sector] fund consists of:
(i) appropriations to the[ private sector] fund;
- 2 -
(ii) other public and private contributions made under Subsection (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 [private sector] fund is nonlapsing.
(d) The department may accept contributions from other public and private sources for
deposit into the [private sector] fund.
(2) (a) Monies available in the [private sector] fund may be loaned by the department for
expenses for:
(i) the conversion of private sector business vehicles and government vehicles to use a clean
fuel; or
(ii) to purchase OEM vehicles.
(b) The amount loaned per vehicle may not exceed [the lesser of]:
(i) [(A)] the actual cost of the vehicle conversion if loaned under Subsection (a)(i);
[(B)] (ii) the incremental cost of purchasing the OEM vehicle if loaned under Subsection
(a)(ii); or
[(C)] (iii) the cost of purchasing the OEM vehicle if the purchase cost is loaned under
Subsection (2)(a)(ii) and there is no documented incremental cost[; and].
[(ii) (A) $4,500 for vehicles with a gross vehicle weight rating of 10,000 pounds or less;]
[(B) $8,000 for vehicles with a gross vehicle weight rating of 10,001 pounds through 16,000
pounds;]
[(C) $15,000 for vehicles with a gross vehicle weight rating of 16,001 pounds through
20,000 pounds; or]
[(D) $36,000 for vehicles with a gross vehicle weight rating of 20,001 pounds or greater.]
(c) (i) Subject to the availability of funds in the [private sector] fund, monies may be loaned
by the division 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 this refueling equipment [or $250,000, whichever is less].
- 3 -
(3) Administrative costs of the [private sector] fund shall be paid from the [private sector]
fund.
(4) (a) The [private sector] fund balance may not exceed [$5,000,000] $10,000,000.
(b) Interest on cash balances and repayment of loans in excess of the amount necessary to
maintain the [private sector] fund balance at [$5,000,000] $10,000,000 shall be deposited in the
General Fund.
(5) (a) Expenditures from the [private sector] 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 with
the department.
Section 3.
Section
9-1-706
is amended to read:
9-1-706. Rulemaking -- Department duties -- Loan repayment.
(1) The department shall:
(a) [(i)] establish and administer the [public sector] loan program to encourage government
officials [to obtain and use clean-fuel vehicles; and (ii) establish and administer the private sector
program to encourage] 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, to establish criteria and conditions for:
(i) the amount loaned per incremental costs of:
(A) vehicle conversion to clean fuel or OEM purchase or lease; and
(B) purchase, or lease and installation of refueling equipment;
[(i)] (ii) prioritizing and awarding loans, including establishing a minimum loan amount;
[(ii)] (iii) repayment by the loan recipient;
[(iii)] (iv) collection of the loans authorized by this section;
[(iv)] (v) awarding program monies to loan recipients who meet the criteria and conditions
under Subsection [(a)] (b); and
[(v)] (vi) requiring all loan applicants who wish to receive a loan under the [private sector
- 4 -
program or the public sector] loan program 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 proceeds for a minimum of [50%] 60% of the vehicle miles traveled beginning from the
time of conversion, lease, or purchase of the vehicle;
(C) agree in writing to notify the [division] department if a vehicle converted or purchased
using loan 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, leased, or purchased
with loan proceeds; and
(E) submit vehicles converted, leased, or purchased with loan proceeds to inspections by the
department as required in department rules and as necessary for administration of the loan 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 [private sector] 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 [public sector] 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 [public sector fund and the private sector] fund.
Section 4.
Repealer.
This act repeals:
Section 9-1-704
, Clean Fuels Public Sector Vehicle Loan Fund -- Creation -- Funding.
Section 9-1-705
, Clean Fuels Program.
Section 5. Appropriation.
- 5 -
There is appropriated from the General Fund for fiscal year 1996-97, $330,000 to the Clean
Fuels Vehicle Loan Fund created in Section 9-1-703
. This appropriation is nonlapsing.
Section 6. Effective date.
This act takes effect on July 1, 1996.
- 6 -
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