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H.B. 145

             1     

UTAH ENERGY OFFICE AMENDMENTS

             2     
2002 GENERAL SESSION

             3     
STATE OF UTAH

             4     
Sponsor: Stephen H. Urquhart

             5      This act modifies the Natural Resources Code to create the Utah Energy Office within the
             6      Department of Natural Resources. This act moves certain energy-related programs,
             7      including the Clean Fuels Vehicle program and fund, from the Department of Community
             8      and Economic Development to the Department of Natural Resources to be administered by
             9      the Utah Energy Office.
             10      This act affects sections of Utah Code Annotated 1953 as follows:
             11      AMENDS:
             12          9-1-201, as last amended by Chapter 66, Laws of Utah 1993
             13          59-7-605, as last amended by Chapter 287, Laws of Utah 2000
             14          59-10-127, as last amended by Chapter 287, Laws of Utah 2000
             15          63-34-5, as last amended by Chapter 66, Laws of Utah 1993
             16      ENACTS:
             17          63-34-101, Utah Code Annotated 1953
             18          63-34-201, Utah Code Annotated 1953
             19          63-34-202, Utah Code Annotated 1953
             20          63-34-203, Utah Code Annotated 1953
             21          63-34-204, Utah Code Annotated 1953
             22      REPEALS:
             23          9-1-702, as last amended by Chapter 287, Laws of Utah 2000
             24          9-1-703, as last amended by Chapter 287, Laws of Utah 2000
             25          9-1-706, as last amended by Chapter 287, Laws of Utah 2000
             26      Be it enacted by the Legislature of the state of Utah:
             27          Section 1. Section 9-1-201 is amended to read:


             28           9-1-201. Department of Community and Economic Development -- Creation --
             29      Powers and duties.
             30          (1) There is created the Department of Community and Economic Development.
             31          (2) The department shall:
             32          (a) be responsible for community and economic development within the state;
             33          (b) perform economic development planning for the state;
             34          (c) coordinate the program plans of the various divisions within the department;
             35          (d) administer and coordinate all state or federal grant programs which are, or become,
             36      available for community and economic development;
             37          [(e) (i) coordinate state governmental functions regarding energy conservation and
             38      program management;]
             39          [(ii) facilitate the development and implementation of programs relating to energy
             40      conservation;]
             41          [(iii) administer federal funds in accordance with applicable federal program guidelines;
             42      and]
             43          [(iv) prepare a state energy emergency plan in accordance with Title 63, Chapter 53a,
             44      Energy Emergency Powers of Governor;]
             45          [(f)] (e) administer any other programs over which the department is given administrative
             46      supervision by the governor;
             47          [(g)] (f) annually submit a report to the governor and the Legislature; and
             48          [(h)] (g) perform any other duties as provided by the Legislature.
             49          (3) The department may solicit and accept contributions of moneys, services, and facilities
             50      from any other sources, public or private, but may not use these funds for publicizing the exclusive
             51      interest of the donor.
             52          (4) Moneys received pursuant to Subsection (3) shall be deposited in the General Fund as
             53      restricted revenues of the department.
             54          Section 2. Section 59-7-605 is amended to read:
             55           59-7-605. Definitions -- Credit -- Cleaner burning fuels.
             56          (1) As used in this section:
             57          (a) "Board" means the Air Quality Board created under Title 19, Chapter 2, Air
             58      Conservation Act.


             59          (b) "Certified by the board" means that:
             60          (i) a motor vehicle on which conversion equipment has been installed meets the following
             61      criteria:
             62          (A) before the installation of conversion equipment, the vehicle does not exceed the
             63      emission cut points for a transient test driving cycle, as specified in 40 CFR 51, Appendix E to
             64      Subpart S, or an equivalent test for the make, model, and year of the vehicle;
             65          (B) the motor vehicle's emissions of regulated pollutants, when operating on fuels listed
             66      in Subsection (2)(b), is less than the emissions were before the installation of conversion
             67      equipment; and
             68          (C) a reduction in emissions under Subsection (1)(b)(i)(B) is demonstrated by:
             69          (I) certification of the conversion equipment by the federal Environmental Protection
             70      Agency or by a state whose certification standards are recognized by the board;
             71          (II) testing the motor vehicle, before and after installation of the conversion equipment,
             72      in accordance with 40 CFR 86, Control of Air Pollution from New and In-use Motor Vehicle
             73      Engines: Certification and Test Procedures, using all fuel the motor vehicle is capable of using;
             74      or
             75          (III) any other test or standard recognized by board rule; or
             76          (ii) special mobile equipment on which conversion equipment has been installed meets the
             77      following criteria:
             78          (A) the special mobile equipment's emissions of regulated pollutants, when operating on
             79      fuels listed in Subsection (2)(c), is less than the emissions were before the installation of
             80      conversion equipment; and
             81          (B) a reduction in emissions under Subsection (1)(b)(ii)(A) is demonstrated by:
             82          (I) certification of the conversion equipment by the federal Environmental Protection
             83      Agency or by a state whose certification standards are recognized by the board; or
             84          (II) any other test or standard recognized by board rule.
             85          (c) "Clean fuel grant" means a grant awarded under Title 9, Chapter 1, Part 7, Clean Fuels
             86      Conversion Program Act, for reimbursement of a portion of the incremental cost of an OEM
             87      vehicle or the cost of conversion equipment.
             88          (d) "Conversion equipment" means equipment referred to in Subsection (2)(b) or (2)(c).
             89          (e) "Incremental cost" has the same meaning as in Section [ 9-1-702 ] 63-34-202 .


             90          (f) "OEM vehicle" has the same meaning as in Section [ 9-1-702 ] 63-34-202 .
             91          (g) "Special mobile equipment":
             92          (i) means any mobile equipment or vehicle that is not designed or used primarily for the
             93      transportation of persons or property; and
             94          (ii) includes construction or maintenance equipment.
             95          (2) For taxable years beginning on or after January 1, 2001, but beginning on or before
             96      December 31, 2005, a taxpayer may claim a credit against tax otherwise due under this chapter or
             97      Chapter 8, Gross Receipts Tax on Certain Corporations Not Required to Pay Corporate Franchise
             98      or Income Tax Act, in an amount equal to:
             99          (a) 50% of the incremental cost of an OEM vehicle registered in Utah minus the amount
             100      of any clean fuel grant received, up to a maximum tax credit of $3,000 per vehicle, if the vehicle:
             101          (i) is fueled by propane, natural gas, or electricity;
             102          (ii) is fueled by other fuel the board determines annually on or before July 1 to be at least
             103      as effective in reducing air pollution as fuels under Subsection (2)(a)(i); or
             104          (iii) meets the clean-fuel vehicle standards in the federal Clean Air Act Amendments of
             105      1990, [Title II,] 42 U.S.C. Sec. 7521 et seq.;
             106          (b) 50% of the cost of equipment for conversion, if certified by the board, of a motor
             107      vehicle registered in Utah minus the amount of any clean fuel grant received, up to a maximum
             108      tax credit of $2,500 per motor vehicle, if the motor vehicle is to:
             109          (i) be fueled by propane, natural gas, or electricity;
             110          (ii) be fueled by other fuel the board determines annually on or before July 1 to be at least
             111      as effective in reducing air pollution as fuels under Subsection (2) (b)(i); or
             112          (iii) meet the federal clean-fuel vehicle standards in the federal Clean Air Act
             113      Amendments of 1990, [Title II,] 42 U.S.C. Sec. 7521 et seq.; and
             114          (c) 50% of the cost of equipment for conversion, if certified by the board, of a special
             115      mobile equipment engine minus the amount of any clean fuel grant received, up to a maximum tax
             116      credit of $1,000 per special mobile equipment engine, if the special mobile equipment is to be
             117      fueled by:
             118          (i) propane, natural gas, or electricity; or
             119          (ii) other fuel the board determines annually on or before July 1 to be:
             120          (A) at least as effective in reducing air pollution as the fuels under Subsection (2)(c)(i);


             121      or
             122          (B) substantially more effective in reducing air pollution than the fuel for which the engine
             123      was originally designed.
             124          (3) A taxpayer shall provide proof of the purchase of an item for which a credit is allowed
             125      under this section by:
             126          (a) providing proof to the board in the form the board requires by rule;
             127          (b) receiving a written statement from the board acknowledging receipt of the proof; and
             128          (c) attaching the written statement obtained from the board to the tax return in which the
             129      credit is claimed.
             130          (4) Except as provided by Subsection (5), this credit is allowed only:
             131          (a) against any Utah tax owed in the taxable year by the taxpayer;
             132          (b) in the taxable year in which the item is purchased for which the credit is claimed; and
             133          (c) once per vehicle.
             134          (5) If the amount of a tax credit claimed by a taxpayer under this section exceeds the
             135      taxpayer's tax liability under this chapter for a taxable year, the amount of the credit exceeding the
             136      liability may be carried forward for a period that does not exceed the next five taxable years.
             137          Section 3. Section 59-10-127 is amended to read:
             138           59-10-127. Definition -- Credit -- Cleaner burning fuels.
             139          (1) As used in this section:
             140          (a) "Board" means the Air Quality Board created in Title 19, Chapter 2, Air Conservation
             141      Act.
             142          (b) "Certified by the board" means that:
             143          (i) a motor vehicle on which conversion equipment has been installed meets the following
             144      criteria:
             145          (A) before the installation of conversion equipment, the vehicle does not exceed the
             146      emission cut points for a transient test driving cycle, as specified in 40 CFR 51, Appendix E to
             147      Subpart S, or an equivalent test for the make, model, and year of the vehicle;
             148          (B) the motor vehicle's emissions of regulated pollutants, when operating on fuels listed
             149      in Subsection(2)(b), is less than the emissions were before the installation of conversion
             150      equipment; and
             151          (C) a reduction in emissions under Subsection (1)(b)(i)(B) is demonstrated by:


             152          (I) certification of the conversion equipment by the federal Environmental Protection
             153      Agency or by a state whose certification standards are recognized by the board;
             154          (II) testing the motor vehicle, before and after installation of the conversion equipment,
             155      in accordance with 40 CFR 86, Control of Air Pollution from New and In-use Motor Vehicle
             156      Engines: Certification and Test Procedures, using all fuels the motor vehicle is capable of using;
             157      or
             158          (III) any other test or standard recognized by board rule; or
             159          (ii) special mobile equipment on which conversion equipment has been installed meets the
             160      following criteria:
             161          (A) the special mobile equipment's emissions of regulated pollutants, when operating on
             162      fuels listed in Subsection (2)(c), is less than the emissions were before the installation of
             163      conversion equipment; and
             164          (B) a reduction in emissions under Subsection (1)(b)(ii)(A) is demonstrated by:
             165          (I) certification of the conversion equipment by the federal Environmental Protection
             166      Agency or by a state whose certification standards are recognized by the board; or
             167          (II) any other test or standard recognized by the board.
             168          (c) "Clean fuel grant" means a grant the taxpayer receives under Title 9, Chapter 1, Part
             169      7, Clean Fuels Conversion Program Act for reimbursement of a portion of the incremental cost of
             170      the OEM vehicle or the cost of conversion equipment.
             171          (d) "Conversion equipment" means equipment referred to in Subsection (2)(b) or (2)(c).
             172          (e) "Incremental cost" has the same meaning as in Section [ 9-1-702 ] 63-34-202 .
             173          (f) "OEM vehicle" has the same meaning as in Section [ 9-1-702 ] 63-34-202 .
             174          (g) "Special mobile equipment":
             175          (i) means any mobile equipment or vehicle not designed or used primarily for the
             176      transportation of persons or property; and
             177          (ii) includes construction or maintenance equipment.
             178          (2) For taxable years beginning on or after January 1, 2001, but beginning on or before
             179      December 31, 2005, a taxpayer may claim a credit against tax otherwise due under this chapter in
             180      an amount equal to:
             181          (a) 50% of the incremental cost of an OEM vehicle registered in Utah minus the amount
             182      of any clean fuel grant received, up to a maximum tax credit of $3,000 per vehicle, if the vehicle:


             183          (i) is fueled by propane, natural gas, or electricity;
             184          (ii) is fueled by other fuel the board determines annually on or before July 1 to be at least
             185      as effective in reducing air pollution as fuels under Subsection (2)(a)(i); or
             186          (iii) meets the clean-fuel vehicle standards in the federal Clean Air Act Amendments of
             187      1990, [Title II,] 42 U.S.C. Sec. 7521 et seq.;
             188          (b) 50% of the cost of equipment for conversion, if certified by the board, of a motor
             189      vehicle registered in Utah minus the amount of any clean fuel conversion grant received, up to a
             190      maximum tax credit of $2,500 per vehicle, if the motor vehicle:
             191          (i) is to be fueled by propane, natural gas, or electricity;
             192          (ii) is to be fueled by other fuel the board determines annually on or before July 1 to be at
             193      least as effective in reducing air pollution as fuels under Subsection (2) (b)(i); or
             194          (iii) will meet the federal clean fuel vehicle standards in the federal Clean Air Act
             195      Amendments of 1990, [Title II,] 42 U.S.C. Sec. 7521 et seq.; and
             196          (c) 50% of the cost of equipment for conversion, if certified by the board, of a special
             197      mobile equipment engine minus the amount of any clean fuel conversion grant received, up to a
             198      maximum tax credit of $1,000 per special mobile equipment engine, if the special mobile
             199      equipment is to be fueled by:
             200          (i) propane, natural gas, or electricity; or
             201          (ii) other fuel the board determines annually on or before July 1 to be:
             202          (A) at least as effective in reducing air pollution as the fuels under Subsection (2)(c)(i);
             203      or
             204          (B) substantially more effective in reducing air pollution than the fuel for which the engine
             205      was originally designed.
             206          (3) An individual shall provide proof of the purchase of an item for which a credit is
             207      allowed under this section by:
             208          (a) providing proof to the board in the form the board requires by rule;
             209          (b) receiving a written statement from the board acknowledging receipt of the proof; and
             210          (c) attaching the written statement obtained from the board to the tax return in which the
             211      credit is claimed.
             212          (4) Except as provided by Subsection (5), this credit is allowed only:
             213          (a) against any Utah tax owed in the taxable year by the taxpayer;


             214          (b) in the taxable year in which the item is purchased for which the credit is claimed; and
             215          (c) once per vehicle.
             216          (5) If the amount of a tax credit claimed by a taxpayer under this section exceeds the
             217      taxpayer's tax liability under this chapter for a taxable year, the amount of the credit exceeding the
             218      liability may be carried forward for a period that does not exceed the next five taxable years.
             219          Section 4. Section 63-34-5 is amended to read:
             220           63-34-5. Executive director of natural resources -- Appointment -- Removal --
             221      Compensation -- Responsibilities -- Department fee schedule.
             222          (1) (a) The chief administrative officer of the Department of Natural Resources shall be
             223      an executive director appointed by the governor with the advice and consent of the Senate.
             224          (b) The executive director may be removed at the will of the governor.
             225          (c) The executive director shall receive a salary established by the governor within the
             226      salary range fixed by the Legislature in Title 67, Chapter 22, State Officer Compensation.
             227          (2) The executive director shall:
             228          (a) administer and supervise the Department of Natural Resources and provide for
             229      coordination and cooperation among the boards [and], divisions, and offices of the department;
             230          (b) approve the budget of each board and division;
             231          (c) (i) coordinate state governmental functions regarding energy development and use;
             232          (ii) facilitate the development and implementation of policies and programs relating to
             233      energy production, processing, utilization, and technology in the state;
             234          (iii) coordinate and consolidate energy resource data collection throughout state
             235      government;
             236          (iv) perform forecasts of state-level energy production, consumption, and prices;
             237          (v) monitor federal laws and regulations relating to energy development, processing, or
             238      use, and recommend policy positions for the state;
             239          (vi) participate in regulatory proceedings as appropriate to the functions and duties of the
             240      department;
             241          (vii) represent the state on regional and national energy matters on his own initiative or
             242      as requested by the governor; and
             243          (viii) provide the Legislature and the governor with:
             244          (A) a biennial report addressing the current status of energy markets in the state; and


             245          (B) an independent assessment of energy issues.
             246          (d) report at the end of each fiscal year to the governor on department activities, and
             247      activities of the boards and divisions; and
             248          (e) perform other duties as provided by the Legislature by statute.
             249          (3) Unless otherwise provided by statute, the department may adopt a schedule of fees
             250      assessed for services provided by the department. The fee shall be reasonable and fair and shall
             251      reflect the cost of services provided. Each fee established in this manner shall be submitted to and
             252      approved by the Legislature as part of the department's annual appropriations request. The
             253      department may not charge or collect any fee proposed in this manner without approval of the
             254      Legislature.
             255          Section 5. Section 63-34-101 is enacted to read:
             256     
Part 1. Utah Energy Office

             257          63-34-101. Utah Energy Office created -- Utah Energy Office duties.
             258          (1) There is created within the Department of Natural Resources the Utah Energy Office.
             259          (2) The Utah Energy Office shall:
             260          (a) administer federally funded state programs regarding renewable energy, energy
             261      efficiency, and energy conservation in accordance with applicable federal program guidelines;
             262          (b) coordinate and facilitate the development and implementation of programs relating to
             263      procurement, consumption, conservation, and efficient use of energy in state buildings;
             264          (c) if requested by the governor, prepare a state energy emergency plan in accordance with
             265      Title 63, Chapter 53a, Energy Emergency Powers of Governor; and
             266          (d) participate in regulatory proceedings as appropriate to promote the development,
             267      conservation, and efficient use of energy.
             268          Section 6. Section 63-34-201 is enacted to read:
             269     
Part 2. Clean Fuels Conversion Program

             270          63-34-201. Title.
             271          This part is known as the "Clean Fuels Conversion Program Act."
             272          Section 7. Section 63-34-202 is enacted to read:
             273          63-34-202. Definitions.
             274          As used in this part:
             275          (1) "Certified by the Air Quality Board" means that a motor vehicle on which conversion


             276      equipment has been installed meets the following criteria:
             277          (a) before the installation of conversion equipment, the motor vehicle does not exceed the
             278      emission cut points for a transient test driving cycle, as specified in 40 CFR 51, Appendix E to
             279      Subpart S, or an equivalent test for the make, model, and year of the motor vehicle;
             280          (b) the motor vehicle's emissions of regulated pollutants, when operating with clean fuel,
             281      is less than the emissions were before the installation of conversion equipment; and
             282          (c) a reduction in emissions under Subsection (1)(b) is demonstrated by:
             283          (i) certification of the conversion equipment by the federal Environmental Protection
             284      Agency or by a state whose certification standards are recognized by the Air Quality Board;
             285          (ii) testing the motor vehicle, before and after the installation of the conversion equipment,
             286      in accordance with 40 CFR 86, Control of Air Pollution from New and In-use Motor Vehicle
             287      Engines: Certification and Test Procedures, using all fuel the motor vehicle is capable of using;
             288      or
             289          (iii) any other test or standard recognized by Air Quality Board rule.
             290          (2) "Clean fuel" means:
             291          (a) propane, compressed natural gas, or electricity;
             292          (b) other fuel the Air Quality Board determines to be at least as effective as fuels under
             293      Subsection (2)(a) in reducing air pollution; or
             294          (c) other fuel that meets the clean-fuel vehicle standards in the federal Clean Air Act
             295      Amendments of 1990, 42 U.S.C. Sec. 7521 et seq.
             296          (3) "Clean-fuel vehicle" means a vehicle that:
             297          (a) uses a clean fuel; and
             298          (b) meets clean-fuel vehicle standards in the federal Clean Air Act Amendments of 1990,
             299      42 U.S.C. Sec. 7521 et seq.
             300          (4) "Fund" means the Clean Fuels Vehicle Fund created in Section 63-34-203 .
             301          (5) "Government vehicle" means a motor vehicle registered in Utah and owned and
             302      operated by the state, a public trust authority, a school district, a county, a municipality, a town,
             303      or a city, including a metropolitan rapid transit motor vehicle, bus, truck, law enforcement vehicle,
             304      or emergency vehicle.
             305          (6) "Incremental cost" means the difference between the cost of the OEM vehicle and the
             306      same vehicle model manufactured without the clean-fuel fueling system.


             307          (7) "OEM vehicle" means a vehicle manufactured by the original vehicle manufacturer or
             308      its contractor to use a clean fuel.
             309          (8) "Private sector business vehicle" means a motor vehicle registered in Utah that is
             310      owned and operated solely in the conduct of a private business enterprise.
             311          (9) "Refueling equipment" means compressors when used separately, compressors used
             312      in combination with cascade tanks, and other equipment that constitute a central refueling system
             313      capable of dispensing vehicle fuel.
             314          Section 8. Section 63-34-203 is enacted to read:
             315          63-34-203. Clean Fuels Vehicle Fund -- Contents -- Loans or grants made with fund
             316      monies.
             317          (1) (a) There is created a revolving fund known as the Clean Fuels Vehicle Fund.
             318          (b) The fund consists of:
             319          (i) appropriations to the fund;
             320          (ii) other public and private contributions made under Subsection (1)(d);
             321          (iii) interest earnings on cash balances; and
             322          (iv) all monies collected for loan repayments and interest on loans.
             323          (c) All money appropriated to the fund is nonlapsing.
             324          (d) The department may accept contributions from other public and private sources for
             325      deposit into the fund.
             326          (2) (a) The department may make loans or grants with monies available in the fund for:
             327          (i) the conversion of private sector business vehicles and government vehicles to use a
             328      clean fuel, if certified by the Air Quality Board; or
             329          (ii) the purchase of OEM vehicles for use as private sector business vehicles or government
             330      vehicles.
             331          (b) The amount of a loan for any vehicle may not exceed:
             332          (i) the actual cost of the vehicle conversion;
             333          (ii) the incremental cost of purchasing the OEM vehicle; or
             334          (iii) the cost of purchasing the OEM vehicle if there is no documented incremental cost.
             335          (c) The amount of a grant for any vehicle may not exceed:
             336          (i) 50% of the actual cost of the vehicle conversion minus the amount of any tax credit
             337      claimed under Section 59-7-605 or 59-10-127 for the vehicle for which a grant is requested; or


             338          (ii) 50% of the incremental cost of purchasing an OEM vehicle minus the amount of any
             339      tax credit claimed under Section 59-7-605 or 59-10-127 for the vehicle for which a grant is
             340      requested.
             341          (d) (i) Subject to the availability of monies in the fund, the department may make loans
             342      for the purchase of vehicle refueling equipment for private sector business vehicles and
             343      government vehicles.
             344          (ii) The maximum amount loaned per installation of refueling equipment may not exceed
             345      the actual cost of the refueling equipment.
             346          (3) Administrative costs of the fund shall be paid from the fund.
             347          (4) (a) The fund balance may not exceed $10,000,000.
             348          (b) Interest on cash balances and repayment of loans in excess of the amount necessary to
             349      maintain the fund balance at $10,000,000 shall be deposited in the General Fund.
             350          (5) (a) Loans made from monies in the fund shall be supported by loan documents
             351      evidencing the intent of the borrower to repay the loan.
             352          (b) The original loan documents shall be filed with the Division of Finance and a copy
             353      shall be filed with the department.
             354          Section 9. Section 63-34-204 is enacted to read:
             355          63-34-204. Department duties -- Rulemaking -- Loan repayment.
             356          (1) The department shall:
             357          (a) establish and administer the loan and grant program to encourage government officials
             358      and private sector business vehicle owners and operators to obtain and use clean-fuel vehicles; and
             359          (b) make rules in accordance with Title 63, Chapter 46a, Utah Administrative Rulemaking
             360      Act:
             361          (i) specifying the amount of money in the fund to be dedicated annually for grants;
             362          (ii) limiting the amount of a grant given to any person claiming a tax credit under Section
             363      59-7-605 or 59-10-127 for the motor vehicle for which a grant is requested to assure that the sum
             364      of the tax credit and grant does not exceed:
             365          (A) 50% of the incremental cost of the OEM vehicle; or
             366          (B) 50% of the cost of conversion equipment;
             367          (iii) limiting the number of motor vehicles per fleet operator that may be eligible for a
             368      grant in a year;


             369          (iv) specifying criteria the department shall consider in prioritizing and awarding loans and
             370      grants;
             371          (v) specifying repayment periods;
             372          (vi) specifying procedures for:
             373          (A) awarding loans and grants; and
             374          (B) collecting loans; and
             375          (vii) requiring all loan and grant applicants to:
             376          (A) apply on forms provided by the department;
             377          (B) agree in writing to use the clean fuel for which each vehicle is converted or purchased
             378      using loan or grant proceeds for a minimum of 70% of the vehicle miles traveled beginning from
             379      the time of conversion or purchase of the vehicle;
             380          (C) agree in writing to notify the department if a vehicle converted or purchased using loan
             381      or grant proceeds becomes inoperable through mechanical failure or accident and to pursue a
             382      remedy outlined in department rules;
             383          (D) provide reasonable data to the department on vehicles converted or purchased with
             384      loan or grant proceeds; and
             385          (E) submit vehicles converted or purchased with loan or grant proceeds to inspections by
             386      the department as required in department rules and as necessary for administration of the loan and
             387      grant program.
             388          (2) (a) When developing repayment schedules for the loans, the department shall consider
             389      the projected savings from use of the clean-fuel vehicle.
             390          (b) A repayment schedule may not exceed ten years.
             391          (c) Loans made from the fund for private sector vehicles shall be made at an interest rate
             392      equal to the annual return earned in the state treasurer's Public Treasurer's Pool as determined the
             393      month immediately preceding the closing date of the loan.
             394          (d) Loans made from the fund for government vehicles shall be made at a zero interest
             395      rate.
             396          (3) The Division of Finance is responsible for collection of and accounting for the loans
             397      and has custody of all loan documents, including all notes and contracts, evidencing the
             398      indebtedness of the fund.
             399          Section 10. Repealer.


             400          This act repeals:
             401          Section 9-1-702, Definitions.
             402          Section 9-1-703, Clean Fuels Vehicle Fund -- Contents -- Loans or grants made with
             403      fund monies.
             404          Section 9-1-706, Rulemaking -- Department duties -- Loan repayment.




Legislative Review Note
    as of 1-28-02 11:44 AM


A limited legal review of this legislation raises no obvious constitutional or statutory concerns.

Office of Legislative Research and General Counsel


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