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First Substitute H.B. 96

Representative Fred R. Hunsaker proposes the following substitute bill:


             1     
AMENDMENTS RELATING TO CLEAN FUELS

             2     
AND VEHICLES USING CLEAN FUELS

             3     
2005 GENERAL SESSION

             4     
STATE OF UTAH

             5     
Sponsor: Fred R. Hunsaker

             6     
             7      LONG TITLE
             8      General Description:
             9          This bill modifies the Traffic Rules and Regulations chapter, the Corporate Franchise
             10      and Income Tax chapter, the Individual Income Tax Act, the Special Fuel part, the
             11      Clean Fuels Conversion Program Act, and the Repeal Dates part relating to clean fuels
             12      and vehicles using clean fuels.
             13      Highlighted Provisions:
             14          This bill:
             15          .    provides the circumstances under which a vehicle may travel in lanes designated for
             16      the use of high occupancy vehicles regardless of the number of occupants;
             17          .    extends for a period of five taxable years certain individual income tax and
             18      corporate franchise and income tax credits relating to vehicles using clean fuels;
             19          .    provides that a taxpayer may not claim a tax credit with respect to an electric-hybrid
             20      vehicle;
             21          .    extends until December 31, 2010, a surcharge on clean special fuel tax certificates;
             22          .    provides that the Department of Natural Resources may not make a loan or grant
             23      under the Clean Fuels Conversion Program Act with respect to an electric-hybrid
             24      vehicle;
             25          .    extends a repeal date until December 31, 2010, for allowing certain vehicles to


             26      travel in lanes designated for the use of high occupancy vehicles regardless of the number of
             27      occupants; and
             28          .    makes technical changes.
             29      Monies Appropriated in this Bill:
             30          None
             31      Other Special Clauses:
             32          This bill provides an effective date and provides for retrospective operation.
             33      Utah Code Sections Affected:
             34      AMENDS:
             35          41-6a-702, as renumbered and amended by Chapter 2, Laws of Utah 2005
             36          59-7-605, as last amended by Chapter 90, Laws of Utah 2004
             37          59-10-127, as last amended by Chapter 90, Laws of Utah 2004
             38          59-13-304, as last amended by Chapter 7, Laws of Utah 2003
             39          63-34-202, as enacted by Chapter 231, Laws of Utah 2002
             40          63-34-203, as enacted by Chapter 231, Laws of Utah 2002
             41          63-55-241, as last amended by Chapter 90, Laws of Utah 2004
             42     
             43      Be it enacted by the Legislature of the state of Utah:
             44          Section 1. Section 41-6a-702 is amended to read:
             45           41-6a-702. Left lane restrictions -- Exceptions -- Other lane restrictions --
             46      Penalties.
             47          (1) As used in this section and Section 41-6a-704 , "general purpose lane" means a
             48      highway lane open to vehicular traffic but does not include a designated:
             49          (a) high occupancy vehicle (HOV) lane; or
             50          (b) auxiliary lane that begins as a freeway on-ramp and ends as part of the next freeway
             51      off-ramp.
             52          (2) On a freeway or section of a freeway which has three or more general purpose lanes
             53      in the same direction, a person may not operate a vehicle in the left most general purpose lane
             54      if the person's:
             55          (a) vehicle is drawing a trailer or semitrailer regardless of size; or
             56          (b) vehicle or combination of vehicles has a gross vehicle weight of 12,001 or more


             57      pounds.
             58          (3) Subsection (2) does not apply to a person operating a vehicle who is:
             59          (a) preparing to turn left or taking a different highway split or an exit on the left;
             60          (b) responding to emergency conditions;
             61          (c) avoiding actual or potential traffic moving onto the highway from an acceleration or
             62      merging lane; or
             63          (d) following direction signs that direct use of a designated lane.
             64          (4) (a) A highway authority may designate a specific lane or lanes of travel for any type
             65      of vehicle on a highway or portion of a highway under its jurisdiction for the:
             66          (i) safety of the public;
             67          (ii) efficient maintenance of a highway; or
             68          (iii) use of high occupancy vehicles.
             69          (b) The lane designation under Subsection (4)(a) is effective when appropriate signs
             70      giving notice are erected on the highway or portion of the highway.
             71          (5) (a) [The] Subject to Subsection (5)(b), the lane designation under Subsection (4)(a)
             72      shall allow a vehicle with clean fuel special group license plates issued in accordance with
             73      Section 41-1a-418 to travel in lanes designated for the use of high occupancy vehicles
             74      regardless of the number of occupants to the extent authorized or permitted by federal law or
             75      federal regulation.
             76          (b) (i) Before a vehicle with clean fuel special group license plates issued in
             77      accordance with Section 41-1a-418 may travel in lanes designated for the use of high
             78      occupancy vehicles regardless of the number of occupants, the vehicle shall have a label
             79      attached to the vehicle as provided in Subsection (5)(b)(ii) if the category of clean fuel vehicles
             80      authorized or permitted by federal law or federal regulation to travel in lanes designated for the
             81      use of high occupancy vehicles regardless of the number of occupants is a category of vehicles
             82      that:
             83          (A) includes the vehicle described in this Subsection (5)(b)(i); and
             84          (B) is more narrow than the category of vehicles that may be issued clean fuel special
             85      group license plates in accordance with Section 41-1a-418 .
             86          (ii) The label described in Subsection (5)(b)(i) shall:
             87          (A) meet the design specifications of 40 C.F.R. Sec. 88.312-93; and


             88          (B) be attached:
             89          (I) regardless of whether the vehicle described in Subsection (5)(b)(i) is part of a fleet
             90      of vehicles;
             91          (II) to the rear of the vehicle described in Subsection (5)(b)(i);
             92          (III) in one or more places in addition to the attachment required by Subsection
             93      (5)(b)(ii)(B)(II) if federal law or federal regulation requires an attachment in one or more places
             94      in addition the attachment required by Subsection (5)(b)(ii)(B)(II); and
             95          (IV) following the procedures and requirements provided in 40 C.F.R. Sec. 88.312-93
             96      for attaching labels to vehicles.
             97          (6) A person who operates a vehicle in violation of Subsection (2) or in violation of the
             98      restrictions made under Subsection (4) is guilty of a class C misdemeanor.
             99          Section 2. Section 59-7-605 is amended to read:
             100           59-7-605. Definitions -- Tax credit -- Cleaner burning fuels.
             101          (1) As used in this section:
             102          (a) "Board" means the Air Quality Board created under Title 19, Chapter 2, Air
             103      Conservation Act.
             104          (b) "Certified by the board" means that:
             105          (i) a motor vehicle on which conversion equipment has been installed meets the
             106      following criteria:
             107          (A) before the installation of conversion equipment, the vehicle does not exceed the
             108      emission cut points for a transient test driving cycle, as specified in 40 C.F.R. Part 51,
             109      Appendix E to Subpart S, or an equivalent test for the make, model, and year of the vehicle;
             110          (B) the motor vehicle's emissions of regulated pollutants, when operating on [fuels] a
             111      fuel listed in Subsection (2)[(b)](a)(ii)(A) or (2)(a)(ii)(B), is less than the emissions were
             112      before the installation of conversion equipment; and
             113          (C) a reduction in emissions under Subsection (1)(b)(i)(B) is demonstrated by:
             114          (I) certification of the conversion equipment by the federal Environmental Protection
             115      Agency or by a state whose certification standards are recognized by the board;
             116          (II) testing the motor vehicle, before and after installation of the conversion equipment,
             117      in accordance with 40 C.F.R. Part 86, Control of Emissions from New and In-use Highway
             118      Vehicles and Engines, using all fuel the motor vehicle is capable of using; or


             119          (III) any other test or standard recognized by board rule; or
             120          (ii) special mobile equipment on which conversion equipment has been installed meets
             121      the following criteria:
             122          (A) the special mobile equipment's emissions of regulated pollutants, when operating
             123      on fuels listed in Subsection (2)[(c)](a)(iii)(A) or (2)(a)(iii)(B), is less than the emissions were
             124      before the installation of conversion equipment; and
             125          (B) a reduction in emissions under Subsection (1)(b)(ii)(A) is demonstrated by:
             126          (I) certification of the conversion equipment by the federal Environmental Protection
             127      Agency or by a state whose certification standards are recognized by the board; or
             128          (II) any other test or standard recognized by board rule.
             129          (c) "Clean fuel grant" means a grant awarded under Title 63, Chapter 34, Part 2, Clean
             130      Fuels Conversion Program Act, for reimbursement of a portion of the incremental cost of an
             131      OEM vehicle or the cost of conversion equipment.
             132          (d) "Conversion equipment" means equipment referred to in Subsection (2)[(b)](a)(ii)
             133      or (2)[(c)](a)(iii).
             134          (e) "Electric-hybrid vehicle" is as defined in 42 U.S.C. Sec. 13435.
             135          [(e)] (f) "Incremental cost" has the same meaning as in Section 63-34-202 .
             136          [(f)] (g) "OEM vehicle" has the same meaning as in Section 63-34-202 .
             137          [(g)] (h) "Special mobile equipment":
             138          (i) means any mobile equipment or vehicle that is not designed or used primarily for
             139      the transportation of persons or property; and
             140          (ii) includes construction or maintenance equipment.
             141          (2) [For] (a) Except as provided in Subsection (2)(b), for taxable years beginning on or
             142      after January 1, 2001, but beginning on or before December 31, [2005] 2010, a taxpayer may
             143      claim a tax credit against tax otherwise due under this chapter or Chapter 8, Gross Receipts
             144      Tax on Certain Corporations Not Required to Pay Corporate Franchise or Income Tax Act, in
             145      an amount equal to:
             146          [(a)] (i) 50% of the incremental cost of an OEM vehicle registered in Utah minus the
             147      amount of any clean fuel grant received, up to a maximum tax credit of $3,000 per vehicle, if
             148      the vehicle:
             149          [(i)] (A) is fueled by propane, natural gas, or electricity;


             150          [(ii)] (B) is fueled by other fuel the board determines annually on or before July 1 to be
             151      at least as effective in reducing air pollution as fuels under Subsection (2)(a)(i)(A); or
             152          [(iii)] (C) meets the clean-fuel vehicle standards in the federal Clean Air Act
             153      Amendments of 1990, 42 U.S.C. Sec. 7521 et seq.;
             154          [(b)] (ii) 50% of the cost of equipment for conversion, if certified by the board, of a
             155      motor vehicle registered in Utah minus the amount of any clean fuel grant received, up to a
             156      maximum tax credit of $2,500 per motor vehicle, if the motor vehicle is to:
             157          [(i)] (A) be fueled by propane, natural gas, or electricity;
             158          [(ii)] (B) be fueled by other fuel the board determines annually on or before July 1 to
             159      be at least as effective in reducing air pollution as fuels under Subsection (2)[(b)(i)](a)(ii)(A);
             160      or
             161          [(iii)] (C) meet the federal clean-fuel vehicle standards in the federal Clean Air Act
             162      Amendments of 1990, 42 U.S.C. Sec. 7521 et seq.; and
             163          [(c)] (iii) 50% of the cost of equipment for conversion, if certified by the board, of a
             164      special mobile equipment engine minus the amount of any clean fuel grant received, up to a
             165      maximum tax credit of $1,000 per special mobile equipment engine, if the special mobile
             166      equipment is to be fueled by:
             167          [(i)] (A) propane, natural gas, or electricity; or
             168          [(ii)] (B) other fuel the board determines annually on or before July 1 to be:
             169          [(A)] (I) at least as effective in reducing air pollution as the fuels under Subsection
             170      (2)[(c)(i)](a)(iii)(A); or
             171          [(B)] (II) substantially more effective in reducing air pollution than the fuel for which
             172      the engine was originally designed.
             173          (b) Notwithstanding Subsection (2)(a), a taxpayer may not claim a tax credit under this
             174      section with respect to an electric-hybrid vehicle.
             175          (3) A taxpayer shall provide proof of the purchase of an item for which a tax credit is
             176      allowed under this section by:
             177          (a) providing proof to the board in the form the board requires by rule;
             178          (b) receiving a written statement from the board acknowledging receipt of the proof;
             179      and
             180          (c) retaining the written statement described in Subsection (3)(b).


             181          (4) Except as provided by Subsection (5), the tax credit under this section is allowed
             182      only:
             183          (a) against any Utah tax owed in the taxable year by the taxpayer;
             184          (b) in the taxable year in which the item is purchased for which the tax credit is
             185      claimed; and
             186          (c) once per vehicle.
             187          (5) If the amount of a tax credit claimed by a taxpayer under this section exceeds the
             188      taxpayer's tax liability under this chapter for a taxable year, the amount of the tax credit
             189      exceeding the tax liability may be carried forward for a period that does not exceed the next
             190      five taxable years.
             191          Section 3. Section 59-10-127 is amended to read:
             192           59-10-127. Definitions -- Tax credit -- Cleaner burning fuels.
             193          (1) As used in this section:
             194          (a) "Board" means the Air Quality Board created in Title 19, Chapter 2, Air
             195      Conservation Act.
             196          (b) "Certified by the board" means that:
             197          (i) a motor vehicle on which conversion equipment has been installed meets the
             198      following criteria:
             199          (A) before the installation of conversion equipment, the vehicle does not exceed the
             200      emission cut points for a transient test driving cycle, as specified in 40 C.F.R. Part 51,
             201      Appendix E to Subpart S, or an equivalent test for the make, model, and year of the vehicle;
             202          (B) the motor vehicle's emissions of regulated pollutants, when operating on fuels
             203      listed in Subsection (2)[(b)](a)(ii)(A) or (2)(a)(ii)(B), is less than the emissions were before the
             204      installation of conversion equipment; and
             205          (C) a reduction in emissions under Subsection (1)(b)(i)(B) is demonstrated by:
             206          (I) certification of the conversion equipment by the federal Environmental Protection
             207      Agency or by a state whose certification standards are recognized by the board;
             208          (II) testing the motor vehicle, before and after installation of the conversion equipment,
             209      in accordance with 40 C.F.R. Part 86, Control Emissions from New and In-use Highway
             210      Vehicles and Engines, using all fuels the motor vehicle is capable of using; or
             211          (III) any other test or standard recognized by board rule; or


             212          (ii) special mobile equipment on which conversion equipment has been installed meets
             213      the following criteria:
             214          (A) the special mobile equipment's emissions of regulated pollutants, when operating
             215      on fuels listed in Subsection (2)[(c)](a)(iii)(A) or (2)(a)(iii)(B), is less than the emissions were
             216      before the installation of conversion equipment; and
             217          (B) a reduction in emissions under Subsection (1)(b)(ii)(A) is demonstrated by:
             218          (I) certification of the conversion equipment by the federal Environmental Protection
             219      Agency or by a state whose certification standards are recognized by the board; or
             220          (II) any other test or standard recognized by the board.
             221          (c) "Clean fuel grant" means a grant the taxpayer receives under Title 63, Chapter 34,
             222      Part 2, Clean Fuels Conversion Program Act, for reimbursement of a portion of the incremental
             223      cost of the OEM vehicle or the cost of conversion equipment.
             224          (d) "Conversion equipment" means equipment referred to in Subsection (2)[(b)](a)(ii)
             225      or (2)[(c)](a)(iii).
             226          (e) "Electric-hybrid vehicle" is as defined in 42 U.S.C. Sec. 13435.
             227          [(e)] (f) "Incremental cost" has the same meaning as in Section 63-34-202 .
             228          [(f)] (g) "OEM vehicle" has the same meaning as in Section 63-34-202 .
             229          [(g)] (h) "Special mobile equipment":
             230          (i) means any mobile equipment or vehicle not designed or used primarily for the
             231      transportation of persons or property; and
             232          (ii) includes construction or maintenance equipment.
             233          (2) [For] (a) Except as provided in Subsection (2)(b), for taxable years beginning on or
             234      after January 1, 2001, but beginning on or before December 31, [2005] 2010, a taxpayer may
             235      claim a tax credit against tax otherwise due under this chapter in an amount equal to:
             236          [(a)] (i) 50% of the incremental cost of an OEM vehicle registered in Utah minus the
             237      amount of any clean fuel grant received, up to a maximum tax credit of $3,000 per vehicle, if
             238      the vehicle:
             239          [(i)] (A) is fueled by propane, natural gas, or electricity;
             240          [(ii)] (B) is fueled by other fuel the board determines annually on or before July 1 to be
             241      at least as effective in reducing air pollution as fuels under Subsection (2)(a)(i)(A); or
             242          [(iii)] (C) meets the clean-fuel vehicle standards in the federal Clean Air Act


             243      Amendments of 1990, 42 U.S.C. Sec. 7521 et seq.;
             244          [(b)] (ii) 50% of the cost of equipment for conversion, if certified by the board, of a
             245      motor vehicle registered in Utah minus the amount of any clean fuel conversion grant received,
             246      up to a maximum tax credit of $2,500 per vehicle, if the motor vehicle:
             247          [(i)] (A) is to be fueled by propane, natural gas, or electricity;
             248          [(ii)] (B) is to be fueled by other fuel the board determines annually on or before July 1
             249      to be at least as effective in reducing air pollution as fuels under Subsection
             250      (2)[(b)(i)](a)(ii)(A); or
             251          [(iii)] (C) will meet the federal clean fuel vehicle standards in the federal Clean Air Act
             252      Amendments of 1990, 42 U.S.C. Sec. 7521 et seq.; and
             253          [(c)] (iii) 50% of the cost of equipment for conversion, if certified by the board, of a
             254      special mobile equipment engine minus the amount of any clean fuel conversion grant
             255      received, up to a maximum tax credit of $1,000 per special mobile equipment engine, if the
             256      special mobile equipment is to be fueled by:
             257          [(i)] (A) propane, natural gas, or electricity; or
             258          [(ii)] (B) other fuel the board determines annually on or before July 1 to be:
             259          [(A)] (I) at least as effective in reducing air pollution as the fuels under Subsection
             260      (2)[(c)(i)](a)(iii)(A); or
             261          [(B)] (II) substantially more effective in reducing air pollution than the fuel for which
             262      the engine was originally designed.
             263          (b) Notwithstanding Subsection (2)(a), a taxpayer may not claim a tax credit under this
             264      section with respect to an electric-hybrid vehicle.
             265          (3) An individual shall provide proof of the purchase of an item for which a tax credit
             266      is allowed under this section by:
             267          (a) providing proof to the board in the form the board requires by rule;
             268          (b) receiving a written statement from the board acknowledging receipt of the proof;
             269      and
             270          (c) retaining the written statement described in Subsection (3)(b).
             271          (4) Except as provided by Subsection (5), the tax credit under this section is allowed
             272      only:
             273          (a) against any Utah tax owed in the taxable year by the taxpayer;


             274          (b) in the taxable year in which the item is purchased for which the tax credit is
             275      claimed; and
             276          (c) once per vehicle.
             277          (5) If the amount of a tax credit claimed by a taxpayer under this section exceeds the
             278      taxpayer's tax liability under this chapter for a taxable year, the amount of the tax credit
             279      exceeding the tax liability may be carried forward for a period that does not exceed the next
             280      five taxable years.
             281          Section 4. Section 59-13-304 is amended to read:
             282           59-13-304. Exemptions from Special Fuel Tax -- Clean Special Fuel Tax --
             283      Certificate required -- Fees for certificates -- Inspection of vehicles -- Exemptions.
             284          (1) (a) Except as provided in Subsection (4), a user of special fuel who owns a vehicle
             285      powered by a clean special fuel as defined under Section 59-13-102 shall pay a clean special
             286      fuel tax as provided under this section for use of clean special fuel.
             287          (b) A user of special fuel who qualifies for the clean special fuel tax shall annually
             288      purchase from the commission a clean special fuel tax certificate for each vehicle owned or
             289      leased that is powered by a clean special fuel.
             290          (c) Clean special fuel tax certificates are provided to encourage the use of clean fuels to
             291      reduce air pollution.
             292          (2) (a) The fee for a clean special fuel tax certificate is:
             293          (i) 70/.19 of the tax per gallon imposed under Subsection 59-13-201 (1)(a), rounded up
             294      to the nearest dollar, for qualified motor vehicles as defined under Section 59-13-102 ; and
             295          (ii) 36/.19 of the tax per gallon imposed under Subsection 59-13-201 (1)(a), rounded up
             296      to the nearest dollar, for other vehicles.
             297          (b) The commission may require each vehicle to be inspected for safe operation before
             298      issuing the certificate.
             299          (c) Each vehicle shall be equipped with an approved and properly installed carburetion
             300      system if it is powered by a fuel that is gaseous at standard atmospheric conditions.
             301          (3) (a) Beginning January 1, 2001 through December 31, [2005] 2010, there is imposed
             302      a surcharge of $35 on each clean special fuel tax certificate issued under this section.
             303          (b) Surcharges imposed under Subsection (3)(a) shall be deposited into the Centennial
             304      Highway Fund created under Section 72-2-118 .


             305          (4) A governmental entity identified in Subsection 59-13-301 (9) that owns or leases a
             306      vehicle powered by a special fuel that qualifies as a clean special fuel is exempt from the clean
             307      special fuel tax imposed under this section.
             308          Section 5. Section 63-34-202 is amended to read:
             309           63-34-202. Definitions.
             310          As used in this part:
             311          (1) "Certified by the Air Quality Board" means that a motor vehicle on which
             312      conversion equipment has been installed meets the following criteria:
             313          (a) before the installation of conversion equipment, the motor vehicle does not exceed
             314      the emission cut points for a transient test driving cycle, as specified in 40 CFR 51, Appendix
             315      E to Subpart S, or an equivalent test for the make, model, and year of the motor vehicle;
             316          (b) the motor vehicle's emissions of regulated pollutants, when operating with clean
             317      fuel, is less than the emissions were before the installation of conversion equipment; and
             318          (c) a reduction in emissions under Subsection (1)(b) is demonstrated by:
             319          (i) certification of the conversion equipment by the federal Environmental Protection
             320      Agency or by a state whose certification standards are recognized by the Air Quality Board;
             321          (ii) testing the motor vehicle, before and after the installation of the conversion
             322      equipment, in accordance with 40 CFR 86, Control of Air Pollution from New and In-use
             323      Motor Vehicle Engines: Certification and Test Procedures, using all fuel the motor vehicle is
             324      capable of using; or
             325          (iii) any other test or standard recognized by Air Quality Board rule.
             326          (2) "Clean fuel" means:
             327          (a) propane, compressed natural gas, or electricity;
             328          (b) other fuel the Air Quality Board determines to be at least as effective as fuels under
             329      Subsection (2)(a) in reducing air pollution; or
             330          (c) other fuel that meets the clean-fuel vehicle standards in the federal Clean Air Act
             331      Amendments of 1990, 42 U.S.C. Sec. 7521 et seq.
             332          (3) "Clean-fuel vehicle" means a vehicle that:
             333          (a) uses a clean fuel; and
             334          (b) meets clean-fuel vehicle standards in the federal Clean Air Act Amendments of
             335      1990, 42 U.S.C. Sec. 7521 et seq.


             336          (4) "Electric-hybrid vehicle" is as defined in 42 U.S.C. Sec. 13435.
             337          [(4)] (5) "Fund" means the Clean Fuels Vehicle Fund created in Section 63-34-203 .
             338          [(5)] (6) "Government vehicle" means a motor vehicle registered in Utah and owned
             339      and operated by the state, a public trust authority, a school district, a county, a municipality, a
             340      town, or a city, including a metropolitan rapid transit motor vehicle, bus, truck, law
             341      enforcement vehicle, or emergency vehicle.
             342          [(6)] (7) "Incremental cost" means the difference between the cost of the OEM vehicle
             343      and the same vehicle model manufactured without the clean-fuel fueling system.
             344          [(7)] (8) "OEM vehicle" means a vehicle manufactured by the original vehicle
             345      manufacturer or its contractor to use a clean fuel.
             346          [(8)] (9) "Private sector business vehicle" means a motor vehicle registered in Utah that
             347      is owned and operated solely in the conduct of a private business enterprise.
             348          [(9)] (10) "Refueling equipment" means compressors when used separately,
             349      compressors used in combination with cascade tanks, and other equipment that constitute a
             350      central refueling system capable of dispensing vehicle fuel.
             351          Section 6. Section 63-34-203 is amended to read:
             352           63-34-203. Clean Fuels Vehicle Fund -- Contents -- Loans or grants made with
             353      fund monies.
             354          (1) (a) There is created a revolving fund known as the Clean Fuels Vehicle Fund.
             355          (b) The fund consists of:
             356          (i) appropriations to the fund;
             357          (ii) other public and private contributions made under Subsection (1)(d);
             358          (iii) interest earnings on cash balances; and
             359          (iv) all monies collected for loan repayments and interest on loans.
             360          (c) All money appropriated to the fund is nonlapsing.
             361          (d) The department may accept contributions from other public and private sources for
             362      deposit into the fund.
             363          (2) (a) [The] Except as provided in Subsection (3), the department may make loans or
             364      grants with monies available in the fund for:
             365          (i) the conversion of private sector business vehicles and government vehicles to use a
             366      clean fuel, if certified by the Air Quality Board; or


             367          (ii) the purchase of OEM vehicles for use as private sector business vehicles or
             368      government vehicles.
             369          (b) The amount of a loan for any vehicle may not exceed:
             370          (i) the actual cost of the vehicle conversion;
             371          (ii) the incremental cost of purchasing the OEM vehicle; or
             372          (iii) the cost of purchasing the OEM vehicle if there is no documented incremental
             373      cost.
             374          (c) The amount of a grant for any vehicle may not exceed:
             375          (i) 50% of the actual cost of the vehicle conversion minus the amount of any tax credit
             376      claimed under Section 59-7-605 or 59-10-127 for the vehicle for which a grant is requested; or
             377          (ii) 50% of the incremental cost of purchasing an OEM vehicle minus the amount of
             378      any tax credit claimed under Section 59-7-605 or 59-10-127 for the vehicle for which a grant is
             379      requested.
             380          (d) (i) [Subject] Except as provided in Subsection (3) and subject to the availability of
             381      monies in the fund, the department may make loans for the purchase of vehicle refueling
             382      equipment for private sector business vehicles and government vehicles.
             383          (ii) The maximum amount loaned per installation of refueling equipment may not
             384      exceed the actual cost of the refueling equipment.
             385          (3) Notwithstanding Subsection (2)(a) or (2)(d), the department may not make a loan or
             386      grant under this part with respect to an electric-hybrid vehicle.
             387          [(3)] (4) Administrative costs of the fund shall be paid from the fund.
             388          [(4)] (5) (a) The fund balance may not exceed $10,000,000.
             389          (b) Interest on cash balances and repayment of loans in excess of the amount necessary
             390      to maintain the fund balance at $10,000,000 shall be deposited in the General Fund.
             391          [(5)] (6) (a) Loans made from monies in the fund shall be supported by loan documents
             392      evidencing the intent of the borrower to repay the loan.
             393          (b) The original loan documents shall be filed with the Division of Finance and a copy
             394      shall be filed with the department.
             395          Section 7. Section 63-55-241 is amended to read:
             396           63-55-241. Repeal dates, Title 41.
             397          The following provisions of Title 41 are repealed on the following dates:


             398          (1) Title 41, Chapter 12a, Part 8, Uninsured Motorist Identification Database Program,
             399      is repealed July 1, 2010.
             400          (2) The HOV lane exception [for clean fuel special group license plate vehicles] in
             401      Subsection 41-6-53.5 (5) is repealed December 31, [2005] 2010.
             402          Section 8. Effective date -- Retrospective operation.
             403          (1) Except as provided in Subsections (2) and (3), this bill takes effect on May 2, 2005.
             404          (2) Notwithstanding Subsection (1), the amendments to Section 41-6-53.5 take effect
             405      on July 1, 2005.
             406          (3) Notwithstanding Subsection (1), the amendments to Sections 59-7-605 and
             407      59-10-127 have retrospective operation for taxable years beginning on or after January 1, 2005.


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