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First Substitute H.B. 96
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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
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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) [
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 [
111 fuel listed in Subsection (2)[
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)[
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)[
133 or (2)[
134 (e) "Electric-hybrid vehicle" is as defined in 42 U.S.C. Sec. 13435.
135 [
136 [
137 [
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) [
142 after January 1, 2001, but beginning on or before December 31, [
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 [
147 amount of any clean fuel grant received, up to a maximum tax credit of $3,000 per vehicle, if
148 the vehicle:
149 [
150 [
151 at least as effective in reducing air pollution as fuels under Subsection (2)(a)(i)(A); or
152 [
153 Amendments of 1990, 42 U.S.C. Sec. 7521 et seq.;
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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 [
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159 be at least as effective in reducing air pollution as fuels under Subsection (2)[
160 or
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162 Amendments of 1990, 42 U.S.C. Sec. 7521 et seq.; and
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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 [
168 [
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170 (2)[
171 [
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)[
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)[
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)[
225 or (2)[
226 (e) "Electric-hybrid vehicle" is as defined in 42 U.S.C. Sec. 13435.
227 [
228 [
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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) [
234 after January 1, 2001, but beginning on or before December 31, [
235 claim a tax credit against tax otherwise due under this chapter in an amount equal to:
236 [
237 amount of any clean fuel grant received, up to a maximum tax credit of $3,000 per vehicle, if
238 the vehicle:
239 [
240 [
241 at least as effective in reducing air pollution as fuels under Subsection (2)(a)(i)(A); or
242 [
243 Amendments of 1990, 42 U.S.C. Sec. 7521 et seq.;
244 [
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 [
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249 to be at least as effective in reducing air pollution as fuels under Subsection
250 (2)[
251 [
252 Amendments of 1990, 42 U.S.C. Sec. 7521 et seq.; and
253 [
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 [
258 [
259 [
260 (2)[
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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, [
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 [
338 [
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 [
343 and the same vehicle model manufactured without the clean-fuel fueling system.
344 [
345 manufacturer or its contractor to use a clean fuel.
346 [
347 is owned and operated solely in the conduct of a private business enterprise.
348 [
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) [
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) [
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 [
388 [
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 [
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 [
401 Subsection 41-6-53.5 (5) is repealed December 31, [
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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