Fourth Substitute H.B. 122

This document includes House Committee Amendments incorporated into the bill on Thu, Feb 8, 2007 at 10:51 AM by jeyring. -->

Representative Wayne A. Harper proposes the following substitute bill:

1 CLEAN AIR AND EFFICIENT VEHICLE TAX
2 H. [CREDIT] INCENTIVES .H
3 2007 GENERAL SESSION
4 STATE OF UTAH
5 Chief Sponsor: Rosalind J. McGee
6 Senate Sponsor: Gregory S. Bell
7
8 LONG TITLE
9 General Description:
10 This bill provides a tax credit for new vehicles meeting air quality and fuel economy
11 standards and exempts clean fuels from taxes on motor fuels and special fuels.
12 Highlighted Provisions:
13 This bill:
14 . eliminates the clean fuel special tax;
15 . defines terms;
16 . provides a tax credit of $1,000 for new vehicles meeting air quality and fuel
17 economy standards;
18 . eliminates a provision excluding hybrid electric-gasoline vehicles from the tax
19 credit; and
20 . makes technical changes.
21 Monies Appropriated in this Bill:
22 None
23 Other Special Clauses:
24 This bill takes effect on January 1, 2008.
25 Utah Code Sections Affected:

26 AMENDS:
27 41-1a-418, as last amended by Chapter 63, Laws of Utah 2005
28 41-6a-1508, as renumbered and amended by Chapter 2, Laws of Utah 2005
29 59-7-605, as last amended by Chapters 108 and 294, Laws of Utah 2005
30 59-10-1009, as renumbered and amended by Chapter 223, Laws of Utah 2006
31 59-13-103, as last amended by Chapter 271, Laws of Utah 1997
32 59-13-304, as last amended by Chapter 1, Laws of Utah 2005, First Special Session
33 59-13-314, as last amended by Chapter 7, Laws of Utah 2003
34 72-2-124, as last amended by Chapters 11 and 135, Laws of Utah 2006
35
36 Be it enacted by the Legislature of the state of Utah:
37 Section 1. Section 41-1a-418 is amended to read:
38 41-1a-418. Authorized special group license plates.
39 (1) The division shall only issue special group license plates in accordance with
40 Sections 41-1a-418 through 41-1a-422 to a person who is specified under this section within
41 the categories listed as follows:
42 (a) disability special group license plates issued in accordance with Section 41-1a-420 ;
43 (b) honor special group license plates, as in a war hero, which plates are issued for a:
44 (i) survivor of the Japanese attack on Pearl Harbor;
45 (ii) former prisoner of war;
46 (iii) recipient of a Purple Heart; or
47 (iv) disabled veteran;
48 (c) unique vehicle type special group license plates, as for historical, collectors value,
49 or other unique vehicle type, which plates are issued for a:
50 (i) special interest vehicle;
51 (ii) vintage vehicle;
52 (iii) farm truck; or
53 (iv) vehicle powered by clean fuel [and for which a current clean special fuel certificate
54 is maintained as provided in Section 59-13-304 ] as defined in Section 59-13-102 ;
55 (d) recognition special group license plates, as in a public official or an emergency
56 service giver, which plates are issued for a:

57 (i) current member of the Legislature;
58 (ii) current member of the United States Congress;
59 (iii) current member of the National Guard;
60 (iv) licensed amateur radio operator;
61 (v) currently employed, volunteer, or retired firefighter;
62 (vi) emergency medical technician;
63 (vii) current member of a search and rescue team; or
64 (viii) current honorary consulate designated by the United States Department of State;
65 and
66 (e) support special group license plates, as for a contributor to an institution or cause,
67 which plates are issued for a contributor to:
68 (i) an institution's scholastic scholarship fund;
69 (ii) the Division of Wildlife Resources;
70 (iii) the Office of Veterans' Affairs;
71 (iv) the Division of Parks and Recreation;
72 (v) the Department of Agriculture and Food;
73 (vi) the Guardian Ad Litem Services Account and the Children's Museum of Utah;
74 (vii) the Boy Scouts of America;
75 (viii) spay and neuter programs through No More Homeless Pets in Utah;
76 (ix) the Boys and Girls Clubs of America; or
77 (x) Utah public education.
78 (2) Beginning January 1, 2003, the division may not issue a new type of special group
79 license plate unless the division receives:
80 (a) a start-up fee established under Section 63-38-3.2 for production and administrative
81 costs for providing the new special group license plates; or
82 (b) a legislative appropriation for the start-up fee provided under Subsection (2)(a).
83 (3) (a) A sponsoring organization that qualifies for tax-exempt status under Internal
84 Revenue Code Section 501(c)(3) may request the commission to authorize a new type of
85 special group license plate for the sponsoring organization. The sponsoring organization shall:
86 (i) collect a minimum of 200 applications; and
87 (ii) pay a start-up fee established under Section 63-38-3.2 for production and

88 administrative costs for providing the new type of special group license plates.
89 (b) If the provisions of Subsection (3)(a) are met, the commission shall approve the
90 request and the division shall:
91 (i) design a license plate in accordance with Section 41-1a-419 ; and
92 (ii) issue the new type of special group license plates.
93 Section 2. Section 41-6a-1508 is amended to read:
94 41-6a-1508. Low-speed vehicle.
95 (1) Except as otherwise provided in this section, a low-speed vehicle is considered a
96 motor vehicle for purposes of the Utah Code including requirements for:
97 (a) traffic rules under Title 41, Chapter 6a, Traffic Code;
98 (b) driver licensing under Title 53, Chapter 3, Uniform Driver License Act;
99 (c) motor vehicle insurance under Title 41, Chapter 12a, Financial Responsibility of
100 Motor Vehicle Owners and Operators Act;
101 (d) vehicle registration, titling, odometer statements, vehicle identification numbers,
102 license plates, and registration fees under Title 41, Chapter 1a, Motor Vehicle Act;
103 (e) vehicle taxation under Title 59, Chapter 13, Motor and Special Fuel Tax Act, and
104 fee in lieu of property taxes or in lieu fees under Section 59-2-405 ;
105 (f) motor vehicle dealer licensing under Title 41, Chapter 3, Motor Vehicle Business
106 Regulation Act;
107 (g) motor vehicle safety inspection requirements under Section 53-8-205 ; and
108 (h) safety belt requirements under Title 41, Chapter 6a, Part 18, Motor Vehicle Safety
109 Belt Usage Act.
110 (2) (a) A low-speed vehicle shall comply with federal safety standards established in 49
111 C.F.R. 571.500 and shall be equipped with:
112 (i) headlamps;
113 (ii) front and rear turn signals, tail lamps, and stop lamps;
114 (iii) turn signal lamps;
115 (iv) reflex reflectors one on the rear of the vehicle and one on the left and right side and
116 as far to the rear of the vehicle as practical;
117 (v) a parking brake;
118 (vi) a windshield that meets the standards under Section 41-6a-1635 , including a

119 device for cleaning rain, snow, or other moisture from the windshield;
120 (vii) an exterior rearview mirror on the driver's side and either an interior rearview
121 mirror or an exterior rearview mirror on the passenger side;
122 (viii) a speedometer and odometer; and
123 (ix) braking for each wheel.
124 (b) A low-speed vehicle that complies with this Subsection (2) and Subsection (3) and
125 that is not altered from the manufacturer is considered to comply with equipment requirements
126 under Part 16, Vehicle Equipment.
127 (3) A person may not operate a low-speed vehicle that has been structurally altered
128 from the original manufacturer's design.
129 [(4) A user of a low-speed vehicle shall obtain an annual clean special fuel tax
130 certificate for each low-speed vehicle as required under Section 59-13-304 .]
131 [(5)] (4) A low-speed vehicle is exempt from a motor vehicle emissions inspection and
132 maintenance program requirements under Section 41-6a-1642 .
133 [(6)] (5) (a) Except to cross a highway at an intersection, a low-speed vehicle may not
134 be operated on a highway with a posted speed limit of more than 35 miles per hour.
135 (b) In addition to the restrictions under Subsection [(6)] (5)(a), a highway authority,
136 may prohibit or restrict the operation of a low-speed vehicle on any highway under its
137 jurisdiction, if the highway authority determines the prohibition or restriction is necessary for
138 public safety.
139 [(7)] (6) A person may not operate a low-speed vehicle on a highway without
140 displaying on the rear of the low-speed vehicle, a slow-moving vehicle identification emblem
141 that complies with the Society of Automotive Engineers standard SAE J943.
142 [(8)] (7) A person who violates Subsection (2), (3), [(6)] (5), or [(7)] (6) is guilty of a
143 class C misdemeanor.
144 Section 3. Section 59-7-605 is amended to read:
145 59-7-605. Definitions -- Tax credit -- Clean and efficient vehicles.
146 (1) As used in this section:
147 (a) "Air quality standards" means that a vehicle's emissions are equal to or cleaner than
148 the standards established in bin 2 in Table S04-1, of 40 C.F.R. 86.1811-04(c)(6).
149 [(a)] (b) "Board" means the Air Quality Board created under Title 19, Chapter 2, Air

150 Conservation Act.
151 [(b)] (c) "Certified by the board" means that:
152 (i) a motor vehicle on which conversion equipment has been installed meets the
153 following criteria:
154 (A) before the installation of conversion equipment, the vehicle does not exceed the
155 emission cut points for a transient test driving cycle, as specified in 40 C.F.R. Part 51,
156 Appendix E to Subpart S, or an equivalent test for the make, model, and year of the vehicle;
157 (B) the motor vehicle's emissions of regulated pollutants, when operating on a fuel
158 listed in Subsection (2)[(a)(ii)(A)](b)(i) or (2)[(a)(ii)(B)](b)(ii), is less than the emissions were
159 before the installation of conversion equipment; and
160 (C) a reduction in emissions under Subsection (1)[(b)](c)(i)(B) is demonstrated by:
161 (I) certification of the conversion equipment by the federal Environmental Protection
162 Agency or by a state whose certification standards are recognized by the board;
163 (II) testing the motor vehicle, before and after installation of the conversion equipment,
164 in accordance with 40 C.F.R. Part 86, Control of Emissions from New and In-use Highway
165 Vehicles and Engines, using all fuel the motor vehicle is capable of using; or
166 (III) any other test or standard recognized by board rule; or
167 (ii) special mobile equipment on which conversion equipment has been installed meets
168 the following criteria:
169 (A) the special mobile equipment's emissions of regulated pollutants, when operating
170 on fuels listed in Subsection (2)[(a)(iii)(A)](c)(i) or (2)[(a)(iii)(B)](c)(ii), is less than the
171 emissions were before the installation of conversion equipment; and
172 (B) a reduction in emissions under Subsection (1)[(b)](c)(ii)(A) is demonstrated by:
173 (I) certification of the conversion equipment by the federal Environmental Protection
174 Agency or by a state whose certification standards are recognized by the board; or
175 (II) any other test or standard recognized by board rule.
176 [(c)] (d) "Clean fuel grant" means a grant awarded under Title 19, Chapter 1, Part 4,
177 Clean Fuels Conversion Program Act, for reimbursement of a portion of the incremental cost
178 of an OEM vehicle or the cost of conversion equipment.
179 [(d)] (e) "Conversion equipment" means equipment referred to in Subsection
180 (2)[(a)(ii)](b) or (2)[(a)(iii)](c).

181 [(e)] (f) "Electric-hybrid vehicle" is as defined in 42 U.S.C. Sec. 13435.
182 (g) "Fuel economy standards" means that a vehicle's combined fuel economy, as
183 determined in 40 C.F.R. 600.209-95(d) is equal to or greater than:
184 (i) 36 miles per gallon for gasoline-fueled vehicles;
185 (ii) 41 miles per gallon for diesel-fueled vehicles;
186 (iii) 26 miles per gallon for vehicles fueled by a blend of 85% ethanol and 15%
187 gasoline;
188 (iv) 23 miles per gallon for liquified petroleum gas-fueled vehicles; or
189 (v) 27 miles per gallon for compressed natural gas-fueled vehicles.
190 [(f)] (h) "Incremental cost" has the same meaning as in Section 19-1-402 .
191 [(g)] (i) "OEM vehicle" has the same meaning as in Section 19-1-402 .
192 (j) "Original purchase" means the purchase of a vehicle that has never been titled or
193 registered and has been driven less than 7,500 miles.
194 [(h)] (k) "Special mobile equipment":
195 (i) means any mobile equipment or vehicle that is not designed or used primarily for
196 the transportation of persons or property; and
197 (ii) includes construction or maintenance equipment.
198 (2) [(a) Except as provided in Subsection (2)(b), for] For taxable years beginning on or
199 after January 1, H. [ 2001 ] 2008 .H , but beginning on or before December 31, 2010, a
199a taxpayer may claim a
200 tax credit against tax otherwise due under this chapter or Chapter 8, Gross Receipts Tax on
201 Certain Corporations Not Required to Pay Corporate Franchise or Income Tax Act, in an
202 amount equal to:
203 [(i) 50% of the incremental cost of an OEM vehicle registered in Utah minus the
204 amount of any clean fuel grant received, up to a maximum tax credit of $3,000 per vehicle, if
205 the vehicle:]
206 [(A) is fueled by propane, natural gas, or electricity;]
207 [(B) is fueled by other fuel the board determines annually on or before July 1 to be at
208 least as effective in reducing air pollution as fuels under Subsection (2)(a)(i)(A); or]
209 [(C) meets the clean-fuel vehicle standards in the federal Clean Air Act Amendments
210 of 1990, 42 U.S.C. Sec. 7521 et seq.;]
211 (a) $1,000 for the original purchase of a new vehicle if the vehicle meets air quality and

212 fuel economy standards;
213 [(ii)] (b) 50% of the cost of equipment for conversion, if certified by the board, of a
214 motor vehicle registered in Utah minus the amount of any clean fuel grant received, up to a
215 maximum tax credit of $2,500 per motor vehicle, if the motor vehicle is to:
216 [(A)] (i) be fueled by propane, natural gas, or electricity;
217 [(B)] (ii) be fueled by other fuel the board determines annually on or before July 1 to
218 be at least as effective in reducing air pollution as fuels under Subsection (2)[(a)(ii)(A)](b)(i);
219 or
220 [(C)] (iii) meet the federal clean-fuel vehicle standards in the federal Clean Air Act
221 Amendments of 1990, 42 U.S.C. Sec. 7521 et seq.; and
222 [(iii)] (c) 50% of the cost of equipment for conversion, if certified by the board, of a
223 special mobile equipment engine minus the amount of any clean fuel grant received, up to a
224 maximum tax credit of $1,000 per special mobile equipment engine, if the special mobile
225 equipment is to be fueled by:
226 [(A)] (i) propane, natural gas, or electricity; or
227 [(B)] (ii) other fuel the board determines annually on or before July 1 to be:
228 [(I)] (A) at least as effective in reducing air pollution as the fuels under Subsection
229 (2)[(a)(iii)(A)](c)(i); or
230 [(II)] (B) substantially more effective in reducing air pollution than the fuel for which
231 the engine was originally designed.
232 [(b) Notwithstanding Subsection (2)(a), for taxable years beginning on or after January
233 1, 2006, a taxpayer may not claim a tax credit under this section with respect to an
234 electric-hybrid vehicle.]
235 (3) A taxpayer shall provide proof of the purchase of an item for which a tax credit is
236 allowed under this section by:
237 (a) providing proof to the board in the form the board requires by rule;
238 (b) receiving a written statement from the board acknowledging receipt of the proof;
239 and
240 (c) retaining the written statement described in Subsection (3)(b).
241 (4) Except as provided by Subsection (5), the tax credit under this section is allowed
242 only:

243 (a) against any Utah tax owed in the taxable year by the taxpayer;
244 (b) in the taxable year in which the item is purchased for which the tax credit is
245 claimed; and
246 (c) once per vehicle.
247 (5) If the amount of a tax credit claimed by a taxpayer under this section exceeds the
248 taxpayer's tax liability under this chapter for a taxable year, the amount of the tax credit
249 exceeding the tax liability may be carried forward for a period that does not exceed the next
250 five taxable years.
251 Section 4. Section 59-10-1009 is amended to read:
252 59-10-1009. Definitions -- Tax credit -- Clean and efficient vehicles.
253 (1) As used in this section:
254 (a) "Air quality standards" means that a vehicle's emissions are equal to or cleaner than
255 the standards established in bin 2 in Table S04-1, of 40 C.F.R. 86.1811-04(c)(6).
256 [(a)] (b) "Board" means the Air Quality Board created in Title 19, Chapter 2, Air
257 Conservation Act.
258 [(b)] (c) "Certified by the board" means that:
259 (i) a motor vehicle on which conversion equipment has been installed meets the
260 following criteria:
261 (A) before the installation of conversion equipment, the vehicle does not exceed the
262 emission cut points for a transient test driving cycle, as specified in 40 C.F.R. Part 51,
263 Appendix E to Subpart S, or an equivalent test for the make, model, and year of the vehicle;
264 (B) the motor vehicle's emissions of regulated pollutants, when operating on fuels
265 listed in Subsection (2)[(a)(ii)(A)](b)(i) or (2)[(a)(ii)(B)](b)(ii), is less than the emissions were
266 before the installation of conversion equipment; and
267 (C) a reduction in emissions under Subsection (1)[(b)](c)(i)(B) is demonstrated by:
268 (I) certification of the conversion equipment by the federal Environmental Protection
269 Agency or by a state whose certification standards are recognized by the board;
270 (II) testing the motor vehicle, before and after installation of the conversion equipment,
271 in accordance with 40 C.F.R. Part 86, Control Emissions from New and In-use Highway
272 Vehicles and Engines, using all fuels the motor vehicle is capable of using; or
273 (III) any other test or standard recognized by board rule; or

274 (ii) special mobile equipment on which conversion equipment has been installed meets
275 the following criteria:
276 (A) the special mobile equipment's emissions of regulated pollutants, when operating
277 on fuels listed in Subsection (2)[(a)(iii)(A)](c)(i) or (2)[(a)(iii)(B)](c)(ii), is less than the
278 emissions were before the installation of conversion equipment; and
279 (B) a reduction in emissions under Subsection (1)[(b)](c)(ii)(A) is demonstrated by:
280 (I) certification of the conversion equipment by the federal Environmental Protection
281 Agency or by a state whose certification standards are recognized by the board; or
282 (II) any other test or standard recognized by the board.
283 [(c)] (d) "Clean fuel grant" means a grant a claimant, estate, or trust receives under
284 Title 19, Chapter 1, Part 4, Clean Fuels Conversion Program Act, for reimbursement of a
285 portion of the incremental cost of the OEM vehicle or the cost of conversion equipment.
286 [(d)] (e) "Conversion equipment" means equipment referred to in Subsection
287 (2)[(a)(ii)](b) or (2)[(a)(iii)](c).
288 [(e)] (f) "Electric-hybrid vehicle" is as defined in 42 U.S.C. Sec. 13435.
289 (g) "Fuel economy standards" means that a vehicle's combined fuel economy, as
290 determined in 40 C.F.R. 600.209-95(d) is equal to or greater than:
291 (i) 36 miles per gallon for gasoline-fueled vehicles;
292 (ii) 41 miles per gallon for diesel-fueled vehicles;
293 (iii) 26 miles per gallon for vehicles fueled by a blend of 85% ethanol and 15%
294 gasoline;
295 (iv) 23 miles per gallon for liquified petroleum gas-fueled vehicles; or
296 (v) 27 miles per gallon for compressed natural gas-fueled vehicles.
297 [(f)] (h) "Incremental cost" has the same meaning as in Section 19-1-402 .
298 [(g)] (i) "OEM vehicle" has the same meaning as in Section 19-1-402 .
299 (j) "Original purchase" means the purchase of a vehicle that has never been titled or
300 registered and has been driven less than 7,500 miles.
301 [(h)] (k) "Special mobile equipment":
302 (i) means any mobile equipment or vehicle not designed or used primarily for the
303 transportation of persons or property; and
304 (ii) includes construction or maintenance equipment.

305 (2) [(a) Except as provided in Subsection (2)(b), for] For taxable years beginning on or
306 after January 1, H. [ 2001 ] 2008 .H , but beginning on or before December 31, 2010,
306a a claimant, estate, or
307 trust may claim a nonrefundable tax credit against tax otherwise due under this chapter in an
308 amount equal to:
309 [(i) 50% of the incremental cost of an OEM vehicle registered in Utah minus the
310 amount of any clean fuel grant received, up to a maximum tax credit of $3,000 per vehicle, if
311 the vehicle:]
312 [(A) is fueled by propane, natural gas, or electricity;]
313 [(B) is fueled by other fuel the board determines annually on or before July 1 to be at
314 least as effective in reducing air pollution as fuels under Subsection (2)(a)(i)(A); or]
315 [(C) meets the clean-fuel vehicle standards in the federal Clean Air Act Amendments
316 of 1990, 42 U.S.C. Sec. 7521 et seq.;]
317 (a) $1,000 for the original purchase of a new vehicle if the vehicle meets air quality and
318 fuel economy standards;
319 [(ii)] (b) 50% of the cost of equipment for conversion, if certified by the board, of a
320 motor vehicle registered in Utah minus the amount of any clean fuel conversion grant received,
321 up to a maximum tax credit of $2,500 per vehicle, if the motor vehicle:
322 [(A)] (i) is to be fueled by propane, natural gas, or electricity;
323 [(B)] (ii) is to be fueled by other fuel the board determines annually on or before July 1
324 to be at least as effective in reducing air pollution as fuels under Subsection (2)[(a)(ii)(A)]
325 (b)(i); or
326 [(C)] (iii) will meet the federal clean fuel vehicle standards in the federal Clean Air Act
327 Amendments of 1990, 42 U.S.C. Sec. 7521 et seq.; and
328 [(iii)] (c) 50% of the cost of equipment for conversion, if certified by the board, of a
329 special mobile equipment engine minus the amount of any clean fuel conversion grant
330 received, up to a maximum tax credit of $1,000 per special mobile equipment engine, if the
331 special mobile equipment is to be fueled by:
332 [(A)] (i) propane, natural gas, or electricity; or
333 [(B)] (ii) other fuel the board determines annually on or before July 1 to be:
334 [(I)] (A) at least as effective in reducing air pollution as the fuels under Subsection
335 (2)[(a)(iii)(A)](c)(i); or

336 [(II)] (B) substantially more effective in reducing air pollution than the fuel for which
337 the engine was originally designed.
338 [(b) Notwithstanding Subsection (2)(a), for taxable years beginning on or after January
339 1, 2006, a claimant, estate, or trust may not claim a tax credit under this section with respect to
340 an electric-hybrid vehicle.]
341 (3) A claimant, estate, or trust shall provide proof of the purchase of an item for which
342 a tax credit is allowed under this section by:
343 (a) providing proof to the board in the form the board requires by rule;
344 (b) receiving a written statement from the board acknowledging receipt of the proof;
345 and
346 (c) retaining the written statement described in Subsection (3)(b).
347 (4) Except as provided by Subsection (5), the tax credit under this section is allowed
348 only:
349 (a) against any Utah tax owed in the taxable year by the claimant, estate, or trust;
350 (b) in the taxable year in which the item is purchased for which the tax credit is
351 claimed; and
352 (c) once per vehicle.
353 (5) If the amount of a tax credit claimed by a claimant, estate, or trust under this
354 section exceeds the claimant's, estate's, or trust's tax liability under this chapter for a taxable
355 year, the amount of the tax credit exceeding the tax liability may be carried forward for a period
356 that does not exceed the next five taxable years.
357 Section 5. Section 59-13-103 is amended to read:
358 59-13-103. List of clean fuels provided to tax commission -- Report to the
359 Legislature.
360 (1) The Air Quality Board shall annually provide to the tax commission a list of fuels
361 that are clean fuels under Section 59-13-102 .
362 (2) The Air Quality Board created under Section 19-2-103 shall in conjunction with the
363 State Tax Commission prepare and submit to the Legislature before January 1, 1995, a report
364 evaluating the impacts, benefits, and economic consequences of the clean fuel [certificate]
365 provisions of Sections 59-13-201 and 59-13-301 .
366 Section 6. Section 59-13-304 is amended to read:

367 59-13-304. Exemptions from Special Fuel Tax -- Inspection of clean fuel vehicles.
368 [(1) (a) Except as provided in Subsection (4), a user of special fuel who owns a vehicle
369 powered by a clean special fuel as defined under Section 59-13-102 shall pay a clean special
370 fuel tax as provided under this section for use of clean special fuel.]
371 [(b) A user of special fuel who qualifies for the clean special fuel tax shall annually
372 purchase from the commission a clean special fuel tax certificate for each vehicle owned or
373 leased that is powered by a clean special fuel.]
374 [(c) Clean special fuel tax certificates are provided to encourage the use of clean fuels
375 to reduce air pollution.]
376 [(2) (a) The fee for a clean special fuel tax certificate is:]
377 [(i) 70/.19 of the tax per gallon imposed under Subsection 59-13-201 (1)(a), rounded up
378 to the nearest dollar, for qualified motor vehicles as defined under Section 59-13-102 ; and]
379 [(ii) 36/.19 of the tax per gallon imposed under Subsection 59-13-201 (1)(a), rounded
380 up to the nearest dollar, for other vehicles.]
381 (1) A vehicle that operates on clean fuel is exempt from the special fuel tax.
382 [(b)] (2) The commission may require each clean fuel vehicle to be inspected for safe
383 operation [before issuing the certificate].
384 [(c)] (3) Each clean fuel vehicle shall be equipped with an approved and properly
385 installed carburetion system if it is powered by a fuel that is gaseous at standard atmospheric
386 conditions.
387 [(3) (a) Beginning January 1, 2001 through December 31, 2010, there is imposed a
388 surcharge of $35 on each clean special fuel tax certificate issued under this section.]
389 [(b) (i) Until Subsection (3)(b)(ii) applies, surcharges imposed under Subsection (3)(a)
390 shall be deposited into the Centennial Highway Fund Restricted Account created under Section
391 72-2-118 .]
392 [(ii) When the highway general obligation bonds have been paid off and the highway
393 projects completed that are intended to be paid from revenues deposited in the Centennial
394 Highway Fund Restricted Account as determined by the Executive Appropriations Committee
395 under Subsection 72-2-118 (6)(d), the surcharge imposed under Subsection (3)(a) shall be
396 deposited into the Transportation Investment Fund of 2005 created by Section 72-2-124 .]
397 [(4) A governmental entity identified in Subsection 59-13-301 (9) that owns or leases a

398 vehicle powered by a special fuel that qualifies as a clean special fuel is exempt from the clean
399 special fuel tax imposed under this section.]
400 Section 7. Section 59-13-314 is amended to read:
401 59-13-314. Special fuel user permit required before registration of vehicle.
402 Before registering any motor vehicle which is operated by special fuels, the registered
403 owner or lessee of the vehicle shall obtain[: (1)] a valid special fuel user permit for the current
404 year if required under Section 59-13-303 [; or].
405 [(2) a valid clean special fuel tax certificate for the current year if required under
406 Section 59-13-304 .]
407 Section 8. Section 72-2-124 is amended to read:
408 72-2-124. Transportation Investment Fund of 2005.
409 (1) There is created a special revenue fund entitled the Transportation Investment Fund
410 of 2005.
411 (2) The fund consists of monies generated from the following sources:
412 (a) any voluntary contributions received for the maintenance, construction,
413 reconstruction, or renovation of state and federal highways; and
414 (b) appropriations made to the fund by the Legislature.
415 (3) When the highway general obligation bonds have been paid off and the highway
416 projects completed that are intended to be paid from revenues deposited in the Centennial
417 Highway Fund Restricted Account as determined by the Executive Appropriations Committee
418 under Subsection 72-2-118 (6)(d), the fund shall also consist of monies generated from the
419 following sources:
420 (a) registration fees designated under Subsection 41-1a-1201 (6)(a); and
421 [(b) the clean special fuel tax certificate surcharge under Subsection 59-13-304 (3);
422 and]
423 [(c)] (b) the sales and use tax amounts provided for in Section 59-12-103 .
424 (4) (a) The fund shall earn interest.
425 (b) All interest earned on fund monies shall be deposited into the fund.
426 (5) (a) Except as provided in Subsections (5)(b) and (c), the executive director may use
427 fund monies only to pay the costs of maintenance, construction, reconstruction, or renovation
428 to state and federal highways prioritized by the Transportation Commission through the

429 prioritization process for new transportation capacity projects adopted under Section 72-1-304 .
430 (b) The executive director may use fund monies deposited into the fund in fiscal year
431 2006 only to pay the costs of maintenance, construction, reconstruction, or renovation to state
432 and federal highways prioritized by the Transportation Commission.
433 (c) The executive director may use fund monies to exchange for an equal or greater
434 amount of federal transportation funds to be used as provided in Subsection (5)(a).
435 Section 9. Effective date.
436 This bill takes effect on January 1, 2008.