Chief Sponsor: Timothy D. Hawkes

Senate Sponsor: Brian E. Shiozawa


8     General Description:
9           This bill enacts the Environmental Mitigation and Response Act and modifies vehicle
10     registration requirements.
11     Highlighted Provisions:
12          This bill:
13          ▸     establishes the Environmental Mitigation and Response Act, including establishing
14     an expendable special revenue fund;
15          ▸     states that the director of the Department of Environmental Quality may administer
16     the expendable special revenue fund;
17          ▸     states that, in certain circumstances, vehicle registration may not be denied on the
18     basis of:
19               •     a defeat device; or
20               •     an Environmental Protection Agency-approved modification; and
21          ▸     makes technical changes.
22     Money Appropriated in this Bill:
23          None
24     Other Special Clauses:
25          None
26     Utah Code Sections Affected:
27     AMENDS:

28          19-1-202, as last amended by Laws of Utah 2009, Chapter 377
29          41-6a-1642, as last amended by Laws of Utah 2015, Chapter 258
30     ENACTS:
31          19-1-601, Utah Code Annotated 1953
32          19-1-602, Utah Code Annotated 1953
33          19-1-603, Utah Code Annotated 1953
34          19-1-604, Utah Code Annotated 1953

36     Be it enacted by the Legislature of the state of Utah:
37          Section 1. Section 19-1-202 is amended to read:
38          19-1-202. Duties and powers of the executive director.
39          (1) The executive director shall:
40          (a) administer and supervise the department;
41          (b) coordinate policies and program activities conducted through boards, divisions, and
42     offices of the department;
43          (c) approve the proposed budget of each board, division, and office within the
44     department;
45          (d) approve all applications for federal grants or assistance in support of any
46     department program;
47          (e) with the governor's specific, prior approval, expend funds appropriated by the
48     Legislature necessary for participation by the state in any fund, property, or service provided by
49     the federal government; and
50          (f) in accordance with Section 19-1-301, appoint one or more administrative law
51     judges to hear an adjudicative proceeding within the department.
52          (2) The executive director may:
53          (a) issue orders to enforce state laws and rules established by the department except
54     where the enforcement power is given to a board created under Section 19-1-106, unless the
55     executive director finds that a condition exists that creates a clear and present hazard to the
56     public health or the environment and requires immediate action, and if the enforcement power
57     is vested with a board created under Section 19-1-106, the executive director may with the
58     concurrence of the governor order any person causing or contributing to the condition to

59     reduce, mitigate, or eliminate the condition;
60          (b) with the approval of the governor, participate in the distribution, disbursement, or
61     administration of any fund or service, advanced, offered, or contributed by the federal
62     government for purposes consistent with the powers and duties of the department;
63          (c) accept and receive funds and gifts available from private and public groups for the
64     purposes of promoting and protecting the public health and the environment and expend the
65     funds as appropriated by the Legislature;
66          (d) make policies not inconsistent with law for the internal administration and
67     government of the department, the conduct of its employees, and the custody, use, and
68     preservation of the records, papers, books, documents, and property of the department;
69          (e) create advisory committees as necessary to assist in carrying out the provisions of
70     this title;
71          (f) appoint division directors who may be removed at the will of the executive director
72     and who shall be compensated in an amount fixed by the executive director;
73          (g) advise, consult, and cooperate with other agencies of the state, the federal
74     government, other states and interstate agencies, affected groups, political subdivisions, and
75     industries in carrying out the purposes of this title;
76          (h) consistent with Title 67, Chapter 19, Utah State Personnel Management Act,
77     employ employees necessary to meet the requirements of this title;
78          (i) authorize any employee or representative of the division to conduct inspections as
79     permitted in this title;
80          (j) encourage, participate in, or conduct any studies, investigations, research, and
81     demonstrations relating to hazardous materials or substances releases necessary to meet the
82     requirements of this title;
83          (k) collect and disseminate information about hazardous materials or substances
84     releases;
85          (l) review plans, specifications, or other data relating to hazardous substances releases
86     as provided in this title; [and]
87          (m) maintain, update not less than annually, and make available to the public a record
88     of sites, by name and location, at which response actions for the protection of the public health
89     and environment under Title 19, Chapter 6, Part 3, Hazardous Substances Mitigation Act, or

90     under Title 19, Chapter 8, Voluntary Cleanup Program, have been completed in the previous
91     calendar year, and those that the department plans to address in the upcoming year pursuant to
92     this title, including if upon completion of the response action the site:
93          (i) will be suitable for unrestricted use; or
94          (ii) will be suitable only for restricted use, stating the institutional controls identified in
95     the remedy to which use of the site is subject[.]; and
96          (n) for purposes of implementing environmental mitigation and response actions:
97          (i) accept and receive environmental mitigation and response funds from private and
98     public groups, including as a condition of a consent decree, settlement agreement, stipulated
99     agreement, or court order; and
100          (ii) administer the implementation of environmental mitigation and response actions in
101     accordance with the terms and conditions in which funds were received, including:
102          (A) disbursing funds to private or public entities, governmental units, state agencies, or
103     Native American tribes;
104          (B) expending funds to implement environmental mitigation and response actions; and
105          (C) returning unused funds to the original source of the funds as a condition of receipt
106     of the funds, if applicable.
107          Section 2. Section 19-1-601 is enacted to read:

109          19-1-601. Title.
110          This chapter is known as the "Environmental Mitigation and Response Act."
111          Section 3. Section 19-1-602 is enacted to read:
112          19-1-602. Definitions.
113          As used in this chapter:
114          (1) "Environmental mitigation" means an action or activity intended to remedy, reduce,
115     or offset known negative impacts to the environment.
116          (2) "Environmental response action" means action taken to prevent, eliminate,
117     minimize, investigate, monitor, clean up, or remove contaminants in the environment.
118          (3) "Financial assurance" means a mechanism or instrument intended to provide funds
119     if necessary to the department to conduct closure, monitoring, or cleanup of a specific facility
120     or site in accordance with the applicable environmental requirements provided in this title.

121          (4) "Funding source" means an individual or entity that provides a monetary
122     contribution to the Environmental Mitigation and Response Fund.
123          (5) "Natural resource damage" means damages to land, fish, wildlife, biota, air, water,
124     ground water, drinking water supplies, and other resources that are held in trust for the public
125     or otherwise controlled by the United States, the state, or local government.
126          (6) "Unused funds" means the remaining funds from a specific funding source
127     following the complete implementation of the environmental mitigation or response actions
128     pursuant to the terms and conditions of the contribution.
129          Section 4. Section 19-1-603 is enacted to read:
130          19-1-603. Environmental Mitigation and Response Fund.
131          (1) There is created an expendable special revenue fund known as the Environmental
132     Mitigation and Response Fund.
133          (2) The fund consists of:
134          (a) public and private funding sources made under Subsections (3) and (4);
135          (b) legally binding bankruptcy, financial assurance, or natural resource damage claim
136     settlements; and
137          (c) if permissible under the terms of the contribution, interest earnings on cash
138     balances.
139          (3) The department may accept contributions for deposit into the fund from public and
140     private sources, including from a source as a condition of a consent decree, settlement
141     agreement, stipulated agreement, or court order.
142          (4) If funds are deposited as part of a consent decree, settlement agreement, stipulated
143     agreement, or court order, the source of the funding may specify terms and conditions in which
144     the funds may be used, in accordance with the consent decree, settlement agreement, stipulated
145     agreement, or court order.
146          (5) Unless mandated by court order, the department may refuse funds if the department
147     determines it is incapable of meeting the terms and conditions of the agreement to obtain the
148     funds, including covering the costs to administer the fund and oversee the implementation of
149     the specific mitigation or response action.
150          (6) The fund may account for assets held by the state as trustee or agent for:
151          (a) an individual;

152          (b) a private or public entity;
153          (c) another governmental unit, including a local or federal agency;
154          (d) a state agency; or
155          (e) a Native American tribe.
156          Section 5. Section 19-1-604 is enacted to read:
157          19-1-604. Environmental mitigation.
158          (1) The director shall administer the fund created in Section 19-1-603.
159          (2) The director may:
160          (a) disburse funds to an authorized individual or public, private, or governmental
161     entity, or Native American tribe to implement a specified environmental mitigation action in
162     accordance with any terms and conditions associated with the funding source, as provided in
163     Subsection 19-1-603(4);
164          (b) expend funds to implement certain environmental mitigation actions in accordance
165     with any terms and conditions associated with the funding source, as provided in Subsection
166     19-1-603(4);
167          (c) expend funds to implement an environmental response action or site closure, in
168     accordance with any terms and conditions associated with the funding source, as provided in
169     Subsection 19-1-603(4);
170          (d) expend funds to cover actual administrative expenditures in accordance with any
171     terms and conditions associated with the funds as provided in Subsection 19-1-603(4); and
172          (e) return unused funds to the funding source, if required under the terms and
173     conditions as provided in Subsection 19-1-603(4).
174          (3) For an environmental response action conducted pursuant to Subsection
175     19-1-604(2)(c), the director shall comply with applicable environmental cleanup standards
176     described in this title.
177          (4) If the director disburses funds to another state agency in accordance with
178     Subsection (2)(a), that agency may expend the funds in accordance with any terms and
179     conditions associated with the fund contributions as provided in Subsection 19-1-603(4),
180     including returning any unused funds to the department.
181          (5) Following the completion of an environmental mitigation and response action, any
182     excess funds not returned to the funding source as provided in Subsection 19-1-603(4) shall be

183     transferred to the Hazardous Substances Mitigation Fund, in accordance with Section
184     19-6-307.
185          Section 6. Section 41-6a-1642 is amended to read:
186          41-6a-1642. Emissions inspection -- County program.
187          (1) The legislative body of each county required under federal law to utilize a motor
188     vehicle emissions inspection and maintenance program or in which an emissions inspection
189     and maintenance program is necessary to attain or maintain any national ambient air quality
190     standard shall require:
191          (a) a certificate of emissions inspection, a waiver, or other evidence the motor vehicle
192     is exempt from emissions inspection and maintenance program requirements be presented:
193          (i) as a condition of registration or renewal of registration; and
194          (ii) at other times as the county legislative body may require to enforce inspection
195     requirements for individual motor vehicles, except that the county legislative body may not
196     routinely require a certificate of emission inspection, or waiver of the certificate, more often
197     than required under Subsection [(6)] (7); and
198          (b) compliance with this section for a motor vehicle registered or principally operated
199     in the county and owned by or being used by a department, division, instrumentality, agency, or
200     employee of:
201          (i) the federal government;
202          (ii) the state and any of its agencies; or
203          (iii) a political subdivision of the state, including school districts.
204          (2) A motor vehicle emissions inspection and maintenance program described in
205     Subsection (1) may not deny vehicle registration based solely on the presence of a defeat
206     device covered in a partial consent decree or an Environmental Protection Agency-approved
207     modification, including in the following vehicles:
208          (a) a 2.0-liter diesel engine motor vehicle in which its life time nitrogen oxide
209     emissions are mitigated in the state pursuant to a partial consent decree, including:
210          (i) Volkswagen Jetta, model years 2009, 2010, 2011, 2012, 2013, 2014, and 2015;
211          (ii) Volkswagen Jetta Sportwagen, model years 2009, 2010, 2011, 2012, 2013, and
212     2014;
213          (iii) Volkswagen Golf, model years 2010, 2011, 2012, 2013, 2014, and 2015;

214          (iv) Volkswagen Golf Sportwagen, model year 2015;
215          (v) Volkswagen Passat, model years 2012, 2013, 2014, and 2015;
216          (vi) Volkswagen Beetle, model years 2013, 2014, and 2015;
217          (vii) Volkswagen Beetle Convertible, model years 2013, 2014, and 2015; and
218          (viii) Audi A3, model years 2010, 2011, 2012, 2013, and 2015; and
219          (b) a 3.0-liter diesel engine motor vehicle in which its lifetime nitrogen oxide
220     emissions are mitigated in the state to a settlement, including:
221          (i) Volkswagen Touareg, model years 2009, 2010, 2011, 2012, 2013, 2014, 2015, and
222     2016;
223          (ii) Audi Q7, model years 2009, 2010, 2011, 2012, 2013, 2014, 2015, and 2016;
224          (iii) Audi A6 Quattro, model years 2014, 2015, and 2016;
225          (iv) Audi A7 Quattro, model years 2014, 2015, and 2016;
226          (v) Audi A8, model years 2014, 2015, and 2016;
227          (vi) Audi A8L, model years 2014, 2015, and 2016;
228          (vii) Audi Q5, model years 2014, 2015, and 2016; and
229          (viii) Porsche Cayenne Diesel, model years 2013, 2014, 2015, and 2016.
230          [(2)] (3) (a) The legislative body of a county identified in Subsection (1), in
231     consultation with the Air Quality Board created under Section 19-1-106, shall make regulations
232     or ordinances regarding:
233          (i) emissions standards;
234          (ii) test procedures;
235          (iii) inspections stations;
236          (iv) repair requirements and dollar limits for correction of deficiencies; and
237          (v) certificates of emissions inspections.
238          (b) The regulations or ordinances shall:
239          (i) be made to attain or maintain ambient air quality standards in the county, consistent
240     with the state implementation plan and federal requirements;
241          (ii) may allow for a phase-in of the program by geographical area; and
242          (iii) be compliant with the analyzer design and certification requirements contained in
243     the state implementation plan prepared under Title 19, Chapter 2, Air Conservation Act.
244          (c) The county legislative body and the Air Quality Board shall give preference to an

245     inspection and maintenance program that is:
246          (i) decentralized, to the extent the decentralized program will attain and maintain
247     ambient air quality standards and meet federal requirements;
248          (ii) the most cost effective means to achieve and maintain the maximum benefit with
249     regard to ambient air quality standards and to meet federal air quality requirements as related to
250     vehicle emissions; and
251          (iii) providing a reasonable phase-out period for replacement of air pollution emission
252     testing equipment made obsolete by the program.
253          (d) The provisions of Subsection [(2)] (3)(c)(iii) apply only to the extent the phase-out:
254          (i) may be accomplished in accordance with applicable federal requirements; and
255          (ii) does not otherwise interfere with the attainment and maintenance of ambient air
256     quality standards.
257          [(3)] (4) The following vehicles are exempt from the provisions of this section:
258          (a) an implement of husbandry;
259          (b) a motor vehicle that:
260          (i) meets the definition of a farm truck under Section 41-1a-102; and
261          (ii) has a gross vehicle weight rating of 12,001 pounds or more;
262          (c) a vintage vehicle as defined in Section 41-21-1;
263          (d) a custom vehicle as defined in Section 41-6a-1507; and
264          (e) to the extent allowed under the current federally approved state implementation
265     plan, in accordance with the federal Clean Air Act, 42 U.S.C. Sec. 7401, et seq., a motor
266     vehicle that is less than two years old on January 1 based on the age of the vehicle as
267     determined by the model year identified by the manufacturer.
268          [(4)] (5) (a) The legislative body of a county identified in Subsection (1) shall exempt a
269     pickup truck, as defined in Section 41-1a-102, with a gross vehicle weight of 12,000 pounds or
270     less from the emission inspection requirements of this section, if the registered owner of the
271     pickup truck provides a signed statement to the legislative body stating the truck is used:
272          (i) by the owner or operator of a farm located on property that qualifies as land in
273     agricultural use under Sections 59-2-502 and 59-2-503; and
274          (ii) exclusively for the following purposes in operating the farm:
275          (A) for the transportation of farm products, including livestock and its products,

276     poultry and its products, floricultural and horticultural products; and
277          (B) in the transportation of farm supplies, including tile, fence, and every other thing or
278     commodity used in agricultural, floricultural, horticultural, livestock, and poultry production
279     and maintenance.
280          (b) The county shall provide to the registered owner who signs and submits a signed
281     statement under this section a certificate of exemption from emission inspection requirements
282     for purposes of registering the exempt vehicle.
283          [(5)] (6) (a) Subject to Subsection [(5)] (6)(c), the legislative body of each county
284     required under federal law to utilize a motor vehicle emissions inspection and maintenance
285     program or in which an emissions inspection and maintenance program is necessary to attain or
286     maintain any national ambient air quality standard may require each college or university
287     located in a county subject to this section to require its students and employees who park a
288     motor vehicle not registered in a county subject to this section to provide proof of compliance
289     with an emissions inspection accepted by the county legislative body if the motor vehicle is
290     parked on the college or university campus or property.
291          (b) College or university parking areas that are metered or for which payment is
292     required per use are not subject to the requirements of this Subsection [(5)] (6).
293          (c) The legislative body of a county shall make the reasons for implementing the
294     provisions of this Subsection [(5)] (6) part of the record at the time that the county legislative
295     body takes its official action to implement the provisions of this Subsection [(5)] (6).
296          [(6)] (7) (a) An emissions inspection station shall issue a certificate of emissions
297     inspection for each motor vehicle that meets the inspection and maintenance program
298     requirements established in rules made under Subsection [(2)] (3).
299          (b) The frequency of the emissions inspection shall be determined based on the age of
300     the vehicle as determined by model year and shall be required annually subject to the
301     provisions of Subsection [(6)] (7)(c).
302          (c) (i) To the extent allowed under the current federally approved state implementation
303     plan, in accordance with the federal Clean Air Act, 42 U.S.C. Sec. 7401 et seq., the legislative
304     body of a county identified in Subsection (1) shall only require the emissions inspection every
305     two years for each vehicle.
306          (ii) The provisions of Subsection [(6)] (7)(c)(i) apply only to a vehicle that is less than

307     six years old on January 1.
308          (iii) For a county required to implement a new vehicle emissions inspection and
309     maintenance program on or after December 1, 2012, under Subsection (1), but for which no
310     current federally approved state implementation plan exists, a vehicle shall be tested at a
311     frequency determined by the county legislative body, in consultation with the Air Quality
312     Board created under Section 19-1-106, that is necessary to comply with federal law or attain or
313     maintain any national ambient air quality standard.
314          (iv) If a county legislative body establishes or changes the frequency of a vehicle
315     emissions inspection and maintenance program under Subsection [(6)] (7)(c)(iii), the
316     establishment or change shall take effect on January 1 if the State Tax Commission receives
317     notice meeting the requirements of Subsection [(6)] (7)(c)(v) from the county prior to October
318     1.
319          (v) The notice described in Subsection [(6)] (7)(c)(iv) shall:
320          (A) state that the county will establish or change the frequency of the vehicle emissions
321     inspection and maintenance program under this section;
322          (B) include a copy of the ordinance establishing or changing the frequency; and
323          (C) if the county establishes or changes the frequency under this section, state how
324     frequently the emissions testing will be required.
325          (d) If an emissions inspection is only required every two years for a vehicle under
326     Subsection [(6)] (7)(c), the inspection shall be required for the vehicle in:
327          (i) odd-numbered years for vehicles with odd-numbered model years; or
328          (ii) in even-numbered years for vehicles with even-numbered model years.
329          [(7)] (8) The emissions inspection shall be required within the same time limit
330     applicable to a safety inspection under Section 41-1a-205.
331          [(8)] (9) (a) A county identified in Subsection (1) shall collect information about and
332     monitor the program.
333          (b) A county identified in Subsection (1) shall supply this information to an appropriate
334     legislative committee, as designated by the Legislative Management Committee, at times
335     determined by the designated committee to identify program needs, including funding needs.
336          [(9)] (10) If approved by the county legislative body, a county that had an established
337     emissions inspection fee as of January 1, 2002, may increase the established fee that an

338     emissions inspection station may charge by $2.50 for each year that is exempted from
339     emissions inspections under Subsection [(6)] (7)(c) up to a $7.50 increase.
340          [(10)] (11) (a) A county identified in Subsection (1) may impose a local emissions
341     compliance fee on each motor vehicle registration within the county in accordance with the
342     procedures and requirements of Section 41-1a-1223.
343          (b) A county that imposes a local emissions compliance fee shall use revenues
344     generated from the fee for the establishment and enforcement of an emissions inspection and
345     maintenance program in accordance with the requirements of this section.

Legislative Review Note
Office of Legislative Research and General Counsel