1     
FREIGHT SWITCHER EMISSIONS MITIGATION

2     
2018 GENERAL SESSION

3     
STATE OF UTAH

4     
Chief Sponsor: Stephen G. Handy

5     
Senate Sponsor: Todd Weiler

6     

7     LONG TITLE
8     General Description:
9          This bill amends requirements for grants issued under the Clean Air Retrofit,
10     Replacement, and Off-road Technology Program.
11     Highlighted Provisions:
12          This bill:
13          ▸     defines terms;
14          ▸     creates procedures for grants issued for the reduction of freight switcher locomotive
15     emissions;
16          ▸     creates terms for grants issued for the reduction of freight switcher locomotive
17     emissions; and
18          ▸     makes technical changes.
19     Money Appropriated in this Bill:
20          This bill appropriates in fiscal year 2019:
21          ▸     to the Department of Environmental Quality - Clean Air Retrofit, Replacement, and
22     Off-road Technology, as a one-time appropriation:
23               •     from the General Fund, One-time, $2,000,000.
24     Other Special Clauses:
25          This bill provides a special effective date.
26     Utah Code Sections Affected:
27     AMENDS:
28          19-2-202, as last amended by Laws of Utah 2016, Chapter 321
29          19-2-203, as enacted by Laws of Utah 2014, Chapter 295
30          19-2-204, as enacted by Laws of Utah 2014, Chapter 295
31          63J-1-602.1 (Superseded 09/30/18), as last amended by Laws of Utah 2017, Chapters
32     88, 194, and 383
33          63J-1-602.1 (Effective 09/30/18), as last amended by Laws of Utah 2017, Chapters 88,
34     107, 194, and 383
35     

36     Be it enacted by the Legislature of the state of Utah:
37          Section 1. Section 19-2-202 is amended to read:
38          19-2-202. Definitions.
39          As used in this part:
40          (1) "Board" means the Air Quality Board.
41          (2) "Certified" means certified by the United States Environmental Protection Agency
42     or the California Air Resources Board to meet appropriate emission standards.
43          (3) "Cost" means the total reasonable cost of a project eligible for a grant under the
44     fund, including the cost of labor.
45          (4) "Director" means the director of the Division of Air Quality.
46          (5) "Division" means the Division of Air Quality, created in Subsection 19-1-105(1)(a).
47          (6) "Eligible equipment" means equipment with engines, including stationary
48     generators and pumps, operated and, if applicable, permitted in Utah.
49          (7) "Eligible vehicle" means a vehicle operated and, if applicable, registered in Utah
50     that is:
51          (a) a medium-duty or heavy-duty transit bus;
52          (b) a school bus as defined in Section 53-3-102;
53          (c) a medium-duty or heavy-duty truck with a gross vehicle weight rating of at least
54     16,001 GVWR;
55          (d) a locomotive; or
56          (e) another type of vehicle identified by the board in rule as being a significant
57     potential source of air pollution, as defined in Section 19-2-102.
58          (8) "Freight switcher" means a locomotive that is powered by an engine or combination
59     of engines with a maximum total rated power of 2,300 horsepower or less, based on a
60     calculation of total power that:
61          (a) includes auxiliary engines that are permanently installed on the locomotive and can
62     be operated while the main propulsion engine is operating; and
63          (b) does not include auxiliary engines that operate only to reduce idling time of the
64     propulsion engine.
65          [(8)] (9) "Verified" means verified by the United States Environmental Protection
66     Agency or the California Air Resources Board to reduce air emissions and meet durability
67     requirements.
68          Section 2. Section 19-2-203 is amended to read:
69          19-2-203. Grants and programs -- Conditions.
70          (1) The director may make grants for implementing:
71          (a) verified technologies for eligible vehicles or equipment; and
72          (b) certified vehicles, engines, or equipment.
73          (2) (a) Pursuant to Subsection (1), the director may make grants for the reduction of
74     freight switcher emissions.
75          (b) The division shall seek additional sources of funding when making grants for the
76     reduction of freight switcher emissions, including from the Diesel Emissions Reduction Act
77     program.
78          (c) Pursuant to Subsection (2)(b), if other funds are received, a grant made for the
79     reduction of freight switcher emissions shall be made using other funds first, up to the
80     maximum amount allowed by funding terms and conditions, and then may be supplemented by
81     appropriated funds pursuant to Subsection (6)(b).
82          [(2)] (3) (a) The division may develop programs, including exchange, rebate, or
83     low-cost purchase programs, to encourage replacement of:
84          (i) landscaping and maintenance equipment with equipment that is lower in emissions;
85     and
86          (ii) other equipment or products identified by the board in rule as being a significant
87     potential source of air pollution, as defined in Subsection 19-2-102(3).
88          (b) The division may enter into agreements with local health departments to administer
89     the programs described in Subsection [(2)] (3)(a).
90          [(3)] (4) As a condition for receiving the grant, a person receiving a grant under
91     [Subsection (1) or receiving a grant under this Subsection (3)] Subsection (1), (2), or this
92     Subsection (4), shall agree to:
93          (a) provide information to the division about the vehicles, equipment, or technology
94     acquired with the grant proceeds;
95          (b) allow inspections by the division to ensure compliance with the terms of the grant;
96          (c) permanently disable replaced vehicles, engines, and equipment from use; and
97          (d) comply with the conditions for the grant.
98          [(4)] (5) Grants and programs under Subsections (1) and [(2)] (3) may be administered
99     using a rebate program.
100          [(5) Grants] (6) (a) Subject to Subsection (6)(b), grants issued under this section may
101     not exceed the actual cost of the project.
102          (b) For grants issued under Subsection (2), appropriated funds may not exceed 35% of
103     the actual cost of the project.
104          Section 3. Section 19-2-204 is amended to read:
105          19-2-204. Duties and authorities -- Rulemaking.
106          (1) The board may, by following the procedures and requirements of Title 63G,
107     Chapter 3, Utah Administrative Rulemaking Act, make rules:
108          (a) specifying the amount of money to be dedicated annually for grants, for
109     appropriations that allow both grants and programs;
110          (b) specifying criteria the director shall consider in prioritizing and awarding grants,
111     including:
112          (i) a preference for awarding a grant to an individual who has already secured some
113     other source of funding; and
114          (ii) a limitation on the types of vehicles that are eligible for funds;
115          (c) specifying the terms of a grant or exchange under Subsections 19-2-203(2), (3),
116     [and] (4), and (5);
117          (d) specifying the procedures to be used in the grant and exchange programs authorized
118     in Subsections 19-2-203(2), (3), [and (5)] (4), and (6); and
119          (e) requiring all grant applicants to apply on forms provided by the division.
120          (2) The division shall:
121          (a) administer funds to encourage vehicle and equipment owners and operators to
122     reduce emissions from vehicles and equipment;
123          (b) provide forms for application for a grant or exchange under Subsection 19-2-203(2)
124     [or (3)], (3), or (4); and
125          (c) provide information about which vehicles, engines, or equipment are certified and
126     which technology is verified as provided in this part.
127          (3) The division may inspect vehicles, equipment, or technology for which a grant was
128     made to ensure compliance with the terms of the grant.
129          Section 4. Section 63J-1-602.1 (Superseded 09/30/18) is amended to read:
130          63J-1-602.1 (Superseded 09/30/18). List of nonlapsing accounts and funds --
131     General authority and Title 1 through Title 30.
132          (1) Appropriations made to the Legislature and its committees.
133          (2) The Utah Intracurricular Student Organization Support for Agricultural Education
134     and Leadership Restricted Account created in Section 4-42-102.
135          (3) The Percent-for-Art Program created in Section 9-6-404.
136          (4) The Native American Repatriation Restricted Account created in Section 9-9-407.
137          (5) The Martin Luther King, Jr. Civil Rights Support Restricted Account created in
138     Section 9-18-102.
139          (6) The National Professional Men's Soccer Team Support of Building Communities
140     Restricted Account created in Section 9-19-102.
141          (7) The LeRay McAllister Critical Land Conservation Program created in Section
142     11-38-301.
143          (8) An appropriation made to the Division of Air Quality for grants for the reduction of
144     freight switcher locomotive emissions under the Clean Air Retrofit, Replacement, and Off-road
145     Technology Program, as provided in Section 19-2-203.
146          [(8)] (9) The Support for State-Owned Shooting Ranges Restricted Account created in
147     Section 23-14-13.5.
148          [(9)] (10) An appropriation made to the Division of Wildlife Resources for the
149     appraisal and purchase of lands under the Pelican Management Act, as provided in Section
150     23-21a-6.
151          [(10)] (11) Award money under the State Asset Forfeiture Grant Program, as provided
152     under Section 24-4-117.
153          [(11)] (12) Funds collected from the program fund for local health department
154     expenses incurred in responding to a local health emergency under Section 26-1-38.
155          [(12)] (13) Funds collected from the emergency medical services grant program, as
156     provided in Section 26-8a-207.
157          [(13)] (14) The primary care grant program created in Section 26-10b-102.
158          [(14)] (15) The Prostate Cancer Support Restricted Account created in Section
159     26-21a-303.
160          [(15)] (16) The Children with Cancer Support Restricted Account created in Section
161     26-21a-304.
162          [(16)] (17) State funds appropriated for matching federal funds in the Children's Health
163     Insurance Program as provided in Section 26-40-108.
164          [(17)] (18) The Utah Health Care Workforce Financial Assistance Program created in
165     Section 26-46-102.
166          [(18)] (19) The Rural Physician Loan Repayment Program created in Section
167     26-46a-103.
168          [(19)] (20) The Opiate Overdose Outreach Pilot Program created in Section 26-55-107.
169          [(20)] (21) The Children with Heart Disease Support Restricted Account created in
170     Section 26-58-102.
171          Section 5. Section 63J-1-602.1 (Effective 09/30/18) is amended to read:
172          63J-1-602.1 (Effective 09/30/18). List of nonlapsing accounts and funds -- General
173     authority and Title 1 through Title 30.
174          (1) Appropriations made to the Legislature and its committees.
175          (2) The Utah Intracurricular Student Organization Support for Agricultural Education
176     and Leadership Restricted Account created in Section 4-42-102.
177          (3) The Percent-for-Art Program created in Section 9-6-404.
178          (4) The Native American Repatriation Restricted Account created in Section 9-9-407.
179          (5) The Martin Luther King, Jr. Civil Rights Support Restricted Account created in
180     Section 9-18-102.
181          (6) The National Professional Men's Soccer Team Support of Building Communities
182     Restricted Account created in Section 9-19-102.
183          (7) The LeRay McAllister Critical Land Conservation Program created in Section
184     11-38-301.
185          (8) An appropriation made to the Division of Air Quality for grants for the reduction of
186     freight switcher locomotive emissions under the Clean Air Retrofit, Replacement, and Off-road
187     Technology Program, as provided in Section 19-2-203.
188          [(8)] (9) The Support for State-Owned Shooting Ranges Restricted Account created in
189     Section 23-14-13.5.
190          [(9)] (10) An appropriation made to the Division of Wildlife Resources for the
191     appraisal and purchase of lands under the Pelican Management Act, as provided in Section
192     23-21a-6.
193          [(10)] (11) Award money under the State Asset Forfeiture Grant Program, as provided
194     under Section 24-4-117.
195          [(11)] (12) Funds collected from the program fund for local health department
196     expenses incurred in responding to a local health emergency under Section 26-1-38.
197          [(12)] (13) Funds collected from the emergency medical services grant program, as
198     provided in Section 26-8a-207.
199          [(13)] (14) The primary care grant program created in Section 26-10b-102.
200          [(14)] (15) The Children with Cancer Support Restricted Account created in Section
201     26-21a-304.
202          [(15)] (16) State funds appropriated for matching federal funds in the Children's Health
203     Insurance Program as provided in Section 26-40-108.
204          [(16)] (17) The Utah Health Care Workforce Financial Assistance Program created in
205     Section 26-46-102.
206          [(17)] (18) The Rural Physician Loan Repayment Program created in Section
207     26-46a-103.
208          [(18)] (19) The Opiate Overdose Outreach Pilot Program created in Section 26-55-107.
209          [(19)] (20) The Children with Heart Disease Support Restricted Account created in
210     Section 26-58-102.
211          Section 6. Appropriation.
212          The following sums of money are appropriated for the fiscal year beginning July 1,
213     2018, and ending June 30, 2019. These are additions to amounts previously appropriated for
214     fiscal year 2019. Under the terms and conditions of Title 63J, Chapter 1, Budgetary Procedures
215     Act, the Legislature appropriates the following sums of money from the funds or accounts
216     indicated for the use and support of the government of the state of Utah.
217          To Department of Environmental Quality - Clean Air Retrofit, Replacement,
218           and Off- road Technology
219               From General Fund, One-time
$2,000,000

220               Schedule of Programs:
221                    Clean Air Retrofit, Replacement, and     $2,000,000
222                    Off-road Technology
223          The Legislature intends that:
224          (1) the Division of Air Quality use appropriations under this section to issue grants for
225     the reduction of freight switcher locomotive emissions pursuant to Section 19-2-203;
226          (2) the Division of Air Quality expend appropriations under this section in fiscal years
227     2019, 2020, and 2021;
228          (3) under Section 63J-1-603, appropriations provided under this section not lapse at the
229     close of fiscal year 2019; and
230          (4) the use of any nonlapsing funds is limited to issuing grants for the reduction of
231     freight switcher locomotive emissions pursuant to Section 19-2-203.
232          Section 7. Effective date.
233          This bill takes effect on May 8, 2018, except that the amendments to Section
234     63J-1-602.1 (Effective 09/30/18) take effect on September 30, 2018.




Legislative Review Note
Office of Legislative Research and General Counsel