This document includes House Committee Amendments incorporated into the bill on Tue, Feb 26, 2019 at 7:53 AM by pflowers.
Representative Jeffrey D. Stenquist proposes the following substitute bill:


1     
VEHICLE EMISSIONS REDUCTION PROGRAM

2     
2019 GENERAL SESSION

3     
STATE OF UTAH

4     
Chief Sponsor: Jeffrey D. Stenquist

5     
Senate Sponsor: Curtis S. Bramble

6     

7     LONG TITLE
8     General Description:
9          This bill enacts the Vehicle Emissions Reduction Program as part of the Air
10     Conservation Act.
11     Highlighted Provisions:
12          This bill:
13          ▸     defines terms;
14          ▸     creates the Vehicle Emissions Reduction Program Restricted Account;
15          ▸     creates the Vehicle Emissions Reduction Program (program) to provide financial
16     assistance in the purchase of a motor vehicle under certain conditions;
17          ▸     establishes certain criteria by which a person may participate in the program;
18          ▸     requires certain local health departments to assist in administering the program;
19          ▸     requires the Air Quality Board to make rules for the administration of the program;
20          ▸     requires the Division of Air Quality under certain circumstances to conduct:
21               •     a public service campaign; and
22               •     a study, submitting the results of the study to the Transportation Interim
23     Committee; and
24          ▸     creates a repeal date requiring committee review of the program.
25     Money Appropriated in this Bill:

26          None
27     Other Special Clauses:
28          None
29     Utah Code Sections Affected:
30     AMENDS:
31          63I-1-219, as last amended by Laws of Utah 2018, Chapter 31
32          63I-1-226, as last amended by Laws of Utah 2018, Third Special Session, Chapter 1
33     ENACTS:
34          19-2-401, Utah Code Annotated 1953
35          19-2-402, Utah Code Annotated 1953
36          19-2-403, Utah Code Annotated 1953
37          19-2-404, Utah Code Annotated 1953
38          19-2-405, Utah Code Annotated 1953
39          19-2-406, Utah Code Annotated 1953
40          19-2-407, Utah Code Annotated 1953
41          19-2-408, Utah Code Annotated 1953
42          19-2-409, Utah Code Annotated 1953
43          26A-1-129, Utah Code Annotated 1953
44     

45     Be it enacted by the Legislature of the state of Utah:
46          Section 1. Section 19-2-401 is enacted to read:
47     
Part 4. Vehicle Emissions Reduction Program

48          19-2-401. Title.
49          This part is known as "Vehicle Emissions Reduction Program."
50          Section 2. Section 19-2-402 is enacted to read:
51          19-2-402. Definitions.
52          As used in this chapter:
53          (1) "Eligible replacement vehicle" means a motor vehicle as defined in Section
54     41-1a-102 that:
55          (a) emits emissions that are equal to or cleaner than the standards established in bin 5
56     in Table S04-1, of 40 C.F.R. 86.1811-04(c)(6);

57          (b) is of the current or previous five model years;
58          (c) has an odometer reading equal to or less than 70,000 miles; and
59          (d) costs no more than $35,000 before tax, title, and licensing.
60          (2) "Eligible trade-in vehicle" means a motor vehicle as defined in Section 41-1a-102
61     that:
62          (a) is of the model year 2003 or older;
63          (b) failed the emissions inspection required under Section 41-6a-1642 within the
64     previous 30 days;
65          (c) (i) is registered or regularly operates in a county:
66          (A) located in a nonattainment area; or
67          (B) required to have a motor vehicle emissions inspection and maintenance program
68     under Section 41-6a-1642; or
69          (ii) was reported to the department as emitting excessive amounts of smoky exhaust
70     while being driven through a county:
71          (A) located in a nonattainment area; or
72          (B) required to have a motor vehicle emissions inspection and maintenance program
73     under Section 41-6a-1642;
74          (d) is registered in the motor vehicle owner's name;
75          (e) has been registered in the state for at least the previous 12 months; and
76          (f) is drivable under the motor vehicle's own power.
77          (3) "Federal poverty level" means the poverty level as defined by the most recently
78     revised poverty income guidelines published by the United States Department of Health and
79     Human Services in the Federal Register.
80          (4) "Local health department" means the same as that term is defined in Section
81     26A-1-102.
82          (5) "Nonattainment area" means a part of the state where air quality is determined to
83     exceed the National Ambient Air Quality Standards, as defined in the Clean Air Act
84     Amendments of 1970, Pub. L. No. 91-604, Sec. 109, for fine particulate matter (PM 2.5).
85          (6) "Participating dealer" means a dealer as defined in Section 41-3-102 that signs a
86     written agreement described in Section 19-2-405 with a local health department to participate
87     in the program.

88          (7) "Participating recycler" means a person who:
89          (a) (i) is a crusher as defined in Section 41-3-102; or
90          (ii) is a dismantler as defined in Section 41-3-102; and
91          (b) signs a written agreement described in Section 19-2-406 with a local health
92     department to participate in the program.
93          (8) "Qualified vehicle owner" means an individual who:
94          (a) has a household income equal to or less than 300% of the federal poverty level; and
95          (b) owns an eligible trade-in vehicle.
96          (9) "Vehicle Emissions Reduction Program" or "program" means the program
97     established in Subsection 19-2-404(1).
98          Section 3. Section 19-2-403 is enacted to read:
99          19-2-403. Creation of restricted account -- Assistance.
100          (1) There is created within the General Fund a restricted account known as the Vehicle
101     Emissions Reduction Program Restricted Account.
102          (2) The restricted account consists of:
103          (a) any voluntary monetary contributions received;
104          (b) proceeds from the sale of eligible trade-in vehicles to participating recyclers made
105     in connection with the Vehicle Emissions Reduction Program;
106          (c) appropriations the Legislature makes to the restricted account; and
107          (d) interest accrued in accordance with Subsection (3)(b).
108          (3) The state treasurer shall:
109          (a) invest the money in the restricted account by following the procedures and
110     requirements of Title 51, Chapter 7, State Money Management Act; and
111          (b) deposit all interest or other earnings derived from the investments described in
112     Subsection (3)(a) into the restricted account.
113          (4) (a) Subject to legislative appropriations, the division shall provide financial
114     assistance from the Vehicle Emissions Reduction Program Restricted Account:
115          (i) to qualified vehicle owners who purchase eligible replacement vehicles in
116     accordance with this chapter;
117          (ii) in a total amount of up to $6,500,000; and
118          (iii) as described in Section 19-2-407, in amounts that increase on a sliding scale based

119     on:
120          (A) the household income of the qualified vehicle owner; and
121          (B) the emissions performance of the purchased eligible replacement vehicle.
122          (b) The division may use money in the Vehicle Emissions Reduction Program
123     Restricted Account to:
124          (i) administer the program in accordance with this chapter; or
125          (ii) assist a local health department to carry out the provisions of this chapter.
126          (5) The division shall deposit all money the division receives from the sale of eligible
127     trade-in vehicles to participating recyclers in connection with this program into the restricted
128     account.
129          Section 4. Section 19-2-404 is enacted to read:
130          19-2-404. Program creation -- requirements.
131          (1) There is created the Vehicle Emissions Reduction Program to provide financial
132     assistance to qualified vehicle owners in purchasing eligible replacement vehicles.
133          (2) To receive financial assistance under the program, a qualified vehicle owner shall:
134          (a) in accordance with rules made under this chapter, apply for and obtain from a local
135     health department certification described in Section 26A-1-129, which states the level of
136     assistance the qualified vehicle owner is eligible to receive;
137          (b) deliver to a participating dealer:
138          (i) the qualified vehicle owner's eligible trade-in vehicle, including title to the vehicle;
139     and
140          (ii) the certification described in Subsection (2)(a); and
141          (c) purchase an eligible replacement vehicle from the participating dealer described in
142     Subsection (2)(b).
143          Section 5. Section 19-2-405 is enacted to read:
144          19-2-405. Participating dealers -- Reimbursement.
145          (1) To participate in the Vehicle Emissions Reduction Program, a dealer as defined in
146     Section 41-2-102 shall sign an agreement with a local health department that requires the
147     dealer:
148          (a) to surrender to a participating recycler all eligible trade-in vehicles the dealer
149     receives in connection with this program in accordance with rules established under this

150     chapter; and
151          (b) to follow rules established in accordance with this chapter in order to receive
152     reimbursement under this chapter.
153          (2) When a qualifying vehicle owner purchases an eligible replacement vehicle
154     following the requirements described in Subsection 19-2-404(2), the participating dealer shall:
155          (a) credit the qualifying vehicle owner's purchase with the amount of financial
156     assistance the qualifying vehicle owner's certification, as described in Section 19-2-404,
157     specifies;
158          (b) recycle the eligible trade-in vehicle in accordance with the agreement described in
159     Subsection (1); and
160          (c) provide the local health department that issued the certification described in Section
161     19-2-404:
162          (i) a copy of the contract of sale;
163          (ii) a copy of the used certification;
164          (iii) a picture of the purchased vehicle's emission information sticker;
165          (iv) a receipt showing that a participating recycler received the eligible trade-in vehicle
166     and the vehicle's title; and
167          (v) a request for reimbursement.
168          Section 6. Section 19-2-406 is enacted to read:
169          19-2-406. Participating recyclers.
170          To participate in the Vehicle Emissions Reduction Program, a dismantler or crusher as
171     those terms are defined in Section 41-3-102 shall sign an agreement with a local health
172     department that requires the dismantler or crusher to:
173          (1) for each motor vehicle the dismantler or crusher receives in connection with the
174     program:
175          (a) (i) crush the entire motor vehicle for scraps; or
176          (ii) destroy the engine and emissions system, including catalytic converter; and
177          (b) sell:
178          (i) nonengine parts; and
179          (ii) from the engine and emissions system, scrap metal only;
180          (2) on a monthly basis, send the local health department:

181          (a) a list of all vehicles the dismantler Ĥ→ or crusher ←Ĥ received in connection with the
181a     program; and
182          (b) Ĥ→ [
proceeds from sales described in Subsection (1)(b)] money the dismantler or
182a     crusher owes for all vehicles surrendered to the dismantler or crusher as described in
182b     Subsection 19-2-405(1)(a) ←Ĥ ; and
183          (3) comply with rules established under this chapter.
184          Section 7. Section 19-2-407 is enacted to read:
185          19-2-407. Rulemaking.
186          (1) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
187     board shall make rules that:
188          (a) carry out the provisions of this chapter;
189          (b) establish a certification and reimbursement process in accordance with this chapter;
190          (c) ensure that an individual who receives financial assistance under both this program
191     and any similar program that relies on federal funding does not receive a total amount more
192     than the individual is qualified to receive under either program alone;
193          (d) ensure that an eligible trade-in vehicle surrendered under this program is converted
194     to scrap or otherwise disposed of;
195          (e) ensure that no engine part or emissions control system from an eligible trade-in
196     vehicle surrendered under this program is resold, except as scrap metal; and
197          (f) establish a sliding scale for financial assistance provided under this chapter that:
198          (i) provides up to $5,500 in financial assistance to a qualified vehicle owner that
199     purchases an eligible replacement vehicle in connection with the program; and
200          (ii) is based on:
201          (A) the household income of the qualified vehicle owner; and
202          (B) the emissions performance of the purchased eligible replacement vehicle.
203          (2) In making the rules described in Subsection (1), the board shall:
204          (a) consider recommendations from the division; and
205          (b) coordinate with the relevant local health departments, where applicable.
206          Section 8. Section 19-2-408 is enacted to read:
207          19-2-408. Public service campaign.
208          (1) Subject to legislative appropriations, the division shall conduct a public service
209     campaign to educate the public about:
210          (a) smog ratings of motor vehicles;
211          (b) the benefits to the state of lowering motor vehicle emissions;

212          (c) financial assistance available through the program; and
213          (d) any other program the division administers that is aimed at reducing air pollution or
214     improving air quality in nonattainment areas.
215          (2) The division may issue a request for proposal to assist the division in fulfilling the
216     requirements described in Subsection (1).
217          Section 9. Section 19-2-409 is enacted to read:
218          19-2-409. High-polluting motor vehicles study.
219          (1) Subject to legislative appropriations, the division shall conduct a study to
220     determine:
221          (a) the types of people in the state who own higher-polluting motor vehicles in the
222     state;
223          (b) incentives for people in the state owning higher-polluting motor vehicles to
224     transition to lower-polluting motor vehicles;
225          (c) why residents in the state tend to keep motor vehicles for longer periods of time
226     than residents in other states; and
227          (d) for what purposes residents of the state use older vehicles.
228          (2) The division may issue a request for proposal to assist the division in conducting,
229     or to conduct, the study described in Subsection (1).
230          (3) If conducted, the division shall submit the results of the study described in
231     Subsection (1) to the Transportation Interim Committee before May 30, 2022.
232          Section 10. Section 26A-1-129 is enacted to read:
233          26A-1-129. Vehicle Emissions Reduction Program certification.
234          (1) As used in this section:
235          (a) "Eligible replacement vehicle" means the same as that term is defined in Section
236     19-2-402.
237          (b) "Nonattainment area" means the same as that term is defined in Section 19-2-402.
238          (c) "Participating dealer" means the same as that term is defined in Section 19-2-402.
239          (d) "Qualified vehicle owner" means the same as that term is defined in Section
240     19-2-402.
241          (e) "Vehicle Emissions Reduction Program" or "program" means the program
242     established in Subsection 19-2-404(1).

243          (2) A local health department shall participate as described in this section in the
244     Vehicle Emissions Reduction Program, if the local health department is located in a county that
245     is required to have a motor vehicle emissions inspection and maintenance program under
246     Section 41-6a-1642.
247          (3) In accordance with rules made under Section 19-2-407, a local health department
248     described in Subsection (2) shall accept an application to receive certification for financial
249     assistance under the program.
250          (4) After receiving an application for certification as described in Subsection (3), a
251     local health department shall:
252          (a) determine whether the applicant is a qualified vehicle owner; and
253          (b) if the applicant is a qualified vehicle owner:
254          (i) determine the amount of assistance the qualified vehicle owner is eligible to receive
255     in accordance with the sliding scale established under Section 19-2-407;
256          (ii) issue the qualified vehicle owner a certification stating:
257          (A) the amount described in Subsection (4)(b)(i); and
258          (B) any other information the Air Quality Board requires on the certification; and
259          (iii) require the qualified vehicle owner to complete a survey designed to:
260          (A) determine the qualified vehicle owner's motivation for participating in the
261     program; and
262          (B) assess how much the financial assistance under the program weighed into the
263     qualified vehicle owner's decision to purchase an eligible replacement vehicle.
264          (5) Each local health department shall submit surveys completed under Subsection
265     (4)(b)(iii) to the Division of Air Quality on a quarterly basis.
266          (6) A local health department shall enter into agreements described in Sections
267     19-2-405 and 19-2-406 in accordance with rules the Air Quality Board makes as described in
268     Section 19-3-407.
269          (7) A local health department that receives a participating dealer's request for
270     reimbursement in accordance with Section 19-2-405 shall reimburse the participating dealer for
271     the amount the participating dealer credited the qualifying vehicle owner.
272          (8) On a quarterly basis, each local health department shall submit to the Division of
273     Air Quality:

274          (a) a request for reimbursement that reflects the amount participating recyclers
275     submitted to the local health department under Subsection 19-2-406(2)(b) deducted from the
276     amount the local health department reimbursed participating dealers in accordance with
277     Subsection (7); and
278          (b) all documents and information submitted to the local health department under
279     Subsections 19-2-405(2)(c) and 19-2-406(2).
280          Section 11. Section 63I-1-219 is amended to read:
281          63I-1-219. Repeal dates, Title 19.
282          (1) Title 19, Chapter 2, Air Conservation Act, is repealed July 1, 2019.
283          (2) Title 19, Chapter 2, Part 4, Vehicle Emissions Reduction Program, is repealed July
284     1, 2024.
285          [(2)] (3) Title 19, Chapter 4, Safe Drinking Water Act, is repealed July 1, 2019.
286          [(3)] (4) Title 19, Chapter 5, Water Quality Act, is repealed July 1, 2019.
287          [(4)] (5) Title 19, Chapter 6, Part 1, Solid and Hazardous Waste Act, is repealed July 1,
288     2019.
289          [(5)] (6) Title 19, Chapter 6, Part 3, Hazardous Substances Mitigation Act, is repealed
290     July 1, 2020.
291          [(6)] (7) Title 19, Chapter 6, Part 4, Underground Storage Tank Act, is repealed July 1,
292     2028.
293          [(7)] (8) Title 19, Chapter 6, Part 6, Lead Acid Battery Disposal, is repealed July 1,
294     2026.
295          [(8)] (9) Title 19, Chapter 6, Part 7, Used Oil Management Act, is repealed July 1,
296     2019.
297          [(9)] (10) Title 19, Chapter 6, Part 8, Waste Tire Recycling Act, is repealed July 1,
298     2020.
299          [(10)] (11) Title 19, Chapter 6, Part 10, Mercury Switch Removal Act, is repealed July
300     1, 2027.
301          Section 12. Section 63I-1-226 is amended to read:
302          63I-1-226. Repeal dates, Titles 26 and 26A.
303          (1) Section 26-1-40 is repealed July 1, 2019.
304          (2) Title 26, Chapter 9f, Utah Digital Health Service Commission Act, is repealed July

305     1, 2025.
306          (3) Section 26-10-11 is repealed July 1, 2020.
307          (4) Subsection 26-18-417(3) is repealed July 1, 2020.
308          (5) Title 26, Chapter 33a, Utah Health Data Authority Act, is repealed July 1, 2024.
309          (6) Title 26, Chapter 36b, Inpatient Hospital Assessment Act, is repealed July 1, 2024.
310          (7) Title 26, Chapter 36c, Medicaid Expansion Hospital Assessment Act, is repealed
311     July 1, 2024.
312          (8) Title 26, Chapter 36d, Hospital Provider Assessment Act, is repealed July 1, 2019.
313          (9) Title 26, Chapter 56, Hemp Extract Registration Act, is repealed January 1, 2019.
314          (10) Title 26, Chapter 63, Nurse Home Visiting Pay-for-Success Program, is repealed
315     July 1, 2026.
316          (11) Section 26A-1-129 is repealed July 1, 2024.