1     
CONCURRENT RESOLUTION ENCOURAGING UTAH

2     
REFINERS TO MANUFACTURE TIER 3 GASOLINE TO

3     
IMPROVE AIR QUALITY

4     
2019 GENERAL SESSION

5     
STATE OF UTAH

6     
Chief Sponsor: Patrice M. Arent

7     
Senate Sponsor: Todd Weiler

8     Cosponsors:
9     Cheryl K. Acton
10     Carl R. Albrecht
11     Kyle R. Andersen
12     Melissa G. Ballard
13     Stewart E. Barlow
14     Joel K. Briscoe
15     Walt Brooks
16     Kay J. Christofferson
17     Jennifer Dailey-Provost
18     Brad M. Daw
19     Susan Duckworth
20     James A. Dunnigan
21     Steve Eliason
22     Joel Ferry
23     Craig Hall
24     Stephen G. Handy
25     Suzanne Harrison
26     Timothy D. Hawkes
Sandra Hollins
Eric K. Hutchings
Dan N. Johnson
Marsha Judkins
Brian S. King
John Knotwell
Karen Kwan
Karianne Lisonbee
A. Cory Maloy
Kelly B. Miles
Carol Spackman Moss
Jefferson Moss
Calvin R. Musselman
Merrill F. Nelson
Lee B. Perry
Val K. Potter
Marie H. Poulson
Susan Pulsipher
Tim Quinn
Paul Ray
Adam Robertson
Angela Romero
Douglas V. Sagers
Mike Schultz
Rex P. Shipp
Lawanna Shurtliff
V. Lowry Snow
Robert M. Spendlove
Jeffrey D. Stenquist
Andrew Stoddard
Norman K. Thurston
Steve Waldrip
Raymond P. Ward
Elizabeth Weight
Mark A. Wheatley
Logan Wilde
Mike Winder

27     

28     LONG TITLE

29     General Description:
30          This concurrent resolution of the Legislature and the Governor urges refineries
31     operating within Utah to utilize the state sales and use tax exemption provided by the
32     state to make the investments necessary to manufacture lower-sulfur Tier 3 gasoline in
33     Utah.
34     Highlighted Provisions:
35          This resolution:
36          ▸     recognizes how vehicle emissions impact Utah's air quality;
37          ▸     recognizes that the lower-sulfur gasoline in the Environmental Protection Agency's
38     Tier 3 Gasoline Standards are crucial to improving Utah's air quality; and
39          ▸     recognizes that three out of the five Utah refineries have committed to
40     manufacturing Tier 3 compliant lower-sulfur gasoline for sale in Utah.
41     Special Clauses:
42          None
43     

44     Be it resolved by the Legislature of the state of Utah, the Governor concurring therein:
45          WHEREAS, the Legislature of the state of Utah is charged with protecting and
46     enhancing the safety, health, and welfare of its citizens;
47          WHEREAS, the safety, health, and welfare of many of the citizens of the state of Utah
48     are profoundly affected by its air quality;
49          WHEREAS, communities along the Wasatch Front and other areas in the state of Utah
50     experience episodic and sustained periods of time where air pollutants are elevated to levels
51     that are known to cause serious short and long-term health problems in humans;
52          WHEREAS, there are indications that air quality may impact the ability to recruit and
53     retain businesses and a high quality labor force, as well as the cost of negative health impacts
54     and the loss of tourism and recreational revenue, air quality significantly impacts the economy
55     of the state of Utah;
56          WHEREAS, vehicle emissions are the largest contributing source of total emissions

57     and contribute significantly to the buildup of air pollutants during wintertime inversions;
58          WHEREAS, there have been measurable improvements in air quality because of
59     sustained efforts made by individuals and industry throughout the state;
60          WHEREAS, the United States Environmental Protection Agency has adopted national
61     standards for improved vehicle emissions and gasoline, called Tier 3 standards, bringing down
62     the sulfur content of gasoline from 30 parts per million to 10 parts per million;
63          WHEREAS, burning lower-sulfur Tier 3 gasoline in vehicles greatly improves the
64     effectiveness of a vehicle's catalytic converter;
65          WHEREAS, burning lower-sulfur Tier 3 gasoline will significantly reduce vehicle
66     emissions of nitrogen oxides (NOx) and volatile organic compounds (VOC) -- pollutants that
67     are significant contributors to poor air quality in the state of Utah;
68          WHEREAS, combining Tier 3 lower-sulfur gasoline standards with Tier 3 emissions
69     standards for new vehicles will reduce VOC and NOx emissions per vehicle-mile traveled by
70     as much as 80% compared to previous Tier 2 standards, and result in significant reductions in
71     ozone and secondary PM 2.5 -- pollutants of great concern in the state of Utah;
72          WHEREAS, use of lower-sulfur Tier 3 gasoline in Utah's current pre-Tier 3 vehicle
73     fleet will result in immediate tailpipe emissions reductions of approximately 9.5% in NOx and
74     3.7% in VOC;
75          WHEREAS, current federal provisions allow certain refineries to meet the standard by
76     utilizing national averaging, trading, and banking, which applies to the five refineries located in
77     Utah;
78          WHEREAS, in 2017, the Legislature of the state of Utah passed a state sales and use
79     tax exemption to encourage and entice local refineries to manufacture and sell lower-sulfur
80     gasoline in the state, rather than utilizing averaging, trading, and banking to meet the standard;
81          WHEREAS, a refiner that seeks to be eligible for a sales and use tax exemption under
82     Utah Code, Subsection 59-12-104(86), beginning on July 1, 2021, shall annually report to the
83     Office of Energy Development whether the refiner's facility that is located within the state will
84     have an average gasoline sulfur level of 10 parts per million or less, using formulas prescribed

85     in 40 C.F.R. Sec. 80.1603, excluding the offset for credit use and transfer as prescribed in 40
86     C.F.R. Sec. 80.1616; and
87          WHEREAS, three of Utah's local refineries, including Marathon Petroleum, Chevron,
88     and Silver Eagle, have committed to manufacturing gasoline for sale with an average sulfur
89     level of 10 parts per million or less by the end of 2019:
90          NOW, THEREFORE, BE IT RESOLVED that the Legislature of the state of Utah, the
91     Governor concurring therein, urges refiners operating a refinery within Utah to use the tax
92     incentives provided by the state to make the investments necessary to manufacture lower-sulfur
93     Tier 3 gasoline at its Utah refinery.
94          BE IT FURTHER RESOLVED that the Legislature and the Governor urge local
95     refiners to manufacture and sell gasoline with an average sulfur content of 10 parts per million
96     or less, rather than using national averaging, trading, and banking provisions to meet the
97     standard.