1     
FREIGHT SWITCHER EMISSIONS MITIGATION

2     
2019 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 2020:
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          None
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          63I-1-263, as last amended by Laws of Utah 2018, Chapters 85, 144, 182, 261, 321,
32     338, 340, 347, 369, 428, 430, and 469
33          63J-1-602.1, as last amended by Laws of Utah 2018, Chapters 114, 347, 430 and
34     repealed and reenacted by Laws of Utah 2018, Chapter 469
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 sources of funding in addition to appropriations when
76     making grants for the reduction of freight switcher emissions, including from the Diesel
77     Emissions Reduction Act program.
78          (c) Pursuant to Subsection (2)(b), if other money is received, a grant made for the
79     reduction of freight switcher emissions shall be made using the money 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 money 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] a grant [applicants] applicant to apply on [forms] a form provided by
120     the division.
121          (2) The division shall:
122          (a) administer funds to encourage vehicle and equipment owners and operators to
123     reduce emissions from vehicles and equipment;
124          (b) provide forms for application for a grant or exchange under Subsection 19-2-203(2)
125     [or (3)], (3), or (4); and
126          (c) provide information about which vehicles, engines, or equipment are certified and
127     which technology is verified as provided in this part.
128          (3) The division may inspect vehicles, equipment, or technology for which a grant was
129     made to ensure compliance with the terms of the grant.
130          Section 4. Section 63I-1-263 is amended to read:
131          63I-1-263. Repeal dates, Titles 63A to 63N.
132          (1) Subsection 63A-5-104(4)(h) is repealed on July 1, 2024.
133          (2) Section 63A-5-603, State Facility Energy Efficiency Fund, is repealed July 1, 2023.
134          (3) Title 63C, Chapter 4a, Constitutional and Federalism Defense Act, is repealed July
135     1, 2028.
136          (4) Title 63C, Chapter 4b, Commission for the Stewardship of Public Lands, is
137     repealed November 30, 2019.
138          (5) Title 63C, Chapter 16, Prison Development Commission Act, is repealed July 1,
139     2020.
140          (6) Title 63C, Chapter 17, Point of the Mountain Development Commission Act, is
141     repealed July 1, 2021.
142          (7) Title 63C, Chapter 18, Mental Health Crisis Line Commission, is repealed July 1,
143     2023.
144          (8) Title 63G, Chapter 21, Agreements to Provide State Services, is repealed July 1,
145     2025.
146          (9) Title 63H, Chapter 4, Heber Valley Historic Railroad Authority, is repealed July 1,
147     2020.
148          (10) Title 63H, Chapter 8, Utah Housing Corporation Act, is repealed July 1, 2026.
149          (11) On July 1, 2025:
150          (a) in Subsection 17-27a-404(3)(c)(ii), the language that states "the Resource
151     Development Coordinating Committee," is repealed;
152          (b) Subsection 23-14-21(2)(c) is amended to read "(c) provide notification of proposed
153     sites for the transplant of species to local government officials having jurisdiction over areas
154     that may be affected by a transplant.";
155          (c) in Subsection 23-14-21(3), the language that states "and the Resource Development
156     Coordinating Committee" is repealed;
157          (d) in Subsection 23-21-2.3(1), the language that states "the Resource Development
158     Coordinating Committee created in Section 63J-4-501 and" is repealed;
159          (e) in Subsection 23-21-2.3(2), the language that states "the Resource Development
160     Coordinating Committee and" is repealed;
161          (f) Subsection 63J-4-102(1) is repealed and the remaining subsections are renumbered
162     accordingly;
163          (g) Subsections 63J-4-401(5)(a) and (c) are repealed;
164          (h) Subsection 63J-4-401(5)(b) is renumbered to Subsection 63J-4-401(5)(a) and the
165     word "and" is inserted immediately after the semicolon;
166          (i) Subsection 63J-4-401(5)(d) is renumbered to Subsection 63J-4-401(5)(b);
167          (j) Sections 63J-4-501, 63J-4-502, 63J-4-503, 63J-4-504, and 63J-4-505 are repealed;
168     and
169          (k) Subsection 63J-4-603(1)(e)(iv) is repealed and the remaining subsections are
170     renumbered accordingly.
171          (12) Subsection 63J-1-602.1[(13)](14), Nurse Home Visiting Restricted Account is
172     repealed July 1, 2026.
173          (13) Subsection 63J-1-602.2(4), referring to dedicated credits to the Utah Marriage
174     Commission, is repealed July 1, 2023.
175          (14) (a) Subsection 63J-1-602.1[(51)](52), relating to the Utah Statewide Radio System
176     Restricted Account, is repealed July 1, 2022.
177          (b) When repealing Subsection 63J-1-602.1[(51)](52), the Office of Legislative
178     Research and General Counsel shall, in addition to the office's authority under Subsection
179     36-12-12(3), make necessary changes to subsection numbering and cross references.
180          (15) The Crime Victim Reparations and Assistance Board, created in Section
181     63M-7-504, is repealed July 1, 2027.
182          (16) Title 63M, Chapter 11, Utah Commission on Aging, is repealed July 1, 2027.
183          (17) Title 63N, Chapter 2, Part 2, Enterprise Zone Act, is repealed July 1, 2028.
184          (18) (a) Title 63N, Chapter 2, Part 4, Recycling Market Development Zone Act, is
185     repealed January 1, 2021.
186          (b) Subject to Subsection (18)(c), Sections 59-7-610 and 59-10-1007 regarding tax
187     credits for certain persons in recycling market development zones, are repealed for taxable
188     years beginning on or after January 1, 2021.
189          (c) A person may not claim a tax credit under Section 59-7-610 or 59-10-1007:
190          (i) for the purchase price of machinery or equipment described in Section 59-7-610 or
191     59-10-1007, if the machinery or equipment is purchased on or after January 1, 2021; or
192          (ii) for an expenditure described in Subsection 59-7-610(1)(b) or 59-10-1007(1)(b), if
193     the expenditure is made on or after January 1, 2021.
194          (d) Notwithstanding Subsections (18)(b) and (c), a person may carry forward a tax
195     credit in accordance with Section 59-7-610 or 59-10-1007 if:
196          (i) the person is entitled to a tax credit under Section 59-7-610 or 59-10-1007; and
197          (ii) (A) for the purchase price of machinery or equipment described in Section
198     59-7-610 or 59-10-1007, the machinery or equipment is purchased on or before December 31,
199     2020; or
200          (B) for an expenditure described in Subsection 59-7-610(1)(b) or 59-10-1007(1)(b), the
201     expenditure is made on or before December 31, 2020.
202          (19) Section 63N-2-512 is repealed on July 1, 2021.
203          (20) (a) Title 63N, Chapter 2, Part 6, Utah Small Business Jobs Act, is repealed
204     January 1, 2021.
205          (b) Section 59-9-107 regarding tax credits against premium taxes is repealed for
206     calendar years beginning on or after January 1, 2021.
207          (c) Notwithstanding Subsection (20)(b), an entity may carry forward a tax credit in
208     accordance with Section 59-9-107 if:
209          (i) the person is entitled to a tax credit under Section 59-9-107 on or before December
210     31, 2020; and
211          (ii) the qualified equity investment that is the basis of the tax credit is certified under
212     Section 63N-2-603 on or before December 31, 2023.
213          (21) Subsections 63N-3-109(2)(f) and 63N-3-109(2)(g)(i)(C) are repealed July 1, 2023.
214          (22) Title 63N, Chapter 4, Part 4, Rural Employment Expansion Program, is repealed
215     July 1, 2023.
216          (23) Title 63N, Chapter 9, Part 2, Outdoor Recreational Infrastructure Grant Program,
217     is repealed January 1, 2023.
218          (24) Title 63N, Chapter 12, Part 4, Career and Technical Education Board, is repealed
219     July 1, 2018.
220          Section 5. Section 63J-1-602.1 is amended to read:
221          63J-1-602.1. List of nonlapsing appropriations from accounts and funds.
222          Appropriations made from the following accounts or funds are nonlapsing:
223          (1) The Utah Intracurricular Student Organization Support for Agricultural Education
224     and Leadership Restricted Account created in Section 4-42-102.
225          (2) The Native American Repatriation Restricted Account created in Section 9-9-407.
226          (3) The Martin Luther King, Jr. Civil Rights Support Restricted Account created in
227     Section 9-18-102.
228          (4) The National Professional Men's Soccer Team Support of Building Communities
229     Restricted Account created in Section 9-19-102.
230          (5) Funds collected for directing and administering the C-PACE district created in
231     Section 11-42a-302.
232          (6) An appropriation made to the Division of Air Quality for grants for the reduction of
233     freight switcher locomotive emissions under the Clean Air Retrofit, Replacement, and Off-road
234     Technology Program, as provided in Section 19-2-203.
235          [(6)] (7) Award money under the State Asset Forfeiture Grant Program, as provided
236     under Section 24-4-117.
237          [(7)] (8) Funds collected from the program fund for local health department expenses
238     incurred in responding to a local health emergency under Section 26-1-38.
239          [(8)] (9) Funds collected from the emergency medical services grant program, as
240     provided in Section 26-8a-207.
241          [(9)] (10) The Prostate Cancer Support Restricted Account created in Section
242     26-21a-303.
243          [(10)] (11) The Children with Cancer Support Restricted Account created in Section
244     26-21a-304.
245          [(11)] (12) State funds for matching federal funds in the Children's Health Insurance
246     Program as provided in Section 26-40-108.
247          [(12)] (13) The Children with Heart Disease Support Restricted Account created in
248     Section 26-58-102.
249          [(13)] (14) The Nurse Home Visiting Restricted Account created in Section 26-62-601.
250          [(14)] (15) The Technology Development Restricted Account created in Section
251     31A-3-104.
252          [(15)] (16) The Criminal Background Check Restricted Account created in Section
253     31A-3-105.
254          [(16)] (17) The Captive Insurance Restricted Account created in Section 31A-3-304,
255     except to the extent that Section 31A-3-304 makes the money received under that section free
256     revenue.
257          [(17)] (18) The Title Licensee Enforcement Restricted Account created in Section
258     31A-23a-415.
259          [(18)] (19) The Health Insurance Actuarial Review Restricted Account created in
260     Section 31A-30-115.
261          [(19)] (20) The Insurance Fraud Investigation Restricted Account created in Section
262     31A-31-108.
263          [(20)] (21) The Underage Drinking Prevention Media and Education Campaign
264     Restricted Account created in Section 32B-2-306.
265          [(21)] (22) The School Readiness Restricted Account created in Section 35A-3-210.
266          [(22)] (23) The Youth Development Organization Restricted Account created in
267     Section 35A-8-1903.
268          [(23)] (24) The Youth Character Organization Restricted Account created in Section
269     35A-8-2003.
270          [(24)] (25) Money received by the Utah State Office of Rehabilitation for the sale of
271     certain products or services, as provided in Section 35A-13-202.
272          [(25)] (26) The Oil and Gas Conservation Account created in Section 40-6-14.5.
273          [(26)] (27) The Electronic Payment Fee Restricted Account created by Section
274     41-1a-121 to the Motor Vehicle Division.
275          [(27)] (28) The Motor Vehicle Enforcement Division Temporary Permit Restricted
276     Account created by Section 41-3-110 to the State Tax Commission.
277          [(28)] (29) The Utah Law Enforcement Memorial Support Restricted Account created
278     in Section 53-1-120.
279          [(29)] (30) The State Disaster Recovery Restricted Account to the Division of
280     Emergency Management, as provided in Section 53-2a-603.
281          [(30)] (31) The Department of Public Safety Restricted Account to the Department of
282     Public Safety, as provided in Section 53-3-106.
283          [(31)] (32) The Utah Highway Patrol Aero Bureau Restricted Account created in
284     Section 53-8-303.
285          [(32)] (33) The DNA Specimen Restricted Account created in Section 53-10-407.
286          [(33)] (34) The Canine Body Armor Restricted Account created in Section 53-16-201.
287          [(34)] (35) A certain portion of money collected for administrative costs under the
288     School Institutional Trust Lands Management Act, as provided under Section 53C-3-202.
289          [(35)] (36) The Public Utility Regulatory Restricted Account created in Section
290     54-5-1.5, subject to Subsection 54-5-1.5(4)(d).
291          [(36)] (37) Certain fines collected by the Division of Occupational and Professional
292     Licensing for violation of unlawful or unprofessional conduct that are used for education and
293     enforcement purposes, as provided in Section 58-17b-505.
294          [(37)] (38) Certain fines collected by the Division of Occupational and Professional
295     Licensing for use in education and enforcement of the Security Personnel Licensing Act, as
296     provided in Section 58-63-103.
297          [(38)] (39) The Relative Value Study Restricted Account created in Section 59-9-105.
298          [(39)] (40) The Cigarette Tax Restricted Account created in Section 59-14-204.
299          [(40)] (41) Funds paid to the Division of Real Estate for the cost of a criminal
300     background check for a mortgage loan license, as provided in Section 61-2c-202.
301          [(41)] (42) Funds paid to the Division of Real Estate for the cost of a criminal
302     background check for principal broker, associate broker, and sales agent licenses, as provided
303     in Section 61-2f-204.
304          [(42)] (43) Certain funds donated to the Department of Human Services, as provided in
305     Section 62A-1-111.
306          [(43)] (44) The National Professional Men's Basketball Team Support of Women and
307     Children Issues Restricted Account created in Section 62A-1-202.
308          [(44)] (45) Certain funds donated to the Division of Child and Family Services, as
309     provided in Section 62A-4a-110.
310          [(45)] (46) The Choose Life Adoption Support Restricted Account created in Section
311     62A-4a-608.
312          [(46)] (47) Funds collected by the Office of Administrative Rules for publishing, as
313     provided in Section 63G-3-402.
314          [(47)] (48) The Immigration Act Restricted Account created in Section 63G-12-103.
315          [(48)] (49) Money received by the military installation development authority, as
316     provided in Section 63H-1-504.
317          [(49)] (50) The Computer Aided Dispatch Restricted Account created in Section
318     63H-7a-303.
319          [(50)] (51) The Unified Statewide 911 Emergency Service Account created in Section
320     63H-7a-304.
321          [(51)] (52) The Utah Statewide Radio System Restricted Account created in Section
322     63H-7a-403.
323          [(52)] (53) The Employability to Careers Program Restricted Account created in
324     Section 63J-4-703.
325          [(53)] (54) The Motion Picture Incentive Account created in Section 63N-8-103.
326          [(54)] (55) Certain money payable for expenses of the Pete Suazo Utah Athletic
327     Commission, as provided under Section 63N-10-301.
328          [(55)] (56) Funds collected by the housing of state probationary inmates or state parole
329     inmates, as provided in Subsection 64-13e-104(2).
330          [(56)] (57) Certain forestry and fire control funds utilized by the Division of Forestry,
331     Fire, and State Lands, as provided in Section 65A-8-103.
332          [(57)] (58) Certain funds received by the Office of the State Engineer for well drilling
333     fines or bonds, as provided in Section 73-3-25.
334          [(58)] (59) The Water Resources Conservation and Development Fund, as provided in
335     Section 73-23-2.
336          [(59)] (60) Funds donated or paid to a juvenile court by private sources, as provided in
337     Subsection 78A-6-203(1)(c).
338          [(60)] (61) Fees for certificate of admission created under Section 78A-9-102.
339          [(61)] (62) Funds collected for adoption document access as provided in Sections
340     78B-6-141, 78B-6-144, and 78B-6-144.5.
341          [(62)] (63) Revenue for golf user fees at the Wasatch Mountain State Park, Palisades
342     State Park, Jordan River State Park, and Green River State Park, as provided under Section
343     79-4-403.
344          [(63)] (64) Certain funds received by the Division of Parks and Recreation from the
345     sale or disposal of buffalo, as provided under Section 79-4-1001.
346          [(64)] (65) Funds collected for indigent defense as provided in Title 77, Chapter 32,
347     Part 8, Utah Indigent Defense Commission.
348          Section 6. Appropriation.
349          The following sums of money are appropriated for the fiscal year beginning July 1,
350     2019, and ending June 30, 2020. These are additions to amounts previously appropriated for
351     fiscal year 2020. Under the terms and conditions of Title 63J, Chapter 1, Budgetary Procedures
352     Act, the Legislature appropriates the following sums of money from the funds or accounts
353     indicated for the use and support of the government of the state of Utah.
354          To Department of Environmental Quality - Clean Air Retrofit, Replacement,
355           and Off-road Technology
356               From General Fund, One-time
$2,000,000

357               Schedule of Programs:
358                    Clean Air Retrofit, Replacement, and     $2,000,000
359                    Off-road Technology
360          The Legislature intends that:
361          (1) the Division of Air Quality use appropriations under this section to issue grants for
362     the reduction of freight switcher locomotive emissions pursuant to Section 19-2-203;
363          (2) the Division of Air Quality expend appropriations under this section in fiscal years
364     2020, 2021, 2022, and 2023;
365          (3) appropriations provided under this section for the reduction of freight switcher
366     locomotive emissions may not lapse at the close of fiscal year 2020; and
367          (4) the use of any nonlapsing funds is limited to issuing grants for the reduction of
368     freight switcher locomotive emissions pursuant to Section 19-2-203.