1     
VEHICLE EMISSIONS REDUCTION PROGRAM

2     
2020 GENERAL SESSION

3     
STATE OF UTAH

4     
Chief Sponsor: Jeffrey D. Stenquist

5     
Senate Sponsor: ____________

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 a public
21     service campaign; and
22          ▸     creates a repeal date requiring committee review of the program.
23     Money Appropriated in this Bill:
24          None
25     Other Special Clauses:
26          None
27     Utah Code Sections Affected:

28     AMENDS:
29          63I-1-219, as last amended by Laws of Utah 2019, Chapters 62, 63, 64, 65, 246, 469,
30     and 477
31          63I-1-226, as last amended by Laws of Utah 2019, Chapters 67, 136, 246, 289, 455 and
32     last amended by Coordination Clause, Laws of Utah 2019, Chapter 246
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          26A-1-129, Utah Code Annotated 1953
43     

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

47          19-2-401. Title.
48          This part is known as "Vehicle Emissions Reduction Program."
49          Section 2. Section 19-2-402 is enacted to read:
50          19-2-402. Definitions.
51          As used in this chapter:
52          (1) "Crusher" means the same as that term is defined in Section 41-3-102.
53          (2) "Dismantler" means the same as that term is defined in Section 41-3-102.
54          (3) "Eligible replacement vehicle" means a motor vehicle as defined in Section
55     41-1a-102 that:
56          (a) (i) (A) emits emissions that are equal to or cleaner than the standards established in
57     bin 5 in Table S04-1, of 40 C.F.R. Sec. 86.1811-04(c)(6); and
58          (B) is of the current or previous five model years; or

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

90     in the program.
91          (9) "Participating recycler" means a crusher or dismantler that signs a written
92     agreement described in Section 19-2-406 with a local health department to participate in the
93     program.
94          (10) "Qualified vehicle owner" means an individual who:
95          (a) has a household income equal to or less than 300% of the federal poverty level; and
96          (b) owns an eligible trade-in vehicle.
97          (11) "Vehicle Emissions Reduction Program" or "program" means the program
98     established in Section 19-2-404.
99          (12) "Zero-emission vehicle" means a motor vehicle that emits no exhaust gas from the
100     onboard source of power.
101          Section 3. Section 19-2-403 is enacted to read:
102          19-2-403. Creation of restricted account -- Assistance.
103          (1) There is created within the General Fund a restricted account known as the Vehicle
104     Emissions Reduction Program Restricted Account.
105          (2) The restricted account consists of:
106          (a) any voluntary monetary contributions received;
107          (b) proceeds from the sale of eligible trade-in vehicles to participating recyclers made
108     in connection with the Vehicle Emissions Reduction Program;
109          (c) appropriations the Legislature makes to the restricted account; and
110          (d) interest accrued in accordance with Subsection (3)(b).
111          (3) The state treasurer shall:
112          (a) invest the money in the restricted account by following the procedures and
113     requirements of Title 51, Chapter 7, State Money Management Act; and
114          (b) deposit all interest or other earnings derived from the investments described in
115     Subsection (3)(a) into the restricted account.
116          (4) (a) Subject to legislative appropriations, the division shall provide financial
117     assistance from the Vehicle Emissions Reduction Program Restricted Account:
118          (i) to qualified vehicle owners who purchase eligible replacement vehicles in
119     accordance with this chapter;
120          (ii) in a total amount of up to $6,500,000; and

121          (iii) as described in Section 19-2-407, in amounts that increase on a sliding scale based
122     on:
123          (A) the household income of the qualified vehicle owner; and
124          (B) the emissions performance of the purchased eligible replacement vehicle.
125          (b) The division may use money in the Vehicle Emissions Reduction Program
126     Restricted Account to:
127          (i) administer the program in accordance with this chapter; or
128          (ii) assist a local health department to carry out the provisions of this chapter.
129          (5) The division shall deposit all money the division receives from the sale of eligible
130     trade-in vehicles to participating recyclers in connection with this program into the restricted
131     account.
132          Section 4. Section 19-2-404 is enacted to read:
133          19-2-404. Program creation -- Requirements.
134          (1) There is created the Vehicle Emissions Reduction Program to provide financial
135     assistance to qualified vehicle owners in purchasing eligible replacement vehicles.
136          (2) To receive financial assistance under the program, a qualified vehicle owner shall:
137          (a) in accordance with rules made under this chapter, apply for and obtain from a local
138     health department certification described in Section 26A-1-129, which states the level of
139     assistance the qualified vehicle owner is eligible to receive;
140          (b) deliver to a participating dealer:
141          (i) the qualified vehicle owner's eligible trade-in vehicle, including title to the vehicle;
142     and
143          (ii) the certification described in Subsection (2)(a); and
144          (c) purchase an eligible replacement vehicle from the participating dealer described in
145     Subsection (2)(b).
146          Section 5. Section 19-2-405 is enacted to read:
147          19-2-405. Participating dealers -- Reimbursement.
148          (1) To participate in the Vehicle Emissions Reduction Program, a dealer as defined in
149     Section 41-2-102 shall sign an agreement with a local health department that requires the
150     dealer:
151          (a) to surrender to a participating recycler all eligible trade-in vehicles the dealer

152     receives in connection with this program in accordance with rules established under this
153     chapter; and
154          (b) to follow rules established in accordance with this chapter in order to receive
155     reimbursement under this chapter.
156          (2) When a qualifying vehicle owner purchases an eligible replacement vehicle
157     following the requirements described in Subsection 19-2-404(2), the participating dealer shall:
158          (a) credit the qualifying vehicle owner's purchase with the amount of financial
159     assistance the qualifying vehicle owner's certification, as described in Section 19-2-404,
160     specifies;
161          (b) recycle the eligible trade-in vehicle in accordance with the agreement described in
162     Subsection (1); and
163          (c) provide the local health department that issued the certification described in Section
164     19-2-404:
165          (i) a copy of the contract of sale;
166          (ii) a copy of the used certification;
167          (iii) a picture of the purchased vehicle's emission information sticker;
168          (iv) a receipt showing that a participating recycler received the eligible trade-in vehicle
169     and the vehicle's title; and
170          (v) a request for reimbursement.
171          Section 6. Section 19-2-406 is enacted to read:
172          19-2-406. Participating recyclers.
173          (1) To participate in the Vehicle Emissions Reduction Program, a dismantler or crusher
174     shall:
175          (a) certify to the local health department with a signed agreement that each vehicle the
176     crusher or dismantler has received in connection with the program has been disabled or
177     scrapped in accordance with rules made by the board pursuant to Section 19-2-407;
178          (b) on a monthly basis, send the local health department:
179          (i) a list of all vehicles the crusher or dismantler received in connection with the
180     program; and
181          (ii) money the crusher or dismantler owes to the local health department for all vehicles
182     surrendered to the crusher or dismantler as described in Subsection 19-2-405(1)(a); and

183          (c) comply with rules made in accordance with this chapter.
184          (2) (a) A scrapped engine, equipment, or vehicle components may be salvaged from a
185     vehicle being replaced.
186          (b) If a crusher or dismantler sells a scrapped or salvaged engine, equipment, or part,
187     the crusher or dismantler shall remit the proceeds to the local health department on a monthly
188     basis.
189          Section 7. Section 19-2-407 is enacted to read:
190          19-2-407. Rulemaking.
191          (1) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
192     board shall make rules that:
193          (a) carry out the provisions of this chapter;
194          (b) establish a certification and reimbursement process in accordance with this chapter;
195          (c) ensure that an individual who receives financial assistance under both this program
196     and any similar program that relies on federal funding does not receive a total amount more
197     than the individual is qualified to receive under either program alone;
198          (d) ensure that an eligible trade-in vehicle surrendered under this program is converted
199     to scrap or otherwise disposed of;
200          (e) ensure that no engine part or emissions control system from an eligible trade-in
201     vehicle surrendered under this program is resold, except as scrap metal; and
202          (f) establish a sliding scale for financial assistance provided under this chapter that:
203          (i) provides up to $5,500 in financial assistance to a qualified vehicle owner that
204     purchases an eligible replacement vehicle in connection with the program; and
205          (ii) is based on:
206          (A) the household income of the qualified vehicle owner; and
207          (B) the emissions performance of the purchased eligible replacement vehicle.
208          (2) In making the rules described in Subsection (1), the board shall:
209          (a) consider recommendations from the division; and
210          (b) coordinate with the relevant local health departments, where applicable.
211          Section 8. Section 19-2-408 is enacted to read:
212          19-2-408. Public service campaign.
213          (1) Subject to legislative appropriations, the division shall conduct a public service

214     campaign to educate the public about:
215          (a) smog ratings of motor vehicles;
216          (b) the benefits to the state of lowering motor vehicle emissions;
217          (c) financial assistance available through the program; and
218          (d) any other program the division administers that is aimed at reducing air pollution or
219     improving air quality in nonattainment areas.
220          (2) The division may issue a request for proposal to assist the division in fulfilling the
221     requirements described in Subsection (1).
222          Section 9. Section 26A-1-129 is enacted to read:
223          26A-1-129. Vehicle Emissions Reduction Program certification.
224          (1) As used in this section:
225          (a) "Eligible replacement vehicle" means the same as that term is defined in Section
226     19-2-402.
227          (b) "Nonattainment area" means the same as that term is defined in Section 19-2-402.
228          (c) "Participating dealer" means the same as that term is defined in Section 19-2-402.
229          (d) "Qualified vehicle owner" means the same as that term is defined in Section
230     19-2-402.
231          (e) "Vehicle Emissions Reduction Program" or "program" means the program
232     established in Section 19-2-404.
233          (2) A local health department shall participate as described in this section in the
234     Vehicle Emissions Reduction Program, if the local health department is located in a county that
235     is required to have a motor vehicle emissions inspection and maintenance program under
236     Section 41-6a-1642.
237          (3) In accordance with rules made under Section 19-2-407, a local health department
238     described in Subsection (2) shall accept an application to receive certification for financial
239     assistance under the program.
240          (4) After receiving an application for certification as described in Subsection (3), a
241     local health department shall:
242          (a) determine whether the applicant is a qualified vehicle owner; and
243          (b) if the applicant is a qualified vehicle owner:
244          (i) determine the amount of assistance the qualified vehicle owner is eligible to receive

245     in accordance with the sliding scale established under Section 19-2-407;
246          (ii) issue the qualified vehicle owner a certification stating:
247          (A) the amount described in Subsection (4)(b)(i); and
248          (B) any other information the Air Quality Board requires on the certification.
249          (5) A local health department shall enter into agreements described in Sections
250     19-2-405 and 19-2-406 in accordance with rules the Air Quality Board makes as described in
251     Section 19-3-407.
252          (6) A local health department that receives a participating dealer's request for
253     reimbursement in accordance with Section 19-2-405 shall reimburse the participating dealer for
254     the amount the participating dealer credited the qualifying vehicle owner.
255          (7) On a monthly basis, each local health department shall submit to the Division of
256     Air Quality:
257          (a) a request for reimbursement that reflects the amount participating crushers or
258     dismantlers submitted to the local health department under Subsection 19-2-406(2)(b) deducted
259     from the amount the local health department reimbursed participating dealers in accordance
260     with Subsection (6); and
261          (b) all documents and information submitted to the local health department under
262     Subsections 19-2-405(2)(c) and 19-2-406(2).
263          Section 10. Section 63I-1-219 is amended to read:
264          63I-1-219. Repeal dates, Title 19.
265          (1) Title 19, Chapter 2, Air Conservation Act, is repealed July 1, 2029.
266          (2) Title 19, Chapter 2, Part 4, Vehicle Emissions Reduction Program, is repealed July
267     1, 2025.
268          [(2)] (3) Section 19-2a-102 is repealed July 1, 2021.
269          [(3)] (4) Section 19-2a-104 is repealed July 1, 2022.
270          [(4)] (5) Title 19, Chapter 4, Safe Drinking Water Act, is repealed July 1, 2024.
271          [(5)] (6) Title 19, Chapter 5, Water Quality Act, is repealed July 1, 2029.
272          [(6)] (7) Title 19, Chapter 6, Part 1, Solid and Hazardous Waste Act, is repealed July 1,
273     2029.
274          [(7)] (8) Title 19, Chapter 6, Part 3, Hazardous Substances Mitigation Act, is repealed
275     July 1, 2020.

276          [(8)] (9) Title 19, Chapter 6, Part 4, Underground Storage Tank Act, is repealed July 1,
277     2028.
278          [(9)] (10) Title 19, Chapter 6, Part 6, Lead Acid Battery Disposal, is repealed July 1,
279     2026.
280          [(10)] (11) Title 19, Chapter 6, Part 7, Used Oil Management Act, is repealed July 1,
281     2029.
282          [(11)] (12) Title 19, Chapter 6, Part 8, Waste Tire Recycling Act, is repealed July 1,
283     2020.
284          [(12)] (13) Title 19, Chapter 6, Part 10, Mercury Switch Removal Act, is repealed July
285     1, 2027.
286          Section 11. Section 63I-1-226 is amended to read:
287          63I-1-226. Repeal dates, Title 26.
288          (1) Section 26-1-40 is repealed July 1, 2022.
289          (2) Title 26, Chapter 9f, Utah Digital Health Service Commission Act, is repealed July
290     1, 2025.
291          (3) Section 26-10-11 is repealed July 1, 2020.
292          (4) Subsection 26-18-417(3) is repealed July 1, 2020.
293          (5) Subsection 26-18-418(2), the language that states "and the Mental Health Crisis
294     Line Commission created in Section 63C-18-202" is repealed July 1, 2023.
295          (6) Section 26-18-419.1 is repealed December 31, 2019.
296          (7) Title 26, Chapter 33a, Utah Health Data Authority Act, is repealed July 1, 2024.
297          (8) Title 26, Chapter 36b, Inpatient Hospital Assessment Act, is repealed July 1, 2024.
298          (9) Title 26, Chapter 36c, Medicaid Expansion Hospital Assessment Act, is repealed
299     July 1, 2024.
300          (10) Title 26, Chapter 36d, Hospital Provider Assessment Act, is repealed July 1, 2024.
301          (11) Title 26, Chapter 54, Spinal Cord and Brain Injury Rehabilitation Fund and
302     Pediatric Neuro-Rehabilitation Fund, is repealed January 1, 2023.
303          (12) Subsection 26-61a-108(2)(e)(i), related to the Native American Legislative
304     Liaison Committee, is repealed July 1, 2022.
305          (13) Title 26, Chapter 63, Nurse Home Visiting Pay-for-Success Program, is repealed
306     July 1, 2026.

307          (14) Section 26A-1-129 is repealed on July 1, 2025.