DAR File No. 29326

Environmental Quality, Water Quality

R317-12

Tax Exemption for Water Pollution Control Equipment

NOTICE OF PROPOSED RULE

DAR File No.: 29326
Filed: 12/14/2006, 04:15
Received by: NL

RULE ANALYSIS

Purpose of the rule or reason for the change:

Currently, the rule used by to Division of Water Quality to implement tax exemption for water pollution control activities resides in Rule R307-102, a Division of Air Quality Rule. This proposed new rule would establish a stand-alone rule for the Division of Water Quality. (DAR NOTE: The proposed amendment to Rule R307-120 is found under DAR No. 29327 in this issue, January 1, 2007, of the Bulletin.)

Summary of the rule or change:

The purposed rule, Rule R317-12, implements the tax exemption portion of the Utah Water Quality Act independent from the Division of Air Quality. There are no substantive changes in the scope or intent of the proposed rule from the current Air Quality regulation, Rule R307-120, other than the separation of the rule into its two component parts: air quality and water quality.

State statutory or constitutional authorization for this rule:

Sections 19-5-104, 19-2-123, 19-2-124, 19-2-125, 19-2-126, and 19-2-127

Anticipated cost or savings to:

the state budget:

There is no anticipated cost or savings to the state budget. The Division of Water Quality is already implementing these regulations under the existing Air Quality rule, Rule R307-120.

local governments:

There is no anticipated cost or savings to local budgets. The Division of Water Quality is already enforcing these regulations under the existing Air Quality rule, Rule R307-120.

other persons:

There is no anticipated cost or savings to other persons. The Division of Water Quality is already enforcing these regulations under the existing Air Quality rule, Rule R307-120.

Compliance costs for affected persons:

The proposed regulation allows tax exemption for certain qualifying purchases. Compliance is voluntary, and is only required in order to qualify for tax exemption.

Comments by the department head on the fiscal impact the rule may have on businesses:

No significant fiscal impacts to businesses are anticipated as the Division of Water Quality is already enforcing these regulations under the existing Air Quality rule, Rule R307-120. Dianne R. Nielson, Executive Director

The full text of this rule may be inspected, during regular business hours, at the Division of Administrative Rules, or at:

Environmental Quality
Water Quality
CANNON HEALTH BLDG
288 N 1460 W
SALT LAKE CITY UT 84116-3231

Direct questions regarding this rule to:

Dave Wham at the above address, by phone at 801-538-6052, by FAX at 801-538-6016, or by Internet E-mail at dwham@utah.gov

Interested persons may present their views on this rule by submitting written comments to the address above no later than 5:00 p.m. on:

01/31/2007

Interested persons may attend a public hearing regarding this rule:

1/14/2007 at 2:00 PM, Cannon Health Building, 288 N 1460 W, Room 125, Salt Lake City, UT

This rule may become effective on:

02/20/2007

Authorized by:

Walter Baker, Director

R317. Environmental Quality, Water Quality.

R317-12. General Requirements: Tax Exemption for Water Pollution Control Equipment.

R317-12-1. Application.

Application for certification shall be made on forms provided by the State Department of Environmental Quality, and shall include all information requested thereon and such additional reasonably necessary information as is requested by the executive secretary of the Water Quality Board.

 

R317-12-2. Eligibility for Certification.

Certification shall be made only for taxpayers who are owners, operators (under a lease) or contract purchasers of a trade or business that utilizes Utah property with a pollution control facility to prevent or minimize pollution.

 

R317-12-3. Review Period.

Date of filing shall be date of receipt of the final item of information requested and this filing date shall initiate the 120-day review period.

 

R317-12-4. Conditions for Eligibility.

(1) All materials, equipment and structures (or part thereof) purchased, leased or otherwise procured and services utilized for construction or installation in a water pollution control facility shall be eligible for certification, provided:

(a) such materials, equipment, structures (or part thereof), and services installed, constructed, or acquired result in a demonstrated reduction of pollutant discharges, and

(b) the primary purpose of such materials, equipment, structures (or part thereof), and services is preventing, controlling, reducing, or disposing of water pollution.

(2) The above includes expenditures which reduce the amount of pollutants produced as well as expenditures which result in removal of pollutants from waste streams. The materials, equipment, structures (or part thereof), and services that are necessary for the proper functioning of water pollution control facilities meeting the requirements of (1)(a) and (b) above, including equipment required for compliance monitoring, shall be eligible for certification.

 

R317-12-5. Limitations on Certification.

Applications for certification shall be certified by the executive secretary of the Water Quality Board after consultation with the State Tax Commission and only if:

(1) plans for the water pollution control facility in question require review and approval by the Water Quality Board and have been so approved, or

(2) the water pollution control facility is specifically required by the Water Quality Board, including facilities constructed for pretreatment of wastes prior to discharge to a public sewerage system in accordance with R317-8-8.1, but excluding facilities which are permitted by rule under R317-6-6.2 (Ground Water Discharge Permit by Rule) unless required to obtain an individual permit by the Water Quality Board, or

(c) the water pollution control facility is required and permitted by another statutory board within the Department of Environmental Quality, or

(d) the water pollution control facility eliminates or reduces the discharge of pollutants which would be regulated by the Water Quality Board, if such pollutants were discharged.

 

R317-12-6. Exemptions from Certification.

The following items are specifically not eligible for certification:

(1) materials and supplies used in the normal operation or maintenance of the water pollution control facilities;

(2) materials, equipment, and services used to monitor water, unless required for a permit or approval from a statutory board within the Department of Environmental Quality;

(3) materials, equipment, and services for collection, treatment, and disposal of human wastes, unless the primary purpose of such materials, equipment and services is the treatment of industrial wastes;

(4) materials, equipment and services used in removal, treatment, or disposal of pollutants from contaminated ground water, if the applicant caused the ground water contamination by failing to comply with applicable permits, approvals, rules, or standards existing at the time the contamination occurred.

 

R317-12-7. Duty to Issue Certification.

Upon determination that facilities described in any application under R317-12-1 satisfy the requirements of these rules and Sections 19-2-123 through 19-2-127 the executive secretary of the Water Quality Board shall issue a certification of pollution control facility to the applicant.

 

R317-12-8. Appeal and Revocation.

(1) A decision of the executive secretary of the Water Quality Board may be reviewed by filing a Request for Agency Action as provided in the administrative rules for Water Quality, R317.

(2) Revocation of prior certification shall be made for any of the circumstances prescribed in Section 19-2-126, after consultation with the State Tax Commission.

 

KEY: water pollution, tax exemptions, equipment

Date of Enactment or Last Substantive Amendment: 2007

Authorizing, and Implemented or Interpreted Law: 19-2-123, 19-2-124; 19-2-125; 19-2-126; 19-2-127