DAR File No. 31390

Environmental Quality, Air Quality

R307-123

General Requirements: Clean Fuels and Vehicle Technology Grant and Loan Program

NOTICE OF PROPOSED RULE

DAR File No.: 31390
Filed: 05/07/2008, 03:27
Received by: NL

RULE ANALYSIS

Purpose of the rule or reason for the change:

The purpose of Rule R307-123 is to specify the requirements for qualifying technologies to be awarded grant and loan monies from the Clean Fuels and Vehicle Technology Fund. The procedures for providing grants and loans for qualifying technologies from the Fund can be found under Rule R305-4 (see separate filing on Rule R305-4, in this issue). (DAR NOTE: The proposed new Rule R305-4 is found under DAR No. 31391 in this issue, June 1, 2008, of the Bulletin.)

Summary of the rule or change:

The Clean Fuels and Vehicle Technology Program Act, Sections 19-1-401 through 19-1-405, creates the Clean Fuels and Vehicle Technology Fund in Section 19-1-403. Section 19-1-405 authorizes the Air Quality Board to make rules to establish state-wide eligibility requirements for technologies qualified to be awarded grant and loan monies from the Fund. The Division of Air Quality (DAQ) staff created Rule R307-123 to specify these requirements. As proposed, the rule defines certification criteria and proof of purchase requirements for eligible technology. A summary of the provisions included in Rule R307-123 are as follows: 1) eligible equipment to receive monies from the fund are specified as new original equipment manufacturer (OEM) vehicles, motor vehicles that have been converted to use a clean fuel, and motor vehicles that have been retrofitted to reduce pollution emissions; 2) certification criteria for motor vehicle conversions, including pollution reduction requirements, are defined in the enabling statute, Section 19-1-405; 3) certification criteria and for motor vehicle retrofits, including pollution reduction requirements and eligible technology, are defined; and 4) proof of purchase requirements for eligible equipment are specified. Section 19-1-404 of the Act authorizes the Department of Environment Quality (DEQ) to establish the procedures for providing grants and loans for qualifying technologies from the Clean Fuels and Vehicle Technology Fund. The DEQ is proposing Rule R305-4 (see separate filing on Rule R305-4 in this issue) to specify these procedures.

State statutory or constitutional authorization for this rule:

Sections 19-2-104 and 19-1-401

Anticipated cost or savings to:

the state budget:

There is no change in costs for the state budget, because costs for administering the program are already allocated from the Fund and nominal fees for purchasing credit reports for applicants will be recouped from application fees. State government entities that wish to apply for the program are subject to application fees of $140 for loan applications, $280 for grant applications, and $350 for infrastructure applications. Because this is a new program, the actual amount of applications is unknown at this time.

local governments:

There is no change is costs for sources owned or operated by local government. However, local government entities that wish to apply for the program are subject to application fees of $140 for loan applications, $280 for grant applications, and $350 for infrastructure applications. Because this is a new program we are unable to estimate how many government agencies will apply for money from this program.

small businesses and persons other than businesses:

Small Businesses: No change in costs is expected for small business. However, small businesses that wish to apply for the program are subject to application fees of $140 for loan applications, $280 for grant applications, and $350 for infrastructure applications. Because this is a new program we are unable to estimate how many small businesses will apply for money from this program. Other Persons: Because the rule is only applicable to the private business and government sectors, no change in costs is expected for other persons.

Compliance costs for affected persons:

No change in costs is expected for affected persons. However, any business or government entity that wishes to apply for the program is subject to application fees of $140 for loan applications, $280 for grant applications, and $350 for infrastructure applications.

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

There are no requirements for businesses, or state or local government, therefore no change in costs is expected. Those entities that wish to apply for the program will be subject to nominal application fees. Richard W. Sprott, 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
Air Quality
150 N 1950 W
SALT LAKE CITY UT 84116-3085

Direct questions regarding this rule to:

Mat E. Carlile at the above address, by phone at 801-536-4136, by FAX at 801-536-0085, or by Internet E-mail at MCARLILE@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:

07/01/2008

Interested persons may attend a public hearing regarding this rule:

6/20/2008 at 2:00 PM, DEQ Building, 168 N 1950 W, Room 201, Salt Lake City, UT

This rule may become effective on:

08/08/2008

Authorized by:

Bryce Bird, Planning Branch Manager

R307. Environmental Quality, Air Quality.

R307-123. General Requirements: Clean Fuels and Vehicle Technology Grant and Loan Program.

R307-123-1. Authorization and Purpose.

This rule is authorized by Section 19-1-405, which establishes criteria and definitions used to determine eligibility for use of the Clean Fuels and Vehicle Technology Fund created in Section 19-1-403. R307-123 establishes procedures to provide proof of purchase to the Board for an OEM vehicle, or the conversion or retrofit of a vehicle for which a grant or loan made with the monies available in the Fund is allowed under Subsection 19-1-403(2)(a). Eligible technologies are required to meet the criteria and follow the procedures established in R305-4.

 

R307-123-2. Definitions.

Definitions. The following additional definitions apply toR307-123.

"Certified by the Board" means that:

(1) A motor vehicle on which conversion equipment has been installed meets the criteria in Subsection 19-1-405(1)(a) and demonstrates a reduction in emissions as defined in Subsection 19-1-405(2); or

(2) A motor vehicle on which a retrofit has been installed meets the following criteria:

(a) the motor vehicle's emissions of regulated pollutants, when operating with the retrofit equipment, is less than the emissions were before the installation of the retrofit equipment; and

(b) a reduction in emissions under Subsection R307-123-2(2)(a)is demonstrated by:

(i) certification of the retrofit by the federal EPA or by a state whose certification standards are recognized by the Board; or

(ii) any other test or standard recognized by the Board.

"Clean fuel" means clean fuel as defined in Subsection 19-1-402(1).

"Clean fuel vehicle" means clean fuel vehicle as defined in Subsection 19-1-402(2).

"Conversion equipment" means a package which may include fuel, ignition, emissions control, and engine components that are modified, removed, or added to a motor vehicle or special mobile equipment to make that vehicle or equipment eligible.

"Manufacturer's Statement of Origin" means a certificate showing the original transfer of a new motor vehicle from the manufacturer to the original purchaser.

"Original equipment manufacturer (OEM) vehicle" means OEM vehicle as defined in Subsection 19-1-402(8).

"Retrofit" means retrofit as defined in Subsection 19-1-402(11).

"Retrofit equipment" means a diesel oxidation catalyst, a diesel particulate filter, or a closed crankcase filtration system, that has been approved for use in engine retrofit programs by the federal EPAor by a state whose testing protocols are recognized by the Board.

 

R307-123-3. Demonstration of Eligibility for OEM Vehicles.

To demonstrate that a vehicle is eligible, proof of purchase shall be made by submitting the following documentation to the executive secretary:

(1)(a) A copy of the Manufacturer's Statement of Origin or equivalent manufacturer's documentation showing that the vehicle is an OEM vehicle; or

(b) a signed statement by an Automotive Service Excellence (ASE) certified technician that includes the vehicle identification number(VIN)and states that the vehicle is an OEM vehicle;

(2) An original or copy of the purchase order, customer invoice, or receipt including the VIN; and

(3) A copy of the current Utah vehicle registration.

 

R307-123-4. Demonstration of Eligibility for Vehicles Converted to Clean Fuels.

To demonstrate that a conversion of a motor vehicle fueled by clean fuel is eligible, proof of purchase shall be made by submitting the following documentation to the executive secretary:

(1) the VIN;

(2) the fuel type before conversion;

(3) the fuel type after conversion;

(4)(a) If within a county with an inspection and maintenance (I/M) program, a copy of the vehicle inspection report from an approved station showing that the converted clean fuel vehicle meets all county emissions requirements for all installed fuel systems; or

(b) a signed statement by an ASE certified technician that includes the VIN and states that the conversion is functional;

(5) each of the following:

(a) the conversion equipment manufacturer,

(b) the conversion equipment model number,

(c) the date of the conversion, and

(d) the name, address, and phone number of the person that converted the vehicle;

(6) proof that the conversion is certified by the Board;

(7) an original or copy of the purchase order, customer invoice, or receipt; and

(8) a copy of the current Utah vehicle registration.

 

R307-123-5. Demonstration of Eligibility for Retrofitted Vehicles.

To demonstrate that a retrofit of a motor vehicle is eligible, proof of purchase shall be made by submitting the following documentation to the executive secretary:

(1) the VIN;

(2) each of the following:

(a) the retrofit equipment manufacturer,

(b) the retrofit equipment model number,

(c) the date of the retrofit, and

(d) the name, address, and phone number of the person that retrofitted the vehicle;

(5) proof that the retrofit is certified by the Board;

(6) an original or copy of the purchase order, customer invoice, or receipt; and

(7) a copy of the current Utah vehicle registration.

 

KEY: air pollution, alternative fuels, grants and loans, motor vehicles

Date of Enactment or Last Substantive Amendment: 2008

Authorizing, and Implemented or Interpreted Law: 19-2-104; 19-1-401; 59-7-605; 59-10-1009