DAR File No. 37989

Environmental Quality, Air Quality

Rule R307-123

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

Notice of Proposed Rule

(Amendment)

DAR File No.: 37989
Filed: 09/12/2013 12:44:05 PM

RULE ANALYSIS

Purpose of the rule or reason for the change:

On 04/08/2011, EPA finalized a rulemaking to streamline and expand its process to allow for intermediate and out-of-useful-life vehicles to be converted to run on alternate fuels such as compressed natural gas. Additionally, Section 19-1-402 classifies electricity as an eligible clean fuel. In order for vehicles that are converted to run on electricity to qualify for the tax credit, there is a need to add demonstration of eligibility requirements to the rule.

Summary of the rule or change:

Language is added throughout the rule to allow for intermediate and out-of-useful-life vehicles to be converted to run on alternate fuels such as natural gas. Demonstration of eligibility requirements for vehicles converted to electricity are added to the rule. Furthermore, criteria are added for demonstration of eligibility for retrofitted vehicles in order to verify that the condition of the vehicle prior to the installation of the retrofit is compliant with the retrofit's certification criteria.

State statutory or constitutional authorization for this rule:

• Section 59-7-605
• Section 19-2-104
• Section 19-2-401
• Section 59-10-1009

Anticipated cost or savings to:

the state budget:

There are no new requirements to the state; therefore, there are no anticipated costs or savings to the state budget.

local governments:

Because there are no changes to this rule that apply to local government, there are no anticipated costs or savings to local government.

small businesses:

Because there are no changes to this rule that apply to small businesses, there are no anticipated costs or savings.

persons other than small businesses, businesses, or local governmental entities:

Because there are no changes to this rule that apply to persons other than small businesses, businesses, or local government entities, there are no anticipated costs or savings.

Compliance costs for affected persons:

The changes to this rule will require additional documentation be provided in order to qualify for the grant or loan. However, any additional administrative costs to applicants will be minimal.

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

While the additional documentation requirements in the rule could result in additional costs to businesses applying for a clean vehicle grant or loan, those costs will be minimal. Additionally, businesses that decide to convert their vehicles to electricity, will now be able to potentially qualify for a grant or loan, resulting in significant savings.

Amanda Smith, 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 QualityRoom Fourth Floor
195 N 1950 W
SALT LAKE CITY, UT 84116-3085

Direct questions regarding this rule to:

• Mark Berger at the above address, by phone at 801-536-4000, by FAX at 801-536-0085, or by Internet E-mail at [email protected]

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:

10/31/2013

This rule may become effective on:

12/05/2013

Authorized by:

Bryce Bird, Director

R307. Environmental Quality, Air Quality.

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

R307-123-1. Authorization and Purpose.

(1) 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.

(2) 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).

(3) 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 to R307-123.

"Certified by the director" 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 EPA or 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 director:

(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]Natural Gas or Propane.

To demonstrate that a conversion of a motor vehicle fueled by [clean fuel]natural gas or propane is eligible, proof of purchase shall be made by submitting the following documentation to the director:

(1) the VIN;

(2) the fuel type before conversion;

(3) the fuel type after conversion;

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

(b) in all other areas of the [S]state, 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 director;]the EPA Certificate of Conformity, or equivalent documentation that is consistent with requirements outlined in 40 CFR Part 85 and 40 CFR Part 86, as published in Federal Register Volume 76 Page 19830 on April 8, 2011, or an executive order from the California Air Resources Board;

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

(8) a copy of the current Utah vehicle registration, which shows that the vehicle is registered in the applicant's name.

 

R307-123-5. Demonstration of Eligibility for Vehicles Converted to Electricity.

To demonstrate that a conversion of a motor vehicle to be powered by electricity is eligible, proof of purchase shall be made by submitting the following documentation to the director:

(1) the VIN;

(2) the fuel type before conversion;

(3) the fuel type after conversion;

(4) 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 motor vehicle;

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

(6) a copy of the current Utah vehicle registration; and

(7) a signed statement by an ASE-certified technician that includes the VIN, the technician's ASE certification number, and states that the conversion is functional and that the converted motor vehicle does not have any auxiliary source of combustion emissions.

 

R307-123-6. 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 director:

(1) the VIN;

(2) each of the following:

(a) the retrofit type;

([a]b) the retrofit equipment manufacturer[,];

([b]c) the retrofit equipment model number[,];

([c]d) the date of the retrofit[,]; and

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

([5]3) proof that the retrofit is certified by the director;

(4) proof that the vehicle condition prior to retrofit is compliant with the retrofit's certification criteria;

([6]5) an original or copy of the purchase order, customer invoice, or receipt; and

([7]6) a copy of the current Utah vehicle registration.

 

R307-123-7. Applicability.

Provisions found in sections R307-121-5(6) and R307-121-6(3)(c) shall apply to all conversions as of April 8, 2011.

 

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

Date of Enactment or Last Substantive Amendment: [November 8, 2012]2014

Notice of Continuation: August 8, 2013

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