DAR File No. 40459

This rule was published in the June 15, 2016, issue (Vol. 2016, No. 12) of the Utah State Bulletin.

Governor, Economic Development

Rule R357-17

Air Quality Incentive

Notice of Proposed Rule

(New Rule)

DAR File No.: 40459
Filed: 06/01/2016 01:56:25 PM


Purpose of the rule or reason for the change:

This rule is being created to set governing parameters around qualifying and receiving an air quality incentive created by S.B. 186 in the 2016 General Session.

Summary of the rule or change:

This rule specifies the parameters for the air quality incentive created by S.B. 186 (2016). More specifically, it establishes the form of the application and its content; the criteria for qualifying for a grant; requirements for documentation and verification of information; and conditions precedent to a grant disbursement.

State statutory or constitutional authorization for this rule:

  • Subsection 63N-1-402(2)(b)

Anticipated cost or savings to:

the state budget:

This rule does not create any cost or savings to the state budget. The grant is funded out of the Industrial Assistance Account, which is a restricted account, and grants are only given if funds are available. The rule does not change the account's process, and no other revenue source is attached to the grants.

local governments:

This rule does not create any cost or savings to a local government because they are not allowed to receive a grant due to the statutory parameters.

small businesses:

This rule could create some costs to a grant recipient due to the collection and providing of documentation for the compliance requirements throughout. Any costs should be minimal and would not create any undue burden on the business in relation to the overall gain in the amount of the grant.

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

There are no other persons that would be impacted by this rule because only business may receive a grant.

Compliance costs for affected persons:

The only compliance costs for an affected person would be those incurred by applying for the grant and providing the requisite documentation and permits already required by federal and state laws.

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

There should be minimal compliance costs only for those receiving the grant, and no other businesses generally will be impacted.

Val Hale, Executive Director

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

Economic Development

Direct questions regarding this rule to:

  • Jeffrey Van Hulten at the above address, by phone at 801-538-8694, by FAX at 801-538-8888, or by Internet E-mail at jeffreyvan@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:


This rule may become effective on:


Authorized by:

Val Hale, Executive Director


R357. Governor, Economic Development.

R357-17. Air Quality Incentive.

R357-17-1. Authority.

(1) Utah Code Annotated (UCA) Subsection 63N-1-402(2)(b) provides that the Board can make, amend or repeal Rules for the purpose of conducting its business.


R357-17-2. Definitions.

(1) Terms in these rules are used as defined in Utah Code Annotated (UCA) 63N-3-102.


R357-17-3. Application Form and Content.

(1) An application form will be provided by the Office and will contain the following content:

(a) General submission instructions;

(b) Applicant provided project description including:

(i) Emissions profile of the project's operations; and

(ii) Method of intended pollution control measures applicant is submitting for approval from Division of Air quality.

(c) Other criteria and information as requested by the Office in the application;

(d) Any required deadlines and relevant timelines; and

(e) All required documents and information necessary for verification and approval of the application.

(2) The application shall be created in an electronic format available to the public at business.utah.gov

(3) The application shall also be available in paper format for any person or entity that requests a paper copy via mail or telephone.


R357-17-4. Criteria for Air Quality Grant.

(1) The amount of the grant shall be determined on a case-by-case basis. Factors to be considered include but are not limited to the requirements listed in UCA 63N-1-109.5 and:

(a) Whether the applicant's industry has been determined by the GOED Board as a Targeted Industry as defined in R357-3-2;

(b) The financial cost and need of assistance for the project, including whether the Company has secured the technology at the time of application;

(c) To what extent the best available control technology (BACT) will mitigate projected pollution by applicant;

(d) Comparison to other technologies available for the relevant emissions profile of the applicant;

(e) The economic environment, including the unemployment rate and the underemployment rate of the county where the BACT will be installed, at the time of application;

(f) The location of the project generally and the where the BACT will be installed;

(g) The average wage level of the forecasted jobs created;

(h) The overall benefit to the State and potential improvement to the air quality of the non-attainment area;

(i) The demonstrated support of the local community for the project overall and the BACT; and

(j) Other factors as reasonably determined by the administrator in consultation with the GOED Board.

(2) Applicant must show it does not qualify for any other grant or incentive that would finance or cover the cost of the BACT.

(3) The Department of Environmental Quality (DEQ) will provide a preliminary assessment of the Applicant's proposal and will report on to what extent the proposal meets DEQ and other state and federal legal and regulatory requirements, including whether the equipment to be purchased meets the design requirements corresponding to the BACT for the relevant emissions profile of the applicant

(a) The assessment is subject to change based on conditions outlined in R357-17-6(1); and

(b) Failure to receive a preliminary approval from this assessment will result in the denial of an application.

(4) A grant will only be awarded to applications that demonstrate the grant is only being used to lower the financing costs associated with the BACT.


R357-17-5. Required Documentation and Verification Information.

(1) An applicant may be required to submit the following information and documentation to verify claims and request made in the application:

(a) Balance Sheets;

(b) Income Statements;

(c) Cash Flow Statements;

(d) Bank statements showing purchase;

(e) Invoices and/or receipts showing purchase;

(f) Market analyses;

(g) Analysis showing comparable technology with the BACT;

(h) Workforce data;

(i) Blueprints or other design specifications of BACT purchased;

(j) Business plans of intended use and benefits;

(k) Forecasted new state revenue associated with the BACT;

(l) Forecasted incremental job creation associated with the BACT;

(m) Forecasted wages associated with the BACT; or

(n) Other information as determined by the administrator within its reasonable discretion.

(2) Information provided by the business entity is subject to the Government Records Access and Management Act. The applicant has the option, at its sole discretion and responsibility, to designate what information provided is private or protected subject to UCA 63G-2-302 and/or UCA 63G-2-305.


R357-17-6. Conditions Precedent to Grant Disbursement.

(1) A grant awarded under Section 63N-3-109.5 is conditional and will be contingent on the applicant gaining all required approvals and permits for a New Source Review as promulgated by the Department of Environmental Quality.

(a) Copies of all approval documentation and permits must be provided to the administrator before any disbursement of a grant.

(2) Failure to receive the New Source Review permits from the Department of Environmental Quality will result in rescinding the grant award, and no funding will be awarded.


KEY: air quality, incentives, industrial assistance account

Date of Enactment or Last Substantive Amendment: 2016

Authorizing, Implemented, or Interpreted Law: 63N-1-402(2)(b)


Additional Information

More information about a Notice of Proposed Rule is available online.

The Portable Document Format (PDF) version of the Bulletin is the official version. The PDF version of this issue is available at https://rules.utah.gov/publicat/bull-pdf/2016/b20160615.pdf. The HTML edition of the Bulletin is a convenience copy. Any discrepancy between the PDF version and HTML version is resolved in favor of the PDF version.

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For questions regarding the content or application of this rule, please contact Jeffrey Van Hulten at the above address, by phone at 801-538-8694, by FAX at 801-538-8888, or by Internet E-mail at jeffreyvan@utah.gov.  For questions about the rulemaking process, please contact the Division of Administrative Rules.