No. 40746 (5-year Review): Rule R307-121. General Requirements:Clean Air and Efficient Vehicle Tax Credit

DAR File No.: 40746
Filed: 09/07/2016 03:36:03 PM

NOTICE OF REVIEW AND STATEMENT OF CONTINUATION

Concise explanation of the particular statutory provisions under which the rule is enacted and how these provisions authorize or require the rule:

Sections 59-7-605 and 59-10-1009 authorize an income tax credit for those purchasing a new vehicle that uses natural gas, propane, or electricity. Rule R307-121 sets forth conditions for eligibility and the process of application for corporate and individual income tax credits, as required under Subsection 19-2-104(3)(b)(vi).

Summary of written comments received during and since the last five-year review of the rule from interested persons supporting or opposing the rule:

Rule R307-121 has been amended five times since the last five-year review: DAR No. 35718 (nonsubstantive change), DAR No. 36809 (nonsubstantive change), DAR No. 37990 (effective 01/01/2014), DAR No. 38837 (effective 01/01/2015), and DAR No. 39353 (effective 09/03/2015). One comment was received in relation to changes made to DAR No. 38837. The comment was about concerns that the proposed rule did not require any evidence that the system meets state emission requirements or is safe according to NFPA 52 code. Instead it puts the responsibility on the taxpayer to know those requirements and to certify that the installation complies with them. Division of Air Quality (DAQ) Response: The person commenting is correct when stating that the responsibility to ensure that the system meets emission and safety requirements falls on the taxpayer. Subsection 19-2-406(1) states that the owner of the converted vehicle is responsible to ensure that the vehicle is inspected by a CSA America Inspector and tested to ensure that the vehicle satisfies emission standards. No other comments have been received since the last five-year review.

Reasoned justification for continuation of the rule, including reasons why the agency disagrees with comments in opposition to the rule, if any:

Rule R307-121 should be continued because it provides necessary guidance in the administration of the Utah Clean Fuel Tax Credit program, which is required by Subsection 19-2-104(3)(b)(vi).

The full text of this rule may be inspected, during regular business hours, at the Office 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:

• Mat Carlile at the above address, by phone at 801-536-4116, by FAX at 801-536-4136, or by Internet E-mail at [e-mail]

Effective:

09/07/2016

Authorized by:

Bryce Bird, Director

---