No. 29327 (Amendment): R307-120. General Requirements: Tax Exemption for Air and Water Pollution Control Equipment

DAR File No.: 29327
Filed: 12/14/2006, 04:26
Received by: NL

RULE ANALYSIS

Purpose of the rule or reason for the change:

The amendment removes references to water pollution control equipment and the Water Quality Board, because the Water Quality Board has proposed its own rule to address these issues (see separate filing on Rule R317-12 in this issue.) (DAR NOTE: The proposed new Rule R317-12 is found under DAR No. 29326 in this issue, January 1, 2007, of the Bulletin.)

Summary of the rule or change:

The Legislature provided a sales tax credit for pollution control equipment in the early 1970s. The entire program was written into Title 19, Chapter 2, the Air Conservation Act, even though it applied to water pollution controls, as well as air pollution controls. Since that time, the Division of Water Quality has administered their own pollution control credits through Rule R307-120, which is an Air Quality rule. The Division of Water Quality is writing its own rule, Rule R317-12. The two divisions are working together to remove references to water pollution and the Water Quality Board from Rule R307-120 and ensuring that the new Water Quality rule and the changes in Rule R307-120 become effective on the same date. Some grammatical corrections in Rule R307-120 also are being made now (see separate filing in this issue on Rule R317-12.)

State statutory or constitutional authorization for this rule:

Sections 19-2-124, 19-2-125, 19-2-126, and 19-2-127

Anticipated cost or savings to:

the state budget:

There are no changes in cost for the Division of Air Quality, as the water quality portion of the tax credit program has always been administered by the Water Quality Board.

local governments:

There are no changes in cost for local governments, as the tax credit program is not available to local governments because they pay no taxes.

other persons:

There are no changes in cost for other persons, as the water quality portion of the tax credit program always has been administered by the Water Quality Board.

Compliance costs for affected persons:

There are no changes in cost for other persons, as the water quality portion of the tax credit program always has been administered by the Water Quality Board.

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

There will be no change in costs or benefits for business, as the Water Quality Board has always administered its part of the tax credit program. Dianne R. Neilson, 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:

Jan Miller at the above address, by phone at 801-536-4042, by FAX at 801-536-0085, or by Internet E-mail at [e-mail]

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

This rule may become effective on:

02/08/2007

Authorized by:

M. Cheryl Heying, Planning Branch Manager

RULE TEXT

R307. Environmental Quality, Air Quality.

R307-120. General Requirements: Tax Exemption for Air [and Water ]Pollution Control Equipment.

R307-120-1. Application.

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

 

R307-120-2. 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 air pollution.

 

R307-120-4. 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 an[ water or] air 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 or emission pollutant levels, and

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

(2) The above includes expenditures [which]that reduce the amount of pollutants produced as well as expenditures [which]that 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 air [or water ]pollution control facilities meeting the requirements of (1)(a) and (b) above, including equipment required for compliance monitoring, shall be eligible for certification.

 

R307-120-5. Limitations on Certification.

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

(1) [Air Quality.

(a) ]the air pollution control facility in question has been reviewed and approved by the executive secretary of the [Air Quality ]Board for those air pollution sources needing review in accordance with R307-401, or

([b]2) the air pollution control facilities installed, constructed, or acquired are the result of the requirements of these rules (permits by rule) or the State Implementation Plan.[

(2) Water Quality.

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

(b) 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.]

 

R307-120-6. 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 or ]air pollution control facilities;

(2) materials, equipment, and services used to monitor ambient air[ or water], unless required for a permit or approval from the Board[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; and

(5) ]air conditioners.

 

R307-120-7. Duty to Issue Certification.

Upon determination that facilities described in any application under R307-120-1 satisfy the requirements of these rules and Sections 19-2-123 through 19-2-127 the executive secretary of the [Air Quality ]Board [or the executive secretary of the Water Quality Board ]shall issue a certification of pollution control facility to the applicant.

 

R307-120-8. Appeal and Revocation.

(1) A decision of the executive secretary of the [Air Quality ]Board may be reviewed by filing a Request for Agency Action as provided in R307-103-3.[ 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: air pollution, tax exemptions, equipment[*]

Date of Enactment or Last Substantive Amendment: [December 7, 2000]2007

Notice of Continuation: March 26, 2002

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