No. 38838 (New Rule): Rule R307-125. Clean Air Retrofit, Replacement, and Off-Road Technology Program

(New Rule)

DAR File No.: 38838
Filed: 09/04/2014 09:35:28 AM

RULE ANALYSIS

Purpose of the rule or reason for the change:

The Utah Legislature enacted the Clean Air Retrofit, Replacement, and Off-Road Technology (CARROT) Program during the 2014 General Legislative Session through H.B. 61. CARROT allows grants or other programs such as exchange, rebate, or low-cost purchase programs for activities that reduce emissions from non-road or heavy-duty diesel, on-road engines. H.B. 61 gives authority to the Air Quality Board to make rules specifying the requirements and procedures of the CARROT Program, which this new rule does.

Summary of the rule or change:

This rule specifies the requirements and procedures of the Clean Air Retrofit, Replacement and Off-Road Technology Program that is authorized in Section 19-2-203, including how the director may allocate funds and how grants and exchange, rebate, or low-cost purchase awards are applied for and awarded.

State statutory or constitutional authorization for this rule:

• Section 19-1-203
• Section 19-2-203

Anticipated cost or savings to:

the state budget:

Because this rule is implementing a new grant program that has already been funded by the legislature, there are no new anticipated costs or savings to the state budget. Any administrative costs associated with implementing the program should be minimal and should not require any additional funding.

local governments:

While there are no requirements in the rule for local government to participate in administering the program, it is likely that local health departments will be involved in carrying out various programs such as exchange, rebate, or low-cost purchase programs for landscape equipment. These costs should be minimal and would likely not result in an increase to their budgets. If local governments choose to apply for funding through this program, they could see savings not to exceed $200,000, which is the amount funded by the Legislature.

small businesses:

If small businesses choose to apply for funding through this program, they could see savings not to exceed $200,000, which is the amount funded by the Legislature.

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

If persons other than small businesses, businesses, or local government entities choose to apply for funding through this program, they could see savings not to exceed $200,000, which is the amount funded by the Legislature.

Compliance costs for affected persons:

Because this rule establishes criteria for a voluntary program, there are no compliance costs for affected persons.

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

If businesses choose to apply for funding through this program, they could see savings not to exceed $200,000, which is the amount funded by the Legislature.

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 [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:

10/31/2014

This rule may become effective on:

12/04/2014

Authorized by:

Bryce Bird, Director

RULE TEXT

R307. Environmental Quality, Air Quality.

R307-125. Clean Air Retrofit, Replacement, and Off-Road Technology Program.

R307-125-1. Authority and Purpose.

(1) This rule specifies the requirements and procedures of the Clean Air Retrofit, Replacement and Off-Road Technology Program that is authorized in 19-2-203.

(2) The procedures of this rule constitute the minimum requirements for the application for and the awarding of funds that are designated for the Clean Air Retrofit, Replacement, and Off-Road Technology Program.

 

R307-125-2. Definitions.

The terms "certified," "cost," "director," "division," "eligible equipment," "eligible vehicle," and "verified" are defined in 19-2-202.

 

R307-125-3. Allocation of Funds.

The director may apportion up to 50% of the funds allocated for this program for an exchange, rebate, or low-cost purchase program under 19-2-203(2). The remainder may be allocated to a grant program under 19-2-203(1).

 

R307-125-4. Grants Under 19-2-203(1).

(1) A grant under 19-2-203(1) may only be used for:

(a) verified technologies for eligible vehicles or equipment; and

(b) certified vehicles, engines, or equipment.

(2) In prioritizing grant awards, the director shall consider:

(a) whether and to what extent the applicant has already secured some other source of funding;

(b) the air quality benefits to the state and local community attributable to the project;

(c) the cost-effectiveness of the proposed project;

(d) the feasibility and practicality of the project; and

(e) other factors that the director determines should apply based on the nature of the application.

(3) In prioritizing grant awards, the director may also, at the request of an applicant, consider the financial need of the applicant.

(4) A successful grant applicant will be required to agree:

(a) to provide information to the division about the vehicles, equipment, or technology acquired with the grant proceeds;

(b) to allow inspections by the division to ensure compliance with the terms of the grant;

(c) to permanently disable replaced vehicles, engines, and equipment from use; and

(d) for any grant that is not given on a reimbursement basis, to commit to complete the project as proposed;

(e) not to change the location or use of the vehicle, engine or equipment from the location or use proposed in their application without approval of the director; and

(f) to any additional terms as determined by the director.

(5) Eligible vehicles are defined in 19-2-202(7). No additional vehicles under 19-2-202(7)(e) are eligible at this time.

(6) The division shall use the following procedures to implement the grant program:

(a) The division shall provide notice on the division's website of the availability of grants and of cut-off dates for applications.

(b) An application for a grant shall be on a form provided by the division.

(c) The director may provide grants on a reimbursement basis or as an advance award.

(d) Successful grant applicants will be required to sign a grant agreement that contains the terms described in R307-125-4(4).

(e) State agencies and employees are eligible to participate in the program and are subject to program requirements.

 

R307-125-5. Exchange, Rebate, or Low-Cost Purchase Programs Under 19-2-203(2).

(1) The director has discretion to choose whether to use an exchange, rebate or low-cost purchase program.

(2) The division shall use the following procedures to implement an exchange, rebate or low-cost purchase program:

(a) The division shall provide notice on the division's website of any exchange, rebate or low-cost purchase program.

(b) An application for an exchange, rebate, or low-cost purchase shall be on a form provided by the division.

(c) State agencies and employees are eligible to participate in any program and are subject to program requirements.

(d) The director may establish additional procedures appropriate to the specific program.

(3) A participant in an exchange, rebate, or low-cost purchase program will be required to agree to the terms outlined in the application as determined by the director.

 

KEY: air quality, grants, rebates, purchase program

Date of Enactment or Last Substantive Amendment: 2014

Authorizing, and Implemented or Interpreted Law: 19-2-203; 19-1-203

 

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