No. 35727 (New Rule): Rule R27-9. Dispensing Compressed Natural Gas to the Public

(New Rule)

DAR File No.: 35727
Filed: 01/26/2012 07:04:48 AM

RULE ANALYSIS

Purpose of the rule or reason for the change:

This rule defines the availability and terms of operations for the public to access state-managed compressed natural gas fueling locations. This rule meets the requirements of Section 63A-9-702.

Summary of the rule or change:

This rule defines the availability and terms of operations for the public to access state-managed compressed natural gas fueling locations. It sets fueling priority and limits, defines which state managed compressed natural gas fueling locations will be available to the public, and provides conditions upon which a private individual or entity's authorization to purchase compressed natural gas from a state managed fuel location can be revoked or suspended.

State statutory or constitutional authorization for this rule:

• Section 63A-9-702

Anticipated cost or savings to:

the state budget:

By providing public access to state-managed compressed natural gas fueling locations, the operational cost of these sites will be spread over a larger consumer base. This may result in a small savings to the state budget.

local governments:

By providing public access to state-managed compressed natural gas fueling locations, the operational cost of these sites will be spread over a larger consumer base. This may result in a small savings to the local governments that have partnered with the State Fuel Network for fuel management.

small businesses:

The cost of compressed natural gas is significantly less than that of gasoline or diesel. By allowing the public to access state-managed compressed natural gas fuel locations, small businesses can take advantage of the increased availability of this fuel and could see substantial savings. This rule is also designed to prevent state-managed fuel sites from competing with private sector fuel providers by closing access to state-managed sites if a private sector provider opens within a designated geographical range.

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

The cost of compressed natural gas is significantly less than that of gasoline or diesel. By allowing the public to access state-managed compressed natural gas fuel locations, persons other than small businesses can take advantage of the increased availability of this fuel and could see substantial savings.

Compliance costs for affected persons:

There are no compliance costs for affected persons. The state-managed compressed natural gas fueling locations are already equipped to accept credit cards, as well as fuel cards.

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

The cost of compressed natural gas is significantly less than that of gasoline or diesel. By allowing the public to access state-managed compressed natural gas fuel locations, businesses can take advantage of the increased availability of this fuel and could see substantial savings. This rule is also designed to prevent state managed fuel sites from competing with private sector fuel providers by closing access to state-managed sites if a private sector provider opens within a designated geographical range.

Kimberly Hood, Executive Director

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

Administrative Services
Fleet Operations
Room 4120 STATE OFFICE BLDG
450 N STATE ST
SALT LAKE CITY, UT 84114-1201

Direct questions regarding this rule to:

• Brian Fay at the above address, by phone at 801-538-3502, by FAX at 801-359-0759, 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:

03/16/2012

This rule may become effective on:

03/23/2012

Authorized by:

Sam Lee, Director

RULE TEXT

R27. Administrative Services, Fleet Operations.

R27-9. Dispensing Compressed Natural Gas to the Public.

R27-9-1. Authority.

This rule is established pursuant to subsections 63A-9-702(3) which requires the Department of Administrative Services, Division of Fleet Operations (DFO) to make rules establishing requirements for the sale of compressed natural gas (CNG) to the public.

 

R27-9-2. Definitions.

In addition to the terms defined in Section 63A-9-702, as used in Title 63A, Chapter 9, or these rules, the following terms are defined.

(1) "Public" means private individuals or entities as defined in 63A-9-702(1).

(2) "State site" means a fuel site owned and/or operated by the State Fuel Network which dispenses compressed natural gas.

(3) "Geographical compressed natural gas needs of a private individual or entity" means providing CNG fuel to the public beyond one road mile from a privately owned and operated fuel site that is able to meet the natural gas distribution needs of the public.

 

R27-9-3. Fuel Site Availability.

(1) The division will allow the public to purchase compressed natural gas from the state's fuel network if:

(a) there is no commercial fuel site that meets the geographical compressed natural gas distribution needs as defined in R27-9-2(3) and;

(b) there are no emergencies that warrant the holding of compressed natural gas in reserve for use by state or emergency vehicles as determined by the division.

 

R27-9-4. Terms of Operation.

(1) State owned CNG fuel sites are intended to be operational 24 hours a day, 7 days a week and will be available to the public with the exception of locally posted time restrictions.

(2) CNG dispensing priority shall be given to state and local agencies.

(3) Public customers shall only be able to purchase CNG fuel from the state site with an accepted credit card.

(4) Public customers will be limited to 25 GGE per vehicle per day unless otherwise authorized by the division.

(5) Violation of any term of operation may result in the revocation or suspension of a private individual or entity's authorization to purchase compressed natural gas from state sites.

 

R27-9-5. Abuse and Neglect of Fueling Equipment.

Damage to fuel equipment that results from the abuse or neglect by a public customer shall be the responsibility of that customer.

 

KEY: compressed natural gas, CNG, public fueling

Date of Enactment or Last Substantive Amendment: 2012

Authorizing, and Implemented or Interpreted Law: 63A-9-702(3)

 

---