Yes! Nice compromise reached on Utah House Bill 106

[John Mitton]

Gang,

Thank you, thank you for your efforts in our grass-roots awakening of the legislature to the issues surrounding House Bill 106. Again, in a nutshell this bill would have eliminated our used CNG vehicle tax credits, and dropped the new vehicle credit from $3,000 to $1,000 in order to provide $1,000 in credits for new hybrids.

I am pleased to report that the bill’s sponsor Rep. Roz McGee has been very cooperative with our CNG owner community, Questar, the Utah Clean Cities Coalition and other stakeholders in working out a compromise bill to present to the Senate, for which I ask your support. The following is her message to our community.

Dear John,
After a series of consultations with key stakeholders, a great deal of analysis, and also concessions on the part of all interested parties, I have asked to have HB106, 1st Sub, Clean Air and Efficient Vehicle Tax Incentives,” drafted. A new fiscal note should follow shortly. The substitute bill will include these agreed upon elements:

• $750 tax incentive on vehicles meeting the SmartWay Elite standards
• 35% of purchase price for all OEM CNG (new and used) up to a maximum of $2500
• $2500 for vehicle conversions (to CNG, propane or electric)
• 8.5 cents alternative fuel tax to be collected at the CNG pump

The alternative fuel tax replaces the clean special fuel tax certificate which is not easily enforced. The alternative fuel tax also enhances the revenue stream for the UDOT and is used for road and highway maintenance.

HB106, 1st Sub, retains the primary purpose of HB106: promoting clean fuel and fuel efficient technologies.

Rep. Roz McGee, Sponsor
HB106

2/15/08

[John Mitton]

Oh, and I forgot to mention in my e-mail blast and post above:

1. The new sunset date on these incentives will get pushed out to 2013 instead of ending in 2010 with the current statute.

2. The bill would become effective January 1, 2009.

[Luke]

I like how this proposal simplifies the tax credit for used vehicles. A percentage of purchase price makes more sense than a percentage of original incremental cost and should make accounting easier.

A few questions/comments:
I assume that the credit could still be taken once per vehicle in the state of Utah, is this true?
Am I safe to assume that no credit will be granted to used propane, etc. vehicles.
Under this proposal, how much extra would the clean plate (vs standard plate) on an annual basis?
What are the SmartWay Elite standards?
John, would you print new bumper stickers with updated price?

[CNG Utah]

John,
Thank you so much for all your hard work in helping to rectify the errors in these bills. You helped us all become aware of them and spearheaded the effort to contact our representatives. I've contacted my representative and will continue to do so concerning HB103 and HB62.

Personally I believe that bi-fuel vehicles should be allowed to get the "C" plate because I don't know of anyone that runs their bi-fuel on gasoline while in the state.

Thanks again for all your effort and for giving us CNG enthusiasts a great meeting place at cngchat.com

-Derek
www.cngutah.com

[John Mitton]

Hi Luke,

I assume that the credit could still be taken once per vehicle in the state of Utah, is this true?
Correct

Am I safe to assume that no credit will be granted to used propane, etc. vehicles.
Propane and electric vehicles would still get the $2,500 conversion credit but no OEM credit (I don't know of any OEMs making these, except maybe the TeslaMotors $100,000 sports car )

Under this proposal, how much extra would the clean plate (vs standard plate) on an annual basis?
We currently pay two fees:
1. The $82 "special fuel tax"
2. A $___ ? "special group license plate" fee - just like many other special plates out there for Boy Scouts, vintage vehicles, etc.

edited to add: There is no special annual fee for the C plate, just a $5 fee when it is first made. So the C plate will be no charge for us after Jan 2009!

Maybe someone can chime in on what #2 is above, but anyway, #1 will go away.

What are the SmartWay Elite standards?
Here is a good jumping-off point:
http://www.epa.gov/smartway/consumer/vehicles.htm

John, would you print new bumper stickers with updated price?
The road 8.5 cent road tax would also kick in January 1st of next year so I went ahead and ordered another batch of 63 cent stickers. We should have a celebration bash somewhere when HB106 is signed into law and I will pass them out then

[Blaine]

This bill will help us to want to get a cng vehicle. I am in the process of converting most of my vehicles to cng for many reasons. I commute to work and can barely afford to make enough to pay for regular gas. Plus it will help the air if more people will convert. Plus I will not hav eot drive my 'death trap" of a car as my kids call it, ( geo metro). I can drive a little bit bigger car and be safer. Don't get me wrong, but my 1993 geo is great for mileage but could be better in the comfort areas and safety. When I get my Focus and Van converted I will be able to have an increase in disposable income, because its not going to the big oil companies. This bill will give me the incentives to get the conversions done. Thanks. Blaine Fackrell

[Luke]

What are the SmartWay Elite standards?
Here is a good jumping-off point:
http://www.epa.gov/smartway/consumer/vehicles.htm

http://www.epa.gov/greenvehicles/Det...hicle_ID=62193 shows that the Civic GX meets SmartWay Elite criteria.

Does this mean, under the proposed law, that the state tax incentives for the purchase of a new Civic GX could be up to $3250 ($2500 + $750)?

[lshuster]

The $750 is only for hybrid-electric vehicles.

The $2500 is for new Natural Gas vehicles, at this point only the Honda Civic GX is qualified.

If (or when) an OEM manufacturer re-introduces a new NGV, then that vehicle would also qualify for $2500. So in effect the NEW GX'es gave up $500 after this goes into effect 01 Jan 2009. But that's a lot better than the previously proposed $1000.

Conversions remain unchanged at $2500.

/Lee Shuster/

[chad.nuesmeyer]

I am getting ready to buy a new car and thinking heavily about converting it to CNG. The updated legislation creates incentives for me to go through with the conversion.

I would love to chat with people who have gone through conversion. I want to convert a dodge magnum, just am a little timid of the unknown. I would love to chat with anybody willing about conversions...ngvdriver (at) gmail (dot) com.

[dovh49]

Too bad on the OEM new electric vehicle...they will be selling for ~$45000 by the end of this year from Phoenix Motor Cars (among a huge host of BEVs manufacturers)...granted I would just do a conversion anyways if I did do a BEV. These cars will be able to go >80 mph and up to 120 mile range. And if there were fill stations installed would be able to fill in 10 minutes (at home it takes 6 hours, just like CNG!).