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]

Re: Yes! Nice compromise reached on Utah House Bill 106

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]

Re: Yes! Nice compromise reached on Utah House Bill 106

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]

Re: Yes! Nice compromise reached on Utah House Bill 106

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

https://www.cngutah.com

[John Mitton]

Re: Yes! Nice compromise reached on Utah House Bill 106

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]

Re: Yes! Nice compromise reached on Utah House Bill 106

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]

Re: Yes! Nice compromise reached on Utah House Bill 106

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]

Re: Yes! Nice compromise reached on Utah House Bill 106

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]

Re: Yes! Nice compromise reached on Utah House Bill 106

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]

Re: Yes! Nice compromise reached on Utah House Bill 106

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!).

[lshuster]

Your Immediate Action Will Help

I'm re-posting a personal e-mail I sent out earlier today (Sunday):
(Sorry, if you've already seen it -- But other cngchaters might not have)
================================================== ====
Hello Fellow Concerned Citizens for Clean Air in Utah!

We are writing to you as both our friends and concerned citizens. Clean Air along the Wasatch Front is something we all want. It's sad to experience yet another inversion day. Please take a minute or two to consider helping a very worthy cause.

Here's why we feel you should CALL your Utah State Senator and voice your SUPPORT:

HB 106 , Clean Air & Efficient Vehicle Tax Incentives:
Link to full details and status here: << http://www.le.state.ut.us/~2008/htmd...htm/HB0106.htm >>

Quick action is needed on H.B. 106, Clean Air and Efficient Vehicles Tax Incentives. Agreement has been reached on an amended bill, and now is the time to help get it passed out of Committee so it can move to the full Senate.

Please e-mail members of the Senate Revenue and Taxation Committee THIS Sunday or Monday, or make phone calls TOMORROW (Monday). Use the PRESIDENT'S DAY break to express your concerns. The Utah Senate main telephone number (801) 538-1035

Not sure who to call? Lookup your Senator/District by your address.

This important bill addresses our largest source of air pollution, vehicles. It will help us get cleaner cars on the road, replacing higher emission vehicles. HB 106 simplifies the clean vehicle tax credit with high-performance-based emission & fuel economy performance standards. It maintains the existing credits for conversion of vehicles to run on clean fuels and still includes incentives for qualifying used alternative fuel vehicles. This bill has been significantly modified and improved since it passed the House (see detailed note from HB106's sponsor, Rep. Roz McGee below). The new sunset date on these tax incentives will get pushed out to 2013 instead of ending in 2010 with the current statute. If passed HB106 will become effective January 1, 2009. Perhaps most importantly, HB 106 will not burden or place extra burdens on the tax-payers of Utah.

Senate Revenue and Taxation Committee:

Wayne L. Niederhauser, Chair [email protected]
Brent H. Goodfellow [email protected]
Curtis S.Bramble [email protected]
Howard A. Stephenson [email protected]
John L. Valentine [email protected]
Jon J. Greiner [email protected]
Michael G. Waddoups [email protected]
Mike Dmitrich [email protected]

An IMPORTANT Message, from Rep. Roz McGee, sponsor of HB 106:

"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

· $2500 for all OEM CNG (new and used) up to a maximum of 35% of purchase price

· $2500 for vehicle conversions (to CNG, propane or electric)

· 8.5 cents (per gallon) State 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"

Governor Huntsman, former Salt Lake City Mayor Rock Anderson, and Salt Lake City Councilman JT Martin all lead by example. They've chosen to drive Clean Fuel - Clean Air, Natural Gas-powered personal vehicles. In closing, I urge you to pick up the phone and CALL your Utah State Senator and tell them why HB 106 Clean Air & Efficient Vehicle Tax Incentives will help clean air and help to reduce our addiction to foreign oil.


At this point your Senators are probably too busy to read 100's of e-mails they are getting daily. Therefore we urge you to pick up the phone and call today or tomorrow morning. Your lungs will thank you!

Respectfully,

Lee Shuster & Linda Smith
Concerned Clean Air Advocates - Hybrid and NGV owners
Yalecrest Neighborhood, Salt Lake City

[John Mitton]

Substitute bill passed Utah Senate Committee 2/19/08

Lee Shuster and I attended the Senate Committee meeting yesterday where the new substitute House Bill 106 was presented (download the PDF here). It was nice of our lawmakers to come in on a holiday to get this moving forward . Audio should be available on the web soon on this page:
http://le.utah.gov/~2008/htmdoc/hbillhtm/HB0106.htm

Representatives from the Dept. of Air Quality, Tax Commission, UDOT, and Utah Clean Energy Coalition testified. Everyone was in agreement that this substitute bill accomplishes what everyone is after - clean air and the encouragement of local fuel resource use.

It is interesting that the discussion largely centered on the new bill's removal of the annual $82 Special Fuels tax. The Tax Commission is happy to see it go, as it is so difficult to collect from all of us only those who want the HOV lane access buy the C plate, right? In fact, Commission Chair Pam Hendrickson testified that there are 1,257 C plates out there, while Questar estimates the number of natural gas vehicles in Utah to be somewhere between 4,000 and 5,000. Collecting 8.5 cents per GGE at the pump not only satisfies the Tax Commission but especially UDOT - who testified that they were opposed to the original bill for creating a new class of taxpayers who do not pay for highway maintenance, but are now happy with the substitute bill.

The committee passed HB106 First Substitute unanimously, with a caveat to fix some wording to ensure vehicles only take a credit once (the current language is not clear enough).

If any of you folks had already contacted your state Senator or Representative in opposition to HB106, you should contact them again in support of the Substitute bill. We should try to ensure this flies thru the Senate floor and thru the House for concurrence as soon as possible.

Here is my overall take on the situation:
1. The sunset date on our current incentives gets pushed back from 2010 to 2013. To me the additional three year window is a huge reason to get behind this new bill.

2. New OEM vehicle credits (the new Civic GX) go down from $3,000 to $2,500. Unfortunate.

3. Used CNG vehicle incentives (edited to add: bi-fuel included) also drop from a maximum of $3,000 down to $2,500 but at the same time we remove much of the abuse that caused the legislature to introduce HB106 (and HB122 last year). I really like the new 35% of the purchase price, capped at $2,500. This along with #2 above are the concessions which difference is essentially shifted to a $750 credit for new purchases of gasoline hybrids.

4. Alternative fuel conversions remain at 1/2 the incremental cost capped at $2,500. No changes here, this is great.

5. Road tax at the pump makes more sense than an annual HOV fee for those who chose to want it. In fact, out-of-state buses roll thru Utah almost every day, filling at 63 cents/gge without paying a red cent in road tax.

Anyway, thanks again everyone for your support.

[Bender]

Re: Yes! Nice compromise reached on Utah House Bill 106

Unless I'm reading this wrong, it sounds like bi-fuel owners (& future owners) are getting a royal hose job. Please tell me this isn't so.

[John Mitton]

Re: Yes! Nice compromise reached on Utah House Bill 106

Nope!
Used bi-fuel vehicles will also get 35% of the purchase price, capped at $2,500. New ones will too (if there ever are any more made). Bi-fuel conversions also get 1/2 the incremental cost capped at $2,500 (no change here).

The hose job on bi-fuel vehicles was House Bill 62 kicking them out of the HOV lane. It was inevitable due to Federal guidelines. The discussion is here:

http://cngchat.com/forum/showthread.php?t=984

[Bender]

Re: Yes! Nice compromise reached on Utah House Bill 106

(sigh of relief)
That's good to hear. Thanks for the clarification!