The 2005 Utah legislative session saw passage of a bill that extended through 2010 previous tax credits, relief of certain tax surcharges, and HOV lane status for AFVs. 2006 saw further legislation to modify Utah's Clean Fuels Conversion Program Act and the Fund for loans and grants, expanding the items that qualify, and removal of natural gas from certain sales tax requirements. 2008 saw the renewal of sales tax on compressed natural gas in the state, and a reduction in the tax credit available, and changes to the clean fuel license plate requirements. 2009 legislation saw changes to Utah's ability to accept a cost rate of a natural gas vehicle that is lower than the cost of service if it is in the interest of the state. 2009 also saw a proclamation from Utah's Legislature urging the EPA to revise and streamline the certification process for small NGV manufacturers and engine conversion companies, and also to urge the EPA to institute a natural gas vehicle research, development, and demonstration funding program. 2010 legislation included a tightening of inspection and certification requirements for converted CNG vehicles. 2011 saw the passage of a "Clean Fuel Vehicle Decal" law that required AFV vehicles to purchase a decal in order to use HOV lanes. 2011 saw Utah reducing the AFV tax credit on all but CNG vehicles which remained unchanged. The Utah Public Service Commission may also allow a gas corporation to set a natural gas vehicle fuel rate that is less than full cost of service if it is reasonable and in the interest of the public. If the Commission approves such a request, the remaining costs may be spread to other customers of the gas corporation.

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Utah Motor Fuel Taxation Website

CNG - 12.5 ¢ / Gasoline Gallon Equivalent

LNG - 12.5 ¢ / Gallon Equivalent

Gasoline - 29.4 ¢ / Gallon

Diesel - 29.4 ¢ / Gallon

State and local Governments and Indian tribes can be exempt from motor fuel taxes - Reference

IFTA - IFTA taxes are applied to vehicles of 3+ axles, or weighing more than 26,000 pounds. IFTA tax tables can be found here.

2016 Session - Proposed Legislation

HB-5

FY 2017 appropriations bill. Includes $2 million line for alternative fuel facilities within the Dept. of Environmental Quality budget. Reference - HB5 Bill History, Reference - HB5 Bill Text

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2015 Session - Proposed Legislation

HJR-26

Resolution calls for study of issues including the impact of tax credits and grants that encourage use of alternative fuel vehicles. Reference - HJR26 Bill History, Reference - HJR26 Bill Text

HB-15

Relates to clean fuel amendments and rebates; creates the Conversion to Alternative Fuel Grant Program; defines terms; authorizes the Department of Environmental Quality to make grants from the Clean Fuels and Vehicle Technology Fund to a person who installs conversion equipment on a motor vehicle; describes the process for a person to apply for a grant to install conversion equipment on a motor vehicle; describes the amount of grant money the director of the Division of Air Quality may award. Reference - HB15 Bill History, Reference - HB15 Bill Text Passed House and Senate - 3/12/15; Signed by Gov. 3/31/2015

HB-49

Appears to be same as HB 41 introduced in 2014. Provides grants to replace school buses and to create infrastructure for alternative fuel vehicles; allows the State Board of Education to award a grant to a school district or charter school to: replace a school bus manufactured before 2002 with a new school bus that uses CNG, propane, or clean diesel fuel; installs an alternative fuel fueling station for a school bus that uses alternative fuel and that may be accessed by a governmental entity or the public to fuel an alternative fuel vehicle. Appropriates $20 million to support program: $13 million for bus purchases, and $7 million for fueling infrastructure and bus shop upgrades. Subst. version 3/5/15 includes requirements for selling older buses and specifies that $500K goes to Charter schools and $19.5 million to other schools; does not appear to set aside specific amount for fueling infrastructure. Subst. version 3/5/15 includes requirements for selling older buses and specifies that $500K goes to Charter schools and $19.5 million to other schools; does not appear to set aside specific amount for fueling infrastructure. Reference - HB49 Bill History, Reference - HB49 Bill Text Passed House 2/13/2015; Sub version 3/5/2015; enacting clause struck 3/12/15

HB-69

Requires government fleets to ensure that by August 30, 2019, that 50% of newly acquired vehicles are Bin 2 emission certified or operate on alternative fuel. The Division of Fleet Services must satisfy this requirement no later than Aug. 30, 2018. Reference - HB69 Bill History, Reference - HB69 Bill Text

HB-95

Summary note indicates it extends the tax credit for certain vehicles but it is not clear what is being changed if anything. Reference - HB95 Bill History, Reference - HB95 Bill Text

HB-251

Amends the Interlocal Entity for AFVs and Facilities. A lot of changes but does not appear to affect provisions specifically related to alternative fuels. Reference - HB251 Bill History, Reference - HB251 Bill Text 2/26/15 passed House; passed Senate w/ amendments - to concurrence calendar; Enacted 3/27/2015

HB-271

Amends motor fuel tax so that CNG is taxed per GGE of 5.66 lbs. and LNG is taxed per DGE of 6.06 pounds (also extends coverage to hydrogen) and adjusts the tax rates for CNG and LNG so that they pay the full rate applied to gasoline and diesel fuel (24.5 cents) instead of reduced rate in place today. Takes effect July 1, 2015. Reference - HB271 Bill History, Reference - HB271 Bill Text

HB-362

Amends the motor fuel tax so that it is based on percentage of price (14%) in the future. Also authorizes local sales and use tax of 0.25% on fuel sales. The CNG and LNG rates under existing law are to increase proportionately with future increases in gasoline and diesel taxes. Amended 31/12/15 includes DGE tax for LNG and includes tax increases set out in HR 406. Language says that if both HB 406 and HB 362 are enacted, to use DGE for LNG tax in HB 406. Rates increase from 8.5 cent to 10.5 to 16.5 cent over time. Reference - HB362 Bill History, Reference - HB362 Bill Text 3/12/15 - Conference Report Agreed to by House and Senate; Approved by Governor 3/27/15

HB-406

Creates new tax credit for Class 7 & 8 CNG or LNG trucks. The credit would be worth: $25K in 2015, 2016, 2017; $20K in 2018; $18K in 2019; and $15K in 2020. Truck operator would have to certify that 50% of miles are traveled in Utah. The amount of the credits awarded may not exceed $2 million in any year. Establishes procedures for applying for tax credits. Amends the motor fuel tax so that the current reduced rate of 8.5 cent for CNG and LNG is gradually increased as follows: 35% of the gasoline rate 7/1/2015 - 6/30/17; 55% of gasoline rate 7/1/17 - 6/30/19; 75% of the gasoline rate 7/1/19 - 6/30/21; and 100% of gasoline rate afterwards. Both CNG and LNG rates are set per GGE. Reference - HB406 Bill History, Reference - HB406 Bill Text Passed House and Senate as of 3/12/15; amended since introduction; Signed by Governor 4/1/2015

HB-410

Amends the current energy efficiency agreements to now be referred to as performance efficiency agreements. Adds alternative fuel vehicles and infrastructure to list of projects that can be included. Reference - HB410 Bill History, Reference - HB410 Bill Text Enrolled 3/19/15; Enacted 3/25/15

HB-456

Sales and use tax and motor fuel tax changes. Need to determine how CNG and LNG are impacted. The current tax rates are set at 8.5 cents and then increases based on increase to other fuels. This bill strikes the language calling for future increases. It also reduces the gasoline tax to a half cent down from 24.5 cents but leaves in place the special fuel tax or diesel tax of 24.5 cent. Reference - HB456 Bill History, Reference - HB456 Bill Text

SB-69

Requires government fleets to ensure that by August 30, 2019, that 50% of newly acquired vehicles are Bin 2 emission certified or operate on alternative fuel. The Division of Fleet Services must satisfy this requirement no later than Aug. 30, 2018. Reference - SB69 Bill History, Reference - SB69 Bill Text Passed Senate 3/2/15; enacting clause struck

SB-160

Amends the excise tax to increase it from 24.5 cents to 34.5 cents. Undyed diesel fuel would pay 29.5 cents. CNG and LNG also would pay 29.5 cents per gallon equivalent; does not set specific GGE or DGE levels. Subst. version includes a phase-in of the increase on gasoline and diesel fuel taxes starting at 30.5 cents and increasing to 33.5 cent in 2019. the CNG and LNG rates would be increased from current 8.5 cent level to 17 cents effective July 1, 2015. Subst. version 3/9/15 makes following changes: CNG and LNG tax - 10.5 cent to 16.5 cent over time. Reference - SB160 Bill History, Reference - SB160 Bill Text

SB-231

Establishes specific registration fees for different types of vehicles below 12,000 lbs. GVWR. Regular vehicles pay $53 but NGVs would pay $103 and so would hybrids. Electric vehicles would pay $113. Also starting in 2016 the fuel tax on CNG and LNG would increase to 16 cents up from 8.5 cent. 3/6/15 amendment adjusts NGV fees downward so that they are consistent with other vehicle types. Also the excise tax increase on CNG and LNG is deleted. Reference - SB231 Bill History, Reference - SB231 Bill Text Amended 3/6/15; Failed to pass House 3/11/15

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2014 Session - Proposed Legislation

HB-41

Provides grants to replace school buses and to create infrastructure for alternative fuel vehicles; allows the State Board of Education to award a grant to a school district or charter school to: replace a school bus manufactured before 2002 with a new school bus that uses CNG, propane, or clean diesel fuel; installs an alternative fuel fueling station for a school bus that uses alternative fuel and that may be accessed by a governmental entity or the public to fuel an alternative fuel vehicle. Appropriates $20 million to support program: $13 million for bus purchases, and $7 million for fueling infrastructure and bus shop upgrades. Reference - HB41 Bill History, Reference - HB41 Bill Text Reported favorably with amendments 2/13/2014; passed H 2/24/2014; enacting clause struck 3/13/2014

HB-61

Modifies the Clean Fuels and Vehicle Technology Program Act, which is a loan and grant program to also include a retrofit and replacement program for on-road and non-road vehicles and equipment. Adds electric hybrid vehicles to the existing program. The program currently provides grants of up to 50% for new alternative fuel vehicles or conversion, as well as grants for full cost of fueling stations. The new retrofit and replacement program includes heavy-duty on-road vehicles and off-road equipment with engines including stationary generators and pumps, locomotives, and other equipment approved by the Board. Reference - HB61 Bill History, Reference - HB61 Bill Text Signed by Governor 4/1/2014

HB-74

Amends the tax credits for alternative fuel vehicles in order to increase the electric vehicle credit and add PHEV credit: the EV credits goes from $605 to $2,500 or 35% of the purchase price, whichever is less. The PHEV credit is $1,250. The credit values for NGVs remain unchanged but the bill now includes leased vehicles under a new formula that takes into account the value at the end of the lease. The credit appears to go to the leasee. The changes would take effect Jan. 1, 2015 and the credits are only good for 2015. Reference - HB74 Bill History, Reference - HB74 Bill Text Signed by Governor 3/29/2014

HB-240

This provision increases the tax on motor fuel and special fuel over a five year period and also on CNG and LNG. The increase would be 7.5 cents over the current rate of 24.5 cents. The tax on CNG and LNG would be increased from 8.5 cents to 11 cents over this same time period. It also includes definition of gasoline gallon equivalent (GGE) for CNG and uses 5.66 lbs. The tax on LNG is per GGE but the statute does not define GGE for LNG.Reference - HB240 Bill History, Reference - HB240 Bill Text Enacting clause struck 3/13/2014

HB-266

Increases the tax on motor fuels starting July 1, 2014 and each year thereafter by multiplying the rate in effect by the increase in the Consumer Price Index. The rate can not decline and cannot increase by more than 5% per year. Includes GGE definition for CNG using 5.66 lbs. Drops the current language that imposes tax on LNG based on gasoline gallon equivalent; new language would simply say per gallon. NG rate increases would follow same approach as other motor fuels but have lower starting point (e.g., 8.5 cents). Bill indicates that if both HB 266 and HB 240 are enacted that certain provisions in HB 240 shall take precedent: appears to mean they will follow initial increase in HB 240 and then have annual increases following approach set out in HB 266. Reference - HB266 Bill History, Reference - HB266 Bill Text Enacting clause struck 3/13/2014

SB-60

Amends the motor fuel tax so that a portion of the tax would be based on average retail price of gasoline. This would affect all motor fuels including natural gas. Reference - SB60 Bill History, Reference - SB60 Bill Text

SB-99

Requires state Division of Fleet Operations to ensure that at least 50% of the state fleet vehicles are powered by natural gas by July 1, 2018. This appears to require 50% of the fleet to be natural gas powered not simply 50% of the vehicles purchased or leased to be natural gas. Substituted version dated 2/5/2014 replaces natural gas with vehicles that are certified to Bin 2 or better. Reference - SB99 Bill History, Reference - SB99 Bill Text Conf. Rprt adopted by House 2/28/2014; Senate agrees to rprt 3/3/2014; Enacted 3/29/2014

SB-139

Increases registration fees for certain vehicles. Natural gas vehicles would pay much hire fee than before. The fee would increase from $133 instead of $43 previously charged. EV and HEV fees also would go up to $138, and $163 respectively. These are fees for vehicles of 12,000 lbs or less.Reference - SB139 Bill History, Reference - SB139 Bill Text Passed Senate 2/28/2014; passed House 3/12/2014 to Senate for concurrence

SB-243

Amends the Interlocal Entities provision to expand direction for this program and to allow the collection by utilities of a fee of $1 per customer to be used in part to fund the alternative fuel activities. Reference - SB243 Bill History, Reference - SB243 Bill Text

SJR-20

Joint Resolution calls for the study of various issues including changing tax credits for CNG and electric vehicles into a rebate in order to assess how this could be done and how it would be funded. Reference - SJR20 Bill History, Reference - SJR20 Bill Text Passed Senate 3/12/2014; passed House 3/13/2014

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2013 Session - Proposed Legislation

HB-23

Authorizes the Dept. of Transportation to limit the number of clean fuel decals for purposes of controlling HOV access and comply with federal law. 1/30/2013 amendment would allow state to increase number of permits if certain conditions are met. Reference HB-23, 2013 Passed House 2/4/2013; passed Senate 2/14/2013; recalled by the Senate; passed again on 2/20/2013; Signed by Governor 3/28/2013

HB-96

Amends the tax credits for clean burning vehicles. Changes include: extending date for credits to Dec. 31, 2018 (current expires 12/31/13) and makes other changes retroactive for 2013; increases fuel efficiency requirements for gasoline & diesel vehicle which have $605 credit; NGV credits appear largely unchanged (certified or emission tested vehicles qualify) and credit value is $2,500 or 35% of purchase cost or 50% of conversion cost. Reference HB-96, 2013Enacted 3/27/2013

HB-97

Amends the tax credits for clean burning vehicles. Extends time period until 2018; not retroactive for 2013 like HB 97. Also increases the fuel efficiency requirements for gasoline and diesel vehicles, more stringent than HB 97, but does increase value of credit from $605 to $1,500. NGVs would not qualify for a credit worth $3,000 (up from $2,500) for new purchases, or 50% of the cost or $2,500 for conversions. New PHEVs also would qualify for $3,000 tax credit. The change for individuals versus businesses appears to be missing the dollar amount for NGVs and also PHEVs. Reference HB-97, 2013

SB-2

Appropriations bill. Extends the $0.20 incentive rebate for alternative fuels. Reference - SB2 Bill History, Reference - SB2 Bill Text Passed House and Senate as of 3/12/2013; Signed by Governor 4/1/2013

SB-275

Authorizes creation of an interlocal entity to facilitate the conversion to alternative fuel vehicles or development of facilities for alternative fuel vehicles. The Public Utility Commission also is directed to allow certain utility expenditures and rate charges related to alternative fuel stations sol long as such expenditures do not exceed $5 million per calendar year and other criteria are met. These expenditures are to be deemed in the pubic interest as long as the annual revenues associated with fueling stations is at least 50% of the annual revenue required to operate such station, among other things. Reference - SB275 Bill History, Reference - SB275 Bill Text Conference agreement accepted by H and S; to Governor 3/21/2013; Conference agreement accepted; signed by Governor 3/28/2013