diesel vehicles; fuels
program continuation
SB 1249 removes Arizona Clean Air Fund (ACAF) funding for a variety of programs and terminates the program 6/30/06; the in lieu also terminates 6/30/06. The remaining programs in the ACAF are: diesel conversion (with revisions), statewide fueling stations for CNG or LPG and a $2 million transfer to reduce the vehicle emissions inspections (VEI) fees in Area A and B.
The Arizona Clean Air Fund (ACAF) is comprised primarily of monies generated from in lieu emissions testing fees. Currently, owners of vehicles that are 5 years old or newer have the option of either completing the required emissions test or paying an “in-lieu” fee. In FY 2000 the ACAF received $10.6 million of revenue from in-lieu fees. The JLBC Staff estimates that this amount will grow to $11.7 million in FY 2001. This growth is the result of a higher in-lieu fees charged between July and December 2000. During those months, the Maricopa County fee increased from $25 to $31.50. The growth is also a result of an estimated 2% increase in vehicle population. In FY 2002 and FY 2003, the JLBC Staff estimates that revenues will remain at approximately $11.7 million annually.
· Fifty percent of monies deposited in the ACAF for FY 2000-2001 (current law is through FY 2009-2010) are to be used to provide grants to persons who entered into a contract or signed a purchase order for the purchase, conversion, or retrofit prior to October 20, 2000. When the grant monies are depleted, affidavits shall be issued for a tax credit. (ARS 41-1516 C., D. and G.)
2. The vehicle is not a recreational vehicle defined in title 28 (more than 26,000 gross vehicle weight rating and that is designed and exclusively used for private pleasure, including vehicles commonly called motor homes, pickup trucks with campers, travel trailers, boat trailers and horse trailers used exclusively to transport personal possessions or persons for noncommercial purposes).
3. The vehicle is registered in this state.
4. The grant recipient signs a statement that it is their intent that the vehicle will remain registered in Arizona for at least 3 years from the date the vehicle is registered as an AFV. Additionally, the person must plan to operate the vehicle more than fifty percent of the time in Area A or B.
5. No income tax credit can be claimed for the vehicle.
6. The
vehicle is subject to financial responsibility
requirements under ARS 28-4032.
·
Any person who violates the
requirements of the diesel grant program is subject to a civil penalty that
equals the amount of the grant received plus $1,000.
·
The grant amount is changed
from the greater of 30% of the original manufacturer's base retail price or
$30,000 to the lesser of the cost of conversion or $30,000; the aggregate total
of grants shall not exceed $8.5 million (current law is $6.5 million).
·
Grants may be awarded for the
conversion of school and municipal buses without meeting the financial
responsibility requirements.
·
By September 1 of each year,
an expenditure report is to be submitted to the legislature on the status of
the ACAF.
Statewide Refueling Stations
(41-1516 E)
·
The date for grants is moved
back from 1/1/07 to 6/30/06
·
The stations may supply LPG
of CNG (currently limited to CNG).