House of Representatives

HB 2560

air quality fund; control measures

Sponsors: Representatives Gullett, Huffman, Loredo,

O'Halleran, et al.

 

DPA

Committee on Environment

X

Committee on  Appropriations

 

Caucus and COW

 

Third Read

 

 

As Passed the House

 

HB 2560  continues the in lieu fee (that was scheduled to repeal pursuant to Laws 2001, chapter 371, effective 6/30/03), places the money in the air quality fund in DEQ and authorizes the money to be spent on a variety of air quality related measures, including voluntary vehicle repair, voluntary lawn equipment reduction, diesel vehicle low emissions grants and other programs.

 

Current Status

HB 2560 was amended in the Environment Committee.

 

History

Current ARS section 49-543 as amended by Laws 2001, chapter 324,  requires owners of vehicles that are five years old or less to either have their vehicle emission tested or pay an in lieu fee.  The in lieu fee is $25 in area A (biennial) or $9 in area B.  The cost of emission testing in area A ranges from $18.50 annually to $27.50 biennially (all 1981 and newer under 8501 pounds GVW are $27).  The cost of testing in area B is $11.75 annually for all vehicles. 

 

The in lieu fee in the Department of Commerce Energy Office currently covers two programs:  conversion of diesel vehicles grants and delivery system grants.  HB 2014 in the December 2001 special session modified the funding for those programs as follows:

Diesel vehicles:  removed $6.5 million in FY 03 (left $5.5 million in FY 02)

Delivery systems:  removed $1.125 million in FY 02 and $1.8 million in FY 03

 

Provisions

·          The in lieu fees will be deposited in the air quality fund in DEQ starting 7/1/03 instead of the Arizona clean air fund (which is repealed 6/30/03). 

·          In lieu monies can be used for Areas A (portions of Maricopa, Pinal and Yavapai) and B (portions of Pima) and for the following:

-         Air quality research, experiments, and programs to improve air quality, maintain or achieve attainment status, and reduce emissions of particulate matter, carbon monoxide, nitrogen dioxide and volatile organic compounds.

-         Determine the cause of visual air pollution in Maricopa of Pima counties.

-         Conducting and reporting the hazardous air pollutants (HAPs) research.

-         Developing and adopting rules in compliance with the HAPs program.

-         Developing public education programs to reduce emissions of ozone forming substances.

·          Monies in the fund are exempt from the provisions of section 35-190 relating to lapsing of appropriations. 

·          In lieu monies can also be used for the following air quality control measure programs (maximum percentages).

-         The existing voluntary lawn and garden equipment emissions reduction programs (5%).

-         The existing voluntary vehicle repair and retrofit program (20%).

-         Diesel vehicle low emissions incentive grant program (30%).

-         Voluntary accelerated purchase of tier 2 and tier 3 equipment (30%).

-         Grants to local governments for the purchase of particulate efficient street sweepers (5%).

-         Other measures that have been evaluated by the department for an assessment of their health and environmental impacts. 

-         Cost of administering the programs (3%).

·          Monies can be carried over to the next fiscal year if the maximum amount is not expended, and may be used on any of the programs specified above.

 

Diesel vehicle low emissions incentive grants

·          Establishes a new program for incentive grants for diesel vehicles at least 19,500 GVWR:

-         To operate on alternative fuel (LPG, CNG, LNG, electricity, etc.) or clean burning fuel (A-55 or biodiesel).

-         Ultra low sulfur diesel (maximum 15 parts per million sulfur) that is used in an engine with oxidation catalysts and particulate filters.

-         Powered by an engine that meets or exceeds an emissions standard for diesel particulate matter of 0.05 grams per brake horsepower hour.

·          Criteria for a vehicle to be awarded an incentive grant includes financial responsibility requirements and a requirement that the vehicle be registered in the state for at least three years and will be operated more than 50% of the time in Area A or Area B.

·          The program shall provide for real and quantifiable emissions reductions.

·          This program is repealed on June 30, 2005.

 

 

The bill was amended in the Environment Committee as follows:

·          Monies in the fund are exempt from the provision relating to the lapsing of appropriations, and designates interest earned on the monies are credited towards the fund.

·          The use of the $1.50 monies is broadened to include oxides of nitrogen (rather than just nitrogen dioxide) and hazardous air pollutants throughout the state;  these monies can also be used to monitor visible air pollution and develop and implement programs to reduce emissions of pollutants that contribute to the problem;  outdated language is removed.

·          The in-lieu fee distribution is changed to:

-         3%  to DEQ for costs of administration and evaluating measures.

-         5%  to the Voluntary lawn and garden equipment emission reduction program.

-         15% to the V2R2 program.

-         30%  to the Diesel vehicle low emissions incentive grant program

-         25%  for  the voluntary accelerated purchase of Tier 2 and Tier 3 equipment.

-         25%   for grants to counties for air pollution control as follows:

-         45%  to Maricopa.

-         36%  to Pima.

-         9%  to Pinal.

-         10% will be disbursed by DEQ to any of the three counties.

-         If monies allocated to the voluntary lawn and garden equipment, V2R2, diesel vehicle low emissions, and voluntary accelerated purchase programs have not been used in any year:

-         75% can be used for any of the programs.

-         25% must be applied to county activities.

·          Vehicles receiving diesel vehicle low emissions incentive grants must meet one of the following:

-         EPA voluntary diesel retrofit program.

-         EPA verification protocol.

-         California Air Resources Board diesel emission control strategy verification procedure.

-         Sections 43100 and 43102 of the heath and safety code of the state of California (alternative fuel conversions).

-         Actual emissions testing performed on the vehicle.

·           The diesel program is repealed the later of June 30, 2005 or one year before the beginning production date for the standard for diesel fuel with a maximum sulfur limit of 15 parts per million (currently June 1, 2006).

·          Amends ARS sections 11-876, 49-542.06, and section 19 from chapter 371, Laws 2001 to conform to the MVD definition of “declared gross weight” in ARS section 28-5431.

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·          45th Legislature                 

·          Second Regular Session      3          March 20, 2002

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