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State and Federal Incentives and Laws

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Utah Incentives and Laws

Last Updated March 2008

Utah is the home of the Utah Clean Cities Coalition (www.utahcleancities.org). Coordinator contact information is listed in the Points of Contact section.

State Incentives

High Occupancy Vehicle (HOV) Lane Exemption

Vehicles with clean fuel license plates are authorized to travel in HOV lanes regardless of the number of occupants, to the extent authorized or permitted by federal law or federal regulation. The clean fuel plate must be purchased from a Utah Motor Vehicles office for a fee of $15. Until January 1, 2009, vehicle owners must also present a Clean Special Fuel Certificate. To be eligible for a clean fuel license plate, a vehicle must meet the definition of a clean fuel vehicle as defined in Utah Code 19-2-402. This incentive expires December 31, 2010. (Reference House Bill 106, 2008, and Utah Code 41-6a-702 and 63-55-241)

Point of Contact

Utah State Tax Commission Motor Vehicle Division
Phone (800) DMV-UTAH or (801) 297-7780
dmv@utah.gov
http://dmv.utah.gov/licensespecialplates.html

Alternative Fuel Vehicle (AFV) and Fueling Infrastructure Grants and Loans

The Utah Clean Fuels and Vehicle Technology Grant and Loan Program, funded through the Clean Fuels and Vehicle Technology Fund, provides grants to assist businesses and government entities in covering: 1) the cost of converting a vehicle to operate on clean fuels; 2) the incremental cost of purchasing an Original Equipment Manufacturer (OEM) clean fuel vehicle; and 3) the cost of retrofitting diesel vehicles with U.S. Environmental Protection Agency verified closed crankcase filtration devices, diesel oxidation catalysts, and/or diesel particulate filters. The Clean-Fuels Grant and Loan Program also provides loans for the cost of converting a vehicle to operate on a clean fuel, for the purchase of OEM clean fuel vehicle, and for the purchase of fueling equipment for public/private sector business and government vehicles. Finally, the program can provide grants and loans to serve as matching funds for federal and non-federal grants for the purpose of vehicles to operate on a clean fuel, purchasing OEM clean fuel vehicles, or retrofitting diesel vehicles. The Clean Fuels Grant and Loan Program is on hold pending final development of administrative rules. (Reference Utah Code 19-1-401 through 19-1-405)

Point of Contact

Mat Carlile
Energy Program Coordinator
Utah Department of Environmental Quality, Division of Air Quality
Phone (801) 536-4136
Fax (801) 536-0085
mcarlile@utah.gov

Clean Fuel Vehicle Tax Credit

The state provides an income tax credit for 50% of the incremental cost (up to $3,000 maximum) of a clean fuel vehicle built by an Original Equipment Manufacturer (OEM) and/or an income tax credit for 50% of the cost (up to $2,500 maximum) of converting the vehicle to operate on an alternative fuel for vehicles purchased after January 1, 2001, and registered in Utah. If not previously used, the tax credit may be claimed on used vehicles. Tax credits are available for businesses and individuals, may be carried forward up to five years, and are not available for hybrid electric vehicles. Documentation must be provided as described in the Utah state tax form TC-40V. Effective January 1, 2009, the credit amount for OEM vehicles will decrease to 35% of the incremental cost (up to $2,500) for compressed natural gas vehicles registered in Utah; other clean fuel vehicles may be eligible for a credit of up to $750. (Reference House Bill 106, 2008, Utah Code 59-7-605 and 59-10-127)

Point of Contact

Mat Carlile
Energy Program Coordinator
Utah Department of Environmental Quality, Division of Air Quality
Phone (801) 536-4136
Fax (801) 536-0085
mcarlile@utah.gov

Alternative Fuel Vehicle (AFV) Parking Incentive – Salt Lake City

Salt Lake City has a free metered parking program for “Green Vehicles”, which are vehicles that qualify for a Utah Clean Fuel license plate by meeting the definition of a clean fuel vehicle as defined by Utah Code 19-1-402, or that qualify for a Salt Lake City “Green Vehicle” parking permit by being a top performer in regards to city fuel economy or emissions. To park free at meters, vehicles must display a Utah Clean Fuel license plate, or “Green Vehicle” parking permit. Green Vehicle parking permits are available from the Salt Lake City Transportation Division for vehicles meeting at least one of the following criteria: 1) achieve a city fuel economy of at least 41 miles per gallon as determined by the U.S. Environmental Protection Agency (EPA), or 2) achieve an EPA Green Vehicle Guide pollution score of at least eight for Utah. (Reference Salt Lake City Code 12.56.205)

Point of Contact

Dan Bergenthal
Transportation Engineer
Salt Lake City Transportation Division
Phone (801) 535-6630
http://www.slcgov.com/transportation/parking/green.htm

State Laws and Regulations

Alternative Fuels Tax

Until January 1, 2009, owners of qualified alternative fuel vehicles that operate on propane, compressed natural gas, or electricity, are required to pay a clean special fuel tax by annually purchasing a Clean Special Fuel Certificate. This certificate may be obtained during vehicle registration or may be purchased at any time thereafter. The cost of this certificate is $82 annually for vehicles with a Gross Vehicle Weight Rating (GVWR) of up to 26,000 pounds (lbs.) and $126 annually for vehicles over 26,000 lbs. GVWR. Government entities that own or lease an alternative fuel vehicle are exempt from the clean special fuel tax. The Revenue and Tax Code provides for a reduction of motor and special fuel taxes if the motor or special fuel is already taxed by the Navajo Nation. Agreements with the Navajo Nation related to administration of motor and special fuels taxes have been authorized. (Reference House Bill 106, 2008, and Utah Code 59-13-201, 59-13-301, and 59-13-303 through 59-13-304)

Point of Contact

Utah State Tax Commission Motor Vehicle Division
Phone (800) DMV-UTAH or (801) 297-7780
dmv@utah.gov
http://dmv.utah.gov/licensespecialplates.html

Access to State Compressed Natural Gas (CNG) Fueling Stations

The Utah Department of Administrative Services, Division of Fleet Services may allow a private individual or entity to purchase CNG from the state’s fueling network if there is no commercial fuel site that meets the geographical CNG distribution needs of the individual or entity, and there is no emergency that requires CNG to be reserved for use by state or emergency vehicles. The Division of Fleet Services must set rules that designate state fueling network stations that may be made available to private individuals and entities, regulate station access and hours, and give state and local agencies priority to use state CNG fueling stations. (Reference House Bill 103, 2008, and Utah Code 63A-9-702)

Provision for Establishment of Alternative Fuel Use Mandate

The Utah Air Quality Board is authorized to mandate fleet vehicles to use clean fuels, if such a mandate is necessary in order to meet national air quality standards. (Reference Utah Code 19-2-105.3)

Low-Speed Vehicle Access to Roadways

Low-speed vehicles are allowed access to roadways with speeds limits of up to 25 miles per hour and are subject to comply with all federal and state motor vehicle regulations. However, low-speed vehicles are exempt from emission inspections. Until January 1, 2009, low-speed vehicles are also required to obtain annual Clean Special Fuel Tax Certificates. Golf carts are not considered low-speed vehicles. (Reference House Bill 106, 2008, and Utah Code 41-6a-102 and 41-6a-1508)

School Bus Idle Reduction Regulations

Beginning July 1, 2008, the State Board of Education is required to implement an idle reduction program for all school bus drivers in the state and adopt idle reduction standards. The Board of Education will consult with local school districts and the Utah Air Quality Board regarding program and standard development. (Reference House Bill 146, 2008, and Utah Code 41-6a-1308)

Idle Reduction Requirement – Salt Lake City

In order to reduce PM10 air pollution levels, the Salt Lake City-County Board of Health has adopted regulations governing a diesel vehicle emissions inspection and maintenance program. These regulations include idling restrictions for diesel vehicles. Specifically, an owner or operator of a diesel powered vehicle is not allowed to have the vehicle idle for more than 15 minutes. Vehicles may be exempt from these restrictions under the following conditions: a) supplying power to a refrigeration unit to cool trailer contents, b) providing heat or air conditioning to a sleeper unit of the vehicle, or c) emergency vehicles. However, exempt vehicles may not idle for more than 15 minutes if located within 500 feet of any residence. (Reference Salt Lake City-County Health Regulation 28)

Utilities/Private Incentives

Incentive for Airport Alternative Fuels Use

The Salt Lake City Department of Airports provides incentives to commercial ground transportation providers who purchase and operate clean fuel vehicles exclusively using approved clean fuels (as designated by State of Utah Statute 59-13-102). Eligible vehicles are those that operate on compressed natural gas, propane, hydrogen, electricity, or hybrid electric vehicles. The incentives are in the form of a credit against ground transportation fees. Incentive credit amounts are $2,500 for each Original Equipment Manufacturer vehicle or certified vehicle converted to operate on an alternative fuel. (Reference Salt Lake City Department of Airports Clean Fuel Policy Number 10.07.100)

Point of Contact

Ann-Marie Yoshida
Accountant
Salt Lake City Department of Airports
Phone (801) 531-3525
Fax (801) 575-2817
ann-marie.yoshida@slcgov.com

Natural Gas Technical Assistance

Questar Gas offers technical assistance to customers interested in converting their vehicles to operate on compressed natural gas. The company provides financial analysis and fleet consulting services for alternative fuel comparisons.

Point of Contact

Gordon Larsen
Natural Gas Vehicle Supervisor
Questar Gas
Phone (801) 324-5987
Fax (801) 324-5485
gordon.larsen@questar.com

Point of Contact

Jim Grambihler
Natural Gas Vehicle Operations
Questar Gas
Phone (801) 324-5119
Fax (801) 324-5485
jim.grambihler@questar.com

Points of Contact:

NAME/EMAIL AGENCY TITLE PHONE/FAX
Robin Erickson
Robin.Erickson@slcgov.com

Utah Clean Cities Coalition
Director
Phone: (801) 535-7736
Fax: (801) 535-6331

Ernie Oakes
ernie.oakes@go.doe.gov

U.S. Department of Energy, Golden Field Office
Project Manager
Phone: (303) 275-4817
Fax: (303) 275-4830

Mat Carlile
mcarlile@utah.gov

Utah Department of Environmental Quality, Division of Air Quality
Energy Program Coordinator
Phone: (801) 536-4136
Fax: (801) 536-0085

Ann-Marie Yoshida
ann-marie.yoshida@slcgov.com

Salt Lake City Department of Airports
Accountant
Phone: (801) 531-3525
Fax: (801) 575-2817

Dan Bergenthal

Salt Lake City Transportation Division
Transportation Engineer
Phone: (801) 535-6630
Fax:

Gordon Larsen
gordon.larsen@questar.com

Questar Gas
Natural Gas Vehicle Supervisor
Phone: (801) 324-5987
Fax: (801) 324-5485

Jim Grambihler
jim.grambihler@questar.com

Questar Gas
Natural Gas Vehicle Operations
Phone: (801) 324-5119
Fax: (801) 324-5485

Doug Anderson
dianderson@utah.gov

Utah Department of Transportation
Project Manger, Research
Phone: (801) 965-4377
Fax: (801) 965-4796


dmv@utah.gov

Utah State Tax Commission Motor Vehicle Division

Phone: (800) DMV-UTAH or (801) 297-7780
Fax:

Gordon Lancaster
gordon.lancaster@gsa.gov

U.S. General Services Administration
Transportation Operations Specialist
Phone: (303) 236-7599
Fax: (303) 236-7590