Utah Governor to Sign NGV Bill Later This Month

Utah Governor Gary Herbert will hold a special signing ceremony on April 19 to commemorate the passage of House Bill 70 (HB 70). The governor actually already signed HB 70 into law at the end of March.

As the market in Utah has grown so has concern about the use of non-certified and non-approved NGV storage systems. The quality of conversion installations also has raised some concerns. HB 70 seeks to address these concerns by requiring that customers installing conversions follow appropriate safety procedures. This requirement is enforced by requiring that owners of newly converted vehicles have them inspected and certified as complying with NFPA 52, the national fire protection code for compressed natural gas vehicles. The law also calls for subsequent inspections of converted vehicles every three years or 36,000 miles, whichever occurs first, in order to ensure that the storage cylinders comply with industry safety standards. The law instructs the state’s Division of Air Quality to develop the necessary emissions and safety inspection programs called for in HB 70.

The new law also requires that conversions must be certified by the U.S. EPA or California Air Resources Board in order to qualify for state tax incentives. The federal tax incentives similarly require compliance with EPA and CARB certification requirements. EPA officials have expressed some concerns about the new law because it appears to allow the use of conversion systems that have not been approved by EPA. A reading of the law suggests that most systems in fact will be certified to EPA standards since only those systems that meet EPA or CARB standards will qualify for the incentive funding. The law, however, leaves open the possibility that some systems that have not been certified by EPA or CARB would be approved if they are tested under the state’s emissions testing program and have demonstrated that they meet appropriate emission levels. This latter approach is what appears to concern EPA since its guidance and rules require that all aftermarket conversion systems – except those installed on very high mileage or older vehicles – must have received a certificate of conformity from EPA.

Utah has gained national attention as one of the nation’s largest markets for NGVs. The state enjoys the lowest prices in the country for CNG and has a strong network of fueling stations. The state currently provides a tax credit worth up to $2,500 for a new or converted NGV. This incentive is in addition to the federal tax credit currently provided for dedicated NGVs. NGVAmerica member Questar Gas has been instrumental in creating the market for NGVs and has demonstrated national leadership in our industry.

For a copy of HB 70, go to: http://le.utah.gov/~2010/bills/hbillenr/hb0070.htm.

For more information, please contact Jeff Clarke at jclarke@NGVAmerica.org; 202.824.7364.