2007 -- H 5574 | |
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LC01556 | |
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STATE OF RHODE ISLAND | |
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IN GENERAL ASSEMBLY | |
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JANUARY SESSION, A.D. 2007 | |
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____________ | |
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A N A C T | |
RELATING TO MOTOR AND OTHER VEHICLES -- DIESEL EMISSIONS RESOLUTION | |
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     Introduced By: Representatives Ginaitt, Segal, Walsh, Naughton, and Sullivan | |
     Date Introduced: February 28, 2007 | |
     Referred To: House Environment and Natural Resources | |
It is enacted by the General Assembly as follows: | |
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     SECTION 1. Short title and purpose. -- This act shall be known as and may be cited as |
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“The Diesel Emissions Reduction Act of 2008.” The general purposes of this act are: |
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     (1) minimize human exposure to and health risks from diesel pollution between the |
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calendar years 2008 and 2015; |
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     (2) reduce health costs, missed school days, lost worker productivity and premature |
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mortality linked to exposure to diesel particulate matter (PM), nitrogen oxides (NOx) and other |
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diesel pollutants; |
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     (3) achieve maximum feasible diesel particulate matter emissions reductions and |
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diminished human exposure that is additional to the impact of federal diesel emission rules which |
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focus mostly on new engines; and |
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     (4) advance the state's climate protection goals and climate action plan by reducing the |
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amount of black carbon pollution emitted by diesels. |
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     SECTION 2. Title 31 of the General Laws entitled "MOTOR AND OTHER |
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VEHICLES" is hereby amended by adding thereto the following chapter: |
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     CHAPTER 47.3 |
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THE DIESEL EMISSIONS REDUCTION ACT |
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     31-47.3-1. Legislative findings. -- (a) Diesel emissions, due in large part to their high |
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concentrations of particulate matter are associated with severe and multiple health risks to the |
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citizens of Rhode Island, including increased risk of cancer, decreased lung function, aggravated |
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asthma, heart attacks and premature death. |
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     (b) Diesel exhaust also contains nitrogen oxides which contribute to the formation of |
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ground-level ozone, or smog. Although less damaging to health that diesel particulate matter, |
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ozone may also cause a variety of respiratory problems, including aggravated asthma, decreases |
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in lung capacity and increased susceptibility to respiratory illnesses. Rhode Island continues to be |
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classified as a "serious-nonattainment area" for ozone. |
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     (c) Diesel pollution has been positively linked to increases in the aggravation of asthma. |
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Reducing diesel pollution may help to stem the tide of the asthma epidemic in Rhode Island. |
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Rhode Island ranks third (3rd) in the U.S. for the worst asthma rates. More than one in ten (10) |
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Rhode Islanders have asthma. Rhode Islanders pay about forty-one million dollars ($41,000,000) |
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per year in asthma-associated health costs. Asthma is the most common chronic disease in |
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children and responsible for the most school absences in Rhode Island. |
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     (d) The EPA, recognizing the harmful effects of diesel emissions, issued new fuel and |
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engine emission standards that will reduce particulate matter emissions from new engines ninety |
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percent (90%) below previous levels. However, these regulations only address new engines, and |
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since diesel engines last for decades, existing engines will survive to pollute at yesterday's |
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emission standards for decades to come. |
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     (e) The same technology that makes ninety percent (90%) reductions in emissions |
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possible for new engines can be retrofitted onto existing engines. Around the country, several |
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thousand school buses, transit buses, waste collection vehicles, and construction engines have |
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been retrofitted with pollution control equipment, dramatically reducing pollution from these |
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fleets. |
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     (f) Several states and municipalities are adopting comprehensive emission control |
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strategies and have dedicated funds to reducing emissions from diesel vehicles and equipment, |
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including California, Texas, New Jersey, New York, Connecticut and Massachusetts. |
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     (g) The 2005 Diesel Emissions Reduction Act (DERA), in the Federal Energy Act |
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authorized two hundred million dollars ($200,000,000) per year for five (5) years to assist states |
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in offsetting costs of diesel emission reduction technology. Rhode Island should act now to |
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position itself to maximize matching dollars available through this program by establishing a |
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Diesel Emission Reduction Program and Diesel Risk Mitigation Fund. |
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     31-47.3-2. Use of ultra low sulfur diesel fuel and best available retrofit technology by |
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the state. -- (a) For the purposes of this section only, the following terms shall have the following |
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meanings: |
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     (1) “Best available retrofit technology” means technology, verified by the United States |
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Environmental Protection Agency or California air resources board for reducing the emission of |
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pollutants that achieves reductions in particulate matter emissions at the highest classification |
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level for diesel emission control strategies that is applicable to the particular engine and |
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application. Such technology shall in no event result in a net increase in the emission of nitrogen |
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oxides. |
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     (2) "Heavy duty vehicle" or "vehicle" means any on-road or nonroad vehicle powered by |
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diesel fuel and having a gross vehicle weight of greater than fourteen thousand (14,000) pounds. |
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     (3) "Ultra low sulfur diesel fuel" means diesel fuel having sulfur content of fifteen |
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thousandths percent (.0015%) of sulfur or less. |
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     (b) Any diesel powered heavy duty vehicle that is owned by, operated by or on behalf of, |
3-11 |
or leased by or operating under contract to a state agency and state and regional public authority |
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shall be powered by ultra low sulfur diesel fuel. |
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     (c) Any diesel powered heavy duty vehicle that is owned by, operated by or on behalf of, |
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or leased by or operating under a contract to a state agency or state or regional public authority |
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with more than half of its governing body appointed by the governor shall utilize best available |
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retrofit technology for reducing the emission of pollutants. The director shall promulgate |
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regulations for the implementation of this subdivision specifying procedures for compliance |
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according to the following schedule: |
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     (1) Not less than thirty-three percent (33%) of the vehicles covered by this subdivision |
3-20 |
shall employ best available retrofit technology on or before December 31, 2008. |
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     (2) Not less than sixty-six percent (66%) of the vehicles covered by this subdivision shall |
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employ best available retrofit technology on or before December 31, 2009. |
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     (3) All vehicles covered by this subdivision shall employ best available retrofit |
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technology on or before December 31, 2010. |
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     (d) This subdivision shall not apply to: |
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     (1) any vehicle subject to a lease or public works contract entered into or renewed prior to |
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the effective date of this section; |
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     (2) vehicles that are specially equipped for emergency response by a state authority, |
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office of emergency management, sheriff’s office, police department or fire department, as well |
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as timber harvesting equipment such as harvesters, wood chippers, log skidders, and other |
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processing equipment used exclusively off highway for timber harvesting and logging purposes, |
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and farm equipment; |
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     (3) any on-road vehicle sold as “new” in compliance with the US EPA’s 2007 Heavy- |
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duty Highway Diesel Standards” promulgated by US EPA and published in the Federal Register |
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at 66 Fed. Reg. 5002 on January 18, 2001, or |
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     (4) any nonroad vehicle sold as “new” in compliance with the US EPA's Tier 4 Nonroad |
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Diesel Standards” promulgated by US EPA and published in the Federal Register at 69 Fed. Reg. |
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38958 on June 29, 2004. |
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     (e) In addition to other provisions for regulations in this section, the director shall |
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promulgate regulations as necessary and appropriate to carry out the provisions of this act |
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including, but not limited to, provision of waivers upon written finding by the director that best |
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available retrofit technology for reducing the emissions of pollutants as required by subdivision |
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(c) of this section is not available for an individual vehicle or class of vehicles. |
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     (f) This section shall not apply where federal law precludes the state from imposing the |
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requirement of this section. |
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     (g) On or before January 1, 2008 and every year thereafter, the director shall report to the |
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governor and legislature on the use of ultra low sulfur diesel fuel and the use of the best available |
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retrofit technology as required under this section. The information contained in this report shall |
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include, but not be limited to, for each state agency and public authority covered by this section: |
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     (1) the total number of diesel fuel-powered motor vehicles owned or operated by such |
4-17 |
agency and authority; |
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     (2) the number of such motor vehicles that were powered by ultra low sulfur diesel fuel; |
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     (3) the total number of diesel fuel-powered motor vehicles owned or operated by such |
4-20 |
agency and authority having a gross vehicle weight rating of more the fourteen thousand (14,000) |
4-21 |
pounds; |
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     (4) the number of such vehicles that utilized the best available retrofit technology, |
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including a breakdown by motor vehicle model, engine year and the type of technology used for |
4-24 |
each vehicle; |
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     (5) the number of such motor vehicles that are equipped with an engine certified to the |
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applicable 2007 Unites States Environmental Protection Agency standard for particulate matter as |
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set forth in Section 86.007-11 of Title 40 of the Code of Federal Regulations or to any subsequent |
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United States Environmental Protection Agency standard for particulate matter that is at least as |
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stringent; and |
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     (6) all waivers, findings, and renewals of such findings, which, for each waiver, shall |
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include, but not be limited to, the quantity of diesel fuel needed to power diesel fuel-powered |
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motor vehicles owned or operated by such agency and authority; specific information concerning |
4-33 |
the availability of ultra low sulfur diesel fuel. |
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     (h) The department shall, to the extent practicable, coordinate with regions which have |
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proposed or adopted heavy duty emission inspection programs to promote regional consistency in |
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such programs. |
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     (i) Severability. If any clause, sentence, paragraph, section or part of this act shall be |
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adjudged by any court of competent jurisdiction to be invalid and after exhaustion of all further |
5-5 |
judicial review, the judgment shall not affect, impair or invalidate the remainder thereof, but |
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shall be confined in its operation to the clause, sentence, paragraph, section or part of this act |
5-7 |
directly involved in the controversy in which the judgment shall have been rendered. |
5-8 |
     31-47.3-3. Use of diesel retrofit devices for waste haulers. -- (a) For the purposes of |
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this section only, the following terms shall have the following meanings: |
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     (1) “Level 2 control” means a verified diesel emission control device that achieves a |
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particulate matter (PM) emission reduction of fifty percent (50%) or more compared to |
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uncontrolled engine emission levels. |
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     (2) “Level 3 control” means a verified diesel emission control device that achieves a |
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particulate matter (PM) emission reduction of eighty-five percent (85%) or more compared to |
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uncontrolled engine emission levels, or that reduces emissions to less than or equal to one one- |
5-16 |
hundredth (0.01) grams of PM per brake horsepower-hour. Level 3 control includes repowering |
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or replacing the existing diesel engine with an engine meeting US EPA’s 2007 Heavy-duty |
5-18 |
Highway Diesel Standards, or in the case of a nonroad engine, an engine meeting the US EPA’s |
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Tier 4 Nonroad Diesel Standards. |
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     (b) Any diesel powered waste collection and recycling vehicle in model years between |
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and including 1994 and 2006 that is owned, leased, or contracted to perform the removal or |
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transfer of municipal waste, including residential or commercial waste, or recycling services shall |
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utilize level 3 control retrofit technology for reducing the emission of pollutants. As of January 1, |
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2012, no waste collection or recycling vehicle in model years between and including 1994 and |
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2006 may be permitted to register without proper demonstration of the required level 3 control |
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retrofit technology. The director shall promulgate regulations for the implementation of this |
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subdivision specifying procedures for compliance according to the following schedule: |
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     (1) Not less than twenty-five percent (25%) of the vehicles covered by this subdivision |
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shall have level 3 control retrofit technology on or before December 31, 2008. |
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     (2) Not less than fifty percent (50%) of the vehicles covered by this subdivision shall |
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have level 3 control retrofit technology on or before December 31, 2009. |
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     (3) Not less than seventy-five percent (75%) of the vehicles covered by this subdivision |
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shall have level 3 control retrofit technology on or before December 31, 2010. |
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     (4) All vehicles covered by this subdivision shall have level 3 control retrofit technology |
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on or before December 31, 2011. |
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     (c) Any diesel powered waste collection and recycling vehicle in model years 1993 and |
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earlier that is owned, leased, or contracted to perform the removal or transfer of municipal waste, |
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including residential or commercial waste, or recycling services shall utilize level 2 control |
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retrofit technology for reducing the emission of pollutants. As of January 1, 2012, no waste |
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collection or recycling vehicle in model years 1993 and earlier may be permitted to register |
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without proper demonstration of the required level 2 control retrofit technology. The director |
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shall promulgate regulations for the implementation of this subdivision specifying procedures for |
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compliance according to the following schedule: |
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     (1) Not less than twenty-five percent (25%) of the vehicles covered by this subdivision |
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shall have level 2 control retrofit technology on or before December 31, 2008. |
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     (2) Not less than fifty percent (50%) of the vehicles covered by this subdivision shall |
6-13 |
have level 2 control retrofit technology on or before December 31, 2009. |
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     (3) Not less than seventy-five (75%) of the vehicles covered by this subdivision shall |
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have level 2 control retrofit technology on or before December 31, 2010. |
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     (4) All vehicles covered by this subdivision shall have level 2 control retrofit technology |
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on or before December 31, 2011. |
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     (d) On or before January 1, 2008 and every year thereafter, the director shall report to the |
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governor and legislature on the use of level 3 and level 2 control retrofit technology on waste |
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collection and recycling vehicles required under this section. The information contained in this |
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report shall include, but not be limited to: |
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     (1) the total number of diesel fuel-powered waste collection and recycling vehicles |
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covered by this section; |
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     (2) the number of such diesel vehicles that were powered by ultra low sulfur diesel fuel; |
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     (3) the total number of diesel fuel-powered waste collection and recycling vehicles |
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having a gross vehicle weight rating of more the fourteen thousand (14,000) pounds; |
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     (4) the number of such vehicles that were between and including model years 1994 and |
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2006; |
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     (5) the number of such vehicles between and including model years 1994 and 2006 that |
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utilized level 3 control retrofit technology, including a breakdown by motor vehicle model, |
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engine year and the type of technology used for each vehicle; |
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     (6) the number of such vehicles in model years 1993 and earlier; |
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     (7) the number of such vehicles in model years 1993 and earlier that utilized level 2 |
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control retrofit technology, including a breakdown by motor vehicle model, engine year and the |
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type of technology used for each vehicle; |
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     (8) the number of diesel waste collection and recycling vehicles that are equipped with an |
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engine certified to the applicable 2007 Unites States Environmental Protection Agency standard |
7-4 |
for particulate matter as set forth in Section 86.007-11 of Title 40 of the Code of Federal |
7-5 |
Regulations or to any subsequent United States Environmental Protection Agency standard for |
7-6 |
particulate matter that is at least as stringent; and |
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     (9) all waivers, findings, and renewals of such findings, which, for each waiver, shall |
7-8 |
include, but not be limited to, the quantity of diesel fuel needed to power diesel fuel-powered |
7-9 |
motor vehicles owned or operated by such agency and authority; specific information concerning |
7-10 |
the availability of ultra low sulfur diesel fuel. |
7-11 |
     (e) Severability. If any clause, sentence, paragraph, section or part of this act shall be |
7-12 |
adjudged by any court of competent jurisdiction to be invalid and after exhaustion of all further |
7-13 |
judicial review, the judgment shall not affect, impair or invalidate the remainder thereof, but |
7-14 |
shall be confined in its operation to the clause, sentence, paragraph, section or part of this act |
7-15 |
directly involved in the controversy in which the judgment shall have been rendered. |
7-16 |
     31-47.3-4. Reducing emissions from school buses. -- (a) Purpose. To reduce health risks |
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from diesel particulate matter (DPM) to Rhode Island school children by significantly reducing |
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emissions in tailpipe emissions from school buses, and preventing engine emissions from entering |
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the passenger cabin of the buses. |
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     (b) Requirements for Rhode Island school buses: |
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     (i) By September 1, 2008, no school bus with an engine model year 1993 or older may be |
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used to transport school children in Rhode Island; |
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     (ii) By September 1, 2010, all full-sized school buses transporting children in Rhode |
7-24 |
Island must be retrofitted with a closed crankcase filtration system and either: (A) be equipped |
7-25 |
with a level 1 (>25% PM reduction), level 2 (>50% PM reduction), or level 3 (>85% PM |
7-26 |
reduction) device verified by the US Environmental Protection Agency or the California Air |
7-27 |
Resources Board; or (B) be equipped with an engine of model year 2007 or newer; or (C) Use an |
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alternative fuel verified by CARB/EPA to reduce DPM emissions at a level equivalent to |
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subsection (B) above. |
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     (c) Development of state procurement contracts. |
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     (i) The Rhode Island department of administration (DOA) procurement division shall |
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develop procurement contracts for: (A) the purchase of new buses compliant with MY2007 |
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emission standards; (B) tailpipe emission control retrofits suitable for school buses; and (C) |
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closed crankcase filtration systems; |
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     (ii) All contracts must be made available to municipalities and private school bus |
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operators, provided the contractor can demonstrate that the newly purchased school bus, or the |
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retrofitted school bus affected by this provision will be in service in Rhode Island for at least four |
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(4) years beginning the date of purchase; |
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     (iii) Contracts must be available through Rhode Island's DOA's vendor information |
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program (RIVIP) website, in a category that clearly identifies the product to municipalities and |
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     private school bus operators; |
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     (iv) At least one bid must be developed for each CARB emission control device |
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verification level: level 1, level 2, and level 3; |
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     (v) At least one bid must be developed for a closed crankcase filtration system; |
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     (vi) Rhode Island DEM and DOA shall develop an outreach plan and materials for |
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educating school districts and bus companies about the new requirements and paths to |
8-13 |
compliance. |
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     (d) State financial assistance to defray compliance costs: |
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     (i) Notwithstanding any other provisions of the general laws, purchases of new school |
8-16 |
buses for use in Rhode Island, natural gas or diesel, of model years 2007-2010 are exempt from |
8-17 |
sales tax. The tax exemption provided in this subdivision shall expire on September 1, 2010; |
8-18 |
     (ii) Effective immediately, for school bus model years 1994-2005 only, the state shall |
8-19 |
provide incentive funding to school bus owners for the purchase and installation of any |
8-20 |
CARB/EPA-verified emission control retrofit device together with the purchase and installation |
8-21 |
of closed crankcase filtration system (CCFS) retrofit device. In 2007, the per-unit incentive shall |
8-22 |
not exceed one thousand and five hundred dollars ($1,500) for a level 1 device plus a CCFS or |
8-23 |
two thousand five hundred dollars ($2,500) for a level 2 or level 3 device plus a CCFS. Incentive |
8-24 |
levels may be reevaluated annually, with the goal of maintaining competition in the market for |
8-25 |
retrofit devices; |
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     (iv) To receive incentive funding from the state, school bus owners must submit a form to |
8-27 |
the authorized state agency containing the bus model and year, engine model and year, VIN |
8-28 |
number, receipt for the retrofit device, and date installed for every eligible bus. Bus owners must |
8-29 |
also certify that newly purchased or retrofitted buses will operate in the state of Rhode Island for |
8-30 |
a minimum of four (4) years. |
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     (e) Reporting, compliance and enforcement. |
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     (i) Existing annual registration requirements of the Rhode Island division of motor |
8-33 |
vehicles (DMV) shall be amended to include documentation of compliance with emissions |
8-34 |
control requirements. Documentation of compliance shall include bus model and year, engine |
9-1 |
model, year and VIN number, type of retrofit, date installed, date and amount of state rebate |
9-2 |
received. For school buses complying with the use of a clean fuel meeting requirements provided |
9-3 |
for in subdivision 31-47.3-5(b)(ii)(C), documentation must include clean fuel receipts (each |
9-4 |
delivery); |
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     (ii) Annual mandatory safety inspections shall be supplemented with emission control |
9-6 |
compliance inspection; and |
9-7 |
     (iii) Civil penalties for noncompliance and additional penalties for making false claims |
9-8 |
shall be established. Penalty money should be directed into the Rhode Island diesel risk |
9-9 |
mitigation fund pursuant to subdivision 31-47.3-5(a)(3). |
9-10 |
     (f) Priority community provision: |
9-11 |
     (i) When penalty funds, state SEP funds, federal funds, or funds from other state or non- |
9-12 |
state sources become available, these should first be allocated toward further offsetting costs of |
9-13 |
achieving "best available" emissions control in "priority communities"; |
9-14 |
     (ii) The "best available" standard is attained by all new buses (MY2007 and newer) and |
9-15 |
by diesel buses retrofitted with level 3-verified diesel particulate filters and closed crankcase |
9-16 |
filtration systems. A clean alternative fuel (such as natural gas) could also achieve an equivalent |
9-17 |
standard; and |
9-18 |
     (iii) "Priority communities" (to be identified by the Rhode Island DEM) are Rhode Island |
9-19 |
communities that have high levels of ambient air pollution and high incidence of childhood |
9-20 |
respiratory impacts. |
9-21 |
     31-47.3-5. Diesel emissions reduction funding program. -- (a) Fund. The Diesel |
9-22 |
Emissions Reduction Fund (the “fund”) is hereby established as an account in the state treasury. |
9-23 |
     (1) The fund shall be administered by the state treasurer for the benefit of the Diesel |
9-24 |
Emissions Reduction Funding Program (the "program") established under this section. |
9-25 |
     (2) Interest earned on the fund shall be credited to the fund. |
9-26 |
     (3) The fund consists of: (1) the contributions, fees, and surcharges under:(A) subsections |
9-27 |
5-7; and (B) penalties and fees deposited in the fund pursuant with this act. |
9-28 |
     (4) Monies in the fund may be used only to implement the program, provided that a |
9-29 |
maximum of two percent (2%) of the money in the fund may be used for administrative costs |
9-30 |
incurred by the DEM and the state treasurer. Monies allocated to an eligible project but not |
9-31 |
expended in any fiscal year may be carried over to succeeding fiscal years. |
9-32 |
     (5) A surcharge is hereby imposed on the retail sale, lease, or rental of new nonroad |
9-33 |
diesel vehicles in an amount equal to one percent (1%) of the sales price or the lease or rental |
9-34 |
amount. |
10-1 |
     (6) A surcharge is hereby imposed on every retail sale, lease or rental of every heavy duty |
10-2 |
diesel vehicle that is of a model year of 1998 or earlier and that is sold or leased in this state. The |
10-3 |
amount of the surcharge is two and one-half percent (2.5%) of the total consideration. |
10-4 |
     (7) In addition to the registration fees charged under [applicable section of state law], a |
10-5 |
surcharge is hereby imposed on the registration of a heavy duty diesel vehicle under that section |
10-6 |
in an amount equal to ten percent (10%) of the total fees due for registration of such vehicle |
10-7 |
thereunder. Said surcharges shall be remitted to the state treasurer for deposit in the fund. |
10-8 |
     (8) The bonding authority is hereby authorized to issue up to ten million dollars |
10-9 |
($10,000,000) annually before 2018 in bonds to be used solely to fund revolving loans to eligible |
10-10 |
diesel emission reduction projects as described in this section |
10-11 |
     (9) The state treasurer shall adopt any procedures needed for the collection, |
10-12 |
administration and enforcement of the surcharge authorized by this subsection, and shall deposit |
10-13 |
all surcharges to the credit of the fund. |
10-14 |
     (b) Establishment and administration of the program. DEM, in consultation with the |
10-15 |
state treasurer, shall establish by regulations promulgated pursuant to this act the Rhode Island |
10-16 |
Diesel Emissions Reduction Funding Program in accordance with this act. |
10-17 |
     (1) DEM shall administer the program and shall provide grants and low-cost revolving |
10-18 |
loans from the fund, on a competitive basis, to eligible projects to achieve significant reductions |
10-19 |
of diesel particulate emissions and/or reduced exposure to diesel particulate matter. |
10-20 |
     (2) In administering the program and in accordance with the requirements of this act, |
10-21 |
DEM shall: |
10-22 |
     (A) manage program funds and oversee the program; |
10-23 |
     (B) produce guidelines, protocols, and criteria for eligible projects; |
10-24 |
     (C) develop methodologies for evaluating project benefits and cost-effectiveness; |
10-25 |
     (D) develop procedures for monitoring whether the emissions reductions projected for |
10-26 |
projects awarded grants under this chapter are actually achieved; |
10-27 |
     (E) prepare reports regarding the progress and effectiveness of the program; and |
10-28 |
     (F) take all appropriate and necessary actions so that emissions reductions achieved |
10-29 |
through the program may be credited by US EPA to the appropriate emissions reduction |
10-30 |
objectives in the state implementation plan. |
10-31 |
     (c) Applications. |
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     (1) To receive a grant or loan under the program, the applicant shall submit to DEM an |
10-33 |
application at a time, in a manner, and including such information DEM may require. |
10-34 |
     (2) An application under this subsection shall include: |
11-1 |
     (A) a description of the air quality of the area in which the project fleets will operate; |
11-2 |
     (B) a description of the project proposed by the applicant, including: |
11-3 |
     (i) any certified engine configuration or verified technology proposed to be used or |
11-4 |
funded in the project; and |
11-5 |
     (ii) the means by which the project will achieve a significant reduction in diesel |
11-6 |
emissions; |
11-7 |
     (C) an evaluation (using methodology approved by DEM) of the quantifiable and |
11-8 |
unquantifiable benefits of the emissions reductions of the proposed project; |
11-9 |
     (D) an estimate of the cost of the proposed project; |
11-10 |
     (E) a description of the age and expected lifetime control of the equipment to be used or |
11-11 |
funded in the proposed project; |
11-12 |
     (F) a description of the diesel fuel available in the areas to be served by the proposed |
11-13 |
project, including the sulfur content of the fuel; |
11-14 |
     (G) provisions for the monitoring and verification of the project; and |
11-15 |
     (H) such other information as may be required by DEM. |
11-16 |
     (d) Eligibility. |
11-17 |
     (1) A proposed project must meet the requirements of this section to be eligible for a |
11-18 |
grant or loan under the program. |
11-19 |
     (2) Vehicles subject to the provisions of section 39T and section 39U are not eligible for |
11-20 |
funding from the program. |
11-21 |
     (3) DEM may consider for funding the following types of projects: |
11-22 |
     (A) Installation of a retrofit technology, including any incremental costs of a repowered |
11-23 |
or new diesel engine, that significantly reduces particulate emissions through development and |
11-24 |
implementation of a certified engine configuration or a verified diesel emission control device |
11-25 |
for: |
11-26 |
     (i) a bus; |
11-27 |
     (ii) a medium-duty truck or a heavy-duty truck; |
11-28 |
     (iii) a commercial marine engine; |
11-29 |
     (iv) a locomotive; or |
11-30 |
     (v) a nonroad diesel engine or vehicle used in construction, handling of cargo, including |
11-31 |
at a port or airport, agriculture, mining, or energy production; or |
11-32 |
     (B) programs or projects to reduce long-duration idling using verified technology |
11-33 |
involving a vehicle or equipment described in subsection (A). |
11-34 |
     (4) In providing a grant or loan under the program, and subject to the provisions of |
12-1 |
subsection (c), DEM shall give priority to otherwise eligible projects that, as determined by |
12-2 |
DEM: |
12-3 |
     (A) maximize public health benefits; |
12-4 |
     (B) are the most cost-effective; |
12-5 |
     (C) serve areas: |
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     (i) with the highest population density; |
12-7 |
     (ii) that are poor air quality areas, including areas identified by DEM as: |
12-8 |
     (I) in nonattainment or maintenance of national ambient air quality standards for a criteria |
12-9 |
pollutant; |
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     (II) Federal Class I areas; or |
12-11 |
     (III) areas with toxic air pollutant concerns; |
12-12 |
     (iii) that receive a disproportionate quantity of air pollution from a diesel fleet, including |
12-13 |
truck stops, ports, rail yards, terminals, and distribution centers; or |
12-14 |
     (iv) that use a community-based multi-stakeholder collaborative process to reduce toxic |
12-15 |
emissions; |
12-16 |
     (D) include a certified engine configuration or verified technology that has a long |
12-17 |
expected useful life; |
12-18 |
     (E) will maximize the useful life of any certified engine configuration or verified |
12-19 |
technology used or funded by the project; and, |
12-20 |
     (F) conserve diesel fuel |
12-21 |
     (5) For a proposed project to be eligible for program funding, other than a project |
12-22 |
involving a marine vessel or engine, not less than seventy-five percent (75%) of vehicle miles |
12-23 |
traveled or hours of operation projected for the five (5) years immediately following the award of |
12-24 |
a grant must be projected to take place in this state. For a proposed project involving a marine |
12-25 |
vessel or engine, the vessel or engine must be operated in the intercoastal waterways or bays |
12-26 |
adjacent to this state for a sufficient amount of time over the lifetime of the project, as determined |
12-27 |
by DEM, to meet the cost-effectiveness requirements of subsection (e). |
12-28 |
     (6) Each proposed project must meet the cost-effectiveness requirements of subsection |
12-29 |
(e). |
12-30 |
     (7) A proposed project based on the use of a certified engine configuration or verified |
12-31 |
technology must document, in a manner acceptable to DEM, a reduction in particulate emissions |
12-32 |
of at least fifty percent (50%) compared with the baseline emissions adopted by DEM for the |
12-33 |
relevant engine year and application. After study of available emissions reduction technologies, |
12-34 |
after public notice and comment, DEM may revise the minimum percentage reduction in |
13-1 |
particulate emissions required by this subsection to improve the ability of the program to achieve |
13-2 |
its goals. |
13-3 |
     (8) If a baseline emissions standard does not exist for on-road or non-road diesels in a |
13-4 |
particular category DEM, for purposes of this section, shall establish an appropriate baseline |
13-5 |
emissions level for comparison purposes. |
13-6 |
     (9) DEM may approve payments to offset the incremental cost, over the expected lifetime |
13-7 |
of the vehicle, of the use of qualifying fuel in a on-road or non-road diesel vehicle if the proposed |
13-8 |
project as a whole, including the incremental fuel cost, meets the requirements of this subchapter. |
13-9 |
DEM shall develop an appropriate method for converting incremental fuel costs over the lifetime |
13-10 |
of the non-road diesel into an initial cost for purposes of determining cost-effectiveness as |
13-11 |
required by subsection (e). |
13-12 |
     (e) Cost-effectiveness. |
13-13 |
     (1) For purposes of this section, “cost-effectiveness” means the total dollar amount |
13-14 |
divided by the total number of tons of particulate matter reduction attributable to that expenditure. |
13-15 |
In calculating cost-effectiveness, one-time grants of money at the beginning of a project shall be |
13-16 |
annualized using a time value of public funds or discount rate determined for each project by |
13-17 |
DEM, taking into account the interest rate on bonds, interest earned by state funds, and other |
13-18 |
factors DEM considers appropriate. |
13-19 |
     (2) DEM shall establish reasonable methodologies for evaluating project cost- |
13-20 |
effectiveness consistent with subsection (e)(1) and with accepted methods. |
13-21 |
     (3) Except as provided by subsection (e)(7), DEM may not award a grant for a proposed |
13-22 |
project the cost-effectiveness of which, calculated in accordance with subsections (e)(1) and (2) |
13-23 |
and criteria developed thereunder, exceeds one hundred thirty-five thousand dollars ($135,000) |
13-24 |
per ton of PM10 emissions. This subsection does not restrict DEM authority under other law to |
13-25 |
require emissions reductions with a cost-effectiveness that exceeds one hundred thirty-five |
13-26 |
thousand dollars ($135,000) per ton. |
13-27 |
     (4) DEM may not award a grant that, net of taxes, provides an amount that exceeds the |
13-28 |
incremental cost of the proposed project. |
13-29 |
     (5) DEM shall adopt guidelines for capitalizing incremental lease costs so those costs |
13-30 |
may be offset by a grant under this section. |
13-31 |
     (6) In determining the amount of a grant under this section, DEM shall reduce the |
13-32 |
incremental cost of a proposed new purchase, lease, retrofit, repower, or add-on equipment |
13-33 |
project by the value of any existing financial incentive that directly reduces the cost of the |
13-34 |
proposed project, including tax credits or deductions, other grants, or any other public financial |
14-1 |
assistance. |
14-2 |
     (7) Adjustment of cost-effectiveness. Based upon a study of available emissions |
14-3 |
reduction technologies and costs and after public notice and comment, DEM may change the |
14-4 |
values of the maximum grant award criteria established in subsection (e)(3) to account for |
14-5 |
inflation or to improve the ability of the program to achieve its goals. |
14-6 |
     SECTION 3. This act shall take effect upon passage. |
      | |
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LC01556 | |
======== | |
EXPLANATION | |
BY THE LEGISLATIVE COUNCIL | |
OF | |
A N A C T | |
RELATING TO MOTOR AND OTHER VEHICLES -- DIESEL EMISSIONS RESOLUTION | |
*** | |
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     This act would create the diesel emission reduction act. |
15-2 |
     This act would take effect upon passage |
      | |
======= | |
LC01556 | |
======= |