19-1-404 - Department duties -- Rulemaking -- Loan repayment. - Utah Statutes

19-1-404. Department duties -- Rulemaking -- Loan repayment.
(1) The department shall:
(a) administer the fund created in Section 19-1-403 to encourage government officialsand private sector business vehicle owners and operators to obtain and use clean fuel vehicles;and
(b) by following the procedures and requirements of Title 63G, Chapter 3, UtahAdministrative Rulemaking Act, make rules:
(i) specifying the amount of money in the fund to be dedicated annually for grants;
(ii) limiting the amount of a grant given to any person claiming a tax credit under Section59-7-605 or 59-10-1009 for the motor vehicle for which a grant is requested to assure that thesum of the tax credit and grant does not exceed:
(A) 50% of the incremental cost of the OEM vehicle; or
(B) 50% of the cost of conversion equipment;
(iii) limiting the number of motor vehicles per fleet operator that may be eligible for agrant in a year;
(iv) specifying criteria the department shall consider in prioritizing and awarding loansand grants;
(v) specifying repayment periods;
(vi) specifying procedures for:
(A) awarding loans and grants; and
(B) collecting loans;
(vii) requiring all loan and grant applicants to:
(A) apply on forms provided by the department;
(B) agree in writing to use the clean fuel for which each vehicle is converted orpurchased using loan or grant proceeds for a minimum of 70% of the vehicle miles traveledbeginning from the time of conversion or purchase of the vehicle;
(C) agree in writing to notify the department if a vehicle converted or purchased usingloan or grant proceeds becomes inoperable through mechanical failure or accident and to pursuea remedy outlined in department rules;
(D) provide reasonable data to the department on a vehicle converted or purchased withloan or grant proceeds; and
(E) submit a vehicle converted or purchased with loan or grant proceeds to inspectionsby the department as required in department rules and as necessary for administration of the loanand grant program; and
(viii) specifying the criteria for awarding a state match under Subsection 19-1-403(2).
(2) (a) When developing repayment schedules for the loans, the department shallconsider the projected savings from use of the clean fuel vehicle.
(b) A repayment schedule may not exceed 10 years.
(c) The department shall make a loan from the fund for a private sector vehicle at aninterest rate equal to the annual return earned in the state treasurer's Public Treasurer's Pool asdetermined the month immediately preceding the closing date of the loan.
(d) The department shall make a loan from the fund for a government vehicle with nointerest rate.
(3) The Division of Finance shall:
(a) collect and account for the loans; and

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(b) have custody of all loan documents, including all notes and contracts, evidencing theindebtedness of the fund.

Amended by Chapter 382, 2008 General Session