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House backs revised clean‑fuel conversion incentives, shifting options from tax credits to grants

Utah House of Representatives · February 12, 2016
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Summary

The House passed a second substitute to HB87 on Feb. 12, 2016, converting a tax-credit approach into a grant program and extending some electric-vehicle incentives to 2020; the measure includes a $2,500 per‑conversion cap and qualifications for providers. It passed 41–28.

Sponsors described the second substitute to House Bill 87 as a technical but substantive update to Utah’s clean‑fuel incentives that shifts some tax‑credit support into a grant program aimed at accelerating vehicle conversions and expanding electric-vehicle battery‑capacity provisions.

The sponsor said eligible conversion providers must qualify (not be an unregulated garage) and that grants would cover up to $2,500 of a conversion in typical cases; eligible conversions and the temporal window for tax‑credit continuation through 2020 generated questions on the floor. Representative Nelson and others asked whether providers could inflate charges if government money were available; the sponsor responded that qualification standards and program rules limit participants and that administrative rules at the Division of Air Quality were developed with stakeholder input.

The sponsor acknowledged confusing statutory language and said the additional substitute was intended to provide needed clarity. The House approved the second substitute 41–28 and referred the bill to the Senate for further consideration.