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Senate amends clean‑fuel vehicle incentive bill, sponsors say $35 surcharge keeps fiscal note neutral

Utah State Senate · March 1, 2000
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Summary

Lawmakers amended House Bill 323 to fund clean‑fuel vehicle incentives with a new surcharge tied to clean‑fuel certificates and a coordination clause replacing Centennial Highway Fund receipts; sponsors said the change yields a zero fiscal note but several senators pressed for clearer long‑term impact estimates.

Senators amended House Bill 323, an incentives package for clean‑fuel vehicles, and advanced the measure after floor debate over how the program would be funded. Senator Valentine moved the uncircle motion and sponsors described two programs in the bill: a federal fleet grant aimed at fleets and an individual income‑tax credit targeted at motorists.

Senator Stephenson asked detailed questions about amendment number 4, pressing sponsors on the mechanics and duration of a new surcharge. “This exemption will now be self funded through this new $35 fee,” Stephenson said on the floor while asking how many years it would take for the surcharge revenue to pay for incentives that can range “up to $3,000 or 50% of the incremental cost of the vehicle.” Sponsors acknowledged the fiscal note had not been updated post‑amendment and suggested caucus staff or sponsors could circle the bill to produce further detail.

Floor sponsors explained the fiscal mechanics: the bill imposes a $35 surcharge on each clean‑fuel certificate, deposits that revenue into the Centennial Highway Fund, and relies on a coordination clause with the general appropriations act (identified on the floor as Senate Bill 1) that would replace an estimated $104,000 in fund receipts with the surcharge revenue. Sponsors argued that spreading contributions over the useful life of vehicles (5–7 years) and the one‑year timing lag for tax credits produces a net zero fiscal note in the current estimate.

Senators also approved a friendly amendment to make a "school district" explicitly eligible for the federal grant program, so districts that pay the required per‑unit license fee would qualify for fleet grants.

The bill was amended on the floor and sponsors committed to revisiting the fee if post‑implementation figures show the math does not hold. The Senate called the question on the amended bill and proceeded with the roll call as required; sponsors emphasized a legislative opportunity to return next session to adjust the fee if experience shows it is necessary.

What happens next: Senate sponsors said the amendment and bill would be returned to the House for consideration; lawmakers left open the option to 'circle' the measure later for additional fiscal analysis.