2016 -- H 8270

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LC006082

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     STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2016

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A N   A C T

RELATING TO MOTOR AND OTHER VEHICLES-CLEAN DIESEL

     

     Introduced By: Representatives Coughlin, Solomon, and Edwards

     Date Introduced: May 27, 2016

     Referred To: House Finance

     It is enacted by the General Assembly as follows:

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     SECTION 1. Chapter 31-47.3 of the General Laws entitled "The Diesel Emissions

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Reduction Act" is hereby amended by adding thereto the following section:

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     31-47.3-5.1. Establishment of the Rhode Island clean diesel fund. -- (a) There is

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hereby authorized and created within DEM a Rhode Island clean diesel fund for the purpose of

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reducing emissions from heavy-duty diesel engines operating on state roads and helping

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companies improve supply chain efficiency as described in the United States Environmental

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Protection Agency's SmartWay Program. The clean diesel fund will solicit projects that undertake

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eligible clean diesel measures and award grants from the fund to reimburse applicants for

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undertaking these measures.

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     (b) DEM shall promulgate rules and regulations pursuant to chapter 35 of title 42

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containing a list of eligible clean diesel measures which shall include, but not be limited to, the

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following:

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     (1) Aerodynamic technologies;

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     (2) Clean alternative fuel conversions;

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     (3) Diesel emission reduction solutions;

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     (4) Engine repowers;

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     (5) Idle reduction technologies;

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     (6) Low rolling resistance tires;

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     (7) Vehicle replacements; and

 

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     (8) Replacement or upgrades of transport refrigeration units or transport refrigeration unit

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generator sets.

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     (c) Equipment eligible for grant funding must:

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     (1) Be intended for on-road use;

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     (2) Be registered with the Rhode Island division of motor vehicles;

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     (3) Be kept or garaged in Rhode Island as indicated on the vehicle registration issued by

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the division of motor vehicles;

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     (4) Have been certified to DEM that fifty percent (50%) or more of vehicle miles

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traveled, or hours of operation, shall be projected to be in Rhode Island for at least five (5) years

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following the grant award; and

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     (5) Meet any other criteria established in DEM rules and regulations promulgated by

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DEM pursuant to Chapter 35 of title 42.

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     (d) Administrative costs. - The cost of administration and outreach by DEM shall not in

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any year exceed two hundred thousand dollars ($200,000) or ten percent (10%) of the fund

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appropriation, whichever is greater.

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     (e) Project priority list. - DEM shall promulgate rules and regulations pursuant to chapter

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35 of title 42 that contain a project priority list for the Rhode Island clean diesel fund and the

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process through which an eligible applicant may submit an application for inclusion of a project

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on the project priority list. Upon issuance of the project priority list by DEM, the project priority

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list shall be used by DEM to determine the order in which grants shall be awarded.

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     (f) Awarding of grants. - DEM shall only award grant funds after verifying that the

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eligible measures outlined in the application have been implemented successfully by the

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applicant. If the final invoice price of an eligible measure is less than the initial quoted price, the

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grant award shall be reduced accordingly. Grants shall not be awarded to aid in compliance with

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existing mandates in state or federal law.

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     (g) Grant amounts. - For each eligible measure implemented by the applicant, DEM shall

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only issue grants for up to fifty percent (50%) of the total project cost. DEM shall promulgate

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rules and regulations pursuant to chapter 35 of title 42 that set the exact reimbursement amount

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for each eligible measure. The total project cost shall include both the material and labor needed

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to implement each eligible measure. No one applicant shall be awarded more than twenty-five

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percent (25%) of the grant funds appropriated during a given fiscal year, provided that the total

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grants requested exceed the amount appropriated. If the total amount of grants requested is less

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than the amount appropriated in a given fiscal year, DEM may allocate more than twenty-five

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percent (25%) of the fund to one applicant.

 

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     (h) Vehicle replacements. - For projects that propose to replace vehicles, the following

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conditions shall be met:

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     (1) The applicant shall replace an older vehicle with a newer vehicle certified to more

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stringent emissions standards than the engine or vehicle being replaced;

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     (2) The vehicle being replaced is a model year at least ten (10) years old;

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     (3) The vehicle being replaced has a gross vehicle weight rating of thirty-three thousand

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one pounds (33,001 lbs.) or greater;

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     (4) The replacement vehicle purchased by the applicant is a model year no more than

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three (3) years old;

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     (5) The replacement vehicle has a gross vehicle weight rating of thirty-three thousand one

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pounds (33,001 lbs.) or greater;

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     (6) The replacement vehicle must be operable with remaining useful life as defined in

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rules and regulations promulgated by DEM pursuant to chapter 35 of title 42.

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     (7) The engine of the vehicle being replaced must be scrapped or otherwise rendered

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inoperable in a manner consistent with rules and regulations promulgated by DEM pursuant to

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chapter 35 of title 42;

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     (8) The amount of funding requested must contain the sale price of the vehicle, not

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including any interest or other finance charges; and

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     (9) A vehicle purchased on a lease must be operated for the life of the project, with the

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life of the project being included in the application approved by DEM.

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     (i) Transport refrigeration unit replacement. - For projects that propose to replace or

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upgrade transport refrigeration units or transport refrigeration unit generator sets, the following

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conditions shall be met:

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     (1) The transport refrigeration unit or transport refrigeration unit generator set being

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replaced or upgraded is powered by a diesel engine;

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     (2) The transport refrigeration unit or transport refrigeration unit generator set being

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replaced or upgraded is being used on a vehicle with a gross vehicle weight rating of thirty-three

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thousand one pounds (33,001 lbs.) or greater;

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     (3) The replacement or upgraded transport refrigeration unit or transport refrigeration unit

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generator set produces fewer emissions than the equipment being replaced or upgraded; and

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     (4) The replacement or upgraded transport refrigeration unit or transport refrigeration unit

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generator set meets emission criteria established by DEM in rules and regulations promulgated by

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DEM pursuant to chapter 35 of title 42.

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     (i) Reporting. - Projects receiving grant funding from DEM shall be subject to any

 

LC006082 - Page 3 of 5

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reporting and data collection requirement specified in DEM rules and regulations promulgated by

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DEM pursuant to chapter 35 of title 42.

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     (j) Penalties. - Applicants awarded funds under this program may be penalized for

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breaching the terms of their grant award or for other project non-performance through the:

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     (1) Cancellation of the grant award;

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     (2) Recovery of all or a portion of the grant award;

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     (3) Other fiscal penalties on an applicant based on the severity of non-performance and as

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specified in rules and regulations promulgated by DEM pursuant to chapter 35 of title 42; or

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     (4) Prohibiting an applicant or a specific vehicle from participating in the program in the

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future.

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     SECTION 2. This act shall take effect upon passage.

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EXPLANATION

BY THE LEGISLATIVE COUNCIL

OF

A N   A C T

RELATING TO MOTOR AND OTHER VEHICLES-CLEAN DIESEL

***

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     This act would establish the Rhode Island clean diesel fund for the purpose of reducing

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emissions from heavy-duty diesel engines operating on state roads and helping companies

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improve supply chain efficiency as described in the United States Environmental Protection

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Agency's SmartWay program.

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     The act would take effect upon passage.

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LC006082

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