Utah Incentives and Laws

Listed below are the summaries of all current Utah incentives, laws, regulations, funding opportunities, and other initiatives related to alternative fuels and vehicles, advanced technologies, or air quality. You can go directly to summaries of:

• State Incentives (4)
• Utility/Private Incentives (1)
• Laws and Regulations (9)

State Incentives

Alternative Fuel and Fuel Efficient Vehicle Tax Credit

The state provides an income tax credit of 35% of the vehicle purchase price, up to $2,500, for an original equipment manufacturer compressed natural gas vehicle registered in Utah. Other new clean fuel vehicles that meet air quality and fuel economy standards may be eligible for a credit of $605, including certain electric and hybrid electric vehicles. These incentives expire December 31, 2013. See the Clean Fuel Vehicle Tax Credit website for eligible vehicles, restrictions, and additional information. (Reference Utah Code 19-1-402, 59-7-605, and 59-10-1009)

Alternative Fuel Vehicle (AFV) and Fueling Infrastructure Grants and Loans

The Utah Clean Fuels and Vehicle Technology Grant and Loan Program (Program), funded through the Clean Fuels and Vehicle Technology Fund, provides grants and loans to assist businesses and government entities in covering:

• The cost of converting vehicles to operate on clean fuels;
• The incremental cost of purchasing original equipment manufactured clean fuel vehicles;
• The cost of retrofitting diesel vehicles with U.S. Environmental Protection Agency verified closed crankcase filtration devices, diesel oxidation catalysts, and/or diesel particulate filters; and
• The cost of fueling equipment for public/private sector business and government vehicles (grants require federal and non-federal matching funds).

The Program does not support E85 or biodiesel projects. For the purpose of the Program, clean fuels include propane, compressed natural gas, and electricity. (Reference Utah Code 19-1-401 through 19-1-405)

Alternative Fuel Tax Rate Reduction and Exemption

Propane and electricity used to operate motor vehicles are exempt from state fuel taxes. The reduced tax on compressed natural gas and liquefied natural gas is $0.085 per gasoline gallon equivalent; this rate will be modified proportionally with any changes to the traditional motor fuel rate. The Utah Revenue and Tax Code allows a reduction of motor and special fuel taxes if the motor or special fuel is already taxed by the Navajo Nation. Retailers, wholesalers, and suppliers of special fuel are eligible for a refund of the special fuel tax if dyed diesel fuel is mixed with special fuel and the mixed special fuel is returned to the refinery for re-refining. (Reference Utah Code 59-13-102, 59-13-201, 59-13-301, and 59-13-322)

Alternative Fuel Vehicle Decal and High Occupancy Vehicle (HOV) Lane Exemption

Vehicles operating on propane, compressed natural gas, liquefied natural gas, or electricity are permitted to use HOV lanes, regardless of the number of passengers. Qualified vehicles must display special clean fuel decal issued by the Utah Department of Transportation. (Reference Utah Code 41-1a-416, 41-1a-418, 41-6a-702, 59-13-102, and 72-6-121)

Utility/Private Incentives

Natural Gas Technical Assistance

Questar Gas offers technical assistance to customers interested in converting their vehicles to operate on compressed natural gas. The company provides financial analysis, fleet consulting, and fueling solutions.

Laws and Regulations

Compressed Natural Gas (CNG) Vehicle Aftermarket Conversion Requirements

Vehicles converted to operate on CNG must be inspected and certified in accordance with relevant safety standards by a CSA America certified CNG Fuel System Inspector. The vehicle must also be tested to ensure that it meets emissions standards in the applicable county, or the county with the most lenient emissions standards if the vehicle is registered in a county without its own emissions standards. A person who performs a conversion must certify to the vehicle owner that the conversion does not tamper with, circumvent, or otherwise affect the vehicle's on-board diagnostic system, if applicable. A CSA America certified CNG Fuel System Inspector must also inspect the vehicle every three years, or every 36,000 miles, and after a collision occurring at a speed greater than five miles per hour. The Utah Division of Air Quality may develop programs to facilitate coordination between government agencies and the private sector regarding emissions and anti-tampering compliance testing, vehicle safety, and potential improvements in the air quality of the state. (Reference Utah Code 19-1-406)

Public Access to State Compressed Natural Gas (CNG) Fueling Stations

The Utah Department of Administrative Services Division of Fleet Services (Division) may allow a private individual or entity to purchase CNG from a state-operated fueling station if there are no commercial fueling stations that meet the geographical needs of the individual or entity, and there is not an emergency that requires the state to reserve CNG for use by state or emergency vehicles. The Division provides information on obtaining a GasCard for fueling as well as state fueling network stations that are available to private individuals and entities. (Reference Utah Code 63A-9-702)

Natural Gas Rate Authorization

The Utah Public Service Commission (Commission) may allow a gas corporation to set a natural gas vehicle fuel rate that is less than full cost of service if it is reasonable and in the interest of the public. If the Commission approves such a request, the remaining costs may be spread to other customers of the gas corporation. (Reference Utah Code 54-4-13.1)

Alternative Fuel Vehicle Inspection and Permit

The State Tax Commission (Commission) may require vehicles operating on clean fuels to be inspected for safe operation. In addition, clean fuel vehicles that have a gross vehicle weight rating of more than 26,000 pounds or have more than three axels are required to obtain a special fuel user permit from the Commission. Clean fuels are defined as propane, compressed natural gas, liquefied natural gas, and electricity. (Reference Utah Code 59-13-102, 59-13-303, and 59-13-304)

Provision for Establishment of Alternative Fuel Use Mandate

The Utah Air Quality Board may require fleets that own 10 or more vehicles that are capable of being fueled at a central location to use clean fuels, if such a mandate is necessary to meet national air quality standards. Clean fuels are defined as propane, compressed natural gas, and electricity. Additional restrictions apply. (Reference Utah Code 19-2-105.3)

Low-Speed Vehicle Access to Roadways

Low-speed vehicles are only allowed access to roadways with speeds limits of up to 35 miles per hour, must comply with all federal and state motor vehicle regulations, and are required to display a slow-moving vehicle identification emblem on the rear of the vehicle. Low-speed vehicles are also subject to vehicle taxation requirements, including those related to special fuels, if applicable. Low-speed vehicles are exempt from emission inspections. Low-speed vehicles are defined as four-wheeled electric vehicles that operate at speeds up to 25 miles per hour and may carry up to four passengers, but do not include golf carts or off-road vehicles. (Reference Utah Code 41-6a-102, 41-6a-1508, 59-13-102, and 59-13-201)

Idle Reduction Requirement

Idling of any unattended vehicle is prohibited in Utah. Violators are subject to a penalty of up to $750 and/or up to 90 days imprisonment. Drivers on Utah roads are also encouraged to avoid excessive idling, which, as a general rule, is more than 10 to 15 seconds for passenger vehicles. Specifically, drivers are encouraged to turn off engines when loading or unloading, delivering, and picking up or dropping off passengers. Drivers of gasoline powered passenger vehicles are encouraged to limit engine warm-up time to 30 seconds and drivers of diesel powered passenger vehicles, buses, and trucks are encouraged to limit engine warm-up to the time the vehicle's manufacturer recommends, which is generally less than five minutes. Businesses, schools, airport authorities, and governmental entities are encouraged to post signs to discourage customer idling. (Reference Utah Code 41-6a-202, 41-6a-1403, 76-3-204, and 76-3-301)

School Bus Idle Reduction Regulations

School bus drivers must turn off bus engines as soon as possible at loading and unloading areas and only restart the engine when it is time to depart. Exceptions include extreme weather conditions and idling in traffic. At bus depots, drivers are required to limit engine warm-up to the time recommended by the engine manufacturer. All school bus drivers in the state receive a minimum of 30 minutes of idling reduction instruction during their annual service training. In addition, school districts must revise bus schedules to maximize efficiency and assign the cleanest buses to the longest routes. (Reference Utah Code 41-6a-1308 and Standards for Utah School Buses and Operations)

Local Vehicle Idling Regulations

A local highway authority may not enact an ordinance that prohibits or restricts an owner or operator of a vehicle from idling the vehicle's engine, unless the ordinance is primarily educational, specifies that a person must be issued at least three warnings before a fine is imposed, has the same fine structure as a parking violation, provides for the safety of law enforcement personnel enforcing the ordinance, and specifies that the ordinance may be enforced on public property or private property that is open to the general public. Exceptions apply. (Reference House Bill 104, 2012, and Utah Code 41-6a-208)