Utah passes HB91 to decarbonize transportation, clean fleet incentives

March 28, 2021 |

In Utah, the state legislation passed Utah HB 91, a bipartisan bill that reenacts and extends the availability of a state tax credit related to certain alternative fuel heavy-duty vehicles and makes technical and conforming changes to state law.

Sponsored by Rep. Andrew Stoddard (D-44) and Sen. Lincoln Fillmore (R-10), the bill encourages the transition of heavy-duty fleets to new, cleaner Class 7 & 8 vehicles fueled by natural gas, electric drivetrain, or hydrogen-electric drivetrain.  It was signed into law on March 22nd by Governor Spencer Cox.

This legislation allows for the rapid adoption of all viable clean technologies, works to achieve aggressive emissions reductions, and provides fleets the flexibility to choose the best clean vehicle technology solution that suits their needs,” said NGVAmerica President Dan Gage.

“Such credits provide commercial fleets with an added incentive to be part of the clean transportation solution,” said Brett Brown, Manager of Gas Operations, Western Gas Distribution for Dominion Energy and an NGVAmerica Board Member.  “By focusing on heavy-duty vehicles, this program works to get the dirtiest, oldest trucks with the greatest emissions impact off our roadways with added financial incentive to do so sooner rather than later in order to improve frontline community air quality today.”

The incentive is available to corporations and individuals purchasing a new qualified truck and is available for purchases made in 2021 through 2030.  At the outset, the credits are worth $15,000 for 2021 purchases and decline thereafter by $1,500 per year, providing an incentive for purchasers to act quickly to deploy cleaner technologies.  As enacted, the provision places an annual cap on total credits at $500,000 and includes a 25 percent set-aside for small fleets, defined as those with 40 or fewer heavy-duty vehicles registered in the state and owned by a single taxpayer.  Purchased vehicles utilizing the credit must travel more than 50 percent of their annual miles within the state.

The Utah Legislature has been a leader in promoting cleaner fuel.  A measure enacted in 2019 (HB 107) paved the way for utilities to invest in natural gas fueling stations, promoted acquisition of natural gas vehicles, and encouraged investments in renewable natural gas.

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Category: Policy

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