Revision: May 7, 2020, 6:45 p.m.
HB 1444-FN - AS AMENDED BY THE HOUSE
12Mar2020... 0514h
2020 SESSION
20-2361
08/03
HOUSE BILL 1444-FN
SPONSORS: Rep. McWilliams, Merr. 27; Rep. Klein-Knight, Hills. 11; Rep. Saunderson, Merr. 9; Rep. Thompson, Ches. 14; Rep. Balch, Hills. 38; Rep. Backus, Hills. 19; Rep. Moffett, Merr. 9; Sen. Fuller Clark, Dist 21
COMMITTEE: Science, Technology and Energy
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AMENDED ANALYSIS
This bill requires the adoption of California Low Emission/Zero Emission vehicle standards to protect public health, enable New Hampshire automotive customers to utilize the extended emissions-specific warranty, and to enable New Hampshire automotive dealers to carry Zero Emissions Vehicles in stock. The bill also makes an appropriation to the department of environmental services to fund an additional position.
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Explanation: Matter added to current law appears in bold italics.
Matter removed from current law appears [in brackets and struckthrough.]
Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.
12Mar2020... 0514h 20-2361
08/03
STATE OF NEW HAMPSHIRE
In the Year of Our Lord Two Thousand Twenty
Be it Enacted by the Senate and House of Representatives in General Court convened:
1 Statement of Purpose. The general court finds that:
I. Implementation of the California Low Emission/Zero Emission Vehicle (LEV/ZEV) program pursuant to section 177 of the Clean Air Act will result in consumer, public health, and environmental benefits for citizens of New Hampshire. Currently the states of Vermont, Maine, Massachusetts, New York, New Jersey, Connecticut, Oregon, Rhode Island, Maryland, and Colorado have adopted the LEV/ZEV standards, while the states of Delaware, Pennsylvania, and Washington have adopted only the LEV requirements. New Hampshire is the only state in the Northeast that has not yet adopted this program.
II. Motor vehicles account for approximately one-half of the emissions of air pollutants that cause the formation of ground level ozone and over one-third of the state’s greenhouse gas emissions. Ground level ozone is a respiratory irritant that can cause severe health impacts to the sick, the very young, the elderly, and those with chronic respiratory conditions such as asthma. Greenhouse gases contribute to climate change, which is causing more frequent and more extreme weather events that have led to loss of life and significant damage to statewide infrastructure, particularly roads and bridges.
III. Although vehicles sold in New Hampshire currently comport with the California emissions standards (as a result of the harmonization of federal and California standards through 2025), New Hampshire consumers cannot benefit from the extended emissions-specific warranty provisions of the California standards because New Hampshire has not formally adopted the California standards. New Hampshire automobile dealers currently cannot obtain some types of vehicles that manufacturers only allocate to ZEV states, thus limiting consumer choice within New Hampshire. In addition, New Hampshire will benefit from reduced emissions upon California's adoption of post-2025 standards, when the federal and California emissions standards will no longer be in alignment.
2 New Section; Adoption of California Air Resources Board Standards. Amend RSA 125-C by inserting after section 21 the following new sections:
125-C:22 Adoption of Vehicle Emissions Standards; Federal Clean Air Act.
I.(a) Notwithstanding RSA 541-A:3-b, on or before January 1, 2022, the commissioner of the department of environmental services shall adopt rules, in accordance with the provisions of RSA 541-A, to implement the light duty motor vehicle exhaust emission standards of the state of California section 1961.2 and the light duty motor vehicle greenhouse gas exhaust emission standards of the state of California section 1961.3, and shall amend such regulations from time to time, in accordance with changes in such standards. The regulations shall be applicable to new motor vehicles sold in the state of New Hampshire upon the year of departmental rule adoption as authorized by the Federal Clean Air Act. Such regulations may incorporate by reference the California motor vehicle emissions standards set forth in final regulations issued by the California Air Resources Board pursuant to Title 13, California Code of Regulations, as of October 1, 2019 (last amended October 1, 2019), and promulgated under the authority of Division 26 of the California Health and Safety Code, as may be amended from time to time. Nothing in this section shall limit the commissioner's authority to regulate motor vehicle emissions for any other class of vehicle.
II.(a) Rules adopted pursuant to this section shall also include requirements for the sale of zero emissions vehicles (ZEV) or related provisions set forth in California Code of Regulations, section 1962.2 starting on January 1, 2022, and using New Hampshire specific vehicle numbers.
(b) Such rules shall include a credit system in accordance with the regulations cited in paragraph I for manufacturers of low emission vehicles (LEVs) and ZEVs. Manufacturers shall receive credits for LEV/ZEV vehicles delivered to New Hampshire lots beginning January 1, 2020. Credits received between January 1, 2020 and January 1 of the year the department adopts rules under paragraph I shall be treated as received on January 1 of the year of departmental rule adoption for purposes of expiration. Credits received by January 1 of the year of departmental rule adoption shall not be traded or shared with other states or manufacturers.
III.(a) The administration of this section by the department shall be funded through the motor vehicle air pollution abatement fund established by RSA 125-S:3.
125-C:23 Penalties. Notwithstanding RSA 125-C:15, the commissioner of the department of environmental services shall:
I. Impose a civil penalty not to exceed $37,500 on any manufacturer who sells, attempts to sell, or causes to be offered for sale a new motor vehicle that fails to meet the applicable emission standards in RSA 125-C:22.
II. Impose a civil penalty not to exceed $5,000 per zero-emission vehicle credit on a manufacturer that produces and delivers for sale in New Hampshire fewer ZEVs or ZEVs than required to meet its ZEV credit obligation under rules adopted by the department in a given model year.
III. All funds received from penalties under this section shall be deposited in the motor vehicle air pollution abatement fund established in RSA 125-S:3
3 Inspection Stickers; Fees. Amend RSA 266:2 to read as follows:
266:2 Fees. The fee for inspection stickers shall be [$3.25] $3.75 for each sticker furnished an approved inspection station. The division shall transfer [$.25] $.50 of each fee collected under this section to the motor vehicle air pollution abatement fund established by RSA 125-S:3 and [$.25] $.50 of each fee collected under this section to the general fund. All unused stickers returned by the approved inspection station to the division shall be refundable at the rate of [$3.25] $3.75 each, except that unused stickers purchased from the division for a fee of $2.50 shall be refundable at the same rate at which the stickers were purchased.
4 Motor Vehicle Air Pollution Abatement Fund; Funding Source Added. Amend RSA 125-S:4 to read as follows:
125-S:4 Fund Established; Collection. Funding for the motor vehicle air pollution abatement fund shall be from the portion of the motor vehicle inspection fee established by RSA 266:2 and from penalties collected for sales of motor vehicles failing to meet applicable emission standards and misuse of zero-emission vehicle credits under RSA 125-C:23.
5 Department of Environmental Services; Positions Established; Appropriation. There is established within the department of environmental services one classified environmentalist III position for the purposes of implementing the requirements of RSA 125-C:22. The sum necessary to pay the salary, benefits, and other costs related to the positions established in this section is hereby appropriated to the department of environmental services for the biennium ending June 30, 2021. This appropriation shall be in addition to any other appropriations made to the department. The governor is authorized to draw a warrant for said sum out of any money in treasury not otherwise appropriated.
6 Effective Date. This act shall take effect 60 days after its passage.
20-2361
Amended 5/6/20
HB 1444-FN- FISCAL NOTE
AS AMENDED BY THE HOUSE (AMENDMENT #2020-0514h)
FISCAL IMPACT: [ X ] State [ ] County [ ] Local [ ] None
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| Estimated Increase / (Decrease) | |||
STATE: | FY 2020 | FY 2021 | FY 2022 | FY 2023 |
Appropriation | $0 | $93,000 | $0 | $0 |
Revenue | $0 | Indeterminable Increase | Indeterminable Increase | Indeterminable Increase |
Expenditures | $0 | $103,000 | Indeterminable Increase | Indeterminable Increase |
Funding Source: | [ X ] General [ ] Education [ ] Highway [ X ] Other - The Motor Vehicle Air Pollution Abatement Fund | |||
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METHODOLOGY:
This bill requires the adoption of California Low Emission/Zero Emission vehicle standards to protect public health, enable New Hampshire automotive customers to utilize the extended emissions-specific warranty, and to enable New Hampshire automotive dealers to carry Zero Emissions Vehicles (ZEVs) in stock. The bill also makes an appropriation to the Department of Environmental Services to fund an additional position. The Department of Environmental Services indicates the bill would require it to adopt rules to implement the program, and to have the rules in place for vehicles delivered for sale in the State starting on January 1, 2021. The bill contains a general fund appropriation to the Department to establish a new Environmentalist III position to implement the program for the biennium ending June 30, 2021. After June 30, 2021, the program would be funded by the motor vehicle air pollution abatement fund, established by RSA 125-S:3. The fund is currently financed by a transfer of $0.25 for each inspection sticker sold by the Division of Motor Vehicles. This bill would increase the inspection sticker cost from $3.25 to $3.75. Of the $0.50 increase, $0.25 would be deposited in the motor vehicle air pollution abatement fund and $0.25 would be transferred to the general fund. The bill provides that a civil penalty not to exceed $37,500 shall be levied on any manufacturer who sells, attempts to sell, or causes to be offered for sale a new motor vehicle that fails to meet the applicable emission standards in RSA 125-C:22. In addition, a civil penalty not to exceed $5,000 per zero-emission vehicle credit would be levied on a manufacturer that produces and delivers for sale in New Hampshire fewer ZEVs than required to meet its ZEV credit obligation. Penalties collected would be deposited in the motor vehicle air pollution abatement fund. The Department estimated the fiscal impact of the bill based on the following assumptions:
The Department of Safety indicates the inspection system would be reprogrammed for the increased cost per inspection sticker. The VISION system (Vehicle Information System In an On-line Network) would also require reprogramming in order to receive updated information from the inspection system and distribute the increased amounts to the respective funds. The Department assumes these programming costs would be less than $10,000. The Department estimates State revenue would increase by about $700,000, with an additional $350,000 deposited in the general fund and $350,000 deposited in the motor vehicle air pollution abatement fund. This revenue estimate is based on approximately 1,400,000 inspection stickers sold annually.
There would be no impact on county or local revenues and expenditures.
AGENCIES CONTACTED:
Departments of Environmental Services and Safety