Utah Office of Administrative Rules

NOTICE OF SUBSTANTIVE CHANGE

TYPE OF FILING: Repeal

Filing ID: 58102

Rule or section number:

R307-124

1. Agency Information

Title catchline:

Environmental Quality, Air Quality

Building:

Multi-Agency State Office Building

Street address:

195 N 1950 W

City, state:

Salt Lake City, UT

Mailing address:

PO Box 144820

City, state and zip:

Salt Lake City, UT 84114-4820

2. Contact Persons

Name:

Phone:

Email:

Jazmine Lopez

801-536-4050

jazminelopez@utah.gov

Please address questions regarding information on this notice to the persons listed above.

3. General Information

A. Rule or section catchline:

R307-124. General Requirements: Conversion to Alternative Fuel Grant Program

B. Purpose of the new rule or reason for the change:

The Division of Air Quality (Division) is submitting this filing to repeal Rule R307-124 because the program it governs is no longer active.

During the 2026 General Session, the Utah Legislature passed HB 545, Budgetary Modifications, which repeals the account providing funds for the Conversion to Alternative Fuel Grant Program, as well as Title 19, Chapter 2, Part 3, which described the definitions, conditions, and rulemaking provisions of the program.

Remaining funds for the Alternative Fuel Grant Program Fund were removed by the Utah Legislature in May 2025 and moved to the General Fund (HB 3, item 182 and SB 3, item 127).

Because no additional funds are anticipated to be placed into the account and the program is being repealed by the legislature, this rule is no longer necessary for agency operations.

C. Summary of the new rule or change:

This filing is a full repeal of Rule R307-124. It eliminates the procedures and standards for administrative hearings and public comment opportunities previously associated with this specific program.

By repealing this rule, the Division is updating the Utah Administrative Code to reflect that the program and its corresponding funding have been discontinued.

4. Legislative Action Information

A. Are any changes in this filing because of state legislative action?

Changes are because of legislative action.

B. If yes, any bill number and session:

HB 545 (2026 General Session)

5. Fiscal Information

Provide an estimate and written explanation of the aggregate anticipated cost or savings to:

A. State budget:

Remaining funds were removed by the Utah Legislature in May 2025. No additional funds are anticipated to be placed into the Alternative Fuel Grant Program Fund. Therefore, the repeal of this rule will not have an impact on state budgets.

B. Local governments:

C. Small businesses ("small business" means a business employing 1-49 persons):

D. Non-small businesses ("non-small business" means a business employing 50 or more persons):

E. Persons other than small businesses, non-small businesses, state, or local government entities ("person" means any individual, partnership, corporation, association, governmental entity, or public or private organization of any character other than an agency):

F. Compliance costs for affected persons:

6. Regulatory Impact Summary Table

Enter the cost or savings in the relevant cell. If there is no cost or savings, enter, "$0." If a cost or savings is inestimable, enter, "inestimable."

Fiscal Cost

FY2027

FY2028

FY2029

FY2030

FY2031

State Budget

Local Governments

Small Businesses

Non-Small Businesses

Other Persons

Total Fiscal Cost

Fiscal Benefits

FY2027

FY2028

FY2029

FY2030

FY2031

State Budget

Local Governments

Small Businesses

Non-Small Businesses

Other Persons

Total Fiscal Benefits

Net Fiscal Benefits

7. Regulatory Impact Analysis Approval

The Commissioner of the Department of Environmental Quality, Tim Davis, has reviewed and approved this regulatory impact analysis.

8. Family Impact Information

A. The agency has considered this rule's impact on family health, stability, and formation:

☒

9. Citation Information

Provide citations to the statutory authority for the rule. If there is also a federal requirement for the rule, provide a citation to that requirement:

Section 19-2-104

Section 19-1-403.3

11. Public Notice Information

The public may submit written or oral comments to the agency identified in box 1.

A. Comments will be accepted until:

08/14/2026

B. A public hearing (optional) will be held (The public may request a hearing by submitting a written request to the agency, as outlined in Section 63G-3-302 and Rule R15-1.):

Date:

Time (hh:mm AM/PM):

Place (physical address or URL):

08/12/2026

03:00 PM – 04:00 PM

A public hearing is set for 08/12/2026.

Further details may be found below. The hearing will be cancelled should no request for one be made by 08/10/2026, at 10 AM MST.

The final status of the public hearing will be posted on 08/10/2026, after 10 AM MST. The status of the public hearing may be checked at the following website location under the corresponding rule.

https://deq.utah.gov/public-notices-archive/air-quality-rule-plan-changes-open-public-comment

Interested persons can participate in person or electronically, via the internet.

In Person:

MASOB

195 N 1950 W,

Salt Lake City, UT

First Floor, Air Quality Board Room

Virtual Attendance:

Time zone: America/Denver

Google Meet joining info:

Video call link:

https://meet.google.com/vro-ppdv-pbi

Or dial: (US) +1 409-422-5239

PIN: 252 397 785#

12. Effective Date Information

This rule change MAY become effective on:

(NOTE: This is the date the agency anticipates making the filing effective. It is NOT the effective date)

10/07/2026

13. Agency Authorization Information

Agency head or

designee and title:

Bryce C. Bird, Director, Division of Air Quality

Date:

06/04/2026

R307. Environmental Quality, Air Quality.

[R307-124. General Requirements: Conversion to Alternative Fuel Grant Program.

R307-124-1. Authorization and Purpose.

(1) This rule is authorized by Section 19-2-304, which establishes the requirements, procedures, criteria, and definitions used to determine

eligibility for the Conversion to Alternative Fuel Grant Program.

(2) The procedures of this rule constitute the minimum requirements for the application and the awarding of funds that are designated for

the Conversion to Alternative Fuel Grant Program.

R307-124-2. Definitions.

The following additional definitions apply to R307-124:

"Alternative fuel" means alternative fuel as defined in Subsection 19-2-302(2).

"Clean fuel grant" means clean fuel grant as defined in Subsection 19-2-302(4).

"Conversion equipment" means conversion equipment as defined in Subsection 19-2-302(5).

"Cost" means cost as defined in 19-2-302(6).

"Division" means the Division of Air Quality.

"Eligible vehicle" means eligible vehicle as defined in Subsection 19-2-302(9).

R307-124-3. Minimum Qualifications for an Applicant to Receive a Clean Fuel Grant.

(1) All applicants must be a registered business within the State of Utah and have a business license from the city or county in which they

are located.

(2) Applicants that are applying for a clean fuel grant for a conversion of an eligible vehicle to run on propane must meet the requirements

of R710-6 Liquefied Petroleum Gas (LPG) Rules.

R307-124-4. Minimum Qualifications for a Person that Installs Conversion Equipment on an Eligible Vehicle.

The following are the minimum qualifications for a person that installs conversion equipment on an eligible vehicle:

(1) A person that installs conversion equipment on an eligible vehicle to run on natural gas shall be:

(a) a Canadian Standards Association (CSA) America Compressed Natural Gas (CNG) Fuel System Inspector; or

(b) an Automotive Service Excellence (ASE) F1-certified technician.

(2) A person that installs conversion equipment on an eligible vehicle to run on propane shall be certified under R710-6 LPG Rules.

(3) A person that installs conversion equipment on an eligible vehicle to run on electricity shall be an ASE-certified technician.

R307-124-5. Preliminary Approval Application Procedure.

To be considered for a clean fuel grant all applicants shall apply for preliminary approval on forms provided by the Division as required by

Subsection 19-2-304(1)(e), and shall provide additional information as requested by the Division.

(1) All applicants shall:

(a) acknowledge that receiving preliminary approval does not guarantee reimbursement by the Division, and preliminarily approved

projects shall meet all the eligibility requirements listed in R307-124 before receiving the clean fuel grant for an eligible vehicle;

(b) certify under penalty of perjury and subject to provisions of Utah Code Section 76-8-504 ("written false statement"), that all savings on

the cost of conversion equipment in the amount of the clean fuel grant will be passed to the owner of the eligible vehicle, as required in Subsection

19-2-303(2)(b);

(c) certify that the applicant is currently a registered business within the State of Utah and has a current business license; and

(d) agree to the provisions found in Subsection 19-2-303(3).

(2) Applicants applying for a clean fuel grant for a conversion of an eligible vehicle to run on natural gas shall provide the installer's ASE

F-1 or CSA America certification number.

(3) Applicants that are applying for a clean fuel grant for a conversion of an eligible vehicle to run on propane shall provide the applicant's

dealer license number and the installer's LPG certification number required by R710-6 LPG Rules.

(4) Applicants that are applying for a clean fuel grant for a conversion of an eligible vehicle to run on electricity shall provide the

installer's ASE certification number.

(5) Preliminary approval will encumber funds for up to 60 calendar days from the preliminary application's approval.

R307-124-6. Final Approval Procedure and Payment Process.

Once an applicant has encumbered funds for a conversion, the applicant has up to 60 calendar days to obtain final approval from the

Division. To obtain final approval, the applicant shall apply for final approval on forms provided by the Division, as required by Subsection 19-2-

304(1)(e), and shall provide additional information as requested by the Division.

(1) To demonstrate that a conversion of a vehicle to be fueled by natural gas is eligible, an applicant shall submit the following

documentation to the Director:

(a) A copy of the applicant's business registration from the Utah Department of Commerce and current business license from the city or

county in which they are located;

(b) a copy of the installer's CSA America or ASE F-1 certification;

(i) the name, address, and phone number of the applicant;

(ii) the name of the installer;

(iii) the vehicle identification number (VIN);

(iv) the date of conversion; and

(v) the cost of the conversion (itemizing the equipment, labor, and the clean fuel grant);

(d)(i) a copy of the vehicle inspection report dated after the conversion, from an approved county I/M station, showing that the converted

motor vehicle meets all county emissions requirements for all installed fuel systems if the motor vehicle is registered within a county with an I/M

program; or

(ii) in all other areas of the state, a signed statement by the installer that includes the VIN, the installer's ASE or CSA America certification

number, and states that the eligible vehicle's conversion is functional;

(e) a copy of the current Utah vehicle registration; and

(f) a signed statement by the installer certifying that the conversion does not tamper with, circumvent, or otherwise affect the vehicle's on-

board diagnostic system, in accordance with Utah Code 19-1-406(2).

(2) To demonstrate that a conversion of a vehicle to be fueled by propane is eligible, an applicant shall submit the following

documentation to the director:

(a) A copy of the applicant's business registration from the Utah Department of Commerce and current business license from the city or

county in which they are located;

(b) a copy of the applicant's current dealer license required under R710-6;

(d)(i) a copy of the vehicle inspection report, dated after the conversion, from an approved county I/M station, showing that the converted

motor vehicle meets all county emissions requirements for all installed fuel systems, if the motor vehicle is registered within a county with an I/M

program, or

(ii) in all other areas of the state, a signed statement by an ASE-certified technician that includes the VIN, the technician's ASE

certification number, and states that the conversion is functional;

(e) Provide the EPA Certificate of Conformity, or equivalent documentation that is consistent with requirements outlined in 40 CFR Part

85 and 40 CFR Part 86, as published in Federal Register Volume 76 Page 19830 on April 8, 2011, or an executive order from the California Air

Resources Board;

(f) an original or copy of the purchase order, customer invoice, or receipt that includes:

(i) the name, address, and phone number of the applicant;

(ii) the name of the installer;

(iii) the VIN;

(iv) the date of conversion; and

(v) the cost of the conversion (itemizing the equipment, labor, and the clean fuel grant); and

(g) a copy of the current Utah vehicle registration.

(3) To demonstrate that a conversion of a motor vehicle to be powered by electricity is eligible, an applicant shall submit the following

documentation to the director:

(a) A copy of the applicant's business registration from the Utah Department of Commerce and current business license from the city or

county in which they are located;

(b) a copy of the current Utah vehicle registration;

(i) the name, address, and phone number of the applicant;

(ii) the name of the installer;

(iii) the VIN;

(iv) the date of conversion; and

(v) the cost of the conversion (itemizing the equipment, labor, and the clean fuel grant);

(d) If the converted eligible vehicle does not have any auxiliary sources of combustion emissions, then the applicant shall submit a signed

statement by an ASE-certified technician that includes the VIN, the technician's ASE certification number, and states that the conversion is functional

and that the converted motor vehicle does not have any auxiliary source of combustion emissions.

(e) If the converted eligible vehicle has an auxiliary source of combustion emissions, the applicant shall submit:

(i) a copy of the vehicle inspection report after the conversion, from an approved county I/M station, showing that the converted motor

vehicle meets all county emissions requirements for all installed fuel systems, if the motor vehicle is registered within a county with an I/M program;

(ii) in all other areas of the state, a signed statement by an ASE-certified technician that includes the VIN, the technician's ASE

certification number, and states that the conversion is functional; and

(iii) provide the EPA Certificate of Conformity, or equivalent documentation that is consistent with requirements outlined in 40 CFR Part

85 and 40 CFR Part 86, as published in Federal Register Volume 76 Page 19830 on April 8, 2011, or an executive order from the California Air

Resources Board.

(4) All applicants shall complete and submit an IRS form W-9 to the Division.

(5) Approved applications shall continue to comply with the provisions of this rule.

R307-124-7. Grant Program Limitations.

Grant applications shall not be approved if:

(1) Awarding a grant to an applicant would result in the Department's inability to fulfill its obligations under this program or this rule;

(2) The applicant does not meet the approval requirements of Section R307-124-5;

(3) The fund balance is zero; or

(4) Awarding a grant to an applicant would result in the fund balance being less than zero.

R307-124-8. Review.

The Division reserves the right to request supplemental information it may deem necessary from an applicant, in order to effectively

administer the program and this rule.

KEY: air pollution, alternative fuels, tax credits, motor vehicles

Date of Last Change: September 8, 2016

Notice of Continuation: August 10, 2021

Authorizing, and Implemented or Interpreted Law: 19-2-301 through 305; 19-1-403.3]

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Rule 124: General Requirements: Conversion to Alternative Fuel Grant Program