Introduced by Representative Bouricius of Burlington

BILL AS INTRODUCEDH.378

1999Page 1

H.378

Introduced by Representative Bouricius of Burlington

Referred to Committee on

Date:

Subject:Conservation; clunker retirement program; motor vehicle registration pollution surcharge; diesel fee

Statement of purpose: This bill proposes to establish a state program for purchasing certain old motor vehicles, defined as “clunkers.” The seller of a clunker will receive a voucher for up to $2,000.00 which may be used toward the purchase of a low polluting car or for public transit tickets. The bill proposes to fund the program with a car registration surcharge that is higher on expensive, highly polluting cars; lower on less expensive and less polluting cars; and is not imposed on low polluting cars. The bill also proposes to assess a diesel fee of one cent per gallon to pay for the program.

AN ACT RELATING TO ESTABLISHING A CLUNKER RETIREMENT PROGRAM AND FINANCING IT WITH A POLLUTION SURCHARGE ON CAR REGISTRATION AND A ONE CENT PER GALLON DIESEL FEE

It is hereby enacted by the General Assembly of the State of Vermont:

Sec. 1. 10 V.S.A. § 577 is added to read:

§ 577. CLUNKER RETIREMENT PROGRAM

(a) Definition. For purposes of this chapter, “clunker” means a pleasure car as defined in 23 V.S.A. § 4 or a motor vehicle that would be registered at the same fee as a pleasure car pursuant to 23 V.S.A. § 367, except a farm truck, which, according to criteria established in rules adopted by the secretary, classifies as likely to excessively pollute or unlikely to be adequately repaired and therefore a detriment to air quality and which has a likely fair market value at or below $2,000.00.

(b) Clunker retirement program. The secretary shall establish and implement a state program under this section for purchasing, dismantling, and recycling clunkers and for their replacement by clean cars or by increased use of public transportation. The secretary shall provide the general assembly with an annual report which explains the progress of the program, recommends funding levels, and suggests statutory or regulatory changes that might be appropriate to increase the efficient functioning of the program. In developing the program, the secretary shall adopt rules that:

(1) Establish a process by which a public transit provider or a new or used car dealer doing business in Vermont obtains and retains authority to participate in the clunker retirement program.

(2) Establish a process for the redemption of vouchers from public transit providers and from car dealers that are participating in the clunker retirement program.

(3) Establish a process for assuring eligibility of a person who desires to sell a clunker to the secretary.

(4) Establish guidelines for establishing voucher amount, when purchasing a clunker in exchange for a voucher. Since the goal of the program is to remove polluting clunkers from the fleet, the guidelines shall be devised so that the state pays more for the retirement of the clunkers that pollute the most, with secondary emphasis given to a clunker’s fair market value.

(c) Clean car list. The secretary shall establish a “clean car list,” which shall be determined annually, based exclusively on scientific research regarding automotive pollution per mile traveled. The pollution threshold for a motor vehicle that is eligible to be placed on the clean car list shall be established at a level that assures the inclusion of at least some cars with a market value of approximately $2,000.00.

(d) Owner eligibility. In order to be eligible to sell a clunker to the secretary, the owner of the clunker must establish the following to the satisfaction of the secretary:

(1) that the clunker was registered in Vermont on or before January 1, 1999 and continues to be registered in Vermont;

(2) that the owner of the clunker possesses a valid Vermont driver’s license.

(3) that the owner has not previously sold a clunker to the secretary.

(e) Vouchers.

(1) Upon the purchase of a clunker, the secretary will issue to the owner-seller a voucher in an amount agreed upon by the parties but not exceeding a value of $2,000.00. A voucher may be used by the seller for either or both of the following:

(A) payment toward the purchase of a car on the clean car list, from a new or used car dealer who is doing business in the state of Vermont and who is participating in the clunker retirement program; or

(B) the purchase of public transit tickets or credit, with carriers that are participating in the clunker retirement program.

(2) A voucher is not valid if transferred to another person.

(f) Clunker retirement. The secretary shall arrange for the dismantling and recycling of purchased clunkers, in a manner that maximizes the utility and value of the purchased motor vehicles and their components. Proceeds from clunker reclamation and recycling shall be deposited into the clunker retirement fund created under this section.

(g) Clunker retirement fund.

(1) There is created in the state treasury a fund to be known as the clunker retirement fund, to be expended by the secretary of the agency of natural resources. The fund shall consist of the following: proceeds from clunker reclamation and recycling, proceeds of the motor vehicle pollution surcharge assessed under 3 V.S.A. § 2822(o), one cent of the diesel fuel fee assessed under 23 V.S.A. § 3003, and appropriations of the general assembly. All balances in the fund accounts at the end of any fiscal year shall be carried forward and remain a part of the fund. Interest earned by the fund shall be deposited into the fund. Disbursements from the fund shall be made by the state treasurer on warrants drawn by the commissioner of finance and management.

(2) The secretary may authorize disbursements from the clunker retirement fund, as funds are available, for:

(A) The costs of purchasing, dismantling, and recycling clunkers, including the costs of redemption of vouchers from public transit providers and from car dealers that are participating in the clunker retirement program.

(B) The costs of administering the clunker retirement program.

Sec. 2. 3 V.S.A. § 2822(o) is added to read:

(o)(1) In addition to any other requirement or fee required for registration, effective on January 1, 2000, a motor vehicle registered under 23 V.S.A. chapter 7 may be assessed a pollution surcharge, if required by rules adopted by the secretary[CAB1]. The secretary, in consultation with the secretary of transportation, annually shall establish vehicle classifications and pollution categories that shall be used to place registering vehicles that are subject to the surcharge into one of the surcharge rate categories established in this subsection. The surcharge rates shall be imposed as follows:

(A) no surcharge shall be imposed upon:

(i) a very low polluting vehicle;

(ii) a vehicle with very low book value; or

(iii) a low polluting vehicle with low book value;

(B) $25.00 shall be imposed upon:

(i) a low polluting vehicle with moderate book value; or

(ii) a moderately polluting vehicle with low book value;

(C) $50.00 shall be imposed upon:

(i) a very polluting vehicle with low book value; or

(ii) a low polluting vehicle with high book value;

(D) $100.00 shall be imposed upon a moderately polluting vehicle with moderate book value;

(E) $175.00 shall be imposed upon:

(i) a very polluting vehicle with moderate book value; or

(ii) a moderately polluting vehicle with high book value;

(F) $250.00 shall be imposed upon a very polluting vehicle with high book value.

(2) The secretary annually will adjust the categories as appropriate, and as required to establish a balance between revenues and costs of the clunker retirement program. A surcharge may be assessed only against a pleasure car as defined in 23 V.S.A. § 4 or a motor vehicle that would be registered at the same fee as a pleasure car pursuant to 23 V.S.A. § 367, except a farm truck.

(3) Revenues from the surcharge shall be deposited into the clunker retirement fund created under 10 V.S.A. § 577.

* * * Diesel Fuel Tax * * *

Sec. 3. 23 V.S.A. § 3003(a) is amended to read:

(a) A tax of 16 cents per gallon and a fee of one centtwo cents per gallon is imposed on each gallon of fuel established pursuant to the provisions of 10V.S.A. § 1942:

* * *

Sec. 4. 23 V.S.A. § 3015(7) is amended to read:

(7) Notwithstanding subdivision (5) of this section, the one centtwocents per gallon fee imposed by this chapter shall be deposited as follows:

(A) One cent shall go into the petroleum cleanup fund established by 10 V.S.A. § 1941. These fees shall be deemed the petroleum distributor licensing fee established by 10 V.S.A. § 1942.

(B) One cent shall go into the clunker retirement fund created under 10 V.S.A. § 577.

[CAB1]1