Bill Text: MI HB4899 | 2011-2012 | 96th Legislature | Introduced


Bill Title: Environmental protection; air pollution; diesel idling; restrict. Amends 1994 PA 451 (MCL 324.101 - 324.90106) by adding pt. 69.

Spectrum: Partisan Bill (Democrat 5-0)

Status: (Introduced - Dead) 2011-09-08 - Printed Bill Filed 09/08/2011 [HB4899 Detail]

Download: Michigan-2011-HB4899-Introduced.html

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

HOUSE BILL No. 4899

 

September 7, 2011, Introduced by Reps. Tlaib, Switalski, Irwin, Townsend and Hovey-Wright and referred to the Committee on Regulatory Reform.

 

     A bill to amend 1994 PA 451, entitled

 

"Natural resources and environmental protection act,"

 

(MCL 324.101 to 324.90106) by adding part 69.

 

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 

PART 69 DIESEL POLLUTION CONTROL

 

     Sec. 6901. As used in this part:

 

     (a) "Auxiliary power unit" means a portable, vehicle-mounted

 

system that provides climate control and power for diesel vehicles

 

without using the propulsion engine.

 

     (b) "Best available control technology" or "BACT" means level

 

3 controls or another emissions control device required by section

 

6905, 6906, or 6907 that does not result in a net increase of

 

emissions of nitrogen oxides.

 

     (c) "CARB" means the California air resources board.

 


     (d) "CCV" means a closed crankcase ventilation system,

 

equipment that completely closes the crankcase of a diesel engine

 

to the atmosphere and routes the crankcase vapor to the engine

 

intake air system or the exhaust system.

 

     (e) "Certified engine configuration" means a new, rebuilt, or

 

remanufactured engine configuration with respect to which all of

 

the following requirements are met:

 

     (i) Is certified or verified by USEPA or CARB.

 

     (ii) Meets or is rebuilt or remanufactured to a more stringent

 

set of engine emissions standards, as determined by the department.

 

     (iii) If the engine configuration replaces an existing engine or

 

vehicle, the existing engine is returned to the supplier for

 

remanufacturing to a more stringent set of engine emissions

 

standards or for scrappage.

 

     (f) "CMAQ program" means the congestion mitigation and air

 

quality program established under 23 USC 149.

 

     (g) "Contractor" means a person that enters into a public

 

works contract with a public agency, or any person that enters into

 

an agreement with such a person, to perform work or provide labor

 

or services related to the public works contract.

 

     (h) "Cost-effectiveness" means the total dollar amount of an

 

expenditure divided by the total number of tons of PM reduction

 

attributable to the expenditure.

 

     (i) "Defective" means malfunctioning due to age, wear,

 

malmaintenance, or design defects.

 

     (j) "Department" means the department of environmental

 

quality.

 


     (k) "Fleet" means 1 or more diesel vehicles or mobile or

 

stationary diesel engines owned, controlled, or operated by the

 

same person or by any person that controls, is controlled by, or

 

has common control with that person.

 

     (l) "Freight facility" means a port, airport, railyard, or

 

intermodal shipping facility where PM emissions (as total

 

particulates) from all activities associated with operations of

 

that facility, including, but not limited to, emissions from marine

 

vessels, cargo handling equipment, and truck and train traffic

 

associated with the facility, exceed 100 tons per year.

 

     (m) "Fund" means the diesel emissions reduction fund created

 

in section 6910(1).

 

     (n) "Funding program" means the diesel emissions reduction

 

funding program created pursuant to section 6912.

 

     Sec. 6902. As used in this part:

 

     (a) "Heavy-duty diesel vehicle" means a motor vehicle with a

 

gross vehicle weight rating of at least 14,000 pounds that is

 

powered by a diesel engine.

 

     (b) "Incremental cost" means the cost of an emission reduction

 

measure less the baseline cost avoided by the emission reduction

 

measure that would otherwise be incurred in the normal course of

 

business. Incremental costs may include added lease, fuel, or

 

capital costs.

 

     (c) "Level 1 control" means a verified diesel emission control

 

device that achieves a PM emission reduction of 25% or more from

 

uncontrolled engine emission levels.

 

     (d) "Level 2 control" means a verified diesel emission control

 


device that achieves a PM emission reduction of 50% or more from

 

uncontrolled engine emission levels.

 

     (e) "Level 3 control" means a verified diesel emission control

 

device that achieves a PM emission reduction of 85% or more from

 

uncontrolled engine emission levels or that reduces emissions to

 

less than or equal to 0.01 grams of PM per brake horsepower-hour.

 

Level 3 control includes repowering or replacing the existing

 

diesel engine with an engine meeting USEPA's 2007 heavy-duty

 

highway diesel standards or, in the case of a nonroad engine, an

 

engine meeting the USEPA's tier 4 nonroad diesel standards. Level 3

 

control also includes new diesel engines meeting these emissions

 

standards.

 

     (f) "Load/unload location" means a location where vehicles

 

load or unload.

 

     (g) "MDOT" means the state transportation department.

 

     (h) "Medium-duty diesel vehicle" means a motor vehicle with a

 

gross vehicle weight rating of at least 8,500 pounds and less than

 

14,000 pounds that is powered by a diesel engine.

 

     (i) "Motor vehicle" means any self-propelled vehicle designed

 

for transporting persons or property on a street or highway.

 

     (j) "Nonconforming" means not in compliance with the emission

 

control requirements of section 6905.

 

     (k) "Nonroad engine" means an internal combustion engine,

 

including the fuel system, that is not used in a motor vehicle or a

 

vehicle used solely for competition and that is not a stationary

 

source. However, nonroad engine includes an internal combustion

 

engine used to power a generator, compressor, or similar equipment

 


used in a construction program or project.

 

     (l) "Nonroad vehicle" means a vehicle or equipment that is

 

powered by an internal combustion engine of 50 or more horsepower

 

and greater, and that is not a motor vehicle or a vehicle used

 

solely for competition. Nonroad vehicle may include an excavator,

 

backhoe, crane, compressor, generator, bulldozer, or similar

 

equipment. Unless otherwise indicated in this part, nonroad vehicle

 

does not include a locomotive or marine vessel.

 

     Sec. 6903. As used in this part:

 

     (a) "Opacity" means the percentage of light obstructed from

 

passage through an exhaust smoke plume.

 

     (b) "Person" means an individual or a partnership,

 

corporation, association, governmental entity, or other legal

 

entity.

 

     (c) "PM" means particulate matter.

 

     (d) "PM2.5" means PM that is 2.5 micrometers or smaller in

 

diameter.

 

     (e) "Public agency" means this state or a city, county,

 

township, village, or other political subdivision, a school

 

district, a state institution of higher education, or a department,

 

agency, board, or commission of any of these, or an authority

 

established by any of these pursuant to law.

 

     (f) "Public works contract" means a contract with a public

 

agency for a program or project involving the construction,

 

demolition, restoration, rehabilitation, repair, renovation, or

 

abatement of any building, tunnel, excavation, roadway, park,

 

bridge, or other structure; a contract with a public agency

 


regarding the preparation for any such program or project; or a

 

contract with a public agency for any final work involved in the

 

completion of any such program or project.

 

     (g) "Regulated highway diesel vehicle" means any of the

 

following heavy-duty diesel vehicles, as further defined in an

 

inclusive manner in rules promulgated under section 6920:

 

     (i) Commercial and transit buses.

 

     (ii) Garbage trucks.

 

     (iii) School buses.

 

     (iv) Trucks owned by or operated on behalf of public agencies,

 

including, but not limited to, dump trucks, graders, and snow

 

plows.

 

     (v) Freight and cargo delivery trucks with central fleet

 

maintenance or fueling locations within this state.

 

     (vi) On-road cargo handling equipment operated at ports,

 

airports, and railyards.

 

     (vii) Such other heavy-duty highway diesel vehicles as the

 

department may designate by rule promulgated under section 6920.

 

     (h) "Retrofit" means to equip a diesel motor vehicle or

 

nonroad vehicle with new PM-emissions-reducing parts or technology

 

verified by USEPA or CARB after manufacture of the original engine,

 

or with a CCV.

 

     (i) "SAE J1667" means society of automotive engineers (SAE)

 

recommended practice SAE J1667 "Snap-Acceleration Smoke Test

 

Procedure for Heavy-Duty Diesel Powered Vehicles", as issued

 

February 1996 ("1996-02").

 

     (j) "Significant expansion" means any modification, or series

 


of modifications occurring within a consecutive 10-year period, to

 

a freight facility or operations thereof, including, but not

 

limited to, physical changes to the facility or an increase in the

 

hours of operation, that is commenced after the effective date of

 

the amendatory act that added this section and that would result in

 

a maximum potential net increase in annual PM2.5 emissions of 10

 

tons or more from all activities associated with operations of the

 

facility under usual business conditions. "Significantly expand"

 

has a corresponding meaning.

 

     (k) "SOS" means the secretary of state.

 

     Sec. 6904. As used in this part:

 

     (a) "Tampered" means missing, modified, or disconnected.

 

     (b) "Truckstop" means a roadside service station especially

 

for trucks.

 

     (c) "Ultra-low sulfur diesel fuel" means diesel fuel that has

 

a sulfur content of no more than 15 parts per 1,000,000.

 

     (d) "USEPA" means the United States environmental protection

 

agency.

 

     (e) "USEPA's 2007 heavy-duty highway diesel standards" means

 

those regulations promulgated by USEPA and published at 66 FR 5002

 

(January 18, 2001).

 

     (f) "USEPA's tier 4 nonroad diesel standards" means those

 

regulations promulgated by USEPA and published at 69 FR 38958 (June

 

29, 2004).

 

     (g) "Verified diesel emission control device" means either of

 

the following:

 

     (i) An emission control device or strategy that has been

 


verified to achieve a specified diesel particulate matter reduction

 

by USEPA or CARB.

 

     (ii) Replacement or repowering with an engine that is certified

 

to specific PM emissions performance by USEPA or CARB.

 

     (h) "Verified technology" means a diesel emission control

 

device, an advanced truckstop electrification system, or an

 

auxiliary power unit, that has been verified by USEPA or CARB.

 

     Sec. 6905. (1) Subject to subsections (2), (3), and (4),

 

beginning July 1, 2014, a fleet owner or operator shall not operate

 

a regulated highway diesel vehicle unless at least 1/2 of the

 

regulated highway diesel vehicles in that fleet have level 3

 

controls installed, properly maintained, and functioning. Except as

 

provided in subsections (2), (3), and (4), beginning July 1, 2015,

 

a fleet owner or operator shall not operate a regulated highway

 

diesel vehicle unless that vehicle has level 3 control installed,

 

properly maintained, and functioning.

 

     (2) For the proposed of subsection (1), both of the following

 

apply:

 

     (a) Until July 1, 2016, a regulated highway diesel vehicle

 

that has level 1 control installed and functioning before the

 

effective date of the amendatory act that added this section shall

 

be considered to have level 3 controls installed, properly

 

maintained, and functioning.

 

     (b) Until July 1, 2018, a regulated highway diesel vehicle

 

that has level 2 control installed and functioning before the

 

effective date of the amendatory act that added this section shall

 

be considered to have level 3 controls installed, properly

 


maintained, and functioning.

 

     (3) An owner or operator of a fleet, including any fleet owned

 

or operated by a related person, consisting in the aggregate of 5

 

or fewer regulated highway diesel vehicles shall have an additional

 

2 years to comply with the requirements of subsection (1).

 

     (4) If the department makes a written finding that a verified

 

diesel emissions control device with level 3 controls does not

 

exist for a regulated highway diesel vehicle, properly maintained

 

and functioning level 2 controls that are available and appropriate

 

for the vehicle as determined by the department may be substituted

 

for level 3 controls for the purposes of subsection (1).

 

     (5) Beginning July 1, 2014, a person shall not own or operate

 

a regulated highway diesel vehicle that vents crankcase emissions.

 

A vehicle with a CCV, or other equally effective means of

 

preventing crankcase emissions permitted by rules promulgated under

 

section 6920, complies with this subsection.

 

     (6) Subsections (1) and (5) do not apply to any regulated

 

highway diesel vehicle whose propulsion engine was operated in this

 

state for fewer than 1,000 miles and less than 100 hours during the

 

preceding calendar year, as confirmed by engine operation data from

 

a properly functioning odometer and nonresettable hour meter.

 

     (7) A person shall not sell, deliver, or distribute diesel

 

fuel for diesel motor vehicles other than ultra-low sulfur diesel

 

fuel. A person shall not operate a diesel motor vehicle using

 

diesel fuel other than ultra-low sulfur diesel fuel.

 

     (8) Beginning July 1, 2015, the owner of any heavy-duty diesel

 

vehicle that does not have best available control technology

 


installed, that is registered to operate in this state, and that is

 

powered by an engine 25 years or older shall rebuild or replace the

 

engine with a certified engine configuration meeting BACT and

 

obtain written certification of compliance with this requirement

 

from the department.

 

     (9) A person who violates this section may be ordered to pay a

 

civil fine of not more than $5,000.00 per violation. Each day of

 

noncompliance for each vehicle constitutes a separate violation. In

 

addition, the court may order the SOS to suspend the registration

 

of a vehicle that violates this section and not to issue any new or

 

renewal registration for that vehicle until the department notifies

 

the SOS that the violation has been corrected. If requested by the

 

owner or operator, the department shall inspect the vehicle and

 

determine if the violation has been corrected. The department shall

 

notify the SOS if the violation has been corrected. Before

 

determining that a violation of this section has not been

 

corrected, the department shall provide the owner or operator of a

 

vehicle with an opportunity for an evidentiary hearing under the

 

administrative procedures act of 1969, 1969 PA 306, MCL 24.201 to

 

24.328. Civil fines collected under this subsection shall be

 

deposited in the fund.

 

     Sec. 6906. (1) Beginning July 1, 2013, a person shall not do

 

any of the following:

 

     (a) Sell, deliver, or distribute nonroad diesel fuel other

 

than ultra-low sulfur diesel fuel.

 

     (b) Operate a nonroad diesel engine, a diesel locomotive, or a

 

diesel marine engine classified by USEPA as a category 1 or

 


category 2 marine engine using diesel fuel other than ultra-low

 

sulfur diesel fuel.

 

     (2) While traveling in waters of this state to or from any

 

port in this state, the operator of any oceangoing vessel powered

 

by a marine diesel engine classified by USEPA as a category 3

 

engine shall use marine fuel with a sulfur content no greater than

 

0.5% (5,000 parts per million) from July 1, 2014 to December 31,

 

2014, or 0.1% (1,000 parts per million) beginning January 1, 2015.

 

     (3) The department shall consider adopting by rule, as

 

expeditiously as possible, any CARB regulation that reduces PM

 

emissions from nonroad diesel engines. The department shall not

 

adopt the CARB regulation if the department finds, after notice and

 

hearing, that adoption of the regulation would not be consistent

 

with 42 USC 7543 or would yield only de minimis diesel PM

 

reductions or health benefits within this state.

 

     (4) Except as provided in subsection (5), on and after January

 

1, 2017, any public agency that owns, operates, or leases any

 

diesel nonroad vehicle shall install and operate level 3 controls

 

on the nonroad vehicle. The public agency shall operate, maintain,

 

and service the emissions control technology as recommended by the

 

manufacturer. Failure by a public agency to meet this condition

 

shall subject the agency to a reduction of state funding or a

 

denial of increased state funding in accordance with rules to be

 

promulgated by the department of treasury, in consultation with the

 

department of environmental quality, pursuant to the administrative

 

procedures act of 1969, 1969 PA 306, MCL 24.201 to 24.328.

 

     (5) Subsection (4) does not apply to a diesel nonroad vehicle

 


if the department makes a written finding that a verified diesel

 

emissions control device with level 3 controls does not exist for

 

the vehicle and the agency installs level 2 controls that are

 

available and appropriate for the vehicle as determined by the

 

department. However, if the department makes a written finding that

 

a verified diesel emissions control device with level 2 controls

 

does not exist for the vehicle, the vehicle shall be retrofitted

 

with level 1 controls that are available and appropriate for the

 

vehicle as determined by the department. All findings made pursuant

 

to this subsection and information relating thereto shall be made

 

available to the public, and the department shall post the

 

findings.

 

     (6) A person who violates subsection (1) or (2) or a rule

 

promulgated under subsection (3) may be ordered to pay a civil fine

 

of not more than $5,000.00 per violation. Each day of noncompliance

 

of each misfueled vehicle constitutes a separate violation. Civil

 

fines paid under this subsection shall be deposited in the fund.

 

     Sec. 6907. (1) Beginning September 1, 2015, any solicitation

 

for a public works contract, and any public works contract, shall

 

include the following provisions and all contractors shall comply

 

with the provisions in the performance of the contract:

 

     (a) Ultra-low sulfur diesel fuel or an ultra-low sulfur diesel

 

blend with a sulfur content of 15 ppm or less shall be used in all

 

diesel nonroad vehicles and heavy-duty diesel vehicles.

 

     (b) Contractors shall not vent crankcase emissions from diesel

 

nonroad vehicles and heavy-duty diesel vehicles. A vehicle with a

 

CCV, or other equally effective means of preventing crankcase

 


emissions permitted by rules promulgated under section 6920,

 

complies with this subsection.

 

     (c) Contractors shall not permit nonessential idling of diesel

 

nonroad and heavy-duty diesel vehicles, and shall not exceed the

 

idle limits for motor vehicles set forth in section 6909(2).

 

     (d) All diesel nonroad vehicles (not including diesel

 

generators) on site for more than 3 days during the project shall

 

have installed and operate the following, as applicable:

 

     (i) A minimum of level 1 controls by January 1, 2016.

 

     (ii) For engines with a rating of 25 or more but less than 75

 

horsepower, level 2 controls by July 1, 2019.

 

     (iii) For engines with a rating of 75 horsepower or more, level

 

3 controls by July 1, 2019.

 

     (e) All heavy-duty diesel vehicles and diesel generators on

 

site for more than 3 days during the project shall have installed

 

and operate the following, as applicable:

 

     (i) A minimum of level 1 controls by January 1, 2016.

 

     (ii) Level 3 controls by July 1, 2016.

 

     (f) Each diesel nonroad vehicle, heavy-duty diesel vehicle,

 

and diesel generator on site shall display a compliance sticker

 

clearly and conspicuously indicating its installed level of

 

emissions control.

 

     (g) All emissions control technology shall be operated,

 

maintained, and serviced as recommended by the manufacturer.

 

     (2) A public works contract shall provide full or partial

 

reimbursement from the public works project funds for incremental

 

costs incurred by contractors that are necessary to bring diesel

 


nonroad vehicles and heavy-duty diesel vehicles used on that

 

specific project into compliance with the requirements of

 

subsection (1)(d)(ii) and (iii) and (e)(ii) for that specific project.

 

However, reimbursement shall not be provided for costs incurred

 

after 6 months following the applicable compliance date. Each

 

relevant agency shall establish annually the reimbursement

 

percentage to be applied to all of its public works contracts for

 

each calendar year from 2015 through 2019. Eligible contractors

 

applying for such reimbursement shall provide such information as

 

required by the public agency. Only 1 reimbursement shall be

 

provided for each diesel nonroad vehicle or heavy-duty diesel

 

vehicle. Expenditures are not eligible for reimbursement under this

 

subsection to the extent that they were incurred to bring a vehicle

 

into compliance with a different provision of this act or any other

 

federal or state law or regulation, or if such expenditures have

 

been previously reimbursed using funds from any other public works

 

contract or any other public agency. Each application for

 

reimbursement shall include appropriate contractor certifications

 

concerning these eligibility prohibitions.

 

     (3) The costs that are reimbursed by the public agency under

 

subsection (2) shall not be included in the project bid or

 

considered by the public agency in evaluating bids.

 

     (4) A public agency entering into a public works contract may

 

provide reimbursement for retrofits of project diesel nonroad

 

vehicles and heavy-duty diesel vehicles authorized under subsection

 

(2) in the form of rebates if the department promulgates rules

 

under section 6920 governing such rebates. Any such rules shall

 


establish the amounts of rebates for particular types of vehicles

 

and rebate policies, procedures, and safeguards that are

 

substantially similar to the provisions of section 6914.

 

     (5) Any public works contract shall provide for enforcement of

 

the contract provisions required by subsection (1) and penalties

 

for noncompliance with such provisions.

 

     (6) Subsection (1)(d)(iii) and (e)(ii) does not apply to a diesel

 

nonroad vehicle or heavy-duty diesel vehicle if the public agency

 

makes a written finding that a verified diesel emissions control

 

device with level 3 controls does not exist for such vehicle and

 

the finding is approved, in writing, by the department. In that

 

case, the vehicle may operate on the project site only if it has

 

been retrofitted with level 2 controls that are available and

 

appropriate for such vehicle as determined by the department.

 

However, if the public agency makes a written finding that a

 

verified diesel emissions control device with level 2 controls does

 

not exist for the vehicle and the finding is approved, in writing,

 

by the department, the vehicle may operate on site once it has been

 

retrofitted with such level 1 controls that are available and

 

appropriate for the vehicle as determined by the department. All

 

findings made pursuant to this subsection and information relating

 

thereto shall be made available to the public, and the department

 

shall post the findings and information on its website.

 

     Sec. 6908. (1) A freight facility shall not commence or

 

operate a significant expansion without a permit issued by the

 

department under this section. An application for a permit shall be

 

submitted on a form provided by the department and shall include or

 


be accompanied by all of the following:

 

     (a) A baseline inventory of annual PM emissions from all

 

sources associated with operations of the freight facility,

 

including, as appropriate, emissions from oceangoing vessels,

 

harborcraft, locomotives, cargo handling equipment, and commercial

 

medium-duty and heavy-duty trucks serving the facility. The

 

baseline inventory shall be based on data collected by the freight

 

facility for the full calendar year immediately preceding the

 

commencement of the significant expansion.

 

     (b) An inventory of annual potential PM emissions from all

 

sources associated with operations of the freight facility for each

 

of the first 5 years following the projected completion of the

 

proposed expansion.

 

     (c) A plan to reduce PM emissions from sources associated with

 

operations of the freight facility to prevent an increase over the

 

baseline inventory of more than 10 tons per year of PM emissions

 

from all sources associated with operations of the freight facility

 

during any of the years following the proposed expansion.

 

     (d) Documentation that the facility has provided opportunity

 

for public comment, including public hearings as appropriate, on

 

the inventory data and the plan to reduce PM emissions at the

 

freight facility. The documentation shall include a summary of

 

significant comments received.

 

     (2) The department shall issue or deny a permit by not more

 

than 180 days after submission of an administratively complete

 

application under subsection (1). The department shall issue the

 

permit if the plan under subsection (1)(c) is adequate to limit PM

 


emissions to the level specified in subsection (1)(c).

 

     (3) Any freight facility that commences or operates a

 

significant expansion without a permit issued by the department

 

under subsection (2) may be ordered to pay a civil fine of not more

 

than $25,000.00 for each day of noncompliance.

 

     (4) A freight facility issued a permit under subsection (2)

 

shall submit to the department by March 1 of each year a report

 

that describes the freight facility's programs and efforts to

 

comply with its emission reduction plan under subsection (1)(c).

 

The report shall include an annual inventory of PM emissions from

 

all sources associated with operations of the freight facility

 

during the preceding calendar year. Not more than 90 days after

 

submission of a report under this subsection, the department shall

 

approve, approve with conditions, or disapprove the report. The

 

freight facility shall correct any remaining errors, deficiencies,

 

or omissions in the report within 60 days of the department's

 

action and resubmit the report for further action by the department

 

under this subsection.

 

     (5) A freight facility that does not have a fully approved

 

report under subsection (4) by September 1 of any year with respect

 

to PM emissions for the prior year may be ordered to pay a civil

 

fine of not more than $5,000.00 per day of noncompliance.

 

     (6) Beginning 2 years following issuance by the department of

 

a facility expansion permit under subsection (2), if annual

 

aggregate PM emissions from the freight facility, as shown in the

 

most recent annual report under subsection (4) as approved by the

 

department, exceed the baseline inventory established pursuant to

 


this section by more than 10 tons per year, the freight facility

 

shall be ordered to pay a civil fine in an amount equal to 125% of

 

the cost of reducing aggregate facility PM emissions to not more

 

than 10 tons per year over the baseline inventory as estimated by

 

the department.

 

     (7) Civil fines collected under this section shall be

 

deposited in the fund.

 

     (8) This section does not limit any other authority of the

 

department with respect to any emissions source at a freight

 

facility.

 

     Sec. 6909. (1) The owner of a load/unload location shall not

 

cause a medium-duty or heavy-duty diesel motor vehicle to idle for

 

a period greater than 30 minutes while waiting to load or unload at

 

the location.

 

     (2) The owner or operator of a medium-duty or heavy-duty

 

diesel motor vehicle shall not cause or permit the vehicle to idle

 

for more than 5 minutes in any 60-minute period except as provided

 

in subsection (1), (3), or (4).

 

     (3) Subsection (2) does not apply under any of the following

 

circumstances:

 

     (a) A medium-duty or heavy-duty diesel motor vehicle idles

 

while forced to remain motionless because of on-highway traffic or

 

an official traffic control device or signal or at the direction of

 

a law enforcement official.

 

     (b) A medium-duty or heavy-duty diesel motor vehicle idles

 

solely to prevent a safety or health emergency.

 

     (c) Any of the following apply:

 


     (i) An ambulance or a police, fire, public safety, military, or

 

other emergency or law enforcement vehicle idles while used in an

 

emergency or training capacity and not for cabin comfort.

 

     (ii) Any other vehicle idles while being used in an emergency

 

capacity and not for cabin comfort.

 

     (d) A vehicle's primary propulsion engine idles for

 

maintenance, servicing, repairing, or diagnostic purposes, but only

 

to the extent that idling is required for such activity.

 

     (e) A vehicle idles as part of a state or federal inspection

 

to verify that all equipment is in good working order, but only to

 

the extent that idling is required as part of the inspection.

 

     (f) Idling of the primary propulsion engine is necessary to

 

power work-related mechanical or electrical operations other than

 

propulsion, such as operating an extension, loading or unloading,

 

mixing or processing cargo, or straight truck refrigeration. This

 

subdivision does not apply to idling for cabin comfort or the

 

operation of nonessential on-board equipment.

 

     (g) An armored vehicle idles when a person remains inside the

 

vehicle to guard the contents or while the vehicle is being loaded

 

or unloaded.

 

     (4) Subsections (1) and (2) do not prohibit operating an

 

auxiliary power unit as an alternative to idling the vehicle's

 

primary propulsion engine if all of the following apply:

 

     (a) The vehicle is equipped with a model year 2006 or older

 

engine.

 

     (b) The verified PM emissions of the auxiliary power unit are

 

less than those of the primary propulsion engine.

 


     (5) Before 1 year after the effective date of the amendatory

 

act that added this section, a person who violates subsection (1)

 

or (2) shall be given a written warning. Beginning 1 year after the

 

effective date of the amendatory act that added this section:

 

     (a) The owner of a load/unload location who violates

 

subsection (1) is responsible for a state civil infraction and may

 

be ordered to pay a civil fine of not more than $750.00.

 

     (b) The registered owner of a medium-duty or heavy-duty diesel

 

motor vehicle who violates subsection (2) is responsible for a

 

state civil infraction and may be ordered to pay a civil fine of

 

not more than $750.00.

 

     (c) The operator of a medium-duty or heavy-duty diesel motor

 

vehicle who violates subsection (2) is responsible for a state

 

civil infraction and may be ordered to pay a civil fine of not more

 

than $250.00.

 

     (6) Half of the proceeds of fines collected under subsection

 

(5) shall be deposited in the fund. The remaining 1/2 of the

 

proceeds of such fines shall be forwarded as follows:

 

     (a) If the law enforcement officer issuing the civil

 

infraction citation is employed by this state, to the state

 

treasurer for deposit in the general fund.

 

     (b) If the law enforcement officer is employed by a political

 

subdivision, to the treasurer of that political subdivision for

 

deposit in its general fund.

 

     (7) By 3 years after the effective date of the amendatory act

 

that added this section, each truckstop having a capacity of 25 or

 

more trucks shall install truckstop electrification facilities

 


covering at least 80% of its parking spaces that allow diesel

 

trucks to connect to the electrical grid to obtain power for on-

 

board components or stationary components for heating, cooling, and

 

other needs that otherwise would be met by idling the propulsion

 

engines of the diesel trucks.

 

     (8) A person who violates subsection (7) may be ordered to pay

 

a civil fine of not more than $750.00 per violation, with each day

 

of noncompliance constituting a separate violation. Civil fines

 

paid under this subsection shall be deposited in the fund.

 

     (9) Within 1 year after the effective date of the amendatory

 

act that added this section, the department shall conduct an

 

analysis of idling practices of locomotive and commercial marine

 

diesel vehicle operators and the effects of such practices. The

 

owner or operator of such a diesel vehicle shall provide

 

information that the department may request for the purpose of

 

completing the analysis. Within 1 year and 26 weeks after the

 

effective date of the amendatory act that added this section, based

 

on such analysis, the department shall promulgate rules under

 

section 6920 requiring locomotive and commercial marine diesel

 

vehicles operating within this state to eliminate nonessential

 

idling to the extent such regulation is not preempted by federal

 

law.

 

     (10) A person who violates subsection (9) or a rule required

 

under subsection (9) is responsible for a state civil infraction

 

and may be ordered to pay a civil fine of not more than $750.00.

 

     (11) Half of the proceeds of fines collected under subsection

 

(10) shall be deposited in the fund. The remaining 1/2 of the

 


proceeds of such fines shall be forwarded as follows:

 

     (a) If the law enforcement officer issuing the civil

 

infraction citation is employed by this state, to the state

 

treasurer for deposit in the general fund.

 

     (b) If the law enforcement officer is employed by a political

 

subdivision, to the treasurer of that political subdivision for

 

deposit in its general fund.

 

     (12) The department, after consultation with MDOT, shall

 

create and implement a plan to do both of the following:

 

     (a) Provide information to diesel vehicle operators and owners

 

on the idle reduction requirements of this section, the economic

 

and environmental benefits of idle reduction, and the techniques

 

and technologies available to reduce unnecessary idling.

 

     (b) Provide information and training to local and state law

 

enforcement officers on the requirements of this section and how to

 

effectively monitor compliance with and enforce those requirements.

 

     Sec. 6910. (1) The diesel emissions reduction fund is created

 

within the state treasury.

 

     (2) The fund consists of the funds, contributions, fees, and

 

surcharges under subsections (4), (5), and (6) and section 6911 and

 

fines and fees deposited in the fund pursuant to sections 6905,

 

6906, 6908, 6909, 6913(7), 6914(11), and 6916. The state treasurer

 

may receive money or other assets from any other source for deposit

 

into the fund. The state treasurer shall direct the investment of

 

the fund. The state treasurer shall credit to the fund interest and

 

earnings from fund investments. Money in the fund at the close of

 

the fiscal year shall remain in the fund and shall not lapse to the

 


general fund. The department of natural resources and environment

 

shall be the administrator of the fund for auditing purposes.

 

     (3) The department shall expend money from the fund, upon

 

appropriation, only for the funding program. However, not more than

 

10% of the inspection fee revenue collected under section 6916 may

 

be expended by the department, upon appropriation, for costs

 

incurred in carrying out the inspection program. In addition, not

 

more than 2% of the remaining money deposited in the fund may be

 

expended, upon appropriation, for administrative costs incurred by

 

the department and the state treasurer in exercising their powers

 

and discharging their duties under this part. Money allocated to an

 

eligible diesel emission reduction measure may be designated as a

 

work project pursuant to section 451a of the management and budget

 

act, 1984 PA 431, MCL 18.451a, and if not expended in any fiscal

 

year may be carried over to succeeding fiscal years.

 

     (4) A surcharge is imposed on the lease or rental of diesel

 

nonroad vehicles in an amount equal to 1% of the lease or rental

 

amount. The state treasurer shall adopt any procedures needed for

 

the collection, administration, and enforcement of the surcharge

 

authorized by this subsection and shall deposit all surcharges to

 

the credit of the fund.

 

     (5) A surcharge is imposed on the lease or rental of heavy-

 

duty diesel vehicles that are of a model year of 2006 or earlier

 

and that are not equipped with level 3 controls. The amount of the

 

surcharge is 2.5% of the total lease or rental amount. The state

 

treasurer shall adopt any procedures needed for the collection,

 

administration, and enforcement of the surcharge authorized by this

 


subsection and shall deposit all surcharges to the credit of the

 

fund.

 

     (6) Beginning with the 2012-2013 fiscal year, not less than

 

50% of funds expended on an annual basis from accounts related to

 

the CMAQ program shall be made available for the purpose of funding

 

eligible diesel emission reduction measures under the funding

 

program. Non-CMAQ-program money in the fund may be used for

 

compliance with the 20% match required by the CMAQ program.

 

     Sec. 6911. (1) For the purpose of funding revolving loans to

 

finance truckstop electrification facilities as required by section

 

6909(7) and other diesel emission reduction measures eligible for

 

funding under the funding program, the department may issue revenue

 

bonds payable from principal and interest payments on the loans.

 

The department shall provide notice to the appropriations

 

committees of the senate and the house of representatives at least

 

30 days before bonds are offered for sale. A reasonable allowance

 

for legal and consultant services, cost of printing and issuing of

 

the bonds, interest on the bonds becoming due before collection of

 

the first available loan payments and for a period of 1 year

 

thereafter, and other incidental expenses may be included in the

 

cost for which bonds are to be issued. The bonds shall be

 

authorized by the director and may be issued in 1 or more series as

 

shall be determined by the director.

 

     (2) The department may do 1 or more of the following with

 

respect to bonds under subsection (1):

 

     (a) Sell and deliver and receive payment for bonds.

 

     (b) Approve interest rates, purchase prices, discounts,

 


premiums, maturities, principal amounts, interest payment dates,

 

redemption rights at the option of the department or the holder,

 

and the place and time of delivery and payment for the bonds.

 

     (c) Deliver bonds to refund prior bonds or partly to refund

 

bonds and partly for other authorized purposes.

 

     (d) Select which outstanding bonds will be refunded, if any,

 

by the new issue of bonds.

 

     (e) Any other matters and procedures necessary to complete the

 

issuance and delivery of the bonds.

 

     (3) An order of the director authorizing the issuance of bonds

 

shall contain all of the following:

 

     (a) A description in reasonable detail of the truckstop

 

electrification program and other diesel emission reduction

 

measures, for which the bonds are to be issued.

 

     (b) The form of the bonds and all of the following:

 

     (i) The maturity date or dates for the bonds, which shall not

 

be later than 30 years after the issuance of the bonds.

 

     (ii) The principal amount of and principal payment dates for

 

the bonds.

 

     (iii) The interest rate or rates for the bonds or a provision

 

that bonds will not bear any interest.

 

     (iv) The redemption provisions, with or without premium, for

 

the bonds, if any.

 

     (v) The authorized denominations for the bonds.

 

     (vi) Whether the bonds may be sold at a discount or for a

 

premium.

 

     (vii) The manner in which the bonds will be executed.

 


     (viii) Any other provision concerning the bonds or the security

 

for the bonds the director considers appropriate.

 

     (c) A provision that payments on loans for truckstop

 

electrification or other diesel emission reduction measures shall

 

be pledged for the payment of the bonds.

 

     (d) A covenant that the terms of new loans shall be revised

 

from time to time within the limits permitted by law when necessary

 

to ensure that the revenues to be derived from the fees shall be

 

sufficient to pay the principal of and interest on bonds issued

 

pursuant to this section and other obligations of the department in

 

connection with the issuance of bonds.

 

     (e) A provision requiring the fiscal agent to set aside money

 

from the diesel revenue bond receiving fund established under

 

subsection (9) into a fund to be designated as the diesel debt

 

service fund in a sum proportionately sufficient to provide for the

 

payment of the principal of and interest upon all bonds payable

 

from the debt service fund as and when the principal and interest

 

become due and payable in the manner prescribed by the director. In

 

addition, the order shall authorize the director to provide that a

 

reasonable excess amount may be set aside by the fiscal agent from

 

time to time as determined by the director in the diesel debt

 

service fund to produce and provide a reserve to meet a possible

 

future deficiency in the diesel debt service fund. The order shall

 

further provide that out of the revenues remaining each quarter,

 

after having first met the requirements of the debt service fund,

 

including the reserve for the fund, the director may by direction

 

to the fiscal agent set aside additional money in the debt service

 


fund for the purpose of calling bonds for redemption, subject to

 

approval by the state administrative board. The resolution shall

 

also contain a provision for the investment of funds held by the

 

fiscal agent.

 

     (f) A provision that money on deposit in the diesel revenue

 

bond receiving fund after setting aside the amounts for the diesel

 

debt service fund is surplus money and shall be deposited quarterly

 

by the fiscal agent upon the order of the director in the state

 

treasury in the diesel emissions reduction fund.

 

     (g) The terms and conditions under which additional bonds,

 

payable from payments on loans for truckstop electrification and

 

other diesel emission reduction measures and of equal standing with

 

a prior issue of bonds, may be issued.

 

     (h) A provision for deposit and expenditure of the proceeds of

 

sale of the bonds and for investment of the proceeds of sale of the

 

bonds and of other funds of the department relating to bonds

 

authorized by this part.

 

     (i) A provision that in the event of a default in the payment

 

of principal of or interest on the bonds, or in the performance of

 

an agreement or covenant contained in the resolution, the holders

 

of a specified percentage of the outstanding bonds may institute 1

 

or more of the following for the equal benefit of the holders of

 

all of the bonds:

 

     (i) An action of mandamus or any other suit, action, or

 

proceeding to enforce the rights of the holders of the bonds.

 

     (ii) An action upon the defaulted bonds or coupons.

 

     (iii) Any other action as may be provided by law.

 


     (4) Any bond issued under this section shall state that it is

 

not a general obligation of this state, but is a revenue bond

 

payable only from repayment of loans for truckstop electrification

 

and other diesel emission reduction measures. Nothing in this part

 

authorizes this state to incur debt contrary to the state

 

constitution of 1963 or laws of this state. The holders of the

 

bonds shall not have any lien, mortgage, or other encumbrances upon

 

any property of this state, real, personal, or mixed. Bonds shall

 

be fully negotiable within the meaning of the negotiable

 

instruments law of this state.

 

     (5) The director may issue bonds for the purpose of refunding

 

any obligations issued under this part or may authorize a single

 

issue of bonds in part for the purpose of refunding such

 

obligations. Bonds issued under this subsection may be sold in the

 

manner otherwise provided for the sale of bonds in this section. If

 

sold, that portion of the proceeds representing the refunding

 

portion may be either applied to the payment of the obligations

 

refunded or deposited in escrow for their retirement.

 

     (6) The maximum rate of interest on bonds issued under this

 

section shall be that set forth for bonds in the revised municipal

 

finance act, 2001 PA 34, MCL 141.2101 to 141.2821. The sale and

 

award of bonds shall be conducted and made by the director at a

 

public or private sale. If a public sale is held, the bonds shall

 

be advertised for sale once not less than 7 days before sale in a

 

publication with statewide circulation that carries as a part of

 

its regular service notices of the sales of municipal bonds and

 

that has been designated in the resolution as a publication

 


complying with these qualifications. The notice of sale shall be in

 

the form designated by the director.

 

     (7) Except as provided in subsection (6), bonds issued under

 

this section are not subject to the revised municipal finance act,

 

2001 PA 34, MCL 141.2101 to 141.2821.

 

     (8) The issuance of bonds under this section is subject to the

 

agency financing reporting act, 2002 PA 470, MCL 129.171 to

 

129.177.

 

     (9) All payments on loans for truckstop electrification or

 

other diesel emission reduction measures shall be deposited with

 

the state treasurer, who shall act as the fiscal agent for the

 

department. The state treasurer shall establish a special

 

depositary account to be designated "diesel revenue bond receiving

 

fund". The necessary expenses of the fiscal agent incurred by

 

reason of his or her duties under this part shall be paid from the

 

diesel revenue bond receiving fund. The director may designate

 

banks or trust companies to act as paying agents for bonds issued

 

pursuant to this section. The paying agent shall be paid from the

 

diesel debt service fund.

 

     Sec. 6912. (1) Not more than 1 year of the effective date of

 

the amendatory act that added this section, the department, in

 

consultation with the state treasurer, shall establish by rule a

 

diesel emissions reduction funding program.

 

     (2) The funding program shall consist of either a grant

 

program or a rebate program, or both, as determined by the

 

department in its sole discretion. Under a grant program, the

 

department shall provide grants and low-cost revolving loans from

 


the fund, on a competitive basis, for eligible measures to achieve

 

significant reductions of diesel PM emissions in accordance with

 

section 6913. Under a rebate program, the department shall provide

 

rebates from the fund in accordance with section 6914.

 

     (3) In administering the funding program, the department shall

 

do all of the following:

 

     (a) Manage funding program funds and oversee the funding

 

program.

 

     (b) Produce guidelines, protocols, and criteria for eligible

 

emission reduction measures.

 

     (c) Develop methodologies for evaluating emission reduction

 

measure benefits and cost-effectiveness.

 

     (d) Develop procedures for monitoring whether the emissions

 

reductions projected for grants awarded for emission reduction

 

measures under this chapter are actually achieved.

 

     (e) Prepare reports regarding the progress and effectiveness

 

of the funding program.

 

     (f) Take all appropriate and necessary actions so that

 

emissions reductions achieved through the funding program may be

 

credited by USEPA to the appropriate emissions reduction objectives

 

in the state implementation plan.

 

     Sec. 6913. (1) A grant program established under section 6912

 

shall be implemented as provided in this section.

 

     (2) Subject to legislative appropriations, the department

 

shall annually allocate at its discretion some or all of the money

 

available in the fund to the grant program. Subject to legislative

 

appropriations, grant program funds not expended in a given year

 


may be transferred to the grant program or any rebate program

 

established under section 6912 for the following year at the

 

department's discretion.

 

     (3) Subject to section 6910(3), the department shall

 

distribute funds available for each fiscal year for eligible

 

emission reduction measures under the grant program in accordance

 

with the following priority:

 

     (a) First, to diesel fleets owned and operated by a public

 

agency.

 

     (b) If funds are remaining after all eligible emission

 

reduction measures have been funded under subdivision (a), then to

 

privately owned diesel fleets operated for the benefit of the

 

public pursuant to a contract with a public agency.

 

     (c) If funds are remaining after all eligible emission

 

reduction measures have been funded under subdivision (b), then to

 

privately owned diesel fleets operating on private business.

 

     (4) To receive a grant or loan under the grant program, the

 

applicant shall submit to the department an application at a time

 

required by the department and on a form provided by the

 

department. An application under this subsection shall include all

 

of the following:

 

     (a) A description of the air quality of the area in which the

 

emission reduction measure fleets will operate.

 

     (b) A description of the emission reduction measure proposed

 

by the applicant, including any certified engine configuration or

 

verified technology proposed to be used or funded in the emission

 

reduction measure and the means by which the emission reduction

 


measure will achieve a significant reduction in diesel emissions.

 

     (c) An evaluation using methodology approved by the department

 

of the quantifiable and unquantifiable benefits of the emissions

 

reductions of the proposed emission reduction measure.

 

     (d) An estimate of the cost of the proposed emission reduction

 

measure.

 

     (e) A description of the age and expected effective lifetime

 

of the equipment to be used or funded in the proposed emission

 

reduction measure.

 

     (f) A description of the diesel fuel available in the areas to

 

be served by the proposed emission reduction measure, including the

 

sulfur content of the fuel.

 

     (g) Provisions for the monitoring and verification of the

 

emission reduction measure.

 

     (h) Such other information as may be required by the

 

department.

 

     (5) The department shall determine which emission reduction

 

measures are eligible for grants, from the following list:

 

     (a) Installation of a retrofit technology, including any

 

incremental costs of a repowered or new diesel engine, that

 

significantly reduces PM emissions through development and

 

implementation of a certified engine configuration or a verified

 

diesel emission control device for a medium-duty or heavy-duty

 

diesel motor vehicle, a diesel nonroad vehicle, a commercial marine

 

engine, or a locomotive.

 

     (b) Installation of a CCV on a vehicle or equipment described

 

in subdivision (a).

 


     (c) Programs or emission reduction measures to reduce long-

 

duration idling using verified technology involving a vehicle

 

described in subdivision (a). Truckstop electrification facilities

 

are eligible for low-cost revolving loans but not eligible for

 

grants.

 

     (6) In providing a grant or loan under the grant program, and

 

subject to subsection (3), the department shall give priority to

 

otherwise eligible emission reduction measures within each of the 3

 

priority categories described in subsection (3) that, as determined

 

by the department, meet all of the following requirements:

 

     (a) Maximize public health benefits.

 

     (b) Are cost-effective.

 

     (c) Serve areas that meet 1 or more of the following

 

requirements:

 

     (i) Have the highest population density.

 

     (ii) Are poor air quality areas, including areas identified by

 

the department as in nonattainment or maintenance of national

 

ambient air quality standards for a criteria pollutant, federal

 

class I areas, or areas with toxic air pollutant concerns.

 

     (iii) Receive a disproportionate quantity of air pollution from

 

diesel fleets, including truckstops, ports, rail yards, terminals,

 

and distribution centers.

 

     (iv) Use a community-based collaborative process involving

 

multiple interested parties to reduce toxic emissions.

 

     (d) Include a certified engine configuration or verified

 

technology that has a long expected useful life.

 

     (e) Will maximize the useful life of any certified engine

 


configuration or verified technology used or funded by the project.

 

     (f) Conserve diesel fuel.

 

     (g) Use ultra-low sulfur diesel fuel.

 

     (7) Except for a measure involving a marine vessel or engine,

 

not less than 75% of vehicle miles traveled or hours of operation

 

projected for the 5 years immediately following the award of a

 

grant must be projected to take place in this state. For a proposed

 

emission reduction measure involving a marine vessel or engine, the

 

vessel or engine must be operated in the waters of this state for a

 

sufficient amount of time over the lifetime of the measure, as

 

determined by the department, to meet the cost-effectiveness

 

requirements of subsections (8) to (10). The owner of any vehicle

 

receiving funding for an emission reduction measure that fails

 

after the award of the grant to meet the geographical requirements

 

of this subsection shall pay a civil fine to the department equal

 

to a portion of the grant funds required by the department pursuant

 

to rules promulgated under section 6920 in effect at the time of

 

the failure. The proceeds of all such fines shall be deposited in

 

the fund.

 

     (8) For a proposed emission reduction measure based on the use

 

of a certified engine configuration or verified technology, a grant

 

applicant shall document, in a manner acceptable to the department,

 

a reduction in PM emissions of at least 50%, compared with the

 

baseline emissions adopted by the department for the relevant

 

engine year and application to the extent not provided pursuant to

 

the relevant CARB or USEPA verification process. After study of

 

available emissions reduction technologies and public notice and

 


comment, the department may revise the minimum percentage reduction

 

in PM emissions required by this subparagraph to improve the

 

ability of the funding program to achieve its goals.

 

     (9) The department shall establish reasonable methodologies

 

for evaluating emission reduction measure cost-effectiveness. In

 

calculating cost-effectiveness, 1-time grants of money at the

 

beginning of a project shall be annualized using a time value of

 

public funds or discount rate determined for each project by the

 

department, taking into account the interest rate on bonds,

 

interest earned by state funds, and other factors the department

 

considers appropriate.

 

     (10) Except as provided by subsection (12), and except for

 

installation of CCVs under subsection (5)(b), the department shall

 

not award a grant for a proposed emission reduction measure under

 

the grant program the cost-effectiveness of which, calculated in

 

accordance with subsection (9) and methodologies established

 

thereunder, exceeds $135,000.00 per ton of PM10 emissions. This

 

subsection does not restrict any authority of the department under

 

other law to require emissions reductions with a cost-effectiveness

 

that exceeds $135,000.00 per ton.

 

     (11) The department shall not award a grant that, net of

 

taxes, provides an amount that exceeds the incremental cost of the

 

proposed emission reduction measure. The department shall consider

 

the incremental cost of a proposed new purchase, retrofit, repower,

 

or add-on equipment emission reduction measure to be reduced by the

 

value of any existing financial incentive that directly reduces the

 

cost of the proposed measure, including tax credits or deductions,

 


other grants, loans, rebates, or any other public financial

 

assistance.

 

     (12) Based upon a study of available emissions reduction

 

technologies and costs and after public notice and comment, the

 

department may change the values of the maximum grant award

 

criteria established in subsection (10) to account for inflation or

 

to improve the ability of the grant program to achieve its goals.

 

     Sec. 6914. (1) A rebate program established by the department

 

under section 6912 shall be implemented as provided in this

 

section.

 

     (2) Subject to legislative appropriations, the department

 

shall annually allocate some or all of the money available in the

 

fund to the rebate program. Subject to legislative appropriations,

 

rebate program funds not expended in a given year may be

 

transferred by the department to the rebate program or any grant

 

program established under section 6912 for the following year.

 

     (3) A retrofit vendor or owner of an eligible vehicle who

 

meets the requirements of this section is eligible to receive a

 

rebate under the rebate program. For purposes of this subsection,

 

"eligible vehicle" means a vehicle that meets the requirements of

 

this section, that is described in section 6913(5)(a), and to which

 

1 of the following applies:

 

     (a) The vehicle is described in section 6913(3)(a).

 

     (b) Beginning 2 years after the effective date of the

 

amendatory act that added this section, the vehicle is described in

 

section 6913(3)(b).

 

     (c) Beginning 4 years after the effective date of the

 


amendatory act that added this section, the vehicle is described in

 

section 6913(3)(c).

 

     (4) Money from the fund shall be provided in the rebate amount

 

to defray the cost of purchase and installation to retrofit an

 

eligible vehicle with a level 3 control in combination with a CCV.

 

     (5) The department shall establish the initial rebate amount

 

for retrofits of various types of eligible vehicles. The department

 

shall thereafter review the appropriateness of the amount at least

 

annually and may change the rebate amount to improve the ability of

 

the rebate program to achieve its goals.

 

     (6) In order to receive a rebate, an eligible vehicle owner or

 

retrofit vendor shall do all of the following:

 

     (a) Submit to the department a completed rebate reservation at

 

a time required by the department and on a form provided by the

 

department.

 

     (b) Within 120 days of submission of a rebate reservation

 

form, the owner or vendor shall complete the retrofit pertaining to

 

the rebate reservation form, and shall submit to the department on

 

a form provided by the department a completed reimbursement

 

request, including certification of retrofit completion and

 

compliance with all requirements of this subsection and containing

 

such other information and such other conditions as the department

 

may require.

 

     (7) Rebates shall be provided on a first-come, first-served

 

basis, with priority established based upon the date of the

 

department receipt of a completed reservation form pursuant to

 

subsection (6)(a). However, if the retrofits are not completed and

 


the reimbursement request form is not submitted to the department

 

within the 120-day period as required by subsection (6)(b), the

 

department may reduce the amount of the rebate or take such other

 

action as provided for by rule.

 

     (8) To the extent of available funds allocated to the rebate

 

program, the department shall pay the owner or vendor the rebate

 

within 60 days of receipt of a timely, complete, and accurate

 

reimbursement form.

 

     (9) Owners of eligible vehicles for which rebates are paid

 

shall do all of the following:

 

     (a) Meet the requirements of section 6913(7).

 

     (b) Fuel the vehicle with ultra-low sulfur diesel fuel.

 

     (c) Maintain the vehicle and level 3 controls according to

 

manufacturer specifications.

 

     (10) The retrofit vendor to eligible vehicles for which

 

rebates are provided shall honor all warranty provisions according

 

to their verification.

 

     (11) A person who receives a rebate and fails to meet all the

 

requirements of this section shall be ordered to pay a civil fine

 

to the department in the full amount of the rebate, plus interest

 

at the rate determined under section 23 of 1941 PA 122, MCL 205.23.

 

The fine and interest shall be deposited in the fund.

 

     Sec. 6915. (1) An emission reduction measure funded under the

 

funding program may not be used for credit under any state or

 

federal emissions reduction credit averaging, banking, or trading

 

program. An emissions reduction generated by an emission reduction

 

measure funded under the funding program shall not be used as a

 


marketable emissions reduction credit or to offset any emissions

 

reduction obligation but may be used to demonstrate conformity with

 

the state implementation plan. An emission reduction measure

 

involving a new measure that would otherwise generate marketable

 

credits under state or federal emissions reduction credit

 

averaging, banking, or trading programs is not eligible for funding

 

under the funding program established under this section unless

 

both of the following apply:

 

     (a) The measure includes the transfer of the reductions that

 

would otherwise be marketable credits to the state implementation

 

plan.

 

     (b) The reductions are permanently retired.

 

     (2) As part of the biennial report required under section

 

6918, the department shall include a report on the funding program.

 

The report shall include all of the following:

 

     (a) A review of each emission reduction measure funded under

 

any grant program, the amount granted for the emission reduction

 

measure, the emissions reductions attributable to the measure, and

 

the cost-effectiveness of the measure.

 

     (b) A review of any rebate program, including the total

 

rebates paid, the total retrofits installed, and the aggregate

 

emission reductions attributable to those retrofits.

 

     (c) A summary of the department's funding program

 

implementation activities.

 

     (d) An accounting for money received, money disbursed as

 

grants, money reserved for grants based on project approvals, money

 

disbursed as rebates, and any recommended transfer of money between

 


allocations.

 

     (e) An estimate future demand for grant and rebate funds under

 

the funding program.

 

     (f) A description of the overall effectiveness of the funding

 

program in achieving PM emissions reductions and other emission

 

reductions as co-benefits.

 

     (g) An evaluation of the effectiveness of the funding program

 

in soliciting and evaluating project applications, providing awards

 

in a timely manner, and monitoring project implementation.

 

     (h) A description of changes made to project selection

 

criteria and recommendations for any further needed changes to the

 

grant program, including changes in grant award criteria,

 

administrative procedures, or statutory provisions that would

 

enhance the funding program's effectiveness and efficiency.

 

     (i) A description of any adjustments made to the maximum cost-

 

effectiveness amount and award amount.

 

     (j) An evaluation of the benefits of addressing additional

 

pollutants as part of the funding program.

 

     (k) An inclusion of legislative recommendations necessary to

 

improve the effectiveness of the funding program.

 

     Sec. 6916. (1) A medium-duty or heavy-duty diesel vehicle

 

powered by an engine manufactured during the following time period

 

shall not exceed the following percentage smoke opacity when tested

 

in accordance with this section unless its engine is exempted under

 

subsection (2):

 

     (a) Before 1990, 40%.

 

     (b) From 1990 to 1996, 30%.

 


     (c) After 1996, 20%.

 

     (2) The department shall exempt from the requirements of

 

subsection (1)(a), (b), or (c), as applicable, any engine family

 

that is shown by the engine manufacturer and found by the

 

department to exhibit smoke opacity greater than the limits in

 

subsection (1)(a), (b), or (c), as applicable, when in good

 

operating condition and adjusted to the manufacturer's

 

specifications. Such an engine family shall comply with any

 

technologically appropriate, less stringent opacity standard

 

identified by the department based on a review of the data obtained

 

from engines in good operating conditions and adjusted to the

 

manufacturer's specifications. A manufacturer seeking an exemption

 

under this subsection shall provide the department with the engine

 

emissions data needed to exempt the engine family and determine

 

technologically appropriate, less stringent opacity standards.

 

     (3) Within 1 year and 120 days after the effective date of the

 

amendatory act that added this section, the department, in

 

consultation with MDOT and the department of state police, shall

 

promulgate rules under section 6920 requiring owners or operators

 

of medium-duty and heavy-duty diesel vehicles to submit to regular

 

inspections of their vehicles for smoke opacity levels and shall

 

create and implement a program of random road opacity inspections

 

of medium-duty and heavy-duty diesel vehicles operating on highways

 

of this state. The rules shall specify at least all of the

 

following:

 

     (a) Inspection procedures for both periodic and random

 

roadside inspections. Smoke opacity shall be determined in

 


accordance with SAE J1667 or another equally effective and reliable

 

method adopted by the department.

 

     (b) Periodic inspection frequency, which shall be at least

 

annual.

 

     (c) Action the owner or operator is required to take to remedy

 

any exceedances of the opacity standards in subsection (1).

 

     (4) A medium-duty or heavy-duty diesel vehicle shall not be

 

operated with tampered, nonconforming, or defective emission

 

control components. Within 1 year of the effective date of the

 

amendatory act that added this section, the department, in

 

consultation with MDOT, shall promulgate rules under section 6920

 

to create and implement a program of inspection of medium-duty and

 

heavy-duty diesel vehicles to determine whether emission control

 

components are tampered, nonconforming, or defective. The rules

 

shall specify at least all of the following:

 

     (a) Inspection procedure.

 

     (b) Periodic inspection frequency, which shall be at least

 

annual.

 

     (c) Action the owner or operator is required to take to remedy

 

any defective, nonconforming, or tampered emission control

 

components.

 

     (5) The following sanctions apply to violations of this

 

section or rules promulgated to implement this section:

 

     (a) The owner of a medium-duty or heavy-duty diesel vehicle

 

that is cited for the first time for failing an opacity test or for

 

tampered, nonconforming, or defective emission control components

 

is responsible for a state civil infraction and shall be ordered to

 


pay a civil fine of $750.00. However, if the owner corrects the

 

violation and pays the fine within 45 days of receipt of the

 

citation, the fine shall be reduced to $250.00.

 

     (b) The owner of a medium-duty or heavy-duty diesel vehicle

 

that is cited for a second or subsequent time following expiration

 

of the 45-day compliance period set forth in subdivision (a) and

 

within a 12-month period of the original citation for failing an

 

opacity test or for tampered, nonconforming, or defective emission

 

control components for the same vehicle is responsible for a state

 

civil infraction and shall be ordered to pay a civil fine of

 

$1,500.00 and shall correct the failure within 45 days of the

 

receipt of the citation.

 

     (c) The owner of a medium-duty or heavy-duty diesel vehicle

 

that fails to have a required opacity or emissions control

 

inspection is responsible for a state civil infraction and shall be

 

ordered to pay a civil fine of $750.00 for a first violation and

 

$1,750.00 for a second or subsequent violation.

 

     (6) Proceeds of fines paid pursuant to this section shall be

 

deposited in the fund. However, 1/2 of the proceeds of fines

 

collected as a result of a random opacity inspection under rules

 

described in subsection (3) shall be forwarded as follows:

 

     (a) If the law enforcement officer issuing the civil

 

infraction citation is employed by this state, to the state

 

treasurer for deposit in the general fund.

 

     (b) If the law enforcement officer is employed by a political

 

subdivision, to the treasurer of that political subdivision for

 

deposit in its general fund.

 


     (7) The owner of a medium-duty or heavy-duty diesel vehicle

 

inspected under rules described in subsection (3) or (4) shall pay

 

the department a $40.00 fee for the inspection. The department

 

shall deposit inspection fees in the fund.

 

     Sec. 6917. (1) The department shall conduct a study of

 

inventories of diesel motor vehicles and diesel nonroad vehicles in

 

this state, in consultation with MDOT, SOS, USEPA, and other state

 

and federal agencies as the department considers appropriate. The

 

study shall include, but not be limited to, surveys of diesel motor

 

vehicle and diesel nonroad vehicle owners. The department shall

 

complete the study and report the results, along with any

 

recommendations resulting from that inventory, as part of the

 

December 1, 2015 report required by section 6918. The department

 

shall provide updated information regarding the diesel inventory in

 

subsequent biennial reports required by section 6918.

 

     (2) The secretary of state shall, in consultation with the

 

department, review the information obtained through the

 

registration of diesel motor vehicles. After such review, and no

 

later than 1 year after the effective date of the amendatory act

 

that added this section, SOS shall require such additional

 

information upon the registration of a diesel motor vehicle that is

 

appropriate to support a reliable and complete inventory of diesel

 

motor vehicles in this state. The information shall include, but

 

not be limited to, the type of fuel for which the vehicle is

 

designed, the gross vehicle weight rating, the engine class,

 

including whether the engine is electronically controlled, the use

 

for which the vehicle is designed, and any installed emission

 


controls. SOS shall, in consultation with the department, provide

 

such information to the department in a form that will support a

 

reliable and complete inventory of diesel motor vehicles in this

 

state.

 

     (3) Within 1 year after the effective date of the amendatory

 

act that added this section, SOS, in consultation with MDOT and the

 

department, shall promulgate rules pursuant to the administrative

 

procedures act of 1969, 1969 PA 306, MCL 24.201 to 24.328, to

 

develop a program for registration of diesel nonroad vehicles,

 

locomotives, and diesel marine vessels and shall implement the

 

program beginning 180 days after the rule promulgation deadline.

 

The program shall be designed, among other things, to support a

 

reliable and complete inventory of diesel nonroad vehicles in this

 

state.

 

     Sec. 6918. (1) Not later than December 1, 2015, and every odd-

 

numbered year thereafter, the department shall submit to the

 

legislature, make available to the public, and post on the

 

department website a report of the implementation of the provisions

 

of this act, including, but not limited to, all of the following:

 

     (a) A description of activities of the department and other

 

state agencies to implement this part.

 

     (b) An estimate of resulting diesel emission reductions and

 

other appropriate measures of progress.

 

     (c) A description of problems encountered, identification of

 

opportunities for additional reductions in diesel emissions, and

 

recommendations for any statutory changes.

 

     (d) The review of the funding program as required in section

 


6915(2) and information regarding the diesel inventory as required

 

in section 6917(1).

 

     (2) Before preparing a final biennial report, the department

 

shall prepare a draft biennial report and provide written notice

 

and opportunity for a public hearing and comment on the draft

 

biennial report. In producing a final biennial report, the

 

department shall consider and respond to all significant comments

 

received. The department shall make the final biennial report

 

available to the public and shall post the report on its website.

 

     Sec. 6919. (1) Persons subject to this part, including owners

 

and operators of diesel motor vehicles, diesel nonroad vehicles,

 

locomotives, and diesel marine vessels, shall provide such

 

information, reporting, and monitoring as the department may

 

require by rule for the purpose of implementing this part.

 

     (2) In addition to other remedies provided in this part, the

 

department may seek injunctive relief in any court of competent

 

jurisdiction to enforce any provision of this part.

 

     Sec. 6920. Within 1 year after the effective date of the

 

amendatory act that added this section, the department shall

 

promulgate rules to implement this part pursuant to the

 

administrative procedures act of 1969, 1969 PA 306, MCL 24.201 to

 

24.328.

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