S2250 1R

An Act concerning the conversion of certain diesel-powered buses and solid waste vehicles to operate on certain other fuels, and amending and supplementing P.L.2005, c.219.

Be It Enacted by the Senate and General Assembly of the State of New Jersey:

1. (New section) a. The owner of a regulated commercial bus or regulated solid waste vehicle, in lieu of completing the retrofitting required pursuant to P.L.2005, c.219 (C.26:2C-8.26 et seq.), may convert the regulated commercial bus or regulated solid waste vehicle to a bus or vehicle that is powered by compressed natural gas ¹, liquefied petroleum gas,¹ or electricity instead of diesel fuel.

b. The department may provide a grant, upon proper application therefor, from the Diesel Risk Mitigation Fund to any owner of a regulated commercial bus, regulated solid waste vehicle, or diesel-powered school bus who wishes to convert the bus or vehicle to one that is powered by compressed natural gas ¹, liquefied petroleum gas,¹ or electricity instead of diesel fuel ¹, provided, however, no grant shall be provided for the conversion of any bus or vehicle that has already been retrofitted or any school bus that has been equipped with closed crankcase technology pursuant to P.L.2005, c.219 (C.26:2C-8.26 et seq.)¹ . The grant shall be used to reimburse the owner for the costs of the conversion.

c. The department shall allocate at least 20 percent of the moneys annually credited to the Diesel Risk Mitigation Fund for the grants authorized in subsection b. of this section.

d. The Department of Environmental Protection shall adopt, pursuant to the “Administrative Procedure Act,” P.L.1968, c.410 (C.52:14B-1 et seq.), such rules and regulations as may be necessary to implement the provisions of this section. The Department of Environmental Protection shall cooperate and consult with the ¹[Department of Education] New Jersey Motor Vehicle Commission¹ when developing and adopting any such rules and regulations pertaining to school buses.

2. Section 20 of P.L.2005, c.219 (C.26:2C-8.45) is amended to read as follows:

20. a. The provisions of section 6, section 7, section 14, sections 16 through 19, inclusive, and sections 29 through 31, inclusive, of P.L.2005, c.219 (C.26:2C-8.31, C.26:2C-8.32, C.26:2C-8.39, C.26:2C-8.41 through C.26:2C-8.44, and C.26:2C-8.54 through C.26:2C-8.56) affecting the reimbursement of owners of regulated vehicles or regulated equipment for the costs associated with the purchase and installation of retrofit devices, or of owners of regulated commercial buses, regulated solid waste vehicles, or school buses for the costs associated with a conversion allowed pursuant to section 1 of P.L. , c. (C. ) (pending before the Legislature as this bill), to the contrary notwithstanding, the Department of Environmental Protection may develop an alternative approach for reimbursement of these costs to the owners if the department determines that an alternative approach is feasible, cost-effective, and efficient. The alternative approach may include, but shall not be limited to, directly reimbursing the entity performing the actual installation of the retrofit device or of the conversion allowed pursuant to section 1 of P.L. , c. (C. ) (pending before the Legislature as this bill), in lieu of reimbursing the owner [of the regulated vehicle or regulated equipment] . If the department determines that an alternative approach is feasible, cost-effective, and efficient and chooses to implement the alternative approach, the department shall establish and implement the alternative approach pursuant to rules and regulations adopted pursuant to the "Administrative Procedure Act," P.L.1968, c.410 (C.52:14B-1 et seq.). No such rule or regulation may modify any procedure performed by, or any responsibility or requirement imposed on, the New Jersey Motor Vehicle Commission, its employees, or any persons licensed or contracted by the New Jersey Motor Vehicle Commission, unless the rule or regulation is adopted jointly by the New Jersey Motor Vehicle Commission and the Department of Environmental Protection pursuant to the "Administrative Procedure Act," P.L.1968, c.410 (C.52:14B-1 et seq.).

b. No provision of subsection a. of this section or any other rule or regulation adopted pursuant thereto, shall be construed to supersede or modify, the provisions of section 3, section 4, subsection a. or subsections d. through f., inclusive, of section 6, subsections a. through c. or subsections e. through f., inclusive, of section 7, sections 8 through 13, inclusive, subsection d. or e. of section 19, section 21, section 26, section 27, section 28, subsection a. of section 29, or subsection b. of section 30 of P.L.2005, c.219 (C.26:2C-8.28, C.26:2C-8.29, C.26:2C-8.31, C.26:2C-8.32, C.26:2C-8.33 through C.26:2C-8.38, C.26:2C-8.44, C.26:2C-8.46, C.26:2C-8.51, C.26:2C-8.52, C.26:2C-8.53, C.26:2C-8.54, or C.26:2C-8.55).

c. No entity performing the actual installation of a retrofit device or of a conversion allowed pursuant to section 1 of P.L. , c. (C. ) (pending before the Legislature as this bill), who is reimbursed for the costs associated with the purchase and installation of retrofit devices , or with the conversions allowed pursuant to section 1 of P.L. , c. (C. ) (pending before the Legislature as this bill), pursuant to rules and regulations adopted pursuant to subsection a. of this section, may impose any charge on any owner of a regulated vehicle or piece of regulated equipment for any cost associated with the purchase and installation of retrofit devices required pursuant to P.L.2005, c.219 (C.26:2C-8.26 et al.) or on any owner of a regulated commercial bus, regulated solid waste vehicle, or school bus for any cost associated with the conversion of any such bus or vehicle allowed pursuant to section 1 of P.L. , c. (C. ) (pending before the Legislature as this bill). No State agency, department, or political subdivision thereof may impose any charge on any owner of a regulated vehicle or piece of regulated equipment for any cost associated with the purchase and installation of retrofit devices required pursuant to P.L.2005, c.219 (C.26:2C-8.26 et al.) or on any owner of a regulated commercial bus, regulated solid waste vehicle, or school bus for any cost associated with the conversion of any such bus or vehicle allowed pursuant to section 1 of P.L. , c. (C. ) (pending before the Legislature as this bill), if entities performing the actual installation of a retrofit device or the conversion are reimbursed for the costs pursuant to rules and regulations adopted pursuant to subsection a. of this section.

(cf: P.L.2005, c.219, s.20)

3. Section 28 of P.L.2005, c.219 (C.26:2C-8.53) is amended to read as follows:

28. a. There is established in the Department of the Treasury a special, nonlapsing fund to be known as the "Diesel Risk Mitigation Fund." The fund shall be administered by the State Treasurer and shall be credited with:

(1) constitutionally dedicated moneys;

(2) such moneys as are appropriated by the Legislature; and

(3) any return on investment of moneys deposited in the fund.

b. Moneys in the fund may be used by the Department of the Treasury solely for:

(1) reimbursements to owners of regulated vehicles or regulated equipment to reimburse the cost of required retrofit devices and the installation thereof;

(2) reimbursements to owners of regulated commercial buses, regulated solid waste vehicles, or school buses to reimburse the cost of ¹[conversion to compressed natural gas or electric buses or vehicles as] the conversions¹ allowed pursuant to section 1 of P.L. , c. (C. ) (pending before the Legislature as this bill);

(3) the administrative costs incurred by the Department of Environmental Protection to implement the provisions of P.L.2005, c.219 (C.26:2C-8.26 et al.) up to $900,000 per year; and

[(3)] (4) the administrative costs incurred by the New Jersey Motor Vehicle Commission to implement the provisions of P.L.2005, c.219 (C.26:2C-8.26 et al.) up to $250,000 per year.

c. No moneys in the fund may be made available for any costs associated with requirements imposed by P.L.2005, c.219 (C.26:2C-8.26 et al.), unless the State Treasurer certifies that the constitutionally dedicated moneys have been deposited in the fund in that year.

If the moneys provided for the administrative costs of the New Jersey Motor Vehicle Commission are not required by the commission in a given year because they exceed the amount of the administrative costs of the commission in that year, the State Treasurer shall provide those moneys unexpended for that purpose to the Department of Environmental Protection for administrative costs, provided that the administrative costs paid from the constitutionally dedicated moneys deposited in the fund do not exceed $1,150,000.

d. Any owner of a regulated vehicle or piece of regulated equipment , or owner of a regulated commercial bus, regulated solid waste vehicle, or school bus ¹that has been¹ converted ¹[to a compressed natural gas or electric bus or vehicle]¹ as allowed pursuant to section 1 of P.L. , c. (C. ) (pending before the Legislature as this bill), is eligible for reimbursement from the fund. Notwithstanding the provisions of the "Local Budget Law" (N.J.S.40A:4-1 et seq.) to the contrary, a county, municipality, or an authority as defined in section 3 of P.L.1983, c.313 (C.40A:5A-3) required to comply with the provisions of P.L.2005, c.219 (C.26:2C-8.26 et al.) may anticipate in its annual budget or any amendments or supplements thereto, those sums to be reimbursed from the fund for the costs of retrofit devices and their installation that are required to be used in or on any regulated vehicle or piece of regulated equipment in a given year in which the county, municipality, or authority incurs the cost , or for the costs of conversions allowed pursuant to section 1 of P.L. , c. (C. ) (pending before the Legislature as this bill). For the purposes of subsection 1. of section 3 of P.L.1976, c.68 (C.40A:4-45.3) and subsection g. of section 4 of P.L.1976, c.68 (C.40A:4-45.4), the costs of retrofit devices and their installation or the costs of conversions allowed pursuant to section 1 of P.L. , c. (C. ) (pending before the Legislature as this bill) shall be considered an amount to be received from State funds in reimbursement for local expenditures and therefore exempt from the limitation on local budgets imposed pursuant to section 2 of P.L.1976, c.68 (C.40A:4-45.2).

(cf: P.L.2005, c.219, s.28)

4. Section 29 of P.L.2005, c.219 (C.26:2C-8.54) is amended to read as follows:

29. a. Moneys in the fund shall be allocated and used to provide reimbursement to the owners of regulated vehicles or regulated equipment for 100% of the costs of the purchase and installation of the retrofit device pursuant to P.L.2005, c.219 (C.26:2C-8.26 et al.) or the costs of conversions allowed pursuant to section 1 of P.L. , c. (C. ) (pending before the Legislature as this bill), other than fuel.

b. The owner or operator of a regulated vehicle [or] , piece of regulated equipment , or school bus seeking the reimbursement authorized in subsection a. of this section shall file an application on a form to be developed by the State Treasurer and the Department of Environmental Protection, with the department, with the documentation required by the department and the State Treasurer pursuant to section 30 of P.L.2005, c.219 (C.26:2C-8.55). Neither the State Treasurer nor the Department of Environmental Protection may charge an application fee.

c. Upon a determination that an application for reimbursement meets all established criteria for an award from the fund, the Department of Environmental Protection and the State Treasurer shall approve the application. Upon the department approval of an application for reimbursement from the fund, the State Treasurer shall award the reimbursement to an owner upon the availability of sufficient moneys in the fund. If moneys in the fund are not sufficient at any point to fund all applications for reimbursement that have been approved by the State Treasurer, the State Treasurer shall award reimbursement to approved owners based upon the date of approval of the application.

(cf: P.L.2005, c.219, s.29)

5. Section 30 of P.L.2005, c.219 (C.26:2C-8.55) is amended to read as follows:

30. a. The State Treasurer shall adopt, in consultation with the Department of Environmental Protection, pursuant to the "Administrative Procedure Act," P.L.1968, c.410 (C.52:14B-1 et seq.), rules and regulations:

(1) establishing the filing requirements for a complete application for reimbursement from the fund; and

(2) to require an owner:

(a) to submit documentation or other information demonstrating that the retrofit device has been purchased and installed on a regulated vehicle, which shall include the vehicle identification number of the vehicle, or on regulated equipment the serial number;

(b) to submit documentation of the actual costs incurred for the purchase of the retrofit device required to be installed, the nature and scope of work performed to install the retrofit device, and the actual costs incurred to install the technology;

(c) to submit a certification that the owner has not engaged in any of the conduct described in subsection a. of section 31 of P.L.2005, c.219 (C.26:2C-8.56);

(d) to submit a certification that the retrofit device installed on a regulated vehicle or regulated equipment is in conformance with rules and regulations of the Department of Environmental Protection; [and]

(e) to provide access at reasonable times to the regulated vehicles or regulated equipment to determine compliance with the terms and conditions of the reimbursement award ;

(f) to submit documentation or other information demonstrating that the conversion allowed pursuant to section 1 of P.L. , c. (C. ) (pending before the Legislature as this bill) has been completed, which shall include the vehicle identification number of the vehicle, or other verifying information required by the State Treasurer; and

(g) to submit documentation of the actual costs of the conversion allowed pursuant to section 1 of P.L. , c. (C. ) (pending before the Legislature as this bill).

b. In establishing requirements for applications for reimbursement, the State Treasurer:

(1) may not impose conditions that interfere with the everyday normal operations of an owner's business activities, except to the extent necessary to ensure the owner has complied with the provisions of P.L.2005, c.219 (C.26:2C-8.26 et al.);

(2) shall strive to minimize the complexity and costs to owners of complying with such requirements; and

(3) shall expeditiously process all applications in accordance with a schedule established, in consultation with the Department of Environmental Protection, for the review and the taking of final action within 30 days after the receipt of the completed application.

(cf: P.L.2005, c.219, s.30)

6. Section 31 of P.L.2005, c.219 (C.26:2C-8.56) is amended to read as follows:

31. a. The State Treasurer may deny an application for reimbursement from the fund, and any reimbursement from the fund may be recoverable by the State Treasurer, upon a finding that:

(1) the owner of a regulated vehicle [or] , regulated equipment , or school bus failed to commence or complete the purchase or installation of best available retrofit technology on the vehicle or equipment, or the conversion allowed pursuant to section 1 of P.L. , c. (C. ) ( pending before the Legislature as this bill), for which an application for reimbursement was filed in accordance with the applicable rules and regulations; or

(2) the owner of a regulated vehicle [or], regulated equipment , or school bus provided false information or withheld information on an application that would render the owner ineligible for reimbursement from the fund, that resulted in the owner receiving a larger reimbursement than the owner would otherwise be eligible, or that resulted in payments from the fund in excess of the actual costs incurred by the owner or the amount to which the owner is legally eligible.

b. Nothing in this section shall be construed to require the State Treasurer, the Department of Environmental Protection, or any other State agency or department, to undertake an investigation or make any findings concerning the conduct described in subsection a. of this section.

(cf: P.L.2005, c.219, s.31)

7. This act shall take effect immediately.