AN ACT CONCERNING A CONNECTICUT CLEAN CAR INCENTIVE PROGRAM.

Be it enacted by the Senate and House of Representatives in General Assembly convened:

Section 1. Section 12-412 of the general statutes is amended by adding subdivisions (116) and (117) as follows (Effective July 1, 2006):

(NEW) (116) New motor vehicles determined by the Commissioner of Environmental Protection to have low emissions of greenhouse gas, as defined in section 22a-200, shall receive a sales tax reduction of between zero and three per cent of the vehicle purchase price, as determined by the Commissioner of Environmental Protection, which percentage is based proportionally on the vehicle's estimated lifetime greenhouse gas emissions, as determined by the United States Environmental Protection Agency. A schedule of new motor vehicles that qualify for this subsection shall be published by the Commissioner of Environmental Protection on an annual basis.

(117) New motor vehicles determined by the Commissioner of Environmental Protection to have high emissions of greenhouse gas, as defined in section 22a-200, shall be assessed a sales tax adjustment of between zero and three per cent of the vehicle purchase price, as determined by the Commissioner of Environmental Protection, which percentage is based proportionally on the vehicle's estimated lifetime greenhouse gas emissions, as determined by the United States Environmental Protection Agency. A schedule of new motor vehicles that qualify for this subsection shall be published by the Commissioner of Environmental Protection on an annual basis.

Sec. 2. (NEW) (Effective October 1, 2005) (a) The Department of Environmental Protection shall, within available resources, establish a public education program regarding the sales tax reductions and assessments pursuant to section 1 of this act.

(b) There is established a separate, nonlapsing account within the General Fund known as the "clean air health risk reduction account". The clean air health risk reduction account shall be used by the Commissioner of Environmental Protection for the administration of the provisions of this section. The net sales tax revenues generated by the clean car incentive schedule established pursuant to subsection (a) of this section shall be deposited into said account. During the fiscal years ending June 30, 2008, 2009 and 2010, the first one million dollars of any funds expended by the clean air health risk reduction account shall be dedicated to reducing harmful emissions from school buses, through retrofitting such buses with emissions control equipment or replacing such buses with low emissions models.

(c) The Commissioner of Environmental Protection shall establish a competitive process for awarding grants from the Clean Air Health Risk Reduction Fund. The commissioner, within available appropriations, shall award at least one million dollars per year to fund projects to reduce harmful emissions of fine particulates, nitrogen oxides, volatile organic compounds, sulfur dioxide and other harmful air pollutants. Projects that are eligible for Clean Air Health Risk Reduction Fund grants shall include, but are not limited to: (1) Emissions-reducing retrofit projects for on-road or off-road diesel engines; (2) emissions-reducing repowering projects for on-road and off-road diesel engines; (3) purchase and use of emissions reducing retrofits for on-road or off-road diesel engines; (4) accelerated changeover of fleets to cleaner running vehicles; (5) emissions-reducing technology for stationary sources impacting residential neighborhoods; and (6) changeover to cleaner burning fuels.

(d) The Commissioner of Environmental Protection shall review the schedules required by subdivisions (116) and (117) of section 12-412 of the general statutes, as amended by this act, in relation to Connecticut's greenhouse gas emission reduction goals, as specified in section 22a-200a of the general statutes, and in relation to the average greenhouse gas emissions of new motor vehicles sold and registered in the state and shall develop recommendations with respect to any revisions to the schedules necessary to meet the state's greenhouse gas emission reduction goals.

(e) Not later than December 1, 2008, the Commissioner of Environmental Protection, in consultation with the Governor's Steering Committee on Climate Change, shall report, in accordance with the provisions of chapter 54 of the general statutes, regarding motor vehicle greenhouse gas emission reductions necessary to meet the goals of section 22a-200a of the general statutes and any necessary legislation to achieve such reductions to the joint standing committee of the General Assembly having cognizance of matters relating to the environment.

Statement of Purpose:

To provide incentives for consumers to purchase and use clean cars.

[Proposed deletions are enclosed in brackets. Proposed additions are indicated by underline, except that when the entire text of a bill or resolution or a section of a bill or resolution is new, it is not underlined.]