A BILL TO BE ENTITLED
AN ACT to improve air quality by creating a mobile source emissions reduction program fund THROUGH an emissions‑based surcharge on vehicle registration fees.
The General Assembly of North Carolina enacts:
SECTION 1.  Article 36 of Chapter 143 of the General Statutes is amended by adding a new Part to read:
"Part 4. Mobile Source Emissions Reduction Program.
"§ 143‑345.19.  Mobile Source Emissions Reduction Program established.
(a)	Establishment. – There is established the Mobile Source Emissions Reduction Program in the Department of Administration. The Program is to be administered by the State Energy Office.
(b)	Purposes. – The Program shall provide for grants for the following purposes:
(1)	Payments to the first owner, other than for resale, of alternative fuel vehicles and hybrid vehicles.
(2)	Payments to owners of alternative fuel vehicles to offset higher State taxes on alternative fuel as compared to other motor fuels.
(3)	Alternative fuel infrastructure projects.
(4)	Truck stop electrification projects.
(5)	Payments for the installation of particulate traps and oxidation catalysts on diesel vehicles.
(c)	Definitions. – The following definitions apply in this Part:
(1)	Alternative fuel. – Defined in G.S. 105‑449.130.
(2)	Alternative fuel vehicle. – An original equipment manufactured motor vehicle that operates on an alternative fuel.
(3)	Hybrid vehicle. – A motor vehicle with a hybrid propulsion system that operates on both electricity and a petroleum‑based motor fuel.
"§ 143‑345.19A.  Implementation.
The State Energy Office, in consultation with the Department of Environment and Natural Resources, shall adopt rules regarding the implementation of the Mobile Source Emissions Reduction Program. These rules shall be adopted after consultation with the Department of Transportation, the Department of Correction, the Department of Public Instruction, the Department of Revenue, and any other interested parties. The rules adopted by the State Energy Office shall comply with environmental and energy regulations promulgated by the United States Department of Energy and the United States Environmental Protection Agency.
"§ 143‑345.19B.  Funding.
(a)	Funding Source. – The Mobile Source Emissions Reduction Program shall be funded by a surcharge on registration fees of motor vehicles registered in the counties in which vehicle emissions testing is required under G.S. 143‑215.107A. The surcharge is determined as follows:
(1)	For light-duty vehicles, the surcharge is determined by multiplying one dollar ($1.00) by a factor that is determined by dividing the vehicle's vehicle miles traveled by the vehicle's Green Vehicle Guide rating, as published by the United States Environmental Protection Agency, in accordance with the following table:
	Combined Green Vehicle Guide Score	Dividing Factor
	19‑20	10,000
	17‑18	9,000
	15‑16	8,000
	13‑14	7,000
	11‑12	6,000
	9‑10	5,000
	7‑8	4,000
	5‑6	3,000
	3‑4	2,000
	Less than 3	1,000
(2)	For medium- and heavy-duty vehicles, the surcharge is determined by multiplying the mileage rate provided in the following table by the vehicle's vehicle miles traveled:
	Gross Vehicle Weight	Mileage Rate	Vehicle Class
	12,000 lbs. or less	$0.026	MD
	Over 12,000 lbs. to 16,000 lbs.	$0.034	MF
	Over 16,000 lbs to 20,000 lbs.	$0.046	MG
	Over 20,000 lbs. to 24,000 lbs.	$0.063	MH
	Over 24,000 lbs. to 28,000 lbs.	$0.063	MJ
	Over 28,000 lbs. to 32,000 lbs.	$0.083	MK
	Over 32,000 lbs. to 36,000 lbs.	$0.099	ML
	Over 36,000 lbs. to 40,000 lbs.	$0.128	MN
	Over 40,000 lbs. to 45,000 lbs.	$0.139	MP
	Over 45,000 lbs. to 55,000 lbs.	$0.156	MR
	Over 55,000 lbs. to 59,500 lbs.	$0.178	MS
	Over 59,500 lbs. to 64,000 lbs.	$0.195	MT
	Over 64,000 lbs. to 73,280 lbs.	$0.225	MV
	Over 73,280 lbs. to 77,000 lbs	$0.258	MX
	Over 77,000 lbs.	$0.275	MZ
(b)	Transfer. – The Division of Motor Vehicles shall collect the surcharge imposed by this section at the time it collects the registration fee. The Division of Motor Vehicles shall transfer funds collected under this section on a quarterly basis to a special revenue fund in the Department of Administration. Funds in this special revenue fund shall be used by the State Energy Office to implement the Program created in this Part.
(c)	Administration Allowance. – The State Energy Office and the Division of Motor Vehicles may use up to five percent (5%) of the funds collected under this Part for the administration of this Part.
"§ 143‑345.19C.  Reports.
The Division of Motor Vehicles shall provide to the State Energy Office quarterly reports of all registered motor vehicles identified by fuel type. The State Energy Office shall provide an annual report on the expenditure of funds under this Part and the number of alternative fuel vehicles and hybrid vehicles registered in this State to the Joint Legislative Transportation Oversight Committee."
SECTION 2.  G.S. 143‑345.19B, as enacted by this act, becomes effective July 1, 2005, and applies to registrations due on or after that date. The remainder of this act is effective when it becomes law.  This act is repealed effective July 1, 2015.