SENATE NATURAL RESOURCES AND ECONOMIC DEVELOPMENT COMMITTEE

STATEMENT TO

SENATE, No. 116

with committee amendments

STATE OF NEW JERSEY

DATED: MARCH 14, 1996

      The Senate Natural Resources and Economic Development Committee favorably reports Senate Bill No. 116 with committee amendments.

      The bill prohibits the use of any fees or fines imposed on owners or operators for apportioned or commercial vehicles operated on alternative fuel for the administration, implementation or enforcement of the periodic or roadside inspection programs established pursuant to P.L.1995, c.157 or any program established pursuant to the "Federal Clean Air Mandate Compliance Act." The bill also provides that no administration fee would be charged on registrations of apportioned vehicles operated on alternative fuel and that registration fees would not be increased for commercial vehicles operated on alternative fuel. The registration fees for commercial vehicles were originally increased by approximately $3 (per weight unit) to cover the additional cost of administration, implementation or enforcement of the periodic or roadside inspection programs established pursuant to P.L.1995, c.157. The owners and operators of vehicles operated on alternative fuel have already shouldered the burden and expense of converting the vehicles they operate into alternative fuel vehicles. Operating on alternative fuel, the vehicles do not contribute to the problems that the law increasing the fees was enacted to address. The bill may also encourage other owners and operators to use alternative fuel vehicles.

      "Alternative fuel" is defined as methanol, ethanol, or other alcohols, natural gas, compressed natural gas, propane, liquefied petroleum gas, hydrogen, coal-derived liquid fuels, electricity, any other fuel substantially composed of nonpetroleum substances or any fuel as defined pursuant to section 301 of the "Energy Policy Act of 1992," Pub.L. 102-486, October 24, 1992, 106 Stat. 2866.

      The committee amendments clarify that the fees increased by P.L. 1995, c.157 when assessed on owners or operators of alternative fuel vehicles would be reduced by $3 per unit of weight assessed, which was the increase in fees imposed pursuant to P.L. 1995, c.157. The amendments also clarify that the definition of "alternative fuel" references the most recent federal definition of the term, which specifically excludes petroleum-based fuels from consideration as an alternative fuel. Other amendments provide that current law is reflected in the bill.

      This bill was pre-filed for introduction in the 1996-1997 session pending technical review. As reported, the bill includes the changes required by technical review, which has been performed.