MUSTFA Fee Extension

House Bill HB 6074

Sponsor:  Rep. Rep. Marc Shulman

Committee:  Appropriations

Complete to September 29, 2004

A SUMMARY OF HOUSE BILL HB 6074, S-5

This bill would amend Part 215 (Underground Storage Tank Financial Assurance) of the Natural Resources and Environmental Protection Act to create a new sunset date (December 31, 2010) for the 7/8 cent per gallon regulatory fee on refined petroleum products, revises the use of the revenue, establishes the “Refined Petroleum Fund”, and the Refined Petroleum Cleanup Advisory Council.  The Council would advise the Department of Environmental Quality on the use of this revenue for cleanup projects.

FISCAL IMPACT:

Approximately $60.0 million is collected annually from the 7/8 cent regulatory fee on refined petroleum products.  This revenue would continue to be collected and deposited into the new Refined Petroleum Fund.  This fund is appropriated in FY 2003-04 and FY 2004-05 for debt service on Clean Michigan Initiative Bonds, environmental cleanup programs in the Department of Environmental Quality, and consumer protection (gas pump inspection) programs in the Department of Agriculture.  A total of $30.0 million is appropriated for FY 2003-04, and $43.0 million is appropriated for FY 2004-05.

                                                                                                                       

                                                                                                  Fiscal Analyst:   Kirk Lindquist

■ This analysis was prepared by nonpartisan House staff for use by House members in their deliberations, and does not constitute an official statement of legislative intent.