SB 129-FN-A – AS INTRODUCED
2005 SESSION
08/10
SENATE BILL 129-FN-A
AN ACT relative to establishing a fee on the importation of motor fuels to fund air quality mitigation and establishing a dedicated fund.
COMMITTEE: Transportation and Interstate Cooperation
This bill establishes a fee on the importation of motor fuels to fund air quality mitigation and establishes a dedicated fund for programs to mitigate emissions from mobile sources.
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Explanation: Matter added to current law appears in bold italics.
Matter removed from current law appears [in brackets and struckthrough.]
Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.
05-1004
08/10
STATE OF NEW HAMPSHIRE
In the Year of Our Lord Two Thousand Five
AN ACT relative to establishing a fee on the importation of motor fuels to fund air quality mitigation and establishing a dedicated fund.
Be it Enacted by the Senate and House of Representatives in General Court convened:
1 New Subdivision; Air Quality Mitigation Fund. Amend RSA 146-D by inserting after section 9 the following new subdivision:
Mobile Source Air Quality Mitigation Fund
146-D:10 Purpose. The United States Environmental Protection Agency has determined that New Hampshire is in violation of federal air quality standards established to protect public health and the environment, and that the state is subject to certain requirements to reduce emissions of air pollutants under the federal Clean Air Act. The general court finds that a significant portion of New Hampshire’s overall air pollution is emitted from mobile sources and that these emissions contribute to New Hampshire’s failure to attain federal standards. In particular, over half of the emissions of ozone forming nitrogen oxides and manmade volatile organic compounds are emitted from mobile sources. Additionally, over 2/3 of the statewide emissions of carbon monoxide, a poisonous gas, are emitted from mobile sources. The purpose of this subdivision is to establish a fund for implementing programs to mitigate the air quality and public health impacts of emissions from mobile sources.
146-D:11 Definition. In this subdivision, “motor fuel” means all petroleum products used in an internal combustion engine for the generation of power to propel motor vehicles or mechanical contrivances on or over the ways of this state.
146-D:12 Mobile Source Air Quality Mitigation Fund.
I. There is established a mobile source air quality mitigation fund. This fund shall be used, consistent with the provisions of this subdivision, to implement mobile source related programs in the department of environmental services. This fund shall be collected as a fee imposed on motor fuels imported into the state.
II. Any distributor who imports motor fuels, or who causes motor fuels to be imported into this state shall first be licensed with the department of safety. A fee of $.005 per gallon of motor fuel, assessed at the time of importation into this state. All fees shall be deposited in the mobile source air quality mitigation fund established under this section.
III. The fee provided for in this section shall be collected by agents of the department of safety, in the same manner as provided for in RSA 260:38. Such funds shall be deposited in the mobile source air quality mitigation fund established under this section.
IV. Moneys collected for the fund shall be deposited with the state treasurer to the credit of said fund and may be invested as provided by law. Interest received on such investment shall also be credited to the fund. The fund shall be nonlapsing and continually appropriated to the department for the purposes of this subdivision.
V. No distributor licensed by the department of safety under this chapter shall import motor fuels into this state without paying the fee required by this section. Any distributor so licensed may seek and shall receive for valid claims an import credit for motor fuels which a distributor transfers out of state during any reporting period.
146-D:13 Fund Purpose. The moneys in the fund shall be used for:
I. Programs to meet federal Clean Air Act requirements including, but not limited, motor vehicle emissions inspection and maintenance, and fuels related programs.
II. Outreach and education programs including, but not limited to cleaner car labeling and awareness, fuel economy, anti-idling initiatives, clean school bus, and heavy-duty vehicle emission reduction programs, promotion of public transportation resources, and promotion of lower emission transportation fuels and alternatives.
III. Grants for demonstration programs and incentives for technology to reduce mobile source emissions including, but not limited to, pollution control retrofit projects, and cleaner or alternative fuels programs.
IV. Enforcement of department rules related to regulation of mobile sources.
V. Any other programs that will further the purposes of this chapter.
146-D:14 Rulemaking. The commissioner of the department of environmental services shall adopt rules pursuant to RSA 541-A and RSA 125-C to establish the specific purpose of the fund and how the funds shall be allocated and disbursed to mitigate air quality and public health effects caused by mobile source emissions.
2 New Subparagraph; Department of Safety; Rulemaking. Amend RSA 21-P:14, V by inserting after subparagraph (u) the following new subparagraph:
(v) Procedures for licensing, and the collection of the mobile source air quality mitigation funds under RSA 146-D:12.
3 New Subparagraph; Air Quality Mitigation Fund. Amend RSA 6:12, I(b) by inserting after subparagraph (234) the following new subparagraph:
(235) Moneys deposited in the mobile source air quality mitigation fund established in RSA 146-D:12.
4 Effective Date. This act shall take effect July 1, 2005.
LBAO
05-1004
Revised 2/14/05
SB 129 FISCAL NOTE
AN ACT relative to establishing a fee on the importation of motor fuels to fund air quality mitigation and establishing a dedicated fund.
FISCAL IMPACT:
The Departments of Environmental Services and Safety have determined this bill will increase state restricted revenue and expenditures by $4,778,644 in FY 2006, $4,922,004 in FY 2007, $5,069,664 in FY 2008, and $5,221,754 in FY 2009. There will be no fiscal impact on county and local revenue or expenditures.
METHODOLOGY:
The Department of Environmental Services states this bill will establish a fee on the importation of motor fuels to fund air quality mitigation, and establish the Mobile Source Air Quality Mitigation Fund for programs to mitigate emissions from mobile sources. The fee will be $0.005 per gallon of motor fuel assessed at the time of importation into New Hampshire, and will be deposited into the fund. The Department states NH motor fuel distributors imported 900,866,097 gallons of applicable motor fuel in FY 2004, and assumed the annual increase in gallons imported will be 3%. The Department calculated increased restricted revenue to the Mobile Source Air Quality Mitigation Fund resulting from the $0.005 per gallon fee as follows:
Projected Fuel Use (gallons) Estimated Annual Fund Revenue
FY 2006 955,728,842 $4,778,644
FY 2007 984,400,708 $4,922,004
FY 2008 1,013,932,729 $5,069,664
FY 2009 1,044,350,711 $5,221,754
The Department of Environmental Services states it currently has three mobile source and outreach/education staff persons that are paid with federal EPA Clean Air Act Section 105 grant funds, although these funds were not specifically intended for that purpose. The Department anticipates these staff, which total approximately $210,000 annually, will be removed from the federal fund and transferred to the Mobile Source Air Quality Mitigation Fund. The federal funds would then be utilized to meet existing and currently unfunded air monitoring requirements for enhanced monitoring per the Clean Air Act. The Department also plans to fill four additional positions for mobile source and outreach/education programs at labor grade 25, which will total approximately $280,000 annually.
The Department of Safety states it will hire one Road Toll Auditor II at labor grade 20 to perform activities related to fee collection. The Department states this position will cost $69,317 in FY 2006, including salary, benefits, equipment, supplies, training, and computer programming. The Department states the position will cost $45,787 in FY 2007, $47,696 in FY 2008, and $49,802 in FY 2009, including salary, benefits, equipment, and supplies.
The Department of Environmental Services further states the balance of fee revenue will be used for outreach programs, grants for mobile source emissions reduction technology, and enforcement of mobile source program regulations, subject to approval by the Air Resources Council. Revenue and expenditures for the Mobile Source Air Quality Mitigation Fund are summarized as follows:
FY 2006 FY 2007 FY 2008 FY 2009
Fee Revenue $4,778,644 $4,922,004 $5,069,664 $5,221,754
Department of Environmental
Services Personnel
Expenditures 490,000 490,000 490,000 490,000
Department of Safety
Personnel Expenditures 69,317 45,787 47,696 49,802
Grants, Outreach, and
Enforcement Expenditures $4,219,327 $4,386,217 $4,531,968 $4,6