Bill Text - HB296 (2009)

(New Title) transferring funds related to oil discharge prevention and cleanup, and an oil fund performance audit.


Revision: June 4, 2009, midnight

HB 296-FN-A – AS AMENDED BY THE SENATE

24Mar2009… 0901h

06/03/09 1967s

2009 SESSION

09-0284

08/09

HOUSE BILL 296-FN-A

AN ACT increasing fees and transferring funds related to oil discharge prevention and cleanup, and authorizing an oil fund performance audit.

SPONSORS: Rep. C. Christensen, Hills 19; Rep. Vachon, Straf 3

COMMITTEE: Ways and Means

AMENDED ANALYSIS

This bill increases fees and transfers funds related to oil discharge prevention and cleanup and authorizes a performance audit of oil funds administered by the oil fund disbursement board and the related programs of the department of environmental services for clean up of petroleum contamination.

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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Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.

24Mar2009… 0901h

06/03/09 1967s

09-0284

08/09

STATE OF NEW HAMPSHIRE

In the Year of Our Lord Two Thousand Nine

AN ACT increasing fees and transferring funds related to oil discharge prevention and cleanup, and authorizing an oil fund performance audit.

Be it Enacted by the Senate and House of Representatives in General Court convened:

1 Oil Fund Performance Audit. The legislative budget assistant shall conduct by December 2009 a performance audit of the oil funds administered by the oil fund disbursement board and the related programs of the department of environmental services for clean up of petroleum contamination.

2 Increase in Fuel Oil Import Fees. RSA 146-E:3 is repealed and reenacted to read as follows:

146-E:3 Fund Established; Collection.

I. There is established a fuel oil discharge cleanup fund, which shall be administered by the oil fund disbursement board established under RSA 146-D:4. This fund shall be used to reimburse costs incurred in the prevention and cleanup of fuel oil discharges in the waters and soils of the state, including administrative, technical, and legal support required by the oil fund disbursement board in administrating the fund, and in paying third party damages.

II. A fee of $.01 per gallon of fuel oil shall be assessed at the time of importation into this state. An additional fee of $.0025 per gallon of fuel oil shall be assessed on imports after July 1, 2009. Assessment of this additional fee shall be discontinued if the fiscal committee of the general court, in annual consultation with the oil fund disbursement board, determines that it is no longer necessary to accomplish the purpose of the fuel oil discharge cleanup fund stated in RSA 146-E:1.

III. Persons licensed under RSA 146-A:11-b, II shall be liable for payment of fuel oil fees which shall be collected and enforced in the manner described in RSA 146-D:3, III and V. All fee revenues shall be deposited in the fuel oil discharge cleanup fund. If the fund’s balance becomes greater than $2,500,000, the assessment of fees shall be discontinued and only reestablished when the fund’s balance is less than $1,500,000. Until the fund balance reaches $2,000,000, at least 50 percent of the fees collected shall be allocated for reimbursements to on-premise-use facility owners and owners of land upon which on-premise-use facilities are located and for the administrative, technical, and legal support associated with such reimbursements.

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.

3 Funds Transferred from the Oil Pollution Control Fund to the Fuel Oil Discharge Cleanup Fund. Within 15 days after the effective date of this section, the department of environmental services shall transfer $400,000 from the New Hampshire oil pollution control fund established by RSA 146-A:11-a to the fuel oil discharge cleanup fund established by RSA 146-E:3, I.

4 Effective Date. This act shall take effect upon its passage.

LBAO

09-0284

Amended 04/08/09

HB 296 FISCAL NOTE

AN ACT transferring funds related to oil discharge prevention and cleanup, and an oil fund performance audit.

FISCAL IMPACT:

The Department of Environmental Services states this bill, as amended by the House (Amendment #2009-0901h), will increase state restricted revenues and expenditures by $400,000 in FY 2009. There will be no fiscal impact on county and local revenues or expenditures.

METHODOLOGY:

The Department of Environmental Services (DES) states this bill requires the Department to transfer $400,000 from the New Hampshire oil pollution control fund to the fuel oil discharge cleanup fund and requires the Legislative Budget Assistant to perform a performance audit of the oil funds administered by the oil fund disbursement board and related programs of the DES for petroleum contamination cleanup. The Department states it will transfer the $400,000 within 15 days of the passage of the bill, increasing oil pollution control fund expenditures and fuel oil discharge cleanup fund revenue by $400,000 in FY 2009. To meet immediate need, the Department states if the bill is passed soon enough in FY 2009, it will expend $200,000 from the fuel oil discharge fund in FY 2009 and another $200,000 in FY 2010. However, if the bill is passed later, the Department states all $400,000 will be expended from the fuel oil discharge fund in FY 2010.

The Legislative Budget Assistant (LBA) states historically only financial audits, and not performance audits, of entities or programs funded by self-sustaining or special funds will be a charge against said funds. The LBA states the cost to conduct a performance audit of the oil funds administered by the Oil Fund Disbursement Board and related programs of the DES can be absorbed by the LBA Audit Division.