HB355 (2010) Detail

Relative to oil fund disbursement board authority and fees for oil discharge cleanup.


2009 SESSION

09-0285

08/10

HOUSE BILL 355-FN-A

AN ACT relative to oil fund disbursement board authority and fees for oil discharge cleanup.

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

COMMITTEE: Resources, Recreation and Development

ANALYSIS

This bill changes the rulemaking authority of the oil fund disbursement board.

This bill also increases existing fees for oil discharge cleanup.

This bill is a request of the oil fund disbursement board.

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Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.

09-0285

08/10

STATE OF NEW HAMPSHIRE

In the Year of Our Lord Two Thousand Nine

AN ACT relative to oil fund disbursement board authority and fees for oil discharge cleanup.

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

1 Oil Discharge and Cleanup Fund; Definitions. Amend RSA 146-D:2, I to read as follows:

I. “Distributor” means any person, wherever resident or located, who imports or causes to be imported oil, as defined in this section, into the state, except those using oil pipelines, railroads, and highways to transport oil products between states other than New Hampshire, or for the international transport of oil products; provided, however, that bringing [motor fuel] oil into the state in the fuel supply tank attached to the engine of a vehicle or aircraft shall not be considered importing. “Distributor” does not mean an oil spill cleanup organization or other person acting to contain, remove, clean up, restore or take other remedial or corrective action or measures with regard to the spillage or discharge of oil, or threatened spillage or discharge of oil.

2 Oil Discharge and Cleanup Fund; Fee Increase. Amend RSA 146-D:3, II to read as follows:

II. Any distributor who imports, or who causes oil to be imported into this state shall first be licensed with the department of safety. A fee of [$.015] $0.0175 per gallon of oil shall be assessed at the time of importation into this state. All fees shall be deposited in the oil discharge and disposal cleanup fund established under this chapter. If the fund’s balance becomes greater than [$10,000,000] $5,000,000, the fund assessment fees provided for in this paragraph shall be discontinued and only reestablished when the fund’s balance is less than [$5,000,000] $2,500,000. Any distributor who imports or blends home heating oil which is subsequently sold as diesel fuel for the propulsion of motor vehicles shall report the fuel as required in RSA 146-D:3, III. Any person purchasing home heating oil for diesel use and not declaring this intent to the distributor at the time of purchase shall be liable in the same manner as the distributor would be.

3 Oil Discharge and Cleanup Fund; Collection. Amend RSA 146-D:3, VI to read as follows:

VI. The fee collected on [motor fuels] oil shall be deposited in the oil discharge and disposal cleanup fund, except as provided in subparagraph (b), and divided as follows:

(a) A fee of [$0.015] $0.0175 shall be assessed for each gallon of diesel fuel.

(b) For each gallon of gasoline for which a fee is assessed, [$0.0125] $0.0148 shall be placed in the oil discharge and disposal cleanup fund and [$0.0025] $0.0027 shall be placed in the gasoline remediation and elimination of ethers fund established under RSA 146-G.

(c) For all fees assessed on gasoline during the period from January 1, 2001 to July 1, 2001 and deposited in the account for reimbursement of owners of eligible underground storage facilities, 18 percent of those fees shall be transferred to gasoline remediation and elimination of ethers fund established under RSA 146-G.

4 Oil Discharge and Cleanup Fund; Rulemaking. Amend RSA 146-D:5, I to read as follows:

I. The board shall adopt rules, pursuant to RSA 541-A, relative to:

(a) Processing applications for [compensation] reimbursement from the oil discharge and disposal cleanup fund.

(b) Procedures for verifying reimbursement claims presented under this chapter.

(c) Specifying reimbursement costs in relation to reimbursements claimed.

(d) [Developing] Establishing eligibility criteria in addition to the requirements of RSA 146-D:6, I and I-a.

(e) [Repealed.]

(f) Waiver of penalties due or past due under RSA 146-D:3, III.

(g) Establishing cleanup cost and third-party damage cost co-payment criteria in addition to the requirements of RSA 146-D:6, II(a).

5 Effective Date. This act shall take effect July 1, 2009.

LBAO

09-0285

01/07/09

HB 355-FN-A - FISCAL NOTE

AN ACT relative to oil fund disbursement board authority and fees for oil discharge cleanup.

FISCAL IMPACT

    The Department of Environmental Services states this bill will increase state restricted revenue by $2,236,829 in FY 2010 and each year thereafter. This bill has fiscal impact on county and local revenues or state, county and local expenditures.

METHODOLOGY

    The Department of Environmental Services states this bill changes the rulemaking authority of the oil fund disbursement board and increases existing fees for oil discharge cleanup by $.0025 per gallon. The Department states for gasoline fuel imports $.0023 per gallon would go to the Oil Discharge and Disposal Cleanup (ODD) Fund and $.0002 would go to the Gasoline Remediation and Elimination of Ethers (GREE) Fund. The Department states for diesel fuel imports the entire $.0025 increase would go to the ODD Fund. The Department expects gasoline and diesel imports for FY 2010 to at least equal FY 2008 imports (729,369,733 gallons gasoline and 165,361,867 gallons diesel). Under this assumption the Department estimates state restricted revenue to increase by $2,236,829 in FY 2010 and each year thereafter, ($.0025 * 165,361,867 gallons of diesel = $413,405 and $.0023 * 729,369,733 gallons of gasoline = $1,677,550 totaling $2,090,955 to the ODD Fund; and $.0002 * 729,369,733 gallons of gasoline = $145,874 to the GREE Fund).