Public Act 390 of 2004

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• Introduced by Rep. Marc Shulman (R) on July 6, 2004, to eliminate the sunset on the collection of a 7/8ths cent-per-gallon "regulatory fee" imposed on the sale of petroleum products that is intended to be used for the cleanup of underground fuel storage tanks. Under current law, when the tanks are all cleaned up the fee would no longer be imposed. The bill would allow existing money in the underground fuel tank cleanup fund that is not needed to pay off the cleanup program's debt to be used for general environmental enforcement and regulatory actions, thereby supplementing general fund money in the budget, and avoiding more spending cuts.
  • Referred to the House Appropriations Committee on July 6, 2004.
    • Reported in the House on July 14, 2004, without amendment and with the recommendation that the bill pass.
  • Substitute offered by Rep. Mike Pumford (R) on July 14, 2004, to extend the tax for an additional two years, rather than indefinately, and use $50 million in the underground tank cleanup fund to avoid making spending cuts in the 2005 budget. The bill would use the remaining $120 million in the fund to pay off the Michigan Underground Storage Tank Financial Assurance (MUSTFA) program's remaining debt. The substitute passed in the House by voice vote on July 14, 2004.
  • Amendment offered by Rep. Mike Pumford (R) on July 14, 2004, to only extend collection of the "fee" until Sept. 30, 2006. The amendment passed in the House by voice vote on July 14, 2004.
  • Amendment offered by Rep. Mike Pumford (R) on July 14, 2004, to transfer money not needed to pay off the underground fuel tank cleanup program's debt to a state cleanup and redevelopment fund, which can be appropriated by the legislature for general environmental enforcement and regulatory actions, not just underground fuel tank cleanup. The amendment passed in the House by voice vote on July 14, 2004.
• Passed in the House (87 to 13) on July 14, 2004, to extend for an additional two years the 7/8ths cent-per-gallon fuel "regulatory fee" (tax) levied for the cleanup of underground fuel tanks, and use $50 million in the underground tank cleanup fund to avoid making spending cuts in the 2005 budget. Under current law, the tax would have ended on Sept. 30, 2004. Extending it will increase the tax paid by motorists by approximately $30 million a year. A new commission will advise what to do with that money. Note: A pending lawsuit against the state contends that the authority to levy this tax was eliminated once there was enough money to pay off the underground tank cleanup program's debt. [Vote Details and Comments]
• Received in the Senate on August 4, 2004.
  • Referred to the Senate Appropriations Committee on August 4, 2004.
    • Reported in the Senate on September 23, 2004, with the recommendation that the substitute (S-5) be adopted and that the bill then pass.
  • Substitute offered in the Senate on September 28, 2004, to replace the previous version of the bill with one that extends the tax or fee until December 31, 2010. The substitute passed in the Senate by voice vote on September 28, 2004.
• Passed in the Senate (32 to 5) on September 29, 2004, to extend until 2011 the 7/8ths cent-per-gallon fuel sale "regulatory fee" (tax) levied for the cleanup of underground fuel tanks, and use $43 million in the underground tank cleanup fund to avoid making spending cuts in the 2005 budget. Under current law, the tax would have ended on Sept. 30, 2004, and extending it will increase the tax paid by motorists by approximately $30 million a year. A new council will recommend fuel-related cleanups and other uses for the money, including existing fuel industry regulatory programs now funded by the general fund. The MUSTFA law requires the tax to be used for underground tank cleanup, and a pending lawsuit contends the tax should have been eliminated once there was enough money to pay off MUSTFA's debt. [Vote Details and Comments]
• Received in the House on September 29, 2004, to concur with the Senate-passed version of the bill, which extends the tax for another six years, rather than another two years. Passed in the House (74 to 31) on September 29, 2004. [Vote Details and Comments]
• Signed by Gov. Jennifer Granholm on October 12, 2004.