[1] NOTE: As provided in LFC policy, this report is intended only for use by the standing finance committees of the legislature. The Legislative Finance Committee does not assume responsibility for the accuracy of the information in this report when used in any other situation.

Only the most recent FIR version (in HTML & Adobe PDF formats) is available on the Legislative Website. The Adobe PDF version includes all attachments, whereas the HTML version does not. Previously issued FIRs and attachments may be obtained from the LFC’s office in Suite 101 of the State Capitol Building North.

F I S C A L I M P A C T R E P O R T

SPONSOR:	Burpo		DATE TYPED:	01/28/02		HB	117
SHORT TITLE:		Petroleum Products Loading Fee				SB
					ANALYST:		Valenzuela

REVENUE

Estimated Revenue

Subsequent

Years Impact

Recurring

or Non-Rec

Fund

Affected

FY02

FY03

$1,125.0

$1,1250.0

Recurring

Corrective Action Fund

(Parenthesis ( ) Indicate Revenue Decreases)

Duplicates SB 232 and SB 259 in part

SOURCES OF INFORMATION

LFC files

Department of Environment (DOE)

SUMMARY

Synopsis of Bill

House Bill 117 amends the Petroleum Products Loading Fee Act to restrict the exemptions of paying the petroleum products loading fee by removing subsection F, which applies to registered Indian tribal distributors. In essence, these distributors would no longer receive the exemption, and thus be required to pay the fee.

Significant Issues

Distributors in two Native American pueblos (Nambe and Santo Domingo) would be impacted by this change. The Department of Environment estimates that 2,500,000 gallons/month of gasoline are distributed to New Mexico gasoline retailers from each of these distributors, for which the petroleum products loading fee is not being paid. Based on this amount, the department estimates that an additional $1,125.0 will accrue to the state. The revenues from this fee are deposited into the Corrective Action Fund, the proceeds of which are used to remediate contamination at gasoline facilities.

FISCAL IMPLICATIONS

House Bill 117 does not carry an appropriation. Enactment of the bill will generate $1,125.0 for the Corrective Action Fund. The Department of Environment has in place the systems, staff and processes to absorb the collection of the increased revenue.

ADMINISTRATIVE IMPLICATIONS

Enactment of House Bill 117 will give the department more leverage to create cooperative agreements with tribal entities on cleanup and revenue issues.

CONFLICT/DUPLICATION/COMPANIONSHIP/RELATIONSHIP

House Bill 117 is duplicated by Senate Bill 232. By eliminating deductions for gas sales on Indian reservations, Senate Bill 259 achieves the same goal by amending Section 7-13-4, which is the cross-reference contained in this bill.

MFV/ar