Committee backs changes to oil spill cleanup fund fees after actuarial review; bill advances with implementation delay

CONCORD, N.H. — The Senate Ways and Means Committee voted Tuesday to advance a bill that raises and realigns import fees that support New Hampshire's oil cleanup and prevention funds, following an actuarial review and testimony from the Department of Environmental Services and industry stakeholders.

Representative Mike Edgar, speaking as a member of the Oil Fund Disbursement Board, introduced House Bill 658 and described its effect on two funds: the Oil Discharge and Disposal cleanup fund (ODD) and the Oil Pollution Control fund (OPC). Robert Bishop, administrator of the Oil Remediation and Compliance Bureau at New Hampshire DES, told senators the statute consolidates several import fees that date back decades and that the current rates (for example, 1.5 cents per gallon on gasoline and diesel and 4 cents per gallon on motor oil) have not kept pace with costs since the 1990s.

An actuarial firm, Taylor & Mulder, projected ODD and OPC spending and recommended an overall 8 percent increase in oil import fees to maintain financial viability over the next 10 years. Bishop cited the firm's use of historical remediation expenses, DES response records, U.S. Energy Information Administration fuel forecasts and other data to develop the projections.

The funds support removal of petroleum'contaminated soil and groundwater, the safe tank program and a heating tank replacement program for low'income homeowners, among other prevention and cleanup activities. Bishop and Jennifer Martz, supervisor of DES's fund management section, highlighted recent activity: more than 4,700 projects have been supported historically; the safe tank program replaced 202 tanks so far in fiscal year 2025; and the ODD fund recently supported redevelopment of a contaminated Manchester mill site that became a mixed'use, 250'unit housing project after removal of oil'impacted soil.

Industry and board members supported the measure. Senator Howard Pearl, a sponsor in the Senate, described the bill as an effort to realign fees so the party that imports a particular fuel type helps fund cleanups associated with that fuel. Tom Frawley, chairman of the Oil Fund Board and a fuel distributor, said the board and industry stakeholders support the proposal and emphasized the fund's long record of effective management.

The committee adopted a technical amendment to synchronize implementation dates with administrative processes, then voted "ought to pass as amended." Members also placed the bill on the consent calendar. Committee discussion noted that one of the funds (the OPC) is subject to a 5 percent sweep in the current House budget language, while the ODD fund is not; witnesses said DES budgets for short'term response capacity from the OPC fund and that the funds together reimburse roughly $12.5 million annually for corrective action plus nearly $6 million for administration, response and prevention in prior budgets.

The bill also extends the statutory authority to collect the import fees (which expire periodically) and temporarily continues current fee rates for six months to give the Department of Safety time to implement new licensing forms and training. DES staff said the staggered effective dates will allow the department to notify licensees and complete rulemaking and form changes before the new fee structure takes effect on Jan. 1, 2026.

Next steps: The committee's "ought to pass as amended" recommendation and placement on the consent calendar send the bill forward in the legislative process; a finance or fiscal review was requested by at least one senator during discussion.