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Rental industry urges changes to fuel-metering rules for equipment rentals

November 07, 2025 | 2025 House Legislature MI, Michigan


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Rental industry urges changes to fuel-metering rules for equipment rentals
Representatives Aragona and Liberati presented a package (House Bills 4678 and 4679) addressing how equipment rental companies may charge customers for fuel. Sponsors and industry witnesses said a 2023 enforcement interpretation requires rental businesses to use metered pumps or otherwise charge for a full tank at return; that interpretation has produced cease-and-desist orders and fines for some companies.

Kevin Gurn of the American Rental Association told the committee the state has roughly 217 rental-company members and the bills would permit a practical alternative to expensive pump installations. Rental operators described the operational burden of sending employees to fill returned equipment and the capital cost to install compliant metered pumps—witnesses cited per‑pump costs in the $20,000–$30,000 range.

Kyle Keeley of Chet's Rental said his firm, with eight locations, was audited after charging customers by estimated gallons and received a cease-and-desist order; Keeley said the company sells about $60,000–$65,000 of fuel a year across its locations and cannot afford digital pump installations at each site. Scott Erwin of Deluxe Rental and Heath Cali of Sunbelt Rentals supported a bill that would allow limited fuel distribution (capped at 3,000 gallons per year per site in testimony) while using flow meters accurate to about ±1 percent and restricting distribution to rental equipment, not the general public.

Proponents said the change would reduce personnel time (estimates included multiple round trips per week to refuel equipment) and avoid customer disputes when a machine is returned short on fuel. The Michigan Department of Agriculture and Rural Development (MDARD) submitted an opposition card but did not appear; the clerk read numerous cards from rental businesses statewide in support.

No formal committee vote on the bills is recorded in the transcript; witnesses asked the committee to consider the operational cost and competitive impacts of the weights-and-measures interpretation.

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Scribe from Workplace AI
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