Committee backs one‑time gas tax cut and permitting reforms aimed at easing supply constraints

The House Revenue and Taxation Committee adopted the first substitute and favorably recommended HB575, a measure that pairs a one‑time gas tax cut with permitting and incentive changes aimed at increasing fuel supply and lowering pump prices.

Representative Roberts said the bill accelerates a scheduled gas tax reduction into a 6¢ (roughly 15%) cut beginning in July, with an estimated fiscal impact of about $41,000,000 to the transportation fund. Sponsor testimony described the change as an acceleration of an expected decline tied to volatile rack prices rather than a permanent offset; sponsor emphasized the state will hold local road maintenance dollars harmless per the fiscal note.

The substitute also contains provisions to shorten permitting time frames for midstream pipeline projects, coordinate with a separate ombudsman bill, and expand the high‑cost infrastructure tax credit to include manufactured fuel storage (the record referenced Salt Caverns near Delta capable of storing up to 13 days of supply). Committee members asked whether other taxes (extraction, refinery) were changing; the sponsor said those taxes are not altered and the bill is principally a short‑term transportation fund reduction with supply‑side permitting reforms.

Lisa Wilson (UDOT deputy director) described projections for the gas tax rate, saying that natural fluctuations tied to rack prices are expected to reduce the tax rate into 2027; the sponsor framed HB575 as pulling that expected decline forward. Tim Davis (DEQ) testified in favor of streamlining permitting and clarified the substitute does not add regulatory authority but aims to improve permitting efficiency without undermining environmental protections.

The committee approved adoption of the first substitute and then favorably recommended the bill by voice vote.