State of Michigan DEPARTMENT OF NATURAL RESOURCES Lansing
JENNIFER M. GRANHOLM governor		REBECCA A. HUMPHRIES director

BILL ANALYSIS

BILL NUMBER:	HB 4111 (AS INTRODUCED)
TOPIC:	Require that wholesalers and fuel terminals make gasoline without ethanol available for use in watercraft at marinas
SPONSOR:	Representative Richard LeBlanc
CO-SPONSORS:	None
COMMITTEE:	Commerce
Analysis Done:	February 24, 2009

POSITION

The Department of Natural Resources (Department) supports this legislation.

PROBLEM/BACKGROUND

In the rush to alternative fuels there has been a tendency to create various mixtures of gasoline, diesel and other fuel commodities with various amounts of biological additives such as ethanol. The concern is that traditional fuels are becoming scarce or non-existent.

DESCRIPTION OF BILL

House Bill 4111 requires that fuel wholesalers and fuel terminal operators continue to offer gasoline, without added ethanol, to watercraft fuel dealers. Fuel terminal operators who sell less than 25 percent of their motor fuel for use in watercraft would be exempt from this requirement.

SUMMARY OF ARGUMENTS

Pro

Boaters have a legitimate concern about utilizing ethanol-enhanced products for marine engines. The moisture absorbing properties of ethanol-enhanced fuel products can cause serious problems for marine engines. This bill recognizes that reality and the intent of this legislation would be to ensure that marine fuel needs are recognized in the fuel marketplace. This bill has state marina benefits as well. The current fuel contract will expire in August of 2009, and the state would also prefer to have the option of including straight gasoline in any fuel contracts that would be supplying state-owned marinas.

Con

None

FISCAL/ECONOMIC IMPACT

Are there revenue or budgetary implications in the bill to the --

(a) Department

Budgetary:

None

Revenue:

None

Comments:

None

(b) State

Budgetary:

None

Revenue:

None

Comments:

None

(c) Local Government

Comments:

None

OTHER STATE DEPARTMENTS

None

ANY OTHER PERTINENT INFORMATION

This bill is identical to HB 6481 of 2008.

ADMINISTRATIVE RULES IMPACT

Rules can be promulgated to provide for administration of the act.

_______________________________

Rebecca A. Humphries

Director

_______________________________

Date

PRD