The Department of Insurance has proposed almost doubling the per gallon fee on gasoline to support underground storage tank cleanups, in spite of a statement from its actuarial consultant that no increase was needed for more than eight years.

The Department of Insurance representative on the Underground Storage Tank Indemnification Board formally proposed the increase of the fee from $.011 to $.02 per gallon, which would generate about $45 million annually.

The final-omitted regulation containing the fee increase, which is not subject to public comment, was submitted to the Independent Regulatory Review Commission last week and IRRC will meet to consider the regulation December 6.

Milliman, the actuarial firm, reported to the Underground Storage Tank Indemnification Board on September 21 that, “On September 29, 2003, the Board established an objective of having positive Cash and Invested Assets for a projection period of at least five years. Based on this criterion, no change in fees is necessary as the project shows USTIF having positive Cash and Invested Assets through the middle of the July 1, 2015-2016 fiscal year.”

11/16/2007