Michigan News And Capitol Report, Week Ending Friday, April 12th, 2024

Whitmer, Highway Administrator Say Gas Tax Needs Replacing

(KALAMAZOO) - Gov. Gretchen Whitmer acknowledged Thursday that using a vehicle-miles-traveled concept and toll roads are possible replacements being discussed for the “antiquated gas tax" as officials look toward future road funding options.

Appearing with Federal Highway Administrator Shailen Bhatt in Kalamazoo Thursday for a large infrastructure announcement, Whitmer said the governor’s office is no longer talking about raising gas taxes. In 2019, Whitmer infamously proposed raising Michigan's now-30-cent-a-gallon gas tax another 45 cents.

Now, in the era of fuel-efficient vehicles and electric vehicles, putting a surcharge on gasoline purchases to fund road repairs will be gradually less effective every year. Whitmer acknowledged that Thursday.

“I think before too long we’re going to have something on the table,” she said.

She said toll roads could be a part of the solution, but not the total. She also said a miles-traveled option was also on the table.

“I think that miles traveled is an important measurement for how we should be long-term looking at funding the roads,” Whitmer said.

Bhatt said the nation's freeway system was something that even libertarians agreed needed investment because of the importance the roads represented to the nation. However, the decline of the gas tax revenue was posing a mounting problem that was being discussed nationally. He said raising the gas tax would be wildly unpopular politically.

“Whatever is going to replace the gas tax is also going to be politically unpopular and that is the challenge, going to elected officials and saying, ‘Let’s do this politically unpopular thing’,” he said.

He said many ideas have been kicked around the Hill and there would have to be a much larger discussion to see what would come out on top. He mentioned road usage fees through tolls, road usage charges or vehicle-miles traveled. 

He said there was funding being put in the next bipartisan infrastructure bill that would start studying what the “son or daughter” of the gas tax could look like.

“At the end of the day, people love to drive, but they don’t like to pay for it,” Bhatt said.

Bhatt said other states around the nation were also discussing the idea of miles traveled, but each state had different names attached, such as Vehicle-Miles Traveled in Delaware, and Road-Usage Charge in Colorado or the Mileage-Based User Fee.

“We keep changing the name because it’s not going to be popular for privacy concerns, but at the end of the day, it’s not that much different than the gas tax,” he said. “You basically buy as much gas as you use for the most part, and this would just say you buy use of the road for how much you are traveling.”

Why Whitmer, Bhatt Were In Kalamazoo, Battle Creek

Whitmer was with Bhatt Thursday to announce a $38 million federal grant to help update Kalamazoo's drainage infrastructure to reduce the city's chronic flooding issue. A redesigned transportation network is also in the mix. She said there were also grants going to Southeast Michigan and a grant going to the Michigan Department of Transportation to reduce flooding on 28th Street in Grand Rapids.

“My missive to my team and state government was get every federal dollar we can into Michigan. I want the most per capita than any other state,” Whitmer said. “I’m proud to say we’ve gotten a lot done.”

She also mentioned several other projects being funded by the Biden Administration, such as the Soo Locks project.

Rep. Julie Rogers (D-Kalamazoo) said the “Promoting Resilient Operations through Transformative, Efficient, and Cost-saving Transportation (PROTECT)” grant was welcome and thanked the administrator for choosing the city.

“I want to thank Gov. Whitmer for traveling up and down the I-69/I-94 corridor and coming over and over to Kalamazoo, multiple weeks in a row, so we’re very excited to have you again,” she said.

Sen. Sean McCann (D-Kalamazoo) said he was glad to see the continued development of a project he started when he was a state representative. 

“$38 million is a huge deal,” he said.

After taking questions from the press, Whitmer traveled to Battle Creek, where she held an event with Rep. Jim Haadsma (D-Battle Creek) to promote the repeal of the retirement tax and the Working Families Tax Credit passed by the Legislature last year.

The two-term incumbent happens to be running for reelection in a district former Republican President Donald Trump has won twice before.

Congressional Delegation Announces PFAS Regulations

U.S. Rep. Dan Kildee (D-Flint) has introduced three pieces of legislation related to PFAS, or per- and polyfluoralkyl substance chemicals, calling on Congress to pass them following the Biden Administration’s release of the first national drinking water standard for the chemicals.

The new regulation requires PFOA and PFOS chemicals, two of the most common types of PFAS, to clock in at four parts per trillion or less. Other types are capped at 10 parts per trillion.

Kildee said on a press call Wednesday that he’s looking for support on the VET PFAS Act, which would allow Veterans’ Affairs centers to provide healthcare and benefits to military veterans and their families after they are exposed to PFAS.

His second piece of legislation, the Expanding Seniors’ Access to PFAS Testing Act, would require Medicare to cover PFAS blood testing. The final act is the Better Care for PFAS Patients Act, which would provide medical professionals with updated best practices and advice on how to treat PFAS-exposed patients.

U.S. Rep. Elissa Slotkin (D-Holly) said she has been pushing the U.S. Department of Defense to understand its obligation to clean up PFAS contamination on military bases in Grayling and Oscoda, which have been points of concern for those invested in the “forever chemicals.”

U.S. Rep. Debbie Dingell (D-Dearborn) said that since her day one in office, she’s been calling for a national drinking water standard to replace the guideline that was more lenient than the Michigan standard. 

“We have more contamination sites than most do because we’re looking for it,” Dingell said. 

Dingell called herself “Debbie Downer” before stating that Michigan still has PFAS in too many places. She called for Congress to pass legislation to get PFAS out of firefighting equipment like their protective gear and tools they use as well as eliminating wrappers at fast food restaurants from containing PFAS.

“It’s in our socks. It’s in our aprons. With the noise we’ve made, (PFAS) hasn’t been banned. But, you know, I’m a lousy cook. I use Teflon pans because I don’t want it to stick,” Dingell said. 

Implementation in the state may cause strain to smaller water treatment systems when they purchase and maintain the equipment and practices to meet the new standard. Senate Majority Leader Winnie Brinks (D-Grand Rapids) said it can be expensive to retrofit older water systems and that as municipalities come to the state, they will help the municipalities figure out a combination of local, state and federal funding sources.

“I'm spending more time on water and sewers. Water may be a little more glamorous than sewers,” Dingell said.

Dingell said Wednesday’s announcement has been scientifically screened, and that elected officials have to be “working smart” to figure out the best policies and funding sources for implementation. 

NFL Draft Bringing In $160M To Detroit Economy, Economic Group Says

The 2024 National Football League (NFL) draft April 25-27 in Detroit will bring $160 million to the city, according to an Anderson Economic Group report Monday, with $97.5 million in direct economic impact and another $35.1 million in attendee expenditures.

Football fans from across the country are expected to watch their favorite teams pick mostly current college players to play for their teams in the coming year. As part of the experience, Detroit, the NFL and other sponsors will offer numerous games, events and attractions.

"Housing the NFL draft is another exciting win for Detroit and presents invaluable opportunities for the city to showcase its culture on a national stage, once again potentially fostering long-term tourism and investment prospects," Anderson Economic Group Vice President Tyler Theile said.

To determine the direct costs and expenditures, the group said they calculated the amount both inside and outside the event. This included hotels, spending at restaurants and bars, and other shopping.

The Detroit Regional Chamber of Commerce reported data out of Kansas City for the 2023 NFL draft had an economic impact of $164.3 million, which included $108.8 million in direct impact and $55.5 million in indirect impact. There were about 312,000 people who attended the event.

Theile told the chamber in February that the excitement surrounding the playoff run of the Lions could drive higher spending.

"There's the core indirect impact, which is the fact that when the dollar is spent due to an event, and it's a net new dollar, it doesn't stop there. It's spent and re-spent," she said.

She told the Chamber their impact analysis didn't include things like national broadcasting rights, community impact, tourism impact and the number of people inspired to return after the initial visit.

The stage for the 2024 NFL draft would be near the Monroe Street Midway and Hart Plaza.

Feds Say Enbridge Trespassing On Tribal Land

The U.S. Department of Justice (USDOJ) Wednesday agreed that Enbridge Energy's pipeline is trespassing on the land of the Wisconsin-based Bad River Band of the Lake Superior Tribe of Chippewa Indians.

USDOJ Asst. Attorney General Lewis Yelin and Amber Blaha, an attorney for the USDOJ’s Environment and Natural Resources Division, asked the U.S. Seventh Circuit Court of Appeals to affirm the lower court’s order that the Canadian-based Enbridge’s Line 5 oil pipeline is illegally trespassing on tribal lands, and urges the court to penalize the company more, but the brief argued the implication of the court-ordered shutdown did not fully consider the treaty obligations between the United States and Canada.

“In the view of the United States, the district court failed to adequately assess all of the public interests in crafting its injunctive relief or to adequately weigh them in light of all the circumstances and equities,” the government’s filing reads.

The government’s brief, which advocates sending the suit back to the lower court to re-evaluate the public interests, comes at the request of the court, joining briefs from the Canadian government, unions and other stakeholders.

In a statement, Enbridge said shutting down Line 5 before relocating it outside the reservation would violate the 1977 Transit Pipeline Treaty between the U.S. and Canada.

“The Government of Canada has made its position clear: Such a shutdown is not in the public interest as it would negatively impact businesses, communities and millions of individuals who depend on Line 5 for energy in both the U.S. and Canada,” said Enbridge spokesperson Ryan Duffy.

“Enbridge continues to work diligently to find an equitable and amicable solution with the Bad River Band that recognizes the Band’s sovereignty and addresses their concerns while also allowing the continued delivery of vital energy that millions of people rely on every day throughout the Great Lakes region,” he added.

An estimated 540,000 barrels of light crude oil and natural gas liquids flow through Line 5 daily, supplying refineries in Ontario, Michigan, Ohio and elsewhere, according to court filings.

Green groups and businesses called the government’s brief disappointing, saying it prioritizes Enbridge over the Bad River Band’s sovereignty.

“The Department of Justice did not fully advocate for Tribal sovereignty nor environmental protection, and we are deeply concerned by the potential ramifications of the Administration's brief," said Natalie Cook, senior field organizer of the Sierra Club.

An attorney for Enbridge told the appeals panel in February that a shutdown would cause “massive disruption in energy supplies and economy in Midwest and Canada” while the Bad River Band’s attorney argued that even if Enbridge moves Line 5 off the reservation, it doesn’t take it out of the wetlands.

The appellate panel said it “really” wanted to hear from the government before deciding.

The district court ordered Line 5 be decommissioned within three years at the reservation and pay $5.1 million for trespassing.

Duffy said Enbridge began work on relocating the Line 5 pipeline off the Reservation “long before the federal court’s ruling last summer, even though in 1992,” the two sides signed an agreement allowing for the pipeline to remain through 2043.

“Enbridge does not intend for operations to remain on the Bad River Reservation a moment longer than it takes to relocate the segment of Line 5 around the Reservation,” he said. “It should be noted that as part of that 1992 agreement, Enbridge has valid easements and permission to operate on the vast majority of tracts crossed by Line 5 on the Reservation.”

In Michigan, Attorney General Dana Nessel continues to fight Line 5 in the Straits of Mackinac, arguing it is a nuisance, violates public trust and environmental laws.