Dramatic Improvements in
Ozone Levels Should Lead
to Regulatory Relief
Using preliminary
ozone data for the 2006 ozone season, which ended on September 30,
Hamilton Consulting’s Bob
Fassbender prepared an ozone
update demonstrating the dramatic improvements in ozone levels
over the past few years. After decades of straining under federal
Clean Air Act ozone mandates, virtually the entire state of
Wisconsin now meets the stringent new 8-hour ozone standard – years
before the 2009/10 compliance deadlines. Those two counties that
barely missed hitting the standard (Door and Sheboygan) are on a
glide-path to do so before the upcoming deadline.
Substantial regulatory
relief should be just around the corner for businesses and citizens
located in those Wisconsin counties previously violating the federal
ozone standard. At this time, however, DNR continues to advance
costly regulatory programs that are no longer needed. We will know
soon if industry will see the long-awaited and much deserved
compliance dividend.
Mapping
the Road to Ozone Compliance
(Click
graphics to Enlarge Maps)
|
|
|
2002
Ozone
Nonattainment Projection |
2003-05
Actual
Ozone Nonattainment Areas |
2006
Projected Ozone Nonattainment
Areas |
Industry Pans DNR’s
Efforts to Set Energy Policy
On Oct.
23, DNR comment period ended on its proposal to implement EPA’s
Clean Air Interstate Rule (CAIR). Under CAIR, EPA requires utilities
to reduce air pollutants drifting across state boundaries that
contribute to violations of particulate matter and ozone standards.
Generally, DNR’s “alterations” to the EPA CAIR rule establishes a
policy preference for natural gas and renewables to the detriment of
coal.
DNR’s
rational for the draft
rule is set forth in its August 2006 background
memo to the Natural Resources Board. Industry’s comments focus
on the inappropriateness of DNR setting energy policy (usurping the
authority granted by the Legislature to the Public Service
Commission of Wisconsin), and the adverse energy cost implications.
Industry viewpoints are set forth in comments by Wisconsin
Manufacturers & Commerce, Wisconsin
Utility Association, Wisconsin
Industrial Energy Group, and the Wisconsin
Paper Council.
Rental Car Taxes Drive up Costs
The taxation of
rental car usage has significantly increased in recent years. Rental
car taxes exist in 38 states and are under consideration in many
others. Such taxes are above and beyond standard retail sales taxes,
vehicle licensing fees, and other taxes and fees.
The car rental industry has headed
up a campaign to raise public awareness about the impact of car
rental taxes. A recent article in Auto Rental News cites a
study by economists William Gale and Kim Rueben that concludes
that car rental taxes are inconsistent with basic principles of good
taxation.
Looked at by governments as a source of funding for
cash-strapped budgets, the taxes are often used to support local
funding for such things as sports stadiums, art centers and
convention centers. In Wisconsin and several municipalities, the
rental car tax is a key funding source for public transportation
projects. In Milwaukee, the latest municipality to increase car
rental taxes, are using the money to help fund a study to make
recommendations about local mass transit options.
Examples of car rental taxes:
Milwaukee |
Chicago |
Las Vegas |
Phoenix |
+5% Sales
Tax
+0.5 County Sales
Tax
+0.1% Baseball
stadium tax
+5.0% Car Rental
Tax
+ 3.0% Milwaukee
Exposition Tax
Total: 13.6% tax
on rental plus $2.00 per vehicle Regional Transit Authority
Fee |
+5% State Auto
Renter’s and Occupation Tax
+6% Metro, Pier,
and Expo Tax
+6% Chicago Lease
Transaction Tax
+$2.75 per rental
Chicago Lessor Tax
Total: 17% tax
on rentals plus $2.75 fee |
+7.75% Sales
Tax
+2% Clark County
Rental Car Fee
(funds performing
arts center)
+6% Nevada
Government Services Fee
+4% Nevada
Recovery Surcharge
Total: 19.75% tax on rentals |
+8.1% Sales
Tax
+Greater of $2.50
per day or 3.25% Maricopa County Car Rental
Surcharge
+5% Arizona Rental
Vehicle Surcharge^
Total: 13.1% tax
on rentals plus minimum $2.50 per day fee |
Study Committee to Tour Yucca Mountain Nuclear
Repository
The Legislative
Council’s Special Committee on Nuclear Power will tour the
proposed spent fuel disposal facility being developed by the U.S.
Dept. of Energy (DOE) at Yucca Mountain, Nevada, on Dec. 5,
2006.
The DOE began studying Yucca Mountain in 1978 to determine
whether it would be suitable for the nation's first long-term
geologic repository for spent nuclear fuel and high-level
radioactive waste. Currently stored at 126 sites around the nation,
these materials are a result of nuclear power generation and
national defense programs.
Members of the committee include: Rep. Phil Montgomery
(chair), Sen. David Hansen, and Reps. Robin Vos, Chuck Benedict, and
Mark Honadel.
Wisconsin Early Stage Symposium Helps Emerging
Companies
Become ‘Venture Ready’
The second annual
Wisconsin Early Stage Symposium was held October 30-31, 2006 at the
Monona Terrace Community and Convention Center in Madison,
Wisconsin.
The two-day conference included workshops to help both
investors and budding entrepreneurs understand the basics of angel
and venture investing and learn about other resources available to
entrepreneurs.
The Wisconsin Early Stage Symposium was co-produced by the Wisconsin
Technology Council, which is the non-profit science and
technology adviser to the Governor and the Legislature, and a number
of statewide and regional partners.
Transportation Funding Stressed
The Transportation Development
Association (TDA) held its annual meeting in Madison on
Thursday, October 26. The focus of the meeting was on public opinion
and political will relating transportation funding and investment,
particularly among Wisconsin’s business community, politicians and
general public. Attendees heard from TDA Executive Director Bob Cook
on the importance of maintaining the integrity of the Transportation
Fund and urging members of the business community to stress the
importance of a safe and efficient transportation to the economic
vitality of Wisconsin.
Transportation funding will be a major factor in the 2007-09
biennial budget bill when the legislature comes back for the 2007-08
legislative session. The segregated transportation fund was raided
the last two budgets and transportation stakeholders are preparing
to defend the fund in the upcoming
budget. |
