But that should be covered by the state's General Fund. With the backlog largely eliminated, it is time for the government to resume its financial responsibilities. Michigan's economic success rests, in part, on regulatory efficiency. In a major departure from standard practice, Sen. Smith is proposing to eliminate the fee cap. It also would subvert the clear intent of Congress to levy emission permit fees solely to offset administrative costs.
Utilities already pay far more in fees than the state spends on administering the permits.
If Sen. Smith is intent on further restricting industrial emissions, she can propose a new environmental tax. And with electric generating capacity already running short, Michigan can hardly afford to discourage power plant investment. Emissions controls have contributed to air quality.