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Utah's proposed gas tax gets 'watered down' by Idaho lawmakers

The bill now shifts focus on increasing fuel supply by fast-tracking pipeline projects
Saving The Great Salt Lake
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BOISE, Idaho — Neighborhood disagreements are nothing new, but when it's between two bordering states— that's a whole different story.

After weeks of interstate tension over Utah's proposed gas tax and Idaho's threat to withhold vital water rights, the two state governments appear to have reached an agreement.

RELATED | Idaho Speaker calls Utah's proposed refinery tax 'bull manure', costing Idaho drivers more at the pump

The whole conflict started when Utah Rep. Cal Roberts proposed a plan that would slash the state's gas tax for consumers by up to 50%. To offset the lost revenue, some Utah lawmakers hoped to impose a "refinery tax" on fuel produced in Utah, including fuel exported to other states, such as Idaho.

At first, Idaho House Speaker Mike Moyle was none too pleased to hear that his Utah counterparts were pushing a gas tax proposal through the Utah Legislature.

"If you're going to do this, we're going to look at ways to get that money back from Utah," said Speaker Moyle of the proposal at the time.

Moyle ultimately warned his Utah neighbors that Idaho could hold back water from the Bear River, which is the main tributary that flows into the Great Salt Lake. That threat struck a nerve as the Great Salt Lake is currently struggling with historically low water levels.

Find out how the two state governments reconciled their differences

Utah's gas tax proposal has been 'watered down'

Utah's House Speaker Mike Shultz was taken aback by what Moyle told Idaho News 6.

"It's immature and a little bit childish and a little bit disappointing to be honest with you. I think Idaho trying to kill the Great Salt Lake probably isn't a good thing," said Shultz. "Certainly, isn't a good for Idaho. I think hopefully all can be adults in the room, figure out where our disagreements are, try to find a way to come together."

Idaho House Speaker Moyle said he was open to discussions with Shultz as well as getting the Governor's and Congressional delegations involved.

"Reasonable people, especially in Utah, will realize this is not good. This is not the right thing to do. And hopefully they will pull back on it," Moyle said.

And that's exactly what happened Monday in Salt Lake City as Utah's Governor inked a deal with Idaho over the management of the Bear River.

Utah's House Speaker Mike Shultz still poked a little fun at Idaho. "Because Idaho wanted to be part of the discussion, it forced important conversations."

Following negotiations with the petroleum industry and Idaho officials, Utah lawmakers "rerouted" their approach.

Joel Ferry, who serves as the Executive Director at the Utah Department of Natural Resources, put it this way: "Instead of tit for tat and going after each other, how can we come together for a positive solution?"

The bill now shifts focus to increasing fuel supply by fast-tracking pipeline projects and expanding refinery capacity, and there will no longer be a tax on refineries. And in the end, Idaho consumers should not expect to see a price increase at their gas pumps.