Lansing - Pipeline companies will have to pay more to transport gas through Michigan if legislation proposed by lawmakers passes.

The two bills, introduced by state Reps. Virg Bernero, D-Lansing, and Mark Schauer, D-Battle Creek, at a Friday press conference, would charge pipeline companies a yearly “impact fee” of $20,000 for each mile of pipeline within the state.

But some say the move could cause gas prices to go up and might lead to fees on other forms of energy transportation such as trains.

“The companies are going to say this is a new tax, and in a way it is,” Bernero said.

The money would go into a fund split equally between the state and the county where the pipeline is located and would be used to help with cleanup and aiding victims if a pipe were to break.

It would also provide money for preventing an accident, although it’s not clear what public body would manage the fund or how money would be spent, Bernero said.

Bernero compared the idea to a fire department tax on citizens, saying the companies need to pay for the state’s and counties’ pipeline-related costs.

But the legislation could change before it comes up for vote.

“I’m not saying this legislation is perfect.” he said. “We’re willing to change the overall amount.”

The bills’ introduction coincided with the two-year anniversary of a Wolverine Pipe Line Co. accident in Jackson County. A pipeline break that forced more than 1,000 Blackman Township residents from their homes for several days.

Families still have not been fully compensated for the damage, Schauer said.

Wolverine officials want to build a 26-mile pipeline along the south side of Interstate 96 and are awaiting approval from state departments such as the Michigan Public Service Commission. The proposed law would cost the company $520,000 for the Lansing area pipeline.

As expected, company officials don’t see the bills as a good idea.

“Overall, this is nothing more than a tax on the consumer,” Wolverine spokesman Tom Shields said. “It doesn’t do anything to provide additional safety precautions.”

Several pipeline safety bills are currently being considered in Congress, and Shields said the federal standards are continually updated with technology.

The legislation doesn’t charge railroad companies to transport fuel, and accidents are more frequent with trains, Shields said, pointing out the recent Potterville train derailment.

“It’s doing nothing but raising the cost of energy,” he said.

If passed, the law would likely be challenged in court.

“It’s a complex legal area,” Bernero said. “Early on, I was warned that it’s ripe for court challenges.”

Still, Bernero said the legislation is needed.

“Sometimes federal regulators are a little too cozy with industry,” he said.