Gax tax increase
eyed to offset leak cleanup
By Sammy
Fretwell McClatchy
Newspapers
Legislators are considering an increase in the state gasoline tax
to bail out one of the nation's least effective groundwater-cleanup
programs.
The effort would help rid South Carolina of more than 3,300
underground storage tanks that officials say are leaking poisonous
chemicals.
Rep. Jeff Duncan, R-Laurens, has introduced a bill that would
raise the gas tax by one-half cent to generate an extra $17 million.
That would double revenues to clean up leaks and satisfy federal
concerns about the program.
"It's a big deal and something we need to address," Duncan
said.
The bill, approved Tuesday by a House subcommittee, would hit
motorists' wallets at a time of rising gasoline prices.
Gov. Mark Sanford and some state legislators already were raising
questions about the bill this week. Sanford spokesman Joel Sawyer
said the governor prefers the cleanup be funded through existing
sources of revenue, rather than raising taxes.
"The governor has been very clear about his stance on taxes,"
Sawyer said. "We would not accept a tax increase without a
corresponding tax decrease some other place." Republicans David
Umphlett of Berkeley and Joan Brady of Richland are on the House
committee considering the bill. They said they don't want the public
to pay to resolve a funding crisis that should have been addressed
long ago.
A rise in the state's 16.75-cent gasoline tax would affect
motorists every time they fill up at the pump, they said. Depending
on the type of vehicle and an annual mileage of 15,000, the tax
increase would cost between $20 and $50 a year.
"This thing should never have gotten down to this point," said
Umphlett, who said state environmental officials didn't tell him
about the problem until this year.
At issue is how to increase funding for a state pool that pays
for underground storage tank cleanups. The fund, which covers gas
stations and convenience stores, is inadequate to address the
leaking storage tanks across South Carolina, according to the U.S.
Environmental Protection Agency.
Gas taxes generate about $17 million annually for the pool. It
needs about $40 million a year.
If South Carolina doesn't substantially increase revenues for
underground storage tank cleanups, the EPA could take action that
would cause service station and convenience store owners to buy
private insurance, which would mean higher costs anyway. Michael
Fields, director of the S.C. Petroleum Marketers Association, said a
gas tax increase is the right way to finance the cleanup. Small
service station owners would be put out of business by high
insurance costs, he said.
"A person could have a very hard time even getting insurance if
they have older tanks with a history of releases," Fields said. "But
right now, we have a fund that, if adequately set up, gives us the
ability to go in and get these [pollution] releases out of the
environment." Grover Nicholson, chief of North Carolina's
underground storage tank program, said Southeastern states would
welcome more money for cleanups. But the best way to attack the
groundwater pollution problem is through private insurance, he
said.
Government cleanup funds don't provide much incentive for
underground storage tank owners to try to avoid leaks, he said.
"The trust fund, right now, is really a subsidy," Nicholson said.
"The costs are predominantly on us. They need to be predominantly on
the tank owner." The fund pays for leaks on property where
regulators know who the owner is as well as on abandoned sites.
South Carolina's tank cleanup fund requires businesses with
underground storage tanks to pay a $100 annual fee per tank. They
are covered for up to $1 million in cleanup costs after paying a
$25,000 deductible per leak.
In addition to the gas-tax increase, the bill before the
Legislature would raise tank fees to $135. By comparison, North
Carolina charges a $300 tank fee.
South Carolina, like North Carolina and some other states, has
known for years its tank fund was too small to pay for all the
needed cleanups. In September, the Environmental Protection Agency
warned the S.C. Department of Health and Environmental Control about
pending federal action if funds were not increased.
The EPA could refuse to recognize the state tank remediation fund
as a meaningful way to clean up leaking storage tanks. But tank
owners still would be liable to clean up the expensive problems.
"We've been concerned for a good while about the situation in South
Carolina," said John Mason of the EPA. "We've worked with states
down through the years on ways to increase revenue. For one reason
or the other, (South Carolina) was never able to make this
happen."
Mason, chief of the agency's underground storage tank section for
the Southeast, said South Carolina is among 10 states with the least
effective tank cleanup efforts in the country. Those 10 states
account for 61 percent of underground storage tank releases
nationally that have not been cleaned up, he said.
Leaking underground storage tanks are an ongoing concern because
of the threat they present to groundwater. Richland County has 168
sites with failing tanks that need attention, according to DHEC.
Leaking underground storage tanks are responsible for about 80
percent of groundwater contamination in the county, a 2006 state
pollution inventory shows.
Brady said the S.C. environmental agency's "first responsibility
is to the citizens of the state, to be sure the fund is solvent and
they have enough to maintain a level of safety. Right now, the fund
seems dangerously low, especially looking at Richland County's
[needs]."
State environmental officials said during a meeting with
lawmakers this week they've tried for several years to raise
awareness on the issue, but Brady and other House members said it's
the first time they've seen such a bill offered.
Either way, the issue needs resolution, said Kent Coleman, a
state underground storage tank regulator. Coleman said about 1,200
of the more than 3,300 leaking storage tanks are a high priority for
cleanup. Service station owner Butch Taylor said South Carolina
eventually may get rid of the tank cleanup pool and allow private
insurance to handle it. But for now, it needs to put more money into
the pool to cleanse groundwater and protect small service stations
that can't afford private insurance, he said.
At a
glance
The bill would generate an extra $17 million to clean up leaks
from underground storage
tanks. |