S.C. gas tax hike
in pipeline?Bill would raise tax to
protect groundwater from leaking storage
tanksBy SAMMY
FRETWELLsfretwell@thestate.com
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 hike
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, “but current funding levels do not allow us to address
those.’’
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.
“A lot of these places would probably close. Our goal is to keep
our groundwater clean.’’
Reach Fretwell at (803) 771-8537.
LEAKING STORAGE TANKS THREATEN GROUNDWATER
Underground fuel tanks, used to hold gasoline and other petroleum
products, continue to leak and pollute groundwater across South
Carolina. The state and federal governments say the state has more
than 3,000 tanks that need attention, but money is scarce to
investigate and clean up spills. Here are the 10 worst
counties:
Greenville 231 Charleston 206 Horry 198 Spartanburg 196 Florence
188 Richland 168 York 137 Lexington 131 Anderson 108 Orangeburg 103*
Includes confirmed leaks and those suspected of leaking
SOURCE: S.C. Department of Health and Environmental Control
WORST STATES FOR UNDERGROUND TANK CLEANUPS
South Carolina has one of the least effective underground storage
tank cleanup programs. Here are the states with the most serious
tank troubles:
State |
Leaking tanks* |
Florida |
15,229 |
California |
14,618 |
Michigan |
9,082 |
Illinois |
7,870 |
North Carolina |
6,578 |
Texas |
4,181 |
Pennsylvania |
4,063 |
New Jersey |
3,935 |
South Carolina |
3,373 |
Wisconsin` |
3,320 |
Note: This includes sites undergoing cleanup work but that have
not been cleaned up satisfactorily
SOURCE: U.S. Environmental Protection Agency |