Another budget issue facing the General Assembly is the promised full repayment of monies to the Underground Storage Tank Indemnification Fund. If adequate repayment isn’t done in this coming year’s budget, it could result in an increase in gasoline prices.

Gov. Rendell’s budget contained $2.5 million of the $10 million repayment the Fund was supposed to receive this year, according to budget agreements made in 2002-03. In 2002 $100 million was borrowed from the Fund to balance the budget with the promise to pay it back.

The Indemnification Fund finances a state-sponsored insurance program to cleanup leaks from underground storage tanks paid for by a per gallon charge on gasoline assessed on service station dealers. DEP is also authorized to receive monies from the Fund to do tank cleanups and provide funding to certain tank owners for cleanups.

Actuarial studies done on the Fund show that if the repayment schedule isn’t met, the per gallon fee will have to be increased, something that will be automatically reflected at the pump.

Click Here for more information on the Fund and its programs. Click Here for information on DEP’s Storage Tank Program.

6/11/2004