The Storage Tank Advisory Committee’s Fee Subcommittee discussed a proposal this week by the Department of Environmental Protection to increase registration fees going into DEP’s Storage Tank Fund for underground and aboveground storage tanks.

DEP projects a deficit of over $1 million in the Storage Tank Fund beginning in fiscal year 2006-07 increasing to $12 million in 2008-09. With the proposed increase, DEP would have a growing carryover balance in the Fund building to $10.7 million in 2009-10.

The proposed new rate structure would be:

Aboveground Tanks Now New Increase

Underground Tanks Now New Increase

DEP is also proposing an automatic cost of living adjustment for fees in the future.

Registration fees account for about $3.2 million in revenue now for the Fund. That would increase to about $9.5 million after the proposed changes. DEP’s total revenue for the Fund in 2004-05 is expected to be $11.7 million, including variable income from cost recovery actions, with expenditures of about $10 million.

DEP noted the fees have not been changed since the Storage Tank and Spill Reduction Act was passed in 1989.

Any fee increase would have to be proposed in the form of a regulation that would go through the regulatory review process beginning in June 2005, according to DEP’s schedule. No new fees would be collected until the regulation was finalized in August of 2006, again according to DEP’s schedule.

DEP expects to schedule a follow up meeting of the Fee Subcommittee on October 13 to continue work on the proposal.

9/17/2004