ARLINGTON, Va. -- The upcoming year promises to bring more of the same for fuel retailers a woeful lack of federal funding for state agencies burdened with underground storage tank (UST) mandates set forth in the Energy Policy Act of 2005, according to a report by the Petroleum Marketers Association of America (PMAA).
Before adjourning, the 109th Congress passed a continuing resolution that will fund all government programs (not already covered by appropriations laws) at the lowest number of the House, Senate or current funding levels. Originally, [image-nocss] this funding scheme was to be in effect through February 15 only; however, House and Senate appropriators have announced that they will continue funding most of the government in this manner through the end of September. That means, for most of this year, there will only be $72.7 million appropriated from the LUST Fund.
Originally, the president proposed in his budget an additional $25 million or more for State and Tribal Assistance Grants (STAG) to help states implement the UST mandates contained in last year's energy bill. House and Senate appropriators both balked at this number and were prepared to give only an additional $6 million.
This presents an enormous problem to states already grappling with a lack of funds to hire and train more tank inspectors, according to PMAA. New funding for FY 2008 will now not be available until the fourth quarter of 2007 at the earliest. The EPA has indicated on several occasions that they understand the state budget problems created by the 2005 Energy Bill mandates and will be flexible. In theory, because of federal funding shortfalls, some states may be forced to return enforcement responsibilities to the EPA.
PMAA has met with several congressional leaders to discuss legislative flexibility for states; however, the changes in majority control complicate those options.
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