ARIZONA STATE SENATE
Phoenix, Arizona
REVISED
appropriation; underground
storage tank program
Appropriates $500,000 in FY
2002-2003 from the state general fund to the Arizona Department of
Environmental Quality (ADEQ) for deposit in the Area A account of the
underground storage tank (UST) revolving fund assurance account.
The state UST program was established in 1986 by the Legislature to implement UST regulations adopted by Congress in 1984. The UST program is designed to prevent and clean up releases of petroleum and other hazardous (regulated) substances into the groundwater, surface and subsurface soils. The state program also provides financial assistance to UST owners and operators for upgrading and removing tanks and remediating contamination from leaking USTs.
The UST program is self-funded, with primary revenues coming from a one cent per gallon excise tax on regulated substances (primarily petroleum), a $100 tank registration fee and several federal grants. The UST revolving fund consists of several accounts, including the assurance account, which is intended to provide coverage of corrective action costs incurred by a UST owner or operator and to pay for corrective action costs incurred by ADEQ.
As the UST revolving fund was building up revenues in the
early 1990s, monies were transferred from the fund for purposes unrelated to
the UST program. A total of $19 million
was transferred. Since 1996, the
Legislature has passed several bills to pay back the monies transferred from
the UST revolving fund. Since 1996, a
total of $6,628,000 has been appropriated from the general fund to the UST
assurance account. The Area B account
of the assurance account, representing revenues generated from every county in
the state but Maricopa County, has been paid back in its entirety. The Area A account of the assurance account
has not been repaid the balance of $12,423,700. (See attachment)
Legislation vetoed by the
Governor in 2000 would have authorized the collection of a temporary
$.01/gallon excise tax on regulated substances placed in USTs for three years
to pay for a municipal tank closure program for small communities as well as to
pay for approved but unpaid claims against the UST assurance account (S.B.
1319). This additional penny per gallon
excise tax would have generated approximately $72 million for the UST revolving
fund during this three-year period.
S.B. 1104 appropriates $500,000 from the state general
fund to ADEQ in FY 2002-2003 for deposit into the Area A account of the UST
assurance account to continue the repayment of monies transferred from the Area
A account for non-UST purposes.
1. Appropriates $500,000 in FY 2002-2003 from the state general fund to ADEQ for deposit in the Area A account of the UST revolving fund assurance account. These monies may only be used for the purpose of paying claims for partial coverage of correction action costs and shall not be used for agency administrative costs. Exempts this appropriation from lapsing, except that monies remaining unexpended and unencumbered on June 30, 2004 revert to the state general fund.
2. Provides for a general effective date.
Amendments
Adopted by the Appropriations Committee
·
Reduces the general fund appropriation to $500,000 and
delays the appropriation until FY 2002-2003.
· Requires any portion of the appropriation remaining unexpended and unencumbered on June 30, 2004 to revert to the state general fund.
Senate Action
NRAE 1/25/01 DP 8-0-0
APPROP 2/27/01 DPA 11-0-1
Prepared by Senate Staff
February 27, 2001