March 5, 2003

Thank you, Mr. Chairman, for holding this hearing regarding the Leaking Underground Storage Tank Program.

This Subcommittee held a hearing last May to examine the scope and the affect MTBE has had on groundwater throughout our country. During the past ten years, MTBE, along with other additives such as ethanol, has successfully helped combat air pollution in many areas of the country. One unintended consequence of the use of MTBE as a fuel additive, however, has been groundwater contamination from leaking underground storage tanks and other sources.

I look forward today to hearing from our witnesses on how we can strengthen enforcement of the existing tank regulations, as well as find ways to prevent future leaks from underground storage tanks. Prevention in the first instance rather than costly remediation after a release must be our goal.

Unfortunately, releases from underground petroleum storage tanks have already resulted in serious contamination and costly cleanup. In Michigan, the Department of Environmental Quality estimates that there are approximately 4,200 underground storage tank sites that will require public funding for cleanup with costs ranging as high as $1.7 billion.

EPA has informed us that one of the biggest challenges we face nationally is that the number of cleanups completed dropped 28 percent in FY 2002. This leaves us with a national backlog of 143,000 confirmed releases waiting to be cleaned up. Not surprisingly, the Administration’s budget falls far short in addressing this issue. The Leaking Underground Storage Tank (LUST) Trust Fund was created by Congress in 1986 and is financed by a 0.1 cent a gallon tax on motor fuels. The LUST Trust Fund was specifically created to address contamination from leaking underground storage tanks at gas stations and other facilities, which are often the source of MTBE and petroleum contamination in groundwater.

There is currently a surplus of $1.9 billion in the Trust Fund. It is estimated to grow under the President’s budget to $2.1 billion by the end of FY 2004, however, the President’s budget request is only asking for $72 million. This request is only 40 percent of the $180 million collected annually from the gasoline tax. Without using the money available in the Trust fund and the annual tax receipts, many abandoned gas stations contaminated with petroleum and MTBE releases across the country will not be cleaned up.

Mr. Chairman, I am pleased that our staffs have been working together in a bipartisan manner to address the funding, enforcement and prevention issues.

I note that the Senate Environment and Public Works Committee has already ordered reported similar legislation (S. 195). In order to move this legislation expeditiously, we should complete our negotiations, follow regular order, and conference a House bill with the Senate version.

 - 30 -