Leaking Underground Storage Tank Fund Protected: Reis’ bill exempts fund from being swept by Governor

February 23, 2006

Springfield.….Legislation introduced by State Representative David Reis (R-Ste. Marie) that has been approved by the Illinois House of Representatives, will exempt the fund from any administrative charge-backs. In FY 2005 the Leaking Underground Storage Tank Fund (LUST) in the State of Illinois was subject to a fund sweep of $12.1 million, as well as a special transfer of $33,900 that was issued by the governor in Executive Order 10.

“It’s been a practice of this administration over the past few years to raid dedicated special funds” said Reis. “Last year we passed a bill protecting the Retired Teachers Insurance Trust Fund. This year we want to protect the LUST fund from being swept.”

Part of the State’s taxes on motor fuel goes towards the leaking underground storage tank program. Gasoline and diesel are held in these tanks, and any leaks can cause soil and water pollution. In part, monies in the Underground Storage Tank Fund help pay for remediation and can be used to provide for alternative water supplies in cases of contamination.

“A small portion of the cost of every gallon of gas that is purchased in the state goes into that fund for environmental cleanups” said Reis. “Under the State Finance Act, the Governor has the authority to direct the Treasurer and Comptroller to transfer money from any fund to GRF in order to defray operating costs for the year. HB4334 protects the fund from administrative charge-backs, in the hopes that the money can be used for the purposes designated under law.”

According to Reis, the current administration has raided over $50-million out of the LUST fund in the last three years. The fund was initiated to meet a federal requirement that tank owners have a million dollars of coverage for their underground storage tank sites. “The reason the taxes go into the fund is for that environmental purpose” Reis said “and we believe that it should be left alone during the governor’s fund sweeps.”

The bill now moves on to the Senate where it has already picked up sponsorship. “I am very pleased the bill has moved on to the upper chamber” said Reis “and I’m looking forward to seeing it quickly approved and put into law so we can send the message that before the administration finalizes their budget they know that the LUST fund is hands off.”.