Bill for Funding IL LUST Fund on Governor's Desk
Affected stakeholders of the Illinois Leaking Underground Storage Tank (LUST) Fund should take note of SB2046. This bill was presented yesterday, April 14, to Governor Rauner for approval. SB2046 includes Article 5 that would issue appropriations to the LUST Fund and allow immediate payment to existing approved reimbursement claims.
While there is some skepticism about the Governor's willingness to sign this bill, it’s possible there are enough votes in the House and Senate to override his veto. We have provided the Governor’s contact information below for those willing to voice your support for the bill. You may also want to contact your local representative to voice your support.
US EPA Voices Concern
On March 21, 2016, the U.S. Environmental Protection Agency (EPA), Region 5, addressed a letter to Lisa Bonnet, the director of the Illinois Environmental Protection Agency (IL EPA) voicing concern about the delay in reimbursement payments and the long term operation of the IL LUST Fund. In the letter, Robert Kaplan, Acting Regional Director of EPA Region 5, requested a response within 30 days that would include a plan for obtaining authority from the State Comptroller to issue reimbursement payments to Owners/Responsible Parties with approved claims. We have been unable to confirm if a response has yet been provided to EPA.
Most notable is the fact that within the letter the IL EPA is reminded that the LUST Fund serves as a Financial Responsibility (FR) mechanism for tank owners and operators and that by halting reimbursements for the last eight months, it adversely impacts the LUST Fund’s fulfillment of the federal FR requirements. Mr. Kaplan also noted that they had previously expressed concerns over the fact that $20M was redirected during 2015 to other non-LUST programs further jeopardizing the ability of the Fund to continue to serve as an acceptable FR mechanism. EPA warned that, should the State fail to issue reimbursement payments, the EPA would consider withdrawing their approval of the IL LUST Fund. Such withdrawal would require that owners and operators obtain an alternative FR mechanism immediately to comply with the federal FR rules. Alternative FRs would include private insurance, surety bonds or self-insurance.
Over the past year, approval of the 2016 fiscal year budget has become a political and partisan debate with little or no progress. There have been several House and Senate bills presented to the General Assembly that would resolve the appropriation issue of the IL EPA Fund (among others). However, none have made it into the hands of the Governor until yesterday.
Have a question about the IL LUST Fund?
Contact Lori Brashers, Illinois Program Manager at 954-977-3775, ext. 114.
