Pa. considers adding a penny at the pump

HARRISBURG, Pa. (AP) — Anyone fueling up a vehicle in Pennsylvania soon may have to hand over an additional penny per gallon to pay to clean up damage from leaking underground fuel tanks.

Five years ago, the Underground Storage Tank Indemnification Fund was so flush with cash that legislators and then-Gov. Mark S. Schweiker borrowed $100 million from it to plug a hole in the state budget. Less than a third of that amount has been repaid.

But even if the loan is fully repaid, a state consultant says the obscure, state-administered insurance fund will be out of cash by 2015.

As a result, the fund’s board, with backing by the administration of Gov. Ed Rendell, has proposed nearly doubling one of the fees that finances it to 2 cents a gallon, and asked for a speedy approval from a state regulatory panel.

Senate Republicans accuse the administration of trying to mount a stealth tax increase, and question whether the higher fee is immediately necessary.

“We’re disturbed that the administration would propose what amounts to a $50 million increase in the gas tax without apparent justification,” said Joe Pittman, the chief of staff for Sen. Don White, R-Indiana, the Banking and Insurance Committee chairman.