The Superfund trust fund is used to clean up sites contaminated by releases of hazardous substances. Without dedicated taxes, and with a relatively small balance in the trust fund, Congress has been using general revenues for a larger percentage of cleanup funds. 99-499 ), created the Superfund program to clean up the nation's worst hazardous waste sites and directed the Environmental Protection Agency (EPA) to prepare a National Priorities List (NPL) to identify sites that present the greatest risk to human health and the environment. According to EPA, PRPs conduct cleanup at more than 70% of the sites on the NPL. Superfund Taxes

The trust fund has had several sources of revenue over the years, the most important being dedicated taxes on petroleum, chemical feedstocks, and corporate income. The Administration's critics use the "polluter pays" term in a broader sense, however, to mean that the tax money that is used to clean up the other 30% of the sites should come from industries that profited from the sale or use of the chemicals being cleaned up, but who may not be directly related to a particular release of a hazardous substance. Thus, they support resumption of the dedicated taxes on petroleum and chemical feedstocks as well as the Corporate Environmental Income Tax, arguing that this approach is more appropriate than funding the trust fund through general Treasury revenues. Expiration of the Taxing Authority

The taxes that supported the trust fund expired at the end of 1995. In FY2005, the entire appropriation ($1.25 billion) came from general revenues. By the end of FY2001, the fund's unobligated balance had declined to $860 million. OMB includes these estimates in the Appendix to the annual Budget of the United States Government (hereafter referred to as the President's budget request for a particular fiscal year). Similar to recent years, the Administration's FY2009 budget request proposed $1.26 billion for the Superfund appropriation to consist of "sums available in the Trust Fund on September 30, 2008" (i.e., the end of FY2008, therefore the FY2009 starting balance) and "up to [$1.26 billion] as a payment from general revenues," if the trust fund balance is not sufficient to fund the total appropriation. Regardless, the vast majority of the FY2009 appropriation would come from general Treasury revenues. The study looked at all major elements of the Superfund program, including the removal program (for emergency and short-term cleanups); the remedial program (long-term cleanup); site assessment activities; program staff, management, and support costs; program administration; and Superfund-related work of other programs and agencies. First, the fund's unobligated balance, which remained relatively high (see Figure 1 ) during the years of Superfund taxes (and the two fiscal years following the tax expiration), has decreased steadily since FY1997, reaching zero at the end of FY2003. In fact, between FY2004 and FY2007, the President's Superfund budget proposals exceeded the annual amount that was subsequently appropriated by Congress.
This report discusses the role of dedicated taxes and other sources of revenue in funding the Hazardous Substance Superfund Trust Fund. Congress makes annual appropriations to the Environmental Protection Agency (EPA) from this trust fund and from general Treasury revenues for the purpose of supporting the Superfund program. The Superfund program addresses both short-term (emergency) and long-term cleanup activity of hazardous substances at contaminated sites.
Three dedicated taxes (on petroleum, chemical feedstocks, and corporate income) historically provided the majority of the trust fund's income. The taxes expired at the end of 1995, however, and the amount of unobligated money in the fund gradually dwindled. By the end of FY2003, the fund's unobligated balance was zero, down from a high of $3.8 billion in 1996.
The Administration's decision to not request reinstatement of the taxes has been supported by Congress, although some Members introduced legislation to do so. The annual budgets have compensated for the lack of dedicated tax revenue by increasing the contribution from the general fund of the U.S. Treasury. In fiscal years 2004-2008, virtually the entire Superfund program appropriation came from general Treasury revenues.
Proponents of reinstating the dedicated taxes contend that the cleanup of hazardous waste sites and releases (e.g., spills and leaks) should rely on taxes paid by the chemical and petroleum industries and companies that used the hazardous substances being cleaned up, not taxpayers. Proponents refer to this as the "polluter pays" principle. They also contend that in the context of federal budget deficits, it may be difficult to maintain spending at needed levels without dedicated taxes. Opponents of reinstating the tax argue, for example, that the tax is overreaching and unfair, as it applies to all industry sectors and to both compliant and noncompliant companies. In general, this funding debate applies to 30% of the sites on the National Priorities List; the remaining 70% of the sites, according to EPA, are cleaned up by responsible parties.
Several reports, including one for the House and Senate Appropriations Committees and reports by the EPA Inspector General, have concluded that spending has fallen short of the program's needs. From FY2004 through FY2008, the President's Superfund budget requests declined each year. However, during most of those years, the President's Superfund budget proposals exceeded the amounts appropriated by Congress.