Governor’s proposal to tap pollution fund

? Gov. Kathleen Sebelius plans to take money out of a fund earmarked to clean up pollution at service stations, a move that would lead to higher prices at the pump and concern over how the cleanup projects will be affected.

Sebelius plans to transfer $10 million from the underground storage tank trust fund to the state’s main bank account. But a penny-a-gallon tax on gasoline kicks in whenever the trust fund is low on money.

Since 2000, motorists have paid the tax for an average of three months a year. To replace the $10 million and cover expenses, the tax would have to stay on for an extra 20 months.

About 1,600 projects are in the works at gasoline stations around the state where gasoline has leaked, or is suspected of leaking, out of huge storage tanks buried underground.

Those projects are estimated to cost about $14 million, and the state has set aside that amount in its trust fund. Sebelius wants to take $10 million of that.

Because some sites will take several years to clean up, some of the money won’t be needed for a while. With careful management, the state can complete the projects without running out of money, said Sharon Watson, spokeswoman for the Kansas Department of Health and Environment.

But Tom Palace, executive director of the Petroleum Marketers and Convenience Store Association of Kansas, disagrees. He said when the fund runs out of money in a few months, the state will either delay cleaning up polluted sites or delay payment for work already done.

“If you take $10 million away, it has to show up somewhere,” Palace said. “You have to stop doing jobs at some point.”

Some contractors worry that they may not get paid for work they have already done and that the state will postpone future work.

Juan Sexton, owner of Tank Management Services, one of 70 companies in the state that tests for pollution at service stations, said he might lay off employees.

He worries the Legislature may raid the trust fund on a regular basis.

“Once they take the lid off of the cookie jar, how long will the cookies remain in there?” Sexton said.