Superfund Cleanup Tax Opposed

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The U.S. Congress has recently proposed reinstatement of the ‘Superfund' tax under the Comprehensive Environmental Response, Compensation and Liability Act (CERCLA), which expired in 1995. The original Superfund tax was historically imposed upon industry in order to fund the cleanup of abandoned toxic waste sites in the country. Since its expiration the funding for cleanup has come from general revenues from corporate taxes. Senator Frank Lautenberg (D-NJ) has introduced a bill to reinstate the original tax, which placed a feedstock tax on 42 industrial chemicals and crude oil.  The chemical industry strongly opposes reinstating the tax, however, fearing that it will drive more of an already ailing domestic chemical industry offshore to countries like China who do not impose a tax of this type. The original tax was designed to create a trust fund for cleanup of orphaned sites. The fund grew larger than originally expected and did not run out money until 2003. It is uncertain at this time how fast, if at all, the bill will proceed. If enough support is garnered, however, the bill could pass as a rider to another bill.  A weak Superfund program may lead to undesirable consequences concerning cleanup of toxic and hazardous waste sites.