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Penny-per-gallon gas surcharge would end January 1 under House bill

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April 26th, 2016 by Ric Hanson

A long-standing surcharge on gasoline may end January 1st. The penny-per-gallon fee was established in 1989 to finance clean up of underground storage tanks that were leaking gasoline, diesel or oil. Representative Walt Rogers, a Republican from Cedar Falls, says the clean-up of all those pre-1990 tanks is done, but lawmakers are leaving 42 million dollars in a fund for any tanks that may start leaking again.

“Or they might find what they call an orphaned tank somewhere,” Rogers says, “like a Dairy Queen somewhere, there was a tank underneath that they didn’t know about, that was pre-1990, so those potentially have to be taken care of.” The fee was charged to petroleum wholesalers, but Rogers and other legislators hope consumers see a tiny dip at the gas pump.

“You hopefully will save a penny January 1,” he says. Three separate House committees unanimously approved the bill. It cleared the full, 100-member House last night on a 94 to zero vote. The bill now goes to the Senate for consideration.

(Radio Iowa)