WASHINGTON – On May 17, the American Petroleum Institute (API) issued a statement expressing “strong concern” about proposed legislation that would divert money from the Leaking Underground Storage Tank (LUST) trust fund and place it into an E-85 infrastructure grant program. NACS shares API’s opposition to diverting LUST funds for non-LUST fund purposes.

“This new proposal would constitute a raid on the LUST trust fund for a purpose that has no relationship to the purpose of the fund: protecting the environment from fuel spills," API stated. "Instead of taking money out of this important trust fund for this new subsidy, Congress should appropriate the necessary monies from the fund to clean-up and fix any remaining leaking underground storage tanks and to provide the states with the funding necessary to carry out the tank inspection requirements that Congress enact as part of the Energy Policy Act of 2005."

“NACS shares API’s concerns regarding the inappropriate diversion of resources from the LUST Trust Fund,” NACS Vice President of Government Relations John Eichberger told NACS Daily. “NACS is working with members of Congress to increase funding from the LUST Trust Fund to the States to help them implement the enforcement provisions of last year’s energy bill. Any diversion of resources from this Fund could negatively affect funding opportunities for the States.”

Eichberger further noted that NACS also is working with members of Congress regarding programs to help offset the cost of E-85 infrastructure, noting that retailers could face costs of up to $200,000 and more to install E-85 compatible equipment.

Sens. John Thune (R-SD) and Barack Obama (D-IL) sponsor the legislation brought under fire by API, the “Alternative Energy Refueling System Act of 2006."