In February 2002, controversy erupted over the Bush Administration's proposal, which Congress accepted, to not request renewal of the Superfund taxes in its FY2003 budget submission âa decision repeated in each subsequent budget proposal (FY2004-FY2009). The tax authority expired in 1995, but the fund's balance remained positive until FY2003. Although several Members of Congress have introduced bills to reinstate the taxes during these years, such efforts have lacked the necessary support. 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. This report reviews income sources for the fund, provides Superfund program funding estimates for FY2009, and discusses whether this funding will be adequate to meet projected program needs. The Comprehensive Environmental Response, Compensation, and Liability Act of 1980 (CERCLA), which was greatly expanded by the Superfund Amendments and Reauthorization Act of 1986 (SARA, P.L. 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. The Superfund account in EPA's budget funds the agency's efforts to remove contamination that presents an immediate risk and to remediate contamination for which there is a potential pathway of exposure. Although federal facilities are subject to CERCLA provisions, the costs of remediation at federal facilities are paid by the federal agency that caused the contamination, rather than out of the Superfund account. In a majority of cases, Superfund cleanups are paid for by potentially responsible parties (PRPs)âusually current or previous owners/operators of the site. According to EPA, PRPs conduct cleanup at more than 70% of the sites on the NPL. At approximately 30% of the NPL sites, either EPA cannot locate PRPs for these properties, or the PRPs located do not have the necessary financial resources to assist with cleanup. It is primarily at this group of NPL sites that EPA uses funds from the trust fund to conduct cleanup activities. The Superfund funding debateâthat is, whether the trust fund should be supported by a dedicated tax or general Treasury revenuesâapplies to this subset of NPL sites. 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 taxes on petroleum (9.7 cents per barrel) and on chemical feedstocks and imported chemical derivatives (varying amounts, depending on the chemical) were based on the assumption that many of the hazardous substances to be cleaned up were derived from these sources. The third tax (referred to as the Corporate Environmental Income Tax), pegged at 0.12% of corporate income in excess of $2 million, was meant to raise funds from a wide range of companies that may have used and disposed of hazardous substances. Proponents of the Superfund taxes argue that the taxes are justified based on the "polluter pays" principle. Both the Bush Administration and its critics say they support the "polluter pays" principle, but they mean different things when using that phrase. When Administration spokespersons support "polluter pays," they mean cleanup funded by responsible parties at sites where such parties have been identified as owners, operators, or contributors of the waste requiring cleanup. From this perspective, "polluters" would not include industrial sectors or corporations that may not have contributed directly to a specific site's contamination. 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. Lesser sources of income to the fund have included interest on the fund's balance (which is invested in government securities until expended); cost recoveries from PRPs; reimbursements to EPA from other federal agencies for emergency removal activities; and collection of fines and penalties. Funds from general Treasury revenues have also contributed to the Superfund program to some degree, including years when the tax was active. Table 1 shows the sources of revenue to the fund from 1991 to 1995 (the last five years before the taxes expired). The three dedicated taxes provided an average of $1.45 billion per year, 65.8% of total revenues during the period. The taxes generated nearly four times as much as the contribution from general revenues, which averaged $369 million per year, or 16.8% of total Superfund revenues during the period. The remainder of the fund's income came from interest on investments ($200 million per year) and cost recoveries ($180 million per year). The taxes that supported the trust fund expired at the end of 1995. The Republican leadership, notably the Chairman of the House Ways and Means Committee during the 104 th through 106 th Congresses, opposed reinstating the taxes except as part of a comprehensive CERCLA reauthorization that would remove or modify Superfund's liability provisions. No consensus was reached on reauthorization, and the taxes were not reinstated. When the taxes expired, the Office of Management and Budget (OMB) reported that the fund had an unobligated balance of nearly $4 billion and, even after expiration of the taxes, money continued to be added to it from interest payments, cost recoveries, and other sources. Thus, the lapse in taxing authority initially had little effect on the ability to fund the program. The Clinton Administration requested reinstatement of the taxes annually in its budget submission, but Congress took no action on these requests. Congress continued to fund the program through a combination of the existing unobligated trust fund balance and general revenues. To make the fund last longer, the contribution of general revenues to the annual appropriation was increased from $250 million annually in FY1993 to FY1998 to $634 to $700 million in FY2000 to FY2002. The Bush Administration requested $700 million from general revenues in FY2003 and $1.1 billion in FY2004. In FY2005, the entire appropriation ($1.25 billion) came from general revenues. Although the Superfund starting balance has improved in recent years, the vast majority of the annual appropriations continued to come from general revenues. In FY2006 and FY2007, the beginning year balance was $95 million and $178 million, respectively. OMB estimated that the FY2008 starting balance was $273 million; the FY2009 balance is projected to be $176 million. Regardless, general revenues remain as the primary source of program funding for both FY2008 and FY2009. In recent years, attention has focused on the dwindling amount of unobligated funds in the Superfund Trust Fund. As shown in Figure 1 , this balance began a steady decline starting in FY1998. By the end of FY2001, the fund's unobligated balance had declined to $860 million. The President's FY2003 and FY2004 budgets projected further declines, to $427 million at the end of FY2002 and to $159 million at the end of FY2003. These numbers were revised in the FY2005 budget submission (and in Figure 1 ) to reflect actual cost recoveries and other transactions in FY2002 and FY2003. The actual amounts show a balance of $564 million at the beginning of FY2003 and a zero balance at the beginning of both FY2004 and FY2005. Although FY2005 started with a zero balance, it ended with $97 million in the account, creating a starting balance of $97 million in FY2006. This trend has continued in recent years: FY2007 started with a balance of $178 million; OMB estimated that FY2008 and FY2009 will begin with $273 million and $176 million, respectively. However, these starting balances do not approach the balances that existed when the trust fund was supplied mainly by the Superfund taxes. Based on OMB estimates of starting balances in FY2008 and FY2009, general Treasury revenues will continue to supply the vast majority of the program needs. The Office of Management and Budget (OMB) produces annual estimates of the Superfund trust fund's starting and ending fiscal year balances and revenue from its funding sources. 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). As shown in the annual budget request, funds that contribute to the trust fund fall into five categories: (1) corporate income taxes, (2) interfund transactions, (3) cost recoveries, (4) interest and profits on investments, and (5) fines and penalties. As discussed above, the corporate income taxes category, originally a dedicated source of program revenue, expired at the end of 1995. Therefore, this category is listed at zero. The next category, interfund transactions, represents the estimated contribution from general Treasury revenues, which is a function of both the level of congressional appropriation and the trust fund's fiscal year starting balance. 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.