Iowa EPC Fee No Longer Charged on Petroleum Deposits in Qualifying Tanks
January 3, 2017 by Admin |
Iowa Code gives the Iowa Department of Revenue the responsibility of collecting an Environmental Protection Charge (EPC) based on petroleum diminution from certain storage tanks. This charge is imposed on behalf of the Iowa Comprehensive Petroleum Underground Storage Tank Board.
The EPC is imposed on all petroleum products deposited into non-exempt storage tanks in Iowa. The charge is established at a rate estimated to generate $17 million in revenue each year to fund the Iowa Comprehensive Petroleum Underground Storage Tank Fund, which is used to finance petroleum leakage cleanup, to provide loans to qualifying operators for upgrade or replacement of their tank systems and to offer insurance to tank operators to meet federal financial responsibility requirements. Over the course of its existence, the EPC charge has equated to $.01 per gallon on deposits made into qualifying tanks.
Effective January 1, 2017, petroleum marketers may cease charging and collecting the Iowa EPC charge on petroleum deposits made into previously qualifying storage tanks.