Update on the Michigan Underground Storage Tank Cleanup Fund

by | Jan 26, 2016 | Blog |

Back in September 2015, we reported on the on-going development of the state-funded financial assurance program for addressing the cleanup of leaking underground storage tanks (LUSTs) in Michigan.  At that time, the statute had been enacted, but the program was still under development.

MUSTA:  What You Need to Know

The good news is that the Michigan Underground Storage Tank Authority (MUSTA) financial assurance program is now operational.  While not a comprehensive analysis, here are some points of interest for owners/operators:

  • An owner/operator of a UST does not have to maintain financial assurance through the state-funded program to be eligible to make a financial claim.
  • There is more than one deductible option for an owner/operator of seven or fewer underground storage tanks.
  • If you have a LUST and want to make a claim, there is a list of commonly-allowed services for reimbursement with allowable maximum rates, bid procedure requirements, and specified accounting/documentation submittal requirements.

MUSTA:  How to Receive Financial Assistance

As we suggested in September, maintaining compliance is critical to remain eligible for any future claims.  The state is making it clear that in order to make a claim, you must be compliant with all of the Part 211 (of PA 451) requirements.  This includes operating, licensing, financial assurance, and release reporting.

Some of the requirements necessary in order to submit a complete claim include the following.

  • “The refined petroleum underground storage tank from which the release occurred was, at the time of discovery of the release, and is presently, in compliance with the registration and fee requirements of part 211 and the rules promulgated under that part.”
  • “The owner or operator reported the release within 24 hours after its discovery as required by part 211 and the rules promulgated under that part.”
  • “The owner or operator has maintained financial responsibility requirements for the deductible amount.”
  • “The owner or operator has paid the deductible amount.”
MUSTA helps owner and operators of USTs that may have leaked

The new MUSTA program may be helpful to owners and operators when Underground Storage Tanks (USTs) leak and require environmental remediation (Photo Credit: Dragun Corporation).

MUSTA Deductible Options

The default deductible for making a financial claim is $50,000.00 per claim.  However, a lower deductible (a “buy-down”) can be obtained for owners/operators of seven or fewer USTs.  The lower deductible of $15,000.00 can be obtained if the owner/operator pays an increased annual registration fee of $500 per UST.  This fee must be paid annually between November 1st and December 31st for coverage during the following calendar year.

There is an exception to this schedule; specifically, the buy-down for the 2016 calendar year can be submitted through January 31, 2016.

MUSTA Claim Forms

MUSTA has created various forms for documenting and understanding the allowable services and costs associated with financial assurance claims.  Included are forms that describe “Competitive Bidding Requirements,” “List of Ineligible Costs,” and an “Eligible Costs Schedule.”  The new statute has many more details, including provisions relating to required competitive bids for certain LUST cleanup services, documentation of the bid process, etc.

Assistance with Releases from USTs

Whether you are going to be using the new MUSTA program or are addressing a release apart from the state program, we can help.  Over the past 25 plus years, we have successfully closed a considerable number of UST-related projects across Michigan and in other jurisdictions as well.

If you have any questions about the MUSTA program or need assistance, please feel free to contact me (mresch@dragun.com) at 248-932-0228,
ext. 133.