Prospective owners and operators of properties with underground storage tank systems (USTs) should be aware of the financial implications and potential liability associated with documenting a new release from any UST system. Documenting a new release from any UST system involves state-mandated reporting obligations within specific timeframes and requires numerous follow up tasks for the Owner/Operator (O/O) as stipulated in Part 213 of Michigan’s NREPA.
In Michigan, a state UST clean-up fund that is regulated by the Michigan Underground Storage Tank Authority (MUSTA) has been established to assist with these financial implications. According to MUSTA:
“The Michigan Underground Storage Tank Authority (MUSTA) and the Underground Storage Tank Cleanup Fund (Fund) were created on December 30, 2014. The Fund was created to assist owners and operators (O/Os) of petroleum underground storage tank systems (USTs) in meeting their financial responsibility (FR) requirements, to fund corrective action to address releases from USTs, and to help O/Os in achieving compliance with Part 213, Leaking underground Storage Tanks, of Act 451.
Use of the Fund to satisfy FR requirements is optional and there are steps that an O/O must take if they intend to use the Fund to meet their FR requirements and replace their commercial tank insurance.
The Fund may also be used to reimburse for costs related to cleaning up a site. Upon the discovery and reporting of certain releases from USTs, an O/O may file a claim and submit work invoices to reimburse them for costs that they have incurred while cleaning up the site of the release.”
Below are the statistics as of March 10, 2022, on the status of the Fund including the Fund balance, number of claims and the number of O/Os using the MUSTA Fund for their Financial Responsibility (FR). Currently, only 57.51% of O/Os are using the Fund to satisfy their FR requirements – which is surprising and disappointing to MUSTA.
Underground Storage Tank Cleanup Fund Reserve Amount as of March 10, 2022
Overall Fund Balance |
$97,463,637 |
Reserve Amount for Open Claims |
$76,055,645 |
Unreserved Balance |
$21,407,992 |
Underground Storage Tank Cleanup Fund Claims as of March 11, 2022
Submittal |
Total on 1/10/22 |
Since 1/10/22 |
3/11/22 |
Claims Approved |
631 |
13 |
644 |
Claims Denied |
33 |
1 |
34 |
Financial Responsibility Statistics as of March 11, 2022
Total on 1/7/22 |
Since 1/7/22 |
3/11/22 |
|
Facilities Using Fund for Financial Responsibility |
3,608 |
-3 |
3,605 |
Current Number of Facilities |
6,268 |
0 |
6,268 |
% Using the Fund for Financial Responsibility |
57.56 |
0 |
57.51 |
MUSTA funding can be used for investigation, cleanup, or mitigation activities for properties with open releases from a UST system, as long as the property was determined to be “eligible” prior to documenting a release from that system. This would include soil and groundwater sampling, and the investigation and mitigation of vapor intrusion issues which is becoming a very common issue for UST sites in Michigan.
BLDI has been working closely with MUSTA since its inception and has a high level of confidence in the program. After many successful claims, we believe we have developed an outstanding reputation with both our clients and the MUSTA staff.
BLDI can assist the owners and/or operators with completing tasks to become eligible for use of the Fund. Please contact Marty Janowiak (mjanowiak@bldi.com) at our Grand Rapids Office (616) 459-3737 or Sean Green (seang@bldi.com) at our Livonia Office (248) 504-8835 with any questions or assistance.