Recent Amendment to Underground Storage Tank Corrective Action Fund

by Paul French
Jan 20, 2017

UST Tank BLog

The State of Michigan has recently enacted an amendment to Part 215 - Underground Storage Tank Corrective Action Fund. Part 215, established in 2014, provides funding to assist owners and operators (O/Os) of underground storage tanks (USTs) in meeting their financial responsibility obligations (insurance) required under the UST regulations. The fund also established a $1 million per claim limit to reimburse O/Os for corrective action undertaken to address a UST release. O/Os were previously required to pay the first $50,000 of a claim as a deductible before accessing the fund. Smaller O/O s with seven or fewer USTs could buy down the deductible to $15,000 per claim by paying an annual fee of $500 per tank.

The recent amendment (House Bill 5599) reduces the deductible for smaller O/Os to $2,000 and eliminates the requirement to pay an annual fee to buy down deductible amount. The new deductible amount for O/O s with eight or more USTs has been reduced to $10,000 per claim. The new deductibles are retroactive and may be applied to releases discovered on or after December 30, 2014. Thus, you may be eligible for a refund if you had met the previous deductible amounts.

Please recall that you do not have to utilize the fund as your means of financial responsibility or submit a Request for Determination of Eligibility in order to be eligible to submit a claim for reimbursement. You must, however, meet the following requirements:
- The release was discovered and reported on or after December 31, 2014.
- The leaking UST was in compliance with the registration and fee requirements of Part 211 at the time the release occurred.
- The release was reported within 24 hours after its discovery.
- The O/O is not the United States Government.
- The claim is not from a release from a UST closed prior to January 1, 1974.
- The O/O was in compliance with their financial responsibility requirements at the time of the discovery and reporting of the release.

The Michigan Underground Storage Tank Authority has developed a thorough guidance document to help you navigate the Underground Storage Tank Corrective Action Fund. You can access the document on the MUSTA's website.

Paul FrenchEnvirologic has over 27 years of experience with Michigan's UST and LUST Regulations. Please contact Paul French or one of our other environmental professionals at (269) 342-1100 to assist you with the underground storage tank regulations and/or other environmental issues.

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ust  underground storage tank  lust  leaking underground storage tank  corrective action  musta  michigan underground storage tank authority  compliance  house bill 5599  part 215

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