The Michigan Underground Storage Tank Authority (MUSTA) is now open as a means for underground storage tank owners to meet their financial responsibility requirements. Owners and operators can now chose to utilize the State’s underground storage tank (UST) clean-up fund as their means of demonstrating financial responsibility and eliminate their current private-sector UST insurance program. In general, UST owners and operators can realize a annual cost savings by utilizing this program. The State of Michigan’s fund requires a $50,000 deductible financial responsibility mechanism in the event a claim submitted as a result of a release from a properly operated UST system. However, owners or operators, or their affiliates, of fewer than eight refined petroleum UST’s have an option to “buy down” the deductible to $15,000 per claim by paying an annual fee of $500 per tank. Robert Reisner from the Michigan Department of Environmental Quality (MDEQ), the Authority’s Administrator of the fund, shares that he is seeing quite a number of “buy downs” as well as “Requests for Determination of Eligibility” to MUSTA. Understand that claims will not be accepted until January 1st, 2016; however, now is the time to prepare and submit your documentation so that you can be ready to utilize this means of insuring your UST’s and as a means of limiting financial burden in the event of a release. Here are a few links to get you started if you are interested in utilizing this new program:
- Consider if you are eligible for the “buy down” application.
- Submit a Documentation of Financial Responsibility Submittal Form
- Once you have documented your financial responsibility mechanism (above, can be combined with this step), is to submit a Request for Determination of Eligibility
Once these simple steps have been completed, MUSTA will review your submittal and either send a letter of approval outlining the conditions required for maintaining eligibility to the program or they may request more information if the documents are not fully completed as required. Once approval is made, The Department of Licensing and Regulatory Affairs, Bureau of Fire Services, Storage Tank Division (LARA) will be copied on the approval letter and will keep it as your proof of financial responsibility. You, the owner or operator, should maintain a copy of the letter as well. For more information, the MDEQ’s MUSTA web site is located here. If you have further questions or if we can be of service in any way, please call on us – we stand ready to serve your needs. I can be reached directly at 989-754-9896 or email me at firstname.lastname@example.org. At AKT Peerless, we work smartly and efficiently to create “A Better Environment for Your Business.”
About the Author
Jon Hirschenberger is a Group Leader at AKT Peerless and has more than 13 years of environmental consulting experience. As a Certified Professional Geologist (CPG), he primarily provides regulatory compliance solutions to UST owners and operators. His other roles at AKT Peerless include management of due diligence, remediation and industrial compliance projects.
About AKT Peerless
We are environmental consultants, building scientists and redevelopment experts who are proud to help build sustainable communities. We provide environmental, energy and sustainability, economic development, and construction loan services that are tailored to the needs of each of our clients, private and public sectors alike. With over 30 years of experience servicing the UST market, we have the depth and expertise of thousands of regulated releases and closures to creatively and efficiently assist your UST project goals. Call us at 800-985-7633 to arrange a free consultation or visit us at www.aktpeerless.com or at www.facebook.com/aktpeerlessenvironmental.