News

Update on the Progress of the Michigan Underground Storage Tank Authority (MUSTA)

We have written several blogs on the passage of Public Act 416 of 2014, which called for the establishment of the MUSTA Board and the UST Cleanup Fund (effective on December 30, 2014) as a means to assist UST owners/operators in demonstrating financial responsibility and cleaning up releases from leaking USTs. Following Governor Snyder’s appointment of six individuals to the MUSTA Board in early June, the Board has been convening to develop bylaws, appoint an administrator, and establish policies and procedures for implementation of the UST Cleanup Fund.

The MUSTA Board’s most recent meeting was on August 25, 2015 at the Michigan Petroleum Association (MPA) office in Lansing, Michigan. At this meeting, the following information was provided:

• Robert Reisner (currently at the MDEQ-RRD) was officially named as the Administrator;
• A summary of the proposed annual MUSTA administrative budget was provided, currently set at $1,068,375;
• A draft of the by-laws of the MUSTA was provided;
• A timeline for fulfillment of MUSTA duties was provided. Important timeframes listed are:
  • October 1, 2015 –
    • Create Request for Determination form
    • Prepare a schedule of eligible costs (and list of ineligible costs)
    • Establish competitive bidding process
    • Send application for EPA approval of the fund
  • November 1, 2015 –
    • Establish a claims process, including claim and invoice forms
    • Establish an appeals process
  • November 15, 2015 –
    • Hire staff to implement the program
  • December 1, 2015 –
    • Have all materials necessary to accept claims, invoices, requests for indemnification, and deductible buy-downs completed and available to UST owners/operators
  • January 1, 2016 –
    • Begin accepting claims, invoices, requests for indemnification, and deductible buy-downs
  • The next meeting of the MUSTA Board is scheduled for September 21, 2015.

While it appears that progress is being made, much work remains in order for claims to be accepted and processed in a timely manner. It is not yet clear as to when a UST owner/operator can “drop” its private insurance and rely on the UST Cleanup Fund, and what options will be available for demonstrating financial responsibility for the deductible amount.

MUSTA recently created a web page where information regarding the Fund and its status of implementation can be accessed. To view this page, click here: http://michigan.gov/deq/0,4561,7-135-3311_4109_9977_73545—,00.html

Stay tuned for further updates.

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