Update on the Status of Michigan’s UST Fund
Public Act 416 (Underground Storage Tank Corrective Action Funding) was signed into law by Governor Snyder on December 30, 2014 and became effective immediately. Section 21523 of this law establishes the Underground Storage Tank Authority (Authority) as the body that will manage the Underground Storage Tank Cleanup Fund (Fund). The Authority is to be governed by a board of directors appointed by Governor Snyder, consisting of the director of the Department of Environmental Quality (DEQ) and six other members. To date, no Authority has been formally appointed. Although the Fund is currently effective — meaning that a release from an UST that is discovered and reported after December 30, 2014 should be eligible — there appears to be no organized corporate body to administer the Fund and no organized procedures/regulations for accessing the Fund.
We understand that the Region 5 office of the Environmental Protection Agency (EPA) in Chicago — which covers Michigan and other Great Lakes states — is currently evaluating PA 416 to determine if it meets the federal standards regarding financial assurance mechanisms for UST owners/operators. In the meantime, UST owners/operators should maintain their current financial responsibility mechanisms (i.e., insurance policies, self insurance, etc.) until further notice.
We will keep you informed of additional information as it becomes available.
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