Financial Responsibility Guidance

Steps to take to establish the Underground Storage Tank Cleanup Fund as a financial responsibility mechanism.

If an owner or operator chooses to use the Underground Storage Tank Cleanup Fund (Fund) as their means of demonstrating financial responsibility for a facility, the steps outlined below must be followed.

  1. Submit a Documentation of Financial Responsibility Submittal Form and proof of financial responsibility for the appropriate deductible amount to MUSTA. The owner or operator must utilize one of the following mechanisms to show proof of financial responsibility for the deductible amount: 
    • Federal financial test of self-insurance
    • State financial test
    • Certificate of Deposit (or other restricted access deposit account)
    • Guarantee
    • Insurance and risk retention group coverage
    • Surety bond
    • Letter of credit
    • Trust fund
    • Fully funded trust fund
    • Other methods for local units of government.

Templates for these mechanisms are available by contacting Sarah Sackrider at sackriders@michigan.gov or 517-284-5001.

The financial responsibility requirements are cited in Rule 61, Section 280.90, of the Michigan Underground Storage Tank Rules (MUSTR), 2008 AACS, R 29. 2161 et seq. For local units of government allowable mechanisms see MUSTR Sections 280.95 through 280.103 and Sections 280.104 through 280.107 

The information in step #1 may be provided at the same time as step #2 below.

  1. Submit a Request for Determination of Eligibility to MUSTA.
     
  2. Upon approval of a Request for Determination, MUSTA will send the owner or operator a letter describing the approval, the conditions for maintaining eligibility for a claim, and the amount of coverage provided by the Fund. The Department of Licensing and Regulatory Affairs, Bureau of Fire Services, Storage Tank Division (LARA) will be copied on this approval letter and will keep it as your proof of financial responsibility. The owner or operator should maintain their copy of the letter as well.

If for any reason the owner or operator becomes ineligible for funding, LARA will be notified as to the change in their status and the owner or operator will be required to secure another financial responsibility mechanism to maintain compliance with   MUSTR.

If you have questions regarding these steps or require additional information, please contact Sarah Sackrider at sackriders@michigan.gov or 517-284-5001.