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The Underground Storage Tank Cleanup Fund allows eligible refined petroleum underground storage tank owners or operators (O/Os) to be reimbursed up to $1 million per claim (minus the appropriate deductible) of eligible costs for corrective action and or indemnification costs incurred for confirmed releases that were discovered and reported on or after December 30, 2014.
NOTE: An owner or operator does not have to have submitted or submit a Request for Determination of Eligibility to be eligible to submit a claim.
Claims must be submitted on an Underground Storage Tank Fund Claim Submittal Form. The facility and owner or operator information on the Claim Submittal Form must match that as shown on your current underground storage tank registration forms on file with the Department of Licensing and Regulatory Affairs.
Along with the claim application, proof as to how the owner or operator met their financial responsibility requirement for their deductible amount at the time of the discovery of the release is required.
The O/O must certify that they have not, and will not, submit a claim(s) to any insurer or other entity to cover expenses for which they have been reimbursed by the LRP and vice-versa.
Invoices should not be submitted with claim applications. If a claim is approved, the O/O will be provided with instructions for the invoice(s) submittal.
A claim may only be filed by an owner or operator of a refined petroleum underground storage tank system who owned or operated the system at the time of the reporting of the release.
For a claim to be approved, the requirements of Section 21510 of Act 451 must be met, including:
- The release from which the corrective actions or indemnification arose were discovered and reported on or after December 30, 2014.
- The UST was at the time of the release and is presently in compliance with the registration and fee requirements of Part 211.
- The O/O reported the release within 24 hours after its discovery.
- The O/O is not the United States Government.
- The claim is not for a release from a UST closed prior to January 1, 1974.
- The O/O was in compliance with their FR requirements at the time of the discovery and the reporting of the release(s) for which the claim was filed.
- The total amount of reimbursement does not exceed the claims limit or claim period aggregate limit applicable to the claim.
The deductible amount for O/Os of seven refined petroleum USTs or fewer is $2,000 per claim. The deductible amount for O/Os of eight or more refined petroleum USTs is $10,000 per claim.
The claims limit for a release is $1 million minus the appropriate deductible amount of either $2,000 or $10,000. Two or more claims arising out of the same, interrelated, associated, repeated or continuous release, or series of releases are subject to one claims limit. Any claim that takes place over two or more claim periods is subject to one claims limit.
The claim period aggregate limit is $1 million for all releases discovered during a claim period for O/Os and affiliates with up to 100 USTs. O/Os and affiliates of more than 100 USTs are subject to a claim period aggregate limit of $2 million for all releases discovered during a claim period. These aggregate limits are applied based on the claim year for which the release(s) are discovered regardless of the year(s) in which the claims are filed, corrective actions are performed, or invoices are submitted.
A claim period is a one-year period from October 1 of each year through September 30 of
the following year.
Work Invoice Submittal and Review
To receive reimbursement for corrective actions, an O/O who has an approved claim must submit work invoices along with an Underground Storage Tank Cleanup Fund Invoice Submittal Form. Work Invoices must total at least $5,000, except for the final invoice.
Upon receipt of work invoices, the MUSTA Administrator has 45 days in which to make the following determinations:
- Whether the O/O is eligible to receive funding under Part 215.
- Whether the work performed or proposed to be performed is consistent with Part 213, and whether these activities are consistent with achieving site closure.
- Whether the corrective actions performed are reasonable and necessary considering the conditions at the site of the release.
- Whether the cost of performing the work is at or below the allowable reimbursement in the Schedule of Costs, whether the cost was based on the competitive bidding requirements established by MUSTA, or if the cost is not a listed item or required bid item, that the cost is reasonable and necessary.
Payment of Work Invoices
Payment of eligible work invoices will be made jointly to the O/O and the consultant that performed the corrective actions within 45 days of the MUSTA Administrator’s determinations as described earlier.