There are over 9,000 Leaking Underground Storage Tanks (LUSTs) at 7,000 sites in Michigan (AP, 2009). To achieve site closure requires concurrence from the Michigan Department of Environmental Quality (MDEQ) that all cleanup is complete and that there are no “unacceptable” risks to any of the 13 potential exposure pathways as outlined in the Risk-Based Corrective Action (RBCA) process. The most current data (MPA, 2006) indicates that the cost of LUST cleanups in Michigan average $400,000 each. BLDI Environmental peer reviews conducted for owners, lenders or legal counsel have found that a high percentage of cleanup programs exceed 10 years and are commonly inconsistent with the owner’s current business goals. Recent data from our discussions with other environmental consultants indicates that many consultants bias their cleanup/closure approach based on their overall belief of what RBCA should be (i.e. their regulatory interpretation), rather than temper their position according to the MDEQ’s application of RBCA. Often, the consultant’s regulatory interpretation does not complement the owner’s overall business goals, with the owner not being made aware of alternate approaches to site regulatory compliance or closure.
Our goal with this briefing series is to help owners and their advisors assess their environmental strategy to achieve their business goals coupled with site compliance or closure. The environmental strategy and the closure goals for the site need to be grounded in the realization that, at the end of all of the work performed, the closure must be approved by MDEQ.
The various interpretations of Part 213 (LUST regulations) and the associated RBCA (ASTM E1739) process are described below. This risk interpretation is important because corrective action strategies are developed based on owner and consultant regulatory understanding or interpretation.
Aggressive Risk (aka RBCA-Lite) limits regulatory interpretation to the Part 213 statute and the ASTM RBCA document, excluding MDEQ Operational Memorandums.
Managed Risk considers not only the Part 213 statute and ASTM RBCA, but also use of MDEQ Operational Memorandums.
Overprotection for Risk describes a process utilizing multiple safety factors for many of the exposure pathways.
BLDI recommends the owner develop a detailed understanding of their business goals, e.g., continued operation, sale, refinance, transition, estate planning, and how their environmental program will help meet those business goals. Such an analysis is critical in moving from one stage of a client’s life to another.
Stay tuned for our next briefing in this series on RBCA where we discuss each risk interpretation in more detail.
Back to Resource Archive