Summary: HD 5983 (FY2026 Status Report) – Massachusetts Underground Storage Tank (UST) Program
Jurisdiction: Massachusetts | Session: 194th | Bill Type: Communication from the Department of Revenue (UST Program)
Title: A communication submitting a status report of the Massachusetts Underground Storage Tank Protection Petroleum Product Cleanup Fund Administrative Review Board (referencing item 1232-0200 of Section 2 of Chapter 9 of the Acts of 2025)
Date of Document: February 28, 2026
Purpose of the Bill
- To provide the Legislature with a FY2026 status report on the Massachusetts Underground Storage Tank (UST) Petroleum Product Cleanup Fund Administrative Review Board (the Board).
- The report details financial activity, program operations, compliance results, and administrative progress for the UST Program, as required by appropriation language (1232-0200) in the FY2026 budget.
Main Purpose and Intent
- Communicate the current financial position, claims activity, and administrative performance of the UST Program and its Administrative Review Board.
- Demonstrate ongoing compliance with statutory and regulatory requirements, and summarize progress since the last status update.
Key Provisions and Changes Reported (Substantive Content)
- Legal and Fund Structure:
- Background on M.G.L. Chapter 21J and the UST Fund, including historical shifts of funding (UST Fund, Commonwealth Transportation Fund, and annual General Fund appropriations).
- Reestablishment of the dedicated UST Fund as the funding mechanism for reimbursement claims and administrative costs beginning July 1, 2018; UST Delivery Fee revenue is deposited into the UST Fund until $30 million accumulates, after which new revenue flows to the Commonwealth Transportation Fund. Unobligated balances revert to the CTF at year-end.
- Delivery Fee adjustments tied to the Consumer Price Index; effective Jan 1, 2026, the fee increased from $335.04 to $343.93 per 10,000-gallon delivery (3.4390 cents per gallon).
- Program Purpose:
- The UST Program provides partial reimbursement to owners/operators for costs of releases, with the aim of preventing environmental harm and expediting cleanup.
- The Board adjudicates eligibility and payment of reimbursement claims and promulgates implementing regulations.
- Governance and Composition:
- Board composition includes: DOR Commissioner (Chair), State Fire Marshal, MassDEP Commissioner, three industry representatives, one banking representative, one insurance representative, and one environmental public interest representative.
- Context on a vacancy created when the Massachusetts Petroleum Council (MPC) seat dissolved; ongoing discussions about successor representation (American Petroleum Institute or successor) with bills filed (e.g., SB581) but no final action as of the report.
- Reimbursement and Claims:
- Eligibility requires compliance with regulations, appropriate claimant status, paid fees, and an eligible release with a valid RTN from MassDEP.
- Reimbursement process: apply for Eligibility, then Application for Reimbursement within 365 days of incurring costs; provide facility, claimant, and remediation details.
- Eligible and non-eligible costs: allowed include cleanup/remediation, equipment costs, sampling/analysis, and related expenses; non-eligible include UST retrofit/relining/replacement, pre-notification costs, and lost revenue due to shutdowns.
- Third-party damages: separate reimbursement cap of $1,000,000 for certain judgments; requires final judgment, and specific eligible damages (e.g., relocation costs, water supply replacement, etc.) with exclusions (pain and suffering, punitive damages, etc.).
- Reimbursement Fee Schedule and Adjustments:
- A fee schedule governs reasonable costs for remedial work; latest open public review completed April 2025 with no changes; the 2026 update expected by March 31, 2026.
- If work is outside the fee schedule, competitive bidding is required.
- Claims Activity and Finances (FY2026 and Historical Context):
- FY2025 revenue: >$92.5 million; as of Feb 1, 2026, FY2026 revenue >$51.2 million with projected >$90 million for the year.
- Since inception: 43,116 claims reviewed; >$553 million reimbursed for 2,844 releases at over 2,171 facilities; currently funding cleanups at over 293 facilities.
- FY2026 appropriation for reimbursements: $5,920,100; as of Feb 1, 2026, ~ $2.68 million approved/paid; projected $2.7 million more to be paid in FY2026; estimated year-end total ≈ $5.4 million; end-of-year liabilities ≈ $0.3 million across ~30 unprocessed claims.
- Municipal Grants: over 750 grants awarded totaling >$10 million historically; no new funding for the Cities and Towns UST Grant Program since FY2009.
- Compliance and Enforcement:
- MassDEP oversees compliance; 7,711 eligible USTs registered (2,617 facilities); 5,592 USTs covered by 21J rules.
- FY2026 to date: 41 notices of pending COC revocation for non-compliance; outcomes include 31 corrected, 3 revoked, 7 pending correction.
- Operational Enhancements:
- UST website (mass.gov/ust) and an electronic claims system (eUST) for online filing and tracking; 100% of claims filed electronically.
- Automated COC renewal process (FY2019) with 390 renewals in FY2026 to date; 284 (73%) renewed automatically.
- Transition to electronic filing for UST Delivery Fee (FY2017) via MassTaxConnect/GeniSys.
- Regulatory and Policy Changes (Historical Context):
- Commonwealth Transportation Finance Act (2014): Fee revenue routed to the CTF.
- Acts of 2018 (Chapter 154): Reestablished the dedicated UST Fund; annual delivery fees deposited into the UST Fund until $30 million threshold is reached.
- Inflation adjustment to Delivery Fee since 2015; 2026 increase reflected above.
Who Is Affected
- UST Owners/Operators: Eligible claimants for remediation reimbursements; must maintain compliance to qualify for COCs, RTNs, and eligibility for reimbursements.
- Facilities/Dispenser Operations: Those with USTs subject to 21J requirements; impacts eligibility timing, fees, and potential reimbursements.
- Municipalities: Eligible for historic grant program (though currently unfunded since 2009).
- MassDEP, MassDOT “CTF” and the Commonwealth’s budgeting processes: Funding flows between UST Fund, CTF, and General Fund per statutory changes.
- Stakeholders in the UST Board: Potentially impacted by governance seat changes if and when MPC/industry representation is updated.
Procedural and Timeline Aspects
- Reporting Requirement: FY2026 status report to Senate Ways and Means and House Ways and Means as mandated by appropriation 1232-0200.
- Fee Adjustments: Delivery Fee automatically adjusts with CPI; the 2026 adjustment took effect January 1, 2026.
- Claim Deadlines: Reimbursement applications must be filed within 365 days of incurrence of costs; third-party judgments must be filed within 180 days.
- Appeals and Conference Process: Claimants may seek reconsideration or civil action; a Three-Member Panel conference appeal process exists for unusual extenuating circumstances.
- Regulatory Review: Reimbursement fee schedule open forum with periodic updates; latest completed in April 2025; next update anticipated by March 31, 2026.
Bottom Line
- The FY2026 status report provides a comprehensive overview of the UST Program’s financial health, claims activity, compliance landscape, governance, and administrative enhancements. It highlights continued reliance on the dedicated UST Fund, CPI-adjusted delivery fees, robust claim history, and ongoing efforts to modernize claims processing and renewals, while noting legislative discussions about board representation and long-standing municipal grant funding.
