An Act To Assist in the Cleanup of Waste Motor Oil Disposal Sites
Maine Legislature, Session 123, LD 1417
Committee: Natural Resources
Sponsors: MARTIN, TARDY, BARTLETT, ROSEN, KOFFMAN
Amends: 5 MRSA §12004-F, 10 MRSA §963-A, 10 MRSA §1053

Legislative Document 
No. 1417 
S.P.495 
March 15, 2007 
An Act To Assist in the Cleanup of Waste Motor Oil Disposal Sites 
Reference to the Committee on Natural Resources suggested and ordered printed. 
Presented by Senator MARTIN of Aroostook. 
JOY J. O'BRIEN 
Secretary of the Senate 
Cosponsored by Representative TARDY of Newport and Senators: BARTLETT of 
Cumberland, ROSEN of Hancock, Representative: KOFFMAN of Bar Harbor. 
Printed on recycled paper 
Be it enacted by the People of the State of Maine as follows: 
Sec. 1. 5 MRSA §12004-F, sub-§19 is enacted to read: 
19. 
Waste Motor Oil Revenue 
Board 
Expenses Only 
Sec.2. 10 MRSA §963-A, sub-§17-A is enacted to read: 
17-A. Final remedy selection. "Final remedy selection" means: 
MRSA § I020-B 
A. In the case of the Department of Environmental Protection, a final determination 
by the Commissioner of Environmental Protection or the commissioner's designee of 
the appropriate response action at a waste motor oil disposal site that is an 
uncontrolled hazardous substances site; and 
B. In the case of the United States Environmental Protection Agency, the remedy 
selected in a final record of decision for the so-called Howes Comer Federal 
Superfund Site. 
Sec. 3. 10 MRSA §963-A, sub-§47-B is enacted to read: 
47-B. Response costs. "Response costs" means those costs incurred or those costs 
that will be incurred by the Department of Environmental Protection, the United States 
Environmental Protection Agency or a responsible party for investigation, removal, 
remediation and operation monitoring at a waste motor oil disposal site. 
"Response 
costs" does not include salaries, benefits, administrative costs or other expenses that 
relate in any way to employees of the Department of Environmental Protection or the 
United States Environmental Protection Agency, or that relate to expenses otherwise 
incurred by the Department of Environmental Protection or the United States 
Environmental Protection Agency in the operation of the department or agency. 
Sec. 4. 10 MRSA §963-A, sub-§51-D is enacted to read: 
51-D. Waste motor oil. "Waste motor oil" means any lubricating oil classified for 
use in an internal combustion engine, transmission, gear box, differential or hydraulics 
for a motor vehicle, boat, off-highway recreational vehicle, commercial or household 
power equipment or earth-moving equipment; "waste motor oil" means motor oil that 
through use, storage or handling has become unsuitable for its original purpose due to the 
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presence of impurities or the loss of original properties. 
Sec. 5. 10 MRSA §963-A, sub-§51-E is enacted to read: 
51-E. Waste motor oil disposal site. "Waste motor oil disposal site" means the 
following 3 sites, where waste motor oil was stored and that are now contaminated and 
subject to such response action requirements as the Department of Environmental 
Protection or the United States Environmental Protection Agency may impose according 
to applicable law: 
A. Portland-Bangor Waste Oil Services SitelHowes Corner Federal Superfund Site -
Plymouth, Maine; 
B. 
Portland-Bangor Waste Oil Services SitelMaine Uncontrolled Hazardous 
Substances Site - Ellsworth, Maine; and 
C. 
Portland-Bangor Waste Oil Services SitelMaine Uncontrolled Hazardous 
Substances Site - Casco, Maine. 
Sec.6. 10 MRSA c. 110, sub-c. I-F is enacted to read: 
) 0 
SUBCHAPTER I-F 
WASTE MOTOR OIL DISPOSAL SITE REMEDIATION PROGRAM 
§1020. Waste Motor Oil Revenue Fund 
1. Definitions. As used in this subchapter, unless the context otherwise indicates, 
the following terms have the following meanings. 
A. "Board" means the Waste Motor Oil Revenue Board. 
B. "Fund" means the Waste Motor Oil Revenue Fund. 
2. Creation; sources of fund. The Waste Motor Oil Revenue Fund is created. The 
fund consists of the following sources: 
A. All money appropriated for inclusion in the fund; 
B. Subject to any pledge, contract or other obligation, all interest, dividends or other 
pecuniary gains from investment of money of the fund; 
C. Any other money available to the authority and directed by the authority to be 
paid into the fund; and 
D. All revenue received from the Treasurer of State pursuant to subsection 6. 
3. Application of fund. Money in the fund must be applied to the payment of 
principal of, interest on or redemption premiums on revenue obligation securities issued 
pursuant to section 1020-A and may, in whole or in part, be pledged or transferred and 
deposited as security for those securities. Money in the fund not needed currently to meet 
the obligations of the authority as provided for in this subsection may be invested in such 
a manner as permitted by law. 
Money may also be applied to pay the reasonable 
I 
operating costs of the board, including expenses of members of the board pursuant to 
section 1020-B, subsection 2. 
4. Accouuts within fund. The authority may divide the fund into separate accounts 
as it determines necessary or convenient for carrying out the purposes of this subchapter. 
5. Revolvine fund. The fund is a nonlapsing, revolving fund. All money in the fund 
must be continuously applied by the authority to carry out the purposes of this 
subchapter. 
6. Premium. In addition to any other tax or charge imposed under state or federal 
law, a premium is imposed on all motor oil sold in the State at wholesale. The premium 
is in the amount of 20¢ per quart. 
The premium must be paid monthly by the 
manufacturer or wholesaler to the State Tax Assessor. The State Tax Assessor shall pay 
monthly all amounts received pursuant to this subsection to the Treasurer of State, who 
shall deposit the funds in the fund. Costs of administration are paid by the fund. 
7. Effective date. This section takes effect on October 1, 2007 and remains in effect 
II 
until the later of June 30, 2015 and any date thereafter, but no later than December 31, 
2020, on which the authority notifies the Treasurer of State that there are outstanding no 
revenue obligation securities that were issued pursuant to section 1020-A. 
§1020-A. Waste motor oil disposal site remediation program 
1. 
Issue of securities. 
The authority shall Issue revenue obligation securities 
pursuant to subchapter 3 in an amount sufficient to: 
A. Pay the clean-up costs specified in any certificate of determination issued by the 
board pursuant to section 1020-B; 
B. Establish any capital reserve fund pursuant to section 1053; and 
C. Pay the costs of issuance of revenue obligation securities. 
2. Payment of proceeds. The authority shall pay proceeds of the revenue obligation 
securities to or on behalf of the Department of Environmental Protection and the United 
States Environmental Protection Agency in the amounts specified in the certificate of 
determination pursuant to section 1020-B. 
3. Revenue refunding securities. The board, or after its dissolution the authority as 
the board's successor, may provide for issuance of revenue refunding securities pursuant 
to subchapter 3. 
§1020-B. Waste Motor Oil Revenue Board 
1. Membership. The Waste Motor Oil Revenue Board, as established in Title 5, 
section 12004-F, subsection 19, consists of 16 voting members. Five of the members are 
the chief executive officer of the authority, who serves as the chair of the board, the 
Commissioner of Economic and Community Development, the Commissioner of 
Environmental Protection, the Commissioner of Transportation and the Treasurer of State 
or their respective designees who must be in major policy-influencing positions. The 
Governor shall appoint 11 additional members as follows: 
A. Four individuals, each of whom is a principal of a licensed franchised new motor 
vehicle dealer pursuant to Title 29-A, chapter 9, subchapter 3 that has been 
designated by the Department of Environmental Protection or, in the case of the 
Howes Comer Federal Superfund Site in Plymouth, the ~Jnited States Environmental 
Protection Agency, as a responsible partv; 
B. One individual who is a principal of a used car dealership licensed pursuant to 
Title 29-A, chapter 9, subchapter 3 that has been designated by the Department of 
Environmental Protection or, in the case of the Howes Comer Federal Superfund Site 
in Plymouth, the United States Environmental Protection Agency, as a responsible 
~ 
C. Two individuals, each of whom owns or operates a business in this State that has 
as an integral element of its business operations the repair and maintenance of motor 
vehicles that are owned by 3rd parties in this State. Either the appointee or the 
I 1 
business must have been designated by the Department of Environmental Protection 
or, in the case of the Howes Comer Federal Superfund Site in Plymouth, the United 
States Environmental Protection Agency, as a responsible party; 
D. An individual who owns or operates a fleet of 25 or more motor vehicles in the 
State. 
The individual must have been designated by the Department of 
Environmental Protection or, in the case of the Howes Comer Federal Superfund Site 
in Plymouth, the United States Environmental Protection Agency, as a responsible 
~ 
E. One individual who is employed by a person engaged in the wholesale sale of 
motor oil in this State; 
F. 
An officer or employee of a municipality that has been designated by the 
Department of Environmental Protection or, in the case of the Howes Comer Federal 
Superfund Site in Plymouth, the United States Environmental Protection Agency, as a 
responsible party; and 
G. An individual employed by a manufacturer or refiner of motor oil or an individual 
employed by a trade association of such manufacturers or refiners. 
2. Compensation. Members of the board are not entitled to compensation but must 
be paid for expenses pursuant to Title 5, section 12002-A. 
3. Replacement or removal. Members of the board shall serve a term of office 
ending the later of June 30, 2012 and any date thereafter, but no later than December 31, 
2032, on which the board notifies the Governor that a final remedy selection has been 
completed for each waste oil site, on which date the board is dissolved and terminated. 
Any vacancy on the board must be filled by the Governor by appointment of an 
individual with the same qualifications. Any member of the board may be removed from 
office for cause by the Governor. 
4. Certificate of determination. From time to time, the board shall ascertain from 
the Department of Environmental Protection or the United States Environmental 
Protection Agency the final remedy selection, total response costs and response costs for 
each waste motor oil disposal site. 
A. When the board finds that a substantially final determination of those costs for a 
waste motor oil disposal site has been made, the board shall determine those costs for 
that waste motor oil disposal site that represent the collective share of those persons 
eligible under subsection 7 to have their share of those costs for the waste motor oil 
disposal site paid from the proceeds of revenue obligation securities. 
B. The board shall then issue to the authority the board's certificate of determination 
setting forth the amount of: 
(1) The eligible response costs paid or to be paid with respect to that waste motor 
oil disposal site; 
(2) The total eligible response costs with respect to that waste motor oil disposal 
site to be paid from the proceeds of revenue obligation securities; 
(3) The proceeds of the revenue obligation securities to be paid to or on behalf of 
the Department of Environmental Protection; and 
(4) The proceeds of the revenue obligation securities to paid to or on behalf of 
the United States Environmental Protection Agency. 
C. The board may issue to the authority no more than one supplemental certificate of 
determination with respect to a waste motor oil disposal site that may provide for the 
payment from the proceeds of additional revenue obligation securities of an amount 
equal to no more than 10% of the amount of costs initially certified to the authority 
for that waste motor oil disposal site. The board is not authorized to issue more than 
certificates of determination to the authority for a waste motor oil disposal site. 
5. Eligibility. For purposes of this section, "person" means any natural person, 
corporation, partnership or other entity identified as a responsible party at a waste motor 
oil disposal site. The following persons that contributed waste motor oil to a waste motor 
oil disposal site and who have been designated by the Department of Environmental 
Protection or the United States Environmental Protection Agency as responsible parties 
with respect to any of the waste motor oil disposal sites are eligible to have their share of 
response costs and total response costs paid from the proceeds of revenue obligation 
securities issued pursuant to this subchapter: 
A. Those persons who the board determines are no longer in business and cannot pay 
their share; 
B. The State, any of its political subdivisions and any agency, authority, department, 
board, commission or instrumentality of the State or a political subdivision of the 
State; 
C. All franchised new car and truck dealers licensed pursuant to Title 29-A, chapter 
9, subchapter 3, or the successors in interest of any such franchised new car or truck 
dealers; 
D. All used car dealers licensed in accordance with Title 29-A, chapter 9, subchapter 
3, or the successors in interest of any such used car dealers; 
E. Any person or the successor in interest to any person that, as an integral element 
of its business, performed repairs at repair facilities located in this State on motor 
vehicles, as defined in Title 29-A, section 101, subsection 42, that are owned by 3rd 
parties; and 
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F. Any person or its successor in interest that performed repairs on its own fleet of 
motor vehicles. 
The fleet at all pertinent times must have included at least 25 
vehicles registered, garaged and serviced in this State. The share of any such person 
is a ratio, the numerator of which is all vehicles garaged, serviced and registered in 
this State at the time of the certification by the board determined in subsection 4, and 
the denominator of which is all vehicles in the person's total fleet, wherever garaged, 
serviced or registered. 
Response costs and total response costs must include, in the site identified in section 963-
A, subsection 51-E, paragraph A, any payments that either have been made, or that will 
be made, as a total or partial settlement of a person's share of response costs and total 
response costs to any entity that assumes the person's liability at that site. 
6. Parties ineli2ible. The following responsible parties are not eligible to have any 
share of any of their obligation for response costs or total response costs covered by 
revenue obligation securities issued pursuant to section 1020-A: 
A. The United States of America or any of its agencies, authorities, departments, 
boards, commissions or instrumentalities. 
7. Determinations re2arding eli2ibilitv. In accordance with the standards set forth 
in subsection 5 and with the procedures set forth in Title 5, chapter 375, subchapter 2-A 
for rulemaking, the board shall establish a registry of all persons who qualify to have their 
share of response costs and total response costs paid pursuant to this subchapter. 
A. In order to establish the registry, the board shall review the list of responsible 
parties prepared by the Department of Environmental Protection or the United States 
Environmental Protection Agency with respect to the waste motor oil disposal sites 
and must have access to all Department of Environmental Protection and United 
States Environmental Protection Agency records that relate in any way to the volume 
or composition of materials that may have been deposited in any waste motor oil 
disposal site. Copies of the registry must be made available to the public at the office 
of the Commissioner of Economic and Community Development, the office of the 
Commissioner of Environmental Protection and the office of the chief executive 
officer of the authority. 
B. 
The board shall cause the list for each waste motor oil disposal site to be 
published simultaneously, 2 times, 7 days apart, in the weekend edition of the 
following newspapers or any of their successors: 
the Bangor Daily News, the 
Portland Press Herald, the Kennebec Journal, the Waterville Morning Sentinel, the 
Brunswick Times Record, the Aroostook RepUblican, the Lewiston Sun Journal and 
the Biddeford Time Journal. 
C. Any responsible party may request reconsideration from the board of any board 
decision relating to eligibility for that responsible party. 
All requests for 
reconsideration must be mailed, postage prepaid, to the address designated by the 
board. All requests for reconsideration may be in writing only and include such 
information as the responsible party desires to draw to the board's attention and must 
be received by the board no later than 30 days from the 2nd date of publication of 
notice in the newspapers identified in this subsection. The chair of the board shall 
appoint a subcommittee of 5 members to render a decision in writing within 60 days 
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of the date the board receives a request for reconsideration. The chair may appoint 
multiple subcommittees at the discretion of the chair. Each subcommittee of the 
board may grant a request for reconsideration, in whole or in part, or may deny a 
request for reconsideration. 
D. Any responsible party may appeal a decision on reconsideration to the Superior 
Court, Kennebec County, pursuant to Title 5, section 8058, within 30 days of the date 
of the board's decision on reconsideration. 
An appeal under this paragraph is 
nontestimonial. The record consists solely of written materials reviewed by the board 
and its decision on reconsideration. The Superior Court shall issue its decision within 
days of the date of filing of the appeal. 
8. Staff. The board shall retain independent counsel to be paid out of the fund. The 
authority shall provide the board with staff and clerical assistance, including such 
computer services as the board may require, to be paid out of the fund. 
The chief 
executive officer of the authority shall cause a record of the proceedings of the board to 
be maintained. Records and proceedings of the board are subject to Title I, chapter 13, 
subchapter 1. 
9. Rules. The board shall adopt rules necessary to implement this subchapter. Rules 
adopted by the board under this subchapter are routine technical rules pursuant to Title 5, 
chapter 375, subchapter 2-A. 
Sec. 7. 10 MRSA §1053, sub-§6, as amended by PL 2003, c. 506, §5, is further 
amended to read: 
6. Securities outstanding. The principal amount of revenue obligation securities the 
authority may have outstanding at anyone time, to which subsection 5 is stated to apply 
in the trust agreement or other document, may not exceed an aggregate principal amount 
equal to $877,000,000 $910,000,000 as follows: 
A. 
The sum of $330,000,000 consisting of not more than $275,000,000 for loans 
and up to $55,000,000 for use of bond proceeds to fund capital reserve funds for 
revenue obligation securities issued pursuant to this subchapter relating to loans for 
electric rate stabilization projects; 
B. 
The sum of $120,000,000 consisting of not more than $100,000,000 for loans 
and up to $20,000,000 for use of bond proceeds to fund capital reserve funds for 
revenue obligation securities issued pursuant to this subchapter relating to loans for 
major business expansion projects; 
C. 
The sum of $57,000,000 consisting of not more than $45,000,000 for loans and 
up to $12,000,000 for use of bond proceeds to fund capital reserve funds for revenue 
obligation securities issued pursuant to this subchapter relating to workers' 
compensation residual market mechanism projects; 
D. 
The sum of $150,000,000 less the aggregate outstanding balance of mortgage 
loans secured by capital reserve funds pursuant to section 1032 for all other revenue 
obligation securities issued pursuant to this subchapter; 
E. 
The sum of $120,000,000 consisting of not more than $100,000,000 for loans 
and up to $20,000,000 for use of bond proceeds to fl~nd capital reserve funds for 
revenue obligation securities issued pursuant to this subchapter relating to loans for 
paper industry job retention projects; aRd 
F. 
The sum of $100,000,000 consisting of not more than $85,000,000 for loans and 
up to $15,000,000 for use of bond proceeds to fund capital reserve funds for revenue 
obligation securities issued pursuant to this subchapter relating to loans for 
transmission facilities projects as defined in section 963-A, subsection 49-H~; and 
G. 
The sum of $30,000,000 for revenue obligation securities issued pursuant to 
section 1020-A. 
The amount of revenue obligation securities issued to refund securities previously issued 
may not be taken into account in determining the principal amount of securities 
outstanding, as long as proceeds of the refunding securities are applied as promptly as 
possible to the refunding of the previously issued securities. 
In computing the total 
amount of revenue obligation securities of the authority that may at any time be 
outstanding for any purpose, the amounts of the outstanding revenue obligation securities 
that have been issued as capital appreciation bonds or as similar instruments are valued as 
of any date of calculation at their then current accreted value rather than their face value. 
SUMMARY 
From 1953 until 1981, 4 sites were developed in the State for the storage and 
handling of waste motor oil. These sites are in Wells, Plymouth, Ellsworth and Casco. 
The Department of Environmental Protection has determined that 3 of the 4 sites, in 
Wells, Ellsworth and Casco, may pose environmental hazards and must be investigated 
and remediated. The United States Environmental Protection Agency has determined that 
the site in Plymouth must also be further investigated and remediated and has designated 
Plymouth as a federal superfund site. The costs of remediation are significant. The total 
response costs at the Wells site will be approximately $15,000,000. The United States 
Environmental Protection Agency and the Department of Environmental Protection have 
already expended in excess of $7,000,000 in relation to the site in Plymouth and 
significant further investigation and remediation needs to occur. Costs of cleanup In 
Ellsworth and Casco have not been clarified, but are expected to be significant. 
State and federal law require that entities identified as responsible parties pay the cost 
of cleaning up such sites. In each of the 4 sites identified above, the waste motor oil 
came primarily from motor vehicles and other engines using motor oil as a lubricant. At 
the time of storage of waste motor oil on the 4 sites, the materials generally were stored in 
accordance with then-applicable state and federal regulations. There were other forms of 
oil, and other materials entirely, that were deposited at the sites. Those substances are not 
addressed in this bill. 
The vast majority of businesses identified as responsible parties that are still in 
existence today cannot afford to pay the cost of cleanup of waste motor oil deposited 
since 1953. In addition, numerous entities that disposed of waste oil at these sites are no 
longer in existence and existing businesses would be asked to bear those orphan share 
costs as well. This bill creates a stream of revenue to retire the costs of investigation and 
remediation at the 4 sites. 
It also retires the cost of any early pay-ins by various 
businesses at the Wells site. The Finance Authority of Maine is authorized to issue 
revenue obligation securities in amounts sufficient to cover a large percentage of the 
clean-up costs. These revenue obligation securities are to be retired with funds derived 
from a premium on motor oil. The premium is imposed at the wholesale level. 
The State and instrumentalities of the State, including the Department of 
Transportation, the Department of Public Safety and counties and municipalities, are 
eligible to participate in the waste motor oil disposal site remediation program. The 
revenue obligation securities will also cover the shares of those businesses that 
maintained or repaired motor vehicles between 1953 and 1981 or their successors in 
interest, and that had waste motor oil deposited at one or more of the 4 sites. Any 
business that operated a fleet of 25 or more vehicles for which it performed its own 
maintenance and repairs and that contributed waste motor oil to one or more of the 4 sites 
is eligible for participation in the program. 
The United States Government and its 
instrumentalities are not eligible to participate in the program. 
The Waste Motor Oil Revenue Board is created to oversee the process and make 
determinations as to eligibility for participation in the program.