An Act To
Maine Legislature, Session 125, LD 0671
Committee Amendment CA_A_H274 (House)
Amends: 38 MRSA §568-A, 38 MRSA §569-A, 38 MRSA §570-H

COMMITTEE AMENDMENT "Ii" to H.P. 501, L.D. 671, Bill, "An Act To 
Amend the Laws Governing the Ground Water Oil Clean-up Fund" 
Amend the bill by striking out everything after the enacting clause and before the 
summary and inserting the following: 
'Sec. 1. 38 MRS A §568-A, sub-§2, as amended by PL 2009, c. 501, §9, is further 
amended to read: 
2. 
Deductibles. Except as provided in subsection 2-A, applicants eligible for 
coverage by the fund under subsection 1 shall pay on a per occurrence basis the 
applicable standard deductible amount specified in paragraph A. 
In addition to the 
applicable standard deductible amount required under paragraph A, the applicant shall 
pay on a per occurrence basis one or more of the conditional deductible amounts 
specified in paragraphs Band C to the extent applicable. 
A. Standard deductibles are calculated under this paragraph based on the number of 
underground storage facilities or the capacity of gallons owned by the aboveground 
storage facility owner at the time the covered discharge is discovered. 
Standard 
deductibles are as follows. 
(1) 
For expenses related to a leaking underground oil storage facility, the 
deductible amount is determined in accordance with the following schedule: 
Number of underground storage 
facilities owned by the facility owner 
to 5 
to 10 
to 20 
to 30 
over 30 
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Deductible 
$2,500 
5,000 
10,000 
25,000 
40,000 
62,500 
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B. 
(2) 
For expenses related to a leaking aboveground oil storage facility, the 
deductible amount is determined in accordance with the following schedule: 
Total aboveground oil storage capacity 
in gallons owned by the facility owner 
Less than 1,320 
1,321 to 50,000 
50,001 to 250,000 
250,001 to 500,000 
500,001 to 1,000,000 
1,000,001 to 1,500,000 
greater than 1,500,000 
Deductible 
$500 
2,500 
5,000 
10,000 
25,000 
40,000 
62,500 
(3) For facilities with both aboveground and underground tanks when the source 
of the discharge can not be determined or when the discharge is from both types 
of tanks, the standard deductible is the applicable amount under subparagraph (1) 
or (2), whichever is greater. 
Conditional deductibles for underground facilities and tanks are as follows. 
(1) For nonconforming facilities and tanks, the deductible is $10,000 for failure 
to meet the compliance schedule in section 563-A, except that those facilities or 
tanks required to be removed by October 1, 1989 have until October 1, 1990 to 
be removed before they are considered out of compliance. 
(2) 
For failure to pay registration fees under section 563, subsection 4, the 
deductible is the total of all past due fees. 
(3) For motor fuel storage and marketing and retail facilities, the deductibles are: 
(a) Five thousand dollars for failure to comply with applicable design and 
installation requirements in effect at the time of the installation or retrofitting 
requirements for leak detection pursuant to section 564, subsections 1 and 
I-A; 
(b) Five thousand dollars for failure to comply with section 564, subsection 
I-B and any rules adopted pursuant to that subsection; 
(c) Five thousand dollars for failure to comply with section 564, subsection 
2-A, paragraphs B to F and I, and any rules adopted pursuant to that 
subsection; and 
(d) Ten thousand dollars for failure to comply with section 564, subsection 
2-A, paragraph H, and any rules adopted pursuant to that subsection. 
(4) For consumptive use heating oil facilities with an aggregate storage capacity 
of less than 2,000 gallons, the deductibles are: 
(a) Two thousand dollars for failure to comply with section 565, subsection 
I, if applicable; 
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(b) Two thousand dollars for failure to comply with section 565, subsection 
2, regarding monitoring; and 
(c) Two thousand dollars for failure to comply with section 565, subsection 
2, regarding any requirement to report evidence of a possible leak or 
discharge. 
(5) For consumptive use heating oil facilities with an aggregate storage capacity 
of 2,000 gallons or greater, the deductibles are: 
(a) Five thousand dollars for failure to comply with section 565, subsection 
1, if applicable; 
(b) Five thousand dollars for failure to comply with section 565, subsection 
2, regarding monitoring; and 
(c) Ten thousand dollars for failure to comply with section 565, subsection 2, 
regarding any requirement to report evidence of a possible leak or discharge. 
(6) For waste oil and heavy oil and airport hydrant facilities with discharges that 
are not contaminated with hazardous constituents, the deductibles for failure to 
comply with rules adopted by the board are: 
(a) 
Five thousand dollars for rules regarding design and installation 
requirements in effect at the time of the installation; 
(b) Five thousand dollars for rules regarding retrofitting of leak detection 
and corrosion protection, if applicable; 
(c) Five thousand dollars for rules regarding overfill and spill prevention; 
(d) Five thousand dollars for rules regarding the monitoring of cathodic 
protection systems; 
(e) Five thousand dollars for rules regarding testing requirements for tanks 
and piping on evidence of a leak; 
(f) Five thousand dollars for rules regarding maintenance of a leak detection 
system; and 
(g) Ten thousand dollars for rules regarding the reporting of leaks. 
C. Conditional deductibles for aboveground facilities and tanks are as follows. 
(l) For aboveground tanks subject to the jurisdiction of the State Fire Marshal 
pursuant to 16-219 CMR, chapter 34, the deductibles are: 
(a) Five thousand dollars for failure to obtain a construction permit from the 
Office of the State Fire Marshal, when required under Title 25, chapter 318 
and 16-219 CMR, chapter 34 or under prior applicable law; 
(b) 
Five thousand dollars for failure to design and install plpmg m 
accordance with section 570-K and rules adopted by the department; 
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(C) 
Five thousand dollars for failure to comply with an existing consent 
decree, court order or outstanding deficiency statement regarding violations 
at the aboveground facility; 
(d) Five thousand dollars for failure to implement a certified spill prevention 
control and countermeasure plan, if required; 
(e) Five thousand dollars for failure to install any required spill control 
measures, such as dikes; 
(f) 
Five thousand dollars for failure to install any required overfill 
equipment; 
(g) Five thousand dollars if the tank is not approved for aboveground use; 
and 
(h) Ten thousand dollars for failure to report any leaks at the facility. 
(2) For aboveground tanks subject to the jurisdiction of the Oil and Solid Fuel 
Board, the deductibles are: 
(a) 
One hundred and fifty dollars for failure to install the facility in 
accordance with rules adopted by the Oil and Solid Fuel Board and in effect 
at the time of installation; 
(b) Two hundred and fifty dollars for failure to comply with the rules of the 
Oil and Solid Fuel Board; 
(c) Two hundred and fifty dollars for failure to make a good faith effort to 
properly maintain the facility; and 
(d) Five hundred dollars for failure to notify the department of a spill. 
The commissioner shall make written findings of fact when making a determination of 
deductible amounts under this subsection. The commissioner's findings may be appealed 
to the Fund Insurance Review Board, as provided in section 568-B, subsection J....A 2-C. 
On appeal, the burden of proof is on the commissioner as to which deductibles apply. 
After determining the deductible amount to be paid by the applicant, the commissioner 
shall pay from the fund any additional eligible clean-up costs and 3rd-party damage 
claims up to $1,000,000 associated with activities under section 569-A, subsection 8, 
paragraphs B, D and J. The commissioner shall pay the expenses directly, unless the 
applicant chooses to pay the expenses and seek reimbursement from the fund. 
The 
commissioner may pay from the fund any eligible costs above $1,000,000, but the 
commissioner shall recover these expenditures from the responsible party pursuant to 
section 569-A. 
An applicant found ineligible for fund coverage for failure to achieve substantial 
compliance under former subsection 1, paragraph B or failure to apply within 180 days of 
reporting the discharge may, on or before July 1, 1996, make a new application for fund 
coverage of any discharge discovered after April 1, 1990, if the applicant agrees to pay all 
applicable deductible amounts in this subsection and the commissioner waives the 
180-day filing requirement pursuant to subsection 1. 
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COMMITTEE AMENDMENT" A" to H.P. 501, L.D. 671 
Sec. 2. 38 MRSA §568-A, sub-§3-A, as amended by PL 1995, c. 361, §7, is 
repealed. 
Sec. 3. 38 MRS A §568-B, as amended by PL 2009, c. 319, §13, IS further 
amended to read: 
§568-B. Fund Insurance Review Board created 
1. 
Fund Insurance Review Board. 
The Fund Insurance Review Board, as 
established by Title 5, section 12004-G, subsection ll-A, is created for the purposes of 
hearing and deciding to hear and decide appeals from insurance claims-related decisions 
of the commissioeer as well as adopting rules and guidelines necessary to the furtherance 
of its duties and responsibilities under this subchapter under section 568-A and monitor 
income and disbursements from the Ground Water Oil Clean-up Fund under section 
569-A. The review board consists of 10 members appointed for 3-year terms as follows: 
A. 
+ffi:ee Two persons representing the petroleum industry, appointed by the 
Govemor, one of whom is nominated by the Maine Oil Dealers Association, one of 
whom is a retailer '.'Iho owns fe'.'ler than 5 retail outlets, as defined in Title 10, section 
1672, subsection 6, and one of whom is a retailer '.'Iho O'.'IllS 5 or more retail outlets, 
as defined in Title 10, section 1672 a representative of a statewide association of 
energy dealers; 
A-I. Two persons, appointed by the Governor, who have expertise in oil storage 
facility design and installation, oil spill remediation or environmental engineering; 
B. ¥We Four members of the public who are not employed in the petroleum industry 
and who do not, appointed by the Governor, 2 of whom have expertise in biological 
science, earth science, engineering, insurance or law. The 4 members may not be 
employed in or have a direct and substantial financial interest in the petroleum 
industry to be appointed by the Governor; 
C. The commissioner or the commissioner's designee; and 
D. The State Fire Marshal or the fire marshal's designee. 
Members described in paragraphs A, A-I and B are entitled to reimbursement for direct 
expenses of attendance at meetings of the review board or the appeals panel. 
2. Powers and duties of review board. The Fund Insurance Review Board has the 
following powers and duties: 
A. To hear appeals from insurance claims-related decisions of the commissioner 
pursuant to and the State Fire Marshal under section 568-A, subsection 3 A; 
B. To adopt rules in accordance with Title 5, chapter 375, subchapter II establishing 
criteria for determining substantial compliance for aboveground oil storage facilities 
and guidelines necessary for the furtherance of the review board's duties and 
responsibilities under this subchapter; 
C. To contract with the Finance Authority of Maine for such assistance in fulfilling 
the review board's duties as the review board may require; 
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D. To monitor income and disbursements from the Ground Water Oil Clean-up Fund 
under section 569-A and adjust fees pursuant to section 569-A, subsection 5, 
paragraph E, as required to avoid a shortfall in the fund; arul 
E. To consult with the Finance Authority of Maine at such times as are necessary, 
but no less than annually, to review income and disbursements from the Waste Oil 
Clean-up Fund under Title 10, section 1023-L. The review board, at such times and in 
such amounts as it detennines necessary, and in consultation with the Finance 
Authority of Maine, shall direct the transfer of funds from the Underground Oil 
Storage Replacement Fund to the Groun€PINater Ground Water Oil Clean-up Fund7~ 
and 
F. To review department priorities for disbursements from the Ground Water Oil 
Clean-up Fund and make recommendations to the commissioner on how the fund 
should be allocated. 
2-A. Meetings. The Fund Insurance Review Board shall meet 6 times per year 
unless the review board votes not to hold a meeting. Action may not be taken unless a 
quorum is present. A quorum is 6 members. 
2-B. Chair. The review board shall annually choose a member to serve as chair of 
the review board. 
2-C. Appeals to review board. An applicant aggrieved by an insurance claims-
related decision under section 568-A, including but not limited to decisions on eligibility 
for coverage, eligibility of costs and waiver and amount of deductible, may appeal that 
decision to the Fund Insurance Review Board. The appeals panel is composed of the 
public members appointed under subsection 1, paragraph B. The appeals panel shall hear 
and decide the appeal. Except as provided in review board rules, the appeal must be filed 
within 30 days after the applicant receives the decision made under section 568-A. The 
appeals panel must hear an appeal at its next meeting following receipt of the appeal 
unless the appeal petition is received less than 30 days before the meeting or unless the 
appeals panel and the aggrieved applicant agree to meet at a different time. If the appeals 
panel overturns the decision made under section 568-A, reasonable costs, including 
reasonable attorney's fees, incurred by the aggrieved applicant in pursuing the appeal to 
the review board must be paid from the fund. Reasonable attorney's fees include only 
those fees incurred from the time of an insurance claims-related decision forward. 
Decisions of the appeals panel are subject to judicial review pursuant to Title 5, chapter 
375, subchapter 7. 
2-D. Report; adequacy of fund. On or before February 15th of each year, the Fund 
Insurance Review Board, with the cooperation of the commissioner, shall report to the 
joint standing committee of the Legislature having jurisdiction over natural resources 
matters on the department's and the review board's experience administering the Ground 
Water Oil Clean-up Fund, clean-up activities and 3rd-party damage claims. The report 
must include an assessment of the adequacy of the fund to cover anticipated expenses and 
any recommendations for statutory change. The report also must include an assessment 
of the adequacy of the Underground Oil Storage Replacement Fund and the Waste Oil 
Clean-up Fund to cover anticipated expenses and any recommendations for statutory 
change. To carry out its responsibility under this subsection, the review board may order 
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an independent audit of disbursements from the Ground Water Oil Clean-up Fund, the 
Underground Oil Storage Replacement Fund and the Waste Oil Clean-up Fund. 
3. Repeal date. This section is repealed December 31, 2015. 
Sec. 4. 38 MRSA §569-A, sub-§8, ~A, as amended by PL 2005, c. 157, §1, is 
further amended to read: 
A. Administrative expenses, personal services and equipment costs of the department 
related to the administration and enforcement of this subchapter, except that total 
disbursements for personal services may not exceed $3,700,000 per fiscal year 
multiplied by an annual adjustment factor of 4% beginning in fiscal year 2005-06 and 
except that total disbursements for administrative expenses may not exceed 
$2,000,000 per fiscal year; 
Sec. 5. 38 MRSA §570-H, as amended by PL 2007, c. 292, §37, is repealed. 
Sec. 6. Transition provision. Members of the Fund Insurance Review Board 
created under the Maine Revised Statutes, Title 38, section 568-B, subsection 1 serving 
on the effective date of this Act may continue to serve on the board for the remainder of 
their tenns. When the tenn of a member expires, that member's successor is appointed in 
accordance with this Act. At no time may fewer than 4 public members be appointed.' 
SUMMARY 
This amendment replaces the bill. The amendment changes the membership of the 
Fund Insurance Review Board by: 
1. 
Decreasing from 3 to 2 the number of members representing the petroleum 
industry; 
2. Designating membership of 2 members who have expertise in oil storage facility 
design and installation, oil spill remediation or environmental engineering; and 
3. Decreasing from 5 to 4 the number of public members. 
The amendment also alters the duties of the review board to include revlewmg 
Department of Environmental Protection priorities for disbursements from the Ground 
Water Oil Clean-up Fund and making recommendations to the Commissioner of 
Environmental Protection on how the fund should be allocated. The amendment also 
provides for the number of meetings to be held by the review board and for the annual 
selection of a chair. The amendment also consolidates responsibilities for hearing appeals 
and reporting to the Legislature in the section of law that deals with the review board. 
The amendment retains the provision in current law that repeals the review board on 
December 31, 2015. The amendment also retains the provision in the bill that provides 
that total disbursements from the Ground Water Oil Clean-up Fund for administrative 
expenses may not exceed $2,000,000 per fiscal year. 
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