An Act To Stabilize and Streamline the Department of Environmental Protection's Ground Water Oil Clean-up Fund and Maine Coastal and Inland Surface Oil Clean-up Fund
Maine Legislature, Session 127, LD 1303
Committee Amendment CA_A_S301 (Senate)
Amends: 38 MRSA §568-A

COMMITTEE AMENDMENT" A " to S.P. 468, L.D. 1303, Bill, "An Act To 
Stabilize and Streamline the Department of Environmental Protection's Ground Water Oil 
Clean-up Fund and Maine Coastal and Inland Surface Oil Clean-up Fund" 
Amend the bill by inserting after the title and before the enacting clause the 
following: 
'Emergency preamble. Whereas, acts and resolves of the Legislature do not 
become effective until 90 days after adjournment unless enacted as emergencies; and 
Whereas, the statutorily established Ground Water Oil Clean-up Fund and Maine 
Coastal and Inland Surface Oil Clean-up Fund support activities related to the cleanup of 
spills and discharges of oil and other hazardous materials in the State; and 
Whereas, these funds are funded primarily through fees on the imports of oil into 
Maine, which have declined in recent years and are projected to decline further; and 
Whereas, the timely integration ofthese 2 funds, as proposed in this legislation, will 
streamline and stabilize the State's oil clean-up programs, allowing the Department of 
Environmental Protection to effectively manage its prevention, response and remediation 
activities; and 
Whereas, in the judgment of the Legislature, these facts create an emergency within 
the meaning of the Constitution of Maine and require the following legislation as 
immediately necessary for the preservation of the public peace, health and safety; now, 
therefore,' 
Amend the bill in section 16 in §551 in the first paragraph in the 4th line (page 4, line 
in L.D.) by striking out the following: "$15,000,000" and inserting the following: 
'$18,500,000' 
Amend the bill in section 16 in §551 in the first paragraph in the 8th line (page 4, line 
in L.D.) by inserting after the following: "aRd-te" the following: 'and subchapter 2-B' 
COMMITTEE AMENDMENT 
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COMMITTEE AMENDMENT" A "to S.P. 468, L.D. 1303 
Amend the bill in section 16 in §551 in subsection 4 in paragraph E in the 2nd line 
(page 8, line 35 in L.D.) by striking out the following: "$15,000,000" and inserting the 
following: '$18,500,000' 
Amend the bill in section 16 in §551 in subsection 4 in paragraph E in the 3rd line 
(page 8, line 36 in L.D.) by striking out the following: "$15,000,000" and inserting the 
following: '$18,500,000' 
Amend the bill in section 16 in §551 in subsection 4 in paragraph F in the 4th line 
(page 9, line 1 in L.D.) by inserting after the following: "except" the following: 'unrefined 
crude oil.' 
Amend the bill in section 16 in §551 by striking out all of subsection 4-B (page 9, 
lines 15 to 18 in L.D.) and inserting the following: 
'4-B. Reimbursement for fees imposed on transfers out of state. Any person who 
paid a fee under subsection 4, paragraph A-l, subparagraph (2), (3) or (4) on petroleum 
products that were exported from this State must be reimbursed by the department in the 
following amounts upon presentation of documentation of that payment and transfer: 
A. Four cents per barrel of#6 fuel oil; 
B. Nineteen cents per barrel of #2 fuel oil, kerosene, jet fuel, diesel fuel and other 
refined products and their by-products not otherwise specified in this subsection, 
excluding liquid asphalt; and 
C. Thirty-eight cents per barrel of gasoline. 
A fee paid on a transfer out of state is eligible for reimbursement under this subsection 
only if documentation of that payment and transfer are presented to the department within 
months of the transfer.' 
Amend the bill in section 16 in §551 in subsection 5 in paragraph A in the 3rd line 
(page 9, line 23 in L.D.) by inserting after the following: "subchapter" the following: 'and 
subchapter 2-B' 
Amend the bill in section 16 in §551 in subsection 5 in paragraph D in the 3rd line 
(page 9, line 36 in L.D.) by inserting after the following: "pursuant to" the following: 
'section 568-A.' 
Amend the bill by striking out all of sections 27 and 28 and inserting the following: 
'Sec. 27. 38 MRSA §568-A, sub-§2, as amended by PL 2013, c. 300, §11, 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 
COMMITTEE AMENDMENT 
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COMMITTEE AMENDMENT" A "to S,p, 468, L.D, 1303 
storage facility owner at the time the covered discharge is discovered. 
Standard 
deductibles are as follows. 
B. 
(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 
6to 10 
to 20 
to 30 
over 30 
Deductible 
$2,500 
5,000 
10,000 
25,000 
40,000 
62,500 
(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. 
(4) For aboveground tanks regulated by the Maine Fuel Board with less than 300 
gallons' storage capacity, the standard deductible may be waived by the 
commissioner upon submission of documentation of a passing ultrasonic 
thickness test of the tank conducted within 12 months prior to the discharge. 
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. 
COMMITTEE AMENDMENT 
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COMMITTEE AMENDMENT" A "to S.P. 468, L.D. 1303 
(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 
1, if applicable; 
(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 
of2,000 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; 
COMMITTEE AMENDMENT 
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COMMITTEE AMENDMENT "11 "to S.P, 468, L.D. 1303 
(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. 
(1) 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 piping in 
accordance with section 570-K and rules adopted by the department; 
(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 Maine Fuel Board, 
the deductibles are: 
(a) 
One hundred and fifty dollars for failure to install the facility in 
accordance with rules adopted by the Maine 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 
Maine Fuel Board; 
(c) Two hundred and fifty dollars for failure to make a good faith effort to 
properly maintain the facility; and 
COMMITTEE AMENDMENT 
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COMMITTEE AMENDMENT" A "to S,P, 468, L.D. 1303 
(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 fmdings may be appealed 
to the Clean-up and Response Fund Insarailce Review Board, as provided in section 
568-B, subsection 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 for underground oil storage facilities and up to $750,000 for all 
other occurrences associated with activities under section ~ 
551, subsection .g. ~, 
paragraphs B, D and J K. 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 for 
underground oil storage facilities and above $750,000 for all other occurrences, but the 
commissioner shall recover these expenditures from the responsible party pursuant to 
section ~ 
551. 
AB aPfllicant folii'ld ineligible for fund cov:erage for failare to achie: ... e soostantial 
comflliailce \mder former s:absection 1, paragraflh B or faHare to aPflly 'llithin 1 80 days of 
reflortiHg the discharge may, on or before July 1, 199b, make a new aPfllication for fund 
coverage of any discharge discovered after April 1, 1990, if the aPfllicant agrees to pay all 
apfllicable deductible amounts in: this soosection aild the commissioner 'Naives the 
day filing requirement pursuant to subsection 1.' 
Amend the bill in section 31 in §568-B in subsection 1 by striking out all of 
paragraph B and inserting the following: 
'B. Four members of the public, appointed by the Governor,. Of the 4 members, 2 ef 
whom must 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;' 
Amend the bill in section 31 in §568-B in subsection 1 by striking out all of 
paragraphs E to H and inserting the following: 
'E. One member representing marine fisheries interests appointed by the President of 
the Senate; 
F. 
One member familiar with oil spill technology appointed by the Speaker of the 
House of Representatives; 
G. 
One member with expertise in coastal geology, fisheries biology or coastal 
wildlife habitat appointed by the President of the Senate; and 
H. 
One member who is a licensed state pilot or a licensed merchant marine officer 
appointed by the Speaker of the House of Representatives.' 
Amend the bill in section 34 in the frrst paragraph in the 7th line (page 22, line 9 in 
L.D.) by striking out the following: "damages" and inserting the following: 'damages 
damage' 
COMMITTEE AMENDMENT 
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COMMITTEE AMENDMENT" A "to S.P. 468, L.D. 1303 
Amend the bill in section 34 in the first paragraph in the 9th line (page 22, line 11 in 
L.D.) by striking out the following: "reasonable" and inserting the following: 'reasonable 
State's' 
Amend the bill by inserting after section 42 the following: 
'Sec. 43. Appropriations and allocations. The following appropriations and 
allocations are made. 
ENVIRONMENTAL PROTECTION, DEPARTMENT OF 
Remediation and Waste Management 0247 
Initiative: Transfers 20 positions, associated All Other and Capital Expenditures from the 
Maine Coastal and Inland Surface Oil Clean-up Fund to the Maine Ground and Surface 
Waters Clean-up and Response Fund. 
OTHER SPECIAL REVENUE FUNDS 
2015-16 
2016-17 
Personal Services 
$0 
$0 
All Other 
($250,000) 
($250,000) 
Capital Expenditures 
$0 
$0 
OTHER SPECIAL REVENUE FUNDS TOTAL 
($250,000) 
($250,000) 
Amend the bill by adding before the summary the following: 
'Emergency clause. 
In view of the emergency cited in the preamble, this 
legislation takes effect when approved.' 
Amend the bill by relettering or renumbering any nonconsecutive Part letter or 
section number to read consecutively. 
SUMMARY 
This amendment adds an emergency preamble and emergency clause and retains all 
provisions from the bill except as follows. 
1. It provides that the balance in the new Maine Ground and Surface Waters Clean-
up and Response Fund is limited to $18,500,000. 
2. It provides that unrefined crude oil is not subject to the funding provision for the 
new Maine Ground and Surface Waters Clean-up and Response Fund that allows for fee 
increases when the fund balance falls to $6,000,000 or less. 
3. It provides additional specific fee information for reimbursement of fees imposed 
on transfers out of state. 
4. It removes from the bill certain changes to the statutory standard deductible 
amounts for coverage of clean-up costs and eligible 3rd-party damage costs under the 
new Maine Ground and Surface Waters Clean-up and Response Fund. It eliminates from 
the bill the section that transfers from the Board of Environmental Protection to the 
Clean-up and Response Fund Review Board the authority to adopt rules to determine the 
COMMITTEE AMENDMENT 
COMMITTEE AMENDMENT" A "to S.P. 468, L.D. 1303 
standards for assessing an applicant's ability to pay the deductible with respect to the 
applicant's personal residence. 
5. It amends certain provisions of the bill governing the appointment of members to 
the Clean-up and Response Fund Review Board. 
The amendment also makes necessary changes to statutory cross-references and adds 
an appropriations and allocations section. 
FISCAL NOTE REQUIRED 
(See attached) 
COMMITTEE AMENDMENT 
Approved: 06/16/15 
;W'.a~ 
LD 1303 
LR 536(02) 
An Act To Stabilize and Streamline the Department of Environmental Protection's Ground Water Oil 
Clean-up Fund and Maine Coastal and Inland Surface Oil Clean-up Fund 
Fiscal Note for Bill as Amended by Committee Amendment 'fP' (S -'X>\) 
Committee: Environment and Natural Resources 
Appropriations/Allocations 
Other Special Revenue Funds 
Revenue 
Other Special Revenue Funds 
Transfers 
Other Special Revenue Funds 
Fiscal Detail and Notes 
Fiscal Note Required: Yes 
Fiscal Note 
FY 2015-16 
FY 2016-17 
($250,000) 
($250,000) 
$0 
$0 
$0 
$0 
Projections 
FY 2017-18 
($250,000) 
$0 
$0 
Projections 
FY 2018-19 
($250,000) 
$0 
$0 
The bill combines the Ground Water Oil Clean-up Fund and the Maine Coastal and Inland Surface Water Clean-up 
Fund within the Department of Environmental Protection (DEP) and names the combined fund the Maine Ground and 
Surface Waters Clean-up and Response Fund (Response Fund). The Response Fund will be used to respond to oil spills 
and clean-up activities, repair, retrofit, replace or remove aboveground and underground oil storage tallies, as well as 
undertake certain other activities. This bill allows the Clean-up and Response Fund Review Board to adopt rules raising 
fees on barrels of cmiain fuel if the Response Fund's balance becomes $6,000,000 or less. These fee increases terminate 
when the Response Fund's balance reaches $10,000,000. No estimate is made at this time ofthe potential amount of 
revenue that would be generated from this fee increase. Combining these two funds will not change the amount of 
revenue to the DEP. There will be total transfers of $831 ,509 and $827,736 in fiscal years 2015-16 and 2016-17, 
respectively, from the Response Fund for staff time for reporting oil spills, providing the Board of Enviroiunental 
Protection with funds and other related costs. Under current law, yearly allocations may not exceed $250,000 for certain 
research and development costs and this bill places a $100,000 maximum on allocations per year. The bill includes 
Other Special Revenue Funds deallocations of $250,000 in each of fiscal years 2015-16 and 2016-17 from projected 
savings from combining these funds and reducing the maximum amount allowed for allocations for research and 
development. 
LR0536(02) - Fiscal Note - Page 1 of 1