An Act To Add O Rivers, Streams and Brooks to the Department of Environmental Protection's Compensation Fee Program
Maine Legislature, Session 129, LD 1777
Committee Amendment CA_A_S385 (Senate)
Amends: 38 MRSA §480-Z

COMMITTEE AMENDMENT" A "to S.P. 601, L.D. 1777, Bill, "An Act To Add 
O 
Rivers, Streams and Brooks to the Department of Environmental Protection's 
Compensation Fee Program" 
Amend the bill by inserting after the enacting clause and before section 1 the 
following: 
'Sec. 1. 38 MRSA §480-Z, 4th ,r, as amended by PL 2007, c. 527, §1, is further 
amended to read: 
A project undertaken pursuant to this section must be approved by the department. 
The department shall base its approval of a wetlands compensation project on the wetland 
management priorities identified by the department for the watershed or biophysical 
region in which the project is located. The department shall base its approval of a 
compensation project concerning an area listed in subsection 7, paragraph C, Der,. E or F 
on the management priorities identified by the department for the type of habitat. The 
department may not approve a compensation project for unavoidable losses to an area 
until the applicant has complied with all other applicable provisions of this article and all 
applicable rules adopted by the department pursuant to this article. For purposes of this 
section, "biophysical region" means a region with shared characteristics of climate, 
geology, soils and natural vegetation.' 
Amend the bill by striking out all of section 1 and inserting the following: 
'Sec. 1. 38 MRSA §480-Z, sub-§3, as amended by PL 2011, c. 655, Pt. JJ, §31 
and affected by §41 and amended by c. 657, Pt. W, §5, is further amended to read: 
3. 
Compensation fee program. 
The department may develop a wetlands 
compensation fee program for the areas listed in subsection 7, paragraJ)hs l .. and B in 
consultation with the Department of Agrioultare, Conseryation and Forestry, the United 
Sta-tes l.nny Corps of Engineers and state and federal resource agencies, including. but 
not limited to. the Department of Agriculture, Conservation and Forestry. the Department 
of Inland Fisheries and Wildlife, the United States Army Corps of Engineers. the United 
States Fish and Wildlife Service and the United States Environmental Protection Agency. 
COMMITTEE AMENDMENT 
( ? '5 ·,"")Bs·) 
COMMITTEE AMENDMENT" F} "to S.P. 601, L.D. 1777 . .. 
. 
, 
The department may develop a eompensation fee program for the ai"eas listed in 
sooseotion 7, pai"agraphs C, D and E i:n eonsultation with the Department of Inland 
Fisheries and V.Z:ildlifu. 
A. The program may include the following: 
(1) 
Identification of wetland management priorities on a watershed or 
biophysical region basis; 
(1-A) Identification of management priorities for the areas listed in subsection 7, 
paragraphs C, D and~ E and F; 
(2) Identification of the types of losses eligible for compensation under this 
subsection; 
(3) Standards for compensation fee projects; 
(4) Calculation of compensation fees based on the functions and values of the 
affected areas and the cost of compensation, talcing into account the potential 
higher cost of compensation when a project is implemented at a later date; and 
(5) Methods to evaluate the long-term effectiveness of compensation fee projects 
implemented under this subsection in meeting the management priorities 
identified pursuant to subparagraphs (1) and (1-A). 
B. Any compensation fee may be paid into a compensation fund established by the 
department as provided in subparagraph (1) or to an organization authorized by the 
department as provided in subparagraph (2). 
A compensation project funded in 
whole or in part from compensation fees must be approved by the department. 
(1) The department may establish compensation funds for the purpose of 
receiving compensation fees, grants and other related income. A compensation 
fund must be a fund dedicated to payment of costs and related expenses of 
restoration, enhancement, preservation and creation projects. The department 
may make payments from the fund consistent with the purpose of the fund. 
Income received under this subsection must be deposited with the State Treasurer 
to the credit of the compensation fund and may be invested as provided by law. 
Interest on these investments must be credited to the compensation fund. 
(2) The department may enter into an enforceable, written agreement with a 
public, quasi-public or municipal organization or a private, nonprofit 
organization for the protection of natural areas. 
Such an organization must 
demonstrate the ability to receive compensation fees, administer a compensation 
fund and ensure that compensation projects are implemented consistent with 
local, regional or state management priorities. If compensation fees are provided 
to an authorized organization, the organization shall maintain records of 
expenditures and provide an annual summary report as requested by the 
department. If the authorized agency is a state agency other than the department, 
the agency shall establish a fund meeting the requirements specified in 
subparagraph (1 ). If the organization does not perform in accordance with this 
subsection or with the requirements of the written agreement, the department may 
COMMITTEE AMENDMENT 
COMMITTEE AMENDMENT" A" to S.P. 601, L.D. 1777 ( 5 ·,3 B'S") 
revoke the organization's authority to conduct activities in accordance with this 
subsection. 
Rules adopted pursuant to this subsection are routine technical rules under Title 5, chapter 
7 5, subchapter 2-A.' 
Amend the bill by relettering or renumbering any nonconsecutive Part letter or 
section number to read consecutively. 
SUMMARY 
This amendment amends the bill by clarifying tl}.e state and federal resource agencies 
that the Department of Environmental Protection has to consult with in developing a 
compensation fee program. It also makes a number of technical corrections to the 
compensation fee program statute necessitated by the addition of rivers, streams and 
brooks to the list of protected natural resources for which the department may develop a 
compensation fee program, as provided for in the bill. 
FISCAL NOTE REQUIRED 
(See attached) 
COMMITTEE AMENDMENT 
Approved: 01/24/20 frac 
LD 1777 
LR 2387(02) 
An Act To Add Rivers, Streams and Brooks to the Department of Environmental Protection's 
Compensation Fee Program 
Fiscal Note for Bill as Amended by Committee Amendment'~' C ~ ·3'l£) 
Committee: Environment and Natural Resources 
Fiscal Note Required: Yes 
Fiscal Note 
Potential future biennium revenue increase - Other Special Revenue Funds 
Fiscal Detail and Notes 
The addition of streams, rivers, and brooks to the list of protected natural resources for which the Department of 
Environmental Protection (DEP) may develop a compensation fee program may result in additional Other Special 
Revenue Funds revenue. The amount of additional revenue cannot be detennined at this time, but is not anticipated to 
be significant. 
LR2387(02) - Fiscal Note - Page I of I