An Act To Ensure Proper Closure of Oil Terminal Facilities (AFTER DEADLINE)
Maine Legislature, Session 129, LD 2033
Committee: Environment and Natural Resources
Sponsors: CARNEY, MILLETT, CUDDY, KESSLER, MORALES, RECKITT, TUCKER, CARSON, LAWRENCE
Amends: 38 MRSA §542, 38 MRSA §546, 38 MRSA §552-B

Legislative Document
No. 2033
H.P. 1443
House of Representatives, January 14, 2020
An Act To Ensure Proper Closure of Oil Terminal Facilities
(AFTER DEADLINE)
Approved for introduction by a majority of the Legislative Council pursuant to Joint Rule 
205.
Reference to the Committee on Environment and Natural Resources suggested and ordered 
printed.
ROBERT B. HUNT
Clerk
Presented by Representative CARNEY of Cape Elizabeth.
Cosponsored by Senator MILLETT of Cumberland and
Representatives: CUDDY of Winterport, KESSLER of South Portland, MORALES of South 
Portland, RECKITT of South Portland, TUCKER of Brunswick, Senators: CARSON of 
Cumberland, LAWRENCE of York.
Be it enacted by the People of the State of Maine as follows:
Sec. 1.  38 MRSA §542, sub-§4-B is enacted to read:
4-B.  Facility closure.  "Facility closure" means:
A.  Removal of all oil and oil residuals from tanks and all related appurtenances;
B.  Decontamination of the facility, related appurtenances and soil containing or 
contaminated with oil or oil residuals;
C.  Removal of tanks, related appurtenances and contaminated soil;
D.  Disconnection and removal of underground piping or secure capping or plugging 
of underground piping when removal is not feasible; and
E.  Other steps required to safely decommission the facility and remediate the facility 
site to an unrestricted use standard for residential and other uses or the most 
protective use standard determined by the department to be practicable.
Sec. 2.  38 MRSA §542, sub-§6, as amended by PL 2015, c. 319, §11, is further 
amended to read:
6.  Oil.  "Oil" means oil, oil additives, petroleum products and their by-products of 
any kind and in any form, including, but not limited to, petroleum, fuel oil, sludge, oil 
refuse, oil mixed with other wastes, asphalt, bunker fuel, crude oils and all other liquid 
hydrocarbons regardless of specific gravity. "Oil" does not include liquid natural gas.
Sec. 3.  38 MRSA §542, sub-§7, as amended by PL 1993, c. 355, §7, is further 
amended to read:
7.  Oil terminal facility or facility.  "Oil terminal facility" or "facility" means any 
facility of any kind and related appurtenances, located in, on or under the surface of any 
land or water, including submerged lands, which that is used or capable of being used for 
the purpose of transferring, processing or refining oil, or for the purpose of storing the 
same, but does not include any facility used or capable of being used to store no more 
than 1500 1,500 barrels or 63,000 gallons, nor any facility not engaged in the transfer of 
oil to or from waters of the State.  A vessel is considered an oil terminal facility only in 
the event of a ship-to-ship transfer of oil, but only that vessel going to or coming from the 
place of ship-to-ship transfer and a permanent or fixed oil terminal facility.  The term 
does not include vessels engaged in oil spill response activities.
Sec. 4.  38 MRSA §546, as amended by PL 1991, c. 698, §6, is further amended to 
read:
§546.  Regulatory powers of board department
4.  Extent of regulatory powers. The board department shall have the power to 
adopt rules and regulations including but not limited to rules governing the following 
matters:
A.  Operating and inspection requirements for facilities, vessels, personnel and other 
matters relating to licensee operations under this subchapter, including annual 
inspections of oil terminal facilities;
B.  Procedures and methods of reporting discharges and other occurrences prohibited 
by this subchapter;
C.  Procedures, methods, means and equipment to be used by persons subject to 
regulations regulation by this subchapter;
D.  Procedures, methods, means and equipment to be used in the removal of oil and 
petroleum pollutants;
E.  Development and implementation of criteria and plans to meet oil and petroleum 
pollution occurrences of various degrees and kinds, including the state marine oil 
spill contingency plan required under section 546-A.  Those plans must include 
provision for annual drills, sometimes unannounced, to determine the adequacy of 
response plans and the preparedness of the response teams;
E-1.  Development and implementation of criteria and plans for facility closure 
required under section 552-B.  Those plans must include standards, procedures and 
reporting requirements for removal of facilities and appurtenances and remediation of 
the facility site to an unrestricted use standard or the most protective use standard 
determined by the department to be practicable;
E-2.  Standards for establishing financial assurance adequate to guarantee the 
performance of licensee obligations under section 552-B;
F.  The establishment from time to time of control districts comprising sections of the 
Maine coast and the establishment of rules and regulations to meet the particular 
requirements of each such district;
G.  Requirements for the safety and operation of vessels, barges, tugs, motor vehicles, 
motorized equipment and other equipment relating to the use and operation of 
terminals, facilities and refineries and the approach and departure from terminals, 
facilities and refineries;
H.  Such other rules and regulations as the exigencies of any condition may require or 
such as may reasonably be necessary to carry out the intent of this subchapter; and
K.  Operation and inspection requirements for interstate and intrastate oil pipelines 
excluding natural gas and artificial gas pipelines.
5.  Facility response plans.  Every facility subject to licensing under this section 
shall file with the department a copy of any oil discharge response plan submitted to the 
President of the United States under the federal Oil Pollution Act of 1990, Public Law 
101-380, Section 4202, 104 Stat. 484, or a statement that a plan is not required under 
federal law.
6.  Vessel response plans.  Every tank vessel, as defined under 56 United States 
Code, Section 2101, entering state waters shall have available for inspection by the 
commissioner or an agent of the commissioner a copy of any oil discharge response plan 
required to be submitted to the President of the United States under the federal Oil 
Pollution Act of 1990, Public Law 101-380, Section 4202, 104 Stat. 484.
Sec. 5.  38 MRSA §552-B is enacted to read:
§552-B.  Financial assurance and facility closure
1.  Financial assurance.  An owner or operator of an oil terminal facility shall 
provide the department assurance of its financial ability to satisfy liability imposed 
pursuant to section 552, and to pay the estimated cost of facility closure, in compliance 
with this subchapter and rules adopted by the department.
A.  The owner or operator of a facility shall provide evidence of financial ability to 
satisfy liability imposed pursuant to section 552 in an amount no less than 
$2,000,000.
B.  The owner or operator of a facility shall provide evidence of financial 
responsibility in an amount sufficient to ensure proper facility closure.
C.  The owner or operator of a facility shall file with the department an estimate of 
probable facility closure costs, including a preliminary facility closure plan, to be 
eligible for a license required under this subchapter.
D.  Financial assurance may be established, subject to the approval of the department, 
by one or a combination of the following: insurance and risk retention group 
coverage, guarantee, surety bond, letter of credit or trust fund.  In determining the 
adequacy of evidence of financial responsibility, the department shall consider the 
criteria in 40 Code of Federal Regulations, Sections 280.96 to 280.99, 280.102 and 
280.103.
E.  Failure to meet the requirements of this subsection and the department's rules may 
result in nonrenewal or revocation of a license in accordance with subsection 3.
2.  Facility closure.  An owner or operator shall close an oil terminal facility in 
compliance with a written facility closure plan that meets standards for safe closure and 
facility site remediation.
A.  An owner or operator shall file a written facility closure plan with the department 
within 60 days of a decision to close an oil terminal facility or upon the failure of the 
owner or operator to use an oil terminal facility or portion thereof for more than 10 
years.  The owner or operator may not carry out any facility closure activities until 
the department has approved the facility closure plan.
B.  The department shall review the facility closure plan to determine compliance 
with applicable rules, consistent with an annual processing time schedule adopted by 
the department.  The department's approval must include a timeline for completion of 
the facility closure plan, including dates for performance of specific closure tasks.
C.  The facility closure must be completed to the satisfaction of the commissioner.  
The department may conduct inspections, including, but not limited to, soil, 
groundwater and other testing, as a part of and to determine compliance with the 
facility closure plan.
D.  The owner or operator shall file a written facility closure completion report with 
the department, which must include a certification from an independent licensed 
professional engineer that the facility closure was conducted in accordance with the 
approved facility closure plan and that all regulated substances have been removed or 
remediated to the satisfaction of the department.
E.  The department shall post the facility closure plan, departmental approval, 
inspection and testing results and completion report, including the independent 
licensed professional engineer's certification, required under this subsection on the 
department's publicly accessible website for 6 years following the completion of the 
facility closure.
3.  Enforcement.  An owner or operator that fails to comply with the financial 
assurance or facility closure requirements of this section is subject to enforcement action 
by the department, including revocation of the license required by sections 544 and 545.
Sec. 6.  Effective date.  This Act takes effect January 1, 2021.
SUMMARY
This bill ensures proper closure of oil terminal facilities by establishing financial 
assurance and facility closure requirements.  It develops a process for assessing the costs 
of decommissioning oil terminal facilities and infrastructure and establishing financial 
responsibility for closure costs.  It requires, upon closure, removal of facilities and 
appurtenances and remediation of the site to an unrestricted use standard or the most 
protective use standard determined by the Department of Environmental Protection to be 
practicable.  It also requires facilities not in use for 10 years to file a closure plan.  The 
bill also requires oil terminal facilities to provide evidence of financial ability to satisfy 
liability under existing law.