An Act To Add Rivers, Streams and Brooks to the Department of Environmental Protection's Compensation Fee Program
Maine Legislature, Session 129, LD 1777
Committee: Environment and Natural Resources
Sponsors: FOLEY
Amends: 38 MRSA §480-Z

Legislative Document
No. 1777
S.P. 601
In Senate, May 23, 2019
An Act To Add Rivers, Streams and Brooks to the Department of 
Environmental Protection's Compensation Fee Program
Submitted by the Department of Environmental Protection pursuant to Joint Rule 204.
Reference to the Committee on Environment and Natural Resources suggested and ordered 
printed.
DAREK M. GRANT
Secretary of the Senate
Presented by Senator FOLEY of York.
Be it enacted by the People of the State of Maine as follows:
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, paragraphs A and B in 
consultation with the Department of Agriculture, Conservation and Forestry, the United 
States Army Corps of Engineers and state and federal resource agencies, including the 
United States Fish and Wildlife Service and the United States Environmental Protection 
Agency.  The department may develop a compensation fee program for the areas listed in 
subsection 7, paragraphs C, D and E in consultation with the Department of Inland 
Fisheries and Wildlife.
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;
(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, taking 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 
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 
375, subchapter 2-A.
Sec. 2.  38 MRSA §480-Z, sub-§7, ¶¶D and E, as enacted by PL 2007, c. 527, 
§1, are amended to read:
D.  High and moderate value waterfowl and wading bird habitat, including nesting 
and feeding areas; and
E.  Shorebird nesting, feeding and staging areas.; and
Sec. 3.  38 MRSA §480-Z, sub-§7, ¶F is enacted to read:
F.  Rivers, streams and brooks.
SUMMARY
This bill adds rivers, streams and brooks to the list of protected natural resources for 
which the Department of Environmental Protection may develop a compensation fee 
program.  The bill also removes a statutory requirement that the department, when 
developing a compensation fee program, consult with the Department of Agriculture, 
Conservation and Forestry and the Department of Inland Fisheries and Wildlife.