Code of Maine Rules › 06 - DEPARTMENT OF ENVIRONMENTAL PROTECTION › 096 - DEPARTMENT OF ENVIRONMENTAL PROTECTION - GENERAL › Chapter 373 - FINANCIAL AND TECHNICAL CAPACITY STANDARDS OF THE SITE LOCATION OF DEVELOPMENT ACT › Section 096-373-2 - Financial Capacity

Current through 2024-29, July 17, 2024
A.
Standard.
The applicant shall have financial capacity to design,
				construct, operate, and maintain the development in a manner consistent with
				state environmental standards and the provisions of the Site Law. The applicant
				must have the financial capacity for all aspects of the development, and not
				solely the environmental protection aspects. Evidence of financial capacity
				must be provided prior to a decision on an application, except, pursuant to
				38 M.R.S.
				§484(1), the Department
				may defer a final finding on financial capacity by placing a condition on a
				permit that requires the permittee to provide final evidence of financial
				capacity before the start of any site alterations.
B.
Submissions.
The application
				for approval of a proposed development must include evidence that affirmatively
				demonstrates that the developer has the financial capacity to design,
				construct, operate, and maintain the proposed development, except in cases in
				which the Department defers a final determination as set forth in Section
				2(A) above. Evidence
				to demonstrate financial capacity must include, but is not limited to, the
				following information.
(1)
Cost
				estimates
. Accurate and complete cost estimates of the development,
				including all proposed phases. The itemization of major costs may include, but
				is not limited to, the cost of the following activities: land purchase, erosion
				control, roads, sewers, structures, water supply, utilities, pollution
				abatement, landscaping, and restoration of the site, if applicable.
(2)
Time schedule
. The time
				schedule for construction of all phases proposed.
(3)
Evidence of funds
. Evidence
				such as the following:
(a)
Letter of
				commitment or intent to fund
. A letter from a financial institution,
				governmental agency, or other funding entity indicating a commitment to provide
				to the applicant a specified amount of funds and the uses for which the funds
				may be utilized. In cases where funding is required but there can be no
				commitment of money until approvals are received, an applicant may submit a
				letter of "intent to fund" from an appropriate funding institution indicating
				the amount of funds intended to be provided to the applicant and the specified
				uses for which the funds are intended.
In cases where one or more limited liability corporations are
				  part of the applicant's corporate structure, evidence must be submitted
				  describing the applicant's corporate structure, and demonstrating that the
				  proposed financing is clearly linked from the financing institution to the
				  applicant.
(b)
Self-financing
(i) The most
				recent corporate annual report or financial statements indicating availability
				of sufficient funds to finance the development together with material
				explaining the report, and evidence that funds have been set aside for the
				proposed development. The financial information in any annual report and any
				financial statement should be audited, or an explanation provided why audited
				reports are not available.
(ii)
				Copies of bank statements of accounts held by the applicant or other evidence
				indicating that funds are available and have been set aside for the proposed
				development.
(c)
Government agency
(i) Evidence
				that funds to complete the development have been included in an approved
				budget, that the expenditure of funds has been approved by the appropriate
				legal entity such as the municipality or the Legislature, that the issuance of
				bonds has been approved to cover the cost of the development, or that grant
				money has been obtained to cover development costs.
(ii) In cases where funding is required but
				there can be no commitment of money until approvals are received, a detailed
				plan outlining how funds for the development will be obtained and evidence that
				legal authority exists to implement the plan.
(d)
Non-profit organization
(i) Evidence that funds to complete the
				development have been included in an approved budget and that grant money or
				other funds have been obtained to cover the development costs.
(ii) In cases where funding is required but
				there can be no commitment of money until approvals are received, a detailed
				plan outlining how funds for the development will be obtained, including
				projections for and status of any fund raising.
(4)
Phased development
.In cases
				of phased development or long term construction projects, the department may
				find that the applicant has demonstrated adequate financial capacity to comply
				with department requirements provided (a) the applicant has demonstrated
				financial capacity for a separate first phase, and (b) the permit is
				conditioned to require that evidence of financial capacity adequate for review
				and approval be submitted to the Department prior to construction of each
				subsequent phase. Construction of each subsequent phase may not begin prior to
				approval of financial capacity for that phase.
(5)
Certificate of Good
				Standing
. If the applicant is a registered corporation in Maine, provide
				a Certificate of Good Standing (available from the Secretary of
				State).