Public Laws

123rd Legislature

First Regular Session



Chapter 464

H.P. 1368 - L.D. 1929

An Act To Assist in the Cleanup of Waste Motor Oil Disposal Sites

Be it enacted by the People of the State of Maine as follows:

Sec. 1. 10 MRSA §963-A, sub-§17-A  is enacted to read:

17-A Final remedy selection.   "Final remedy selection" means:
A In the case of the Department of Environmental Protection, a final determination by the Commissioner of Environmental Protection or the commissioner's designee of the appropriate response action at a waste motor oil disposal site that is an uncontrolled hazardous substance site; and
B In the case of the United States Environmental Protection Agency, the remedy selected in a final record of decision for the so-called Hows Corner Federal Superfund Site in Plymouth, Maine.

Sec. 2. 10 MRSA §963-A, sub-§47-B  is enacted to read:

47-B Response costs.   "Response costs" means:
A Costs incurred or costs that will be incurred by a responsible party for investigation, study, removal, remediation, institutional controls, alternative water supplies, operation, maintenance, monitoring or other acts or activities to protect human health and the environment at a waste motor oil disposal site;
B Costs incurred or costs that will be incurred by the Department of Environmental Protection or the United States Environmental Protection Agency in conducting, monitoring or supervising work at a waste motor oil disposal site, in reviewing or developing plans, reports and other items at a waste motor oil disposal site and for administrative activities, including providing notice to responsible parties, at a waste motor oil disposal site;
C Loans issued pursuant to section 1023-M;
D A payment or payments, including any settlement premium, that a responsible party is required to make pursuant to a final de minimis or cash-out settlement among the United States, the State and one or more responsible parties; and
E Damages for injury to or destruction or loss of natural resources, including the reasonable costs of assessing such injury, destruction or loss, resulting from hazardous substances at a waste motor oil disposal site pursuant to Title 38, chapter 13-B and 42 United States Code, Section 9601 et seq.

Sec. 3. 10 MRSA §963-A, sub-§47-C  is enacted to read:

47-C Potentially responsible party (PRP) group.   "Potentially responsible party (PRP) group" means a group of responsible parties organized to manage liabilities at a waste motor oil disposal site listed in subsection 51-E and that have negotiated final settlement agreements with the United States Environmental Protection Agency or the Department of Environmental Protection.

Sec. 4. 10 MRSA §963-A, sub-§51-D  is enacted to read:

51-D Waste motor oil.   "Waste motor oil" means any lubricating oil classified for use in an internal combustion engine, transmission, gear box, differential or hydraulics for a motor vehicle, a boat, an off-highway recreational vehicle, commercial or household power equipment, earth-moving equipment, special equipment or special mobile equipment, as defined in Title 29-A, section 101, subsections 69 and 70, that through use, storage or handling has become unsuitable for its original purpose due to the presence of impurities or the loss of original properties.

Sec. 5. 10 MRSA §963-A, sub-§51-E  is enacted to read:

51-E Waste motor oil disposal site.   "Waste motor oil disposal site" means the following 4 sites where waste motor oil was stored and that are now contaminated and subject to such response action requirements as the Department of Environmental Protection or the United States Environmental Protection Agency may impose according to applicable law:
A Portland-Bangor Waste Oil Services Site/Hows Corner Federal Superfund Site - Plymouth, Maine;
B Portland-Bangor Waste Oil Services Site/Maine Uncontrolled Hazardous Substances Site - Ellsworth, Maine;
C Portland-Bangor Waste Oil Services Site/Maine Uncontrolled Hazardous Substances Site - Casco, Maine; and
D Portland-Bangor Waste Oil Services Site/Maine Uncontrolled Hazardous Substances Site - Presque Isle, Maine.

Sec. 6. 10 MRSA c. 110, sub-c. 1-F  is enacted to read:

SUBCHAPTER 1-F

WASTE MOTOR OIL DISPOSAL SITE REMEDIATION PROGRAM

§ 1020.   Waste Motor Oil Revenue Fund

1 Definitions.   As used in this subchapter, unless the context otherwise indicates, the following terms have the following meanings.
A "Eligible person" means a person that is eligible, pursuant to section 1020-A, to have that person's share of response costs paid from the proceeds of revenue obligation securities issued pursuant to this subchapter.
B "Fleet" means 3 or more vehicles registered to the same person.
C "Fund" means the Waste Motor Oil Revenue Fund established under subsection 2 to be deposited with and administered by the authority.
D "Motor vehicle" has the same meaning as in Title 29-A, section 101, subsection 42.
E "Motor vehicle oil change" means the changing of any lubricating oil classified for use in an internal combustion engine, transmission, gearbox, differential or hydraulics in a motor vehicle.
2 Creation; sources of fund.   The Waste Motor Oil Revenue Fund is established. The fund consists of:
A All money appropriated for inclusion in the fund;
B Subject to any pledge, contract or other obligation, all interest, dividends or other pecuniary gains from investment of money in the fund;
C Any other money available to the authority and directed by the authority to be paid into the fund; and
D All revenue received from the State Tax Assessor pursuant to subsection 6.
3 Application of fund.   Money in the fund must be applied to the payment of principal of, interest on or redemption of premiums on revenue obligation securities issued pursuant to section 1020-A and may, in whole or in part, be pledged or transferred and deposited as security for those securities. Money in the fund not immediately needed to meet the obligations of the authority as provided for in this subsection may be invested in such a manner as permitted by law. Any reasonable costs incurred by the authority in administering this fund may be taken from the money in the fund.
4 Accounts within fund.   The authority may divide the fund into separate accounts as it determines necessary or convenient for carrying out the purposes of this subchapter.
5 Revolving fund.   The fund is a nonlapsing, revolving fund. All money in the fund must be continuously applied by the authority to carry out the purposes of this subchapter except as provided in subsection 3.
6 Premium.   In addition to any other tax or charge imposed under state or federal law, a premium is imposed on all motor vehicle oil changes sold in the State at retail in the amount of $1 per oil change on a vehicle with a gross vehicle weight of under 10,000 pounds, $2 on a vehicle with a gross vehicle weight of 10,000 pounds to 25,999 pounds and $3 on a vehicle with a gross vehicle weight of 26,000 pounds or more. Any person that owns a fleet of vehicles and performs oil changes on those vehicles shall pay a premium of $1 for each oil change performed on each vehicle in the fleet with a gross vehicle weight of under 10,000 pounds, $2 for each vehicle with a gross vehicle weight of 10,000 pounds to 25,999 pounds and $3 for each vehicle with a gross vehicle weight of 26,000 pounds or more. All premiums must be paid monthly to the State Tax Assessor. By the 20th day of each month, the State Tax Assessor shall notify the State Controller and the Treasurer of State of the amount of revenue attributable to the premium collected under this subsection in the previous month. When notified by the State Tax Assessor, the State Controller shall transfer that amount to the fund.
7 Effective date.   This section takes effect on October 1, 2007 and remains in effect until the later of June 30, 2018 and any date thereafter but no later than December 31, 2028 on which the authority notifies the State Tax Assessor that there are no outstanding revenue obligation securities that were issued pursuant to section 1020-A.

§ 1020-A.   Waste motor oil disposal site remediation program

1 Issue of securities.   The authority shall issue revenue obligation securities pursuant to subchapter 3 in an amount sufficient to:
A Pay the response costs of eligible persons;
B Establish any capital reserve fund pursuant to section 1053; and
C Pay the costs of issuance of revenue obligation securities.
2 Payment of proceeds.   The authority shall pay proceeds of the revenue obligation securities to or on behalf of the responsible parties in accordance with subsection 4. To the extent that any responsible party receives or is eligible to receive proceeds of the revenue obligation securities as reimbursement for expenses that party has paid through the Plymouth Waste Oil Loan Program in section 1023-M, that party's obligations to the authority must be repaid in full with the proceeds of the revenue obligation securities and the authority is authorized to receive those proceeds directly.
3 Revenue refunding securities.   The authority may provide for issuance of revenue refunding securities pursuant to section 1048.
4 Certificate of determination.   From time to time, the authority shall ascertain from the Department of Environmental Protection, the United States Environmental Protection Agency or the responsible parties, as applicable, the final remedy selection and response costs for each waste motor oil disposal site.
A When the authority is advised by the Department of Environmental Protection, the United States Environmental Protection Agency or the responsible parties of the issuance of a final remedy selection and that the remedy will be implemented pursuant to a consent decree or other final settlement order or agreement determining substantially final response costs for a waste motor oil disposal site, the authority shall determine those costs for that waste motor oil disposal site that represent the collective share of those persons eligible under subsection 7 to have their share of those costs for the waste motor oil disposal site paid from the proceeds of revenue obligation securities. In determining the amount of response costs incurred by an eligible person prior to the effective date of a consent decree or other final settlement order or agreement, the authority shall rely on a written certificate of costs from the potentially responsible party (PRP) group, if any, at the waste oil disposal site. If a potentially responsible party (PRP) group is not active at a waste oil disposal site, the authority shall rely on a written certificate of costs from each eligible person supported by copies of invoices, receipts or other evidence of payment. The certificate of costs must be made under oath and subject to the provisions of Title 17-A, section 451. In determining the amount of response costs to be incurred by an eligible person after the effective date of a consent decree or other final settlement order or agreement, the authority shall rely on the final allocation of response costs as agreed on by the responsible parties and as reflected in the consent decree or other final settlement order or agreement.
B With respect to a waste motor oil disposal site, following the determinations made pursuant to paragraph A, the authority shall issue a certificate of determination setting forth the amount of:

(1) The response costs paid or to be paid with respect to that waste motor oil disposal site;

(2) The eligible response costs with respect to that waste motor oil disposal site to be paid from the proceeds of revenue obligation securities; and

(3) The proceeds of the revenue obligation securities to be paid to or on behalf of the responsible parties.

C The authority may issue no more than one supplemental certificate of determination with respect to a waste motor oil disposal site, which may provide for the payment from the proceeds of additional revenue obligation securities of an amount equal to no more than 10% of the amount of costs initially certified for that waste motor oil disposal site. The authority is not authorized to issue more than 2 certificates of determination for a waste motor oil disposal site.
5 Eligibility.   For purposes of this section, "person" means any natural person, corporation, partnership or other entity identified as a responsible party at a waste motor oil disposal site. The following persons that contributed waste motor oil to a waste motor oil disposal site and who have been designated by the Department of Environmental Protection or the United States Environmental Protection Agency as responsible parties with respect to any of the waste motor oil disposal sites are eligible to have their share of response costs paid from the proceeds of revenue obligation securities issued pursuant to this subchapter:
A Those responsible parties that the Department of Environmental Protection or United States Environmental Protection Agency determines are insolvent, unlocated or defunct;
B Those responsible parties that the Department of Environmental Protection or United States Environmental Protection Agency determines have a limited ability to pay;
C Those responsible parties that the Department of Environmental Protection or United States Environmental Protection Agency determines are responsible for 110 gallons or less of waste motor oil at a waste motor oil disposal site;
D The State and any agencies, authorities, departments, boards, commissions or instrumentalities of the State or political subdivisions of the State;
E All franchised new car and truck dealers licensed pursuant to Title 29-A, chapter 9, subchapter 3 or the successors in interest of any such franchised new car or truck dealers. The Secretary of State shall certify to the authority those responsible parties that were licensed pursuant to Title 29-A, chapter 9, subchapter 3;
F All used car and truck dealers licensed in accordance with Title 29-A, chapter 9, subchapter 3 or the successors in interest of any such used car and truck dealers. The Secretary of State shall certify to the authority those responsible parties that were licensed pursuant to Title 29-A, chapter 9, subchapter 3;
G A person or its successor in interest that:

(1) Performed repairs at repair facilities located in this State on motor vehicles that are owned by 3rd parties;

(2) Is identified by the potentially responsible party (PRP) group at the waste oil disposal site as qualified under this subsection; and

(3) Certifies to the authority under oath and subject to the provisions of Title 17-A, section 451 that it is qualified under this subsection;

H Any person or its successor in interest that performed repairs on its own fleet of motor vehicles, is identified by the potentially responsible party (PRP) group at the waste motor oil disposal site as qualified under this subsection and certifies to the authority under oath and subject to the provisions of Title 17-A, section 451 that it is qualified under this subsection. The motor vehicles at all pertinent times must have been registered, garaged and serviced in this State; and
I Any person or its successor in interest that performed repairs, at repair facilities located in this State, on special equipment or special mobile equipment, as defined in Title 29-A, section 101, subsections 69 and 70, is identified by the potentially responsible party (PRP) group at the waste motor oil disposal site as qualified under this subsection and certifies to the authority under oath and subject to the provisions of Title 17-A, section 451 that it is qualified under this subsection.
6 Parties ineligible.   The United States of America and its agencies, authorities, departments, boards, commissions and instrumentalities are not eligible to have any share of any of their obligation for response costs covered by revenue obligation securities issued pursuant to this section.
7 Registry determinations regarding eligibility.   In accordance with the criteria set forth in subsection 5, the authority shall establish a registry of all responsible parties who qualify to have their share of response costs paid pursuant to this subchapter.
A In order to establish the registry, the authority shall review the list of responsible parties prepared by the Department of Environmental Protection or the United States Environmental Protection Agency with respect to the waste motor oil disposal sites, must have access to all Department of Environmental Protection and United States Environmental Protection Agency records that relate in any way to the volume or composition of materials that may have been deposited in a waste motor oil disposal site and shall confirm which responsible parties meet the criteria established in subsection 5. The confirmed responsible parties must be placed on the registry. In addition, with regard to eligibility, the authority may consider and rely upon information provided by the potentially responsible party (PRP) group conducting response activities at the waste motor oil disposal site. Copies of the registry must be made available to the public at the office of the chief executive officer of the authority.
B The authority shall cause the registry for each waste motor oil disposal site to be published 2 times, 7 days apart, simultaneously in the weekend edition of the following newspapers or any of their successors: the Bangor Daily News, the Portland Press Herald, the Kennebec Journal, the Morning Sentinel, the Brunswick Times Record, the Aroostook Republican, the Lewiston Sun Journal and the Biddeford Journal Tribune.
C Any responsible party may request reconsideration of any authority decision relating to eligibility for that responsible party. All reconsideration determinations must be made by the Department of Environmental Protection and in accordance with Title 5, chapter 375, subchapter 4. All requests for reconsideration must be mailed, postage prepaid, to the Department of Environmental Protection at the address designated by the authority. All requests for reconsideration must be in writing and include such information as the responsible party desires to draw to the Department of Environmental Protection's attention and must be received by the department no later than 30 days from the 2nd date of publication of notice in the newspapers identified in paragraph B. The request for reconsideration must be accompanied by a filing fee to the Department of Environmental Protection in the amount of $500. The decision of the Department of Environmental Protection constitutes final agency action.
D Any responsible party may appeal a decision by the Department of Environmental Protection to the Kennebec County Superior Court pursuant to Title 5, section 9061 within 30 days of the date of the decision. An appeal under this paragraph is nontestimonial. The record consists solely of written materials reviewed by the Department of Environmental Protection and its decision. The Superior Court shall issue its decision within 45 days of the date of filing of the appeal.
8 Rules.   The authority shall adopt rules necessary to implement this subchapter. Rules adopted by the authority pursuant to this subsection are routine technical rules pursuant to Title 5, chapter 375, subchapter 2-A.

Sec. 7. 10 MRSA §1023-L, sub-§3-A,  as amended by PL 2003, c. 537, §27 and affected by §53, is further amended to read:

3-A. Use of funds by authority.   The authority may use money in the fund to carry out any power of the authority under this section, sections 1020 and 1020-A, section 1023-M or section 1026-A, subsection 1, paragraph A, subparagraph (1), division (d) or (e), including, but not limited to, the pledge or transfer and deposit of money in the fund as security for and the application of money in the fund in payment of principal, interest and other amounts due on insured loans. For purposes of using money in the fund to carry out any power of the authority under sections 1020 and 1020-A, money in the fund may be used as if it were proceeds of revenue obligation securities as described in sections 1020 and 1020-A. Money in the fund not needed to meet the obligations of the authority as provided in this section or section 1023-M may be invested as permitted by law. Any costs incurred by the authority in administering this fund may be taken from interest from all sources of the fund.

Sec. 8. 10 MRSA §1023-L, sub-§6,  as amended by PL 1999, c. 713, §2, is further amended to read:

6. Lapse to Groundwater Oil Clean-up Fund upon cleanup of waste oil disposal site.   Within 30 days after the Department of Environmental Protection notifies the authority that the waste oil disposal site has sites have been remediated and the total response costs have been paid and that the Plymouth waste oil site remedial study has been completed and the costs of that study paid at the waste oil disposal sites identified in section 963-A, subsection 51-E, the authority shall transfer all amounts remaining in the fund and in the Waste Motor Oil Revenue Fund created in section 1020 to the Groundwater Oil Clean-up Fund.

Sec. 9. 10 MRSA §1053, sub-§6,  as amended by PL 2003, c. 506, §5, is further amended to read:

6. Securities outstanding.   The principal amount of revenue obligation securities the authority may have outstanding at any one time, to which subsection 5 is stated to apply in the trust agreement or other document, may not exceed an aggregate principal amount equal to $877,000,000 $912,000,000 as follows:
A.  The sum of $330,000,000 consisting of not more than $275,000,000 for loans and up to $55,000,000 for use of bond proceeds to fund capital reserve funds for revenue obligation securities issued pursuant to this subchapter relating to loans for electric rate stabilization projects;
B.  The sum of $120,000,000 consisting of not more than $100,000,000 for loans and up to $20,000,000 for use of bond proceeds to fund capital reserve funds for revenue obligation securities issued pursuant to this subchapter relating to loans for major business expansion projects;
C.  The sum of $57,000,000 consisting of not more than $45,000,000 for loans and up to $12,000,000 for use of bond proceeds to fund capital reserve funds for revenue obligation securities issued pursuant to this subchapter relating to workers' compensation residual market mechanism projects;
D.  The sum of $150,000,000 less the aggregate outstanding balance of mortgage loans secured by capital reserve funds pursuant to section 1032 for all other revenue obligation securities issued pursuant to this subchapter;
E.  The sum of $120,000,000 consisting of not more than $100,000,000 for loans and up to $20,000,000 for use of bond proceeds to fund capital reserve funds for revenue obligation securities issued pursuant to this subchapter relating to loans for paper industry job retention projects; and
F.  The sum of $100,000,000 consisting of not more than $85,000,000 for loans and up to $15,000,000 for use of bond proceeds to fund capital reserve funds for revenue obligation securities issued pursuant to this subchapter relating to loans for transmission facilities projects as defined in section 963-A, subsection 49-H . ; and
G The sum of $35,000,000 consisting of not more than $30,000,000 for the purposes stated in section 1020-A, subsection 1, paragraphs A and C and up to $5,000,000 for use of bond proceeds to fund capital reserve funds for revenue obligation securities issued pursuant to section 1020-A, subsection 1, paragraph A.

The amount of revenue obligation securities issued to refund securities previously issued may not be taken into account in determining the principal amount of securities outstanding, as long as proceeds of the refunding securities are applied as promptly as possible to the refunding of the previously issued securities. In computing the total amount of revenue obligation securities of the authority that may at any time be outstanding for any purpose, the amounts of the outstanding revenue obligation securities that have been issued as capital appreciation bonds or as similar instruments are valued as of any date of calculation at their then current accreted value rather than their face value.

Sec. 10. Status report. By January 15, 2008 and every 2 years thereafter, the Finance Authority of Maine and the Department of Environmental Protection shall report to the joint standing committee of the Legislature having jurisdiction over natural resources matters on the status of the waste motor oil disposal site remediation program under the Maine Revised Statutes, Title 10, chapter 110.

Sec. 11. Transfer of funds; Waste Motor Oil Revenue Fund. Notwithstanding any other provision of law, the State Controller shall transfer the first $11,000 received in the Waste Motor Oil Revenue Fund within the Finance Authority of Maine to the General Fund no later than June 30, 2008.

Sec. 12. Appropriations and allocations. The following appropriations and allocations are made.

ADMINISTRATIVE AND FINANCIAL SERVICES, DEPARTMENT OF

Revenue Services - Bureau of 0002

Initiative: Provides funds for the one-time administrative costs associated with administering the premium on oil changes.

GENERAL FUND 2007-08 2008-09
All Other
$11,000 $0
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GENERAL FUND TOTAL $11,000 $0

Effective September 20, 2007

Office of the Revisor of Statutes
State House, Room 108
Augusta, ME 04333