Sec. 2. 10 MRSA §963-A, sub-§42-D, as reallocated by RR 1999, c. 1, §10, is repealed.

Sec. 3. 10 MRSA §963-A, sub-§42-E, as enacted by PL 1999, c. 713, §1, is repealed.

Sec. 4. 10 MRSA §963-A, sub-§49-G, as enacted by PL 1999, c. 505, Pt. A, §4, is amended to read:

49-G. Total response costs. "Total response costs" means the total costs that have been or will be paid in association with investigatory, removal or remedial activities at the Portland- Bangor Waste Oil Services Site in Wells. "Total response costs" includes any payments that either have been made or will be made to the Department of Environmental Protection or any payments that either have been made or will be made as a total or partial settlement with any entity that assumes that person's liability at that site. "Total response costs" includes Plymouth, including costs incurred by the Department of Environmental Protection or and the United States Environmental Protection Agency and costs incurred by 3rd parties in connection with the to carry out investigatory, removal or remedial activities regarding the Portland-Bangor Waste Oil Services Site in Wells approved by the Department of Environmental Protection or the United States Environmental Protection Agency.

Sec. 5. 10 MRSA §963-A, sub-§51-C, as enacted by PL 1999, c. 505, Pt. A, §5, is amended to read:

51-C. Waste oil disposal site. "Waste oil disposal site" means the Portland-Bangor Waste Oil Services Site in Wells Plymouth designated by the Department of Environmental Protection as an uncontrolled hazardous substance site.

Sec. 6. 10 MRSA §1023-L, as corrected by RR 1999, c. 1, §§12 and 13, is amended to read:

§1023-L. Waste Oil Clean-up Fund

1. Fund established. The Waste Oil Clean-up Fund, referred to in this section as the "fund," is established under the jurisdiction and control of the authority.

2. Sources of money. The following money must be paid into the fund:

A. All money appropriated for inclusion in the fund or

appropriated to the authority for use in providing financial assistance to responsible parties as defined in section 963- A, subsection 47-A, subject to any restrictions applicable to the appropriation;

B. Subject to any pledge, contract or other obligation, all interest, dividends or other pecuniary gains from investment of money of the fund;

C. Subject to any pledge, contract or other obligation, any money the authority receives in repayment of advances from the fund;

D. Money transferred from the available balance in the Underground Oil Storage Replacement Fund, subject to the limitations of section 1024-A pursuant to Public Law 1999, chapter 505, Part. A, section 15;

E. Money transferred from the available balance in the Maine Rainy Day Fund pursuant to Title 5, section 1513, subsection 1-P; and

F. Any other money available to the authority and directed by the authority to be paid into the fund.

3. Eligibility to participate in loan program. The authority may use money in the fund to carry out any power of the authority under this section, under section 1023-M, under section 1026-R or under section 1026-S, 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. Money in the fund may be used for direct loans or deferred loans for all or part of the waste oil disposal site clean-up project when the authority determines that:

A. The applicant is determined to be a responsible party with respect to the waste oil disposal site and the applicant is domiciled or has a principal place of business in the State;

B. If the applicant is not a unit of local government, the applicant demonstrates financial need for the assistance;

C. There is a reasonable likelihood that the applicant will be able to repay the loan; and

D. An agreement has been reached with an entity that has assumed liability for total response costs at the Wells waste oil disposal site and the applicant is a participant in that agreement.

E.__The applicant employs 50 persons or fewer, or has gross sales not exceeding $5,000,000 per year at the time of application; and

F.__The applicant has signed a settlement agreement with the United States Environmental Protection Agency.

The authority, pursuant to Title 5, chapter 375, subchapter II, shall adopt rules for determining eligibility, feasibility, terms, conditions, security and fees for the loans, including deferred loans. The authority may not issue deferred loans for eligible parties who have received payments under subsection 8. The authority shall adopt rules that provide for a simplified loan application process for loan requests of under $2000. Rules adopted pursuant to this subsection are routine technical rules as defined in Title 5, chapter 375, subchapter II-A. The authority may charge an interest rate as low as 0% or up to a maximum rate equal to the prime rate of interest as published in The Wall Street Journal, depending on the financial ability of the applicant to pay as determined by the authority. The maximum the authority may loan, or issue as a deferred loan, to any one borrower, including related entities as determined by the authority, is $50,000 $100,000. Money in the fund not needed currently 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.

4. Accounts within fund. The authority may divide the fund into separate accounts as it determines necessary or convenient for carrying out this section or section 1023-M, including, but not limited to, accounts reserved for direct loan funds for waste oil cleanup.

5. Payments on loans from fund; proceeds from mortgage or security interests. All proceeds of loans and proceeds from mortgage or security interests from the fund must be applied by the authority to the Underground Oil Storage Replacement Fund.

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 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, the authority shall transfer all amounts remaining in the fund to the Groundwater Oil Clean-up Fund.

7. Direct payment program. The direct payment program is managed as follows.

A. The authority shall pay to each person, eligible under this subsection, $2,000 an amount equal to the amount that person paid in relation to the waste oil disposal site upon presentation by the person to the authority of a canceled check or other evidence determined sufficient by the authority to demonstrate payment of the person's share of total response costs at the waste oil disposal site, unless the authority determines that the payment made by the person at that site was in an amount less than $2,000, in which case the authority shall pay to that person an amount equal to the amount that person paid in relation to the site. All payments made under this subsection must be from funds transferred from the Maine Rainy Day Fund.

B. Any person eligible under this subsection who presents an invoice for that person's share of total response costs at the waste oil disposal site, but who has not yet paid the invoice, receives a negotiable instrument from the authority made payable jointly to that person and any entity identified by the Department of Environmental Protection as assuming liability for total response costs at the site. The negotiable instrument must be in the amount of $2,000, unless the authority determines that the payment to be made by the person at the site will be in an amount less than $2,000, in which case the authority shall pay to the person an amount equal to the amount the person is to pay in relation to the site. All payments made under this subsection must be from funds transferred from the Maine Rainy Day Fund.

C. After the payments authorized in paragraphs A and B have been made, additional payments must be made from the available balance from funds transferred from the Maine Rainy Day Fund to all persons who received funds under paragraphs A and B who have paid their settlement share of total response costs, and whose total liability at the site exceeds the amount the persons received under paragraph A or B. Distributions under this paragraph are proportionate to the amount each person paid as the person's share of total response costs at the site. Payments made A payment pursuant to this subsection may not be made unless the person receiving the payment has signed a settlement agreement with the United States Environmental Protection Agency and may not exceed the person's settlement share of total response costs attributable to eligible persons as defined in this subsection multiplied by the total orphan share percentage at the waste oil disposal site or $75,000, whichever is less. The authority may not issue deferred loans for eligible persons who have received payments pursuant to this subsection. This distribution

must occur on June 30, 2000. Any remaining funds in the fund must be transferred to the Groundwater Oil Clean-up Fund.

D.__A settlement share may not be paid from the fund to a person if the United States Environmental Protection Agency has waived payment of the share based on the person's financial capacity.__The authority may condition payments related to the Plymouth site on receipt of an ability-to-pay determination from the agency.

For purposes of this subsection, "person" means any natural person domiciled in this State; a any corporation or partnership in the State; organized under the laws of the State; and any agency, authority, department, commission, municipality, quasi- municipal corporation, special-purpose district or other instrumentality of the State; a or political subdivision of the State, including but not limited to those defined in Title 14, chapter 741 section 8102 and Title 30-A, chapter 225; any other entity section 5903, identified as a responsible party at the waste oil disposal site whose waste oil is identified as delivered to the waste oil disposal site and picked up from an address or location within the State in the records compiled by the Department of Environmental Protection or the United States Environmental Protection Agency or their agents, provided except that neither the Federal Government nor any of its agencies, authorities, departments, boards, commissions or instrumentalities are a natural person, corporation or partnership is not eligible to have any share of their its obligation for response costs paid by the fund if it employs more than 50 persons or has gross sales exceeding $5,000,000 per year pursuant to section 1023-L, subsection 3, paragraph E. A person is not eligible for assistance under this subsection unless the person is a participant in a settlement agreement under which an entity has assumed liability for total response costs at the Wells waste oil disposal site.

8. Determinations regarding eligibility. The authority shall establish a registry of all persons who qualify under subsection 7 to have a portion of their share of total response costs paid pursuant to this section. The authority shall adopt rules relating to eligibility, including the calculation of an eligible person's proportionate share, procedures to ensure that money paid pursuant to this section is used to settle an eligible person's liabilities related to the waste oil disposal site and repayment of any amounts in excess of that person's share. Rules adopted pursuant to this subsection are routine technical rules as defined in Title 5, chapter 375, subchapter II-A.

9.__Application of fund.__The authority may pledge, transfer and deposit or otherwise use money in the fund to carry out any power of the authority under this section or section 1026-R,

including, but not limited to, payment of principal, interest and other amounts due on insured loans.__Money in the fund not needed currently to meet the obligations of the authority under this section or section 1026-R may be invested in such a manner as is permitted by law.__Costs incurred by the authority in administering this section may be paid from interest on money in the fund from all sources under subsection 2.

Sec. 7. 10 MRSA §1023-M, as enacted by PL 1999, c. 713, §3, is repealed.

Sec. 8. 10 MRSA §1026-R, as reallocated by RR 1999, c. 1, §14, is amended to read:

§1026-R. Mortgage insurance for waste oil disposal site clean-up

projects

1. Insurance. In addition to its other powers under this chapter, subject to the limitations of this subchapter except sections 1026-B to 1026-D, the authority may insure up to 100% of mortgage payments with respect to mortgage loans for the waste oil disposal site clean-up project, including a remedial study, when the authority determines that:

A. The applicant is a responsible party with respect to the waste oil disposal site and the applicant is domiciled or has a principal place of business in the State meets the qualifications for a loan under section 1023-L, subsection 3; and

B. The applicant demonstrates a reasonable likelihood that it will not be able to obtain a loan for the project on reasonable terms without insurance pursuant to this section; and.

C. The applicant demonstrates a reasonable likelihood that it will be able to repay the insured loan.

2. Limitation on mortgage insurance. The authority may not at any time have, in the aggregate amount of principal and interest outstanding, mortgage insurance obligations pursuant to this section exceeding $1,000,000 $2,000,000.

3. Mortgage eligibility. Pursuant to Title 5, chapter 375, subchapter II, the authority shall adopt rules for determining eligibility, project feasibility, terms, conditions and security for insured mortgage loans under this section. The authority may accept less than adequate collateral when necessary to ensure the cleanup of the waste oil disposal site under applicable law. Rules adopted pursuant to this subsection are routine technical rules as defined in Title 5, chapter 375, subchapter II-A.

Sec. 9. 10 MRSA §1026-S, as enacted by PL 1999, c. 713, §4, is repealed.

Sec. 10. PL 1999, c. 505, Pt. A, §15, as amended by PL 1999, c. 713, §5, is further amended to read:

Sec. A-15. Transfer of funds to the Waste Oil Clean-up Fund. On the effective date of this Act, $4,000,000 is transferred from the Underground Oil Storage Replacement Fund to the Waste Oil Clean-up Fund. Funds transferred under this Act may only be used for the loan programs pursuant to the Maine Revised Statutes, Title 10, sections 1023-L and 1023-M.

Emergency clause. In view of the emergency cited in the preamble, this Act takes effect when approved.

SUMMARY

This bill amends State law to address the liability of persons who sent waste oil and other hazardous matter to a handling facility in Plymouth. The facility was operated by Portland- Bangor Waste Oil Services, Inc., PBWO, from 1965 through 1980. PBWO, which no longer is in business, operated waste oil handling facilities in 4 municipalities in the State: Casco, Ellsworth, Plymouth and Wells. All 4 sites are contaminated.

Under state and federal law, any person who sent waste oil or other hazardous matter to the PBWO sites is a responsible party and, as such, is jointly and severally liable for the costs of investigation and cleanup. These costs are very high in the case of Plymouth, creating a financial hardship for some towns and small businesses identified as responsible parties.

In 1999, the Legislature established the Wells Waste Oil Clean-up Fund to provide loans and direct payments to eligible responsible parties at the PBWO site in Wells. In 2000, the Legislature amended the fund law to also allow loans for investigative costs at the Plymouth site. This bill now further amends fund law to provide grants and loans for all response costs at Plymouth. Responsible parties will be eligible for grants of up to $75,000 if they employ 50 or fewer people or have annual gross sales of $5,000,000 or less. State agencies, municipalities and school districts that are responsible parties at the site also are eligible for grants and loans.

The expanded grant and loan program is expected to cost the State about $7,500,000. Revenues will be obtained from unused money previously transferred to the fund from the Maine Rainy Day Fund and the Underground Oil Storage Tank Replacement Fund and from an additional one-time transfer of $4,300,000 from the Maine Rainy Day Fund.