I.WASTE MOTOR OIL DISPOSAL SITE

A.REMEDIATION PROGRAM

§1018.__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.__"Board" means the Waste Motor Oil Revenue Board.

B.__"Fund" means the Waste Motor Oil Revenue Fund.

C.__"Waste motor oil disposal site" means the Portland- Bangor Waste Oil Services Sites in Plymouth, Ellsworth and Casco.

2.__Creation; sources of fund.__The Waste Motor Oil Revenue Fund is created.__The fund consists of the following sources:

A.__All money appropriated by the Legislature 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 of 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 Treasurer of State 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 premiums on revenue obligation securities issued pursuant to section 1019 and may, in whole or in part, be pledged or transferred and deposited as security for those securities.__Money in the fund not needed currently to meet the obligations of the authority as provided for in this subsection may be invested in such a manner as permitted by law.__Money may also be applied to pay the reasonable operating costs of the board, including expenses of members of the board pursuant to section 1020, subsection 2.

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.

6.__Premium.__In addition to any other tax or charge imposed under state or federal law, a premium is imposed on all motor oil sold in the State at wholesale.__The premium is in the amount of 20__per quart.__The premium must be paid monthly by the manufacturer or wholesaler to the State Tax Assessor.__The State Tax Assessor shall pay monthly all amounts received pursuant to this subsection to the Treasurer of State and shall deposit the funds in the fund.__Costs of administration are paid by the fund.

§1019.__Waste Motor Oil Disposal Site Remediation Program

1.__Issue of securities.__The authority shall issue revenue obligation securities pursuant to subchapter III in an amount sufficient to:

A.__Pay the clean-up costs specified in any certificate of determination issued by the board pursuant to section 1020;

B.__Establish any capital reserve fund pursuant to section 1053; and

C.__Pay the costs of the 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 Department of Environmental Protection and the United States Environmental Protection Agency in the amounts specified in the certificate of determination.

3.__Revenue refunding securities.__The board, or after its dissolution the authority as the board's successor, may provide for the issuance of revenue refunding securities pursuant to subchapter III.

§1020.__Waste Motor Oil Revenue Board

1.__Membership.__The Waste Motor Oil Revenue Board, as established in Title 5, section 12004-F, subsection 18, consists of 16 voting members.__Five of the members are the chief executive officer of the authority, who serves as the chair of the board, the Commissioner of Economic and Community

Development, the Commissioner of Environmental Protection, the Commissioner of Transportation and the Treasurer of State or their respective designees, who must be in major policy- influencing positions.__The Governor shall appoint 11 additional members as follows:

A.__Four individuals, each of whom is a principal of a licensed franchised new motor vehicle dealer pursuant to Title 29-A, chapter 9, subchapter III that has been designated by the Department of Environmental Protection or, in the case of the Howes Corner Federal Superfund Site in Plymouth, the United States Environmental Protection Agency as a responsible party;

B.__One individual who is a principal of a used car dealer licensed pursuant to Title 29-A, chapter 9, subchapter III that has been designated by the Department of Environmental Protection or, in the case of the Howes Corner Federal Superfund Site in Plymouth, the United States Environmental Protection Agency as a responsible party;

C.__Two individuals, each of whom owns or operates a business in this State that has as an integral element of its business operations the repair and maintenance of motor vehicles that are owned by 3rd parties in this State.__ Either the appointee or the business must have been designated by the Department of Environmental Protection or, in the case of the Howes Corner Federal Superfund Site in Plymouth, the United States Environmental Protection Agency as a responsible party;

D.__An individual who owns or operates a fleet of 25 or more motor vehicles in the State.__The individual must have been designated by the Department of Environmental Protection or, in the case of the Howes Corner Federal Superfund Site in Plymouth, the United States Environmental Protection Agency as a responsible party;

E.__One individual who is employed by a person engaged in the wholesale sale of motor oil in this State;

F.__An officer or employee of a municipality that has been designated by the Department of Environmental Protection or, in the case of the Howes Corner Federal Superfund Site in Plymouth, the United States Environmental Protection Agency as a responsible party; and

G.__An individual employed by a manufacturer or refiner of motor oil or an individual employed by a trade association of motor oil manufacturers or refiners.

2.__Compensation.__Members of the board are not entitled to compensation but must be paid for their expenses pursuant to Title 5, section 12002-A.

3.__Replacement or removal.__Members of the board shall serve a term of office ending the later of June 30, 2004 or any date thereafter on which the board notifies the Governor that a final remedy selection has been completed for each waste oil site, but no later than December 31, 2024, on which date the board is dissolved and terminated.__Any vacancy on the board must be filled by the Governor by appointment of an individual with the same qualifications.__Any member of the board may be removed from office for cause by the Governor.

4.__Certificate of determination.__From time to time, the board shall obtain from the Department of Environmental Protection or the United States Environmental Protection Agency the final remedy selection, total response costs and response costs for each waste motor oil disposal site.

A.__When the board finds that a substantially final determination of the costs under this subsection for a waste motor oil disposal site has been made, the board shall determine those costs for that waste motor oil disposal site that represent the collective share of the 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.

B.__Subsequent to the board's determination under paragraph A, the board shall issue to the authority the board's certificate of determination setting forth the amount of:

(1)__The eligible response costs paid or to be paid with respect to a waste motor oil disposal site;

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

(3)__The proceeds of the revenue obligation securities to be paid to or on behalf of the Department of Environmental Protection; and

(4)__The proceeds of the revenue obligation securities to be paid to or on behalf of the United States Environmental Protection Agency.

C.__The board may issue to the authority no more than one supplemental certificate of determination with respect to a waste motor oil disposal site that 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 to the authority for that waste motor oil disposal site.__The board is not authorized to issue more than 2 certificates of determination to the authority 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 who 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 and total response costs paid from the proceeds of revenue obligation securities issued pursuant to this subchapter:

A.__Those persons who the board determines are no longer in business and can not pay their share;

B.__The State, any of its political subdivisions and any agency, authority, department, board, commission or instrumentality of the State;

C.__All franchised new car and truck dealers licensed pursuant to Title 29-A, chapter 9, subchapter III or the successors in interest of any such franchised new car or truck dealers;

D.__All used car dealers licensed in accordance with Title 29-A, chapter 9, subchapter III or the successors in interest of any such used car dealers;

E.__Any person or the successor in interest to any person that, as an integral element of its business, performed repairs at repair facilities located in this State on motor vehicles, as defined in Title 29-A, section 101, subsection 42, that are owned by 3rd parties; and

F.__Any person or its successor in interest that performed repairs on its own fleet of motor vehicles.__The fleet at all pertinent times must have included at least 25 vehicles registered, garaged and serviced in this State.__The share of any such person is a ratio, the numerator of which is the

number of all vehicles garaged, serviced and registered in this State at the time of the certification by the board determined in subsection 4 and the denominator of which is the number of all vehicles in the person's total fleet, wherever garaged, serviced or registered.

6.__Parties ineligible.__The United States of America and any of its agencies, authorities, departments, boards, commissions or instrumentalities are not eligible to have any share of any of their obligation for response costs or total response costs covered by revenue obligation securities issued pursuant to section 1019.

7.__Determinations regarding eligibility.__In accordance with the standards set forth in subsection 5 and with the procedures set forth in Title 5, chapter 375, subchapter II for rulemaking, the board shall establish a registry of all persons who qualify to have their share of response costs and total response costs paid pursuant to this subchapter.

A.__In order to establish the registry under this subsection, the board 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 and 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 any waste motor oil disposal site.__Copies of the registry must be made available to the public at the office of the Commissioner of Economic and Community Development, the office of the Commissioner of Environmental Protection and the office of the chief executive officer of the authority.

B.__The board shall cause a list of persons on the registry under this subsection who used the respective waste motor oil disposal site for each waste motor oil disposal site to be published simultaneously, 2 times, 7 days apart, 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 in Waterville, the Times Record in Brunswick, the Aroostook Republican, the Lewiston Sun-Journal and the Biddeford Saco OOB Courier.

C.__Any responsible party may request reconsideration from the board of any board decision relating to eligibility for that responsible party.__All requests for reconsideration must be mailed, postage prepaid, to the address designated by the board. All requests for reconsideration must be in

writing, may include any information the responsible party desires to draw to the board's attention and must be received by the board no later than 30 days from the 2nd date of publication of notice in the newspapers identified in this subsection.__The chair of the board shall appoint a subcommittee of 5 members to render a decision in writing within 60 days of the date the board receives a request for reconsideration.__The chair may appoint multiple subcommittees at the discretion of the chair.__Each subcommittee of the board may grant a request for reconsideration, in whole or in part or may deny a request for reconsideration.

D.__Any responsible party may appeal a decision on reconsideration to the Superior Court of Kennebec County pursuant to Title 5, section 8058 within 30 days of the date of the board's decision on reconsideration.__An appeal under this paragraph is nontestimonial.__The record consists only of written materials reviewed by the board and its decision on reconsideration.__The Superior Court shall issue its decision within 45 days of the date of filing of the appeal.

8.__Staff.__The board shall retain independent counsel to be paid out of the fund.__The authority shall provide the board with staff and clerical assistance, including such computer services as the board may require, to be paid out of the fund.__The chief executive officer of the authority shall cause a record of the proceedings of the board to be maintained.__Records and proceedings of the board are subject to Title 1, chapter 13, subchapter I.

9.__Rules.__The board shall adopt rules necessary to effectuate this subchapter.__Rules adopted by the board under this subchapter are routine technical rules as defined in Title 5, chapter 375, subchapter II-A.

Sec. 3. 10 MRSA §1053, sub-§6, as repealed and replaced by PL 1999, c. 531, Pt. G, §1, is 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 $777,000,000 $842,000,000 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; and

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 $65,000,000 for revenue obligation securities issued pursuant to section 1019.

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.

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

SUMMARY

This bill provides a financial mechanism for assisting with the cleanup of waste oil disposal sites located in Plymouth,

Ellsworth and Casco, Maine. The bill authorizes the Finance Authority of Maine to issue revenue obligation securities in amounts up to $65,000,000 to fund those clean-up costs. These revenue obligation securities are to be retired with funds derived from a 20¢ per quart premium on every quart of motor oil sold in the State at wholesale.

The State and instrumentalities of the State, including the Department of Transportation, the Department of Public Safety and counties and municipalities, are eligible to participate in the waste motor oil disposal site remediation program. The revenue obligation securities will also cover the shares of those businesses that maintained or repaired motor vehicles between 1953 and 1981 or their successors in interest and that had waste motor oil deposited at one or more of the 3 sites. Any business that operated a fleet of 25 or more vehicles for which it performed its own maintenance and repairs and that contributed waste motor oil to one or more of the 3 sites is eligible for participation in the program. The United States Government and its instrumentalities are not eligible to participate in the program.

The 16-member Waste Motor Oil Revenue Board is created to oversee the process and make determinations as to eligibility for participation in the program.