Sec. 1. 38 MRSA §568, sub-§2, as amended by PL 1991, c. 494, §8, is further amended to read:

2. Restoration of water supplies. The commissioner may clean up any discharge of oil and take temporary and permanent remedial actions at locations threatened or affected by the discharge of oil, including restoring or replacing water supplies contaminated or threatened by oil with alternatives the commissioner finds are cost effective, technologically feasible and reliable and that effectively mitigate or minimize damage to and provide adequate protection of the public health, welfare and the environment. When the remedial action taken includes the installation of a public water supply or the extension of mains of an existing utility, the department's obligation is limited to construction of those works that are necessary to furnish the contaminated or potentially contaminated properties with a supply of water sufficient for existing uses. The department may finance extensions of public water supplies to restore or replace water supplies contaminated by the discharge of oil when such extensions are not the least costly alternative if extensions, in the opinion of the commissioner, are practical. The department is not obligated to contribute to a utility's system development charge or to provide works or water sources exceeding those required to abate the threats or hazards posed by the discharge. The fund may be used to pay costs of operation, maintenance and depreciation of the works or water supply for a period not exceeding 20 years. The commissioner shall consult with the affected party prior to selecting the alternative to be implemented.

Sec. 2. 38 MRSA §1319-E, sub-§1, ķA, as amended by PL 1993, c. 355, §54, is further amended to read:

A. Costs incurred in the removal or abatement of an unlicensed discharge or threatened discharge of hazardous waste, waste oil or biomedical waste. Funds may be disbursed to finance extensions of public water supplies to restore or replace water supplies contaminated by hazardous waste or waste oil when such extensions are not the least costly alternative if extensions, in the opinion of the commissioner, are practical. Whenever practical, the commissioner may offer the responsible party the opportunity to remove or abate the discharge or threatened discharge;

Sec. 3. 38 MRSA §1364, sub-§5, as amended by PL 1995, c. 462, Pt. A, §78, is further amended to read: