Sec. 1. 10 MRSA §963-A, sub-§49-C, as enacted by PL 1987, c. 769, Pt. A, §45, is amended to read:

49-C. Underground oil storage facility project. "Underground oil storage facility replacement project" means the renovation, removal, disposal or replacement of all or any part of an underground oil storage facility which that is used for marketing and distribution of oil, petroleum products or their by-products to persons or entities other than the owner of the facility.

Sec. 2. 10 MRSA §963-A, sub-§49-E, as enacted by PL 1989, c. 543, §2, is amended to read:

49-E. Underground oil storage tank project. "Underground oil storage tank replacement project" or "tank replacement project" means the renovation, removal, disposal or replacement of all or any part of an underground oil storage tank.

Sec. 3. 10 MRSA §1023-D, sub-§3, as amended by PL 1997, c. 613, §1, is further amended to read:

3. Application of fund. Money in the fund may be applied to carry out any power of the authority under this section or under or in connection with section 1026-F, including, but not limited to, to pledge or transfer and deposit money in the fund as security for and to apply money in the fund in payment of principal, interest and other amounts due on insured loans. Money Except as otherwise prohibited under this subsection, money in the fund may be used for direct loans or grants for all or part of underground oil storage facility replacement projects, underground oil storage tank replacement projects, aboveground oil storage tank or facility construction or replacement projects or gasoline service station vapor control or petroleum liquids transfer vapor recovery projects as described in paragraph A when the authority determines that:

A. One or more of the following circumstances exists:

(1) The underground oil storage facility or tank is leaking or has been identified by the Department of Environmental Protection as posing an environmental threat, or removal is required by applicable law;

(2) The applicant is required to install equipment related to the improvement of air quality pursuant to requirements for gasoline service station vapor control and petroleum liquids transfer vapor recovery; or