An Act To Ensure Proper Closure of Oil Terminal Facilities
Be it enacted by the People of the State of Maine as follows:
Sec. 1. 38 MRSA §542, sub-§4-B is enacted to read:
4-B. Facility closure. "Facility closure" means:
A. Removal of oil and oil residuals from tanks and related appurtenances;
B. Decontamination of tanks and related appurtenances;
C. Removal of tanks and related appurtenances;
D. Disconnection and removal of underground piping or secure capping or plugging of underground piping when removal is not feasible; and
E. Any other steps required to safely decommission the facility and remediate sediment, soils, groundwaters and surface waters such that the facility site, as determined by the department, is suitable for residential use or meets the most protective use standards practicable for the facility site.
Sec. 2. 38 MRSA §542, sub-§6, as amended by PL 2015, c. 319, §11, is further amended to read:
6. Oil. "Oil" means oil, oil additives, petroleum products and their by-products of any kind and in any form, including, but not limited to, petroleum, fuel oil, sludge, oil refuse, oil mixed with other wastes, liquid asphalt, bunker fuel, crude oils and all other liquid hydrocarbons regardless of specific gravity. "Oil" does not include liquid natural gas.
Sec. 3. 38 MRSA §542, sub-§7, as amended by PL 1993, c. 355, §7, is further amended to read:
7. Oil terminal facility or facility. "Oil terminal facility" or "facility" means any facility of any kind and related appurtenances, located in, on or under the surface of any land or water, including submerged lands, which that is used or capable of being used for the purpose of transferring, processing or refining oil, or for the purpose of storing the same, but does not include any facility used or capable of being used to store no more than 1500 1,500 barrels or 63,000 gallons, nor any facility not engaged in the transfer of oil to or from waters of the State. A vessel is considered an oil terminal facility only in the event of a ship-to-ship transfer of oil, but only that vessel going to or coming from the place of ship-to-ship transfer and a permanent or fixed oil terminal facility. The term does not include vessels engaged in oil spill response activities.
Sec. 4. 38 MRSA §542, sub-§9-D is enacted to read:
9-D. Related appurtenances. "Related appurtenances" means pumps, valves, piping, loading racks, secondary containment and, as determined by the department, any other structures related to the operation of an oil terminal facility.
Sec. 5. 38 MRSA §546, as amended by PL 1991, c. 698, §6, is further amended to read:
§ 546. Regulatory powers of board department
4. Extent of regulatory powers. The board department shall have the power to adopt rules and regulations including but not limited to rules governing the following matters:
A. Operating and inspection requirements for facilities, vessels, personnel and other matters relating to licensee operations under this subchapter, including annual inspections of oil terminal facilities;
B. Procedures and methods of reporting discharges and other occurrences prohibited by this subchapter;
C. Procedures, methods, means and equipment to be used by persons subject to regulations regulation by this subchapter;
D. Procedures, methods, means and equipment to be used in the removal of oil and petroleum pollutants;
E. Development and implementation of criteria and plans to meet oil and petroleum pollution occurrences of various degrees and kinds, including the state marine oil spill contingency plan required under section 546-A. Those plans must include provision for annual drills, sometimes unannounced, to determine the adequacy of response plans and the preparedness of the response teams;
E-1. Standards for establishing liability insurance for liabilities under section 552;
E-2. Development and implementation of criteria and plans for cleaning and securing a facility that is out of service but not subject to facility closure requirements under section 552-B;
E-3. Development and implementation of criteria and plans for facility closure required under section 552-B, including standards, procedures and reporting requirements for removal of tanks and related appurtenances and remediation of the facility site;
E-4. Standards for establishing financial ability adequate to guarantee the performance of licensee obligations under section 552-B;
F. The establishment from time to time of control districts comprising sections of the Maine coast and the establishment of rules and regulations to meet the particular requirements of each such district;
G. Requirements for the safety and operation of vessels, barges, tugs, motor vehicles, motorized equipment and other equipment relating to the use and operation of terminals, facilities and refineries and the approach and departure from terminals, facilities and refineries;
H. Such other rules and regulations as the exigencies of any condition may require or such as may reasonably be necessary to carry out the intent of this subchapter; and
K. Operation and inspection requirements for interstate and intrastate oil pipelines excluding natural gas and artificial gas pipelines.
5. Facility response plans. Every facility subject to licensing under this section shall file with the department a copy of any oil discharge response plan submitted to the President of the United States under the federal Oil Pollution Act of 1990, Public Law 101-380, Section 4202, 104 Stat. 484, or a statement that a plan is not required under federal law.
6. Vessel response plans. Every tank vessel, as defined under 56 United States Code, Section 2101, entering state waters shall have available for inspection by the commissioner or an agent of the commissioner a copy of any oil discharge response plan required to be submitted to the President of the United States under the federal Oil Pollution Act of 1990, Public Law 101-380, Section 4202, 104 Stat. 484.
Sec. 6. 38 MRSA §552-B is enacted to read:
§ 552-B. Financial responsibility and facility closure
1. Financial responsibility; liability and facility closure costs. An owner or operator of an oil terminal facility shall provide to the department evidence of the owner's or operator's financial ability to satisfy the liability imposed pursuant to section 552 and to satisfy estimated probable facility closure costs in compliance with this subchapter and rules adopted by the department.
A. The owner or operator of a facility shall provide to the department evidence of the owner's or operator's financial ability to satisfy the liability imposed pursuant to section 552 in an amount no less than $2,000,000.
B. To be eligible for a license required under this subchapter, the owner or operator of a facility shall file with the department an estimate of probable facility closure costs and a preliminary facility closure plan and shall provide evidence of the owner's or operator's financial ability to satisfy those estimated costs.
C. Subject to the approval of the department, the owner or operator of a facility may establish the owner's or operator's financial ability to satisfy the probable facility closure costs estimated under paragraph B by one or a combination of the following: insurance and risk retention group coverage, guarantee, surety bond, letter of credit or trust fund. In determining the adequacy of evidence of such financial ability, the department shall consider the criteria in 40 Code of Federal Regulations, Sections 280.96 to 280.99, 280.102 and 280.103.
D. Failure by the owner or operator of a facility to meet the requirements of this subsection and the department's rules may result in, but is not limited to, nonrenewal or revocation of the owner's or operator's license in accordance with subsection 3.
2. Facility closure requirements. An owner or operator shall close an oil terminal facility in compliance with a written facility closure plan that meets standards for safe closure and facility site remediation.
A. An owner or operator shall file a written facility closure plan with the department within 60 days of a decision to close an oil terminal facility and may not carry out facility closure activities until the department has approved the facility closure plan.
B. The department shall review the facility closure plan to determine compliance with applicable rules, consistent with a processing time schedule adopted by the department. The department's approval must include a timeline for completion by the owner or operator of the facility closure plan, including dates for performance of specific closure tasks.
C. The owner or operator shall complete the facility closure in accordance with the approved facility closure plan and to the satisfaction of the department. The department may conduct inspections, including, but not limited to, soil, groundwater and other testing, as a part of and to determine compliance with the approved facility closure plan.
D. Following completion of the facility closure, the owner or operator shall file a written facility closure completion report with the department, which must include a certification from an independent licensed professional engineer that the facility closure was conducted in accordance with the approved facility closure plan and that all regulated substances have been removed or remediated to the satisfaction of the department.
E. The department shall post the facility closure plan, departmental approval, inspection and testing results and completion report, including the independent licensed professional engineer's certification, on the department's publicly accessible website for 5 years following the completion of the facility closure.
3. Enforcement. An owner or operator that fails to comply with the requirements of this section is subject to enforcement action by the department, including, but not limited to, revocation of the license of the owner or operator required by sections 544 and 545.
Sec. 7. Effective date. This Act takes effect January 1, 2021.
Effective 90 days following adjournment of the 129th Legislature, Second Regular Session, unless otherwise indicated.