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 all oil and oil residuals from tanks and all related appurtenances;
B. Decontamination of the facility, related appurtenances and soil containing or contaminated with oil or oil residuals;
C. Removal of tanks, related appurtenances and contaminated soil;
D. Disconnection and removal of underground piping or secure capping or plugging of underground piping when removal is not feasible; and
E. Other steps required to safely decommission the facility and remediate the facility site to an unrestricted use standard for residential and other uses or the most protective use standard determined by the department to be practicable.
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, 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 §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. Development and implementation of criteria and plans for facility closure required under section 552-B. Those plans must include standards, procedures and reporting requirements for removal of facilities and appurtenances and remediation of the facility site to an unrestricted use standard or the most protective use standard determined by the department to be practicable;
E-2. Standards for establishing financial assurance 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. 5. 38 MRSA §552-B is enacted to read:
§ 552-B. Financial assurance and facility closure
1. Financial assurance. An owner or operator of an oil terminal facility shall provide the department assurance of its financial ability to satisfy liability imposed pursuant to section 552, and to pay the estimated cost of facility closure, in compliance with this subchapter and rules adopted by the department.
A. The owner or operator of a facility shall provide evidence of financial ability to satisfy liability imposed pursuant to section 552 in an amount no less than $2,000,000.
B. The owner or operator of a facility shall provide evidence of financial responsibility in an amount sufficient to ensure proper facility closure.
C. The owner or operator of a facility shall file with the department an estimate of probable facility closure costs, including a preliminary facility closure plan, to be eligible for a license required under this subchapter.
D. Financial assurance may be established, subject to the approval of the department, 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 financial responsibility, the department shall consider the criteria in 40 Code of Federal Regulations, Sections 280.96 to 280.99, 280.102 and 280.103.
E. Failure to meet the requirements of this subsection and the department's rules may result in nonrenewal or revocation of a license in accordance with subsection 3.
2. Facility closure. 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 or upon the failure of the owner or operator to use an oil terminal facility or portion thereof for more than 10 years. The owner or operator may not carry out any 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 an annual processing time schedule adopted by the department. The department's approval must include a timeline for completion of the facility closure plan, including dates for performance of specific closure tasks.
C. The facility closure must be completed to the satisfaction of the commissioner. 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 facility closure plan.
D. 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, required under this subsection on the department's publicly accessible website for 6 years following the completion of the facility closure.
3. Enforcement. An owner or operator that fails to comply with the financial assurance or facility closure requirements of this section is subject to enforcement action by the department, including revocation of the license required by sections 544 and 545.
Sec. 6. Effective date. This Act takes effect January 1, 2021.
SUMMARY
This bill ensures proper closure of oil terminal facilities by establishing financial assurance and facility closure requirements. It develops a process for assessing the costs of decommissioning oil terminal facilities and infrastructure and establishing financial responsibility for closure costs. It requires, upon closure, removal of facilities and appurtenances and remediation of the site to an unrestricted use standard or the most protective use standard determined by the Department of Environmental Protection to be practicable. It also requires facilities not in use for 10 years to file a closure plan. The bill also requires oil terminal facilities to provide evidence of financial ability to satisfy liability under existing law.