Maine Ground and Surface Waters Clean-up and Response Fund

Note: This information is intended as a simple guide to the Maine Ground and Surface Waters Clean-up and Response Fund, and is not a substitute for the complete oil storage facilities and ground water protection statutes, Title 38 M.R.S. § 561 to § 570-M.

The purpose of the Ground and Surface Waters Clean-up and Response Fund (Fund) is to provide for the investigation, mitigation and removal of discharges or threats of discharge of oil from underground (UST) and aboveground (AST) oil storage tank systems, including the restoration of contaminated water supplies.

Costs eligible for coverage by the Fund are expenses that are necessary to clean up discharges of oil to the satisfaction of the commissioner, are cost-effective and technologically feasible and reliable, effectively mitigate or minimize damages, and provide adequate protection of public health and welfare and the environment. Examples of eligible costs include excavation of contaminated soil, product recovery, approved hydrogeologic investigation, well filters, 3rd party damage claims, or other clean-up actions approved by the Department of Environmental Protection (DEP). The Fund statute is located in Title 38 M.R.S § 568-A. In addition, more details on eligible costs can be found in the Department’s Fund Coverage Cost Guide.

The DEP administers Fund coverage claim applications related to discharges of oil from underground storage tank (UST) systems while the State Fire Marshal administers Fund coverage claim applications related to discharges of oil from aboveground storage tank (AST) systems.

The Fund will not cover costs related to any of the following:

• An oil discharge discovered on or before April 1, 1990
• Leaks or oil discharges discovered after October 1, 1998, from non-conforming tanks or piping (e.g., unprotected “bare” steel)
• Former facilities; i.e. an UST/ AST that do not exist when contamination was discovered
• Mystery spills from unknown sources
• UST/ AST or piping removal and “Appendix P” site assessments
• Investigation or clean-up activities that are not required by DEP
• Discharges or contamination that are not oil. “Oil” includes gasoline, kerosene, diesel, heating oil, aviation fuel, heavy oil, or non-hazardous waste oil from motor fuel, commercial, residential and other tanks

How the Fund Works, Step-by-Step:

(1) The tank owner or operator must promptly report discovery of an oil discharge or contamination caused by tank or piping to DEP, and comply in a timely manner with instructions for investigation and/or clean-up.

To report a leak, spill or discovery of oil contamination call:

1 (800) 482-0777 (24 hours a day, 365 days a year)

(2) Request a Ground Water Oil Clean-up Fund (Fund) application form.

If you are an UST owner, contact Butch Bowie, DEP UST Program at 207-215-4583. If you are an AST owner, contact the Office of State Fire Marshal at 207-626-3890.

(3) An applicant must choose between the following in managing the clean up:

"Option 1" -- DEP directly manages and controls clean-up, hires contractors and directly pays approved costs; or

"Option 2" -- Applicant hires clean-up contractors, makes decisions, pays bills, etc. and requests reimbursement from DEP of clean-up costs after receipt of Department Order. Only clean-up costs that are pre-approved by the Department staff will be reimbursed. Note: Fund applicants who are seeking liability protection under the Department’s Voluntary Response Action Program (VRAP) (link to: http://www.maine.gov/dep/spills/vrap/index.html) must use Clean-up Option 2.

(4) Apply for coverage by submitting a complete application within 180 days of reporting the discharge or contamination.

As described above, State law prohibits coverage by the Fund of certain spill incidents or clean-up costs. DEP encourages responsible parties to call before submitting an application for help in determining which costs are eligible and whether application to the Fund would be appropriate.

(5) The DEP (UST) or State Fire Marshal (AST) will review the application, determine eligibility, and determine standard & conditional deductibles. DEP or State Fire Marshal (as applicable) assesses two types of deductibles:

A. Standard deductible based on number of UST facilities/ volume of AST facilities owned by owner of facility seeking coverage; and

B. Conditional deductible(s) for lack of compliance with applicable UST or AST rules.

Deductible Example:
An owner of UST facility seeking Fund coverage owns a total of three (3) locations with USTs, has failed to maintain leak detection at a facility, and has failed to promptly report to the Department evidence of a possible leak.

A. Standard Deductible: $5,000

B. Conditional Deductibles:

$10,000 -- failure to report evidence of a possible leak or to maintain spill log
+ $5,000 -- failure to properly maintain leak detection equipment

= $15,000 conditional deductible

Total deductible = $5,000 + $15,000 = $20,000
(A complete list of deductibles is provided in statute Title 38 M.R.S. § 568-A.)

(6) Within 90 days of receiving a complete application DEP (UST) or State Fire Marshal (AST) will issue a Department Order that specifies eligibility and deductibles.

(7) DEP Oil Remediation & Claims staff will request payment of the deductible from the applicant, or determine if there are eligible clean-up costs above deductible to be reimbursed to applicant (Clean-up Option 2). The Applicant must pay the deductible amount or total eligible clean-up costs, whichever is less.