SECTION 1. Title 46 of the General Laws entitled "Waters and Navigation" is hereby amended by adding thereto the following chapter:

CHAPTER 23.1
THE COASTAL AND ESTUARY HABITAT RESTORATION PROGRAM AND TRUST FUND

46-23.1-1. Findings and purpose. -- Coastal and estuarine habitat such as coastal wetlands, anadromous fish runs, and eelgrass beds are threatened, damaged, or have been destroyed by historic pollution, oil spills, incompatible development, and other factors. The coastal and estuarine habitats of Rhode Island's waters provide great benefits to the citizens of this state including, but not limited to, protection from coastal storms and erosion. Coastal and estuarine habitat resources also serve as nurseries and breeding grounds for important recreational and commercial finfish and shellfish populations, capture and filter run-off pollution, and significantly contribute to the state's economic, community and ecological health. Restoration of tidally restricted coastal wetlands can also ensure protection of human health and safety by controlling populations of certain salt marsh mosquitoes known to carry the Eastern Equine Encephalitis virus. The state's economy is directly dependent on the health and productivity of Rhode Island's coastal waters, including Narragansett Bay and the coastal ponds. Destruction of coastal and estuarine habitats has been identified as one of the leading causes of decline in economically important fish, shellfish, and other natural resources. Restoring degraded coastal and estuarine habitats is essential for reversing declines in fishery resources and protecting human health and safety. Since healthy and diverse coastal and estuarine habitats are better able to support fish and wildlife resources that have been impacted, and are likely to be impacted in the future, by pollution events such as oil spills, an investment by the state of Rhode Island to provide restoration planning and technical expertise and to implement measures to restore coastal and estuary habitats is vital to the economic prosperity and quality of life of the citizens of the state.

46-23.1-2. Definitions. -- For the purposes of this chapter, the following definitions shall apply:

(1) "Estuary" means a body of water where water from rivers, streams or groundwater meets salt water from the ocean;

(2) "Habitat" means an area or place where plants or animals live. Rhode Island coastal and estuarine environments include a diversity of habitat types that provide food, nesting and resting areas, and shelter for fish and wildlife. For purposes of this chapter, types of habitat shall include: coastal wetlands, such as salt and brackish marshes; sea grass meadows, including eelgrass (Zostera marina); and widgeon grass (Ruppia maritima); and anadromous fish runs.

(3) "Degraded habitat" means a habitat that has been negatively affected by human impacts, resulting in the loss or impairment of the following ecological functions including but not limited to: finfish, shellfish, and wildlife nursery, spawning and foraging; water quality maintenance; pollutant removal; biological diversity; aquatic productivity; mosquito control; flood and storm damage; and erosion protection;

(4) "Restoration" means the act, process, or result of returning a habitat to an approximation of its condition prior to disturbance. Restoration activities may include, but are not limited to, the reestablishment of physical parameters, including reestablishing or maintaining hydrology, whether by reestablishing river or tidal flow, restoring flood regimes, or reestablishing topography; control of exotic, non-native or invasive species of plants or animals; revegetation through native plantings or natural succession; removal of barriers or construction of fish ladders to provide passage for spawning or migrating fish; or controlling, reducing or eliminating other specific adverse impacts;

(5) "Director" means the director of the department of environmental management, or his or her designee;

(6) "Council" means the coastal resources management council, its director or designee;

(7) "The Trust" means the Rhode Island coastal and estuarine habitat restoration trust fund, as described in section 46-23.1-3;

(8) "The Program" means the Rhode Island interagency coastal and estuarine habitat restoration program as described in section 46-23.1-5.

(9) "The Strategy" means the statewide coastal and estuarine habitat restoration strategy as described in section 46-23.1-5.

46-23.1-3. The Rhode Island coastal and estuarine habitat restoration trust fund. --(a)(1) There is established within the Coastal Resources Management Council a Rhode Island coastal and estuarine habitat restoration trust fund (the "trust"). On July 1, 2002, two hundred and fifty thousand dollars ($250,000) of the fees collected under the uniform oil spill response and prevention statute (section 46-12.7-4.1) shall be deposited into the trust. The trust shall be available for disbursement by the council in accordance with the restrictions and purposes of this chapter and subject to an annual appropriation by the legislature. The trust may also receive federal, state, municipal, and private grants, gifts, or donations. Funds in the trust shall not be used for mitigating any current, planned or future projects that degrade, fill, or otherwise destroy coastal or estuarine habitats. Funds in the trust shall not be used to fulfill any liability for restoration required by any local, state or federal agency pursuant to an environmental or public health enforcement action.

(b) Funding of Estuary and Coastal Habitat Restoration Activities. - Factors to be taken into account by the technical committee for the purposes of granting monies for estuary and coastal habitat restoration activities, determining the eligibility of an estuary and coastal habitat restoration projects for financial assistance, and in prioritizing the selection of estuary and coastal habitat restoration projects by the technical committee shall include, but need not be limited to:

(1) consistency with the state estuary and coastal habitat restoration strategy, the Narragansett Bay comprehensive conservation and management plan, the state coastal nonpoint pollution control plan, the coastal resources management program, the department of environmental management regulations, and pertinent elements of the state guide plan;

(2) the ability of the applicant to provide adequate personnel funding, and authority to carry out and properly maintain the estuary and coastal habitat restoration activity;

(3) the proposed monitoring plan to ensure that short-term and long-term restoration goals are achieved;

(4) the effectiveness of any nonpoint source pollution management efforts upstream and the likelihood of re-impairment;

(5) whether the estuary and coastal habitat restoration activity can be shown to replace habitat losses that benefit fish and wildlife resources;

(6) potential water quality improvements;

(7) potential improvements to fish and wildlife habitats for species which are identified as rare or endangered by the Rhode Island Natural History Survey or the federal Endangered Species Act;

(8) the level and extent of collaboration by partners (e.g., municipality, nongovernment organization, watershed council, federal agency, etc.); and

(9) potential direct economic benefit to a community or the state.

46-23.1-4. Allocation of the trust. -- Funds from the trust shall be used to carry out the purposes of this chapter as follows:

(1) The administrative, personnel and equipment expenses required to carry out the activities of the program as described in this chapter. The council shall be responsible for submitting annual budget requests for its administrative and implementation costs of the program;

(2) The design, planning, construction, and monitoring of coastal and estuarine restoration projects as described in section 46-23.1-5; and

(3) Restoration projects that are not identified by the statewide coastal and estuary habitat restoration plan nor approved through the restoration grants process shall not be eligible for funding under this program.

46-23.1-5. The Rhode Island interagency coastal and estuarine habitat restoration program -- Established. -- The Rhode Island coastal and estuarine habitat restoration program - Established. -- The council shall develop and implement a coastal and estuarine habitat restoration program for the state of Rhode Island. The program shall consist of the following elements and perform the listed tasks:

(1) Develop a statewide coastal and estuarine habitat restoration strategy. -- Within one (1) year of enactment, the program, with the assistance from the technical advisory committee, shall adopt a statewide coastal and estuarine habitat restoration plan that provide for the conservation and restoration of the state's coastal and estuarine habitats. Such plan shall be developed with comprehensive public, agency, legislative and stakeholder participation, and shall include the following elements:

(i) a description of the state's coastal and estuarine habitats, including a consideration of their importance to the economy, ecology and quality of life in the state and in local communities;

(ii) quantitative and qualitative restoration goals pertaining to coastal wetlands, eelgrass beds, and anadromous fish runs;

(iii) an inventory of coastal and estuarine restoration projects, along with criteria for prioritizing and selecting projects for implementation;

(iv) a projected comprehensive budget and timeline necessary to accomplish the goals of the plan;

(v) identification of municipal, state, federal, private, or other funding and resources to assist in the development or implementation of the plan;

(vi) an outreach element to educate municipal officials, civic and nonprofit organizations, educational institutions and the general public about the availability of restoration grants; and

(vii) provisions for updating the plan and project inventory periodically.

(2) Restoration grants. - (i) The program shall establish and execute an annual process for the solicitation, evaluation and award of restoration grants for projects that seek to restore coastal and estuarine habitats. The technical advisory committee or a subcommittee thereof shall serve as an advisory board to the council and the program staff throughout this process. Entities qualified to apply for and receive grants for design, planning, construction or monitoring under this section include all of the following: cities and towns; any committee, board, or commission chartered by a city or town; nonprofit corporations; civic groups, educational institutions; and state agencies.

(ii) The program shall submit to the governor and the general assembly during annual budget preparations a list of restoration project proposals that have received a positive review by the technical advisory committee and require funds from the trust to proceed with design, planning, construction or monitoring during the ensuing year. Nothing contained herein is intended to abrogate or effect the existing powers of the department of environmental management or the coastal resources management council.

46-23.1-5.1. Eligibility. - In order to be eligible for direct grant assistance from the fund, applicants must demonstrate all of the following:

(1) demonstrate the ability to accomplish the project;

(2) compliance with any applicable element of the state estuary and coastal habitat restoration strategy; and

(3) successful completion of an estuary and coastal habitat restoration application as developed by the technical committee, and a favorable recommendation of grant assistance from the technical committee to the council.

46-23.1-6. Interim project approval. -- Prior to formal adoption of the statewide coastal and estuarine habitat restoration strategy individual projects that meet the definition of restoration contained in section 46-23.1-2 and have been previously identified by state or federal agencies may be approved by the program, in consultation with the technical advisory committee. Such projects may be submitted for funding as described in section 46-23.1-5(3)(i).

SECTION 2. Sections 46-12.7-1, 46-12.7-4.1, 46-12.7-5.1, 46-12.7-8.1, 46-12.7-10, 46-12.7-11 and 46-12.7-12 of the General Laws in Chapter 46-12.7 entitled "Oil Spill Prevention, Administration and Response Fund" are hereby amended to read as follows:

46-12.7-1. Purpose. -- The legislature finds and declares that the release of oil or hazardous substances into the environment presents a real and substantial threat to the public health and welfare, to the environment, and to the economy of the state. The legislature therefore concludes that it is in the best interest of the state and its citizens to provide a readily available fund for the payment of expenses that the department of environmental management incurs in the protection of the environment of the state from the release of oil. The legislature further recognizes the considerable hardships which may be incurred by the citizens of the state as a direct result of the release of oil into the marine environment, and therefore the legislature concludes that it is in the best interest of the state to expand the scope of the fund to allow claims from citizens, in certain instances, and to provide for the disbursal of emergency loans from the fund. The legislature lastly concludes that preparedness is an essential component of prevention of and response to oil spill events and therefore the purpose of the fund shall be further expanded to support the development of safety committees, response teams, and other discreet units whose activities which will directly benefit the state in the event of future oil spill events.

46-12.7-4.1. Uniform oil response and prevention fee. -- (a) A uniform oil spill response and prevention fee in an amount not exceeding five cents ($.05) for each barrel of petroleum products, as set by the director pursuant to subsection (d) of this section, shall be imposed upon every person owning petroleum products at the time the petroleum products are received at a marine terminal within this state by means of a vessel from a point of origin outside this state. The fee shall be remitted to the division of taxation on the 30th day of each month based upon the number of barrels of petroleum products received during the preceding month.

(b) Every owner of petroleum products shall be liable for the fee until it has been paid to the state, except that payment to a marine terminal operator registered under this chapter is sufficient to relieve the owner from further liability for the fee; provided, however that the fee for asphalt products and asphalt derivatives shall be one cent ($.01) per barrel of asphalt products or derivatives.

(c) Whenever the director, in consultation with the department and the division of taxation, estimates that the amount in the fund will reach the amount specified in subsection (e) of this section, and the money in the fund is not required for the purposes specified in section 46-12.7-5.1, the director shall instruct the division of taxation to cease collecting the fee.

(d) The director shall set the amount of the oil spill prevention and response fees. The administrator, except for the fee set out in subsection (b), shall not set the amount of the fee at less than five cents ($0.05) for each barrel of petroleum products or crude oil, unless the director finds that the assessment of a lesser fee will cause the fund to reach the designated amount within six (6) months.

(e) For the purposes of this chapter, "designated amount" means an amount equal to ten million dollars ($10,000,000), adjusted for inflation after January 1, 1998, according to an index which the director may reasonably choose.

(f) All fees collected pursuant to this section shall be deposited in the oil spill prevention, administration, and response fund, and shall be disbursed according to the purposes expressed in section 46-12.7-5.1.

(g) Notwithstanding the provisions of subsection (f) of this section, on July 1, 2002, two hundred and fifty thousand dollars ($250,000) of the fees collected under this section shall be deposited into the coastal and estuarine habitat restoration trust fund (the "trust").

46-12.7-5.1. Purposes of the fund. -- The director may use money from the fund to:

(1) Provide funds to cover promptly the costs of response, containment, and cleanup of oil spills into marine or esturaine estuarine waters, including but not limited to damage assessment costs, and wildlife rehabilitation as defined in this section.

(2) Site Provide funds to cover the costs of site evaluation activities. These activities shall include, but not be limited to, site mapping, installation of wells and equipment, collection, monitoring, and analysis of samples of air, soil, and/or water, and evaluation of the impacts of contamination of on marine maritime and terrestrial shore line environments, production of reports, and implementation installation and maintenance of necessary technology, and equipment for complete remedial action;

(3) Provide emergency loans and to cover response and cleanup costs and other damages suffered by the state or other persons or entities from oil spills or threatened oil spills, which cannot otherwise be compensated by responsible parties or the federal government;

(4) To pay for claims for damages, which cannot otherwise be compensated by responsible parties or the federal government, pursuant to section 46-12.7-8.1;

(5) Provide emergency loans to affected workers ineligible for unemployment insurance;

(6) Pay for structural improvements to vulnerable coastal features, including the Providence River Shipping Canal in order to reduce the risk of oil tanker collisions, groundings, and spills;

(7) Pay for habitat restoration, the restoration of natural resources damaged by an oil spill, where necessary and appropriate;

(8) Pay for response training and equipment; and

(9) Pay for large-scale personnel drills and exercises. ;

(10) Pay for research and development activities as outlined in section 46-12.7-13; and

(11) Pay the statutory amount to the RI coastal and estuarine habitat restoration trust fund pursuant to title 46 chapter 23.1.

46-12.7-8.1. Expenditure of fund money. -- (1) The director may only expend money from the fund if for post-spill activities when a discharge of oil has occurred, or the threat of a discharge has led the state to take appropriate response, and or for pre-spill activities and research and development activities if the following determinations have been made:

(a) A responsible party does not exist or the responsible party is unable or unwilling to provide adequate and timely cleanup and or to pay for the damages resulting from the spill. The director shall make a reasonable effort to have the responsible party remove the oil or agree to pay for any actions resulting from the spill that may be required by law, provided that the efforts are not detrimental to fish, plant, animal, or bird life in the affected waters. The reasonable effort of the director shall include attempting to access the responsible party's insurance or other proof of financial responsibility.

(b) Federal oil spill funds are not available or will not be available in an adequate period of time. Notwithstanding this paragraph, the director may expend money from the fund for authorized expenditures when a reimbursement procedure is in place to receive reimbursements from federal oil spill funds.

(2) Disbursements shall may be made from the fund for the following purposes:

(a) Administrative expenses, personnel expenses and equipment costs of the department related to the enforcement of this subchapter;

(b) All costs, including without limitation personnel undertaking oil spill response activities and equipment expenses, involved in the removal of oil, the abatement of pollution and the implementation of remedial measures including restoration of water supplies, related to the release of oil, petroleum products and their by-products covered by this subchapter;

(c) Sums allocated to research and development in accordance with this section;

(d) Payment of all damage claims awarded in accordance with this section;

(e) Payment of costs of arbitration and arbitrators in accordance with this section;

(f) Payment of costs of insurance by the state to extend or implement the benefits of the fund; and

(g) Payment of costs for the collection of overdue reimbursements.

46-12.7-10. Claims against the fund. -- (1) Any person may apply to the fund for compensation for damages and losses suffered as a result of an oil spill under any of the following conditions:

(a) The responsible party or parties cannot be ascertained.

(b) A responsible party is not liable for non-economic damages caused by another.

(c) Federal oil spill funds are not available or will not be available in an adequate period of time. Notwithstanding this paragraph, the director may expend money from the fund for authorized expenditures when a reimbursement procedure is in place to receive reimbursements from federal oil spill funds.

(2) No claim of a person against the fund may be approved or paid during the pendency of an action by the person in court to recover costs, which are the subject of the claim.

(3) Awards from the fund on damage claims may not include any amount the claimant has recovered, on account of the same damage, by way of settlement with the responsible party or the responsible party's representatives or federal oil spill funds or judgment of a court of competent jurisdiction against the responsible party to the extent these amounts are duplicative.

(4) The director shall pay only those claims which are approved pursuant to this section.

(5) A responsible party is not eligible for compensation under this subsection for costs, expenses, or damages related to the specific discharge for which the responsible party is determined responsible.

(6) Damage claims may not include expenditures for the preparation and prosecution of the damage claim, such as legal fees or real estate appraisal fees.

(7) No claims may be submitted for the recovery of damages under this chapter unless the claim is presented within three (3) years after the date on which the injury and its connection with the oil spill in question were reasonably discoverable with the exercise of due care.

46-12.7-11. Emergency loans. -- In the event of an oil spill where more than ten thousand (10,000) gallons of oil have been discharged in the marine or estuarine waters of the state, in any one day from a single event, the director, after a properly noticed public hearing, may make an emergency secured loan to any private individual or entity who demonstrated that the individual or entity may suffer substantial financial hardship as a result of the oil spill without such loans. However, loans under this section may be made only if the director determines that sufficient amounts are available in the fund to cover costs incurred by state and local governments and entities in responding to and cleaning up the spill. The director shall adopt any regulations and guidelines determined to be necessary regarding repayment terms, interest, security, and any other items the administrator deems appropriate.

46-12.7-12. Recovery of expenditures from fund. --The attorney general, in consultation with the director, shall undertake actions to recover all costs to the funds from any responsible party for an oil spill into marine or estuarine waters for which expenditures are made from the fund. Payment of any claim or obligation from the fund shall be subject to the government of Rhode Island acquiring by subrogation all rights of the claimant to recover from the responsible party or the federal oil pollution liability trust fund. The recovery of costs pursuant to this section shall not foreclose the attorney general from any other actions allowed by law.

SECTION 3. This act shall take effect upon passage.