19- 100 C.M.R. ch. 2, § 9

Current through 2024-44, October 30, 2024

Section 100-2-9 - DISTRIBUTIONS FROM THE PULP AND PAPER ENVIRONMENTAL INVESTMENT FUND

A. APPLICATION REQUIREMENTS

Applications for distributions from the pulp and paper environmental investment fund will be reviewed by the Department, subject to the following provisions:

1. Completed applications must be submitted to the Department on or before March 1st of each year in order to be considered for payment that calendar year;

2. Completed applications must contain an itemization of all Certified Elements acquired, installed or constructed together with a breakdown of all costs incurred in connection therewith during the immediately preceding calendar year; and

3. Prior to approving any application, the Commissioner must determine that the application is complete and that the itemized costs of Certified Elements were actually incurred during the previous calendar year. If the Commissioner rejects any costs, the applicant will receive a written explanation of the reasons for denial. The Commissioner may request further information from an applicant in order to make the required determination.

B. CALCULATION OF DISTRIBUTIVE SHARES

The Commissioner shall calculate the portion of each applicant's costs and expenses that are eligible for reimbursement as follows:

1. The total costs submitted by the applicant and approved by the Commissioner pursuant to subsection A above shall be multiplied by three percent (3 %). The product shall be the eligible portion of the expenses of each applicant.

2. The eligible portion for each applicant shall be added to any eligible portions carried forward from the previous year for such applicant. Then the totals for all applicants shall be added. If the sum is less than the available balance of the pulp and paper environmental investment fund, each applicant shall receive its eligible portion. If the sum is greater than the available balance of the pulp and paper environmental investment fund, each applicant shall receive its proportionate share of the available fund balance. Any unreimbursed portion of an applicant's portion of expenses eligible for reimbursement shall be carried over to the next year's calculation of the applicant's eligible portion through March 1, 2000.

C. PAYMENT OF DISTRIBUTIVE SHARES

The Commissioner shall make payment of each applicant's distributive share of the pulp and paper environmental investment fund on or before September 30 of each year.

D. EXAMPLES OF CALCULATIONS

The calculations described in subsection B above are illustrated by the following examples:

Example (1). X, operator of a paper mill, expends $10,000,000 on recycling facilities and related expenses during calendar year 1994. Y, also operator of a paper mill, expends $20,000,000 on solid waste disposal facilities during calendar year 1994. Z, operator of a paper mill, expends $40,000,000 in connection with a construction project expanding its mill. Before March 1, 1995, X, Y and Z submit the required itemization of Certified Elements and costs. The full amount of the costs is approved by the Commissioner. X, Y and Z are the only applicants for reimbursement from the pulp and paper environmental improvement fund for expenses incurred in 1994. Total funds available for distribution equal $2,000,000. Calculation of each entity's distributive share is as follows:

Entity	Total Approved Costs	Undistributed Eligible Portion Carried Forward	Total Eligible Portion of Costs	Proportionate Share of Eligible Portion	Distributive Share of Fund (Paid by 9/30/95)	Undistributed Eligible Portion Carried Forward to 1996
X	10,000,000	0	300,000 (10,000,000 x .03)	14.29% (300,000 ÷ $2.1M)	285,000 (2,000,000 x .1429)	14,200 (300,000-285,800)
Y	20,000,000	0	600,000 (20,000,000 x .03)	28.57% (600,000 ÷ $2.1M)	571,400 (2,000,000 x .2857)	28,600 (600,000-571,400)
Z	40,000,000	0	1,200,000 (40,000,000 x .03)	57.14% (1,200,000 ÷ $2.1M)	1,142,800 (2,000,000 x .5714)	57,200 (1,200,000-1,142,800)
Totals	70,000,000	2,100,000	100%	2,000,000	100,000

Example (2).

During calendar year 1995, X, Y and Z expend the same amounts as in 1994 on Certified Elements. Each applicant submits the required itemization to the Department on or before March 1, 1996, and the full amount of all costs is approved. The total funds available for distribution equal $6,000,000. The calculation of each applicant's distributive share is as follows:

Entity	Total Approved Costs	Undistributed Eligible Portion Carried Forward from 1995	Eligible Portion of Costs	Total Eligible Portion of Costs	Distributive Share of Fund (Paid by 9/30/96)
X	10,000,000	14,200	300,000 (10,000,000 x .03)	314,200 (300,000 ÷ 14,200)	314,200
Y	20,000,000	28,600	600,000 (20,000,000 x .03)	628,600 (600,000 ÷ 28,600)	628,600
Z	40,000,000	57,200	1,200,000 (40,000,000 x .03)	1,257,200 (1,200,000 ÷ 57,200)	1,257,200
Totals	70,000,000	100,000	2,100,000	2,200,000	2,200,000

In the above example, all applicants receive their total eligible portion of costs because the Sum of such portions ($2,200,000) is less than the total available fund balance ($6,000,000).

19- 100 C.M.R. ch. 2, § 9